American Airlines is planning an $88 million operations center near a reservation office on American Boulevard south of Dallas-Fort Worth Airport and is asking the Fort Worth City Council for a tax incentive on the project worth up to $6.5 million.
According to a report, the City Council Tuesday will consider a 15-year economic development deal that would abate up to 85 percent of the real and personal property taxes at the new Integrated Operations Center at 4700 American Blvd. The office will be adjacent to American’s Southern Reservations Office.
The council is scheduled to be briefed on the incentive package at a pre-council meeting Tuesday afternoon and then vote on the deal at its night meeting.
Under the deal, American agrees to invest $55 million on construction and another $33 million in business personal property improvements by Dec. 31, 2015. The incentive would be a one-year tax abatement followed by 14 years of Chapter 380 grants.
The airline would be required to employ a minimum of 1,300 fulltime employees by Dec. 31, 2015, with 15 percent of those, or 195 jobs with Fort Worth residents, and at least 5 percent, or 65 jobs with central city residents.
American would also agree to spend at least $13.7 million, or 25 percent of construction costs, with Fort Worth companies, and the same amount with Fort Worth minority and women-owned businesses. American also would agree to spend at least 30 percent, or $150,000 annually, of its supply and service costs with Fort Worth contractors, and 25 percent, or at least $125,000 annually with minority and women-owned businesses.
The city would also waive some development fees.
Last week, American said wanted to build an new operations center near its headquarters as it consolidates its US Airways' operations center with its Fort Worth facility. The carrier said wanted to be done with the building by the third quarter of 2015.
American had already told 600 employees at US Airways' operations center near Pittsburgh that it would consolidate the operation in Fort Worth and offered positions to those willing to relocate.
American and US Airways completed its merger in December, which came about as part of American’s two-year bankruptcy case.