Mansfield offered Klein Tools city and state economic incentives to bring the tool manufacturing company’s new Advanced Manufacturing Technology Center to the city – a boon for both parties as nearly 600 jobs head to the Tarrant County city.
Klein Tools, headquartered in Lincolnshire, Ill., will bring 585 newly created jobs to Mansfield as well as a $76 million investment from the company. The company also will purchase a Mansfield building for at least $4.5 million and will purchase at least $6 million of equipment by Dec. 31, 2010.
In exchange, the company received a $2.8 million Texas Enterprise Fund from the state,announced by Gov. Rick Perry, and an economic incentive package that includes $500,000 grants each year for 12 years approved by the Mansfield City Council on Dec. 13.
Both the state and city grants are dependent on benchmarks that must be met by Klein Tools, which will put its AMTEC facility on Heritage Parkway in an existing commercial building in Heritage Business Park. According to a city release, the net economic impact to Mansfield is estimated to be more than $7.6 million during the first 10 years with a $4.5 billion statewide economic impact over 10 years.
“In today’s tough and competitive environment, this is a huge win for Mansfield,” said Scott Welmaker, director of economic development for the city, in a release. “We are pleased our hard work has resulted in bringing this highly regarded industry to our city.”
Belinda Willis, director of communications and marketing for Mansfield and the city’s spokesperson, said Klein Tools and the city started talking about possibly bringing the new facility to Mansfield more than a year ago. Although one city councilperson was out of town, the vote was unanimous by those present at the Dec. 12 meeting to support the economic incentive package.
“I think having the Texas Enterprise Fund grant, as well as the development grants and the incentives from the city, indicate the very strong partnership on the state level and on the local level,” she said.
According to the economic incentive package, Klein Tools will be expected to purchase an additional $6 million in equipment by the end of 2011 as well as create jobs for 26 employees. The end of 2012 will bring an additional 100 employees, new capital investment of $6 million and a 60-plus acre property under contract within the city.
By the end of 2013, Klein Tools is expected to have purchased the property in Mansfield, invested another $6 million in new capital and added 200 more employees. Subsequent years in the package, ending Dec. 31, 2021, include more new capital investments and maintaining the 585 employees who should be working for Klein Tools by the end of 2016.
The Texas Enterprise Fund was created by legislature in 2003 to promote the creation of jobs and spur economic development throughout the state. Projects that receive funding through the program must be approved by the governor, lieutenant governor and speaker of the House. It’s a well-used asset to recruit companies and jobs to Texas, and to date has included more than $425 million in investments and generated 56,619 new jobs and stimulated more than $14.7 billion in capital investment in the state.
“As Texas continues to lead the nation in job creation, TEF investments like this one in Klein Tools are helping create jobs for Texas families and strengthening our state’s economy,” Perry said in a release. “Our low taxes, reasonable and predictable regulatory environment, skilled workforce, and incentives like the TEF continue to help make Texas the model for job creation and the national economic recovery.”
Willis said Klein Tools’ decision to locate the new facility in Mansfield is a testament to the community and its commitment to a strong economy.
“Obviously, one part of a city’s responsibility is growing the local economy, and it’s something that we take very seriously in Mansfield,” she said. “Our economic development department is active in bringing new business to Mansfield and helping the businesses that are here succeed.”