The city of Fort Worth is looking at entering a tax abatement agreement with MP Materials in connection with its magnet manufacturing facility scheduled to be built in the AllianceTexas area.
Las Vegas-based MP Materials announced in December it plans to construct a 200,000-square-foot facility to manufacture enough magnets to fulfill a contract with General Motors to power up to 500,000 electric vehicles annually.
During the Fort Worth City Council work session Jan. 18, city Director of Economic Development Robert Sturns laid out details of a proposed tax abatement agreement for the facility at 13840 Independence Parkway in Fort Worth.
“The project will allow them to move manufacturing operations back to the United States. No mining will be done here,” Sturns said.
The company is looking to invest about $40 million in construction and $60 million in business personal property at the site, Sturns said. MP Materials will also create 30 full-time jobs at the start with average salaries of over $80,000, according to the presentation. At full operation, the facility is expected to create at least 90 jobs, he said.
The proposed seven-year agreement involving real and business personal property taxes is capped at about $2.7 million, Sturns said. Over that same time frame, the city would net about $1.8 million in ad valorem taxes from the site.
Sturns recommended the proposal be placed on the council’s Jan. 25 agenda for a public hearing to create a reinvestment zone and consider the proposal.
Fort Worth looks at tax abatement agreement for magnet manufacturing facility in AllianceTexas
MP Materials' 200,000-square-foot manufacturing plant will be built at 13840 Independence Parkway in Fort Worth. (Rendering courtesy MP Materials Corp.)