DEPARTMENT: Economic Development Department
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: 4
SUBJECT:
A Tax Abatement Agreement with INDO-US MIM TEC PVT, Ltd. (Indo), the establishment of the Indo Reinvestment Zone, and a Chapter 380 Economic Development Incentive Fund (EDIF) Grant Agreement with Indo.
SUMMARY:
Staff is requesting City Council action on the following items related to the Indo project: (A) a public hearing and Ordinance designating the Indo Reinvestment Zone located at 711 Davy Crockett Street at Port San Antonio in Council District 4; (B) an Ordinance approving a 10-year, 100% Tax Abatement Agreement based on a capital investment of at least $24 million in personal property improvements and the creation of at least 330 new full-time jobs; and (C) an Ordinance authorizing a $500,000 Chapter 380 EDIF Grant based on the creation of at least 330 new full-time jobs, with a minimum of 50 of the new full-time jobs paying no less than $46,000 annually.
BACKGROUND INFORMATION:
Indo is a leading global supplier of precision-engineered products using Metal Injection Molding (MIM) manufacturing technology. The company's primary customers include many from the City's target industries, such as those in the bio-medical equipment and aerospace industries. Headquartered in Bangalore, India, Indo has achieved a global leadership position in the field of MIM, providing precision-engineered products to customers in more than 40 countries in the Americas, Europe, and Asia. The MIM process combines the design flexibility of plastic injection molding with the strength and integrity of wrought metals to offer cost effective solutions for precise and highly complex component geometries.
Indo started as a joint venture with a U.S. company in 1997 and became a wholly-owned Indian company in 2001. The company currently has global annual sales of $115 million dollars, with over 70 customers in the U.S. Indo's two plants in...
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