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Waco: City Approves $31.2 Million Business Grant Agreement with German Manufacturer

Featured Photo: The Uzin Utz NA Inc. factory in Dover, Delaware, which opened in 2015, is 64,000 SF. The company plans to construct another factory in Waco to a similar scale. Image: Google Streets.

Posted 1-21-2021

by Art Benavidez

Waco (McLennan County) — A German based manufacturer of commercial flooring is headed to town, thanks to City Council’s approval of a development agreement with the city at their Tuesday meeting.

The arrangement means Uzin Utz North America, Inc. (“Uzin Utz“) agrees to a personal property investment, as well as creating 42-full-time jobs, with benefits, and constructing a new manufacturing building of unspecified size to manufacture flooring installation products at lot two, block one of the Campbell Addition which is undeveloped and located northeast of the intersection of Texas Central Parkway and Mars Drive.

In return, the city agrees to give Uzin Utz an incentive grant for an amount equal to 50% of the City of Waco’s portion of real property taxes paid, for 10 years, beginning 2023 through 2032 and a 7-year incentive grant for an amount equal to the city’s portion of personal property taxes paid, excluding inventory taxes, beginning 2023 through 2029.

The new facility represents $31.2 million investment by Uzin Utz. Their funds will go toward the acquisition of a 15-acre portion of the 20.6-acre lot in the city’s industrial district, Texas Central Park; the construction of a manufacturing and distribution plant; and the purchase of production equipment.

Uzin Utz will commit about $19.5 million in real property improvements and $9,353,058.00 in personal property. 

City Manager Bradley Ford noted that the company is a leader in innovation for its business and has a strong focus on sustainability, leading significant changes within its industry. 

“The company leadership has a desire to significantly expand its global sales and revenues by 2025, and North America is seen as the best opportunity for growth expansion,” he stated in documents submitted to the council.

In 2015, Uzin Utz opened a new 64,000-square-foot plant at a cost of $13.5 million on an 11-acre tract in Dover, Delaware, according to the Dover Post

Uzin Utz must complete real and personal investments by June 1, 2022.  In addition, the company must also reach full employment of 42 employees before Dec. 31, 2024 and maintain the investments and retain the jobs through June 30, 2033.

At full employment, Uzin Utz must provide and maintain an overall yearly average wage for their employees of at least $51,500.00, along with paying for the majority of the health insurance premium. 

The city also approved a resolution approving a $2 million program project agreement between the Waco-McLennan County Economic Development Corporation (WMCEDC) and Uzin Utz, with up to $1 million provided by the city.

The WMCEDC Board voted to provide $500,000.00 of the incentive funds upon Uzin Utz purchasing the land for their facility. 

The remaining $1.5 million will be available to disburse to Uzin Utz upon performance once the real and personal property improvements have been completed and as jobs are created.

VBX Project ID: 2021-077D


art@virtualbx.com

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By |2021-01-21T16:44:01-06:00January 21st, 2021|Construction Preview, Feature Story|

About the Author:

Art Benavidez (Construction News Reporter, Central Texas) is a seasoned journalist with over 15-years of experience in writing breaking news and in-depth features at the local level. He honed his research and reporting skills in newspapers and magazines throughout South and West Texas along with expertise in crafting digital content as Managing Editor of New Image Marketing Research Corporation. Benevidez is a Texas native and graduate of UT-RGV.

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