Arlington City Council Approves General Motors Parts Supplier Hub

Photo Credit: Mike Stone for General Motors

The Arlington City Council approved economic incentives to facilitate a $250 million redevelopment project that will transform the former Six Flags Mall site into a General Motors parts supplier hub and bring in hundreds of new workers and $151 million in taxable sales and purchases in the city during the next decade.

NorthPoint Development proposes to build 1.2 million square feet of industrial space for General Motors Assembly Plant suppliers on the former mall site at Division Street and State Highway 360. The project, known as the Arlington Automotive Logistics Center, is designed to increase efficiency and productivity of GM’s Arlington Assembly Plant by moving its part suppliers closer and reducing transportation costs. The proposed hub, located across the highway from the GM plant, is estimated to support up to 1,800 employees at project build-out.

“The logistics center is a complex redevelopment project with extraordinary challenges, from the costs of assembling the property from multiple owners to demolition, asbestos removal and site preparation. This deal required cooperation to make possible,” Deputy City Manager Jim Parajon said. “The City is leveraging a $250 million investment that will create good-paying jobs, ensure General Motors’ longevity in Arlington and significantly increase the value of this prime piece of property.”

Many of the jobs directly associated with the logistics center will have salaries above the county median household income of $53,375. Overall, the project is expected to result in more than 3,800 direct, indirect and induced jobs with workers earnings topping $1.7 billion over the next 10 years, according to an economic impact study commissioned by the City.

The 80-acre site was purchased by Missouri-based NorthPoint Development, which has built logistics centers in other states for General Motors. NorthPoint has nearly completed demolition of buildings on the site.

“The mall was no longer economically viable and its value was on the decline. This economic development project will transform a deteriorating shopping center into a vibrant manufacturing center,” Parajon said. “Through this collaborative approach with NorthPoint and GM, we will see the site redeveloped in a way that will enhance Arlington’s already thriving economy.”

General Motors is one of the largest employers in Arlington and North Texas and is a key part of the City’s economic foundation. The Arlington Assembly Plant, currently undergoing a $1.4 billion expansion, employs more than 4,200 workers and produces approximately 320,000 full-size sports utility vehicles each year. Those vehicles include the Chevy Tahoe and Suburban; GMC Yukon and Cadillac Escalade.

“General Motors has been helping people live their American Dream in Arlington since the assembly plant opened in 1954. With the company’s continued investment and commitment to doing business in our city, those dreams will continue for years to come,” said Councilman Robert Shepard, Economic Development Committee Chairman.

During the Tuesday, June 13 meeting, the Arlington City Council created a reinvestment zone for the NorthPoint property and approved incentives to facilitate the project.

Incentives approved for NorthPoint were:

  • 100 percent property tax abatement on added value of the mall site for 10 years, (approximately $2.6 million)
  • Waiver of all development fees (approximately $1 million)
  • Public infrastructure improvements ($2 million)
  • Chapter 380 grant to reimburse site development costs ($6 million)

Incentive approved for General Motors were:

  • 80 percent tax abatement on the added value of business personal property for 10 years (approximately $2.7 million)

The City of Arlington continues its efforts to create jobs, attract more visitors, and maintain a desirable environment for businesses. Strategic economic development allows Arlington to build its commercial tax base while keeping the tax rate low so the city can continue to provide the high-quality services – such as police, fire, parks, and libraries – that our residents expect.

Arlington Mayor Jeff Williams recused himself from the project deliberations and all votes, including the June 13 council vote, to avoid a potential conflict of interest with his business, Graham Associates, Inc.