FORT WORTH -- ATC Logistics & Electronics is seeking a $796,000 city tax abatement over 10 years in exchange for investing $18.5 million at its Alliance area facilities and agreeing to fill the equivalent of 374 more full-time positions.
The company would still end up paying $3.2 million in city property tax over 10 years. The City Council is scheduled to vote on the abatement Oct. 9.City Councilman Sal Espino, whose North Side district includes Alliance, said the agreement is a "no brainer," given the ratio of the promised investment to the taxes the city would give up."It's a win-win for the city," he said.ATC also is considering Nashville, Reno, Nev., and Atlanta for the expansion, and the city risks losing ATC to one of those cities without the abatement, said Robert Sturns, the city's economic development manager."Their preference would be to stay here in Fort Worth, and that's why we entered the discussions with them early on," Sturns said."Our goal was to try to retain our tax base and try to retain our employee base," he said. "We wanted to get in front of that before they got too far down the road with anyone else."ATC representatives attending Tuesday's City Council meeting, where the abatement proposal was disclosed, declined to answer questions about the company's business, citing its private ownership.But they said the new jobs would range from hourly to information technology, human resources, finance and marketing. ATC, based in Pittsburgh, did not respond to e-mailed questions.The company, in Fort Worth since 1998, refurbishes and repairs electronic products at its three Alliance Gateway and Independence Parkway facilities for AT&T, BlackBerry maker Research in Motion and other companies, Sturns said.Under the agreement, ATC, which has 1,705 full-time equivalents now, would maintain that number and bring on 135 more by the end of 2015 and 239 more through by the end of 2016.ATC promised to maintain a minimum 35 percent of full-time equivalents from Fort Worth, and 30 percent from the central city inside Loop 820.The firm would invest $7 million in "business personal property" and $1 million in "real property improvements" by the end of 2013 at its local facilities.ATC would invest another $10.5 million in business personal property, which includes equipment such as conveyors, racking, computers and information systems, by the end of 2016.The company would spend a minimum 35 percent of construction costs with Fort Worth contractors and 25 percent with Fort Worth minority- and women-owned ones.It would spend a minimum $500,000 of annual supply and service expenses with Fort Worth contractors and $400,000 with minority- and women-owned firms.The abatement would be for eight years, but the company could earn another two years by renewing its leases, which Sturns said expire in 2013. At the full 10 years, the company would save $796,000, or 70 percent of its projected tax on new personal property.ATC would see reductions in its abatement if it doesn't meet the various requirements, the city said.Scott Nishimura, 817-390-7808Have more to add? News tip? Tell us
