Dallas Business Journal
By Spencer Brewer – Staff Writer, Dallas Business Journal
Updated
The City of Fort Worth will weigh incentives for two massive projects that could bring over 1,700 jobs to the city.
Between the two projects, the combined total investment will measure in at $585 million. Under the agreements, Siemens would create an advanced manufacturing facility in Fort Worth and contract manufacturer DrinkPak will establish two new locations in the city.
DrinkPak manufactures alcoholic and non-alcoholic beverages. The two new Fort Worth facilities would produce energy drinks, hard seltzer, canned cocktails and alternative dairy beverages, such as canned cold brew and oat milk.
The expansion would come in multiple phases. For the first phase, DrinkPak has eyed the Trammel Crow development at 25001 Eagle Parkway in Denton County, not far from Perot Field at Fort Worth Alliance Airport. The second phase would be located at Carter Park East in Southeast Fort Worth, according to information provided by the Fort Worth Economic Development Department.
DrinkPak has proposed a combined investment of $452 million between both phases of the project. Phase one would involve $37 million in real property improvements by the end of 2026 and $183 million in business personal property by January 2027.
Phase two at Carter Park East would require $32 million in real property improvements by the end of 2027, and $200 million in business personal property by January 2028.
The project would bring a whopping 1,000 full-time jobs to Fort Worth. The first phase will bring 550 jobs by December 2026, while phase two would bring 450 jobs by December 2027.
The average annual salary for all of these jobs will be more than $70,000, and 15% of construction costs will be committed to minority and women-owned businesses.
In exchange, the City of Fort Worth has proposed a 10-year tax abatement of up to 70% of incremental real and business personal property – an estimated value of $21 million. This annual abatement will be forfeited if the company fails to meet the minimum $70,000 average annual salary requirement, and a proportional reduction will be required if both phase one and phase two employment numbers fall below 800 full-time jobs.
If approved, the project would generate $8.9 million in gross net new taxes for Fort Worth. City staff estimates that the incentive would be paid back within a little less than 7 years. The public hearing to create the incentive reinvestment zone will be September 12, after which the incentive will go before the Fort Worth City Council.
Meanwhile, German multinational corporation Siemens AG plans to bring an advanced manufacturing plant to 7200 Harris Legacy Drive at Carter Park East to produce low-voltage switchgear and switchboards.
Siemens Industry Inc., a subsidiary of Siemens AG, provides products, systems, and services for industrial automation, drives, motors and other energy management systems. The company already has a presence in Grand Prairie, where it manufactures low-voltage circuit breakers.
In Fort Worth, the firm has proposed a capital investment of $133 million, including $70 million in real property improvements by the end of 2024, and $63 million in business personal property by January 2025.
The company plans to bring 167 full-time jobs by the end of 2024 and 715 total jobs by the end of 2026. The average would be more than $63,000, and 15% of hard and soft construction costs will be earmarked for minority and women-owned businesses.
Under the agreement, if Siemens is unable to meet this construction requirement, the grant will be reduced by 10%.
In exchange, the City of Fort Worth is proposing a 10-year tax abatement of up to 70% of incremental real and business personal property – an estimated value of $6 million. If the company is unable to meet the minimum average annual salary requirement of $63,000, the annual abatement will be forfeited.
If approved, the project would generate $2.6 million in gross net new taxes for Fort Worth. City staff anticipates that the incentive would be paid back within a little more than six years.
The public hearing to create the incentive reinvestment zone will be September 12, after which the incentive will go before the City Council.