Bell Textron Corp. may be one step closer to investing about $500 million in Fort Worth.
The Texas Comptroller’s Office has recommended approving an application for the state’s Chapter 403 program for an aerospace manufacturer looking to build a large advanced manufacturing facility in Fort Worth.
Chapter 403 stems from the passage of Texas’ new Jobs, Energy, Technology and Innovation Act, which replaced the controversial Chapter 313 tax abatement program.
The program, which launched earlier this year, gave businesses the opportunity to receive a 10-year reduction in up to 50 percent of their property values for jobs-boosting projects, and up to 75 percent if the project is located within an Opportunity Zone. Chapter 313 reduced school district taxes by 100 percent.
Bell, a subsidiary of Fort Worth-based Textron Corp., submitted an application for the program on Feb. 27, making clear that without the tax incentives, the company’s projects would be located elsewhere.
In its approval letter, the Comptroller’s Office noted that its decision was based in part on confidential information provided by Bell that detailed incentive proposals from other states.
“The auditors determined that the assessment limit was an important factor in competitive site selection and that, absent the agreement, the applicant would not make the proposed investment in the state,” the agency wrote, citing one of the key factors.
Bell will receive a 50 percent school tax abatement within the Northwest Independent School District in Denton County.
The company previously said it plans to apply for a $2.6 million grant from the Texas Enterprise Fund, and has received $1 million from the city of Fort Worth. In its initial application, Bell also sought a 10-year 80% property tax abatement from Denton County and an 85% property tax abatement from the city of Fort Worth.
“Bell regularly evaluates facility locations to meet future business needs, and following the award of the FLRAA contract, we continue to evaluate locations that will support our large-scale, advanced manufacturing operations,” a company spokesperson said in an email. “Bell is considering multiple locations across multiple states to establish this facility, one of which is in Fort Worth, Texas, but a final decision has not yet been made.”
If Bell decides to move forward with its plans, construction on the existing 447,373-square-foot facility at 15100 North Beach Ave. could begin as soon as July. The scope of work includes adding 5,400 square feet of space to the existing vacant building, with a total planned investment of about $429 million in real estate and equipment.
Bell must create at least 75 jobs to qualify for school property tax abatements, but noted in his application that a “multi-phase project” could create more than 411 jobs with an average wage of $85,000.
Bell said investment could exceed $600 million by the end of the 10-year incentive period.
The facility will be used to produce aircraft parts.