Fort Worth is considering a seven-year tax break to help lure a distribution center for a Michigan-based manufacturer that specializes in work clothes to the city.
Carhartt Inc. wants to build a 1.2 million-square-foot building in North Fort Worth, near Texas Motor Speedway. The distribution center could bring in 500 jobs by the end of 2024, according to a presentation made March 7 to City Council. The minimum average salary would be $55,000.
The city is proposing a seven-year tax break of “up to 75% of the company’s real and business personal property taxes, which would be capped at $2 million,” according to the presentation.
Carhartt would be required to invest $80 million if the company accepts the deal, and is projected to pay almost $3.2 million in new taxes over the course of 10 years.
City Council will vote on whether to approve the tax break April 11.
Tax abatements are used to lure companies into the area by reducing the amount of property taxes they pay. The incentive is based on the company’s performance and can be reduced if the company does not meet promises it agrees upon, according to an informal report to City Council members Feb. 7.
Carhartt makes work apparel including overalls, hoodies, pants, boots and gloves branded for working people. The company is headquartered in Dearborn, Michigan, and employs 5,500 people worldwide, according to their website. Carhartt did not respond to questions from the Fort Worth Report about locating in Fort Worth or the potential tax abatement.
Fort Worth is home to several other companies similar to Carhartt, such as Dickies and Justin Boots.
When incentives are given, the city requires a minimum amount of construction investment and ties a portion to spending with Fort Worth businesses and minority-owned or women-owned businesses.
Fort Worth gave more than $1 million in tax abatements to companies in 2021, according to the most recent annual comprehensive financial report. Fort Worth reports it received $58.9 million in revenue from various projects in 2021, but goals for minority and women-owned business participation in the incentives were not met.
Last year, Fort Worth gave a 10-year tax abatement to Beauty Manufacturing and a seven-year abatement to magnet plant MP Materials. Both companies moved to the area.
Seth Bodine is a business and economic development reporter for the Fort Worth Report. Contact him at seth.bodine@fortworthreport.org and follow him on Twitter at @sbodine120.
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