STRATEGIC PRIORITY: Economic and Neighborhood Vitality
AGENDA DATE: August 12, 2020
COUNCIL DISTRICT(S):|910|DEPARTMENT: Office of Economic Development
EXECUTIVE: Dr. Eric A. Johnson
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SUBJECT
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Authorize a real property tax abatement agreement with C5LC at Bonnie View, LLC, a Delaware limited liability company or an affiliate thereof and KeHE Distributors, LLC or an affiliate thereof for a period of ten years in an amount equal to the City ad valorem taxes assessed up to 90 percent in connection with a build to suit distribution facility located on approximately 80.897 acres at the southeastern corner of Bonnie View Road and Logistics Drive in Dallas, Texas, in accordance with the City's Public/Private Partnership Program - Estimated Revenue Foregone: up to $5,932,759.00 over ten years
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BACKGROUND
City staff has been in discussions with KeHE Distributors, LLC ("KeHE" or "Company") regarding the development of a new food distribution facility ("Facility"). The only site under consideration in Dallas is an approximately 80.897 acre site at the southeastern corner of Bonnie View Road and Logistics Drive ("Project Site") upon which will be constructed an approximately 995,000 square foot facility ("Site").
Headquartered in Illinois, KeHE is an employee-owned distributor of dairy, natural foods, confectionery, nuts, grains, seeds, snack mixes, and vitamins to over 30,000 stores across North America. KeHE has been in operation over seventy years and has a network of food distribution facilities in cities including Portland, Oregon, Stocton, California, Atlanta, Georgia and Calgary, Alberta, Canada.
The proposed project will involve the consolidation of two existing distribution facilities located in Dallas and Flower Mound. Construction is expected to commence by Quarter 3 2020, with operations to begin approximately 12-16 months after groundbreaking.
Total estimated investment capit...
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