Mid City Times

A proposed tax abatement was recently presented to the City Council to support the local expansion of Americold, a major temperature-controlled warehousing and distribution provider.

Americold employs 16,000 people and operates 242 locations globally. In Texas, it has sites in Fort Worth, Dallas, Grand Prairie, and Mansfield. The proposed project focuses on expanding Americold’s existing facility at 4900 Blue Mound Road in Fort Worth. The current building is situated on 22 acres, with only seven acres developed.

The company plans to expand into the remaining space with a capital investment of $123 million. This includes $68 million in real property improvements by December 2027 and $55 million in business personal property by January 2028. Additionally, Americold commits to creating at least 85 full-time jobs by December 2025 with average annual salaries exceeding $65,000. Furthermore, 15% of construction costs for the expansion will be allocated to business equity firms.

In return, the City of Fort Worth would offer a seven-year tax abatement of up to 50% of the incremental value of both real and business personal property, estimated at $2.5 million. This abatement is contingent upon Americold meeting its commitments; failure to do so could result in reduction or forfeiture of the abatement.

If approved, the project is expected to generate over $2.5 million in gross new net taxes annually for the city, essentially recouping the incentive within three and a half years.

Cold storage warehousing stores perishable or sensitive goods like food and medicine in climate-controlled environments. Increased e-commerce and supply chain onshoring have driven demand for cold storage facilities. Fort Worth's existing cold storage facilities are nearly fully occupied with no new units under construction as of late 2023.

Americold’s expansion would enhance cold storage capacity for companies in western DFW Metroplex and bolster Fort Worth’s logistics and healthcare sectors.

The tax abatement will go before the Fort Worth City Council for final consideration on Tuesday, Oct. 15.

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