The city of Cedar Park’s 4B Community Development Corporation is moving forward with a $1.2 million incentive deal with Dana Limited, a part of Dana Holding Corp.
At its Oct. 16 meeting, city staff presented the 4B corporation with details about the package, which aims to bring $12 million in capital investments and 80 jobs to the city by 2019. Dana Limited has conditionally rented 27,500 square feet of space for a research and development facility at Scottsdale Crossing Commerce Park and plans to add more space, Assistant Economic Development Director Larry Holt said.
“The Dana Corporation by itself, with its spending and income and employees, will generate $115 million for the city and the state. The indirect impact is $277 million,” Holt said. “The capital investment, at a minimum, is $12 million. They are going to have 80 jobs with an average salary of $100,000. And there’s also the intangible value of a Fortune 500 company doing a new location in Cedar Park.”
According to the 10-year agreement, Dana Limited must meet annual employment and capital investment performance benchmarks in order to receive funding from the city. The initial $509,517 financial incentive would be awarded during fiscal year 2014 if the building, located at 5900 Toll 183A, is occupied by March 1, 2014.
If Dana Limited fulfills at least 90 percent of its annual employment and capital investment requirements, it will receive about $101,900 each additional year through 2019, according to the agreement. Further incentives include $5,000 for each Dana Limited employee who buys a home within the city of Cedar Park, with a maximum allowance of $250,000 through 2019. As a condition of the agreement, the company will be required to report its employment totals to the city every year through 2023, after the financial incentives cease, Holt said.
The 4B board plans to hold a public hearing about the Dana Limited incentive deal Nov. 12. If approved, the package is slated to go before City Council for approval Nov. 21.
Dana Limited, as part of Dana Holding Corp., is listed at No. 356 on Fortune Magazine’s top 500 companies. It employs about 24,500 people in 27 nations. It designs and manufactures automotive drivetrain, sealing and thermal-management systems products.