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Council backs foreign‑trade‑zone support letter for Nobilia North America to serve Garland facility
Summary
Garland approved a resolution supporting a Foreign‑Trade Zone application by Nobilia North America for 45,000 square feet of space; staff said the designation is location‑ and user‑specific and would be administered by FTZ No. 39 (DFW Airport board).
The Garland City Council unanimously approved a resolution on Aug. 19 to provide a support letter for Nobilia North America’s application for a Foreign‑Trade Zone (FTZ) designation covering 45,000 square feet at 3101 Marquise, Suite 300.
City staff explained that foreign‑trade zones are U.S. Commerce Department programs established in 1934 that allow users to defer or reduce customs duties and other federal charges for qualifying international inventory; the Dallas/Fort Worth International Airport Board administers FTZ No. 39, which serves eight North Texas counties. The city’s support letter is one step in the company’s application to the FTZ board; the city itself does not approve FTZ designations.
According to the staff presentation, Nobilia — described by staff as a major global cabinet manufacturer — is leasing 45,000 square feet inside a 150,000‑square‑foot building and holds a five‑year lease through May 2030 for the Garland location. Staff told council the company currently has two full‑time employees at the site, expects about 10 by year‑end and anticipates 20 to 30 full‑time employees when fully operational; estimated payroll for the local operation was stated as $1 million to $1.5 million. Staff also estimated machinery and equipment at the site would be taxable (estimated at about $5 million), and gave a midrange estimate for the site’s inventory value of $1.5 million to $2 million. Under staff calculations, the inventory portion that would remain taxable to Garland — after Freeport exemptions — would be small and city revenue impact modest (staff cited an example figure of roughly $4,000 annual impact to the city).
Councilmembers asked whether the FTZ benefit is tied to the business and location (staff confirmed both), whether the city can limit the duration of support (staff said the FTZ board, not the city, approves designations), and whether the city could request community benefits in return for a support letter (staff and a council speaker warned against pay‑for‑play arrangements; the issue was raised but not acted on).
Councilmember Dutton moved approval and Councilmember Bass seconded; the motion passed unanimously.
