Arlington considering incentives for GM plant’s possible $1.2 billion expansion

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General Motors Co. could make a $1.2 billion investment to expand the Arlington Assembly Plant, adding 1.2 million square feet to the plant over three years.

The Arlington City Council is considering establishing an investment zone that will allow the city to offer GM tax abatement incentive. The investment zone is on the council’s Tuesday,, April 14 agenda for the first vote, with a second vote scheduled for an April 28 meeting.

GM officials said in a statement: “GM is developing a business case for potential future investment at Arlington Assembly. An investment would fund facility improvements aimed at strengthening the plant’s manufacturing capability. We cannot share details at this time.”

According to a staff report on the incentive agreement, “the city has proposed a real and business personal property abatement of 80 percent for ten years to include building permit and development fee waivers. The abatement will apply to the added value of the real property physical expansion, estimated at approximately $307 million, as well as the added value of new equipment, estimated at approximately $986 million.

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“As a result of the expansion and upgrades, 589 new permanent jobs will be added, for a total of 3,179 jobs.”

GM added a $200 million stamping plant in 2012 at the plant. The Arlington Assembly Plant in operation since January 1954. It was the company’s first air-conditioned automobile factory. Arlington Assembly, which switched from car to truck assembly in 1997, is the only facility that builds GM’s award-winning, full-size SUVs – Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon and Cadillac Escalade. The SUVs now in production are all new and redesigned for the 2015 model year.

Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

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