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>> Good afternoon.

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I'm going to be talking to you today about total impact,

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and this is a model that we've recently implemented.

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And I'll be giving you a general overview, and you're going

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to be looking at this model for two of the projects today.

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[ Silence ]

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So a lot of the members here are new, so I just wanted --

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thought it was important to point out the prior practice.

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So the prior practice was performed by myself using various

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scenarios, and these were entered into an Excel spreadsheet

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, basically how much the company would receive, what

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percentage, and what that would look like over a term, and

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then also the revenue to the city over that same term.

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I also used a model from UNT's Center for Economic

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Development and Research, and that took into account annual

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payroll, discretionary income, and added a multiplier to

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come out with the sales tax impact.

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And that's a bit antiquated.

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This was used -- it came about when Terry Clower was here.

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And then also used JobZQ. This is a labor tool that we use

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that has a very minor way to calculate indirect and induced

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labor.

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And that was the prior practice.

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And then this is total impact, and this summarizes some of

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the things that we can do with total impact.

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It's an Austin-based from Impact Data Source tool.

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And it's specific to economic development, and it's fully

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customizable.

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We brought our finest department in, our utility

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departments in.

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We had it customized to include our turfs.

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We did a lot of work to make it unique and customized to

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Denton.

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And then it's able to perform economic and fiscal impact

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analysis as well as incentive analysis.

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And it's very inefficient.

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I'm not pulling from three different things. It's all in

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one.

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So now we're going to look at an event.

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An event can be an expansion or a contraction.

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So that would be a new company or a closure for it.

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But for this discussion, we're going to talk about a new or

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expansion project.

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So economic impact, the direct impact would be the jobs and

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the sales output directly created by the event.

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So if a company came in with 75 employees, your direct

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impact would be 75 employees.

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And then we're going to look at the ripple effects.

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So under the ripple effects, we have our indirect impact,

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the jobs and sales output, companies supplying goods and

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services to the new expanded industry.

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And this would be in the case of maybe a new construction

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firm comes in and they're buying steel from a local

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supplier, or they might use a local accounting firm for

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services.

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And then we go on to the induced impact, the jobs and sales

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output created when new employees from the new or expanded

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firm spend their wages at local establishments.

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An example would be on a restaurant that is caused to hire

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more employees because of maybe a new manufacturing plant

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or other development.

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And then the fiscal impacts, we've got the tax revenue that

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's generated by the new or expanded project.

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This could include businesses and households.

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So you assume that a certain number of workers that are

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relocating are going to purchase households, and the model

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takes that into account.

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And then the demand on government services, so your police,

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your fire, your libraries, for example, and then the cost

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for providing utility services.

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And this is the first time we've been able to capture that.

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So we're really excited about getting able to look at that

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as well.

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Erica, I have a question.

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Would you prefer we wait until the end or as you're going

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through?

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It's fine.

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Okay. In looking at this project or this software, it

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impresses me that you have to input quite a bit of data in

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order to allow for these economic impacts to show the

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actual effect.

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So can you give us an idea of what kind of data you have to

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input into the system before the system becomes relevant?

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Sure. We've got a project data page, and you can put a

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summary description.

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You'll see that on your one page summaries. It'll print out

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for you.

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You put in if it's in a TURS, if it's not in a TURS, if it

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's a new development, a relocation, or if it's an expansion,

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if they already exist here in the city.

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So there's different forms for that that populate based on

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what you check.

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You enter the valuation, the estimated valuation.

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If they're already locating here, you enter their current

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valuation as well.

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Property valuation.

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So that would be your ad valorem.

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It has inputs for the amount of sales, sales taxes spent by

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the company.

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It also has inputs for the number of out of town guests

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that you may have for trainings or just to come in and view

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the facility.

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So it's trying to do the heads and beds and calculate some

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of those impacts for sales tax.

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That's where some of the multipliers come in. Jobs, of

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course.

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You enter the jobs and you're able to do it at 10 year

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increments.

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So we set up our model for 10 years and you can add the

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jobs as they come online.

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Same with the value.

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So you might have improvements and then BPP.

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They might be having an expansion for your business

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personal property.

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You might see it come on in later years.

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So it takes into account a lot more than you can physically

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do just with an Excel spreadsheet.

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It takes a lot into the model and puts a really good output

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.

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And then you also have different sheets.

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And another one of the sheets is the public investment.

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So you can put in your DME revenue.

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You can also put in your permit fees, what your estimated

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permit fees are.

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And we use open counter to estimate that.

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And then it calculates all that and inputs it into the

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model.

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The question I'm having is kind of a fact checker kind of a

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deal where some people may come in with a lot of blue sky,

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you know, and very optimistic projections.

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Sure.

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So how do you make sure that we're not just, you know,

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drinking blue water?

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One of the things that we changed in our application, we

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used to have a Word document application.

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We now have an Excel application.

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We asked for your table.

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We have a separate table for your investment and then the

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table for your estimated value.

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And we do inform our applicants that they will be held to

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threshold based on that value.

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Now, your investment is where you show your leveraging

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because there are certain things that you want to include.

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It also includes your soft cost, your engineering, your

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grading, some of the other things in there.

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But it allows them to explain that.

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And while we still are looking at the valuation, what we

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think that will be the estimated valuation.

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Thank you very much.

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John, I also want to let you know, in addition to what

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Erica said about letting our applicants know that we need

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them to give us their best realistic projections,

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because that's going to be the basis for their contract.

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And there are thresholds that must be met per the contract.

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And if they are not, then incentives are not received.

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So it's a communication with the applicants from the

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beginning about what the expectation is as we help them get

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their application completed.

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Thank you very much.

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You're welcome.

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Now I'd like to talk about the fiscal impacts, the benefits

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.

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So you have your public tax revenue, your property tax,

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your sales tax, your hotel occupancy tax.

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And then you also have your other public revenue, your

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utility revenue, franchise fees, building permits and fees.

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And under the sales tax, you're looking at the business's

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taxable sales, the taxable spending by the business, labor

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spending, and then your out of town visitor sales that we

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mentioned.

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And then after the benefits, we look at the physical, the

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fiscal impacts of the costs.

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So you have your public costs, your cost of providing

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municipal services, and then your cost of providing utility

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services as well.

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And then, of course, the cost of your incentive.

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And that can vary and it can be layered.

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But property tax abatement, a rebate, meaning chapter 380

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on the rebate, a sales tax rebate.

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That can be both of your regular retail sales and your

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construction sales and use tax using the Texas Direct Pay

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Permit.

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And then we have a debt municipal electrics economic growth

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rider that we can add in.

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And that's over a period of five years based on how they

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qualify and the cash incentive if we decide to do that,

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especially in the case of the investment fund.

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And so we've looked at our benefits and we've looked at our

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costs and now we're going to talk about the net benefits.

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We're going to look at basically less the cost of the

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incentive.

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And in general, I mean, we can set our own parameters, but

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in general, the net benefits should be positive.

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I've included the sheet here.

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It's a little hard to read, but you see the subtotal

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benefits and the subtotal cost.

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And at the bottom of that, you see the net.

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We definitely want that to be positive.

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The rate of return.

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I'm going to show you an example in a second.

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But the larger the rate of return, the better it is for the

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city, the better deal it is.

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And then in general, the payback, the shorter the term, the

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better it is for the city as well.

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Okay. So here you have an example.

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This is actually was performed for a prospect.

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But you can see that this is also what you have in your

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backup for your other ones, but you have your in the first

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table here, you're showing your benefits.

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Then you're also showing your costs and then you're showing

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your net benefit.

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The other items I highlighted in my presentation are at the

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bottom here.

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So you'll see that you have your total incentives and then

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you have your incentive per job.

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Your rate of return and the payback period.

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And so you're looking for this.

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This is showing you the nexus of basically where these two

268
00:27:58,160 --> 00:28:04,000
intersect, both the incentive and then the payback period.

269
00:28:04,000 --> 00:28:07,549
Another thing that's important to note here on the top left

270
00:28:07,549 --> 00:28:11,299
is you'll see your jobs, your direct and your spinoff, your

271
00:28:11,299 --> 00:28:14,000
indirect and your induced is your spinoff.

272
00:28:14,000 --> 00:28:17,000
And then your salary and your investment.

273
00:28:17,000 --> 00:28:20,690
And then you can see a little highlight of the residential

274
00:28:20,690 --> 00:28:22,000
impacts as well.

275
00:28:22,000 --> 00:28:25,000
And it's based on how many? 4.4 homes.

276
00:28:25,000 --> 00:28:26,000
It's pretty conservative.

277
00:28:26,000 --> 00:28:28,000
That's one of the things we liked about this model.

278
00:28:28,000 --> 00:28:30,000
We actually looked at three models.

279
00:28:30,000 --> 00:28:34,000
Remy, ImPlan and Impact Data Source when we chose this one.

280
00:28:34,000 --> 00:28:45,049
And I believe that they were the most conservative and more

281
00:28:45,049 --> 00:28:51,000
realistic, less inflated.

282
00:28:51,000 --> 00:28:54,000
If anyone has any questions, I'd be happy to answer them.

283
00:28:54,000 --> 00:29:00,500
On the residential side, it estimates about 15% of the 199

284
00:29:00,500 --> 00:29:05,000
employees would relocate so that the other ones are coming.

285
00:29:05,000 --> 00:29:07,750
I mean, that's hard to know. Are they coming from people

286
00:29:07,750 --> 00:29:11,000
already here and robbing from another company?

287
00:29:11,000 --> 00:29:13,000
Well, we struggled with that.

288
00:29:13,000 --> 00:29:17,109
We actually inputted, both myself, Michelle and Christina,

289
00:29:17,109 --> 00:29:20,690
inputted at least two applications of incentives we've

290
00:29:20,690 --> 00:29:24,000
already done and one of them was Safran Labanol.

291
00:29:24,000 --> 00:29:27,000
And that was a case where it was 700 employees.

292
00:29:27,000 --> 00:29:30,559
So we had to look at two models, both ones that were

293
00:29:30,559 --> 00:29:34,000
because they relocated from the metro area.

294
00:29:34,000 --> 00:29:43,000
So we actually performed two models to look at both.

295
00:29:43,000 --> 00:29:47,000
Erica, I did have a question on this one here.

296
00:29:47,000 --> 00:29:50,009
Under where you put residential investment, excuse me,

297
00:29:50,009 --> 00:29:53,000
development, what does that 4.4 homes means?

298
00:29:53,000 --> 00:29:55,269
That's how many they're thinking from based on the number

299
00:29:55,269 --> 00:29:57,000
of workers that are going to buy a home.

300
00:29:57,000 --> 00:30:01,000
It's very conservative. There may be a lot more.

301
00:30:01,000 --> 00:30:04,000
They also use, but I didn't mention, I mentioned the AIS,

302
00:30:04,000 --> 00:30:07,509
they use Remy multipliers, but they base it on industry

303
00:30:07,509 --> 00:30:08,000
code.

304
00:30:08,000 --> 00:30:11,029
So I select an industry code and they base some of their

305
00:30:11,029 --> 00:30:13,000
outputs based on that as well.

306
00:30:13,000 --> 00:30:18,400
So in this scenario, you have 125 direct jobs created by

307
00:30:18,400 --> 00:30:24,230
this incentive, okay, with an average salary of $76,000,

308
00:30:24,230 --> 00:30:30,000
but you're only producing 4.4 homes purchased?

309
00:30:30,000 --> 00:30:32,000
That's new homes.

310
00:30:32,000 --> 00:30:33,000
New homes?

311
00:30:33,000 --> 00:30:34,000
Yes, sir.

312
00:30:34,000 --> 00:30:38,230
But it doesn't take into the effect building new homes or

313
00:30:38,230 --> 00:30:41,000
just purchasing existing homes.

314
00:30:41,000 --> 00:30:44,769
I'm just trying to get an idea of how many homes are going

315
00:30:44,769 --> 00:30:49,279
to be purchased by these 125 employees that are quote reloc

316
00:30:49,279 --> 00:30:50,000
ating or?

317
00:30:50,000 --> 00:30:51,000
Right.

318
00:30:51,000 --> 00:30:53,000
John, we will find out for you, okay?

319
00:30:53,000 --> 00:31:00,000
Okay, we'll get the definition from the big book of codes.

320
00:31:00,000 --> 00:31:03,000
I'm looking at it right now actually.

321
00:31:03,000 --> 00:31:07,029
If I read this right, the estimate is that 30 workers will

322
00:31:07,029 --> 00:31:08,000
relocate.

323
00:31:08,000 --> 00:31:14,160
So the other 120, other 4.4 homes and 29.9 workers reloc

324
00:31:14,160 --> 00:31:15,000
ating.

325
00:31:15,000 --> 00:31:16,000
I see it.

326
00:31:16,000 --> 00:31:19,000
And that's an estimate based on somebody's numbers.

327
00:31:19,000 --> 00:31:21,000
Okay.

328
00:31:21,000 --> 00:31:23,990
Of those 30 people that are relocating, they're going to

329
00:31:23,990 --> 00:31:25,000
buy a home here.

330
00:31:25,000 --> 00:31:28,000
If you're relocating from Flaremount, you may commute.

331
00:31:28,000 --> 00:31:30,000
That makes sense.

332
00:31:30,000 --> 00:31:32,940
So I guess a lot of this relocating depends on if I'm

333
00:31:32,940 --> 00:31:36,299
moving from Alaska and bringing all my people down here or

334
00:31:36,299 --> 00:31:39,000
I'm coming from Dallas and moving up here.

335
00:31:39,000 --> 00:31:40,000
Right.

336
00:31:40,000 --> 00:31:43,769
And just as a general comment, this company has developed

337
00:31:43,769 --> 00:31:47,799
proprietary formulas based on Department of Commerce data,

338
00:31:47,799 --> 00:31:49,000
the RIMS data.

339
00:31:49,000 --> 00:31:52,160
So there are things that calculate in the background based

340
00:31:52,160 --> 00:31:55,000
on their proprietary research and development.

341
00:31:55,000 --> 00:31:59,000
And I also want to point out that this is a program that's

342
00:31:59,000 --> 00:32:03,000
used by many, many, many communities and economic

343
00:32:03,000 --> 00:32:05,650
development corporations, especially in Texas because it's

344
00:32:05,650 --> 00:32:07,000
a Texas-based company.

345
00:32:07,000 --> 00:32:11,700
But they're very thorough in their development of their

346
00:32:11,700 --> 00:32:16,700
models and they're tested in the marketplace through use by

347
00:32:16,700 --> 00:32:18,000
other EDCs.

348
00:32:18,000 --> 00:32:19,000
Thank you.

349
00:32:19,000 --> 00:32:23,410
We're upgrading our model based on the most recent data

350
00:32:23,410 --> 00:32:25,000
model out there.

351
00:32:25,000 --> 00:32:27,000
Absolutely. Yes.

352
00:32:27,000 --> 00:32:28,000
And we can continue to customize it.

353
00:32:28,000 --> 00:32:32,000
I've got an ongoing list for the next time we update it.

354
00:32:32,000 --> 00:32:35,000
Things I'd like to see.

355
00:32:35,000 --> 00:32:40,000
Anybody have any more questions or comments?

356
00:32:40,000 --> 00:32:44,000
All right. Thank you.

357
00:32:44,000 --> 00:32:50,220
Our next item is an incentive request, an application item

358
00:32:50,220 --> 00:32:53,000
number 18 0 1 0.

359
00:32:53,000 --> 00:32:56,079
Receive a report and hold a discussion regarding an

360
00:32:56,079 --> 00:33:00,000
incentive application from the United States cold storage.

361
00:33:00,000 --> 00:33:22,000
Caroline will present that.

362
00:33:22,000 --> 00:33:27,029
Okay, we do have an incentive request from United States

363
00:33:27,029 --> 00:33:32,470
cold storage and we have a representative from U.S. cold in

364
00:33:32,470 --> 00:33:35,000
the room with us here, Tim Franciscus.

365
00:33:35,000 --> 00:33:39,000
And he's been working on this project from the beginning,

366
00:33:39,000 --> 00:33:43,119
which actually our first contact with U.S. cold storage was

367
00:33:43,119 --> 00:33:48,390
in January of 2017 when chamber staff received a call from

368
00:33:48,390 --> 00:33:51,000
a broker about a project.

369
00:33:51,000 --> 00:33:54,779
And starting at that point, it moved into the economic

370
00:33:54,779 --> 00:33:58,670
development partnership process of collaboration and

371
00:33:58,670 --> 00:34:02,680
helping get questions answered and due diligence done for

372
00:34:02,680 --> 00:34:05,000
the potential location project.

373
00:34:05,000 --> 00:34:07,000
And here we are today.

374
00:34:07,000 --> 00:34:09,820
So I'm going to give you some details about the company

375
00:34:09,820 --> 00:34:12,000
itself and then about their request.

376
00:34:12,000 --> 00:34:18,030
And Tim is available to answer specific questions from the

377
00:34:18,030 --> 00:34:23,780
company's side if that's something that any of you would

378
00:34:23,780 --> 00:34:26,000
like for him to do.

379
00:34:26,000 --> 00:34:28,000
All right. We'll start with the background.

380
00:34:28,000 --> 00:34:31,059
So U.S. cold storage provides their clients with refriger

381
00:34:31,059 --> 00:34:34,000
ated and frozen food warehousing and transportation.

382
00:34:34,000 --> 00:34:38,090
They've got 38 facilities in 13 states and about 2500

383
00:34:38,090 --> 00:34:39,000
employees.

384
00:34:39,000 --> 00:34:43,719
Some of their current customers at their facilities include

385
00:34:43,719 --> 00:34:48,690
well-known brands like Kraft, Kellogg's, Coma, Unilever,

386
00:34:48,690 --> 00:34:53,000
and Butterball among many other types of clients.

387
00:34:53,000 --> 00:34:56,659
They do have four existing facilities in the DFW Metroplex

388
00:34:56,659 --> 00:35:00,460
in Arlington, Dallas, and Fort Worth with a total of 32

389
00:35:00,460 --> 00:35:02,000
million cubic feet.

390
00:35:02,000 --> 00:35:05,039
And these facilities, one thing that I learned in the

391
00:35:05,039 --> 00:35:08,579
process of researching is that these facilities, they build

392
00:35:08,579 --> 00:35:11,000
them and they use them for a long time.

393
00:35:11,000 --> 00:35:15,000
We're talking 30, 40 years in these locations.

394
00:35:15,000 --> 00:35:19,170
The company began in 1899, which is kind of cool, as

395
00:35:19,170 --> 00:35:23,409
American Ice Company and then were renamed to U.S. Cold

396
00:35:23,409 --> 00:35:28,309
Storage in the 1920s and became a wholly owned subsidiary

397
00:35:28,309 --> 00:35:31,000
of John Swyer and Sons in 1982.

398
00:35:31,000 --> 00:35:37,250
The project itself that's being considered for Denton, and

399
00:35:37,250 --> 00:35:41,119
I do want to emphasize at this point that the information

400
00:35:41,119 --> 00:35:44,960
that you have is the best information that the company can

401
00:35:44,960 --> 00:35:47,000
provide to us at this point.

402
00:35:47,000 --> 00:35:50,880
Things are still a little bit preliminary, so we're giving

403
00:35:50,880 --> 00:35:54,599
you the best information that we have at this date and time

404
00:35:54,599 --> 00:35:55,000
.

405
00:35:55,000 --> 00:35:58,480
They're considering 6 million cubic feet of refrigerated

406
00:35:58,480 --> 00:36:02,699
warehouse with 2,500 pallet positions on a 40-acre site on

407
00:36:02,699 --> 00:36:06,170
Jim Crystal Road, which is inside the West Park TURS, and

408
00:36:06,170 --> 00:36:08,000
you'll see a map of that in a minute.

409
00:36:08,000 --> 00:36:12,000
Their land sale did close on February 2nd.

410
00:36:12,000 --> 00:36:15,579
The plan for the facility is to offer several different

411
00:36:15,579 --> 00:36:19,860
types of storage, case picking, repacking, distribution and

412
00:36:19,860 --> 00:36:23,969
transportation solutions for food production facilities in

413
00:36:23,969 --> 00:36:26,000
the U.S. and in Mexico.

414
00:36:26,000 --> 00:36:29,949
Their preliminary plans do provide for rail service at the

415
00:36:29,949 --> 00:36:33,730
site and export services to Mexico, cooler and freezer

416
00:36:33,730 --> 00:36:38,000
storage, of course, and some on-site customer offices.

417
00:36:38,000 --> 00:36:42,340
And their plan right now is to use eco-friendly refriger

418
00:36:42,340 --> 00:36:47,340
ation technology and include industry-leading safeguards for

419
00:36:47,340 --> 00:36:49,000
the environment.

420
00:36:49,000 --> 00:36:53,630
You can see here a picture of one of their existing

421
00:36:53,630 --> 00:36:59,039
facilities in Dallas over there, and then this is their USC

422
00:36:59,039 --> 00:37:02,000
S Denton site on Jim Crystal Road.

423
00:37:02,000 --> 00:37:07,059
Let's see if I can get my mouse there. Jim Crystal Road

424
00:37:07,059 --> 00:37:12,780
right here, Western Boulevard right here, and the railroad

425
00:37:12,780 --> 00:37:15,000
track is right here.

426
00:37:15,000 --> 00:37:21,199
Any questions about that? Everybody know right where that

427
00:37:21,199 --> 00:37:22,000
is?

428
00:37:22,000 --> 00:37:31,000
The pond will be drained.

429
00:37:31,000 --> 00:37:35,440
All right. So the project itself in terms of investment and

430
00:37:35,440 --> 00:37:38,500
jobs, the company is going to be making an approximately $

431
00:37:38,500 --> 00:37:42,969
34 million investment, which is going to add $28 million in

432
00:37:42,969 --> 00:37:44,000
new value.

433
00:37:44,000 --> 00:37:46,929
And for those of y'all on the board who are new and this is

434
00:37:46,929 --> 00:37:49,889
the first time you've seen one of these projects and the

435
00:37:49,889 --> 00:37:53,130
application and the information that we bring to you, the

436
00:37:53,130 --> 00:37:56,849
investment can include soft costs, other things that don't

437
00:37:56,849 --> 00:37:58,000
add additional value.

438
00:37:58,000 --> 00:38:01,610
But we want to communicate to you the complete picture of

439
00:38:01,610 --> 00:38:05,130
how much money the company is going to spend versus what

440
00:38:05,130 --> 00:38:07,000
the additional value is.

441
00:38:07,000 --> 00:38:10,690
They plan to create 44 new jobs in the first year of

442
00:38:10,690 --> 00:38:14,809
operations and then have 67 new jobs by the third year of

443
00:38:14,809 --> 00:38:16,000
operations.

444
00:38:16,000 --> 00:38:20,639
Average salary is a little bit over $36,000, and they do

445
00:38:20,639 --> 00:38:24,000
offer benefits to their full-time employees.

446
00:38:24,000 --> 00:38:28,170
And my understanding is that the vast majority of their

447
00:38:28,170 --> 00:38:33,000
employees are full-time and therefore benefits eligible.

448
00:38:33,000 --> 00:38:36,190
Again, the company is estimating at this point that they

449
00:38:36,190 --> 00:38:39,579
would be a 1.5 megawatt per year power user from Denton

450
00:38:39,579 --> 00:38:43,710
Municipal Electric, and that would put them in the category

451
00:38:43,710 --> 00:38:46,000
of a top 25 customer for DME.

452
00:38:46,000 --> 00:38:51,630
And that would be comparable to the size and power usage of

453
00:38:51,630 --> 00:38:57,000
Aldi as a customer, the Aldi distribution center.

454
00:38:57,000 --> 00:39:00,090
So I forget that there are Aldi stores now to be specific

455
00:39:00,090 --> 00:39:01,000
about that.

456
00:39:01,000 --> 00:39:03,000
Please got a question.

457
00:39:03,000 --> 00:39:05,000
Yes, ma'am.

458
00:39:05,000 --> 00:39:07,000
Yeah, the other side is fine.

459
00:39:07,000 --> 00:39:09,750
There wasn't a breakdown and you said most of the jobs

460
00:39:09,750 --> 00:39:11,000
would be full-time.

461
00:39:11,000 --> 00:39:14,000
Do we have any kind of percentage on that?

462
00:39:14,000 --> 00:39:22,000
I'm going to say above 95% of employees are full-time.

463
00:39:22,000 --> 00:39:24,000
I'm looking at Tim.

464
00:39:24,000 --> 00:39:25,000
Yes, that's correct.

465
00:39:25,000 --> 00:39:27,000
We have no part-time employees that are down.

466
00:39:27,000 --> 00:39:29,000
So they're all full-time.

467
00:39:29,000 --> 00:39:31,000
All of our U.S. clothing companies are full-time employees.

468
00:39:31,000 --> 00:39:34,000
So that means they all qualify for benefits.

469
00:39:34,000 --> 00:39:35,000
Right.

470
00:39:35,000 --> 00:39:39,579
So for everybody out there in TV land, Tim said that almost

471
00:39:39,579 --> 00:39:45,000
all of their employees, except maybe, I don't know, one, no

472
00:39:45,000 --> 00:39:45,000
.

473
00:39:45,000 --> 00:39:47,000
Almost all of them are full-time.

474
00:39:47,000 --> 00:39:49,000
Thank you.

475
00:39:49,000 --> 00:39:51,000
Okay.

476
00:39:51,000 --> 00:39:55,000
So quick pro and con chart on the project here.

477
00:39:55,000 --> 00:39:58,000
You guys had a chance to look at this in your backup.

478
00:39:58,000 --> 00:40:00,000
It's not a target industry.

479
00:40:00,000 --> 00:40:03,000
They are adding a significant amount of new value.

480
00:40:03,000 --> 00:40:06,219
The majority of the jobs will be full-time and benefits

481
00:40:06,219 --> 00:40:07,000
eligible.

482
00:40:07,000 --> 00:40:10,000
The majority of the jobs are not high-skilled.

483
00:40:10,000 --> 00:40:13,000
Average salary is a little over $36,000.

484
00:40:13,000 --> 00:40:17,000
But that's below the Denton County average salary.

485
00:40:17,000 --> 00:40:21,519
They will be, as planned, a significant utility user for

486
00:40:21,519 --> 00:40:24,000
Denton Municipal Electric.

487
00:40:24,000 --> 00:40:27,909
Since this is a project in the TURZ zone, it will kick off

488
00:40:27,909 --> 00:40:30,000
Phase 2 of the TURZ improvements,

489
00:40:30,000 --> 00:40:34,000
which are improvements that run along Jim Crystal Road.

490
00:40:34,000 --> 00:40:36,760
However, if they're offered a tax abatement, that will

491
00:40:36,760 --> 00:40:39,179
reduce revenue that would go into the TURZ fund to

492
00:40:39,179 --> 00:40:44,000
reimburse the developer for those public improvement costs.

493
00:40:44,000 --> 00:40:45,000
Jim?

494
00:40:45,000 --> 00:40:49,000
Where did the $36,000 average salary come from?

495
00:40:49,000 --> 00:40:52,000
Is that market-based or is that?

496
00:40:52,000 --> 00:40:55,079
No, that's something that the applicant provides in their

497
00:40:55,079 --> 00:40:56,000
application.

498
00:40:56,000 --> 00:40:57,000
Oh.

499
00:40:57,000 --> 00:40:58,000
Yeah.

500
00:40:58,000 --> 00:41:00,000
Tim, would you like to come up, please?

501
00:41:00,000 --> 00:41:01,000
We can't.

502
00:41:01,000 --> 00:41:04,170
The folks, all the people watching at home, those hundreds

503
00:41:04,170 --> 00:41:07,000
of people want to hear what you say.

504
00:41:07,000 --> 00:41:12,179
I'm sorry, the only person I do know, my husband, is

505
00:41:12,179 --> 00:41:14,000
watching, so.

506
00:41:14,000 --> 00:41:22,000
Tim, come to the mic.

507
00:41:22,000 --> 00:41:24,269
Timothy Francis, Son with the United States Cold Storage,

508
00:41:24,269 --> 00:41:25,000
for the record.

509
00:41:25,000 --> 00:41:27,639
To answer the question about the salary, as part of the

510
00:41:27,639 --> 00:41:30,000
application, it asks for the hourly rate.

511
00:41:30,000 --> 00:41:34,699
Having said that, it doesn't calculate overtime, so I just

512
00:41:34,699 --> 00:41:38,449
have a $15 an hour rate, but our facility is typically

513
00:41:38,449 --> 00:41:41,000
running between 15% and 20% overtime.

514
00:41:41,000 --> 00:41:44,650
So the warehousement portion of this, it's probably, they

515
00:41:44,650 --> 00:41:48,000
're probably making between $45,000.

516
00:41:48,000 --> 00:41:50,860
But because of the way the application is set up, that's

517
00:41:50,860 --> 00:41:54,000
the number that, the calculation that you're getting.

518
00:41:54,000 --> 00:41:57,269
Did you, were you able to look at the local market to see

519
00:41:57,269 --> 00:42:00,000
what the average is for your type of work?

520
00:42:00,000 --> 00:42:03,639
We did an analysis back in 2016, actually went back to the

521
00:42:03,639 --> 00:42:07,639
end of 2015 for the Dallas-Fort Worth Metroplex, where our

522
00:42:07,639 --> 00:42:09,000
facilities were.

523
00:42:09,000 --> 00:42:11,000
And we currently have a pay scale in place.

524
00:42:11,000 --> 00:42:15,000
So there is a three-year, it's over, it's basically, they

525
00:42:15,000 --> 00:42:19,250
get an hour, $1.50 an hour more, and that's divided up

526
00:42:19,250 --> 00:42:21,000
amongst three years.

527
00:42:21,000 --> 00:42:24,980
So we are constantly analyzing the, you know, what the

528
00:42:24,980 --> 00:42:27,000
going rate is in the area.

529
00:42:27,000 --> 00:42:32,000
We'll do the same thing for Denton.

530
00:42:32,000 --> 00:42:34,000
Any other questions before I hand it back?

531
00:42:34,000 --> 00:42:39,280
I have questions, but it's about the building and energy

532
00:42:39,280 --> 00:42:40,000
use.

533
00:42:40,000 --> 00:42:41,730
So I don't know if there's another slide that addresses

534
00:42:41,730 --> 00:42:43,000
that, or if I should just ask him.

535
00:42:43,000 --> 00:42:45,139
It would probably be a good time to just talk about it

536
00:42:45,139 --> 00:42:46,000
since he's here.

537
00:42:46,000 --> 00:42:51,409
Okay, so in the, is your company building the LEED

538
00:42:51,409 --> 00:42:53,000
certified?

539
00:42:53,000 --> 00:42:55,000
Is that where I read that?

540
00:42:55,000 --> 00:42:57,000
Or is it just vested?

541
00:42:57,000 --> 00:43:00,210
Okay, so, but it does say that you're using eco-friendly

542
00:43:00,210 --> 00:43:02,000
refrigeration technology.

543
00:43:02,000 --> 00:43:04,940
Does that mean demand-side management, energy management

544
00:43:04,940 --> 00:43:06,000
type technology?

545
00:43:06,000 --> 00:43:09,860
We do have energy management technology, depending on the

546
00:43:09,860 --> 00:43:13,000
refrigeration company that we select to run the project.

547
00:43:13,000 --> 00:43:17,289
But we have, it's constantly monitored, and it is basically

548
00:43:17,289 --> 00:43:21,050
to run our refrigeration as efficiently and as eco-friendly

549
00:43:21,050 --> 00:43:22,000
as possible.

550
00:43:22,000 --> 00:43:24,739
Having said that, in Dallas, we do have what's called an

551
00:43:24,739 --> 00:43:26,000
ammonia cascade system,

552
00:43:26,000 --> 00:43:29,000
which cuts down significantly on the amount of ammonia,

553
00:43:29,000 --> 00:43:33,030
and also is just the most eco-friendly refrigeration system

554
00:43:33,030 --> 00:43:35,000
out there in our industry.

555
00:43:35,000 --> 00:43:37,000
So again, those things are all in consideration.

556
00:43:37,000 --> 00:43:39,880
We're still pretty early on in the game to know exactly

557
00:43:39,880 --> 00:43:42,000
what type of system will be in place.

558
00:43:42,000 --> 00:43:45,000
But that's what things that are being looked at.

559
00:43:45,000 --> 00:43:48,000
Do you have any plans to use renewable energy?

560
00:43:48,000 --> 00:43:50,949
I did notice that there was a lot of concrete on the top of

561
00:43:50,949 --> 00:43:52,000
your building.

562
00:43:52,000 --> 00:43:55,440
Actually, it's an insulation. We don't have any concrete on

563
00:43:55,440 --> 00:43:56,000
the top.

564
00:43:56,000 --> 00:44:00,849
So we do have limited, I guess, irrigation landscape that

565
00:44:00,849 --> 00:44:03,000
we use at our facility.

566
00:44:03,000 --> 00:44:05,449
And again, we typically in Dallas, I use Dallas as an

567
00:44:05,449 --> 00:44:06,000
example,

568
00:44:06,000 --> 00:44:09,440
we worked with the industrial park to make sure that

569
00:44:09,440 --> 00:44:13,000
everything fits in line with their restrictions.

570
00:44:13,000 --> 00:44:17,000
Okay. So I was very impressed to see that you've decreased

571
00:44:17,000 --> 00:44:18,000
your greenhouse gas emissions,

572
00:44:18,000 --> 00:44:20,360
and the things that you're saying are the ways that you're

573
00:44:20,360 --> 00:44:21,000
doing that.

574
00:44:21,000 --> 00:44:25,139
Yeah, just Unilever, if you look up Unilever as a worldwide

575
00:44:25,139 --> 00:44:26,000
company,

576
00:44:26,000 --> 00:44:30,070
they are extremely, you know, they require a lot of us at

577
00:44:30,070 --> 00:44:32,000
our facility in Covington, Tennessee.

578
00:44:32,000 --> 00:44:35,190
And so we learned a lot in that project, and we'll be

579
00:44:35,190 --> 00:44:38,000
rolling out some of those things in our new projects

580
00:44:38,000 --> 00:44:40,000
throughout the United States.

581
00:44:40,000 --> 00:44:41,000
Thank you so much.

582
00:44:41,000 --> 00:44:42,000
Sure.

583
00:44:52,000 --> 00:44:56,139
A quick overview about the West Park TURZ, again, since we

584
00:44:56,139 --> 00:44:58,000
have some new members here,

585
00:44:58,000 --> 00:45:01,000
and we've been referencing the West Park TURZ.

586
00:45:01,000 --> 00:45:06,000
It's an approximately 800 acre area north of Airport Road.

587
00:45:06,000 --> 00:45:10,000
And the TURZ itself took effect on January 1 of 2013,

588
00:45:10,000 --> 00:45:13,650
and the city and the county both contribute 40% of the ad

589
00:45:13,650 --> 00:45:18,179
valorem tax revenue into a fund that is then used to

590
00:45:18,179 --> 00:45:22,460
reimburse the developer of infrastructure improvements in

591
00:45:22,460 --> 00:45:23,000
the area.

592
00:45:23,000 --> 00:45:26,920
The current estimate for the TURZ is that it would generate

593
00:45:26,920 --> 00:45:31,000
$14.3 million into that fund over 25 years.

594
00:45:31,000 --> 00:45:36,389
The current fund balance is $230,000, and that is because

595
00:45:36,389 --> 00:45:40,679
the WENCO facility, distribution facility went in, actually

596
00:45:40,679 --> 00:45:43,000
came on partially onto the tax rolls.

597
00:45:43,000 --> 00:45:46,550
It's not fully valued yet, but we are seeing some money

598
00:45:46,550 --> 00:45:48,000
into that fund now.

599
00:45:48,000 --> 00:45:51,869
Speaking of WENCO, they did complete the Phase 1

600
00:45:51,869 --> 00:45:55,650
improvements, which ran along Western Boulevard, included

601
00:45:55,650 --> 00:45:59,000
water, wastewater, drainage, and road improvements.

602
00:45:59,000 --> 00:46:01,000
So those have been finished.

603
00:46:01,000 --> 00:46:04,469
And reimbursement of those expenses out of the TURZ fund is

604
00:46:04,469 --> 00:46:07,860
going to start this year, because, again, there's finally

605
00:46:07,860 --> 00:46:10,769
funds in the TURZ fund that can be used to complete or

606
00:46:10,769 --> 00:46:13,000
start that reimbursement process.

607
00:46:13,000 --> 00:46:16,199
Incentives that are given to companies that locate inside

608
00:46:16,199 --> 00:46:19,260
the TURZ reduce the amount of revenue that goes into the T

609
00:46:19,260 --> 00:46:22,219
URZ fund, which, again, is ultimately to be used to

610
00:46:22,219 --> 00:46:25,000
reimburse the infrastructure improvements that occur.

611
00:46:25,000 --> 00:46:28,900
So these are just the factors that we all need to keep in

612
00:46:28,900 --> 00:46:37,000
mind when we're talking about the TURZ. Questions?

613
00:46:37,000 --> 00:46:40,329
And then a quick touch on our policy for tax abatement and

614
00:46:40,329 --> 00:46:44,050
incentives that's in place currently, and we are discussing

615
00:46:44,050 --> 00:46:48,010
changes to it, but we are operating under the 2016 policy

616
00:46:48,010 --> 00:46:49,000
right now.

617
00:46:49,000 --> 00:46:53,699
Businesses may be considered for a tax abatement of 25% if

618
00:46:53,699 --> 00:46:57,940
at least $5 million in investment or value is met by the

619
00:46:57,940 --> 00:47:02,539
project. The length of the abatement can increase or can go

620
00:47:02,539 --> 00:47:07,139
higher with higher investment, but it may not exceed 10

621
00:47:07,139 --> 00:47:10,000
years, and that's by state law.

622
00:47:10,000 --> 00:47:14,699
Under the policy, the percentage of an abatement can

623
00:47:14,699 --> 00:47:20,130
increase in 5% increments for additional factors that make

624
00:47:20,130 --> 00:47:23,000
the project more desirable.

625
00:47:23,000 --> 00:47:26,730
So the request that we have from U.S. Cold Storage is for

626
00:47:26,730 --> 00:47:30,570
the maximum allowable incentive under the current policy,

627
00:47:30,570 --> 00:47:34,099
and they state in their cover letter that approval of tax

628
00:47:34,099 --> 00:47:37,710
incentives will go a long way in demonstrating community

629
00:47:37,710 --> 00:47:43,000
support to their parent company as they finalize

630
00:47:43,000 --> 00:47:51,000
construction plans for the project.

631
00:47:51,000 --> 00:47:53,360
So we start the analysis by looking at the current

632
00:47:53,360 --> 00:47:56,269
conditions, which is not going to take very long. The

633
00:47:56,269 --> 00:48:01,070
current valuation of the land is a little over $7,000

634
00:48:01,070 --> 00:48:05,519
because it has an agricultural exemption currently, and

635
00:48:05,519 --> 00:48:10,000
that brings in $45 a year in tax revenue to the city.

636
00:48:10,000 --> 00:48:13,730
So what we do next is look at the projected ad valorem

637
00:48:13,730 --> 00:48:17,769
valuation and revenue based on the information that's

638
00:48:17,769 --> 00:48:21,590
provided to us in the application, and we did use the

639
00:48:21,590 --> 00:48:26,000
market value for the estimated valuation of the land.

640
00:48:26,000 --> 00:48:28,960
Again, since it's an ag right now, we've got to have a

641
00:48:28,960 --> 00:48:31,000
different value to put in there.

642
00:48:31,000 --> 00:48:35,289
So you guys can read through that. It was in your backup,

643
00:48:35,289 --> 00:48:39,250
but I'm going to go ahead and kind of take you over to that

644
00:48:39,250 --> 00:48:44,000
far column about the estimated net annual city tax revenue.

645
00:48:44,000 --> 00:48:49,349
The bottom line down there is that we have $103,000

646
00:48:49,349 --> 00:48:54,130
available for incentives on this project, and the reason

647
00:48:54,130 --> 00:48:58,690
why is because we can't use land. We don't use anything

648
00:48:58,690 --> 00:49:03,000
that's generated by land to provide funds for incentives.

649
00:49:03,000 --> 00:49:10,369
So we're just looking at the revenue that's generated by

650
00:49:10,369 --> 00:49:18,000
the business personal property and the improvements.

651
00:49:18,000 --> 00:49:20,000
Questions about this chart?

652
00:49:20,000 --> 00:49:37,539
Ryan? Oh, yes, sir. I'm sorry. What about rollback? Erica,

653
00:49:37,539 --> 00:49:38,000
I'm going to ask you. He's asking about rollback.

654
00:49:38,000 --> 00:49:46,429
Rollback covers a period of five years, and that only goes

655
00:49:46,429 --> 00:49:51,000
to when the TERS was created. So it's not going to go

656
00:49:51,000 --> 00:49:51,000
before the TERS was created, essentially. Does that answer

657
00:49:51,000 --> 00:49:51,000
a question, Jim?

658
00:49:51,000 --> 00:49:55,920
Did we figure any of it into this, Lynn? So there's nothing

659
00:49:55,920 --> 00:49:58,000
, no rollback in it because of the TERS.

660
00:49:58,000 --> 00:50:03,239
Right. No rollback because of the TERS. Okay, so we ran our

661
00:50:03,239 --> 00:50:09,150
25, 30, and 35% tax abatement models. We also ran a model

662
00:50:09,150 --> 00:50:13,139
with construction sales and use tax only, and then we

663
00:50:13,139 --> 00:50:18,000
included the DME economic growth writer in all models.

664
00:50:18,000 --> 00:50:20,239
And I don't know if this is, I don't think this is

665
00:50:20,239 --> 00:50:23,019
something that I've talked with you board members about,

666
00:50:23,019 --> 00:50:25,500
and you may have heard about it in the past, but we're

667
00:50:25,500 --> 00:50:28,039
going to do a little refresher about what the economic

668
00:50:28,039 --> 00:50:30,000
growth writer is.

669
00:50:30,000 --> 00:50:33,690
When Denton Municipal Electric adopts, or when the City

670
00:50:33,690 --> 00:50:37,230
Council adopts the rate schedule for Denton Municipal

671
00:50:37,230 --> 00:50:41,139
Electric, there is a rate called the economic growth writer

672
00:50:41,139 --> 00:50:44,820
that's available to certain customers who meet a certain

673
00:50:44,820 --> 00:50:48,489
level of electric demand and whose load factor is greater

674
00:50:48,489 --> 00:50:51,000
than DME's system load factor.

675
00:50:51,000 --> 00:50:54,639
That just means there's a minimum threshold in a couple of

676
00:50:54,639 --> 00:50:58,329
areas that they have to meet. If they do meet that, their

677
00:50:58,329 --> 00:51:01,929
monthly billing demand is reduced on a sliding fee scale

678
00:51:01,929 --> 00:51:05,719
for five years, starting with 50% in year one and going

679
00:51:05,719 --> 00:51:08,000
down to 10% in year five.

680
00:51:08,000 --> 00:51:12,300
So every month there would be a discount to the bill. So

681
00:51:12,300 --> 00:51:16,230
that can, depending on electric usage, add up to a

682
00:51:16,230 --> 00:51:20,989
significant incentive for a company. And this is available

683
00:51:20,989 --> 00:51:25,670
to new customers and customers, existing customers adding

684
00:51:25,670 --> 00:51:27,000
new demand.

685
00:51:27,000 --> 00:51:28,000
Yes, ma'am.

686
00:51:28,000 --> 00:51:33,099
So is the monthly billing demand reduction, is that applied

687
00:51:33,099 --> 00:51:38,000
to the amount after that threshold or the total amount?

688
00:51:38,000 --> 00:51:39,000
It's the total amount.

689
00:51:39,000 --> 00:51:44,000
Okay, thank you.

690
00:51:44,000 --> 00:51:46,000
Did you have a question, Keel?

691
00:51:46,000 --> 00:51:48,000
Is it 50% off each month?

692
00:51:48,000 --> 00:51:55,000
Yes, in the first year, in year one.

693
00:51:55,000 --> 00:52:00,949
This is a summary chart of our analysis, and we started

694
00:52:00,949 --> 00:52:04,849
with some assumptions that we took from prior information

695
00:52:04,849 --> 00:52:08,000
that you guys saw in the slide presentation.

696
00:52:08,000 --> 00:52:12,170
And what we did was based on the current incentive policy,

697
00:52:12,170 --> 00:52:16,420
the level of investment that's being made, that equates to

698
00:52:16,420 --> 00:52:20,980
a six-year term, and we looked at this 25% abatement across

699
00:52:20,980 --> 00:52:27,000
a six-year term for a total of a little over $154,000 here.

700
00:52:27,000 --> 00:52:31,320
We also considered the construction sales and use tax reb

701
00:52:31,320 --> 00:52:35,659
ate, which is another tool that we have used on a couple of

702
00:52:35,659 --> 00:52:40,360
recent projects in the past, but the way that works is the

703
00:52:40,360 --> 00:52:45,000
company would source their construction and business

704
00:52:45,000 --> 00:52:49,000
personal property materials to Denton so that Denton would

705
00:52:49,000 --> 00:52:52,000
capture the sales tax that's associated with that.

706
00:52:52,000 --> 00:52:55,889
And then we would be able to rebate all or a portion of

707
00:52:55,889 --> 00:52:59,000
that because we captured it locally.

708
00:52:59,000 --> 00:53:03,000
So that equates to $132,000 in our estimate.

709
00:53:03,000 --> 00:53:06,650
And then there's the DME economic growth rider, which rolls

710
00:53:06,650 --> 00:53:09,940
out over five years, and in this case, based on demand

711
00:53:09,940 --> 00:53:14,000
estimates, would come out to about $300,000.

712
00:53:14,000 --> 00:53:20,530
And then, sorry, if we total all those up, that's $586,000

713
00:53:20,530 --> 00:53:25,000
kind of consideration that we have to work with.

714
00:53:25,000 --> 00:53:28,389
And then down there at the bottom, we show the net tax

715
00:53:28,389 --> 00:53:30,000
revenue to the city.

716
00:53:30,000 --> 00:53:34,010
And this is, again, just to the city, not into the TURS

717
00:53:34,010 --> 00:53:38,130
fund over those six years with that incentive scenario in

718
00:53:38,130 --> 00:53:39,000
place.

719
00:53:39,000 --> 00:53:41,000
Questions?

720
00:53:41,000 --> 00:53:42,000
Yes, ma'am.

721
00:53:42,000 --> 00:53:45,860
I do. About the economic growth rider, because I'm just now

722
00:53:45,860 --> 00:53:47,000
really learning about that.

723
00:53:47,000 --> 00:53:51,039
I knew that it was in our policy, but seeing it apply here,

724
00:53:51,039 --> 00:53:55,000
especially with a company who has extremely high use,

725
00:53:55,000 --> 00:53:59,599
I'm assuming that it's been evaluated and estimated that

726
00:53:59,599 --> 00:54:03,489
even with this, that will still cover the cost of our

727
00:54:03,489 --> 00:54:06,000
energy that we have to purchase.

728
00:54:06,000 --> 00:54:10,670
That's a calculation that's done on the DME side, and I don

729
00:54:10,670 --> 00:54:13,000
't want to speak for them.

730
00:54:13,000 --> 00:54:15,920
We have to contact them with the information about the

731
00:54:15,920 --> 00:54:19,000
usage that we get, and they make their calculation.

732
00:54:19,000 --> 00:54:22,300
So I would be glad to facilitate getting you an answer

733
00:54:22,300 --> 00:54:26,000
about that, but I cannot answer that question myself.

734
00:54:26,000 --> 00:54:29,670
So it is, even with the growth rider, are we covering the

735
00:54:29,670 --> 00:54:32,000
cost of provision of the energy?

736
00:54:32,000 --> 00:54:38,000
Okay, yeah, I will find out. Make a note real quick.

737
00:54:38,000 --> 00:54:43,099
Caroline, has U.S. Cold Storage looked at the electric

738
00:54:43,099 --> 00:54:47,000
calculations in agreement with the usage?

739
00:54:47,000 --> 00:54:49,730
They're reviewing all of that right now. Is that correct,

740
00:54:49,730 --> 00:54:51,000
Tim? Yes.

741
00:54:51,000 --> 00:54:53,239
They did their initial estimate when they made the

742
00:54:53,239 --> 00:54:56,000
application, but they're delving in further to that,

743
00:54:56,000 --> 00:55:00,000
and we've connected them with Den Municipal Electric to

744
00:55:00,000 --> 00:55:03,820
make sure they have the right folks to answer their

745
00:55:03,820 --> 00:55:05,000
questions.

746
00:55:05,000 --> 00:55:17,000
Any other questions?

747
00:55:17,000 --> 00:55:21,000
I'm sorry. Do you have a question before I move on?

748
00:55:21,000 --> 00:55:25,699
Yes, I needed some help reconciling the two numbers, please

749
00:55:25,699 --> 00:55:26,000
.

750
00:55:26,000 --> 00:55:29,219
I'm looking at the top incentives and the net revenue at

751
00:55:29,219 --> 00:55:33,219
the bottom, and I'm trying to understand what's going on

752
00:55:33,219 --> 00:55:34,000
there.

753
00:55:34,000 --> 00:55:39,030
Okay, so I had to do a little bit of squeezing onto one

754
00:55:39,030 --> 00:55:40,000
slide.

755
00:55:40,000 --> 00:55:45,949
So the revenue, the column says total, right? But the total

756
00:55:45,949 --> 00:55:51,000
for the net revenue is just that very bottom number,

757
00:55:51,000 --> 00:55:54,480
and then the total of the 25% abatement, the construction

758
00:55:54,480 --> 00:55:58,000
sales and use tax rebate, and the EGR, that totals to the $

759
00:55:58,000 --> 00:55:59,000
5.86.

760
00:55:59,000 --> 00:56:03,019
Is that what your question is? Incentives are benefits

761
00:56:03,019 --> 00:56:05,000
given to the company.

762
00:56:05,000 --> 00:56:10,000
Okay, so benefits given to the company are $5.86 to $9.98.

763
00:56:10,000 --> 00:56:14,000
Collections to the city are $5.48 to $9.40.

764
00:56:14,000 --> 00:56:16,000
It's after the $5.86.

765
00:56:16,000 --> 00:56:20,000
Right, that's the net that we're getting.

766
00:56:20,000 --> 00:56:22,000
So the gross number would be larger?

767
00:56:22,000 --> 00:56:23,000
Yes.

768
00:56:23,000 --> 00:56:25,000
Thank you. That's the missing piece.

769
00:56:25,000 --> 00:56:26,000
Okay.

770
00:56:26,000 --> 00:56:36,000
The gross number would be 700? The $154.998 to $5.48?

771
00:56:36,000 --> 00:56:39,000
It'd be the $5.86 plus the $5.48.

772
00:56:39,000 --> 00:56:40,000
Yeah.

773
00:56:40,000 --> 00:56:42,000
No.

774
00:56:42,000 --> 00:56:45,000
No, it's the $5.48 plus the $155.

775
00:56:45,000 --> 00:56:55,000
Yeah. The other two are immaterial to the city's revenue.

776
00:56:55,000 --> 00:56:58,000
So if they're immaterial, then why are they presented here?

777
00:56:58,000 --> 00:57:02,000
Because they'll be a benefit to the company.

778
00:57:02,000 --> 00:57:07,860
The 25% abatement is revenue we're giving back to them for

779
00:57:07,860 --> 00:57:13,000
ad-horm taxes on the building only, not the land.

780
00:57:13,000 --> 00:57:15,389
Right. So when we're talking about the city, this is

781
00:57:15,389 --> 00:57:19,440
revenue that would go into the general fund. That's general

782
00:57:19,440 --> 00:57:21,000
fund revenue.

783
00:57:21,000 --> 00:57:23,829
The construction sales and use tax rebate, we're

784
00:57:23,829 --> 00:57:27,730
considering that at 100%. So we wouldn't receive any

785
00:57:27,730 --> 00:57:30,000
revenue from that particular.

786
00:57:30,000 --> 00:57:33,929
If we were only considering 50%, there would be revenue

787
00:57:33,929 --> 00:57:35,000
shown there.

788
00:57:35,000 --> 00:57:37,920
But we're really only talking about the ad valorem value

789
00:57:37,920 --> 00:57:40,000
that would go into the general fund.

790
00:57:40,000 --> 00:57:46,159
So for year one, though, the estimated gross revenue to the

791
00:57:46,159 --> 00:57:52,159
city from taxes is $116,000. We're going to give them $26,

792
00:57:52,159 --> 00:57:54,000
000, and then that's $91,000.

793
00:57:54,000 --> 00:57:57,349
That's how that number has arrived. The other two are

794
00:57:57,349 --> 00:58:02,000
coming from the construction rebate and the DME rider.

795
00:58:02,000 --> 00:58:05,000
So help me with the DME rider again, please.

796
00:58:05,000 --> 00:58:06,000
What it is or how it's--

797
00:58:06,000 --> 00:58:07,000
Yes, please.

798
00:58:07,000 --> 00:58:10,260
Okay. So it's a reduction in the company's monthly demand

799
00:58:10,260 --> 00:58:14,280
billing. So they get their electric bill. It's reduced by

800
00:58:14,280 --> 00:58:15,000
half.

801
00:58:15,000 --> 00:58:19,119
The demand billing portion of the bill is reduced by half

802
00:58:19,119 --> 00:58:22,000
in the first year of the incentive.

803
00:58:22,000 --> 00:58:24,630
And then it goes down to being reduced by 40% in the second

804
00:58:24,630 --> 00:58:27,000
year, 30%, 20 and 10 in year five.

805
00:58:27,000 --> 00:58:28,000
Thank you.

806
00:58:28,000 --> 00:58:29,000
Yes.

807
00:58:29,000 --> 00:58:30,000
Yes, ma'am.

808
00:58:30,000 --> 00:58:33,000
Good questions. Anybody else?

809
00:58:33,000 --> 00:58:38,219
I have a question about the utilities again. Not

810
00:58:38,219 --> 00:58:41,809
necessarily electronic. I understand that question is going

811
00:58:41,809 --> 00:58:43,000
to be answered soon.

812
00:58:43,000 --> 00:58:51,179
But on the water usage, it says 7,000, like 722,000 GPM. Is

813
00:58:51,179 --> 00:58:55,139
that gallons per minute or how does--what does GPM mean? I

814
00:58:55,139 --> 00:58:57,000
have no idea.

815
00:58:57,000 --> 00:58:59,000
GPM is per month.

816
00:58:59,000 --> 00:59:02,679
Okay. And so on that, is that typical of an industrial user

817
00:59:02,679 --> 00:59:06,820
? I'm not really sure of the water usage and can our system

818
00:59:06,820 --> 00:59:08,000
handle that?

819
00:59:08,000 --> 00:59:12,449
That is well within our system's ability to handle it and

820
00:59:12,449 --> 00:59:16,900
how it compares to other industrial users that we have on

821
00:59:16,900 --> 00:59:19,000
our system currently.

822
00:59:19,000 --> 00:59:22,239
I can't answer that specifically for you, but that is not

823
00:59:22,239 --> 00:59:25,000
going to be any kind of burden on our system.

824
00:59:25,000 --> 00:59:27,440
That's good. I appreciate it being in the application just

825
00:59:27,440 --> 00:59:28,000
so I have some--

826
00:59:28,000 --> 00:59:32,730
Well, and thank you for mentioning that. That's a part of

827
00:59:32,730 --> 00:59:36,000
the application that we have recently changed and beefed up

828
00:59:36,000 --> 00:59:39,190
so that we can capture that information and share it with

829
00:59:39,190 --> 00:59:43,000
our utilities folks so that there are no surprises for them

830
00:59:43,000 --> 00:59:45,840
or, you know, that we can collaborate on looking at the

831
00:59:45,840 --> 00:59:47,000
project as a whole.

832
00:59:47,000 --> 00:59:52,710
What will the wastewater and the water usage be worth to

833
00:59:52,710 --> 00:59:54,000
the city?

834
00:59:54,000 --> 00:59:58,699
I'll have to get that information for you. We did not

835
00:59:58,699 --> 01:00:02,909
specifically run that for their cost and for the billing on

836
01:00:02,909 --> 01:00:07,110
that side of it because it's not significant enough that we

837
01:00:07,110 --> 01:00:11,210
would have to reach out to them for that, unlike the DME

838
01:00:11,210 --> 01:00:14,000
issue where there's a rider in play.

839
01:00:14,000 --> 01:00:16,500
That's why we asked them specifically. So if that's

840
01:00:16,500 --> 01:00:18,610
something you'd like me to check with our water and

841
01:00:18,610 --> 01:00:20,000
wastewater guys on, I can.

842
01:00:20,000 --> 01:00:23,150
I think we just need to recognize that it's an additional

843
01:00:23,150 --> 01:00:26,739
benefit to the city and revenue because it's a new business

844
01:00:26,739 --> 01:00:27,000
.

845
01:00:27,000 --> 01:00:30,780
Right. And the model, the total impact model, takes all of

846
01:00:30,780 --> 01:00:34,250
that into account. That's part of the reason why we wanted

847
01:00:34,250 --> 01:00:37,400
to have that model because there is a cost to providing

848
01:00:37,400 --> 01:00:41,869
those services, water and wastewater, but there's a benefit

849
01:00:41,869 --> 01:00:45,000
and offsetting billing that we're able to do.

850
01:00:45,000 --> 01:00:48,199
So that's why we like that model because it brings the

851
01:00:48,199 --> 01:00:50,000
whole picture together.

852
01:00:50,000 --> 01:00:53,000
Is the facility heavy water user?

853
01:00:53,000 --> 01:01:07,000
I don't believe that it is, but Tim says no.

854
01:01:07,000 --> 01:01:14,440
Okay. So Jim, Erica, she handed me sort of in the depth of

855
01:01:14,440 --> 01:01:18,059
our model, here's the page where it calculates all that. I

856
01:01:18,059 --> 01:01:21,000
don't know if you really want to see it, but it's here.

857
01:01:21,000 --> 01:01:24,630
And it's what goes into producing that one page summary of

858
01:01:24,630 --> 01:01:28,559
the project's cost and benefits. So the rates are put in

859
01:01:28,559 --> 01:01:32,860
the model and updated when they're changed with the budget

860
01:01:32,860 --> 01:01:34,000
each year.

861
01:01:34,000 --> 01:01:37,000
I think Tom has a question.

862
01:01:37,000 --> 01:01:39,000
Caroline.

863
01:01:39,000 --> 01:01:43,210
After serving on the on the public utility board for eight

864
01:01:43,210 --> 01:01:44,000
years.

865
01:01:44,000 --> 01:01:48,139
I was extremely impressed with how complex our financial

866
01:01:48,139 --> 01:01:52,610
operation as a city is. I think the average citizen doesn't

867
01:01:52,610 --> 01:01:56,530
appreciate what goes on here and what it takes to keep a

868
01:01:56,530 --> 01:01:59,000
city afloat and functioning.

869
01:01:59,000 --> 01:02:04,019
My question is this, and this is not a reflection on this

870
01:02:04,019 --> 01:02:09,000
particular company, but when giving incentives.

871
01:02:09,000 --> 01:02:13,940
Are we able to get a complete idea that we're not putting

872
01:02:13,940 --> 01:02:16,000
ourselves in the hole.

873
01:02:16,000 --> 01:02:19,690
Incentives to bring in new businesses are we satisfied that

874
01:02:19,690 --> 01:02:23,139
that is the result that we're achieving. That's why we

875
01:02:23,139 --> 01:02:26,519
wanted to develop a total impact model of our own that's

876
01:02:26,519 --> 01:02:30,199
fully customized to our city that takes into account all

877
01:02:30,199 --> 01:02:33,000
the municipal utilities that we provide and our franchise

878
01:02:33,000 --> 01:02:34,000
fees and all of that.

879
01:02:34,000 --> 01:02:37,619
That's all in the background. And, you know, that's

880
01:02:37,619 --> 01:02:41,110
important to us as a department to make sure that we're

881
01:02:41,110 --> 01:02:44,659
factoring all those things in so that when we look at the

882
01:02:44,659 --> 01:02:50,000
bottom line. What is the total benefit to the city.

883
01:02:50,000 --> 01:02:53,300
And that is not something that we were doing fully before

884
01:02:53,300 --> 01:02:56,659
we were able to get that model. So we still want to double

885
01:02:56,659 --> 01:02:59,739
check with our other methods. We want to talk to our

886
01:02:59,739 --> 01:03:03,179
departments. But what you're getting at is where we have

887
01:03:03,179 --> 01:03:04,000
moved.

888
01:03:04,000 --> 01:03:07,559
We're moving toward that and this program is a big part of

889
01:03:07,559 --> 01:03:10,000
it. Okay.

890
01:03:10,000 --> 01:03:14,110
So that was basically my question is that it's beautiful. I

891
01:03:14,110 --> 01:03:18,000
like it. It looks nice.

892
01:03:18,000 --> 01:03:20,250
But at the same time, we wouldn't make sure we pay our

893
01:03:20,250 --> 01:03:21,000
bills right.

894
01:03:21,000 --> 01:03:23,000
Absolutely.

895
01:03:23,000 --> 01:03:25,000
Well, that's where the net.

896
01:03:25,000 --> 01:03:28,920
After the incentives are given out in three different ways

897
01:03:28,920 --> 01:03:33,000
the net to us over six years is still $550,000.

898
01:03:33,000 --> 01:03:38,389
But my question was that we're receiving that but does that

899
01:03:38,389 --> 01:03:44,000
make sure that we don't have any deficiencies elsewhere.

900
01:03:44,000 --> 01:03:46,760
We feel confident that I mean, and that's what I wanted to

901
01:03:46,760 --> 01:03:47,000
hear.

902
01:03:47,000 --> 01:03:51,000
Would you like to.

903
01:03:51,000 --> 01:03:53,960
I think it's a great question. And that's really as

904
01:03:53,960 --> 01:03:56,800
Caroline said, where we're really trying to move is that we

905
01:03:56,800 --> 01:03:59,110
understand what is the not only the benefits of a

906
01:03:59,110 --> 01:04:01,869
development and that's frankly what we've looked at in the

907
01:04:01,869 --> 01:04:04,000
past is the benefit analysis.

908
01:04:04,000 --> 01:04:06,280
What are the costs of the development. What's the cost to

909
01:04:06,280 --> 01:04:09,000
serve. I think is maybe the root of your question, john.

910
01:04:09,000 --> 01:04:12,210
It's sometimes difficult to get that on the utility side,

911
01:04:12,210 --> 01:04:15,500
the rates are designed that we charge through our utilities

912
01:04:15,500 --> 01:04:18,000
are designed to recover all of our costs.

913
01:04:18,000 --> 01:04:20,530
So that's a fairly straightforward calculation for us as

914
01:04:20,530 --> 01:04:23,159
long as they're paying that rate, they're going to recover

915
01:04:23,159 --> 01:04:24,000
their costs.

916
01:04:24,000 --> 01:04:26,800
The tax side is a little bit more difficult because

917
01:04:26,800 --> 01:04:28,000
different users.

918
01:04:28,000 --> 01:04:32,000
Some can some can pay for their services and others don't.

919
01:04:32,000 --> 01:04:34,639
As a fact, you know, we've talked about last time as

920
01:04:34,639 --> 01:04:37,739
residential properties typically don't pay their property

921
01:04:37,739 --> 01:04:40,659
taxes they pay as a resident, they don't pay for all their

922
01:04:40,659 --> 01:04:43,789
services they consume commercial entities typically make up

923
01:04:43,789 --> 01:04:45,000
that difference.

924
01:04:45,000 --> 01:04:48,780
So, it's harder to get that in that model, the total impact

925
01:04:48,780 --> 01:04:51,619
model there's a way to try to calculate that and estimate

926
01:04:51,619 --> 01:04:54,650
that it's still a squishy number, it's not an exact science

927
01:04:54,650 --> 01:04:57,480
that we have down just yet but that we're trying to look at

928
01:04:57,480 --> 01:05:01,000
that and bring you back and really analysis that gives you

929
01:05:01,000 --> 01:05:01,000
all those

930
01:05:01,000 --> 01:05:04,000
components that's a technical term squishy.

931
01:05:04,000 --> 01:05:07,969
But, but it's difficult to get that down to an exact

932
01:05:07,969 --> 01:05:09,000
science.

933
01:05:09,000 --> 01:05:12,000
But that's what we've tried to bring you forward today.

934
01:05:12,000 --> 01:05:14,730
Hopefully that answers your question but the utility side

935
01:05:14,730 --> 01:05:17,300
if you're asking about those that's built into the rates

936
01:05:17,300 --> 01:05:20,000
the tax side is a little bit more difficult to assess.

937
01:05:20,000 --> 01:05:27,000
Thank you.

938
01:05:27,000 --> 01:05:29,000
All right, are we good on this one.

939
01:05:29,000 --> 01:05:39,000
I have a question for 10.

940
01:05:39,000 --> 01:05:43,019
We have a lot of really awesome companies in in some of

941
01:05:43,019 --> 01:05:47,599
them that aren't so awesome as far as community involvement

942
01:05:47,599 --> 01:05:48,000
.

943
01:05:48,000 --> 01:05:52,039
Is there an organization encouraged its employees and

944
01:05:52,039 --> 01:05:56,420
managers to be involved in civic clubs, rovers quantities

945
01:05:56,420 --> 01:06:01,000
holding out away campaigns join the Chamber of Commerce.

946
01:06:01,000 --> 01:06:03,730
Because if you answer yes to those I'm going to circle back

947
01:06:03,730 --> 01:06:06,000
around and make sure that you're doing that.

948
01:06:06,000 --> 01:06:07,000
Absolutely.

949
01:06:07,000 --> 01:06:11,639
I'd also like to mention, as he's on the presentation we

950
01:06:11,639 --> 01:06:15,000
store food as a majority of what we do.

951
01:06:15,000 --> 01:06:18,000
We're a huge donator to local food banks.

952
01:06:18,000 --> 01:06:20,849
As you can imagine there's a lot of our customers who

953
01:06:20,849 --> 01:06:22,000
donate product.

954
01:06:22,000 --> 01:06:25,409
Some of them donate their own product and some of them ask

955
01:06:25,409 --> 01:06:28,730
us to do the donations on their behalf so we are a huge don

956
01:06:28,730 --> 01:06:31,000
ator to to food banks in the area.

957
01:06:31,000 --> 01:06:38,949
That's just one of the, you know, civic organizations that

958
01:06:38,949 --> 01:06:43,000
we that we participate in.

959
01:06:43,000 --> 01:06:49,000
Wrap up the presentation with some key points.

960
01:06:49,000 --> 01:06:51,820
US cold storage is a leader in its field and it does make

961
01:06:51,820 --> 01:06:54,559
long term investments in the communities where its

962
01:06:54,559 --> 01:06:56,000
facilities are located.

963
01:06:56,000 --> 01:07:00,079
About 99% or more of its employees in the Denton facility

964
01:07:00,079 --> 01:07:03,000
will be full time and benefits eligible.

965
01:07:03,000 --> 01:07:07,699
Salaries are industry competitive and as we heard Tim say

966
01:07:07,699 --> 01:07:12,280
there's opportunity for overtime which could raise the

967
01:07:12,280 --> 01:07:14,000
average salary.

968
01:07:14,000 --> 01:07:18,130
The project does add significant new value and it is going

969
01:07:18,130 --> 01:07:22,000
to cause the TERS phase two improvements to initiate.

970
01:07:22,000 --> 01:07:25,949
The facility as projected at this point will be a top 25 DM

971
01:07:25,949 --> 01:07:27,000
E customer.

972
01:07:27,000 --> 01:07:30,070
The project is not one of our council designated target

973
01:07:30,070 --> 01:07:31,000
industries.

974
01:07:31,000 --> 01:07:35,000
The majority of the jobs are not high skilled.

975
01:07:35,000 --> 01:07:38,559
The incentive for development already exists in the area

976
01:07:38,559 --> 01:07:42,000
with the West Park TERS and a tax abatement will decrease

977
01:07:42,000 --> 01:07:45,000
the revenue that goes into the TERS fund for those

978
01:07:45,000 --> 01:07:49,000
infrastructure improvements in the area.

979
01:07:49,000 --> 01:07:52,000
You have several options in front of you today.

980
01:07:52,000 --> 01:07:55,000
The first one is to not offer an incentive.

981
01:07:55,000 --> 01:07:58,550
You can offer an abatement per policy guidelines, offer

982
01:07:58,550 --> 01:08:03,260
construction sales and use tax rebate or a combination of

983
01:08:03,260 --> 01:08:10,000
those or something else of your choosing as the EDP board.

984
01:08:10,000 --> 01:08:14,320
Since the area the project is in has already been incentiv

985
01:08:14,320 --> 01:08:16,000
ized via the TERS fund.

986
01:08:16,000 --> 01:08:19,159
Staff does not recommend the use of ad valorem tax

987
01:08:19,159 --> 01:08:21,000
incentives in this case.

988
01:08:21,000 --> 01:08:26,199
We do support the use of the $300,000 DME economic growth

989
01:08:26,199 --> 01:08:30,000
rider as allowed under the current utility policy.

990
01:08:30,000 --> 01:08:35,130
And that is an automatic, if they meet the demand threshold

991
01:08:35,130 --> 01:08:40,159
, that's something that they will automatically receive

992
01:08:40,159 --> 01:08:42,000
under the policy.

993
01:08:42,000 --> 01:08:48,000
And now is the time for board's discussion.

994
01:08:48,000 --> 01:08:54,949
So some of the longer tenure board members remember that we

995
01:08:54,949 --> 01:09:01,789
normally go into a closed session to discuss the incentive

996
01:09:01,789 --> 01:09:03,000
options.

997
01:09:03,000 --> 01:09:07,000
But most of those have been super secret.

998
01:09:07,000 --> 01:09:10,000
Companies that haven't negotiated things.

999
01:09:10,000 --> 01:09:14,079
They're still looking at other communities to move into and

1000
01:09:14,079 --> 01:09:18,000
the two that we have today are not under that category.

1001
01:09:18,000 --> 01:09:21,779
So we're wide open to get to talk if there's anything that

1002
01:09:21,779 --> 01:09:25,329
I guess we feel like we need to go into a closed session

1003
01:09:25,329 --> 01:09:26,000
for.

1004
01:09:26,000 --> 01:09:30,310
We'll make sure that that meets the criteria before we do

1005
01:09:30,310 --> 01:09:31,000
that.

1006
01:09:31,000 --> 01:09:35,800
But so we're so this is the time to discuss that and then

1007
01:09:35,800 --> 01:09:41,000
we'll come back I guess after our work session to actually

1008
01:09:41,000 --> 01:09:42,000
vote or take a recommendation.

1009
01:09:42,000 --> 01:09:44,000
So this is just for discussion purposes.

1010
01:09:44,000 --> 01:09:46,000
We'll come back in our actual meeting.

1011
01:09:46,000 --> 01:09:47,000
We're still in a work session.

1012
01:09:47,000 --> 01:09:49,819
We'll come back in the meeting and entertain any motions on

1013
01:09:49,819 --> 01:09:51,000
either one of them.

1014
01:09:51,000 --> 01:09:53,000
So this is discussion time.

1015
01:09:53,000 --> 01:09:58,000
Anybody has any more comments or questions?

1016
01:09:58,000 --> 01:10:02,119
For clarification on the options and so then looking back

1017
01:10:02,119 --> 01:10:04,000
at staff recommendation.

1018
01:10:04,000 --> 01:10:08,000
Staff recommendation is number one.

1019
01:10:08,000 --> 01:10:11,140
But with the electric because that's not considered

1020
01:10:11,140 --> 01:10:13,000
necessarily an incentive.

1021
01:10:13,000 --> 01:10:14,000
Right.

1022
01:10:14,000 --> 01:10:18,449
It is an incentive but it's it's an automatic incentive if

1023
01:10:18,449 --> 01:10:21,000
the demand billing is is met.

1024
01:10:21,000 --> 01:10:22,000
Met.

1025
01:10:22,000 --> 01:10:23,000
The threshold is met.

1026
01:10:23,000 --> 01:10:24,000
Yes.

1027
01:10:24,000 --> 01:10:26,000
Okay.

1028
01:10:26,000 --> 01:10:28,000
You said number one.

1029
01:10:28,000 --> 01:10:29,000
Right.

1030
01:10:29,000 --> 01:10:31,000
Right here.

1031
01:10:31,000 --> 01:10:36,000
The incentive that staff is recommending is the.

1032
01:10:36,000 --> 01:10:38,000
Staff is recommending number one.

1033
01:10:38,000 --> 01:10:40,000
Correct.

1034
01:10:40,000 --> 01:10:42,930
I think I should have rephrased number one to say no ad val

1035
01:10:42,930 --> 01:10:44,000
orem incentive.

1036
01:10:44,000 --> 01:10:45,000
Right.

1037
01:10:45,000 --> 01:10:46,000
That's essentially right.

1038
01:10:46,000 --> 01:10:47,000
Okay.

1039
01:10:47,000 --> 01:10:48,000
Thank you.

1040
01:10:48,000 --> 01:10:51,000
So this is a little different because it's in the TURS.

1041
01:10:51,000 --> 01:10:54,229
So if we do an ad valorem incentive and take money rebate

1042
01:10:54,229 --> 01:10:56,000
that back that money doesn't

1043
01:10:56,000 --> 01:10:58,810
go into the to the TURS fund to help repay for the

1044
01:10:58,810 --> 01:11:01,000
infrastructure that's been put in

1045
01:11:01,000 --> 01:11:02,000
place there.

1046
01:11:02,000 --> 01:11:05,289
So that's where we've had some discussions in the past on

1047
01:11:05,289 --> 01:11:07,000
other projects that were not

1048
01:11:07,000 --> 01:11:08,000
in the TURS.

1049
01:11:08,000 --> 01:11:11,369
This we already have an incentive program going into that

1050
01:11:11,369 --> 01:11:13,000
land area through the TURS.

1051
01:11:13,000 --> 01:11:17,710
So there's already an incentive there that theoretically is

1052
01:11:17,710 --> 01:11:19,000
passed on to the.

1053
01:11:19,000 --> 01:11:21,000
Right.

1054
01:11:21,000 --> 01:11:23,399
And that I think maybe it's important to clarify that that

1055
01:11:23,399 --> 01:11:26,000
as Marty said theoretically that

1056
01:11:26,000 --> 01:11:30,840
that incentive is passed through to an end user who would

1057
01:11:30,840 --> 01:11:36,000
purchase the land in the TURS.

1058
01:11:36,000 --> 01:11:44,000
What distinguishes this to be different than WINCO?

1059
01:11:44,000 --> 01:11:48,000
It's a similar project.

1060
01:11:48,000 --> 01:11:51,000
U.S. cold serves different clients.

1061
01:11:51,000 --> 01:11:55,000
WINCO is serving its own grocery stores.

1062
01:11:55,000 --> 01:11:58,760
The WINCO project I mean their their footprint is larger

1063
01:11:58,760 --> 01:12:01,000
than this footprint would be.

1064
01:12:01,000 --> 01:12:04,000
I mean they're over 800,000 square feet.

1065
01:12:04,000 --> 01:12:08,000
This project would be two hundred and five.

1066
01:12:08,000 --> 01:12:09,000
Phase one.

1067
01:12:09,000 --> 01:12:10,000
Phase one.

1068
01:12:10,000 --> 01:12:14,779
But it is again because the company hasn't made the final

1069
01:12:14,779 --> 01:12:17,000
decisions about how this project

1070
01:12:17,000 --> 01:12:20,000
is going to roll out exactly.

1071
01:12:20,000 --> 01:12:24,000
There could be phased development and it could be larger.

1072
01:12:24,000 --> 01:12:28,000
So phase one is two hundred and five thousand square feet.

1073
01:12:28,000 --> 01:12:31,000
What could be the largest potential facility?

1074
01:12:31,000 --> 01:12:32,000
Okay.

1075
01:12:32,000 --> 01:12:35,819
So he says Dallas is five hundred and twenty thousand

1076
01:12:35,819 --> 01:12:37,000
square feet.

1077
01:12:37,000 --> 01:12:46,000
So it could be could be larger.

1078
01:12:46,000 --> 01:12:53,729
The example that was used here showed a 25 percent abat

1079
01:12:53,729 --> 01:12:57,000
ement as the example.

1080
01:12:57,000 --> 01:13:00,000
Why was that chosen rather than 30 or 40?

1081
01:13:00,000 --> 01:13:03,000
I'm sorry rather than 30 or 35.

1082
01:13:03,000 --> 01:13:05,000
Why was that shown as the example?

1083
01:13:05,000 --> 01:13:09,000
That's the minimum amount.

1084
01:13:09,000 --> 01:13:11,609
I mean that's the amount that they would qualify for based

1085
01:13:11,609 --> 01:13:13,000
on their capital investment.

1086
01:13:13,000 --> 01:13:18,000
And then just basic without any of the additional factors.

1087
01:13:18,000 --> 01:13:20,000
So that's why we showed that one.

1088
01:13:20,000 --> 01:13:23,090
So under the information that's been presented they would

1089
01:13:23,090 --> 01:13:27,000
not qualify for the 30 percent or the 35 percent?

1090
01:13:27,000 --> 01:13:31,739
They did they did check additional factors in their

1091
01:13:31,739 --> 01:13:33,000
application.

1092
01:13:33,000 --> 01:13:36,430
And they could have significant capital investment is one

1093
01:13:36,430 --> 01:13:38,000
of the additional factors.

1094
01:13:38,000 --> 01:13:41,199
And then local hiring was one of the other additional

1095
01:13:41,199 --> 01:13:45,000
factors that they would qualify for in their application.

1096
01:13:45,000 --> 01:13:50,439
And I have the figures per year for 30 and 35 percent like

1097
01:13:50,439 --> 01:13:54,000
what what the rebate would be per year.

1098
01:13:54,000 --> 01:13:57,449
Ultimately the recommendation was not going to be for ad

1099
01:13:57,449 --> 01:13:59,000
valorem incentives.

1100
01:13:59,000 --> 01:14:03,739
So in the interest of brevity in the presentation we showed

1101
01:14:03,739 --> 01:14:05,000
the 25.

1102
01:14:05,000 --> 01:14:07,180
If you would like us to do that differently in the future

1103
01:14:07,180 --> 01:14:08,000
we'd be glad to.

1104
01:14:08,000 --> 01:14:11,630
I just wanted to know what your mindset was or you know why

1105
01:14:11,630 --> 01:14:14,000
show 25 rather than 35.

1106
01:14:14,000 --> 01:14:16,000
It's because it's the policy minimum.

1107
01:14:16,000 --> 01:14:18,829
Policy minimum and they didn't qualify for the for the

1108
01:14:18,829 --> 01:14:20,000
higher ones right?

1109
01:14:20,000 --> 01:14:22,000
They could.

1110
01:14:22,000 --> 01:14:23,000
They could but they did.

1111
01:14:23,000 --> 01:14:24,000
Yes.

1112
01:14:24,000 --> 01:14:27,250
But we weren't going to recommend the ad valorem part and I

1113
01:14:27,250 --> 01:14:29,000
was trying to get it on the slide.

1114
01:14:29,000 --> 01:14:33,380
So we can do it differently next time if that would be

1115
01:14:33,380 --> 01:14:35,000
better for you.

1116
01:14:35,000 --> 01:14:37,000
Keeley.

1117
01:14:37,000 --> 01:14:42,000
So my I'm good with your recommendation.

1118
01:14:42,000 --> 01:14:47,050
My my concern still is the utility usage to make sure that

1119
01:14:47,050 --> 01:14:52,000
that is going to be we're going to recover our costs.

1120
01:14:52,000 --> 01:14:57,000
We have a lot of discussion about energy lately in our city

1121
01:14:57,000 --> 01:14:57,000
.

1122
01:14:57,000 --> 01:15:04,000
And in making sure that our rates for our customers stay.

1123
01:15:04,000 --> 01:15:06,000
Stay affordable.

1124
01:15:06,000 --> 01:15:07,000
Affordable.

1125
01:15:07,000 --> 01:15:08,000
Yes.

1126
01:15:08,000 --> 01:15:11,880
And just making sure that the residential customers aren't

1127
01:15:11,880 --> 01:15:15,520
going to be making up for the amount that these people use

1128
01:15:15,520 --> 01:15:17,000
but don't pay for.

1129
01:15:17,000 --> 01:15:21,140
So I just want to make sure that that's not going to be an

1130
01:15:21,140 --> 01:15:22,000
issue.

1131
01:15:22,000 --> 01:15:26,720
And also so I'm assuming after the six years because that's

1132
01:15:26,720 --> 01:15:30,000
how long it's recommended for right.

1133
01:15:30,000 --> 01:15:33,250
The DME incentive will be for five years because that's

1134
01:15:33,250 --> 01:15:36,000
what their policy is for the growth rider.

1135
01:15:36,000 --> 01:15:37,000
So it's not six.

1136
01:15:37,000 --> 01:15:38,000
Okay.

1137
01:15:38,000 --> 01:15:39,000
No ma'am.

1138
01:15:39,000 --> 01:15:41,000
So after that then everything will.

1139
01:15:41,000 --> 01:15:42,000
Yes.

1140
01:15:42,000 --> 01:15:43,000
Will be the same.

1141
01:15:43,000 --> 01:15:47,000
So Jessica Rogers from DME is here in the room.

1142
01:15:47,000 --> 01:15:50,789
If you would like her to come up and address the question

1143
01:15:50,789 --> 01:15:53,000
that you have now.

1144
01:15:53,000 --> 01:15:54,000
Sure.

1145
01:15:54,000 --> 01:15:55,000
That'd be great.

1146
01:15:55,000 --> 01:15:56,000
Okay Jessica.

1147
01:15:56,000 --> 01:15:59,840
Jessica looks excited to come up on television in front of

1148
01:15:59,840 --> 01:16:01,000
our audience.

1149
01:16:01,000 --> 01:16:02,000
She's thrilled.

1150
01:16:02,000 --> 01:16:05,000
This is new for me to understand.

1151
01:16:05,000 --> 01:16:08,550
So going forward if we have it as a recommendation I'd like

1152
01:16:08,550 --> 01:16:09,000
to know.

1153
01:16:09,000 --> 01:16:10,000
Sure.

1154
01:16:10,000 --> 01:16:13,000
So Jessica Rogers now formerly of DME.

1155
01:16:13,000 --> 01:16:16,989
I actually now work in the city manager's office again but

1156
01:16:16,989 --> 01:16:20,000
I was handling this program until about a month ago.

1157
01:16:20,000 --> 01:16:25,000
So Councilmember we do not lose money on this.

1158
01:16:25,000 --> 01:16:27,529
So when we actually this is just on the demand side of the

1159
01:16:27,529 --> 01:16:28,000
bill.

1160
01:16:28,000 --> 01:16:31,399
So the great example that we use on this is when you go to

1161
01:16:31,399 --> 01:16:34,000
the mall they have a huge parking lot.

1162
01:16:34,000 --> 01:16:35,000
Right.

1163
01:16:35,000 --> 01:16:38,729
It's because they have to accommodate for their peak period

1164
01:16:38,729 --> 01:16:39,000
.

1165
01:16:39,000 --> 01:16:42,000
And so demand is that part of the electric bill.

1166
01:16:42,000 --> 01:16:45,000
Making sure that the system can handle their peak demand.

1167
01:16:45,000 --> 01:16:48,000
The largest amount that they're going to have to.

1168
01:16:48,000 --> 01:16:50,420
The largest amount of electricity that they're going to

1169
01:16:50,420 --> 01:16:51,000
consume.

1170
01:16:51,000 --> 01:16:53,979
It doesn't affect the consumption charge which is that

1171
01:16:53,979 --> 01:16:55,000
energy charge.

1172
01:16:55,000 --> 01:16:57,850
They'll be on a regular rate in terms of the energy charge

1173
01:16:57,850 --> 01:17:00,000
in terms of their consumption charge.

1174
01:17:00,000 --> 01:17:01,000
None of that changes.

1175
01:17:01,000 --> 01:17:03,000
It's just on the demand charge.

1176
01:17:03,000 --> 01:17:06,550
And this is a significant to put it in perspective to

1177
01:17:06,550 --> 01:17:10,000
qualify for to be on a general service large rate.

1178
01:17:10,000 --> 01:17:13,000
Your demand that you have to meet is 250 KVA.

1179
01:17:13,000 --> 01:17:15,560
To qualify for the economic growth rider it's four times

1180
01:17:15,560 --> 01:17:16,000
that.

1181
01:17:16,000 --> 01:17:18,000
It's 1000 KVA.

1182
01:17:18,000 --> 01:17:21,329
So our largest of the largest customers are in that

1183
01:17:21,329 --> 01:17:24,000
economic growth rider perspective.

1184
01:17:24,000 --> 01:17:26,000
Thank you.

1185
01:17:26,000 --> 01:17:27,000
Anyone else?

1186
01:17:27,000 --> 01:17:30,000
Sorry.

1187
01:17:30,000 --> 01:17:31,000
Jill has a question.

1188
01:17:31,000 --> 01:17:32,000
No I have a comment.

1189
01:17:32,000 --> 01:17:33,000
Okay she has a comment.

1190
01:17:33,000 --> 01:17:34,000
Just a general comment.

1191
01:17:34,000 --> 01:17:35,000
Not for you in particular.

1192
01:17:35,000 --> 01:17:36,000
Okay.

1193
01:17:36,000 --> 01:17:39,000
Is that okay?

1194
01:17:39,000 --> 01:17:42,899
What I'm seeing at this point in time just for the sake of

1195
01:17:42,899 --> 01:17:47,000
discussion is on the pro side incentivizing this company

1196
01:17:47,000 --> 01:17:50,210
that we would like to capture here in Denton County the

1197
01:17:50,210 --> 01:17:53,000
things that stand out to me are because of responsible

1198
01:17:53,000 --> 01:17:54,000
energy use.

1199
01:17:54,000 --> 01:17:57,829
Because of the full time employees that are going to be

1200
01:17:57,829 --> 01:18:01,310
locally sourced with benefits and the community

1201
01:18:01,310 --> 01:18:05,579
participation for such a company with their history versus

1202
01:18:05,579 --> 01:18:09,460
it taking longer to pay back the abatements for the TURS

1203
01:18:09,460 --> 01:18:11,000
improvements.

1204
01:18:11,000 --> 01:18:14,289
I mean in my mind at least that's what it's kind of coming

1205
01:18:14,289 --> 01:18:15,000
down to.

1206
01:18:15,000 --> 01:18:21,000
But I would love to hear being a newer member of this group

1207
01:18:21,000 --> 01:18:22,000
.

1208
01:18:22,000 --> 01:18:26,699
Because in my mind right now I'm voting for a 25% abatement

1209
01:18:26,699 --> 01:18:27,000
.

1210
01:18:27,000 --> 01:18:31,460
Because for me how I'm seeing it boiled down to the pros

1211
01:18:31,460 --> 01:18:35,619
are outweighing the cons but I'm interested in the

1212
01:18:35,619 --> 01:18:37,000
discussion.

1213
01:18:37,000 --> 01:18:42,000
I just wanted to where I am.

1214
01:18:42,000 --> 01:18:45,000
Everyone's in agreement with me, obviously.

1215
01:18:45,000 --> 01:18:48,869
So I'm going to go ahead and make my motion and we can all

1216
01:18:48,869 --> 01:18:50,000
go to lunch.

1217
01:18:50,000 --> 01:18:52,000
Happy Valentine's Day once again everyone.

1218
01:18:52,000 --> 01:18:55,000
Thanks for coming.

1219
01:18:55,000 --> 01:19:00,239
I think the difference is that it doesn't mean our target

1220
01:19:00,239 --> 01:19:04,350
market and the wages are the kind of wages we're trying to

1221
01:19:04,350 --> 01:19:06,000
attract to Denton.

1222
01:19:06,000 --> 01:19:11,539
I think my concern is this target market is we gave

1223
01:19:11,539 --> 01:19:15,979
incentives to Target, to Aldi and to WENCO and they're all

1224
01:19:15,979 --> 01:19:17,000
the same.

1225
01:19:17,000 --> 01:19:20,409
Why do we do that and not this and what are we saying with

1226
01:19:20,409 --> 01:19:21,000
that?

1227
01:19:21,000 --> 01:19:24,449
Those companies, and I'm not arguing with them, I'm just

1228
01:19:24,449 --> 01:19:27,000
saying they also fronted the cost of putting in

1229
01:19:27,000 --> 01:19:30,560
infrastructure into the city and we're reimbursing them for

1230
01:19:30,560 --> 01:19:31,000
that.

1231
01:19:31,000 --> 01:19:34,000
They put in roads and utilities.

1232
01:19:34,000 --> 01:19:36,000
That's what they're reimbursing for.

1233
01:19:36,000 --> 01:19:38,000
So if we didn't have Target...

1234
01:19:38,000 --> 01:19:40,199
We would have still had to have done that through the TURS

1235
01:19:40,199 --> 01:19:41,000
no matter what.

1236
01:19:41,000 --> 01:19:43,000
Well we didn't have the TURS.

1237
01:19:43,000 --> 01:19:45,000
We did when we had WENCO.

1238
01:19:45,000 --> 01:19:46,000
WENCO, yeah.

1239
01:19:46,000 --> 01:19:50,000
Aldi and Target were two different things.

1240
01:19:50,000 --> 01:19:53,340
They were going to have the TURS and I'm not sure if they

1241
01:19:53,340 --> 01:19:55,000
were in it.

1242
01:19:55,000 --> 01:19:56,000
No.

1243
01:19:56,000 --> 01:20:02,000
They put in roads and infrastructure and we reimbursed them

1244
01:20:02,000 --> 01:20:03,000
for those.

1245
01:20:03,000 --> 01:20:06,869
And then Aldi would fall off the face of the earth and

1246
01:20:06,869 --> 01:20:09,000
doesn't talk to anybody.

1247
01:20:09,000 --> 01:20:13,409
Jim, can I clarify, so is your point being we've already

1248
01:20:13,409 --> 01:20:19,060
incentivized these non-Target groups therefore going down

1249
01:20:19,060 --> 01:20:22,659
that road or you're saying what message does it send to

1250
01:20:22,659 --> 01:20:25,369
then not incentivize this group that is similar to these

1251
01:20:25,369 --> 01:20:27,000
that we've done before?

1252
01:20:27,000 --> 01:20:29,819
I think there's a couple, in my opinion, there's a couple

1253
01:20:29,819 --> 01:20:31,000
of things going on.

1254
01:20:31,000 --> 01:20:33,920
We're focusing very hard on what the rate of pay is going

1255
01:20:33,920 --> 01:20:36,789
to be and I think the market is going to dictate what the

1256
01:20:36,789 --> 01:20:39,659
rate of pay is going to be and it's probably going to end

1257
01:20:39,659 --> 01:20:43,000
up being higher than what they're predicting right now.

1258
01:20:43,000 --> 01:20:46,060
$15 an hour, then you've got overtime on top of that and

1259
01:20:46,060 --> 01:20:49,000
right around the corner we're paying over $30.

1260
01:20:49,000 --> 01:20:55,500
I'm sure WENCO is paying more than $15 and I'm sure Target

1261
01:20:55,500 --> 01:20:57,000
is as well.

1262
01:20:57,000 --> 01:21:01,609
The other thing is, is you're talking about over a six year

1263
01:21:01,609 --> 01:21:06,260
period of time, you're talking about a difference of $155,

1264
01:21:06,260 --> 01:21:07,000
000.

1265
01:21:07,000 --> 01:21:15,000
Which to me is not that big a deal.

1266
01:21:15,000 --> 01:21:18,000
For them to lose out on or for the city?

1267
01:21:18,000 --> 01:21:20,000
For the city to give up.

1268
01:21:20,000 --> 01:21:25,159
I think $155,000 for what you're getting and you get the

1269
01:21:25,159 --> 01:21:30,760
infrastructure for Jim Crystal Road as well, which is

1270
01:21:30,760 --> 01:21:34,819
another critical piece for that area out there in order to

1271
01:21:34,819 --> 01:21:39,000
continue some of the development that needs to be done.

1272
01:21:39,000 --> 01:21:42,000
Are they providing infrastructure?

1273
01:21:42,000 --> 01:21:45,550
The costs in here don't include any infrastructure to the

1274
01:21:45,550 --> 01:21:47,000
public roads.

1275
01:21:47,000 --> 01:21:51,640
Okay, so there is an arrangement that is being made between

1276
01:21:51,640 --> 01:21:58,119
the engineering department and the company to provide a

1277
01:21:58,119 --> 01:22:04,390
drainage improvement in front of their property in lieu of

1278
01:22:04,390 --> 01:22:07,000
roadway impact fees.

1279
01:22:07,000 --> 01:22:08,000
That they would pay for.

1280
01:22:08,000 --> 01:22:13,000
It's an exchange. They'll pay for the drainage project in

1281
01:22:13,000 --> 01:22:18,000
lieu of roadway impact fees that would normally be owed.

1282
01:22:18,000 --> 01:22:23,000
So it's just kind of...

1283
01:22:23,000 --> 01:22:28,800
That's a side deal. I mean, not a side deal, but that's an

1284
01:22:28,800 --> 01:22:31,579
arrangement that's been made between the company and the

1285
01:22:31,579 --> 01:22:37,000
city, independent of this discussion.

1286
01:22:37,000 --> 01:22:42,289
Are we allowed to ask if the company is dependent upon the

1287
01:22:42,289 --> 01:22:46,000
25% abatement for coming here?

1288
01:22:46,000 --> 01:22:54,000
Sure, and I'm going to let Tim answer that question.

1289
01:22:54,000 --> 01:22:57,560
So in terms of are we dependent on that money, at this

1290
01:22:57,560 --> 01:23:02,000
point, as was presented, we've closed on the property.

1291
01:23:02,000 --> 01:23:04,779
The next thing it has to do is we have to take this entire

1292
01:23:04,779 --> 01:23:08,270
project, our P&L, our projected P&L, along with any sort of

1293
01:23:08,270 --> 01:23:11,670
incentives to our board of directors or the SWIRE board in

1294
01:23:11,670 --> 01:23:15,000
London to get approval for the construction money.

1295
01:23:15,000 --> 01:23:18,949
So obviously, if you're familiar with how things work over

1296
01:23:18,949 --> 01:23:22,909
there, obviously any sort of community support goes a long

1297
01:23:22,909 --> 01:23:27,000
way in terms of them authorizing the construction money.

1298
01:23:27,000 --> 01:23:32,100
We have various projects across the United States. We

1299
01:23:32,100 --> 01:23:35,430
obviously would love to be here in Denton, and hopefully I

1300
01:23:35,430 --> 01:23:38,000
answered your question.

1301
01:23:38,000 --> 01:23:41,710
I'm not trying to circle around the bandwagon, but I don't

1302
01:23:41,710 --> 01:23:43,000
want to sit here.

1303
01:23:43,000 --> 01:23:47,039
Have you, in other communities that you work with, I guess

1304
01:23:47,039 --> 01:23:51,159
because we're a municipally-owned utility, we have our own

1305
01:23:51,159 --> 01:23:55,229
electrical department, which makes us unique to be able to

1306
01:23:55,229 --> 01:23:57,850
provide this rider. Have you had any experience with that

1307
01:23:57,850 --> 01:24:00,000
in the past? I think it's pretty significant.

1308
01:24:00,000 --> 01:24:03,939
Not with the growth rider, no. We've done projects in other

1309
01:24:03,939 --> 01:24:07,840
communities and gotten tax incentives and tax abatement

1310
01:24:07,840 --> 01:24:09,000
incentives.

1311
01:24:09,000 --> 01:24:10,000
For utility use?

1312
01:24:10,000 --> 01:24:14,000
No, aside from utilities.

1313
01:24:14,000 --> 01:24:17,289
I have a question, sir, about the actual construction

1314
01:24:17,289 --> 01:24:23,720
project. So you hire a construction company, and any way

1315
01:24:23,720 --> 01:24:27,000
for some of those dollars to recirculate here?

1316
01:24:27,000 --> 01:24:30,289
Yes, we obviously have a general contractor. There's only a

1317
01:24:30,289 --> 01:24:33,399
select few general contractors in the United States that do

1318
01:24:33,399 --> 01:24:36,340
the type of work for this facility, but then they sub out

1319
01:24:36,340 --> 01:24:39,520
the majority of work, all their concrete work, electrical

1320
01:24:39,520 --> 01:24:42,000
and things like that to subcontractors.

1321
01:24:42,000 --> 01:24:43,000
In the area?

1322
01:24:43,000 --> 01:24:46,560
Yes, and I don't know if this is factored into the economic

1323
01:24:46,560 --> 01:24:49,750
impact analysis, but they rent hotel rooms and they

1324
01:24:49,750 --> 01:24:53,029
basically move here during construction to build the

1325
01:24:53,029 --> 01:24:54,000
facility.

1326
01:24:54,000 --> 01:25:00,000
So a project of this size is anticipated to take how long?

1327
01:25:00,000 --> 01:25:05,000
We would like to shoot for six months, six to eight months.

1328
01:25:05,000 --> 01:25:08,000
Which probably means about nine months.

1329
01:25:08,000 --> 01:25:11,000
Six to eight months.

1330
01:25:11,000 --> 01:25:14,319
No, we have to see, I mean, there's things to, you know,

1331
01:25:14,319 --> 01:25:18,000
ways that we can help expedite things, and that's our plan.

1332
01:25:18,000 --> 01:25:19,000
I understand.

1333
01:25:19,000 --> 01:25:21,000
And I understand your comment as well.

1334
01:25:21,000 --> 01:25:24,479
The cost numbers that we're looking at is just for phase

1335
01:25:24,479 --> 01:25:25,000
one?

1336
01:25:25,000 --> 01:25:26,000
Is that?

1337
01:25:26,000 --> 01:25:28,649
That's conservative. That's, yes, that would just be phase

1338
01:25:28,649 --> 01:25:29,000
one.

1339
01:25:29,000 --> 01:25:32,060
Okay, so there's a chance if business is better or whatever

1340
01:25:32,060 --> 01:25:34,000
the circumstances are you add on?

1341
01:25:34,000 --> 01:25:36,729
Yes, sir. Yes, sir, that's correct. If you look at the

1342
01:25:36,729 --> 01:25:39,449
facility in Dallas, there's three sections. The middle

1343
01:25:39,449 --> 01:25:41,960
phase was our phase one in Dallas. We've since built two

1344
01:25:41,960 --> 01:25:43,000
additional phases.

1345
01:25:43,000 --> 01:25:47,850
That was construction began in 2013. All three phases were

1346
01:25:47,850 --> 01:25:52,609
built by the beginning of this past year, beginning of 2017

1347
01:25:52,609 --> 01:25:53,000
.

1348
01:25:53,000 --> 01:25:56,100
I have a question for Caroline. So if they did come and add

1349
01:25:56,100 --> 01:26:00,909
on, could they apply for an incentive for that new growth

1350
01:26:00,909 --> 01:26:02,000
project?

1351
01:26:02,000 --> 01:26:05,000
Companies can apply for expansion incentives.

1352
01:26:05,000 --> 01:26:06,000
Right, okay.

1353
01:26:06,000 --> 01:26:11,000
Yes.

1354
01:26:11,000 --> 01:26:13,000
Any more discussion?

1355
01:26:13,000 --> 01:26:16,000
Our work session. Let's move on to our next applicant.

1356
01:26:16,000 --> 01:26:22,000
Okay.

1357
01:26:22,000 --> 01:26:26,000
I guess I need to.

1358
01:26:26,000 --> 01:26:35,399
EDP number 18-12 received a report and hold a discussion

1359
01:26:35,399 --> 01:26:54,000
regarding incentive application for Fisher 59.

1360
01:26:54,000 --> 01:26:58,659
All right. So we are going to present information and

1361
01:26:58,659 --> 01:27:02,460
facilitate discussion on an incentive request from Fisher

1362
01:27:02,460 --> 01:27:03,000
59.

1363
01:27:03,000 --> 01:27:05,920
And we do have quite a contingent from the company here in

1364
01:27:05,920 --> 01:27:10,199
the room with us. And I appreciate you guys patience

1365
01:27:10,199 --> 01:27:14,000
through the prior part of the meeting.

1366
01:27:14,000 --> 01:27:17,060
And I'm sure you'll have an opportunity, somebody will have

1367
01:27:17,060 --> 01:27:19,000
an opportunity to come up and talk.

1368
01:27:19,000 --> 01:27:25,449
Okay. So for those of you who are not familiar with Fisher

1369
01:27:25,449 --> 01:27:27,520
59, it distributes Miller Coors beverage brands to about 40

1370
01:27:27,520 --> 01:27:30,000
counties in North Texas and southern Oklahoma.

1371
01:27:30,000 --> 01:27:33,010
And this is a Denton company. It's family owned and

1372
01:27:33,010 --> 01:27:35,000
operated with its headquarters here.

1373
01:27:35,000 --> 01:27:39,670
It employs about 148 folks locally and does more than $120

1374
01:27:39,670 --> 01:27:42,000
million in business annually.

1375
01:27:42,000 --> 01:27:46,550
And as a family business, it was started by Clyde Fisher

1376
01:27:46,550 --> 01:27:51,680
and Munster in 1959 and then has expanded across North

1377
01:27:51,680 --> 01:27:55,600
Texas and in southern Oklahoma in the early 80s and has

1378
01:27:55,600 --> 01:27:59,000
been operating since that time.

1379
01:27:59,000 --> 01:28:02,430
They do have a current site in Denton, which many of you

1380
01:28:02,430 --> 01:28:06,000
are probably familiar with where this is, on 35.

1381
01:28:06,000 --> 01:28:11,090
But their current facility consists of about 85,000 square

1382
01:28:11,090 --> 01:28:14,939
feet of warehouse and office between two buildings and

1383
01:28:14,939 --> 01:28:18,000
there's a depiction of it there for you.

1384
01:28:18,000 --> 01:28:23,060
The project itself is a new 205,000 square foot warehouse

1385
01:28:23,060 --> 01:28:27,300
and distribution facility that is going to incorporate some

1386
01:28:27,300 --> 01:28:31,369
pretty cool aspects. They're seeking these lead bronze

1387
01:28:31,369 --> 01:28:36,000
certification or higher level if practical for the project.

1388
01:28:36,000 --> 01:28:40,829
And then they're going to incorporate a crane system to

1389
01:28:40,829 --> 01:28:43,000
manage their inventory.

1390
01:28:43,000 --> 01:28:47,310
The project itself is looking at a $31 million investment

1391
01:28:47,310 --> 01:28:51,000
that will add 16.9 million in new value.

1392
01:28:51,000 --> 01:28:55,090
They're going to create 67 new jobs by year 10 of the

1393
01:28:55,090 --> 01:28:56,000
project.

1394
01:28:56,000 --> 01:28:59,170
And that is something that we ask for that information in

1395
01:28:59,170 --> 01:29:02,579
the application to project out 10 years. So that's that's

1396
01:29:02,579 --> 01:29:04,000
why they're going out to year 10.

1397
01:29:04,000 --> 01:29:12,539
They have an average salary of almost $51,000 plus benefits

1398
01:29:12,539 --> 01:29:13,000
.

1399
01:29:13,000 --> 01:29:15,000
Jill wants a job.

1400
01:29:15,000 --> 01:29:17,000
Is there an application here?

1401
01:29:17,000 --> 01:29:24,000
Y'all couldn't see her face, but she went off.

1402
01:29:24,000 --> 01:29:28,000
We want to talk about the project's pros and cons quickly.

1403
01:29:28,000 --> 01:29:30,000
It is not a target industry.

1404
01:29:30,000 --> 01:29:34,079
They are going to be adding $16.9 million of new value. A

1405
01:29:34,079 --> 01:29:38,000
verage salary is above Denton County's average salary.

1406
01:29:38,000 --> 01:29:40,560
They're not a significant utility user, but from the

1407
01:29:40,560 --> 01:29:43,109
environmental standpoint, they are seeking lead

1408
01:29:43,109 --> 01:29:45,000
certification for the building.

1409
01:29:45,000 --> 01:29:51,000
And it is a headquarters project.

1410
01:29:51,000 --> 01:29:55,750
So to what they're considering, the company is looking at a

1411
01:29:55,750 --> 01:30:01,000
50 acre site in Denton at University and Mosh Branch Road.

1412
01:30:01,000 --> 01:30:05,000
And that's a little depiction of it here.

1413
01:30:05,000 --> 01:30:08,979
And then this is a rendering of what the potential new

1414
01:30:08,979 --> 01:30:12,000
facility could look like down here.

1415
01:30:12,000 --> 01:30:16,649
They're also considering a second site that's outside the

1416
01:30:16,649 --> 01:30:22,000
Denton City limits further west on 380 at George Owens Road

1417
01:30:22,000 --> 01:30:22,000
.

1418
01:30:22,000 --> 01:30:28,000
So on the map, are those gas for the property?

1419
01:30:28,000 --> 01:30:30,000
They look like that to me.

1420
01:30:30,000 --> 01:30:33,449
The other one is still open. We're not buying that whole

1421
01:30:33,449 --> 01:30:34,000
piece.

1422
01:30:34,000 --> 01:30:37,000
We're buying, I call it three quarters.

1423
01:30:37,000 --> 01:30:41,109
The quarter to the right heading toward Mosh, we're not

1424
01:30:41,109 --> 01:30:43,439
buying. We're actually going to run a road through the

1425
01:30:43,439 --> 01:30:44,000
middle of it.

1426
01:30:44,000 --> 01:30:47,470
Okay. So just I'm going to restate what you said. So there

1427
01:30:47,470 --> 01:30:50,000
are a couple of gas wells on the property.

1428
01:30:50,000 --> 01:30:52,989
One is closed or not functioning anymore. One is, but you

1429
01:30:52,989 --> 01:30:56,000
're not buying the entire 50 acre site.

1430
01:30:56,000 --> 01:30:58,000
You're buying about three quarters of it.

1431
01:30:58,000 --> 01:31:07,000
Okay. So just for clarification, the one that's not closed

1432
01:31:07,000 --> 01:31:07,000
has no intention of buying out and closing for the safety

1433
01:31:07,000 --> 01:31:07,000
of the.

1434
01:31:07,000 --> 01:31:10,399
Do you all know anything about the operators plans for the

1435
01:31:10,399 --> 01:31:13,000
one nearest marshaling that small one?

1436
01:31:13,000 --> 01:31:17,000
The lease is I think still got about a year and a half.

1437
01:31:17,000 --> 01:31:20,000
Okay. The intention is they may not rely on it.

1438
01:31:20,000 --> 01:31:24,000
Do we need to bring him up to the front? Would you like to?

1439
01:31:24,000 --> 01:31:26,000
Sure.

1440
01:31:26,000 --> 01:31:28,829
Because I'm just going to have to repeat everything if I

1441
01:31:28,829 --> 01:31:30,000
save a little time.

1442
01:31:30,000 --> 01:31:31,000
Sure.

1443
01:31:31,000 --> 01:31:35,800
And this is Tom McElvaney. You are the CEO. Is that correct

1444
01:31:35,800 --> 01:31:36,000
? Okay.

1445
01:31:36,000 --> 01:31:42,800
Yeah. You can hear me. The one nearest marshaling, which is

1446
01:31:42,800 --> 01:31:47,000
on the left hand side, that one's still active.

1447
01:31:47,000 --> 01:31:50,310
And I think it has about a year and a half on it, maybe a

1448
01:31:50,310 --> 01:31:52,000
little less than that.

1449
01:31:52,000 --> 01:31:56,939
The other one is plugged and sealed. So that we're going to

1450
01:31:56,939 --> 01:31:59,000
be building over there under those rules.

1451
01:31:59,000 --> 01:32:03,000
We won't build on the on the drill site because you can't.

1452
01:32:03,000 --> 01:32:07,100
But that will be maybe parking lot at some point in time,

1453
01:32:07,100 --> 01:32:12,000
which I guess is allowed.

1454
01:32:12,000 --> 01:32:14,000
Question. I'll be back.

1455
01:32:14,000 --> 01:32:21,000
You might want to stay over here. Okay.

1456
01:32:21,000 --> 01:32:25,090
So there are some definite advantages to Fisher 59 staying

1457
01:32:25,090 --> 01:32:26,000
in Denton.

1458
01:32:26,000 --> 01:32:31,380
The I-35/380 intersection is centrally located within their

1459
01:32:31,380 --> 01:32:32,000
market,

1460
01:32:32,000 --> 01:32:35,359
and it allows them to minimize their truck mileage, fuel

1461
01:32:35,359 --> 01:32:38,000
costs, and wear and tear on their equipment.

1462
01:32:38,000 --> 01:32:42,140
I also understand that access to high speed internet is

1463
01:32:42,140 --> 01:32:46,000
going to allow all of the technology in their new facility

1464
01:32:46,000 --> 01:32:50,000
to function at its highest potential.

1465
01:32:50,000 --> 01:32:54,289
Y'all saw this earlier in the other presentation, but we

1466
01:32:54,289 --> 01:32:58,600
want to remind about the policy, the current policy, about

1467
01:32:58,600 --> 01:33:03,000
25% abatement if at least $5 million in investment in value

1468
01:33:03,000 --> 01:33:03,000
is met,

1469
01:33:03,000 --> 01:33:07,069
which can increase with higher investment, and then the

1470
01:33:07,069 --> 01:33:12,619
percentage of abatement can increase for additional factors

1471
01:33:12,619 --> 01:33:13,000
.

1472
01:33:13,000 --> 01:33:17,329
The request from Fisher 59 is for the maximum allowable

1473
01:33:17,329 --> 01:33:20,000
incentive under the current policy,

1474
01:33:20,000 --> 01:33:23,569
and in particular they are seeking to offset additional

1475
01:33:23,569 --> 01:33:26,750
costs that they will incur for the Denton site versus the

1476
01:33:26,750 --> 01:33:28,000
out of Denton site.

1477
01:33:28,000 --> 01:33:33,170
The cost per square foot for their land in Denton is about

1478
01:33:33,170 --> 01:33:38,680
a dollar or a little bit more than a dollar higher per

1479
01:33:38,680 --> 01:33:40,000
square foot than the--

1480
01:33:40,000 --> 01:33:45,000
So that's about a million and $1.6 million, is that--

1481
01:33:45,000 --> 01:33:48,000
You do math in your head faster than I do.

1482
01:33:48,000 --> 01:33:52,000
I didn't do my math, I got my calculator out.

1483
01:33:52,000 --> 01:33:56,250
Additionally, they're going to have another $1.5 million in

1484
01:33:56,250 --> 01:33:59,000
site development costs for the Denton site,

1485
01:33:59,000 --> 01:34:04,710
and then because they are within the city limits, there

1486
01:34:04,710 --> 01:34:10,539
will be the standard fees, taxes, and after build costs

1487
01:34:10,539 --> 01:34:17,000
that are required to comply with city regulations and code.

1488
01:34:17,000 --> 01:34:20,909
So this is an interesting project because it is an

1489
01:34:20,909 --> 01:34:24,199
expansion, even though it's not an expansion in place, it's

1490
01:34:24,199 --> 01:34:26,000
an expansion in a different location,

1491
01:34:26,000 --> 01:34:29,000
so please keep that in mind as we're going through this,

1492
01:34:29,000 --> 01:34:32,470
but we want to look at the current conditions, their

1493
01:34:32,470 --> 01:34:34,000
current valuation,

1494
01:34:34,000 --> 01:34:38,329
and the current annual tax revenue that's being produced by

1495
01:34:38,329 --> 01:34:41,000
the company at this point in time.

1496
01:34:41,000 --> 01:34:46,659
So their current valuation is about $6.4 million, and the

1497
01:34:46,659 --> 01:34:51,390
annual tax revenue that that is producing to the city of

1498
01:34:51,390 --> 01:34:56,000
Denton is a little bit over $41,000.

1499
01:34:56,000 --> 01:35:01,000
The project itself, the ad valorem valuation and revenue,

1500
01:35:01,000 --> 01:35:05,279
it's going to produce some new valuation, of course, for

1501
01:35:05,279 --> 01:35:09,000
about $16.8 or $16.9 million.

1502
01:35:09,000 --> 01:35:13,140
Right here in this column, you can see that, and then we

1503
01:35:13,140 --> 01:35:19,220
take that and we generate the estimated tax revenue, land

1504
01:35:19,220 --> 01:35:22,000
improvements, and business personal property.

1505
01:35:22,000 --> 01:35:24,529
Again, we can only consider the improvements in the

1506
01:35:24,529 --> 01:35:27,659
business personal property when we're talking about money

1507
01:35:27,659 --> 01:35:30,000
that would be available for an incentive,

1508
01:35:30,000 --> 01:35:38,600
so that bottom line number right here is $98,340 available

1509
01:35:38,600 --> 01:35:41,000
for incentives.

1510
01:35:41,000 --> 01:35:44,840
And in this case, we did look at, again, like we did before

1511
01:35:44,840 --> 01:35:49,560
, 25/30 and 35% tax abatement models and the construction

1512
01:35:49,560 --> 01:35:52,000
sales and use tax rebate model.

1513
01:35:52,000 --> 01:35:56,399
And here is the analysis summary there, got the assumptions

1514
01:35:56,399 --> 01:36:00,100
up at the top that we just talked through on the prior

1515
01:36:00,100 --> 01:36:01,000
slides.

1516
01:36:01,000 --> 01:36:04,420
25% abatement on the incremental increase in value, and

1517
01:36:04,420 --> 01:36:07,899
again, since this is an expansion project, we have to take

1518
01:36:07,899 --> 01:36:12,000
what's currently on the ground, what the current revenue

1519
01:36:12,000 --> 01:36:13,000
and value is,

1520
01:36:13,000 --> 01:36:16,069
and look at what the incremental increase is going to be

1521
01:36:16,069 --> 01:36:18,000
when we're doing our analysis.

1522
01:36:18,000 --> 01:36:21,329
Caroline, before we go on, so you're going to still use the

1523
01:36:21,329 --> 01:36:24,449
existing facility and this will just be new, or are you

1524
01:36:24,449 --> 01:36:25,000
moving?

1525
01:36:25,000 --> 01:36:26,000
We're moving.

1526
01:36:26,000 --> 01:36:31,000
Okay. So new facility, the old, is the old one for sale?

1527
01:36:31,000 --> 01:36:33,000
Sale of loose store.

1528
01:36:33,000 --> 01:36:34,000
Okay, so.

1529
01:36:34,000 --> 01:36:40,000
We're getting that analyzed as you speak right now.

1530
01:36:40,000 --> 01:36:43,739
So what are we losing from them moving? What are they

1531
01:36:43,739 --> 01:36:45,000
paying currently?

1532
01:36:45,000 --> 01:36:47,949
We're not going to lose anything from them moving because

1533
01:36:47,949 --> 01:36:51,010
the existing facility will be likely purchased or leased by

1534
01:36:51,010 --> 01:36:52,000
someone else.

1535
01:36:52,000 --> 01:36:55,130
Someone's still going to pay the tax revenue on that

1536
01:36:55,130 --> 01:36:56,000
facility.

1537
01:36:56,000 --> 01:36:58,000
Unless they have that subject.

1538
01:36:58,000 --> 01:36:59,000
Okay.

1539
01:36:59,000 --> 01:37:01,000
Unless they have that subject.

1540
01:37:01,000 --> 01:37:03,000
Right, unless they.

1541
01:37:03,000 --> 01:37:05,000
I think that was enough.

1542
01:37:05,000 --> 01:37:06,000
Did you have another question?

1543
01:37:06,000 --> 01:37:09,000
I did, but it's about something in the application.

1544
01:37:09,000 --> 01:37:12,739
Okay. Do you want me to keep going or would you like to ask

1545
01:37:12,739 --> 01:37:13,000
?

1546
01:37:13,000 --> 01:37:15,000
We can wait until the end of your presentation.

1547
01:37:15,000 --> 01:37:16,000
Okay.

1548
01:37:16,000 --> 01:37:17,000
Okay.

1549
01:37:17,000 --> 01:37:22,020
So there you can see we're looking at the 25% abatement for

1550
01:37:22,020 --> 01:37:25,859
five years per the policy and the construction sales and

1551
01:37:25,859 --> 01:37:27,000
use tax rebate.

1552
01:37:27,000 --> 01:37:30,590
Again, this is set up similarly as the prior slide or the

1553
01:37:30,590 --> 01:37:33,000
slide in the prior presentation.

1554
01:37:33,000 --> 01:37:38,399
So the total there incentive would be a little over $131,

1555
01:37:38,399 --> 01:37:43,460
000 if we did a 25% abatement for five years and the

1556
01:37:43,460 --> 01:37:46,000
construction sales and use tax rebate.

1557
01:37:46,000 --> 01:37:55,479
And then down here, the net revenue to the city is $467,000

1558
01:37:55,479 --> 01:37:56,000
.

1559
01:37:56,000 --> 01:38:00,000
Questions?

1560
01:38:00,000 --> 01:38:04,000
Mike Rondelli, got a question?

1561
01:38:04,000 --> 01:38:07,000
Okay.

1562
01:38:07,000 --> 01:38:08,000
All right.

1563
01:38:08,000 --> 01:38:11,000
So I'm going to wrap this up here with the key points.

1564
01:38:11,000 --> 01:38:14,409
Fisher 59 has been a Denton business for 35 years and has

1565
01:38:14,409 --> 01:38:16,000
their headquarters here.

1566
01:38:16,000 --> 01:38:19,000
The project would increase its ad valorem value.

1567
01:38:19,000 --> 01:38:22,729
It's intending to have their new facility be LEED certified

1568
01:38:22,729 --> 01:38:23,000
.

1569
01:38:23,000 --> 01:38:27,180
The average salary is 12.4% higher than Denton County's

1570
01:38:27,180 --> 01:38:28,000
average.

1571
01:38:28,000 --> 01:38:33,000
However, the project is not in a target industry.

1572
01:38:33,000 --> 01:38:38,000
Basically the same options as we had before.

1573
01:38:38,000 --> 01:38:40,729
And then the staff recommendation on this is the

1574
01:38:40,729 --> 01:38:44,649
construction sales and use tax rebate five year 25% abat

1575
01:38:44,649 --> 01:38:48,750
ement on the incremental value for a total estimated

1576
01:38:48,750 --> 01:38:53,000
incentive of a little over $131,000.

1577
01:38:53,000 --> 01:38:58,000
And you are welcome to discuss.

1578
01:38:58,000 --> 01:38:59,000
Questions or comments?

1579
01:38:59,000 --> 01:39:00,000
Kaylee?

1580
01:39:00,000 --> 01:39:05,130
So I have a question on the application about the jobs

1581
01:39:05,130 --> 01:39:06,000
created.

1582
01:39:06,000 --> 01:39:08,489
And I guess you kind of answered my question when you said

1583
01:39:08,489 --> 01:39:11,000
you were leaving your old facility and moving over.

1584
01:39:11,000 --> 01:39:14,789
So I'm assuming all of those laborers or workers are moving

1585
01:39:14,789 --> 01:39:17,000
from one facility to another.

1586
01:39:17,000 --> 01:39:18,000
Yes.

1587
01:39:18,000 --> 01:39:19,000
There's a couple of things going on.

1588
01:39:19,000 --> 01:39:23,000
We're located in three locations.

1589
01:39:23,000 --> 01:39:24,000
We're actually up in Wichita Falls.

1590
01:39:24,000 --> 01:39:27,000
We're also in Lawton, Oklahoma.

1591
01:39:27,000 --> 01:39:29,000
There may be with Lawton.

1592
01:39:29,000 --> 01:39:31,000
There certainly is with Wichita Falls.

1593
01:39:31,000 --> 01:39:34,069
Because this is going to be a big warehouse and it's a lot

1594
01:39:34,069 --> 01:39:37,020
more modern, we may actually move a lot of our receiving

1595
01:39:37,020 --> 01:39:39,000
for both those locations down here.

1596
01:39:39,000 --> 01:39:43,000
So we will be moving some of those personnel down.

1597
01:39:43,000 --> 01:39:46,020
Additionally for us, we have a pretty broad portfolio that

1598
01:39:46,020 --> 01:39:49,000
has grown pretty consistently over the last few years.

1599
01:39:49,000 --> 01:39:52,000
We anticipate that model to continue.

1600
01:39:52,000 --> 01:39:53,000
And that's what we based a lot of.

1601
01:39:53,000 --> 01:39:55,760
You know, we're fortunate we also have like the Frisco

1602
01:39:55,760 --> 01:39:59,000
market that you've seen how that's exploded.

1603
01:39:59,000 --> 01:40:02,149
And with new restaurants and supermarkets, it requires us

1604
01:40:02,149 --> 01:40:05,000
to expand and buy more trucks and hire more people.

1605
01:40:05,000 --> 01:40:09,500
So my question is about the wages because at your current

1606
01:40:09,500 --> 01:40:15,000
facility, it says laborer, there's 57 at $11.86.

1607
01:40:15,000 --> 01:40:16,000
Steve, you did that.

1608
01:40:16,000 --> 01:40:23,000
Why don't you come up and go through that?

1609
01:40:23,000 --> 01:40:25,000
Steve Richards, our CFO.

1610
01:40:25,000 --> 01:40:27,000
So, okay.

1611
01:40:27,000 --> 01:40:28,000
Yes.

1612
01:40:28,000 --> 01:40:30,000
So the go ahead with your question.

1613
01:40:30,000 --> 01:40:33,550
So that was the first part, which is more of what I'm

1614
01:40:33,550 --> 01:40:35,000
observing here.

1615
01:40:35,000 --> 01:40:37,659
And so on the new facility, it has the laborer and I'm

1616
01:40:37,659 --> 01:40:41,359
assuming that matching job description, they're now getting

1617
01:40:41,359 --> 01:40:45,000
paid $15.38 and you're adding six more of those.

1618
01:40:45,000 --> 01:40:49,119
So does that mean that the old wages, they're actually

1619
01:40:49,119 --> 01:40:54,039
getting a raise and that $11.86 is not going to be a wage

1620
01:40:54,039 --> 01:40:55,000
anymore?

1621
01:40:55,000 --> 01:40:57,000
Not necessarily.

1622
01:40:57,000 --> 01:41:00,760
It more has to do with there are multiple classes of labor

1623
01:41:00,760 --> 01:41:06,300
ers in there where to give a simple example, I'm going to

1624
01:41:06,300 --> 01:41:09,409
pay a warehouse worker that has the skill and license to

1625
01:41:09,409 --> 01:41:13,199
operate a forklift in my facility more than what I'm going

1626
01:41:13,199 --> 01:41:17,949
to pay a laborer that is simply moving boxes type of

1627
01:41:17,949 --> 01:41:19,000
situation.

1628
01:41:19,000 --> 01:41:23,069
So that you have a kind of a weighted average in that labor

1629
01:41:23,069 --> 01:41:27,239
figure and the expected increases in that category are in

1630
01:41:27,239 --> 01:41:31,300
the higher wage value because we are going to a more techn

1631
01:41:31,300 --> 01:41:35,720
ologically advanced facility and so we're going to require a

1632
01:41:35,720 --> 01:41:39,000
little more skill out of those workers.

1633
01:41:39,000 --> 01:41:41,000
But also CDL drivers.

1634
01:41:41,000 --> 01:41:42,000
Oh, for sure.

1635
01:41:42,000 --> 01:41:51,000
That's how it is.

1636
01:41:51,000 --> 01:41:55,500
That's a, that's a high percentage of full time positions

1637
01:41:55,500 --> 01:42:00,090
you have there that are lower level wages, compared to some

1638
01:42:00,090 --> 01:42:01,000
others.

1639
01:42:01,000 --> 01:42:04,000
And I don't think I follow your question.

1640
01:42:04,000 --> 01:42:07,550
Well, it says the number of full time positions, laborers

1641
01:42:07,550 --> 01:42:12,069
at $11.86, there's 57 of those, that's more than any of the

1642
01:42:12,069 --> 01:42:15,000
other categories so I'm just looking here.

1643
01:42:15,000 --> 01:42:18,819
Sure, so what that might include is, or what it does

1644
01:42:18,819 --> 01:42:22,829
include for that matter is, we have some driver assistants

1645
01:42:22,829 --> 01:42:25,000
that are included in that number.

1646
01:42:25,000 --> 01:42:30,220
We have general warehouse labor included in that number we

1647
01:42:30,220 --> 01:42:35,000
have the forklift operators included in that number.

1648
01:42:35,000 --> 01:42:39,000
I'm trying to think of a missing.

1649
01:42:39,000 --> 01:42:42,359
That hourly wage position wasn't moved down into your new

1650
01:42:42,359 --> 01:42:45,859
facility so I was kind of confused by that. That's kind of

1651
01:42:45,859 --> 01:42:48,000
where my question lies in there.

1652
01:42:48,000 --> 01:42:52,970
Right. And Tom just the other category that is in there is

1653
01:42:52,970 --> 01:42:56,750
our merchandisers. Currently we do have some part time

1654
01:42:56,750 --> 01:42:59,850
merchandisers that while they are not eligible for benefits

1655
01:42:59,850 --> 01:43:02,689
that is the people that are doing the heavy lifting stock

1656
01:43:02,689 --> 01:43:06,000
ing the shelves in in the supermarkets and whatnot.

1657
01:43:06,000 --> 01:43:12,000
It's always been very good for the city.

1658
01:43:12,000 --> 01:43:22,420
The college. Sorry, we're, we're taking minutes on

1659
01:43:22,420 --> 01:43:23,069
television or on television right now. We can't hear what

1660
01:43:23,069 --> 01:43:23,569
you're saying so if we're going to talk on it, the

1661
01:43:23,569 --> 01:43:26,119
microphone to go do just be going exactly where I was

1662
01:43:26,119 --> 01:43:29,750
headed with this, the part time labor while it may not be a

1663
01:43:29,750 --> 01:43:30,000
benefits

1664
01:43:30,000 --> 01:43:42,550
eligible. It does provide a benefit to the community

1665
01:43:42,550 --> 01:43:43,310
because it does provide a very good income for many college

1666
01:43:43,310 --> 01:43:44,090
students in the area. I think the where she's coming from

1667
01:43:44,090 --> 01:43:45,279
if your average was $11 an hour near the average wage is $

1668
01:43:45,279 --> 01:43:49,640
24,000 a year, and now the proposal says it's going to $50,

1669
01:43:49,640 --> 01:43:51,000
000 a year.

1670
01:43:51,000 --> 01:43:55,569
Are you adding that many more technical people to the staff

1671
01:43:55,569 --> 01:44:00,109
and it says there's only a six person growth per year. So

1672
01:44:00,109 --> 01:44:03,000
those six people making $200,000 a year.

1673
01:44:03,000 --> 01:44:05,000
No, sir.

1674
01:44:05,000 --> 01:44:08,000
You're combining those I mean that the math doesn't work.

1675
01:44:08,000 --> 01:44:12,850
If you're currently if you have 57 people now making $11 or

1676
01:44:12,850 --> 01:44:15,000
whatever since an hour.

1677
01:44:15,000 --> 01:44:18,000
Yes, $22,000 a year.

1678
01:44:18,000 --> 01:44:23,489
I would have to go back in there and we were both as we're

1679
01:44:23,489 --> 01:44:26,189
going to have 57 plus six and our average wages $50,000 a

1680
01:44:26,189 --> 01:44:28,000
year you're doubling everybody's salary.

1681
01:44:28,000 --> 01:44:30,000
Not necessarily.

1682
01:44:30,000 --> 01:44:37,000
Because of the weighted average in there, so that if I

1683
01:44:37,000 --> 01:44:45,670
increase one person from $15 to $20 an hour in one category

1684
01:44:45,670 --> 01:44:53,000
and say there's five of those people, and the other.

1685
01:44:53,000 --> 01:45:00,000
That would be a weighted average change that's different.

1686
01:45:00,000 --> 01:45:00,000
Excuse me.

1687
01:45:00,000 --> 01:45:03,149
What I can do for you is pull that apart, and instead of

1688
01:45:03,149 --> 01:45:06,369
classifying it all as a labor position split it out into

1689
01:45:06,369 --> 01:45:09,869
the individual labor categories, I lumped it together for

1690
01:45:09,869 --> 01:45:13,000
conservation of space on the application form.

1691
01:45:13,000 --> 01:45:17,569
But I'd be happy to split that out and provide that to

1692
01:45:17,569 --> 01:45:20,000
Caroline to share with all of you.

1693
01:45:20,000 --> 01:45:25,329
Under the new jobs created it is split warehouse merchand

1694
01:45:25,329 --> 01:45:30,750
ising and route assist, but nine of none of those have the $

1695
01:45:30,750 --> 01:45:35,579
11 and 86 cent hourly wage and so that that's where my

1696
01:45:35,579 --> 01:45:39,220
question was I thought I was looking for that wage to be

1697
01:45:39,220 --> 01:45:44,000
moved to the new facility if that wage was going to stay.

1698
01:45:44,000 --> 01:45:50,000
Now I have what you have in front of you in front of me.

1699
01:45:50,000 --> 01:45:53,880
A portion of that is due to the fact that some of those are

1700
01:45:53,880 --> 01:45:58,029
part time positions, and that is pulling down that hourly

1701
01:45:58,029 --> 01:46:02,680
rate to the 1186 in the top section. Our expectation is

1702
01:46:02,680 --> 01:46:06,409
that as we grow more of those do convert into full time

1703
01:46:06,409 --> 01:46:13,000
roles and the full time roles will provide for a better

1704
01:46:13,000 --> 01:46:16,000
hourly rate for the employees.

1705
01:46:16,000 --> 01:46:23,399
Jim, how are you going to manage your new technology as far

1706
01:46:23,399 --> 01:46:26,720
as maintenance of the facility that doesn't show up

1707
01:46:26,720 --> 01:46:29,529
anywhere here. Is that going to be a contract labor or the

1708
01:46:29,529 --> 01:46:31,000
maintenance of the new equipment.

1709
01:46:31,000 --> 01:46:34,000
Yeah, your automated systems.

1710
01:46:34,000 --> 01:46:39,350
Because that's a very low scale, we will yes you're right

1711
01:46:39,350 --> 01:46:44,600
and the new piece of equipment from serious tech which is

1712
01:46:44,600 --> 01:46:47,000
an automatic loader.

1713
01:46:47,000 --> 01:46:51,750
That's pretty smart to run it. It may be more than that and

1714
01:46:51,750 --> 01:46:56,310
I get that moving forward but at this point in time, I don

1715
01:46:56,310 --> 01:47:00,670
't know if he didn't include it in this but that was that

1716
01:47:00,670 --> 01:47:05,000
was something we are planning on having to add.

1717
01:47:05,000 --> 01:47:08,949
So, we're hoping it's. They sold me a pretty good bill of

1718
01:47:08,949 --> 01:47:12,000
goods it's over $5 million so they're good. Hopefully they

1719
01:47:12,000 --> 01:47:12,000
're right.

1720
01:47:12,000 --> 01:47:16,430
But also answer your question too and I don't know, and I'm

1721
01:47:16,430 --> 01:47:19,000
against we put this together.

1722
01:47:19,000 --> 01:47:22,039
But when we look at our average salaries where our cost

1723
01:47:22,039 --> 01:47:25,760
really skyrockets is a CDL driver today is approaching $80,

1724
01:47:25,760 --> 01:47:29,000
000 our salesmen are well over that 50.

1725
01:47:29,000 --> 01:47:31,649
So there's a lot of people making more than that average

1726
01:47:31,649 --> 01:47:34,340
and again, the issue with part time and I want you to look

1727
01:47:34,340 --> 01:47:36,630
at that that may explain some of the, some of the

1728
01:47:36,630 --> 01:47:38,000
difference there.

1729
01:47:38,000 --> 01:47:43,069
That's the only thing I can tell you. And I just wanted to

1730
01:47:43,069 --> 01:47:46,489
add that I appreciate you going lead certified. Yeah, that

1731
01:47:46,489 --> 01:47:48,000
's really, we're excited about that.

1732
01:47:48,000 --> 01:47:51,159
In fact, we're leaving next week to be to meet with our

1733
01:47:51,159 --> 01:47:54,649
architect and that's a lot of what our discussion is around

1734
01:47:54,649 --> 01:47:55,000
.

1735
01:47:55,000 --> 01:47:59,449
Go ahead. Go ahead. It does say incorporate green

1736
01:47:59,449 --> 01:48:02,880
initiatives, and is that just in the building or is that in

1737
01:48:02,880 --> 01:48:05,680
like the machines and again we're going to see a little

1738
01:48:05,680 --> 01:48:07,000
more when I get up there.

1739
01:48:07,000 --> 01:48:10,300
I mean, one of the things right now that we're considering,

1740
01:48:10,300 --> 01:48:13,270
and again it's cost benefit and I got to look at it but one

1741
01:48:13,270 --> 01:48:16,390
of the conversations I know I'll have next week it's solar

1742
01:48:16,390 --> 01:48:18,000
panels across the top.

1743
01:48:18,000 --> 01:48:21,399
From what I've seen, it makes a lot of sense and the pay

1744
01:48:21,399 --> 01:48:23,000
back isn't that long.

1745
01:48:23,000 --> 01:48:25,220
I need my architects to kind of update me and make sure

1746
01:48:25,220 --> 01:48:27,489
they're telling me the truth on that but it sounds like

1747
01:48:27,489 --> 01:48:29,750
that's going to be a good idea and it may be something we

1748
01:48:29,750 --> 01:48:31,000
can add to this building.

1749
01:48:31,000 --> 01:48:33,000
I'm sure it's a perfect idea.

1750
01:48:33,000 --> 01:48:39,000
So we're excited about it.

1751
01:48:39,000 --> 01:48:42,550
One couple of comments. One thing is, is historically these

1752
01:48:42,550 --> 01:48:45,000
guys have bought trucks from us.

1753
01:48:45,000 --> 01:48:48,000
So they do buy locally.

1754
01:48:48,000 --> 01:48:51,729
The other one is is their community support is pretty broad

1755
01:48:51,729 --> 01:48:52,000
.

1756
01:48:52,000 --> 01:49:04,310
I think a lot of us recognize that. And as the hours of

1757
01:49:04,310 --> 01:49:05,439
service for drivers continues to get scrutinized, and their

1758
01:49:05,439 --> 01:49:06,489
area of territory expands, they're going to have to hire

1759
01:49:06,489 --> 01:49:07,000
more drivers.

1760
01:49:07,000 --> 01:49:13,000
Thank you, Jim. Yeah, you're right.

1761
01:49:13,000 --> 01:49:15,000
Mark.

1762
01:49:15,000 --> 01:49:22,000
Are most of your employees living in Denton County? Yes,

1763
01:49:22,000 --> 01:49:22,000
yes.

1764
01:49:22,000 --> 01:49:25,000
Probably 95%.

1765
01:49:25,000 --> 01:49:28,000
Maybe 90. I got a few that get in other areas.

1766
01:49:28,000 --> 01:49:30,729
Are the technical skills that you need for the new system

1767
01:49:30,729 --> 01:49:34,479
that you're putting in, is that able to be achieved here in

1768
01:49:34,479 --> 01:49:35,000
town?

1769
01:49:35,000 --> 01:49:38,000
Yes, yes, for sure.

1770
01:49:38,000 --> 01:49:41,640
We have some pretty complicated systems with how we go to

1771
01:49:41,640 --> 01:49:45,000
market, but they're telling me this is easier.

1772
01:49:45,000 --> 01:49:51,000
So we'll find out.

1773
01:49:51,000 --> 01:49:53,000
Question.

1774
01:49:53,000 --> 01:49:55,680
We have you up here. Can you tell me a little bit about the

1775
01:49:55,680 --> 01:49:58,000
community involvement that the company has?

1776
01:49:58,000 --> 01:50:00,000
Sure.

1777
01:50:00,000 --> 01:50:02,000
It's a good question.

1778
01:50:02,000 --> 01:50:05,909
Because we've been involved in, you know, we're very

1779
01:50:05,909 --> 01:50:09,000
involved, for example, in the rodeo. We've sponsored that

1780
01:50:09,000 --> 01:50:09,000
for years.

1781
01:50:09,000 --> 01:50:11,989
We've done an awful lot of initiatives around the

1782
01:50:11,989 --> 01:50:15,000
university. We sponsor UNT.

1783
01:50:15,000 --> 01:50:18,399
We're their lead sponsor. And in fact, next year, I'll be

1784
01:50:18,399 --> 01:50:21,880
100% their lead sponsor. I'm going to bring in Dos Equis

1785
01:50:21,880 --> 01:50:26,060
with Miller Lite, and we'll be their sole sponsor from an

1786
01:50:26,060 --> 01:50:28,000
athletic standpoint.

1787
01:50:28,000 --> 01:50:30,880
Listing out all the other events, we've got to, we

1788
01:50:30,880 --> 01:50:34,109
literally do something, it seems, every week or twice a

1789
01:50:34,109 --> 01:50:36,000
week around our community.

1790
01:50:36,000 --> 01:50:38,579
The other side of it that nobody sees from time to time are

1791
01:50:38,579 --> 01:50:41,800
all the golf tournaments. They call us for the beer, and we

1792
01:50:41,800 --> 01:50:43,829
give them the beer, and you know, we don't get credit for

1793
01:50:43,829 --> 01:50:45,000
it, but we just do it.

1794
01:50:45,000 --> 01:50:49,640
But we are very, very involved in a lot of different things

1795
01:50:49,640 --> 01:50:52,260
. I know we've got a couple of music festivals coming up

1796
01:50:52,260 --> 01:50:54,000
this summer that I'm excited about.

1797
01:50:54,000 --> 01:50:57,890
One in particular is an expanis, a spanish deal that we

1798
01:50:57,890 --> 01:51:01,350
just sponsored with them. I think it happens right after

1799
01:51:01,350 --> 01:51:02,000
Jazz Fest.

1800
01:51:02,000 --> 01:51:04,350
So we're very involved with them and helping that get off

1801
01:51:04,350 --> 01:51:06,550
the ground and giving them the startup money to get it

1802
01:51:06,550 --> 01:51:10,000
going. So we try to get back. We really do.

1803
01:51:10,000 --> 01:51:14,000
Where it makes sense. Thank you.

1804
01:51:14,000 --> 01:51:20,000
Any more questions during our work session?

1805
01:51:20,000 --> 01:51:25,100
All right, our work session time is over. We have a long

1806
01:51:25,100 --> 01:51:28,000
agenda. We're going to thank you very much.

1807
01:51:28,000 --> 01:51:32,300
We're going to take a break. We have lunch provided in the

1808
01:51:32,300 --> 01:51:37,000
back. I would like to invite all of our guests to

1809
01:51:37,000 --> 01:51:38,000
participate in that as well.

1810
01:51:38,000 --> 01:51:41,329
Then we'll come back and start our regular meeting, which

1811
01:51:41,329 --> 01:51:44,800
at that time, we will have more discussion and vote or make

1812
01:51:44,800 --> 01:51:49,000
recommendations on the incentives and wrap up our meetings.

1813
01:51:49,000 --> 01:51:54,000
Then we will go into our TURS board meeting.

1814
01:51:54,000 --> 01:51:57,939
And the TURS board meeting should be very short. The agenda

1815
01:51:57,939 --> 01:51:59,000
is short.

1816
01:51:59,000 --> 01:52:02,350
So grab some food and I don't mind if we want to eat while

1817
01:52:02,350 --> 01:52:06,000
we're doing that or if you can eat fast. That's great too.

1818
01:52:06,000 --> 01:52:10,000
But we'll take a short break to have some lunch.

1819
01:52:19,000 --> 01:52:21,000
Thank you.

1820
01:52:49,000 --> 01:53:03,649
The EDP 18-007 consider a recommendation to the city didn't

1821
01:53:03,649 --> 01:53:06,939
didn't see council regarding approval of the revised policy

1822
01:53:06,939 --> 01:53:10,000
for tax abatement and incentives. We went over that first.

1823
01:53:10,000 --> 01:53:13,000
This does not include the PID guidelines.

1824
01:53:13,000 --> 01:53:22,710
So it's just the update to the tax abatement and incentive

1825
01:53:22,710 --> 01:53:24,000
policy.

1826
01:53:24,000 --> 01:53:27,930
The motion by Jill and a second by Carol Anne. Do we have

1827
01:53:27,930 --> 01:53:32,000
any discussion or any other comments.

1828
01:53:32,000 --> 01:53:35,000
All those in favor say aye.

1829
01:53:35,000 --> 01:53:37,000
Any opposed.

1830
01:53:37,000 --> 01:53:40,000
Motion carries unanimously.

1831
01:53:40,000 --> 01:53:44,060
As a reminder, these are the recommendations to city

1832
01:53:44,060 --> 01:53:45,000
council.

1833
01:53:45,000 --> 01:53:50,489
Next item, EDP 18-008 consider a recommendation to the didn

1834
01:53:50,489 --> 01:53:54,979
't city council regarding the approval of the revised public

1835
01:53:54,979 --> 01:53:58,000
improvement district guidelines.

1836
01:53:58,000 --> 01:54:03,000
Any comments or questions.

1837
01:54:03,000 --> 01:54:14,359
I have a question. So the recommendation as included does

1838
01:54:14,359 --> 01:54:15,000
not include residential opportunities. Is that correct.

1839
01:54:15,000 --> 01:54:21,649
The proposed revised policy per council direction does not

1840
01:54:21,649 --> 01:54:25,000
include residential pits.

1841
01:54:25,000 --> 01:54:30,250
I think it would be a good idea to allow residential with a

1842
01:54:30,250 --> 01:54:35,000
demonstrated demonstrable.

1843
01:54:35,000 --> 01:54:40,000
Is there a way we can further discussion.

1844
01:54:40,000 --> 01:54:43,000
Yes, that's an option.

1845
01:54:43,000 --> 01:54:47,000
Do we need a motion to table.

1846
01:54:47,000 --> 01:54:51,810
If we don't make a recommendation to council that doesn't

1847
01:54:51,810 --> 01:54:55,000
prevent them from moving forward.

1848
01:54:55,000 --> 01:54:58,319
No, and this this one is not time sensitive like the

1849
01:54:58,319 --> 01:55:01,409
incentive policy is. So while we want to keep it moving

1850
01:55:01,409 --> 01:55:02,000
forward.

1851
01:55:02,000 --> 01:55:06,819
We're not on a hard deadline on this particular PID policy

1852
01:55:06,819 --> 01:55:08,000
decision.

1853
01:55:08,000 --> 01:55:16,119
Can we make a recommendation to consider the residential

1854
01:55:16,119 --> 01:55:19,000
with a an impact and also define demonstrable.

1855
01:55:19,000 --> 01:55:22,000
Yes, that's possible.

1856
01:55:22,000 --> 01:55:25,000
We need a vote on that.

1857
01:55:25,000 --> 01:55:29,020
Well, I think if that's if that's the recommendation that

1858
01:55:29,020 --> 01:55:32,720
aside, aside from the change you would like to see the

1859
01:55:32,720 --> 01:55:37,010
council consider adding in the consideration of residential

1860
01:55:37,010 --> 01:55:41,170
pins and further defining what demonstrable public benefit

1861
01:55:41,170 --> 01:55:42,000
looks like.

1862
01:55:42,000 --> 01:55:46,420
And that could be the recommendation that you're okay with

1863
01:55:46,420 --> 01:55:50,000
everything else but want to add in those things.

1864
01:55:50,000 --> 01:55:52,000
Or you could just table it.

1865
01:55:52,000 --> 01:55:58,670
I'm nodding. Do we want to make a recommendation to council

1866
01:55:58,670 --> 01:56:03,560
that the recommendation couldn't wouldn't include really

1867
01:56:03,560 --> 01:56:08,199
something that's finite because it's recommended looking

1868
01:56:08,199 --> 01:56:12,119
into that so I would suggest that we table it with the

1869
01:56:12,119 --> 01:56:15,000
information to be passed on to council.

1870
01:56:15,000 --> 01:56:20,060
If everybody agrees we think it's a good idea to look at

1871
01:56:20,060 --> 01:56:26,000
residential as long as it has a demonstrable public value.

1872
01:56:26,000 --> 01:56:30,079
If anything, came across industrial commercial whatever was

1873
01:56:30,079 --> 01:56:33,439
if we can prove something like that I don't know why we

1874
01:56:33,439 --> 01:56:35,000
wouldn't look at it.

1875
01:56:35,000 --> 01:56:38,079
I think it's harder if it's residential to prove that you

1876
01:56:38,079 --> 01:56:41,659
're going to do that. If something came along. If two or 18

1877
01:56:41,659 --> 01:56:45,000
came to town and said we want to do something that might.

1878
01:56:45,000 --> 01:56:51,140
Maybe that does maybe that doesn't but that might be a good

1879
01:56:51,140 --> 01:56:55,000
example of something like that.

1880
01:56:55,000 --> 01:56:59,000
So I'm not do I need to do need to do anything with.

1881
01:56:59,000 --> 01:57:03,770
That was a table table. Okay, that's a table. I think you

1882
01:57:03,770 --> 01:57:08,220
do need to go ahead and make someone needs to make a motion

1883
01:57:08,220 --> 01:57:09,000
to table.

1884
01:57:09,000 --> 01:57:14,000
I'm like a motion.

1885
01:57:14,000 --> 01:57:32,000
Motion. And a second. Any more discussion.

1886
01:57:32,000 --> 01:57:35,890
I think I think the board wants to defer making a

1887
01:57:35,890 --> 01:57:41,050
recommendation until the council has its further discussion

1888
01:57:41,050 --> 01:57:46,000
so they're they're tabling making a recommendation today.

1889
01:57:46,000 --> 01:57:49,210
But then when when I come back to you guys to talk more

1890
01:57:49,210 --> 01:57:52,720
about kids I can convey the concerns of the board and then

1891
01:57:52,720 --> 01:57:55,000
we'll just bring it back again.

1892
01:57:55,000 --> 01:58:02,000
So the vote today is just to table the district. Correct.

1893
01:58:02,000 --> 01:58:07,000
All those in favor say aye. Aye. Any opposed.

1894
01:58:07,000 --> 01:58:10,000
Motion carries.

1895
01:58:10,000 --> 01:58:14,000
All right, we have item number 18.

1896
01:58:14,000 --> 01:58:20,689
That's 011 recommendation to the density council regarding

1897
01:58:20,689 --> 01:58:24,000
an incentive for United States cold storage.

1898
01:58:24,000 --> 01:58:29,000
Anybody want to have any further discussion or make a

1899
01:58:29,000 --> 01:58:31,000
recommendation for this application.

1900
01:58:31,000 --> 01:58:37,949
I would make a recommendation to approve an incentive at 25

1901
01:58:37,949 --> 01:58:45,189
% for five years with the construction sales tax rebate and

1902
01:58:45,189 --> 01:58:49,000
the DME energy dollars.

1903
01:58:49,000 --> 01:58:54,000
Second.

1904
01:58:54,000 --> 01:58:58,000
Five years.

1905
01:58:58,000 --> 01:59:02,000
We have a motion and a second.

1906
01:59:02,000 --> 01:59:03,000
Any further discussion.

1907
01:59:03,000 --> 01:59:05,000
Yes.

1908
01:59:05,000 --> 01:59:08,229
So rather than make the recommendation for the six years is

1909
01:59:08,229 --> 01:59:11,000
listed your recommendation is for five years.

1910
01:59:11,000 --> 01:59:12,000
Yes.

1911
01:59:12,000 --> 01:59:17,770
Okay. I'd also like to go on the record to say that even

1912
01:59:17,770 --> 01:59:23,210
though the the wages that we're looking at doesn't meet the

1913
01:59:23,210 --> 01:59:27,000
target that the that we're supposed to be looking at.

1914
01:59:27,000 --> 01:59:31,189
I think overall we would benefit by receiving this company

1915
01:59:31,189 --> 01:59:34,000
here rather than turning them away.

1916
01:59:34,000 --> 01:59:39,060
And so as you communicate with your board of directors in

1917
01:59:39,060 --> 01:59:44,439
London, you can let them know that hopefully the wages will

1918
01:59:44,439 --> 01:59:49,000
will continue to increase.

1919
01:59:49,000 --> 01:59:51,000
I understand.

1920
01:59:51,000 --> 01:59:52,000
I understand.

1921
01:59:52,000 --> 02:00:06,000
We might need to send a delegation.

1922
02:00:06,000 --> 02:00:09,000
Any other questions or discussion.

1923
02:00:09,000 --> 02:00:10,000
Just a comment.

1924
02:00:10,000 --> 02:00:12,000
I will not be voting in favor.

1925
02:00:12,000 --> 02:00:17,449
I'm for the staff recommendation and I am glad the company

1926
02:00:17,449 --> 02:00:22,000
is coming and I'm in favor of you guys coming.

1927
02:00:22,000 --> 02:00:25,560
But I'm glad that you put five years instead of six that

1928
02:00:25,560 --> 02:00:28,000
way the energy writer is the same.

1929
02:00:28,000 --> 02:00:30,000
So there's not any confusion on that.

1930
02:00:30,000 --> 02:00:32,000
It ends at the same time.

1931
02:00:32,000 --> 02:00:35,000
But so just with that.

1932
02:00:35,000 --> 02:00:44,000
I just wanted to go over any further discussion.

1933
02:00:44,000 --> 02:00:45,000
All right.

1934
02:00:45,000 --> 02:00:47,000
All those in favor say aye.

1935
02:00:47,000 --> 02:00:48,000
Aye.

1936
02:00:48,000 --> 02:00:50,000
All those opposed.

1937
02:00:50,000 --> 02:00:55,000
We've got six one six to one.

1938
02:00:55,000 --> 02:00:57,000
Motion carries.

1939
02:00:57,000 --> 02:00:59,000
Appreciate all the comments and feedback.

1940
02:00:59,000 --> 02:01:02,989
And I just to tag along to what Caroline said earlier I don

1941
02:01:02,989 --> 02:01:06,000
't know if everybody picked up on this.

1942
02:01:06,000 --> 02:01:10,000
Adam and remind everybody how things kind of work.

1943
02:01:10,000 --> 02:01:14,970
Adam made contact with the commercial real real estate

1944
02:01:14,970 --> 02:01:17,000
broker over a year ago.

1945
02:01:17,000 --> 02:01:20,670
About this project and has helped with the city coordinate

1946
02:01:20,670 --> 02:01:24,000
about four or five site visits over the past year.

1947
02:01:24,000 --> 02:01:28,000
So this is a for you new folks and I would say years not

1948
02:01:28,000 --> 02:01:32,000
necessarily long in the grand scheme of things.

1949
02:01:32,000 --> 02:01:34,000
This is pretty quick one sometimes.

1950
02:01:34,000 --> 02:01:36,000
So it started over a year ago.

1951
02:01:36,000 --> 02:01:38,000
We're just now at this point.

1952
02:01:38,000 --> 02:01:42,920
So good job by the staff city staff and chamber for

1953
02:01:42,920 --> 02:01:46,000
bringing this to fruition.

1954
02:01:46,000 --> 02:01:50,000
Thank you.

1955
02:01:50,000 --> 02:01:54,000
All right.

1956
02:01:54,000 --> 02:01:59,439
Consider recommendation to the density council regarding an

1957
02:01:59,439 --> 02:02:02,000
incentive for Fisher 59.

1958
02:02:02,000 --> 02:02:06,000
Discussion or comments.

1959
02:02:06,000 --> 02:02:08,000
No big motion.

1960
02:02:08,000 --> 02:02:12,000
Or a motion.

1961
02:02:12,000 --> 02:02:16,170
I make a motion to approve the staff recommendation of

1962
02:02:16,170 --> 02:02:21,000
construction cells tax rebate 25 percent abatement.

1963
02:02:21,000 --> 02:02:24,000
I'll second that motion.

1964
02:02:24,000 --> 02:02:25,000
All right.

1965
02:02:25,000 --> 02:02:27,000
We've got a motion.

1966
02:02:27,000 --> 02:02:29,000
And the 25th.

1967
02:02:29,000 --> 02:02:30,000
Yes.

1968
02:02:30,000 --> 02:02:33,000
So a total of 131 incentive.

1969
02:02:33,000 --> 02:02:35,659
We've got a motion and a second for the staff

1970
02:02:35,659 --> 02:02:37,000
recommendation.

1971
02:02:37,000 --> 02:02:40,000
Any further discussion or comments.

1972
02:02:40,000 --> 02:02:42,000
Yes.

1973
02:02:42,000 --> 02:02:47,229
I'd like to go on record again and say that even though the

1974
02:02:47,229 --> 02:02:51,109
wages may not meet with the target that we're looking for,

1975
02:02:51,109 --> 02:02:54,550
I think the Fisher company has a long history here in our

1976
02:02:54,550 --> 02:02:55,000
area.

1977
02:02:55,000 --> 02:02:59,310
And it would be hard to go against someone who's made such

1978
02:02:59,310 --> 02:03:03,000
a significant investment in our community.

1979
02:03:03,000 --> 02:03:06,640
And it's unlike someone just coming to town. They've got a

1980
02:03:06,640 --> 02:03:10,000
very strong and I think a very decent history here.

1981
02:03:10,000 --> 02:03:14,770
And for that reason, I think I can say that I can be in

1982
02:03:14,770 --> 02:03:18,000
favor of this recommendation.

1983
02:03:18,000 --> 02:03:21,000
Anybody else.

1984
02:03:21,000 --> 02:03:23,000
All those in favor say aye.

1985
02:03:23,000 --> 02:03:24,000
Aye.

1986
02:03:24,000 --> 02:03:26,000
Any opposed.

1987
02:03:26,000 --> 02:03:30,560
And carries unanimously and we are through our regular

1988
02:03:30,560 --> 02:03:35,000
meeting except for the staff reports to the board.

1989
02:03:35,000 --> 02:03:44,000
So who wants to go first.

1990
02:03:44,000 --> 02:03:45,000
Sorry.

1991
02:03:45,000 --> 02:03:47,000
Do you want to have all the information.

1992
02:03:47,000 --> 02:03:50,680
I think I am of the opinion if Adam agrees with me unless

1993
02:03:50,680 --> 02:03:54,710
there are specific questions in the interest of time we can

1994
02:03:54,710 --> 02:03:58,000
forgo discussion of staff presentations.

1995
02:03:58,000 --> 02:04:00,000
But that's up to you all.

1996
02:04:00,000 --> 02:04:03,000
Okay.

1997
02:04:03,000 --> 02:04:07,720
So, in case you didn't notice we had a strange person

1998
02:04:07,720 --> 02:04:10,000
walking in and sit down at our table here earlier.

1999
02:04:10,000 --> 02:04:21,449
I mean, people know Michael is with you and the economic

2000
02:04:21,449 --> 02:04:24,000
development is replacing Tom McCoy on board.

2001
02:04:24,000 --> 02:04:26,000
So we're happy to have you here.

2002
02:04:26,000 --> 02:04:27,000
I don't know.

2003
02:04:27,000 --> 02:04:29,939
Do you want to tell everybody what you do because I wouldn

2004
02:04:29,939 --> 02:04:31,000
't do it justice.

2005
02:04:31,000 --> 02:04:33,000
I'm the AVP of innovation and commercialization.

2006
02:04:33,000 --> 02:04:35,949
My job is to protect and commercialize intellectual

2007
02:04:35,949 --> 02:04:38,979
property developed by the faculty and staff and other

2008
02:04:38,979 --> 02:04:42,569
innovation programs such as developing mentoring students

2009
02:04:42,569 --> 02:04:44,760
who are building companies and launching them here in the

2010
02:04:44,760 --> 02:04:49,800
region and other projects as needed by the president or the

2011
02:04:49,800 --> 02:04:51,000
DPR or anyone else.

2012
02:04:51,000 --> 02:04:52,000
Great.

2013
02:04:52,000 --> 02:04:53,000
We're happy to have you on board.

2014
02:04:53,000 --> 02:04:54,000
Thanks.

2015
02:04:54,000 --> 02:04:55,000
Happy to be here.

2016
02:04:55,000 --> 02:04:56,000
All right.

2017
02:04:56,000 --> 02:05:00,000
Anybody have anything else we need to talk about.

2018
02:05:00,000 --> 02:05:03,000
You guys are letting me down.

2019
02:05:03,000 --> 02:05:05,000
It's supposed to remind me about the spring break meeting.

2020
02:05:05,000 --> 02:05:07,000
Spring break meeting.

2021
02:05:07,000 --> 02:05:10,000
I was I was baiting you on that.

2022
02:05:10,000 --> 02:05:13,819
We just wanted just everybody to see how all wise and all

2023
02:05:13,819 --> 02:05:16,000
knowing you are so we just went to hell.

2024
02:05:16,000 --> 02:05:17,000
It's like odds.

2025
02:05:17,000 --> 02:05:22,289
Is anybody else, Keely can't be here spring break and

2026
02:05:22,289 --> 02:05:25,000
Caroline cannot be here spring break.

2027
02:05:25,000 --> 02:05:28,000
Can anybody else out of town?

2028
02:05:28,000 --> 02:05:30,000
Maybe.

2029
02:05:30,000 --> 02:05:34,000
Looks like we need to postpone that meeting.

2030
02:05:34,000 --> 02:05:43,000
So to the following Wednesday.

2031
02:05:43,000 --> 02:05:46,000
That's in March.

2032
02:05:46,000 --> 02:05:52,000
What day is that Wednesday, March 21 a week later.

2033
02:05:52,000 --> 02:06:04,000
We are scheduled to have a wait.

2034
02:06:04,000 --> 02:06:06,000
Sorry.

2035
02:06:06,000 --> 02:06:08,000
Can we just get staff to double check.

2036
02:06:08,000 --> 02:06:10,939
I don't get some mobility committee on my schedule that day

2037
02:06:10,939 --> 02:06:12,000
at 1130.

2038
02:06:12,000 --> 02:06:16,319
I don't know if that is standing or that is just something

2039
02:06:16,319 --> 02:06:21,000
on my calendar that hasn't gotten canceled yet.

2040
02:06:21,000 --> 02:06:23,000
Okay.

2041
02:06:23,000 --> 02:06:25,000
Because mobility is recorded.

2042
02:06:25,000 --> 02:06:29,000
So it's in here.

2043
02:06:29,000 --> 02:06:30,000
Okay.

2044
02:06:30,000 --> 02:06:33,180
So if we could, I mean, everybody's generally in favor of

2045
02:06:33,180 --> 02:06:36,000
finding a different date besides the 13th.

2046
02:06:36,000 --> 02:06:42,000
So 14th will not meet on the 14th.

2047
02:06:42,000 --> 02:06:46,130
But please keep an eye out for further information about

2048
02:06:46,130 --> 02:06:49,000
times and locations for the following.

2049
02:06:49,000 --> 02:06:52,000
Alternative dates.

2050
02:06:52,000 --> 02:06:55,270
We'll keep we'll shoot for keeping it on the Wednesday, but

2051
02:06:55,270 --> 02:07:01,000
it's going to depend on available rooms.

2052
02:07:01,000 --> 02:07:04,560
If you have it in a different room, I can run back and

2053
02:07:04,560 --> 02:07:05,000
forth.

2054
02:07:05,000 --> 02:07:06,000
I can vote for her.

2055
02:07:06,000 --> 02:07:09,000
I'm sure it's her proxy.

2056
02:07:09,000 --> 02:07:13,859
Well, may determine what kind of we have some staff things

2057
02:07:13,859 --> 02:07:17,000
to look at that may not be pressing.

2058
02:07:17,000 --> 02:07:20,479
All right. But do you have anything else for the good of

2059
02:07:20,479 --> 02:07:21,000
the order?

2060
02:07:21,000 --> 02:07:25,340
We will adjourn our economic development partnership board

2061
02:07:25,340 --> 02:07:29,000
meeting and we will move into our tours.

2062
02:07:29,000 --> 02:07:32,000
Number two board meeting.

2063
02:07:47,000 --> 02:07:57,000
[BLANK_AUDIO]