The plan was revealed in the City of Dallas’ council agenda relating to a meeting that will take place on Wednesday in which the L’Oréal distribution center will be one of the items individually discussed.
The cosmetics maker was not available for comment on this matter, but it is believed that the multi-million dollar plan will see a 513,000-square-foot regional distribution hub opened in southern Dallas County.
According to the city council agenda , the City of Dallas will discuss a number of benefits for L’Oréal with this decision.
This will see the council authorize a real property tax abatement agreement with Ridge South Dallas, for the purpose of granting a ten-year abatement of 90 percent of the taxes on the added value to the real property near Telephone Road and Dallas Avenue. This is estimated to be $932,490.
As part of the city’s economic development, it will also grant L’Oréal USA $1.8 million to provide support of its new commercial warehouse distribution facility, as well as $2 million from the 2006 Bond Funds for necessary public infrastructure and other land development costs for property near the proposed sites.
Finally, it will also authorize an application to the Office of the Governor Economic Development and Tourism through the Economic Development Bank nominating L’Oréal USA to receive designation as an Enterprise Project under the Texas Enterprise Zone Act.
Big deal for Dallas
The meeting to discuss these incentives further will take place on Wednesday 26 September, 2012, and according to Mayor Mike Rawlings, it is a ‘tremendously important’ deal for the city.
Speaking to the Dallas Business Journal last week, he said "L'Oreal is an international leader in their category and we now have a new community member. It shows the strategic importance of Dallas, as far as logistics. This shows that the Inland Port is alive and well and growing."
Rawlings claims that L'Oreal has chosen to open the new distribution center in Dallas because it has a new manufacturing plant in Mexico and Dallas is perfectly positioned to distribute products throughout the United States.