American Airlines has asked Tarrant County for a 10-year, $2 million tax abatement deal for its new headquarters campus.
The Fort Worth-based carrier announced plans last month to build a $350 million corporate campus on about 100 acres south of its existing flight training, operations center and reservations office located west of Texas 360.
$2 millionValue of the ten-year tax abatement proposal from Tarrant County for American Airlines’ new headquarters
The Tarrant County Commissioners Court was briefed Tuesday on the incentive deal, which requires American to spend at least $200 million on property improvements, $50 million in construction costs with Tarrant County contractors and $50 million in construction costs with disadvantaged business enterprises. American is also required to maintain full-time employment of 4,279 jobs at the headquarters campus.
The county is considering giving American a 70 percent abatement on its real and personal property values for ten years that will be worth about $2 million over the life of the deal. The county values the annual tax abatement at $111,000 for the county and $96,000 for the hospital district.
Over the same ten-year period, the county expects it will receive about $1 million in new tax revenues from the portion of the headquarters project that is not part of the abatement deal.
The commissioners’ court is scheduled to vote on the proposed deal next week.
Separately, the Fort Worth City Council on a 9-0 vote approved Tuesday night a 15-year, $21.25 million tax incentive for American.
American will need to invest at least $200 million in a planned four-building campus to be built by Dec. 31, 2019 to receive the incentive. Also, the council approved extending a lease with American on the property until 2114. Dallas also needs to approve the lease extension since the land is owned by the Dallas/Fort Worth Airport.
Star-Telegram reporter Sandra Baker contributed to this article.