During a special called meeting Thursday evening, the Ellis County’s Commissioners Court unanimously approved an amendment to the county’s tax abatement guidelines and then approved an abatement for real and personal property between the county and Triumph Aerostructures, LLC.
Red Oak Mayor Alan Hugley and City Manager Todd Fuller requested the abatement for the planned Red Oak manufacturing facility at Monday’s regular commissioner’s court meeting. The commissioners requested their decision be tabled to study the request and make any necessary amendments to the tax code.
The first action for the court was to approve an amendment to the current guideline. “Guidelines are guidelines; subject to change at the court’s discretion to amend,” Judge Carol Bush said. She continued saying amendments such as the one to be approved are to benefit to the community as a whole.
The amendment approved allows an exemption for personal property as well as the real property that is a part of the package with Triumph. The taxable value of the land, improvements and tangible personal property is at least $70 million. Under the tax abatement guidelines, Triumph Aerostructures qualifies for a 70 percent abatement for seven years.
Triumph’s planned Red Oak manufacturing facility, located on 28.661 acres in the city’s industrial park, is in an area known as in Tax Abatement Reinvestment Zone No. 2. The company will build a 240,000 square foot manufacturing facility. At the initial start up, they will bring 125 jobs to the area. Within five years, they expect to increase employment to 265 full time skilled employees.
Under the agreement to locate in the reinvestment zone, Triumph agrees to serve as an aircraft manufacturing facility for a period of 10 years.
The county’s commissioners court was the last entity to consider the abatement. The city of Red Oak and the Red Oak Independent School District previously approved their abatements. The last steps are to finalize the purchase contracts and plans for the city.
“Judge Bush and the commissioners court have been excellent partners in this process, We appreciate their partnership in bringing Triumph to Red Oak and Ellis county,” Hugley said following the approval.