City of Fort Worth, TX

05/01/2024 | Press release | Distributed by Public on 05/01/2024 04:13

Council considers incentives for ITS Logistics expansion

Council considers incentives for ITS Logistics expansion

Published on May 01, 2024

Earlier this week, an economic development incentive was proposed to City Council for the expansion of ITS Logistics, a supply chain logistics and technology company. ITS Logistics already has an existing presence in Fort Worth, with a 1 million-square-foot distribution center located at Northpoint Intermodal Logistics Center, near Perot Field Fort Worth Alliance Airport.

Why it matters: The company is seeking new office space for operations and service support around their newly released ContainerAI platform, which provides cutting-edge container management and visibility for logistics clients. They are interested in leasing at least 15,000 square feet of office space on the third floor of One West 7th, 2859 Crockett St.

The company's capital investment would include up to $1 million in tenant improvements, equipment and related expenditures. ITS Logistics would also commit to hiring between 250 to 339 new full-time employees by December 2027, to be maintained for a minimum of three years from the job's hiring date.

Additionally, 30% of these full-time employees must be Fort Worth residents, and 15% of construction costs for improvements would go to business-equity firms.

What's next: In exchange, the City of Fort Worth would enter into a three-year economic development agreement not to exceed a total of $847,500. The grants would be based on employment numbers, with $2,500 being awarded to the company for every full-time job with a minimum wage of $100,000, for up to a maximum of 339 employees. If the company is unable to sustain these jobs at these salaries for less than three years, a claw back provision would be in place.

ITS Logistics is one of the fastest-growing logistics companies in America, ranking No. 19 on Transport Topics' list of Top Freight Brokerage Firms in North America. The company also ranks No. 1,751 on the Inc. 5000 list for the fastest-growing private companies in the U.S. ITS Logistics already employs 800 people nationwide, and has an annual revenue of $1 billion.

City Council will take final action on this proposed incentive on Tuesday, May 14.

Get articles like this in your inbox.Subscribe to City News.