The city of Fort Worth is competing with another state to land a Beacon Modular manufacturing plant, which builds electrical systems for data centers, hyperscale operations and other industrial settings.
During the Oct. 27 work session, City Council heard a presentation seeking the approval of proposed incentives to lure the proposed multimillion-dollar project to Fort Worth, which would bring in hundreds of jobs and $250 million in taxable sales.
The plant would be located at 4801 Henrietta Creek in Roanoke, which is Hillwood’s Alliance Gateway 71 warehouse.
The setup
Beacon Modular is a subsidiary of Lighthouse Electric Company, which offers customized electrical services, according to its website. Beacon Modular specifically designs and builds pre-assembled, skid-mounted electrical and power distribution systems for large-scale projects, such as data centers.
“It’s kind of like concrete tilt-up construction walls, except these components are electrical walls, and then they are assembled on site kind of like Legos,” Brianna Brown, assistant director of economic development, said in her presentation.
The presentation proposed that the city offers development financial incentives based on a low estimate of the company’s taxable sales. Local approval would also give Beacon Modular the opportunity to apply for state incentives.
The business could bring in $250 million in taxable sales per year, as opposed to a typical warehouse development that offers no taxable sales, according to the presentation.
The conditions
If Beacon Modular brings in a minimum of $25 million in taxable sales, it would be eligible for a portion of the incentive up to $100,000 per year for five years. Up to $500,000 of that money would come from the city’s economic development initiatives fund, according to the presentation.
In return, the city would see a growth in Fort Worth’s technological and energy industries that could total $208.5 million over five years.
Part of city's proposed agreement with Beacon is broken down with the following terms:
Minimum of $30 million in capital investment in the region by December 2027
Minimum of 600 new full-time jobs by December 2029
$500,000 in incentives would be returned to Beacon Modular
This would lead to an estimated $2.9 million in annual city tax revenue, or $13.5 million over five years, according to the presentation.
The 600 jobs, rolled out 200 jobs per year over the first three years, would have a minimum average wage of $91,000 per year, with 83% earning annual salaries over $90,000, Brown said.
Entry-level one-year apprenticeships would provide training for early-career trade workers who would earn around $60,000 as apprentices.
What’s next
Beacon Modular will consider several business factors, including long-term costs, access to customers and incentives to locate its plant in Fort Worth. Company officials indicated that the city’s current terms make Fort Worth the preferred location, according to the presentation.
The plant
The incentives proposal will go to vote before council Nov. 10.
