70.7 F
Fort Worth
Monday, April 19, 2021

Council Report: Mercedes Benz Financial Services seeks enterprise zone designation for $50M project

TEXAS ENTERPRISE ZONE NOMINATION FOR MERCEDES-BENZ

Mercedes Benz Financial Services USA LLC is proposing to invest $50 million for the relocation of its operations to new construction at 14372 Heritage Parkway. The city council received a report on this at its Oct. 24 work session.

The company will retain 500 employees with an average salary of $70,000, Economic Developer Robert Sturns said.

“The nomination to state would allow for a refund of state sales and use tax up to $1.25 million,” he said.

The Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas. An enterprise project is defined as a business that is nominated by a municipality or county, and then approved for state benefits. Designated projects are eligible to apply for state sales and use tax refunds on qualified expenditures. The level and amount of refund is related to the capital investment and jobs created at the qualified business site.

The Mercedes-Benz investment includes $3 million to be spent on land acquisition, $28 million for building construction and $19 million for office and technical equipment for increased financial services capacity.

The single project designation allows for a state sales and use tax refund on qualified expenditures of $2,500 per job, for up to 500 jobs, with a maximum benefit of $1.25 million over a five year period.

Under the Texas Enterprise Zone Act at least 25 percent of the business’ new or retained employees will be residents of an enterprise zone, economically disadvantaged individuals, or veterans. In addition, the jobs will be provided through the end of the designation period or at least three years after the date on which a state benefit is received, whichever is later.

The council is expected to vote on this at the Nov. 13 meeting.

Get our email updates

Related Articles

Our Digital Sponsors

Stay Connected

7,448FansLike
1,942FollowersFollow
11,837FollowersFollow
93SubscribersSubscribe

Join Our Newsletter

Latest Articles