Feature Photo: Street view of the distribution center that Dunlap & Kyle has in Batesville, Mississippi. Image: Google Streets.
by Art Benavidez
Waco (McLennan County) — A Mississippi-based wholesale and retail tire dealer plans to enter into an economic development agreement with the city for a regional distribution operation, at this week’s City Council meeting.
Hesselbein Tire Southwest Inc., a subsidiary of Batesville, Mississippi-based Dunlap & Kyle Company Inc., will invest more than $16 million to construct a tire and tube distribution center on 23 acres within the Waco International Aviation Park, at 5500 E. Highway 84.
Dunlap & Kyle, established in 1929, is a private family-owned wholesale tire sales and service retailer. Under the Hesselbein brand, the company will design and construct a 259,000 square-foot distribution and logistics facility.
The deal, which will be voted on by City Council on Tuesday, states that the tire maker must invest approximately $14,509,694.00 in real property improvements and approximately $1,560,000.00 in personal property improvements in support of its Waco operations.
Although Hesselbein will have responsibility for construction, a second Dunlap & Kyle subsidiary, Gateway Tire Waco Inc., has been created to staff the facility. Gateway Tire Waco Inc. will hire 40 full-time workers, starting them at $15 an hour.
In addition, Gateway Properties LP, another subsidiary, will own the structure after construction.
The agreement calls for the facility to be operational by Sept. 1, 2022.
Gateway Tire must achieve full employment of 40 employees by Dec. 31, 2024 and maintain its investment and job creation through June 30, 2028.
The city of Waco real property incentive grant to Hesselbein Tire is valued at $526,204 over five years. In return, the city estimates new property tax revenues of over $676,450 over 10 years.
VBX Project ID: 2021-5388