The Denton city government canceled a tax rebate agreement with U.S. Aviation Group, a private pilot training company, after it failed to meet a key financial target.
The city and the company signed the agreement in 2015. U.S. Aviation subsequently expanded its facilities at Denton Enterprise Airport with new flight training simulation equipment and aircraft.
The three-year agreement would have provided a 70 percent tax rebate on the increase in value that came from the company's investment in new equipment. However, the assessed value increased $1.9 million, far less than the $5 million threshold required by the agreement.
The city terminated the agreement without paying any rebates.
The contract is the third tax rebate agreement that the city has canceled in the past few months. A 2015 agreement with Business Air also did not meet a minimum threshold in increased property value. The agreement was canceled after Business Air's property was purchased by U.S. Aviation Group. An agreement with Victor Equipment Company and Mohr Denton, LLC, was also canceled.
FEATURED PHOTO: The interior of U.S. Aviation's flight training school. DRC file photo