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Approval of the First Amendment to the Economic Development Agreement Between Anixter, Inc. and the City of Lewisville; and Authorization for the City Manager, or Her Designee, to Execute the First Amendment.
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ADMINISTRATIVE COMMENTS:
Anixter, Inc. (“Company”) and the City of Lewisville entered into an Economic Development Agreement on May 17, 2021 (“Agreement”). Anixter, Inc committed to an extension of the lease on their property as well as an expansion of the facility by a minimum of 30,000 square feet with a minimum capital investment of two million dollars ($2,000,000) in exchange for various economic development incentives. Although most of our agreements require minimum taxable sales to be met to receive incentives for the year, the Agreement was written to automatically terminate if those minimum taxable sales were not met in a given year. Staff does not believe that was Council’s intent. In exchange for amending the agreement to tie the minimum taxable sales to the annual grant, Anixter will be required to increase their annual contribution for their community support.
RECOMMENDATION:
That the City Council approve the first amendment authorize the City Manager, or her designee, to execute the first amendment as set forth in the caption above.