The Fort Worth City Council at its Aug. 22 meeting will consider an incentive package for McMaster-Carr Supply Co., an e-commerce industrial distribution company, that plans to set up a new regional headquarters and distribution center in Fort Worth.
McMaster-Carr Supply Co., based in Elmhurst, Illinois, plans to invest about $180 million in the new facility, a 117-acre site at 4894-4896 Litsey Road in north Fort Worth.
The city would 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.
If the company does not complete its plans in a timely manner, the economic agreement will be invalidated, according to the city.
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.
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.
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. The proposed southwest regional headquarters will be added to existing regional headquarters for the company that are located in Atlanta, Chicago, Cleveland, Los Angeles, and New Jersey.
Bob Francis is business editor for the Fort Worth Report. Contact him at firstname.lastname@example.org. 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.