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File #: 21-4013   
Type: Miscellaneous Item
In control: City Council A Session
On agenda: 6/17/2021
Posting Language: Ordinance approving a five-year Chapter 380 economic development grant agreement with ElringKlinger USA, Inc. [Alejandra Lopez; Assistant City Manager and Interim Director, Economic Development]
Attachments: 1. Contract Disclosure Form, 2. Draft Ordinance, 3. Agreement - Final, signed version
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DEPARTMENT: Economic Development

DEPARTMENT HEAD: Alejandra Lopez?



City Council consideration of an ordinance authorizing a five-year Chapter 380 economic development grant agreement with ElringKlinger USA, Inc.


This ordinance authorizes a five-year Chapter 380 economic development grant agreement with an estimated amount of $198,564, based on a capital investment of at least $16,840,000 and the creation of 52 new, full-time jobs at the project site.


Founded in 1879, ElringKlinger AG is an international automotive supplier headquartered in Dettingen an der Erms, Germany, that employs over 10,000 people worldwide. ElringKlinger USA, Inc (ElringKlinger) is the U.S.-based branch of the company, which employs 800 people at manufacturing facilities in Buford, GA, Fremont, CA, Fort Wayne, IN, and Southfield, MI.

ElringKlinger is considering the development of a new advanced manufacturing facility focused on plastic injection molding to create lightweight automobile parts, to be located at 4222 IH-35 North in City Council District 2. The facility will support ElringKlinger's supplier relationship with a leading electric car and battery company. To establish the facility, ElringKlinger will invest or cause to be invested $1,940,000 in real property improvements and $14,900,000 in personal property improvements for a total of $16,840,000 in capital improvements over a two-year period.

The project will create 52 new, full time jobs over four years, including production worker, engineering, and technician jobs, with an average wage of $50,163. At least 16 of the 52 jobs (30%) will make an annual salary of at least $50,000 exclusive of benefits, bonuses and other non-guaranteed pay. At least 85% of the jobs must exceed the City's All Industry Wage ($17.37) and 100% of the jobs must exceed the Living Wage ($12.74) requirements.

The company will also collaborate with...

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