The wine bottle in the middle of Mineral Wells’ gift basket is the City’s recently approved tax abatement on 75 percent of the company’s valuation over the next 10 years. Butcher added the Area Growth Council is also looking into the possibility of tapping into the governor’s enterprise fund, Texas Capital Fund or offering new-market tax credits, which he said would generate about $1.5 million of free equity for the company.
Butcher said the 100-acre property the facility would be built on – at the southwest corner of Ellis White Road and Lee Road in Wolters Industrial Park – currently carries an agricultural exemption and is only valued at around $8,000. Therefore, even with the abatement, the presence of the factory would cause the tax base to increase significantly. Most importantly, Butcher assured council members that Parker County would not be involved in the taxation of the property, rather taxes would come to Palo Pinto County.
“If we got the new-market tax credits, we’re talking about almost $9 million of incentives on the table,” Butcher said. “If new markets fall through, [it would be] $7.25 million. Still, it’s a lot of money, it seems to us.”
In addition to its individual positive impact, Butcher said TUPA’s presence could also have an overarching positive effect on the entire local workforce. If TUPA chooses to locate in Mineral Wells, the company has a goal of acquiring some of the old barracks, previously owned by the Corrections Corporation of America, and using that property for housing, medical and training facilities.
“We’ve got manufacturing companies all around town that are begging for people with the right skill sets,” Butcher said. “They’re going to be teaching welding, fabricating, machining and all those types of things. Everybody needs those. That could be a great help to our local manufacturing base.”