Mary Kay breaks ground on $125M manufacturing facility

Cosmetics brand Mary Kay started construction Tuesday on a 470,000-square-foot manufacturing facility in Lewisville.

The project, dubbed R3 (short for Regal Row Relocation), will be located on 26.2 acres at 2613 Denton Tap Road and house the company’s 700 manufacturing workers and 100 corporate employees. Construction is set to be complete in the first quarter of 2018, and workers will begin to move during the second and third quarters of 2018.

“In the Mary Kay headquarters, we’re at capacity, so there will be some employees, we haven’t decided who yet, who move to our new plant,” Mary Kay CEO David Holl told the Dallas Business Journal.

Mary Kay received incentives to build in Lewisville, including a 90 percent tax abatement. The abatement applies to business personal property and real estate property taxes in excess of current value. The land value, which was $4.4 million in June, is not included in the abatement.

Lewisville expects Mary Kay to spend $44.2 million on the land and construction and $30.8 million in business personal property, reported The Lewisville Texan Journal.

The city also extended Mary Kay a “380 grant agreement,” under which the city will waive 75 percent of the company’s building permit fees and all of its water and sewer impact fees. It would also refund sales tax the company pays on construction materials and furnishings for the building, if purchased in the city.

And the deal would grant a 90 percent rebate on inventory taxes for 10 years.

“Just because somebody would offer you a better incentive than someone else, if it wasn’t the right location, it would pale in comparison to the long-term cost of being 10 miles away from a better spot,” Holl said of the incentives.”At the end of the day, it was the location and the willingness of the city to be a good partner with business.”

In return, the company is expected to invest at least $75 million in the facility and occupy 330,000 square feet. It must also maintain employment of at least 500 workers, not hire any undocumented workers, and the median wage of its employees must be at least $45,000.

Korri Kezar, Dallas Business Journal

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