Tyler City Council on Wednesday approved a tax abatement agreement that will allow Trane to upgrade its Tyler manufacturing facility.
The $22 million capital investment project eventually will result in an additional 50 jobs, and a pledge from the company to retain an existing 469 jobs. The first phase is a $6.5 million remodel.
The abatement will allow the company to redesign and revamp the entrance and some meeting spaces.
“We have about 2,500 folks - representatives from our base of installers and our dealers - who come through on an annual basis,” said Ted Crabtree, Trane’s vice president of operations. “We want to bring that space up to a higher level. It’s an effort to highlight our products in a very competitive environment.”
Trane is working with a local architecture company on the project.
“We’ve utilized Fitzpatrick Architects, and you just couldn’t ask for anyone better,” Crabtree said. “And of course we’ll use local contractors and subs, as we always do. The abatement is 100 percent for five years, and 50 percent for years six and seven.”
Trane will seek a similar tax abatement agreement with Smith County. This is the third tax abatement agreement with Trane. In 1993, a four-year agreement was reached with the city for a $5 million investment.
A second agreement was signed in 2007 for a $6.5 million project.