DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: District 2
SUBJECT:
City Council is considering a Resolution nominating UPS as a Texas Enterprise Project.
SUMMARY:
Staff is requesting City Council action on a Resolution nominating UPS as a Texas Enterprise Project. City Council previously passed a Resolution on the nomination of UPS as a Texas Enterprise Project on September 4, 2014, and this re-nomination is being made to include administrative assistance to UPS to increase the likelihood of its designation.
BACKGROUND INFORMATION:
Founded in 1907, UPS is the world's largest package delivery company and a leading global provider of specialized transportation and logistics services, dealing with approximately 9 million customers on a daily basis. Headquartered in Atlanta, Georgia, UPS employs approximately 400,000 people nationwide, and in 2013 earned $4.37 billion in revenue. UPS currently has a training facility in San Antonio located at 5313 Summit Parkway in Council District 7, which employs 80 people full-time.
Last year, UPS expanded an existing site at 6400 Seven States Boulevard, in Council District 2 for its Hub operations. This site currently employs 639 people full-time and 776 people part-time.
To support this proposed expansion, on September 4, 2014, City Council approved an Ordinance designating the United Parcel Service Reinvestment Zone and an Ordinance approving a 6-year, 40% Tax Abatement Agreement with UPS on its planned investment of approximately $85 million in real and personal property improvements, and the creation of at least 25 new full-time jobs and the retention of 600 existing full-time jobs. Specifically, $32.4 million will be allocated to the building expansion and renovation costs and $52.6 million will be allocated to machinery and equipment. The project also received approval of a Resolution nominating United Parcel Service, Inc. for consideratio...
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