Triumph Aerostructures’ decision to relocate engineering and administrative operations for its Vought Aircraft Division to Arlington will boost the city’s fortunes despite offering incentives that could exceed $1 million, according to the city.
Triumph said it has already moved about 500 employees into the former Siemens facility at 1401 Nolan Ryan Expressway, just north of the Ballpark in Arlington. Siemens AG, which had occupied the 233,000-square-foot facility since late 2003, moved out in July, said Bruce Payne, Arlington’s economic development manager.
According to a staff report to the city council, which approved the package on Jan. 21, Arlington will collect $3.4 million in additional revenues from the move. The city offered Triumph a maximum $120,000 a year for up to 10 years if it employs at least 500 people at the facility, with lower employment earning a smaller incentive.
Triumph, based in Pennsylvania, bought Vought in 2010. Vought’s move to Arlington is part of Triumph’s decision to leave its 9314 W. Jefferson St. production plant in west Dallas.
The company in 2012 said it would move out of the huge, World War II-era building and build new manufacturing facilities in Red Oak in Ellis County. A company spokewoman wasn’t able to provide updated information on jobs or operations at the Dallas and Red Oak facilities.
Payne said Triumph decided to relocate Vought’s engineering operations and administrative services to Arlington to take advantage of a better office environment. Vought will lease about 150,000 square feet of the facility from Lexington Arlington L.P., its owner, but the rest of the building remains empty, Payne said.
The city will gain about $80,000 a year in property taxes in the bargain because a tax abatement originally granted Siemens ended with its departure, he said. A city report on the property said Siemens had slowly reduced its operations at the facility since 2009.