Oklahoma City Council to hear $1 million Canoo economic incentive request
Oklahoma City's Economic Development Trust voted Tuesday to send a request to provide $1 million in incentives for electric vehicle start-up Canoo to the city council.
City officials previously said the incentives agreement is performance-based. No money is to be paid until 550 jobs are created over the next three years. The agreement also calls for an average wage of $71,558. It will be funded through the general obligation limited tax bond issue passed by voters in 2017.
The company estimates it will invest $347 million on the plant in west Oklahoma City. Real estate agents have told The Oklahoman the company is acquiring the former Terex telehandler plant at 9528 W Interstate 40 Service Road.
Originally built in 1972, the facility on the southeast corner of I-40 and Morgan Road includes a main 500,000-square-foot building, a 12,000-square-foot training center and a 37,000-square-foot office space. Terex closed the plant earlier this year and moved operations to Mexico.
Canoo’s plans call for production of its vehicles for delivery to customers in 2023. Canoo already has one facility in progress at MidAmerica Industrial Park in Pryor. The Pryor operation was expected to start production by 2024, but the Tulsa World recently reported it could face delays because of "unfavorable economic conditions."
The company does have pending sales. Oklahoma agreed to buy up to 1,000 Canoo vehicles as part of an incentive package for the Pryor facility, paying between $35 million and $50 million for the vehicles over a span of five years.
Walmart agreed to purchase at least 4,500 of Canoo’s electric vehicles for same-day delivery of its products.
NASA also has announced it will buy three vehicles to transport astronauts, support staff and equipment at the Kennedy Space Center in Florida. Canoo will provide Crew Transportation Vehicles for NASA's crewed Artemis lunar exploration launches. The all-electric models will be delivered to NASA by June 2023.
Contributing: Staff writer Steve Lackmeyer
This article originally appeared on Oklahoman: Oklahoma City Council will hear Canoo request for economic incentives
