An e-commerce industrial distribution company announced plans to invest $360 million in a new site in Fort Worth for a regional headquarters and distribution center following a vote by the Fort Worth City Council on Aug. 22.
The council approved an $18 million incentive package for McMaster-Carr Supply Co., which plans to build the new center on a 117-acre site at 4894-4896 Litsey Road in north Fort Worth, just east of Alliance Airport, in the AllianceTexas development.
The company would be a “strategic asset for Fort Worth to have as part of its industrial ecosystem,” said Michael Hennig, economic development manager for Fort Worth’s economic development department.
McMaster-Carr, founded in 1901 and based in Elmhurst, Illinois, is a supplier to industrial and commercial facilities worldwide, specializing in same- and next-day delivery of maintenance, repair and operations supplies. The privately held company has additional distribution operations in Los Angeles, New Jersey, Atlanta and Cleveland.
“By establishing distribution operations and holding a broad inventory in Fort Worth, we will provide our customers throughout the thriving Dallas-Fort Worth region a new level of fast delivery,” said Patrick McKenna, vice president, McMaster-Carr, in a statement.
Under the agreement, the city will provide the company incentives valued at $18 million in the form of 10 annual grants equal to up to 85% of the maintenance and operations portion of new incremental city ad valorem taxes based on the increased value of business and personal property. The incentives would also include up to 50% of the new incremental city 1% sales tax revenues, according to city documents. And, if the company does not complete its plans in a timely manner, the economic agreement will be invalidated.
In return, the company’s regional headquarters and distribution center would need to create 250 jobs with an average annual salary of $85,000 by the sixth year of operation, according to city documents.
Hennig told the council the company has a “strong reputation for paying above industry standard wages and has exceptional benefits for its workers.”
The new regional headquarters and distribution enter will create $56.8 million in new incremental property and sales tax revenue, part of which will go to the $18 million in grants. It will create $38.8 million in net new incremental property tax revenue over the 10-year period after the project’s completion, according to the city documents.
“As we continue to build on the industrial ecosystem in the Alliance corridor, McMaster-Carr’s investment in both our community and our workforce will make a significant positive impact on our growing city – and we’re excited to welcome them to Fort Worth,” said Robert Sturns, director of economic development for the city of Fort Worth, in a statement.
McMaster-Carr conducted a competitive site selection process for the location of what will be its sixth regional headquarters and distribution facility, according to the report from the city.
Bob Francis is business editor for the Fort Worth Report. Contact him at email@example.com. At the Fort Worth Report, news decisions are made independently of our board members and financial supporters. Read more about our editorial independence policy here.