The city of Longview is considering a reinvestment zone as a way to provide tax abatement incentives to AAON Coil Products.
AAON, a Tulsa-based company, broke ground last month on a planned $28 million expansion of its manufacturing facility on Gum Springs Road. Once completed, it expects to employ 463 full-time workers at the location, according to city documents.
It's an addition of 125 jobs over the next four years, according to the Longview Economic Development Corp.
"We signed the contract with the general contractor last week," AAON President Gary Fields said about construction, which he anticipates to be completed by Oct. 1, 2020.
AAON has applied under the Texas Enterprise Zone program as part of a tax abatement agreement with the city. LEDCO said in June that it will ask the city and Gregg County to extend 50% abatement of the company's property taxes — all part of a $1.25 million incentive deal.
The Texas Enterprise Zone program is an economic development tool that lets local communities partner with the state to encourage job creation and capital investment in economically distressed areas. Using this tool, the city can nominate AAON as an enterprise project, making the company eligible for tax refunds on qualified expenses.
"There were nine cities that were offering us considering incentives to come to their cities," Fields said, "and this was one of the items to help us decide to expand in Longview."
The Longview City Council will hold a public hearing about the tax abatement agreement during its regular meeting a 5:30 p.m. Oct. 24 at City Hall, 300 W. Cotton St. Following the public hearing, council members will consider approving the deal.