PILLAR: Growing
AGENDA DATE: June 10, 2026
COUNCIL DISTRICT(S): 8
DEPARTMENT: Office of Economic Development
PRIORITY: Targeted Economic Growth
______________________________________________________________________
SUBJECT
Title
Authorize a business personal property tax abatement agreement with Amarumayu, LLC and/or affiliates for a period of 10 years in an amount equal to the City’s taxes assessed on 50 % of the increased taxable value of the business personal property resulting from the Project to be located on real property addressed as 9078 Van Horn Drive, Dallas, Texas 75241, in accordance with the City’s Economic Development Incentive Policy - Estimated Revenue Foregone $1,380,448.00 over a ten-year period
*In alignment with Economic Development Incentive Policy.
Body
BACKGROUND
Amarumayu, LLC is the American subsidiary of Grupo Embotellador ATIC, S.A. (dba Aje Group), a major Peruvian multi-national beverage company with headquarters in Madrid, Spain and Lima, Peru. With more than thirty years of experience, Aje Group operates in more than 20 countries across North and South America, Asia, and Africa. Amarumayu, LLC and/ or affiliates (“Owner” of “Company”) The Company has approximately 11,000 employees worldwide, and this Project would be the first significant investment in the United States.
For the past several months, the Office of Economic Development has been coordinating with representatives of the Company as the Company looks to expand operations into the U.S. market. The Company has explored potential sites in Fort Worth, Texas as well as Virginia.
With this project, the Company intends to establish a new beverage manufacturing facility to fulfill a private label contract for non-alcoholic beverages for one of the largest retailers in the United States (“Project”). The Company has short-listed a Project site in the city of Dallas at 9078 Van Horn Drive (“Project Site”). The Project Site contains a distribution warehouse (approximately 350,798 square feet) on approximately 21.7 acres that was speculatively developed by Trammell Crow Company in 2022-2023. The Project Site is in the Inland Port of Dallas and is zoned Light Industrial. The Project Site is located in an Economic Development Target Area, a State-designated Texas Enterprise Zone, and in Neighborhood Empowerment Zone No. 21 (designated by the City Council on January 25, 2023 by Resolution No. 23-0220).
With the Project, the Company is planning to include an estimated total capital investment by the end of 2028 of approximately $69.5 million, including approximately $3.3 million in real property improvements (tenant improvements) and $66.2 million in business personal property expenditures (furniture, fixtures, equipment, information technology).
With the Project, the Company plans to create approximately 166 net new permanent full-time jobs by the end of 2031. Positions to be hired include production workers, management, sales, and office administrative support.
To facilitate the Project, the Office of Economic Development negotiated a letter of intent for an economic development incentive. The Company accepted the letter of intent on May 4, 2026. The economic development incentive includes the following:
1. Business personal property (“BPP”) tax abatement for a period of ten years in an amount equal to the City’s taxes assessed on 50% of the increased taxable value of the business personal property resulting from the Project, and
2. New Markets Tax Credits (“NMTC”) allocation of up to $16 million from the Dallas Development Fund (“DDF”), contingent on approval by the DDF Board of Directors and the City Council (and subject to separate approvals and terms and conditions as required by Section 45D of the Internal Revenue Code). The City Council review and consideration of the terms and conditions of the NMTC allocation will be considered as a separate matter later this year.
The estimated City tax revenue foregone as a result of the BPP tax abatement is $1.38 million over a ten-year period. An analysis of the direct economic impact of this Project results in an estimated $1.52 million in net benefit ($1.26 million present value) to the City over the ten-year period.
The Company is obligated to satisfy the following key requirements and conditions to earn the BPP tax abatement:
• Lease and Occupancy Requirement. Company shall execute a minimum 10-year lease for a minimum of 200,000 square feet at the Project Site no later than December 31, 2026, and Company shall begin to occupy the leased space at the Project Site no later than June 30, 2028. Company shall continuously occupy and operate the leased space at the Project Site as a beverage manufacturing facility for the duration of the Term of the BPP Agreement.
• Minimum Job Creation Requirement. Company shall create a minimum of 150 net new permanent full-time jobs at the Project Site by December 31, 2031, and Company shall maintain the minimum of 150 net new permanent full-time jobs at the Project Site for the duration of the Term of the BPP Agreement.
• Minimum Investment Requirement. Company shall incur and document to the satisfaction of the Director of the Office of Economic Development a total minimum capital investment of $50 million by December 31, 2028 in any combination of real property improvements (tenant improvements) and BPP expenditures (furniture, fixtures, equipment, and information technology).
• Average Annual Wage Requirement. The average annual wage for the 150 jobs created with the Project shall be no lower than $51,000.00 across all positions, excluding benefits and overtime. Compliance with the average annual wage requirement shall be maintained for the duration of the Term of the BPP Agreement.
• Minimum Wage Requirement. The minimum wage for the 150 jobs created with the Project shall be equal to or greater than the current living wage for an individual in Dallas County as determined by the Massachusetts Institute of Technology's Living Wage Calculator. The living wage rate in Dallas County is currently $23.31 per hour (excluding overtime, bonuses, and benefits). Compliance with the minimum wage requirement shall be maintained for the duration of the Term of the BPP Agreement.
• Minimum Local Hiring Requirement. For the minimum 150 jobs created with the Project, a minimum of 25% shall be filled by residents of the City of Dallas. Additionally, Company shall submit to the Director a written plan ("Local Hiring Plan") describing how Company shall use and document commercially reasonable efforts to achieve a goal of 40% filled by residents of the city of Dallas. At a minimum, the Local Hiring Plan shall describe how Company will target local recruitment through local advertisement, community outreach, local engagement, participation in local job fairs, coordination with local colleges and universities, and coordination with local workforce development and employment resources. The Local Hiring Plan shall be subject to approval by the Director, which approval shall not be unreasonably withheld, to ensure that commercially reasonable efforts are made by Company to promote the hiring of Dallas residents. Compliance with the minimum local hiring requirement and the Local Hiring Plan shall be maintained for the duration of the Term of the BPP Agreement. Specifically, in the instance of an event of default of the minimum local hiring requirement, the cure period shall be six months to allow time for any necessary hiring cycle or process.
• Workforce Program Initiatives. To further the public goals of workforce development and the creation of workforce pipelines in Dallas, Company shall engage with Dallas College and serve as an employer partner for its Workforce Scholars program and its adult apprenticeship program, or other comparable agreement that will engage students in work-based activities, including but not limited to, paid or unpaid internships, co-ops, practicums, pre-apprenticeships, and registered and non-registered apprenticeships for youth and adults.
In addition to the partnership with Dallas College, Company shall engage with at least one of the four following educational partners to enhance the career pipeline, provide internship opportunities, and/or other career readiness opportunities as agreed to by both parties.
• Paul Quinn College
• University of North Texas at Dallas
• Dallas Independent School District
• Richardson Independent School District
Company shall deliver to Office of Economic Development Director an agreement executed by Company and the appropriate educational partners documenting the terms of the career readiness program no later than December 31, 2028. At a minimum, Company shall continue this workforce program for a minimum of five years through December 31, 2033. Company or its educational partners shall provide an annual summary to the Office of Economic Development regarding the status/outcomes of the workforce programs involving educational partners, including number of participants, salaries or other benefits paid to participants, and race/gender/ethnicity of participants, and a summary of the program.
• Access to the Project Site. Company shall, upon reasonable advance request, permit staff from the Office of Economic Development access to the Project Site to review all records and documents related to the obligations contained herein to monitor compliance with the BPP Agreement.
• Annual Reporting. Company shall provide written annual reports to the Office of Economic Development certifying compliance with the BPP Agreement, including employment information disaggregated by residential zip code, race and ethnicity of the employee, and results of the workforce partnership program. The year-end summary report shall be due to the Office of Economic Development by April 15 of the following year in a format acceptable to the Director. As an example, the 2027 annual summary report shall be due by April 15, 2028. Additionally, pursuant to Section 11.43 of the Texas Tax Code, it shall be the responsibility of Company to file an annual exemption application form with the Chief Appraiser of the Dallas Central Appraisal District for the duration of the Term of the BPP Agreement.
• Recapture Liability. Failure of Company to maintain compliance with the BPP Agreement for the duration of the Term may result in Company's required repayment of any incentive received and the forfeit of any incentive yet to be received.
ESTIMATED SCHEDULE OF PROJECT
Start Construction September 2026
End Construction February 2027
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Economic Development Committee was briefed by memorandum regarding this matter on June 1, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15509111&GUID=DEE681E2-6269-44D9-8B95-C22084F89024>
FISCAL INFORMATION
Estimated Revenue Foregone from BPP tax abatement: $1,380,448.00 over a ten-year period beginning FY 2029.
OWNER/EXECUTIVE
Aje Group
Augusto Bauer Silva, Deputy Chief Executive Officer
MAP
Attached