WEBVTT 00:00:30.000 --> 00:00:46.000 [ Silence ] 00:01:00.000 --> 00:01:26.000 [ Silence ] 00:01:30.000 --> 00:01:58.000 [ Silence ] 00:01:58.000 --> 00:02:26.000 [ Silence ] 00:02:26.000 --> 00:02:50.000 [ Silence ] 00:02:50.000 --> 00:03:10.000 [ Silence ] 00:03:10.000 --> 00:03:30.000 [ Silence ] 00:03:30.000 --> 00:03:50.000 [ Silence ] 00:03:50.000 --> 00:04:10.000 [ Silence ] 00:04:10.000 --> 00:04:26.000 [ Silence ] 00:04:26.000 --> 00:04:46.000 [ Silence ] 00:04:46.000 --> 00:05:06.000 [ Silence ] 00:05:06.000 --> 00:05:26.000 [ Silence ] 00:05:26.000 --> 00:05:46.000 [ Silence ] 00:05:46.000 --> 00:06:06.000 [ Silence ] 00:06:06.000 --> 00:06:26.000 [ Silence ] 00:06:26.000 --> 00:06:46.000 [ Silence ] 00:06:46.000 --> 00:07:06.000 [ Silence ] 00:07:06.000 --> 00:07:26.000 [ Silence ] 00:07:26.000 --> 00:07:46.000 [ Silence ] 00:07:46.000 --> 00:08:06.000 [ Silence ] 00:08:06.000 --> 00:08:26.000 [ Silence ] 00:08:26.000 --> 00:08:46.000 [ Silence ] 00:08:46.000 --> 00:09:06.000 [ Silence ] 00:09:06.000 --> 00:09:26.000 [ Silence ] 00:09:26.000 --> 00:09:46.000 [ Silence ] 00:09:46.000 --> 00:10:06.000 [ Silence ] 00:10:06.000 --> 00:10:26.000 [ Silence ] 00:10:26.000 --> 00:10:46.000 [ Silence ] 00:10:46.000 --> 00:11:06.000 [ Silence ] 00:11:06.000 --> 00:11:26.000 [ Silence ] 00:11:26.000 --> 00:11:46.000 [ Silence ] 00:11:46.000 --> 00:12:06.000 [ Silence ] 00:12:06.000 --> 00:12:26.000 [ Silence ] 00:12:26.000 --> 00:12:46.000 [ Silence ] 00:12:46.000 --> 00:13:06.000 [ Silence ] 00:13:06.000 --> 00:13:26.000 [ Silence ] 00:13:26.000 --> 00:13:46.000 [ Silence ] 00:13:46.000 --> 00:14:06.000 [ Silence ] 00:14:06.000 --> 00:14:26.000 [ Silence ] 00:14:26.000 --> 00:14:46.000 [ Silence ] 00:14:46.000 --> 00:15:06.000 [ Silence ] 00:15:06.000 --> 00:15:26.000 [ Silence ] 00:15:26.000 --> 00:15:46.000 [ Silence ] 00:15:46.000 --> 00:16:06.000 [ Silence ] 00:16:06.000 --> 00:16:26.000 [ Silence ] 00:16:26.000 --> 00:16:46.000 [ Silence ] 00:16:46.000 --> 00:17:06.000 [ Silence ] 00:17:06.000 --> 00:17:18.000 [ Silence ] 00:17:18.000 --> 00:17:19.000 >> Good afternoon. 00:17:19.000 --> 00:17:22.109 I'm going to be talking to you today about total impact, 00:17:22.109 --> 00:17:25.000 and this is a model that we've recently implemented. 00:17:25.000 --> 00:17:27.539 And I'll be giving you a general overview, and you're going 00:17:27.539 --> 00:17:31.000 to be looking at this model for two of the projects today. 00:17:31.000 --> 00:17:34.000 [ Silence ] 00:17:34.000 --> 00:17:37.250 So a lot of the members here are new, so I just wanted -- 00:17:37.250 --> 00:17:41.000 thought it was important to point out the prior practice. 00:17:41.000 --> 00:17:45.039 So the prior practice was performed by myself using various 00:17:45.039 --> 00:17:48.789 scenarios, and these were entered into an Excel spreadsheet 00:17:48.789 --> 00:17:52.250 , basically how much the company would receive, what 00:17:52.250 --> 00:17:55.240 percentage, and what that would look like over a term, and 00:17:55.240 --> 00:17:59.000 then also the revenue to the city over that same term. 00:17:59.000 --> 00:18:02.720 I also used a model from UNT's Center for Economic 00:18:02.720 --> 00:18:06.769 Development and Research, and that took into account annual 00:18:06.769 --> 00:18:09.960 payroll, discretionary income, and added a multiplier to 00:18:09.960 --> 00:18:12.000 come out with the sales tax impact. 00:18:12.000 --> 00:18:14.000 And that's a bit antiquated. 00:18:14.000 --> 00:18:18.000 This was used -- it came about when Terry Clower was here. 00:18:18.000 --> 00:18:31.170 And then also used JobZQ. This is a labor tool that we use 00:18:31.170 --> 00:18:33.490 that has a very minor way to calculate indirect and induced 00:18:33.490 --> 00:18:34.000 labor. 00:18:34.000 --> 00:18:35.000 And that was the prior practice. 00:18:35.000 --> 00:18:38.920 And then this is total impact, and this summarizes some of 00:18:38.920 --> 00:18:42.000 the things that we can do with total impact. 00:18:42.000 --> 00:18:46.000 It's an Austin-based from Impact Data Source tool. 00:18:46.000 --> 00:18:49.029 And it's specific to economic development, and it's fully 00:18:49.029 --> 00:18:50.000 customizable. 00:18:50.000 --> 00:18:53.579 We brought our finest department in, our utility 00:18:53.579 --> 00:18:55.000 departments in. 00:18:55.000 --> 00:18:58.000 We had it customized to include our turfs. 00:18:58.000 --> 00:19:00.410 We did a lot of work to make it unique and customized to 00:19:00.410 --> 00:19:01.000 Denton. 00:19:01.000 --> 00:19:04.900 And then it's able to perform economic and fiscal impact 00:19:04.900 --> 00:19:08.000 analysis as well as incentive analysis. 00:19:08.000 --> 00:19:10.000 And it's very inefficient. 00:19:10.000 --> 00:19:16.000 I'm not pulling from three different things. It's all in 00:19:16.000 --> 00:19:16.000 one. 00:19:16.000 --> 00:19:18.000 So now we're going to look at an event. 00:19:18.000 --> 00:19:21.000 An event can be an expansion or a contraction. 00:19:21.000 --> 00:19:23.000 So that would be a new company or a closure for it. 00:19:23.000 --> 00:19:25.789 But for this discussion, we're going to talk about a new or 00:19:25.789 --> 00:19:27.000 expansion project. 00:19:27.000 --> 00:19:30.230 So economic impact, the direct impact would be the jobs and 00:19:30.230 --> 00:19:33.000 the sales output directly created by the event. 00:19:33.000 --> 00:19:36.630 So if a company came in with 75 employees, your direct 00:19:36.630 --> 00:19:39.000 impact would be 75 employees. 00:19:39.000 --> 00:19:42.000 And then we're going to look at the ripple effects. 00:19:42.000 --> 00:19:45.000 So under the ripple effects, we have our indirect impact, 00:19:45.000 --> 00:19:48.150 the jobs and sales output, companies supplying goods and 00:19:48.150 --> 00:19:50.000 services to the new expanded industry. 00:19:50.000 --> 00:19:53.220 And this would be in the case of maybe a new construction 00:19:53.220 --> 00:19:56.349 firm comes in and they're buying steel from a local 00:19:56.349 --> 00:19:59.319 supplier, or they might use a local accounting firm for 00:19:59.319 --> 00:20:00.000 services. 00:20:00.000 --> 00:20:03.700 And then we go on to the induced impact, the jobs and sales 00:20:03.700 --> 00:20:06.650 output created when new employees from the new or expanded 00:20:06.650 --> 00:20:08.000 firm spend their wages at local establishments. 00:20:08.000 --> 00:20:11.980 An example would be on a restaurant that is caused to hire 00:20:11.980 --> 00:20:16.109 more employees because of maybe a new manufacturing plant 00:20:16.109 --> 00:20:18.000 or other development. 00:20:18.000 --> 00:20:21.319 And then the fiscal impacts, we've got the tax revenue that 00:20:21.319 --> 00:20:24.000 's generated by the new or expanded project. 00:20:24.000 --> 00:20:26.000 This could include businesses and households. 00:20:26.000 --> 00:20:29.150 So you assume that a certain number of workers that are 00:20:29.150 --> 00:20:32.299 relocating are going to purchase households, and the model 00:20:32.299 --> 00:20:33.000 takes that into account. 00:20:33.000 --> 00:20:36.440 And then the demand on government services, so your police, 00:20:36.440 --> 00:20:39.940 your fire, your libraries, for example, and then the cost 00:20:39.940 --> 00:20:42.000 for providing utility services. 00:20:42.000 --> 00:20:45.000 And this is the first time we've been able to capture that. 00:20:45.000 --> 00:20:47.470 So we're really excited about getting able to look at that 00:20:47.470 --> 00:20:48.000 as well. 00:20:48.000 --> 00:20:50.000 Erica, I have a question. 00:20:50.000 --> 00:20:52.410 Would you prefer we wait until the end or as you're going 00:20:52.410 --> 00:20:53.000 through? 00:20:53.000 --> 00:20:54.000 It's fine. 00:20:54.000 --> 00:21:00.140 Okay. In looking at this project or this software, it 00:21:00.140 --> 00:21:06.279 impresses me that you have to input quite a bit of data in 00:21:06.279 --> 00:21:13.119 order to allow for these economic impacts to show the 00:21:13.119 --> 00:21:15.000 actual effect. 00:21:15.000 --> 00:21:19.140 So can you give us an idea of what kind of data you have to 00:21:19.140 --> 00:21:24.000 input into the system before the system becomes relevant? 00:21:24.000 --> 00:21:27.559 Sure. We've got a project data page, and you can put a 00:21:27.559 --> 00:21:29.000 summary description. 00:21:29.000 --> 00:21:32.170 You'll see that on your one page summaries. It'll print out 00:21:32.170 --> 00:21:33.000 for you. 00:21:33.000 --> 00:21:36.319 You put in if it's in a TURS, if it's not in a TURS, if it 00:21:36.319 --> 00:21:40.000 's a new development, a relocation, or if it's an expansion, 00:21:40.000 --> 00:21:42.000 if they already exist here in the city. 00:21:42.000 --> 00:21:45.779 So there's different forms for that that populate based on 00:21:45.779 --> 00:21:47.000 what you check. 00:21:47.000 --> 00:21:50.000 You enter the valuation, the estimated valuation. 00:21:50.000 --> 00:21:52.880 If they're already locating here, you enter their current 00:21:52.880 --> 00:21:54.000 valuation as well. 00:21:54.000 --> 00:21:56.000 Property valuation. 00:21:56.000 --> 00:21:58.000 So that would be your ad valorem. 00:21:58.000 --> 00:22:03.450 It has inputs for the amount of sales, sales taxes spent by 00:22:03.450 --> 00:22:05.000 the company. 00:22:05.000 --> 00:22:09.170 It also has inputs for the number of out of town guests 00:22:09.170 --> 00:22:13.599 that you may have for trainings or just to come in and view 00:22:13.599 --> 00:22:15.000 the facility. 00:22:15.000 --> 00:22:17.440 So it's trying to do the heads and beds and calculate some 00:22:17.440 --> 00:22:19.000 of those impacts for sales tax. 00:22:19.000 --> 00:22:21.930 That's where some of the multipliers come in. Jobs, of 00:22:21.930 --> 00:22:23.000 course. 00:22:23.000 --> 00:22:25.299 You enter the jobs and you're able to do it at 10 year 00:22:25.299 --> 00:22:26.000 increments. 00:22:26.000 --> 00:22:29.970 So we set up our model for 10 years and you can add the 00:22:29.970 --> 00:22:32.000 jobs as they come online. 00:22:32.000 --> 00:22:33.000 Same with the value. 00:22:33.000 --> 00:22:36.000 So you might have improvements and then BPP. 00:22:36.000 --> 00:22:38.039 They might be having an expansion for your business 00:22:38.039 --> 00:22:39.000 personal property. 00:22:39.000 --> 00:22:41.000 You might see it come on in later years. 00:22:41.000 --> 00:22:44.579 So it takes into account a lot more than you can physically 00:22:44.579 --> 00:22:47.000 do just with an Excel spreadsheet. 00:22:47.000 --> 00:22:52.569 It takes a lot into the model and puts a really good output 00:22:52.569 --> 00:22:53.000 . 00:22:53.000 --> 00:22:55.000 And then you also have different sheets. 00:22:55.000 --> 00:22:57.000 And another one of the sheets is the public investment. 00:22:57.000 --> 00:23:00.000 So you can put in your DME revenue. 00:23:00.000 --> 00:23:03.559 You can also put in your permit fees, what your estimated 00:23:03.559 --> 00:23:04.000 permit fees are. 00:23:04.000 --> 00:23:08.000 And we use open counter to estimate that. 00:23:08.000 --> 00:23:12.170 And then it calculates all that and inputs it into the 00:23:12.170 --> 00:23:13.000 model. 00:23:13.000 --> 00:23:16.609 The question I'm having is kind of a fact checker kind of a 00:23:16.609 --> 00:23:21.180 deal where some people may come in with a lot of blue sky, 00:23:21.180 --> 00:23:24.000 you know, and very optimistic projections. 00:23:24.000 --> 00:23:25.000 Sure. 00:23:25.000 --> 00:23:27.730 So how do you make sure that we're not just, you know, 00:23:27.730 --> 00:23:29.000 drinking blue water? 00:23:29.000 --> 00:23:33.150 One of the things that we changed in our application, we 00:23:33.150 --> 00:23:36.000 used to have a Word document application. 00:23:36.000 --> 00:23:38.000 We now have an Excel application. 00:23:38.000 --> 00:23:40.000 We asked for your table. 00:23:40.000 --> 00:23:43.029 We have a separate table for your investment and then the 00:23:43.029 --> 00:23:45.000 table for your estimated value. 00:23:45.000 --> 00:23:48.680 And we do inform our applicants that they will be held to 00:23:48.680 --> 00:23:51.000 threshold based on that value. 00:23:51.000 --> 00:23:53.349 Now, your investment is where you show your leveraging 00:23:53.349 --> 00:23:56.000 because there are certain things that you want to include. 00:23:56.000 --> 00:23:58.730 It also includes your soft cost, your engineering, your 00:23:58.730 --> 00:24:01.000 grading, some of the other things in there. 00:24:01.000 --> 00:24:03.000 But it allows them to explain that. 00:24:03.000 --> 00:24:06.170 And while we still are looking at the valuation, what we 00:24:06.170 --> 00:24:09.000 think that will be the estimated valuation. 00:24:09.000 --> 00:24:12.000 Thank you very much. 00:24:12.000 --> 00:24:16.109 John, I also want to let you know, in addition to what 00:24:16.109 --> 00:24:20.599 Erica said about letting our applicants know that we need 00:24:20.599 --> 00:24:24.000 them to give us their best realistic projections, 00:24:24.000 --> 00:24:27.000 because that's going to be the basis for their contract. 00:24:27.000 --> 00:24:31.000 And there are thresholds that must be met per the contract. 00:24:31.000 --> 00:24:35.000 And if they are not, then incentives are not received. 00:24:35.000 --> 00:24:38.329 So it's a communication with the applicants from the 00:24:38.329 --> 00:24:42.000 beginning about what the expectation is as we help them get 00:24:42.000 --> 00:24:44.000 their application completed. 00:24:44.000 --> 00:24:45.000 Thank you very much. 00:24:45.000 --> 00:24:50.000 You're welcome. 00:24:50.000 --> 00:24:52.779 Now I'd like to talk about the fiscal impacts, the benefits 00:24:52.779 --> 00:24:53.000 . 00:24:53.000 --> 00:24:56.240 So you have your public tax revenue, your property tax, 00:24:56.240 --> 00:24:59.000 your sales tax, your hotel occupancy tax. 00:24:59.000 --> 00:25:03.009 And then you also have your other public revenue, your 00:25:03.009 --> 00:25:08.000 utility revenue, franchise fees, building permits and fees. 00:25:08.000 --> 00:25:11.059 And under the sales tax, you're looking at the business's 00:25:11.059 --> 00:25:15.380 taxable sales, the taxable spending by the business, labor 00:25:15.380 --> 00:25:20.579 spending, and then your out of town visitor sales that we 00:25:20.579 --> 00:25:22.000 mentioned. 00:25:22.000 --> 00:25:25.869 And then after the benefits, we look at the physical, the 00:25:25.869 --> 00:25:28.000 fiscal impacts of the costs. 00:25:28.000 --> 00:25:30.059 So you have your public costs, your cost of providing 00:25:30.059 --> 00:25:33.619 municipal services, and then your cost of providing utility 00:25:33.619 --> 00:25:35.000 services as well. 00:25:35.000 --> 00:25:37.000 And then, of course, the cost of your incentive. 00:25:37.000 --> 00:25:39.000 And that can vary and it can be layered. 00:25:39.000 --> 00:25:43.000 But property tax abatement, a rebate, meaning chapter 380 00:25:43.000 --> 00:25:45.000 on the rebate, a sales tax rebate. 00:25:45.000 --> 00:25:47.970 That can be both of your regular retail sales and your 00:25:47.970 --> 00:25:51.230 construction sales and use tax using the Texas Direct Pay 00:25:51.230 --> 00:25:52.000 Permit. 00:25:52.000 --> 00:25:55.390 And then we have a debt municipal electrics economic growth 00:25:55.390 --> 00:25:57.000 rider that we can add in. 00:25:57.000 --> 00:26:00.890 And that's over a period of five years based on how they 00:26:00.890 --> 00:26:05.000 qualify and the cash incentive if we decide to do that, 00:26:05.000 --> 00:26:10.000 especially in the case of the investment fund. 00:26:10.000 --> 00:26:13.869 And so we've looked at our benefits and we've looked at our 00:26:13.869 --> 00:26:18.000 costs and now we're going to talk about the net benefits. 00:26:18.000 --> 00:26:21.869 We're going to look at basically less the cost of the 00:26:21.869 --> 00:26:23.000 incentive. 00:26:23.000 --> 00:26:26.119 And in general, I mean, we can set our own parameters, but 00:26:26.119 --> 00:26:29.000 in general, the net benefits should be positive. 00:26:29.000 --> 00:26:31.000 I've included the sheet here. 00:26:31.000 --> 00:26:34.549 It's a little hard to read, but you see the subtotal 00:26:34.549 --> 00:26:37.000 benefits and the subtotal cost. 00:26:37.000 --> 00:26:39.000 And at the bottom of that, you see the net. 00:26:39.000 --> 00:26:42.000 We definitely want that to be positive. 00:26:42.000 --> 00:26:43.000 The rate of return. 00:26:43.000 --> 00:26:45.000 I'm going to show you an example in a second. 00:26:45.000 --> 00:26:48.190 But the larger the rate of return, the better it is for the 00:26:48.190 --> 00:26:50.000 city, the better deal it is. 00:26:50.000 --> 00:27:02.779 And then in general, the payback, the shorter the term, the 00:27:02.779 --> 00:27:10.000 better it is for the city as well. 00:27:10.000 --> 00:27:12.000 Okay. So here you have an example. 00:27:12.000 --> 00:27:15.000 This is actually was performed for a prospect. 00:27:15.000 --> 00:27:17.730 But you can see that this is also what you have in your 00:27:17.730 --> 00:27:21.000 backup for your other ones, but you have your in the first 00:27:21.000 --> 00:27:24.000 table here, you're showing your benefits. 00:27:24.000 --> 00:27:32.150 Then you're also showing your costs and then you're showing 00:27:32.150 --> 00:27:35.000 your net benefit. 00:27:35.000 --> 00:27:38.920 The other items I highlighted in my presentation are at the 00:27:38.920 --> 00:27:40.000 bottom here. 00:27:40.000 --> 00:27:44.319 So you'll see that you have your total incentives and then 00:27:44.319 --> 00:27:47.000 you have your incentive per job. 00:27:47.000 --> 00:27:51.000 Your rate of return and the payback period. 00:27:51.000 --> 00:27:53.000 And so you're looking for this. 00:27:53.000 --> 00:27:58.160 This is showing you the nexus of basically where these two 00:27:58.160 --> 00:28:04.000 intersect, both the incentive and then the payback period. 00:28:04.000 --> 00:28:07.549 Another thing that's important to note here on the top left 00:28:07.549 --> 00:28:11.299 is you'll see your jobs, your direct and your spinoff, your 00:28:11.299 --> 00:28:14.000 indirect and your induced is your spinoff. 00:28:14.000 --> 00:28:17.000 And then your salary and your investment. 00:28:17.000 --> 00:28:20.690 And then you can see a little highlight of the residential 00:28:20.690 --> 00:28:22.000 impacts as well. 00:28:22.000 --> 00:28:25.000 And it's based on how many? 4.4 homes. 00:28:25.000 --> 00:28:26.000 It's pretty conservative. 00:28:26.000 --> 00:28:28.000 That's one of the things we liked about this model. 00:28:28.000 --> 00:28:30.000 We actually looked at three models. 00:28:30.000 --> 00:28:34.000 Remy, ImPlan and Impact Data Source when we chose this one. 00:28:34.000 --> 00:28:45.049 And I believe that they were the most conservative and more 00:28:45.049 --> 00:28:51.000 realistic, less inflated. 00:28:51.000 --> 00:28:54.000 If anyone has any questions, I'd be happy to answer them. 00:28:54.000 --> 00:29:00.500 On the residential side, it estimates about 15% of the 199 00:29:00.500 --> 00:29:05.000 employees would relocate so that the other ones are coming. 00:29:05.000 --> 00:29:07.750 I mean, that's hard to know. Are they coming from people 00:29:07.750 --> 00:29:11.000 already here and robbing from another company? 00:29:11.000 --> 00:29:13.000 Well, we struggled with that. 00:29:13.000 --> 00:29:17.109 We actually inputted, both myself, Michelle and Christina, 00:29:17.109 --> 00:29:20.690 inputted at least two applications of incentives we've 00:29:20.690 --> 00:29:24.000 already done and one of them was Safran Labanol. 00:29:24.000 --> 00:29:27.000 And that was a case where it was 700 employees. 00:29:27.000 --> 00:29:30.559 So we had to look at two models, both ones that were 00:29:30.559 --> 00:29:34.000 because they relocated from the metro area. 00:29:34.000 --> 00:29:43.000 So we actually performed two models to look at both. 00:29:43.000 --> 00:29:47.000 Erica, I did have a question on this one here. 00:29:47.000 --> 00:29:50.009 Under where you put residential investment, excuse me, 00:29:50.009 --> 00:29:53.000 development, what does that 4.4 homes means? 00:29:53.000 --> 00:29:55.269 That's how many they're thinking from based on the number 00:29:55.269 --> 00:29:57.000 of workers that are going to buy a home. 00:29:57.000 --> 00:30:01.000 It's very conservative. There may be a lot more. 00:30:01.000 --> 00:30:04.000 They also use, but I didn't mention, I mentioned the AIS, 00:30:04.000 --> 00:30:07.509 they use Remy multipliers, but they base it on industry 00:30:07.509 --> 00:30:08.000 code. 00:30:08.000 --> 00:30:11.029 So I select an industry code and they base some of their 00:30:11.029 --> 00:30:13.000 outputs based on that as well. 00:30:13.000 --> 00:30:18.400 So in this scenario, you have 125 direct jobs created by 00:30:18.400 --> 00:30:24.230 this incentive, okay, with an average salary of $76,000, 00:30:24.230 --> 00:30:30.000 but you're only producing 4.4 homes purchased? 00:30:30.000 --> 00:30:32.000 That's new homes. 00:30:32.000 --> 00:30:33.000 New homes? 00:30:33.000 --> 00:30:34.000 Yes, sir. 00:30:34.000 --> 00:30:38.230 But it doesn't take into the effect building new homes or 00:30:38.230 --> 00:30:41.000 just purchasing existing homes. 00:30:41.000 --> 00:30:44.769 I'm just trying to get an idea of how many homes are going 00:30:44.769 --> 00:30:49.279 to be purchased by these 125 employees that are quote reloc 00:30:49.279 --> 00:30:50.000 ating or? 00:30:50.000 --> 00:30:51.000 Right. 00:30:51.000 --> 00:30:53.000 John, we will find out for you, okay? 00:30:53.000 --> 00:31:00.000 Okay, we'll get the definition from the big book of codes. 00:31:00.000 --> 00:31:03.000 I'm looking at it right now actually. 00:31:03.000 --> 00:31:07.029 If I read this right, the estimate is that 30 workers will 00:31:07.029 --> 00:31:08.000 relocate. 00:31:08.000 --> 00:31:14.160 So the other 120, other 4.4 homes and 29.9 workers reloc 00:31:14.160 --> 00:31:15.000 ating. 00:31:15.000 --> 00:31:16.000 I see it. 00:31:16.000 --> 00:31:19.000 And that's an estimate based on somebody's numbers. 00:31:19.000 --> 00:31:21.000 Okay. 00:31:21.000 --> 00:31:23.990 Of those 30 people that are relocating, they're going to 00:31:23.990 --> 00:31:25.000 buy a home here. 00:31:25.000 --> 00:31:28.000 If you're relocating from Flaremount, you may commute. 00:31:28.000 --> 00:31:30.000 That makes sense. 00:31:30.000 --> 00:31:32.940 So I guess a lot of this relocating depends on if I'm 00:31:32.940 --> 00:31:36.299 moving from Alaska and bringing all my people down here or 00:31:36.299 --> 00:31:39.000 I'm coming from Dallas and moving up here. 00:31:39.000 --> 00:31:40.000 Right. 00:31:40.000 --> 00:31:43.769 And just as a general comment, this company has developed 00:31:43.769 --> 00:31:47.799 proprietary formulas based on Department of Commerce data, 00:31:47.799 --> 00:31:49.000 the RIMS data. 00:31:49.000 --> 00:31:52.160 So there are things that calculate in the background based 00:31:52.160 --> 00:31:55.000 on their proprietary research and development. 00:31:55.000 --> 00:31:59.000 And I also want to point out that this is a program that's 00:31:59.000 --> 00:32:03.000 used by many, many, many communities and economic 00:32:03.000 --> 00:32:05.650 development corporations, especially in Texas because it's 00:32:05.650 --> 00:32:07.000 a Texas-based company. 00:32:07.000 --> 00:32:11.700 But they're very thorough in their development of their 00:32:11.700 --> 00:32:16.700 models and they're tested in the marketplace through use by 00:32:16.700 --> 00:32:18.000 other EDCs. 00:32:18.000 --> 00:32:19.000 Thank you. 00:32:19.000 --> 00:32:23.410 We're upgrading our model based on the most recent data 00:32:23.410 --> 00:32:25.000 model out there. 00:32:25.000 --> 00:32:27.000 Absolutely. Yes. 00:32:27.000 --> 00:32:28.000 And we can continue to customize it. 00:32:28.000 --> 00:32:32.000 I've got an ongoing list for the next time we update it. 00:32:32.000 --> 00:32:35.000 Things I'd like to see. 00:32:35.000 --> 00:32:40.000 Anybody have any more questions or comments? 00:32:40.000 --> 00:32:44.000 All right. Thank you. 00:32:44.000 --> 00:32:50.220 Our next item is an incentive request, an application item 00:32:50.220 --> 00:32:53.000 number 18 0 1 0. 00:32:53.000 --> 00:32:56.079 Receive a report and hold a discussion regarding an 00:32:56.079 --> 00:33:00.000 incentive application from the United States cold storage. 00:33:00.000 --> 00:33:22.000 Caroline will present that. 00:33:22.000 --> 00:33:27.029 Okay, we do have an incentive request from United States 00:33:27.029 --> 00:33:32.470 cold storage and we have a representative from U.S. cold in 00:33:32.470 --> 00:33:35.000 the room with us here, Tim Franciscus. 00:33:35.000 --> 00:33:39.000 And he's been working on this project from the beginning, 00:33:39.000 --> 00:33:43.119 which actually our first contact with U.S. cold storage was 00:33:43.119 --> 00:33:48.390 in January of 2017 when chamber staff received a call from 00:33:48.390 --> 00:33:51.000 a broker about a project. 00:33:51.000 --> 00:33:54.779 And starting at that point, it moved into the economic 00:33:54.779 --> 00:33:58.670 development partnership process of collaboration and 00:33:58.670 --> 00:34:02.680 helping get questions answered and due diligence done for 00:34:02.680 --> 00:34:05.000 the potential location project. 00:34:05.000 --> 00:34:07.000 And here we are today. 00:34:07.000 --> 00:34:09.820 So I'm going to give you some details about the company 00:34:09.820 --> 00:34:12.000 itself and then about their request. 00:34:12.000 --> 00:34:18.030 And Tim is available to answer specific questions from the 00:34:18.030 --> 00:34:23.780 company's side if that's something that any of you would 00:34:23.780 --> 00:34:26.000 like for him to do. 00:34:26.000 --> 00:34:28.000 All right. We'll start with the background. 00:34:28.000 --> 00:34:31.059 So U.S. cold storage provides their clients with refriger 00:34:31.059 --> 00:34:34.000 ated and frozen food warehousing and transportation. 00:34:34.000 --> 00:34:38.090 They've got 38 facilities in 13 states and about 2500 00:34:38.090 --> 00:34:39.000 employees. 00:34:39.000 --> 00:34:43.719 Some of their current customers at their facilities include 00:34:43.719 --> 00:34:48.690 well-known brands like Kraft, Kellogg's, Coma, Unilever, 00:34:48.690 --> 00:34:53.000 and Butterball among many other types of clients. 00:34:53.000 --> 00:34:56.659 They do have four existing facilities in the DFW Metroplex 00:34:56.659 --> 00:35:00.460 in Arlington, Dallas, and Fort Worth with a total of 32 00:35:00.460 --> 00:35:02.000 million cubic feet. 00:35:02.000 --> 00:35:05.039 And these facilities, one thing that I learned in the 00:35:05.039 --> 00:35:08.579 process of researching is that these facilities, they build 00:35:08.579 --> 00:35:11.000 them and they use them for a long time. 00:35:11.000 --> 00:35:15.000 We're talking 30, 40 years in these locations. 00:35:15.000 --> 00:35:19.170 The company began in 1899, which is kind of cool, as 00:35:19.170 --> 00:35:23.409 American Ice Company and then were renamed to U.S. Cold 00:35:23.409 --> 00:35:28.309 Storage in the 1920s and became a wholly owned subsidiary 00:35:28.309 --> 00:35:31.000 of John Swyer and Sons in 1982. 00:35:31.000 --> 00:35:37.250 The project itself that's being considered for Denton, and 00:35:37.250 --> 00:35:41.119 I do want to emphasize at this point that the information 00:35:41.119 --> 00:35:44.960 that you have is the best information that the company can 00:35:44.960 --> 00:35:47.000 provide to us at this point. 00:35:47.000 --> 00:35:50.880 Things are still a little bit preliminary, so we're giving 00:35:50.880 --> 00:35:54.599 you the best information that we have at this date and time 00:35:54.599 --> 00:35:55.000 . 00:35:55.000 --> 00:35:58.480 They're considering 6 million cubic feet of refrigerated 00:35:58.480 --> 00:36:02.699 warehouse with 2,500 pallet positions on a 40-acre site on 00:36:02.699 --> 00:36:06.170 Jim Crystal Road, which is inside the West Park TURS, and 00:36:06.170 --> 00:36:08.000 you'll see a map of that in a minute. 00:36:08.000 --> 00:36:12.000 Their land sale did close on February 2nd. 00:36:12.000 --> 00:36:15.579 The plan for the facility is to offer several different 00:36:15.579 --> 00:36:19.860 types of storage, case picking, repacking, distribution and 00:36:19.860 --> 00:36:23.969 transportation solutions for food production facilities in 00:36:23.969 --> 00:36:26.000 the U.S. and in Mexico. 00:36:26.000 --> 00:36:29.949 Their preliminary plans do provide for rail service at the 00:36:29.949 --> 00:36:33.730 site and export services to Mexico, cooler and freezer 00:36:33.730 --> 00:36:38.000 storage, of course, and some on-site customer offices. 00:36:38.000 --> 00:36:42.340 And their plan right now is to use eco-friendly refriger 00:36:42.340 --> 00:36:47.340 ation technology and include industry-leading safeguards for 00:36:47.340 --> 00:36:49.000 the environment. 00:36:49.000 --> 00:36:53.630 You can see here a picture of one of their existing 00:36:53.630 --> 00:36:59.039 facilities in Dallas over there, and then this is their USC 00:36:59.039 --> 00:37:02.000 S Denton site on Jim Crystal Road. 00:37:02.000 --> 00:37:07.059 Let's see if I can get my mouse there. Jim Crystal Road 00:37:07.059 --> 00:37:12.780 right here, Western Boulevard right here, and the railroad 00:37:12.780 --> 00:37:15.000 track is right here. 00:37:15.000 --> 00:37:21.199 Any questions about that? Everybody know right where that 00:37:21.199 --> 00:37:22.000 is? 00:37:22.000 --> 00:37:31.000 The pond will be drained. 00:37:31.000 --> 00:37:35.440 All right. So the project itself in terms of investment and 00:37:35.440 --> 00:37:38.500 jobs, the company is going to be making an approximately $ 00:37:38.500 --> 00:37:42.969 34 million investment, which is going to add $28 million in 00:37:42.969 --> 00:37:44.000 new value. 00:37:44.000 --> 00:37:46.929 And for those of y'all on the board who are new and this is 00:37:46.929 --> 00:37:49.889 the first time you've seen one of these projects and the 00:37:49.889 --> 00:37:53.130 application and the information that we bring to you, the 00:37:53.130 --> 00:37:56.849 investment can include soft costs, other things that don't 00:37:56.849 --> 00:37:58.000 add additional value. 00:37:58.000 --> 00:38:01.610 But we want to communicate to you the complete picture of 00:38:01.610 --> 00:38:05.130 how much money the company is going to spend versus what 00:38:05.130 --> 00:38:07.000 the additional value is. 00:38:07.000 --> 00:38:10.690 They plan to create 44 new jobs in the first year of 00:38:10.690 --> 00:38:14.809 operations and then have 67 new jobs by the third year of 00:38:14.809 --> 00:38:16.000 operations. 00:38:16.000 --> 00:38:20.639 Average salary is a little bit over $36,000, and they do 00:38:20.639 --> 00:38:24.000 offer benefits to their full-time employees. 00:38:24.000 --> 00:38:28.170 And my understanding is that the vast majority of their 00:38:28.170 --> 00:38:33.000 employees are full-time and therefore benefits eligible. 00:38:33.000 --> 00:38:36.190 Again, the company is estimating at this point that they 00:38:36.190 --> 00:38:39.579 would be a 1.5 megawatt per year power user from Denton 00:38:39.579 --> 00:38:43.710 Municipal Electric, and that would put them in the category 00:38:43.710 --> 00:38:46.000 of a top 25 customer for DME. 00:38:46.000 --> 00:38:51.630 And that would be comparable to the size and power usage of 00:38:51.630 --> 00:38:57.000 Aldi as a customer, the Aldi distribution center. 00:38:57.000 --> 00:39:00.090 So I forget that there are Aldi stores now to be specific 00:39:00.090 --> 00:39:01.000 about that. 00:39:01.000 --> 00:39:03.000 Please got a question. 00:39:03.000 --> 00:39:05.000 Yes, ma'am. 00:39:05.000 --> 00:39:07.000 Yeah, the other side is fine. 00:39:07.000 --> 00:39:09.750 There wasn't a breakdown and you said most of the jobs 00:39:09.750 --> 00:39:11.000 would be full-time. 00:39:11.000 --> 00:39:14.000 Do we have any kind of percentage on that? 00:39:14.000 --> 00:39:22.000 I'm going to say above 95% of employees are full-time. 00:39:22.000 --> 00:39:24.000 I'm looking at Tim. 00:39:24.000 --> 00:39:25.000 Yes, that's correct. 00:39:25.000 --> 00:39:27.000 We have no part-time employees that are down. 00:39:27.000 --> 00:39:29.000 So they're all full-time. 00:39:29.000 --> 00:39:31.000 All of our U.S. clothing companies are full-time employees. 00:39:31.000 --> 00:39:34.000 So that means they all qualify for benefits. 00:39:34.000 --> 00:39:35.000 Right. 00:39:35.000 --> 00:39:39.579 So for everybody out there in TV land, Tim said that almost 00:39:39.579 --> 00:39:45.000 all of their employees, except maybe, I don't know, one, no 00:39:45.000 --> 00:39:45.000 . 00:39:45.000 --> 00:39:47.000 Almost all of them are full-time. 00:39:47.000 --> 00:39:49.000 Thank you. 00:39:49.000 --> 00:39:51.000 Okay. 00:39:51.000 --> 00:39:55.000 So quick pro and con chart on the project here. 00:39:55.000 --> 00:39:58.000 You guys had a chance to look at this in your backup. 00:39:58.000 --> 00:40:00.000 It's not a target industry. 00:40:00.000 --> 00:40:03.000 They are adding a significant amount of new value. 00:40:03.000 --> 00:40:06.219 The majority of the jobs will be full-time and benefits 00:40:06.219 --> 00:40:07.000 eligible. 00:40:07.000 --> 00:40:10.000 The majority of the jobs are not high-skilled. 00:40:10.000 --> 00:40:13.000 Average salary is a little over $36,000. 00:40:13.000 --> 00:40:17.000 But that's below the Denton County average salary. 00:40:17.000 --> 00:40:21.519 They will be, as planned, a significant utility user for 00:40:21.519 --> 00:40:24.000 Denton Municipal Electric. 00:40:24.000 --> 00:40:27.909 Since this is a project in the TURZ zone, it will kick off 00:40:27.909 --> 00:40:30.000 Phase 2 of the TURZ improvements, 00:40:30.000 --> 00:40:34.000 which are improvements that run along Jim Crystal Road. 00:40:34.000 --> 00:40:36.760 However, if they're offered a tax abatement, that will 00:40:36.760 --> 00:40:39.179 reduce revenue that would go into the TURZ fund to 00:40:39.179 --> 00:40:44.000 reimburse the developer for those public improvement costs. 00:40:44.000 --> 00:40:45.000 Jim? 00:40:45.000 --> 00:40:49.000 Where did the $36,000 average salary come from? 00:40:49.000 --> 00:40:52.000 Is that market-based or is that? 00:40:52.000 --> 00:40:55.079 No, that's something that the applicant provides in their 00:40:55.079 --> 00:40:56.000 application. 00:40:56.000 --> 00:40:57.000 Oh. 00:40:57.000 --> 00:40:58.000 Yeah. 00:40:58.000 --> 00:41:00.000 Tim, would you like to come up, please? 00:41:00.000 --> 00:41:01.000 We can't. 00:41:01.000 --> 00:41:04.170 The folks, all the people watching at home, those hundreds 00:41:04.170 --> 00:41:07.000 of people want to hear what you say. 00:41:07.000 --> 00:41:12.179 I'm sorry, the only person I do know, my husband, is 00:41:12.179 --> 00:41:14.000 watching, so. 00:41:14.000 --> 00:41:22.000 Tim, come to the mic. 00:41:22.000 --> 00:41:24.269 Timothy Francis, Son with the United States Cold Storage, 00:41:24.269 --> 00:41:25.000 for the record. 00:41:25.000 --> 00:41:27.639 To answer the question about the salary, as part of the 00:41:27.639 --> 00:41:30.000 application, it asks for the hourly rate. 00:41:30.000 --> 00:41:34.699 Having said that, it doesn't calculate overtime, so I just 00:41:34.699 --> 00:41:38.449 have a $15 an hour rate, but our facility is typically 00:41:38.449 --> 00:41:41.000 running between 15% and 20% overtime. 00:41:41.000 --> 00:41:44.650 So the warehousement portion of this, it's probably, they 00:41:44.650 --> 00:41:48.000 're probably making between $45,000. 00:41:48.000 --> 00:41:50.860 But because of the way the application is set up, that's 00:41:50.860 --> 00:41:54.000 the number that, the calculation that you're getting. 00:41:54.000 --> 00:41:57.269 Did you, were you able to look at the local market to see 00:41:57.269 --> 00:42:00.000 what the average is for your type of work? 00:42:00.000 --> 00:42:03.639 We did an analysis back in 2016, actually went back to the 00:42:03.639 --> 00:42:07.639 end of 2015 for the Dallas-Fort Worth Metroplex, where our 00:42:07.639 --> 00:42:09.000 facilities were. 00:42:09.000 --> 00:42:11.000 And we currently have a pay scale in place. 00:42:11.000 --> 00:42:15.000 So there is a three-year, it's over, it's basically, they 00:42:15.000 --> 00:42:19.250 get an hour, $1.50 an hour more, and that's divided up 00:42:19.250 --> 00:42:21.000 amongst three years. 00:42:21.000 --> 00:42:24.980 So we are constantly analyzing the, you know, what the 00:42:24.980 --> 00:42:27.000 going rate is in the area. 00:42:27.000 --> 00:42:32.000 We'll do the same thing for Denton. 00:42:32.000 --> 00:42:34.000 Any other questions before I hand it back? 00:42:34.000 --> 00:42:39.280 I have questions, but it's about the building and energy 00:42:39.280 --> 00:42:40.000 use. 00:42:40.000 --> 00:42:41.730 So I don't know if there's another slide that addresses 00:42:41.730 --> 00:42:43.000 that, or if I should just ask him. 00:42:43.000 --> 00:42:45.139 It would probably be a good time to just talk about it 00:42:45.139 --> 00:42:46.000 since he's here. 00:42:46.000 --> 00:42:51.409 Okay, so in the, is your company building the LEED 00:42:51.409 --> 00:42:53.000 certified? 00:42:53.000 --> 00:42:55.000 Is that where I read that? 00:42:55.000 --> 00:42:57.000 Or is it just vested? 00:42:57.000 --> 00:43:00.210 Okay, so, but it does say that you're using eco-friendly 00:43:00.210 --> 00:43:02.000 refrigeration technology. 00:43:02.000 --> 00:43:04.940 Does that mean demand-side management, energy management 00:43:04.940 --> 00:43:06.000 type technology? 00:43:06.000 --> 00:43:09.860 We do have energy management technology, depending on the 00:43:09.860 --> 00:43:13.000 refrigeration company that we select to run the project. 00:43:13.000 --> 00:43:17.289 But we have, it's constantly monitored, and it is basically 00:43:17.289 --> 00:43:21.050 to run our refrigeration as efficiently and as eco-friendly 00:43:21.050 --> 00:43:22.000 as possible. 00:43:22.000 --> 00:43:24.739 Having said that, in Dallas, we do have what's called an 00:43:24.739 --> 00:43:26.000 ammonia cascade system, 00:43:26.000 --> 00:43:29.000 which cuts down significantly on the amount of ammonia, 00:43:29.000 --> 00:43:33.030 and also is just the most eco-friendly refrigeration system 00:43:33.030 --> 00:43:35.000 out there in our industry. 00:43:35.000 --> 00:43:37.000 So again, those things are all in consideration. 00:43:37.000 --> 00:43:39.880 We're still pretty early on in the game to know exactly 00:43:39.880 --> 00:43:42.000 what type of system will be in place. 00:43:42.000 --> 00:43:45.000 But that's what things that are being looked at. 00:43:45.000 --> 00:43:48.000 Do you have any plans to use renewable energy? 00:43:48.000 --> 00:43:50.949 I did notice that there was a lot of concrete on the top of 00:43:50.949 --> 00:43:52.000 your building. 00:43:52.000 --> 00:43:55.440 Actually, it's an insulation. We don't have any concrete on 00:43:55.440 --> 00:43:56.000 the top. 00:43:56.000 --> 00:44:00.849 So we do have limited, I guess, irrigation landscape that 00:44:00.849 --> 00:44:03.000 we use at our facility. 00:44:03.000 --> 00:44:05.449 And again, we typically in Dallas, I use Dallas as an 00:44:05.449 --> 00:44:06.000 example, 00:44:06.000 --> 00:44:09.440 we worked with the industrial park to make sure that 00:44:09.440 --> 00:44:13.000 everything fits in line with their restrictions. 00:44:13.000 --> 00:44:17.000 Okay. So I was very impressed to see that you've decreased 00:44:17.000 --> 00:44:18.000 your greenhouse gas emissions, 00:44:18.000 --> 00:44:20.360 and the things that you're saying are the ways that you're 00:44:20.360 --> 00:44:21.000 doing that. 00:44:21.000 --> 00:44:25.139 Yeah, just Unilever, if you look up Unilever as a worldwide 00:44:25.139 --> 00:44:26.000 company, 00:44:26.000 --> 00:44:30.070 they are extremely, you know, they require a lot of us at 00:44:30.070 --> 00:44:32.000 our facility in Covington, Tennessee. 00:44:32.000 --> 00:44:35.190 And so we learned a lot in that project, and we'll be 00:44:35.190 --> 00:44:38.000 rolling out some of those things in our new projects 00:44:38.000 --> 00:44:40.000 throughout the United States. 00:44:40.000 --> 00:44:41.000 Thank you so much. 00:44:41.000 --> 00:44:42.000 Sure. 00:44:52.000 --> 00:44:56.139 A quick overview about the West Park TURZ, again, since we 00:44:56.139 --> 00:44:58.000 have some new members here, 00:44:58.000 --> 00:45:01.000 and we've been referencing the West Park TURZ. 00:45:01.000 --> 00:45:06.000 It's an approximately 800 acre area north of Airport Road. 00:45:06.000 --> 00:45:10.000 And the TURZ itself took effect on January 1 of 2013, 00:45:10.000 --> 00:45:13.650 and the city and the county both contribute 40% of the ad 00:45:13.650 --> 00:45:18.179 valorem tax revenue into a fund that is then used to 00:45:18.179 --> 00:45:22.460 reimburse the developer of infrastructure improvements in 00:45:22.460 --> 00:45:23.000 the area. 00:45:23.000 --> 00:45:26.920 The current estimate for the TURZ is that it would generate 00:45:26.920 --> 00:45:31.000 $14.3 million into that fund over 25 years. 00:45:31.000 --> 00:45:36.389 The current fund balance is $230,000, and that is because 00:45:36.389 --> 00:45:40.679 the WENCO facility, distribution facility went in, actually 00:45:40.679 --> 00:45:43.000 came on partially onto the tax rolls. 00:45:43.000 --> 00:45:46.550 It's not fully valued yet, but we are seeing some money 00:45:46.550 --> 00:45:48.000 into that fund now. 00:45:48.000 --> 00:45:51.869 Speaking of WENCO, they did complete the Phase 1 00:45:51.869 --> 00:45:55.650 improvements, which ran along Western Boulevard, included 00:45:55.650 --> 00:45:59.000 water, wastewater, drainage, and road improvements. 00:45:59.000 --> 00:46:01.000 So those have been finished. 00:46:01.000 --> 00:46:04.469 And reimbursement of those expenses out of the TURZ fund is 00:46:04.469 --> 00:46:07.860 going to start this year, because, again, there's finally 00:46:07.860 --> 00:46:10.769 funds in the TURZ fund that can be used to complete or 00:46:10.769 --> 00:46:13.000 start that reimbursement process. 00:46:13.000 --> 00:46:16.199 Incentives that are given to companies that locate inside 00:46:16.199 --> 00:46:19.260 the TURZ reduce the amount of revenue that goes into the T 00:46:19.260 --> 00:46:22.219 URZ fund, which, again, is ultimately to be used to 00:46:22.219 --> 00:46:25.000 reimburse the infrastructure improvements that occur. 00:46:25.000 --> 00:46:28.900 So these are just the factors that we all need to keep in 00:46:28.900 --> 00:46:37.000 mind when we're talking about the TURZ. Questions? 00:46:37.000 --> 00:46:40.329 And then a quick touch on our policy for tax abatement and 00:46:40.329 --> 00:46:44.050 incentives that's in place currently, and we are discussing 00:46:44.050 --> 00:46:48.010 changes to it, but we are operating under the 2016 policy 00:46:48.010 --> 00:46:49.000 right now. 00:46:49.000 --> 00:46:53.699 Businesses may be considered for a tax abatement of 25% if 00:46:53.699 --> 00:46:57.940 at least $5 million in investment or value is met by the 00:46:57.940 --> 00:47:02.539 project. The length of the abatement can increase or can go 00:47:02.539 --> 00:47:07.139 higher with higher investment, but it may not exceed 10 00:47:07.139 --> 00:47:10.000 years, and that's by state law. 00:47:10.000 --> 00:47:14.699 Under the policy, the percentage of an abatement can 00:47:14.699 --> 00:47:20.130 increase in 5% increments for additional factors that make 00:47:20.130 --> 00:47:23.000 the project more desirable. 00:47:23.000 --> 00:47:26.730 So the request that we have from U.S. Cold Storage is for 00:47:26.730 --> 00:47:30.570 the maximum allowable incentive under the current policy, 00:47:30.570 --> 00:47:34.099 and they state in their cover letter that approval of tax 00:47:34.099 --> 00:47:37.710 incentives will go a long way in demonstrating community 00:47:37.710 --> 00:47:43.000 support to their parent company as they finalize 00:47:43.000 --> 00:47:51.000 construction plans for the project. 00:47:51.000 --> 00:47:53.360 So we start the analysis by looking at the current 00:47:53.360 --> 00:47:56.269 conditions, which is not going to take very long. The 00:47:56.269 --> 00:48:01.070 current valuation of the land is a little over $7,000 00:48:01.070 --> 00:48:05.519 because it has an agricultural exemption currently, and 00:48:05.519 --> 00:48:10.000 that brings in $45 a year in tax revenue to the city. 00:48:10.000 --> 00:48:13.730 So what we do next is look at the projected ad valorem 00:48:13.730 --> 00:48:17.769 valuation and revenue based on the information that's 00:48:17.769 --> 00:48:21.590 provided to us in the application, and we did use the 00:48:21.590 --> 00:48:26.000 market value for the estimated valuation of the land. 00:48:26.000 --> 00:48:28.960 Again, since it's an ag right now, we've got to have a 00:48:28.960 --> 00:48:31.000 different value to put in there. 00:48:31.000 --> 00:48:35.289 So you guys can read through that. It was in your backup, 00:48:35.289 --> 00:48:39.250 but I'm going to go ahead and kind of take you over to that 00:48:39.250 --> 00:48:44.000 far column about the estimated net annual city tax revenue. 00:48:44.000 --> 00:48:49.349 The bottom line down there is that we have $103,000 00:48:49.349 --> 00:48:54.130 available for incentives on this project, and the reason 00:48:54.130 --> 00:48:58.690 why is because we can't use land. We don't use anything 00:48:58.690 --> 00:49:03.000 that's generated by land to provide funds for incentives. 00:49:03.000 --> 00:49:10.369 So we're just looking at the revenue that's generated by 00:49:10.369 --> 00:49:18.000 the business personal property and the improvements. 00:49:18.000 --> 00:49:20.000 Questions about this chart? 00:49:20.000 --> 00:49:37.539 Ryan? Oh, yes, sir. I'm sorry. What about rollback? Erica, 00:49:37.539 --> 00:49:38.000 I'm going to ask you. He's asking about rollback. 00:49:38.000 --> 00:49:46.429 Rollback covers a period of five years, and that only goes 00:49:46.429 --> 00:49:51.000 to when the TERS was created. So it's not going to go 00:49:51.000 --> 00:49:51.000 before the TERS was created, essentially. Does that answer 00:49:51.000 --> 00:49:51.000 a question, Jim? 00:49:51.000 --> 00:49:55.920 Did we figure any of it into this, Lynn? So there's nothing 00:49:55.920 --> 00:49:58.000 , no rollback in it because of the TERS. 00:49:58.000 --> 00:50:03.239 Right. No rollback because of the TERS. Okay, so we ran our 00:50:03.239 --> 00:50:09.150 25, 30, and 35% tax abatement models. We also ran a model 00:50:09.150 --> 00:50:13.139 with construction sales and use tax only, and then we 00:50:13.139 --> 00:50:18.000 included the DME economic growth writer in all models. 00:50:18.000 --> 00:50:20.239 And I don't know if this is, I don't think this is 00:50:20.239 --> 00:50:23.019 something that I've talked with you board members about, 00:50:23.019 --> 00:50:25.500 and you may have heard about it in the past, but we're 00:50:25.500 --> 00:50:28.039 going to do a little refresher about what the economic 00:50:28.039 --> 00:50:30.000 growth writer is. 00:50:30.000 --> 00:50:33.690 When Denton Municipal Electric adopts, or when the City 00:50:33.690 --> 00:50:37.230 Council adopts the rate schedule for Denton Municipal 00:50:37.230 --> 00:50:41.139 Electric, there is a rate called the economic growth writer 00:50:41.139 --> 00:50:44.820 that's available to certain customers who meet a certain 00:50:44.820 --> 00:50:48.489 level of electric demand and whose load factor is greater 00:50:48.489 --> 00:50:51.000 than DME's system load factor. 00:50:51.000 --> 00:50:54.639 That just means there's a minimum threshold in a couple of 00:50:54.639 --> 00:50:58.329 areas that they have to meet. If they do meet that, their 00:50:58.329 --> 00:51:01.929 monthly billing demand is reduced on a sliding fee scale 00:51:01.929 --> 00:51:05.719 for five years, starting with 50% in year one and going 00:51:05.719 --> 00:51:08.000 down to 10% in year five. 00:51:08.000 --> 00:51:12.300 So every month there would be a discount to the bill. So 00:51:12.300 --> 00:51:16.230 that can, depending on electric usage, add up to a 00:51:16.230 --> 00:51:20.989 significant incentive for a company. And this is available 00:51:20.989 --> 00:51:25.670 to new customers and customers, existing customers adding 00:51:25.670 --> 00:51:27.000 new demand. 00:51:27.000 --> 00:51:28.000 Yes, ma'am. 00:51:28.000 --> 00:51:33.099 So is the monthly billing demand reduction, is that applied 00:51:33.099 --> 00:51:38.000 to the amount after that threshold or the total amount? 00:51:38.000 --> 00:51:39.000 It's the total amount. 00:51:39.000 --> 00:51:44.000 Okay, thank you. 00:51:44.000 --> 00:51:46.000 Did you have a question, Keel? 00:51:46.000 --> 00:51:48.000 Is it 50% off each month? 00:51:48.000 --> 00:51:55.000 Yes, in the first year, in year one. 00:51:55.000 --> 00:52:00.949 This is a summary chart of our analysis, and we started 00:52:00.949 --> 00:52:04.849 with some assumptions that we took from prior information 00:52:04.849 --> 00:52:08.000 that you guys saw in the slide presentation. 00:52:08.000 --> 00:52:12.170 And what we did was based on the current incentive policy, 00:52:12.170 --> 00:52:16.420 the level of investment that's being made, that equates to 00:52:16.420 --> 00:52:20.980 a six-year term, and we looked at this 25% abatement across 00:52:20.980 --> 00:52:27.000 a six-year term for a total of a little over $154,000 here. 00:52:27.000 --> 00:52:31.320 We also considered the construction sales and use tax reb 00:52:31.320 --> 00:52:35.659 ate, which is another tool that we have used on a couple of 00:52:35.659 --> 00:52:40.360 recent projects in the past, but the way that works is the 00:52:40.360 --> 00:52:45.000 company would source their construction and business 00:52:45.000 --> 00:52:49.000 personal property materials to Denton so that Denton would 00:52:49.000 --> 00:52:52.000 capture the sales tax that's associated with that. 00:52:52.000 --> 00:52:55.889 And then we would be able to rebate all or a portion of 00:52:55.889 --> 00:52:59.000 that because we captured it locally. 00:52:59.000 --> 00:53:03.000 So that equates to $132,000 in our estimate. 00:53:03.000 --> 00:53:06.650 And then there's the DME economic growth rider, which rolls 00:53:06.650 --> 00:53:09.940 out over five years, and in this case, based on demand 00:53:09.940 --> 00:53:14.000 estimates, would come out to about $300,000. 00:53:14.000 --> 00:53:20.530 And then, sorry, if we total all those up, that's $586,000 00:53:20.530 --> 00:53:25.000 kind of consideration that we have to work with. 00:53:25.000 --> 00:53:28.389 And then down there at the bottom, we show the net tax 00:53:28.389 --> 00:53:30.000 revenue to the city. 00:53:30.000 --> 00:53:34.010 And this is, again, just to the city, not into the TURS 00:53:34.010 --> 00:53:38.130 fund over those six years with that incentive scenario in 00:53:38.130 --> 00:53:39.000 place. 00:53:39.000 --> 00:53:41.000 Questions? 00:53:41.000 --> 00:53:42.000 Yes, ma'am. 00:53:42.000 --> 00:53:45.860 I do. About the economic growth rider, because I'm just now 00:53:45.860 --> 00:53:47.000 really learning about that. 00:53:47.000 --> 00:53:51.039 I knew that it was in our policy, but seeing it apply here, 00:53:51.039 --> 00:53:55.000 especially with a company who has extremely high use, 00:53:55.000 --> 00:53:59.599 I'm assuming that it's been evaluated and estimated that 00:53:59.599 --> 00:54:03.489 even with this, that will still cover the cost of our 00:54:03.489 --> 00:54:06.000 energy that we have to purchase. 00:54:06.000 --> 00:54:10.670 That's a calculation that's done on the DME side, and I don 00:54:10.670 --> 00:54:13.000 't want to speak for them. 00:54:13.000 --> 00:54:15.920 We have to contact them with the information about the 00:54:15.920 --> 00:54:19.000 usage that we get, and they make their calculation. 00:54:19.000 --> 00:54:22.300 So I would be glad to facilitate getting you an answer 00:54:22.300 --> 00:54:26.000 about that, but I cannot answer that question myself. 00:54:26.000 --> 00:54:29.670 So it is, even with the growth rider, are we covering the 00:54:29.670 --> 00:54:32.000 cost of provision of the energy? 00:54:32.000 --> 00:54:38.000 Okay, yeah, I will find out. Make a note real quick. 00:54:38.000 --> 00:54:43.099 Caroline, has U.S. Cold Storage looked at the electric 00:54:43.099 --> 00:54:47.000 calculations in agreement with the usage? 00:54:47.000 --> 00:54:49.730 They're reviewing all of that right now. Is that correct, 00:54:49.730 --> 00:54:51.000 Tim? Yes. 00:54:51.000 --> 00:54:53.239 They did their initial estimate when they made the 00:54:53.239 --> 00:54:56.000 application, but they're delving in further to that, 00:54:56.000 --> 00:55:00.000 and we've connected them with Den Municipal Electric to 00:55:00.000 --> 00:55:03.820 make sure they have the right folks to answer their 00:55:03.820 --> 00:55:05.000 questions. 00:55:05.000 --> 00:55:17.000 Any other questions? 00:55:17.000 --> 00:55:21.000 I'm sorry. Do you have a question before I move on? 00:55:21.000 --> 00:55:25.699 Yes, I needed some help reconciling the two numbers, please 00:55:25.699 --> 00:55:26.000 . 00:55:26.000 --> 00:55:29.219 I'm looking at the top incentives and the net revenue at 00:55:29.219 --> 00:55:33.219 the bottom, and I'm trying to understand what's going on 00:55:33.219 --> 00:55:34.000 there. 00:55:34.000 --> 00:55:39.030 Okay, so I had to do a little bit of squeezing onto one 00:55:39.030 --> 00:55:40.000 slide. 00:55:40.000 --> 00:55:45.949 So the revenue, the column says total, right? But the total 00:55:45.949 --> 00:55:51.000 for the net revenue is just that very bottom number, 00:55:51.000 --> 00:55:54.480 and then the total of the 25% abatement, the construction 00:55:54.480 --> 00:55:58.000 sales and use tax rebate, and the EGR, that totals to the $ 00:55:58.000 --> 00:55:59.000 5.86. 00:55:59.000 --> 00:56:03.019 Is that what your question is? Incentives are benefits 00:56:03.019 --> 00:56:05.000 given to the company. 00:56:05.000 --> 00:56:10.000 Okay, so benefits given to the company are $5.86 to $9.98. 00:56:10.000 --> 00:56:14.000 Collections to the city are $5.48 to $9.40. 00:56:14.000 --> 00:56:16.000 It's after the $5.86. 00:56:16.000 --> 00:56:20.000 Right, that's the net that we're getting. 00:56:20.000 --> 00:56:22.000 So the gross number would be larger? 00:56:22.000 --> 00:56:23.000 Yes. 00:56:23.000 --> 00:56:25.000 Thank you. That's the missing piece. 00:56:25.000 --> 00:56:26.000 Okay. 00:56:26.000 --> 00:56:36.000 The gross number would be 700? The $154.998 to $5.48? 00:56:36.000 --> 00:56:39.000 It'd be the $5.86 plus the $5.48. 00:56:39.000 --> 00:56:40.000 Yeah. 00:56:40.000 --> 00:56:42.000 No. 00:56:42.000 --> 00:56:45.000 No, it's the $5.48 plus the $155. 00:56:45.000 --> 00:56:55.000 Yeah. The other two are immaterial to the city's revenue. 00:56:55.000 --> 00:56:58.000 So if they're immaterial, then why are they presented here? 00:56:58.000 --> 00:57:02.000 Because they'll be a benefit to the company. 00:57:02.000 --> 00:57:07.860 The 25% abatement is revenue we're giving back to them for 00:57:07.860 --> 00:57:13.000 ad-horm taxes on the building only, not the land. 00:57:13.000 --> 00:57:15.389 Right. So when we're talking about the city, this is 00:57:15.389 --> 00:57:19.440 revenue that would go into the general fund. That's general 00:57:19.440 --> 00:57:21.000 fund revenue. 00:57:21.000 --> 00:57:23.829 The construction sales and use tax rebate, we're 00:57:23.829 --> 00:57:27.730 considering that at 100%. So we wouldn't receive any 00:57:27.730 --> 00:57:30.000 revenue from that particular. 00:57:30.000 --> 00:57:33.929 If we were only considering 50%, there would be revenue 00:57:33.929 --> 00:57:35.000 shown there. 00:57:35.000 --> 00:57:37.920 But we're really only talking about the ad valorem value 00:57:37.920 --> 00:57:40.000 that would go into the general fund. 00:57:40.000 --> 00:57:46.159 So for year one, though, the estimated gross revenue to the 00:57:46.159 --> 00:57:52.159 city from taxes is $116,000. We're going to give them $26, 00:57:52.159 --> 00:57:54.000 000, and then that's $91,000. 00:57:54.000 --> 00:57:57.349 That's how that number has arrived. The other two are 00:57:57.349 --> 00:58:02.000 coming from the construction rebate and the DME rider. 00:58:02.000 --> 00:58:05.000 So help me with the DME rider again, please. 00:58:05.000 --> 00:58:06.000 What it is or how it's-- 00:58:06.000 --> 00:58:07.000 Yes, please. 00:58:07.000 --> 00:58:10.260 Okay. So it's a reduction in the company's monthly demand 00:58:10.260 --> 00:58:14.280 billing. So they get their electric bill. It's reduced by 00:58:14.280 --> 00:58:15.000 half. 00:58:15.000 --> 00:58:19.119 The demand billing portion of the bill is reduced by half 00:58:19.119 --> 00:58:22.000 in the first year of the incentive. 00:58:22.000 --> 00:58:24.630 And then it goes down to being reduced by 40% in the second 00:58:24.630 --> 00:58:27.000 year, 30%, 20 and 10 in year five. 00:58:27.000 --> 00:58:28.000 Thank you. 00:58:28.000 --> 00:58:29.000 Yes. 00:58:29.000 --> 00:58:30.000 Yes, ma'am. 00:58:30.000 --> 00:58:33.000 Good questions. Anybody else? 00:58:33.000 --> 00:58:38.219 I have a question about the utilities again. Not 00:58:38.219 --> 00:58:41.809 necessarily electronic. I understand that question is going 00:58:41.809 --> 00:58:43.000 to be answered soon. 00:58:43.000 --> 00:58:51.179 But on the water usage, it says 7,000, like 722,000 GPM. Is 00:58:51.179 --> 00:58:55.139 that gallons per minute or how does--what does GPM mean? I 00:58:55.139 --> 00:58:57.000 have no idea. 00:58:57.000 --> 00:58:59.000 GPM is per month. 00:58:59.000 --> 00:59:02.679 Okay. And so on that, is that typical of an industrial user 00:59:02.679 --> 00:59:06.820 ? I'm not really sure of the water usage and can our system 00:59:06.820 --> 00:59:08.000 handle that? 00:59:08.000 --> 00:59:12.449 That is well within our system's ability to handle it and 00:59:12.449 --> 00:59:16.900 how it compares to other industrial users that we have on 00:59:16.900 --> 00:59:19.000 our system currently. 00:59:19.000 --> 00:59:22.239 I can't answer that specifically for you, but that is not 00:59:22.239 --> 00:59:25.000 going to be any kind of burden on our system. 00:59:25.000 --> 00:59:27.440 That's good. I appreciate it being in the application just 00:59:27.440 --> 00:59:28.000 so I have some-- 00:59:28.000 --> 00:59:32.730 Well, and thank you for mentioning that. That's a part of 00:59:32.730 --> 00:59:36.000 the application that we have recently changed and beefed up 00:59:36.000 --> 00:59:39.190 so that we can capture that information and share it with 00:59:39.190 --> 00:59:43.000 our utilities folks so that there are no surprises for them 00:59:43.000 --> 00:59:45.840 or, you know, that we can collaborate on looking at the 00:59:45.840 --> 00:59:47.000 project as a whole. 00:59:47.000 --> 00:59:52.710 What will the wastewater and the water usage be worth to 00:59:52.710 --> 00:59:54.000 the city? 00:59:54.000 --> 00:59:58.699 I'll have to get that information for you. We did not 00:59:58.699 --> 01:00:02.909 specifically run that for their cost and for the billing on 01:00:02.909 --> 01:00:07.110 that side of it because it's not significant enough that we 01:00:07.110 --> 01:00:11.210 would have to reach out to them for that, unlike the DME 01:00:11.210 --> 01:00:14.000 issue where there's a rider in play. 01:00:14.000 --> 01:00:16.500 That's why we asked them specifically. So if that's 01:00:16.500 --> 01:00:18.610 something you'd like me to check with our water and 01:00:18.610 --> 01:00:20.000 wastewater guys on, I can. 01:00:20.000 --> 01:00:23.150 I think we just need to recognize that it's an additional 01:00:23.150 --> 01:00:26.739 benefit to the city and revenue because it's a new business 01:00:26.739 --> 01:00:27.000 . 01:00:27.000 --> 01:00:30.780 Right. And the model, the total impact model, takes all of 01:00:30.780 --> 01:00:34.250 that into account. That's part of the reason why we wanted 01:00:34.250 --> 01:00:37.400 to have that model because there is a cost to providing 01:00:37.400 --> 01:00:41.869 those services, water and wastewater, but there's a benefit 01:00:41.869 --> 01:00:45.000 and offsetting billing that we're able to do. 01:00:45.000 --> 01:00:48.199 So that's why we like that model because it brings the 01:00:48.199 --> 01:00:50.000 whole picture together. 01:00:50.000 --> 01:00:53.000 Is the facility heavy water user? 01:00:53.000 --> 01:01:07.000 I don't believe that it is, but Tim says no. 01:01:07.000 --> 01:01:14.440 Okay. So Jim, Erica, she handed me sort of in the depth of 01:01:14.440 --> 01:01:18.059 our model, here's the page where it calculates all that. I 01:01:18.059 --> 01:01:21.000 don't know if you really want to see it, but it's here. 01:01:21.000 --> 01:01:24.630 And it's what goes into producing that one page summary of 01:01:24.630 --> 01:01:28.559 the project's cost and benefits. So the rates are put in 01:01:28.559 --> 01:01:32.860 the model and updated when they're changed with the budget 01:01:32.860 --> 01:01:34.000 each year. 01:01:34.000 --> 01:01:37.000 I think Tom has a question. 01:01:37.000 --> 01:01:39.000 Caroline. 01:01:39.000 --> 01:01:43.210 After serving on the on the public utility board for eight 01:01:43.210 --> 01:01:44.000 years. 01:01:44.000 --> 01:01:48.139 I was extremely impressed with how complex our financial 01:01:48.139 --> 01:01:52.610 operation as a city is. I think the average citizen doesn't 01:01:52.610 --> 01:01:56.530 appreciate what goes on here and what it takes to keep a 01:01:56.530 --> 01:01:59.000 city afloat and functioning. 01:01:59.000 --> 01:02:04.019 My question is this, and this is not a reflection on this 01:02:04.019 --> 01:02:09.000 particular company, but when giving incentives. 01:02:09.000 --> 01:02:13.940 Are we able to get a complete idea that we're not putting 01:02:13.940 --> 01:02:16.000 ourselves in the hole. 01:02:16.000 --> 01:02:19.690 Incentives to bring in new businesses are we satisfied that 01:02:19.690 --> 01:02:23.139 that is the result that we're achieving. That's why we 01:02:23.139 --> 01:02:26.519 wanted to develop a total impact model of our own that's 01:02:26.519 --> 01:02:30.199 fully customized to our city that takes into account all 01:02:30.199 --> 01:02:33.000 the municipal utilities that we provide and our franchise 01:02:33.000 --> 01:02:34.000 fees and all of that. 01:02:34.000 --> 01:02:37.619 That's all in the background. And, you know, that's 01:02:37.619 --> 01:02:41.110 important to us as a department to make sure that we're 01:02:41.110 --> 01:02:44.659 factoring all those things in so that when we look at the 01:02:44.659 --> 01:02:50.000 bottom line. What is the total benefit to the city. 01:02:50.000 --> 01:02:53.300 And that is not something that we were doing fully before 01:02:53.300 --> 01:02:56.659 we were able to get that model. So we still want to double 01:02:56.659 --> 01:02:59.739 check with our other methods. We want to talk to our 01:02:59.739 --> 01:03:03.179 departments. But what you're getting at is where we have 01:03:03.179 --> 01:03:04.000 moved. 01:03:04.000 --> 01:03:07.559 We're moving toward that and this program is a big part of 01:03:07.559 --> 01:03:10.000 it. Okay. 01:03:10.000 --> 01:03:14.110 So that was basically my question is that it's beautiful. I 01:03:14.110 --> 01:03:18.000 like it. It looks nice. 01:03:18.000 --> 01:03:20.250 But at the same time, we wouldn't make sure we pay our 01:03:20.250 --> 01:03:21.000 bills right. 01:03:21.000 --> 01:03:23.000 Absolutely. 01:03:23.000 --> 01:03:25.000 Well, that's where the net. 01:03:25.000 --> 01:03:28.920 After the incentives are given out in three different ways 01:03:28.920 --> 01:03:33.000 the net to us over six years is still $550,000. 01:03:33.000 --> 01:03:38.389 But my question was that we're receiving that but does that 01:03:38.389 --> 01:03:44.000 make sure that we don't have any deficiencies elsewhere. 01:03:44.000 --> 01:03:46.760 We feel confident that I mean, and that's what I wanted to 01:03:46.760 --> 01:03:47.000 hear. 01:03:47.000 --> 01:03:51.000 Would you like to. 01:03:51.000 --> 01:03:53.960 I think it's a great question. And that's really as 01:03:53.960 --> 01:03:56.800 Caroline said, where we're really trying to move is that we 01:03:56.800 --> 01:03:59.110 understand what is the not only the benefits of a 01:03:59.110 --> 01:04:01.869 development and that's frankly what we've looked at in the 01:04:01.869 --> 01:04:04.000 past is the benefit analysis. 01:04:04.000 --> 01:04:06.280 What are the costs of the development. What's the cost to 01:04:06.280 --> 01:04:09.000 serve. I think is maybe the root of your question, john. 01:04:09.000 --> 01:04:12.210 It's sometimes difficult to get that on the utility side, 01:04:12.210 --> 01:04:15.500 the rates are designed that we charge through our utilities 01:04:15.500 --> 01:04:18.000 are designed to recover all of our costs. 01:04:18.000 --> 01:04:20.530 So that's a fairly straightforward calculation for us as 01:04:20.530 --> 01:04:23.159 long as they're paying that rate, they're going to recover 01:04:23.159 --> 01:04:24.000 their costs. 01:04:24.000 --> 01:04:26.800 The tax side is a little bit more difficult because 01:04:26.800 --> 01:04:28.000 different users. 01:04:28.000 --> 01:04:32.000 Some can some can pay for their services and others don't. 01:04:32.000 --> 01:04:34.639 As a fact, you know, we've talked about last time as 01:04:34.639 --> 01:04:37.739 residential properties typically don't pay their property 01:04:37.739 --> 01:04:40.659 taxes they pay as a resident, they don't pay for all their 01:04:40.659 --> 01:04:43.789 services they consume commercial entities typically make up 01:04:43.789 --> 01:04:45.000 that difference. 01:04:45.000 --> 01:04:48.780 So, it's harder to get that in that model, the total impact 01:04:48.780 --> 01:04:51.619 model there's a way to try to calculate that and estimate 01:04:51.619 --> 01:04:54.650 that it's still a squishy number, it's not an exact science 01:04:54.650 --> 01:04:57.480 that we have down just yet but that we're trying to look at 01:04:57.480 --> 01:05:01.000 that and bring you back and really analysis that gives you 01:05:01.000 --> 01:05:01.000 all those 01:05:01.000 --> 01:05:04.000 components that's a technical term squishy. 01:05:04.000 --> 01:05:07.969 But, but it's difficult to get that down to an exact 01:05:07.969 --> 01:05:09.000 science. 01:05:09.000 --> 01:05:12.000 But that's what we've tried to bring you forward today. 01:05:12.000 --> 01:05:14.730 Hopefully that answers your question but the utility side 01:05:14.730 --> 01:05:17.300 if you're asking about those that's built into the rates 01:05:17.300 --> 01:05:20.000 the tax side is a little bit more difficult to assess. 01:05:20.000 --> 01:05:27.000 Thank you. 01:05:27.000 --> 01:05:29.000 All right, are we good on this one. 01:05:29.000 --> 01:05:39.000 I have a question for 10. 01:05:39.000 --> 01:05:43.019 We have a lot of really awesome companies in in some of 01:05:43.019 --> 01:05:47.599 them that aren't so awesome as far as community involvement 01:05:47.599 --> 01:05:48.000 . 01:05:48.000 --> 01:05:52.039 Is there an organization encouraged its employees and 01:05:52.039 --> 01:05:56.420 managers to be involved in civic clubs, rovers quantities 01:05:56.420 --> 01:06:01.000 holding out away campaigns join the Chamber of Commerce. 01:06:01.000 --> 01:06:03.730 Because if you answer yes to those I'm going to circle back 01:06:03.730 --> 01:06:06.000 around and make sure that you're doing that. 01:06:06.000 --> 01:06:07.000 Absolutely. 01:06:07.000 --> 01:06:11.639 I'd also like to mention, as he's on the presentation we 01:06:11.639 --> 01:06:15.000 store food as a majority of what we do. 01:06:15.000 --> 01:06:18.000 We're a huge donator to local food banks. 01:06:18.000 --> 01:06:20.849 As you can imagine there's a lot of our customers who 01:06:20.849 --> 01:06:22.000 donate product. 01:06:22.000 --> 01:06:25.409 Some of them donate their own product and some of them ask 01:06:25.409 --> 01:06:28.730 us to do the donations on their behalf so we are a huge don 01:06:28.730 --> 01:06:31.000 ator to to food banks in the area. 01:06:31.000 --> 01:06:38.949 That's just one of the, you know, civic organizations that 01:06:38.949 --> 01:06:43.000 we that we participate in. 01:06:43.000 --> 01:06:49.000 Wrap up the presentation with some key points. 01:06:49.000 --> 01:06:51.820 US cold storage is a leader in its field and it does make 01:06:51.820 --> 01:06:54.559 long term investments in the communities where its 01:06:54.559 --> 01:06:56.000 facilities are located. 01:06:56.000 --> 01:07:00.079 About 99% or more of its employees in the Denton facility 01:07:00.079 --> 01:07:03.000 will be full time and benefits eligible. 01:07:03.000 --> 01:07:07.699 Salaries are industry competitive and as we heard Tim say 01:07:07.699 --> 01:07:12.280 there's opportunity for overtime which could raise the 01:07:12.280 --> 01:07:14.000 average salary. 01:07:14.000 --> 01:07:18.130 The project does add significant new value and it is going 01:07:18.130 --> 01:07:22.000 to cause the TERS phase two improvements to initiate. 01:07:22.000 --> 01:07:25.949 The facility as projected at this point will be a top 25 DM 01:07:25.949 --> 01:07:27.000 E customer. 01:07:27.000 --> 01:07:30.070 The project is not one of our council designated target 01:07:30.070 --> 01:07:31.000 industries. 01:07:31.000 --> 01:07:35.000 The majority of the jobs are not high skilled. 01:07:35.000 --> 01:07:38.559 The incentive for development already exists in the area 01:07:38.559 --> 01:07:42.000 with the West Park TERS and a tax abatement will decrease 01:07:42.000 --> 01:07:45.000 the revenue that goes into the TERS fund for those 01:07:45.000 --> 01:07:49.000 infrastructure improvements in the area. 01:07:49.000 --> 01:07:52.000 You have several options in front of you today. 01:07:52.000 --> 01:07:55.000 The first one is to not offer an incentive. 01:07:55.000 --> 01:07:58.550 You can offer an abatement per policy guidelines, offer 01:07:58.550 --> 01:08:03.260 construction sales and use tax rebate or a combination of 01:08:03.260 --> 01:08:10.000 those or something else of your choosing as the EDP board. 01:08:10.000 --> 01:08:14.320 Since the area the project is in has already been incentiv 01:08:14.320 --> 01:08:16.000 ized via the TERS fund. 01:08:16.000 --> 01:08:19.159 Staff does not recommend the use of ad valorem tax 01:08:19.159 --> 01:08:21.000 incentives in this case. 01:08:21.000 --> 01:08:26.199 We do support the use of the $300,000 DME economic growth 01:08:26.199 --> 01:08:30.000 rider as allowed under the current utility policy. 01:08:30.000 --> 01:08:35.130 And that is an automatic, if they meet the demand threshold 01:08:35.130 --> 01:08:40.159 , that's something that they will automatically receive 01:08:40.159 --> 01:08:42.000 under the policy. 01:08:42.000 --> 01:08:48.000 And now is the time for board's discussion. 01:08:48.000 --> 01:08:54.949 So some of the longer tenure board members remember that we 01:08:54.949 --> 01:09:01.789 normally go into a closed session to discuss the incentive 01:09:01.789 --> 01:09:03.000 options. 01:09:03.000 --> 01:09:07.000 But most of those have been super secret. 01:09:07.000 --> 01:09:10.000 Companies that haven't negotiated things. 01:09:10.000 --> 01:09:14.079 They're still looking at other communities to move into and 01:09:14.079 --> 01:09:18.000 the two that we have today are not under that category. 01:09:18.000 --> 01:09:21.779 So we're wide open to get to talk if there's anything that 01:09:21.779 --> 01:09:25.329 I guess we feel like we need to go into a closed session 01:09:25.329 --> 01:09:26.000 for. 01:09:26.000 --> 01:09:30.310 We'll make sure that that meets the criteria before we do 01:09:30.310 --> 01:09:31.000 that. 01:09:31.000 --> 01:09:35.800 But so we're so this is the time to discuss that and then 01:09:35.800 --> 01:09:41.000 we'll come back I guess after our work session to actually 01:09:41.000 --> 01:09:42.000 vote or take a recommendation. 01:09:42.000 --> 01:09:44.000 So this is just for discussion purposes. 01:09:44.000 --> 01:09:46.000 We'll come back in our actual meeting. 01:09:46.000 --> 01:09:47.000 We're still in a work session. 01:09:47.000 --> 01:09:49.819 We'll come back in the meeting and entertain any motions on 01:09:49.819 --> 01:09:51.000 either one of them. 01:09:51.000 --> 01:09:53.000 So this is discussion time. 01:09:53.000 --> 01:09:58.000 Anybody has any more comments or questions? 01:09:58.000 --> 01:10:02.119 For clarification on the options and so then looking back 01:10:02.119 --> 01:10:04.000 at staff recommendation. 01:10:04.000 --> 01:10:08.000 Staff recommendation is number one. 01:10:08.000 --> 01:10:11.140 But with the electric because that's not considered 01:10:11.140 --> 01:10:13.000 necessarily an incentive. 01:10:13.000 --> 01:10:14.000 Right. 01:10:14.000 --> 01:10:18.449 It is an incentive but it's it's an automatic incentive if 01:10:18.449 --> 01:10:21.000 the demand billing is is met. 01:10:21.000 --> 01:10:22.000 Met. 01:10:22.000 --> 01:10:23.000 The threshold is met. 01:10:23.000 --> 01:10:24.000 Yes. 01:10:24.000 --> 01:10:26.000 Okay. 01:10:26.000 --> 01:10:28.000 You said number one. 01:10:28.000 --> 01:10:29.000 Right. 01:10:29.000 --> 01:10:31.000 Right here. 01:10:31.000 --> 01:10:36.000 The incentive that staff is recommending is the. 01:10:36.000 --> 01:10:38.000 Staff is recommending number one. 01:10:38.000 --> 01:10:40.000 Correct. 01:10:40.000 --> 01:10:42.930 I think I should have rephrased number one to say no ad val 01:10:42.930 --> 01:10:44.000 orem incentive. 01:10:44.000 --> 01:10:45.000 Right. 01:10:45.000 --> 01:10:46.000 That's essentially right. 01:10:46.000 --> 01:10:47.000 Okay. 01:10:47.000 --> 01:10:48.000 Thank you. 01:10:48.000 --> 01:10:51.000 So this is a little different because it's in the TURS. 01:10:51.000 --> 01:10:54.229 So if we do an ad valorem incentive and take money rebate 01:10:54.229 --> 01:10:56.000 that back that money doesn't 01:10:56.000 --> 01:10:58.810 go into the to the TURS fund to help repay for the 01:10:58.810 --> 01:11:01.000 infrastructure that's been put in 01:11:01.000 --> 01:11:02.000 place there. 01:11:02.000 --> 01:11:05.289 So that's where we've had some discussions in the past on 01:11:05.289 --> 01:11:07.000 other projects that were not 01:11:07.000 --> 01:11:08.000 in the TURS. 01:11:08.000 --> 01:11:11.369 This we already have an incentive program going into that 01:11:11.369 --> 01:11:13.000 land area through the TURS. 01:11:13.000 --> 01:11:17.710 So there's already an incentive there that theoretically is 01:11:17.710 --> 01:11:19.000 passed on to the. 01:11:19.000 --> 01:11:21.000 Right. 01:11:21.000 --> 01:11:23.399 And that I think maybe it's important to clarify that that 01:11:23.399 --> 01:11:26.000 as Marty said theoretically that 01:11:26.000 --> 01:11:30.840 that incentive is passed through to an end user who would 01:11:30.840 --> 01:11:36.000 purchase the land in the TURS. 01:11:36.000 --> 01:11:44.000 What distinguishes this to be different than WINCO? 01:11:44.000 --> 01:11:48.000 It's a similar project. 01:11:48.000 --> 01:11:51.000 U.S. cold serves different clients. 01:11:51.000 --> 01:11:55.000 WINCO is serving its own grocery stores. 01:11:55.000 --> 01:11:58.760 The WINCO project I mean their their footprint is larger 01:11:58.760 --> 01:12:01.000 than this footprint would be. 01:12:01.000 --> 01:12:04.000 I mean they're over 800,000 square feet. 01:12:04.000 --> 01:12:08.000 This project would be two hundred and five. 01:12:08.000 --> 01:12:09.000 Phase one. 01:12:09.000 --> 01:12:10.000 Phase one. 01:12:10.000 --> 01:12:14.779 But it is again because the company hasn't made the final 01:12:14.779 --> 01:12:17.000 decisions about how this project 01:12:17.000 --> 01:12:20.000 is going to roll out exactly. 01:12:20.000 --> 01:12:24.000 There could be phased development and it could be larger. 01:12:24.000 --> 01:12:28.000 So phase one is two hundred and five thousand square feet. 01:12:28.000 --> 01:12:31.000 What could be the largest potential facility? 01:12:31.000 --> 01:12:32.000 Okay. 01:12:32.000 --> 01:12:35.819 So he says Dallas is five hundred and twenty thousand 01:12:35.819 --> 01:12:37.000 square feet. 01:12:37.000 --> 01:12:46.000 So it could be could be larger. 01:12:46.000 --> 01:12:53.729 The example that was used here showed a 25 percent abat 01:12:53.729 --> 01:12:57.000 ement as the example. 01:12:57.000 --> 01:13:00.000 Why was that chosen rather than 30 or 40? 01:13:00.000 --> 01:13:03.000 I'm sorry rather than 30 or 35. 01:13:03.000 --> 01:13:05.000 Why was that shown as the example? 01:13:05.000 --> 01:13:09.000 That's the minimum amount. 01:13:09.000 --> 01:13:11.609 I mean that's the amount that they would qualify for based 01:13:11.609 --> 01:13:13.000 on their capital investment. 01:13:13.000 --> 01:13:18.000 And then just basic without any of the additional factors. 01:13:18.000 --> 01:13:20.000 So that's why we showed that one. 01:13:20.000 --> 01:13:23.090 So under the information that's been presented they would 01:13:23.090 --> 01:13:27.000 not qualify for the 30 percent or the 35 percent? 01:13:27.000 --> 01:13:31.739 They did they did check additional factors in their 01:13:31.739 --> 01:13:33.000 application. 01:13:33.000 --> 01:13:36.430 And they could have significant capital investment is one 01:13:36.430 --> 01:13:38.000 of the additional factors. 01:13:38.000 --> 01:13:41.199 And then local hiring was one of the other additional 01:13:41.199 --> 01:13:45.000 factors that they would qualify for in their application. 01:13:45.000 --> 01:13:50.439 And I have the figures per year for 30 and 35 percent like 01:13:50.439 --> 01:13:54.000 what what the rebate would be per year. 01:13:54.000 --> 01:13:57.449 Ultimately the recommendation was not going to be for ad 01:13:57.449 --> 01:13:59.000 valorem incentives. 01:13:59.000 --> 01:14:03.739 So in the interest of brevity in the presentation we showed 01:14:03.739 --> 01:14:05.000 the 25. 01:14:05.000 --> 01:14:07.180 If you would like us to do that differently in the future 01:14:07.180 --> 01:14:08.000 we'd be glad to. 01:14:08.000 --> 01:14:11.630 I just wanted to know what your mindset was or you know why 01:14:11.630 --> 01:14:14.000 show 25 rather than 35. 01:14:14.000 --> 01:14:16.000 It's because it's the policy minimum. 01:14:16.000 --> 01:14:18.829 Policy minimum and they didn't qualify for the for the 01:14:18.829 --> 01:14:20.000 higher ones right? 01:14:20.000 --> 01:14:22.000 They could. 01:14:22.000 --> 01:14:23.000 They could but they did. 01:14:23.000 --> 01:14:24.000 Yes. 01:14:24.000 --> 01:14:27.250 But we weren't going to recommend the ad valorem part and I 01:14:27.250 --> 01:14:29.000 was trying to get it on the slide. 01:14:29.000 --> 01:14:33.380 So we can do it differently next time if that would be 01:14:33.380 --> 01:14:35.000 better for you. 01:14:35.000 --> 01:14:37.000 Keeley. 01:14:37.000 --> 01:14:42.000 So my I'm good with your recommendation. 01:14:42.000 --> 01:14:47.050 My my concern still is the utility usage to make sure that 01:14:47.050 --> 01:14:52.000 that is going to be we're going to recover our costs. 01:14:52.000 --> 01:14:57.000 We have a lot of discussion about energy lately in our city 01:14:57.000 --> 01:14:57.000 . 01:14:57.000 --> 01:15:04.000 And in making sure that our rates for our customers stay. 01:15:04.000 --> 01:15:06.000 Stay affordable. 01:15:06.000 --> 01:15:07.000 Affordable. 01:15:07.000 --> 01:15:08.000 Yes. 01:15:08.000 --> 01:15:11.880 And just making sure that the residential customers aren't 01:15:11.880 --> 01:15:15.520 going to be making up for the amount that these people use 01:15:15.520 --> 01:15:17.000 but don't pay for. 01:15:17.000 --> 01:15:21.140 So I just want to make sure that that's not going to be an 01:15:21.140 --> 01:15:22.000 issue. 01:15:22.000 --> 01:15:26.720 And also so I'm assuming after the six years because that's 01:15:26.720 --> 01:15:30.000 how long it's recommended for right. 01:15:30.000 --> 01:15:33.250 The DME incentive will be for five years because that's 01:15:33.250 --> 01:15:36.000 what their policy is for the growth rider. 01:15:36.000 --> 01:15:37.000 So it's not six. 01:15:37.000 --> 01:15:38.000 Okay. 01:15:38.000 --> 01:15:39.000 No ma'am. 01:15:39.000 --> 01:15:41.000 So after that then everything will. 01:15:41.000 --> 01:15:42.000 Yes. 01:15:42.000 --> 01:15:43.000 Will be the same. 01:15:43.000 --> 01:15:47.000 So Jessica Rogers from DME is here in the room. 01:15:47.000 --> 01:15:50.789 If you would like her to come up and address the question 01:15:50.789 --> 01:15:53.000 that you have now. 01:15:53.000 --> 01:15:54.000 Sure. 01:15:54.000 --> 01:15:55.000 That'd be great. 01:15:55.000 --> 01:15:56.000 Okay Jessica. 01:15:56.000 --> 01:15:59.840 Jessica looks excited to come up on television in front of 01:15:59.840 --> 01:16:01.000 our audience. 01:16:01.000 --> 01:16:02.000 She's thrilled. 01:16:02.000 --> 01:16:05.000 This is new for me to understand. 01:16:05.000 --> 01:16:08.550 So going forward if we have it as a recommendation I'd like 01:16:08.550 --> 01:16:09.000 to know. 01:16:09.000 --> 01:16:10.000 Sure. 01:16:10.000 --> 01:16:13.000 So Jessica Rogers now formerly of DME. 01:16:13.000 --> 01:16:16.989 I actually now work in the city manager's office again but 01:16:16.989 --> 01:16:20.000 I was handling this program until about a month ago. 01:16:20.000 --> 01:16:25.000 So Councilmember we do not lose money on this. 01:16:25.000 --> 01:16:27.529 So when we actually this is just on the demand side of the 01:16:27.529 --> 01:16:28.000 bill. 01:16:28.000 --> 01:16:31.399 So the great example that we use on this is when you go to 01:16:31.399 --> 01:16:34.000 the mall they have a huge parking lot. 01:16:34.000 --> 01:16:35.000 Right. 01:16:35.000 --> 01:16:38.729 It's because they have to accommodate for their peak period 01:16:38.729 --> 01:16:39.000 . 01:16:39.000 --> 01:16:42.000 And so demand is that part of the electric bill. 01:16:42.000 --> 01:16:45.000 Making sure that the system can handle their peak demand. 01:16:45.000 --> 01:16:48.000 The largest amount that they're going to have to. 01:16:48.000 --> 01:16:50.420 The largest amount of electricity that they're going to 01:16:50.420 --> 01:16:51.000 consume. 01:16:51.000 --> 01:16:53.979 It doesn't affect the consumption charge which is that 01:16:53.979 --> 01:16:55.000 energy charge. 01:16:55.000 --> 01:16:57.850 They'll be on a regular rate in terms of the energy charge 01:16:57.850 --> 01:17:00.000 in terms of their consumption charge. 01:17:00.000 --> 01:17:01.000 None of that changes. 01:17:01.000 --> 01:17:03.000 It's just on the demand charge. 01:17:03.000 --> 01:17:06.550 And this is a significant to put it in perspective to 01:17:06.550 --> 01:17:10.000 qualify for to be on a general service large rate. 01:17:10.000 --> 01:17:13.000 Your demand that you have to meet is 250 KVA. 01:17:13.000 --> 01:17:15.560 To qualify for the economic growth rider it's four times 01:17:15.560 --> 01:17:16.000 that. 01:17:16.000 --> 01:17:18.000 It's 1000 KVA. 01:17:18.000 --> 01:17:21.329 So our largest of the largest customers are in that 01:17:21.329 --> 01:17:24.000 economic growth rider perspective. 01:17:24.000 --> 01:17:26.000 Thank you. 01:17:26.000 --> 01:17:27.000 Anyone else? 01:17:27.000 --> 01:17:30.000 Sorry. 01:17:30.000 --> 01:17:31.000 Jill has a question. 01:17:31.000 --> 01:17:32.000 No I have a comment. 01:17:32.000 --> 01:17:33.000 Okay she has a comment. 01:17:33.000 --> 01:17:34.000 Just a general comment. 01:17:34.000 --> 01:17:35.000 Not for you in particular. 01:17:35.000 --> 01:17:36.000 Okay. 01:17:36.000 --> 01:17:39.000 Is that okay? 01:17:39.000 --> 01:17:42.899 What I'm seeing at this point in time just for the sake of 01:17:42.899 --> 01:17:47.000 discussion is on the pro side incentivizing this company 01:17:47.000 --> 01:17:50.210 that we would like to capture here in Denton County the 01:17:50.210 --> 01:17:53.000 things that stand out to me are because of responsible 01:17:53.000 --> 01:17:54.000 energy use. 01:17:54.000 --> 01:17:57.829 Because of the full time employees that are going to be 01:17:57.829 --> 01:18:01.310 locally sourced with benefits and the community 01:18:01.310 --> 01:18:05.579 participation for such a company with their history versus 01:18:05.579 --> 01:18:09.460 it taking longer to pay back the abatements for the TURS 01:18:09.460 --> 01:18:11.000 improvements. 01:18:11.000 --> 01:18:14.289 I mean in my mind at least that's what it's kind of coming 01:18:14.289 --> 01:18:15.000 down to. 01:18:15.000 --> 01:18:21.000 But I would love to hear being a newer member of this group 01:18:21.000 --> 01:18:22.000 . 01:18:22.000 --> 01:18:26.699 Because in my mind right now I'm voting for a 25% abatement 01:18:26.699 --> 01:18:27.000 . 01:18:27.000 --> 01:18:31.460 Because for me how I'm seeing it boiled down to the pros 01:18:31.460 --> 01:18:35.619 are outweighing the cons but I'm interested in the 01:18:35.619 --> 01:18:37.000 discussion. 01:18:37.000 --> 01:18:42.000 I just wanted to where I am. 01:18:42.000 --> 01:18:45.000 Everyone's in agreement with me, obviously. 01:18:45.000 --> 01:18:48.869 So I'm going to go ahead and make my motion and we can all 01:18:48.869 --> 01:18:50.000 go to lunch. 01:18:50.000 --> 01:18:52.000 Happy Valentine's Day once again everyone. 01:18:52.000 --> 01:18:55.000 Thanks for coming. 01:18:55.000 --> 01:19:00.239 I think the difference is that it doesn't mean our target 01:19:00.239 --> 01:19:04.350 market and the wages are the kind of wages we're trying to 01:19:04.350 --> 01:19:06.000 attract to Denton. 01:19:06.000 --> 01:19:11.539 I think my concern is this target market is we gave 01:19:11.539 --> 01:19:15.979 incentives to Target, to Aldi and to WENCO and they're all 01:19:15.979 --> 01:19:17.000 the same. 01:19:17.000 --> 01:19:20.409 Why do we do that and not this and what are we saying with 01:19:20.409 --> 01:19:21.000 that? 01:19:21.000 --> 01:19:24.449 Those companies, and I'm not arguing with them, I'm just 01:19:24.449 --> 01:19:27.000 saying they also fronted the cost of putting in 01:19:27.000 --> 01:19:30.560 infrastructure into the city and we're reimbursing them for 01:19:30.560 --> 01:19:31.000 that. 01:19:31.000 --> 01:19:34.000 They put in roads and utilities. 01:19:34.000 --> 01:19:36.000 That's what they're reimbursing for. 01:19:36.000 --> 01:19:38.000 So if we didn't have Target... 01:19:38.000 --> 01:19:40.199 We would have still had to have done that through the TURS 01:19:40.199 --> 01:19:41.000 no matter what. 01:19:41.000 --> 01:19:43.000 Well we didn't have the TURS. 01:19:43.000 --> 01:19:45.000 We did when we had WENCO. 01:19:45.000 --> 01:19:46.000 WENCO, yeah. 01:19:46.000 --> 01:19:50.000 Aldi and Target were two different things. 01:19:50.000 --> 01:19:53.340 They were going to have the TURS and I'm not sure if they 01:19:53.340 --> 01:19:55.000 were in it. 01:19:55.000 --> 01:19:56.000 No. 01:19:56.000 --> 01:20:02.000 They put in roads and infrastructure and we reimbursed them 01:20:02.000 --> 01:20:03.000 for those. 01:20:03.000 --> 01:20:06.869 And then Aldi would fall off the face of the earth and 01:20:06.869 --> 01:20:09.000 doesn't talk to anybody. 01:20:09.000 --> 01:20:13.409 Jim, can I clarify, so is your point being we've already 01:20:13.409 --> 01:20:19.060 incentivized these non-Target groups therefore going down 01:20:19.060 --> 01:20:22.659 that road or you're saying what message does it send to 01:20:22.659 --> 01:20:25.369 then not incentivize this group that is similar to these 01:20:25.369 --> 01:20:27.000 that we've done before? 01:20:27.000 --> 01:20:29.819 I think there's a couple, in my opinion, there's a couple 01:20:29.819 --> 01:20:31.000 of things going on. 01:20:31.000 --> 01:20:33.920 We're focusing very hard on what the rate of pay is going 01:20:33.920 --> 01:20:36.789 to be and I think the market is going to dictate what the 01:20:36.789 --> 01:20:39.659 rate of pay is going to be and it's probably going to end 01:20:39.659 --> 01:20:43.000 up being higher than what they're predicting right now. 01:20:43.000 --> 01:20:46.060 $15 an hour, then you've got overtime on top of that and 01:20:46.060 --> 01:20:49.000 right around the corner we're paying over $30. 01:20:49.000 --> 01:20:55.500 I'm sure WENCO is paying more than $15 and I'm sure Target 01:20:55.500 --> 01:20:57.000 is as well. 01:20:57.000 --> 01:21:01.609 The other thing is, is you're talking about over a six year 01:21:01.609 --> 01:21:06.260 period of time, you're talking about a difference of $155, 01:21:06.260 --> 01:21:07.000 000. 01:21:07.000 --> 01:21:15.000 Which to me is not that big a deal. 01:21:15.000 --> 01:21:18.000 For them to lose out on or for the city? 01:21:18.000 --> 01:21:20.000 For the city to give up. 01:21:20.000 --> 01:21:25.159 I think $155,000 for what you're getting and you get the 01:21:25.159 --> 01:21:30.760 infrastructure for Jim Crystal Road as well, which is 01:21:30.760 --> 01:21:34.819 another critical piece for that area out there in order to 01:21:34.819 --> 01:21:39.000 continue some of the development that needs to be done. 01:21:39.000 --> 01:21:42.000 Are they providing infrastructure? 01:21:42.000 --> 01:21:45.550 The costs in here don't include any infrastructure to the 01:21:45.550 --> 01:21:47.000 public roads. 01:21:47.000 --> 01:21:51.640 Okay, so there is an arrangement that is being made between 01:21:51.640 --> 01:21:58.119 the engineering department and the company to provide a 01:21:58.119 --> 01:22:04.390 drainage improvement in front of their property in lieu of 01:22:04.390 --> 01:22:07.000 roadway impact fees. 01:22:07.000 --> 01:22:08.000 That they would pay for. 01:22:08.000 --> 01:22:13.000 It's an exchange. They'll pay for the drainage project in 01:22:13.000 --> 01:22:18.000 lieu of roadway impact fees that would normally be owed. 01:22:18.000 --> 01:22:23.000 So it's just kind of... 01:22:23.000 --> 01:22:28.800 That's a side deal. I mean, not a side deal, but that's an 01:22:28.800 --> 01:22:31.579 arrangement that's been made between the company and the 01:22:31.579 --> 01:22:37.000 city, independent of this discussion. 01:22:37.000 --> 01:22:42.289 Are we allowed to ask if the company is dependent upon the 01:22:42.289 --> 01:22:46.000 25% abatement for coming here? 01:22:46.000 --> 01:22:54.000 Sure, and I'm going to let Tim answer that question. 01:22:54.000 --> 01:22:57.560 So in terms of are we dependent on that money, at this 01:22:57.560 --> 01:23:02.000 point, as was presented, we've closed on the property. 01:23:02.000 --> 01:23:04.779 The next thing it has to do is we have to take this entire 01:23:04.779 --> 01:23:08.270 project, our P&L, our projected P&L, along with any sort of 01:23:08.270 --> 01:23:11.670 incentives to our board of directors or the SWIRE board in 01:23:11.670 --> 01:23:15.000 London to get approval for the construction money. 01:23:15.000 --> 01:23:18.949 So obviously, if you're familiar with how things work over 01:23:18.949 --> 01:23:22.909 there, obviously any sort of community support goes a long 01:23:22.909 --> 01:23:27.000 way in terms of them authorizing the construction money. 01:23:27.000 --> 01:23:32.100 We have various projects across the United States. We 01:23:32.100 --> 01:23:35.430 obviously would love to be here in Denton, and hopefully I 01:23:35.430 --> 01:23:38.000 answered your question. 01:23:38.000 --> 01:23:41.710 I'm not trying to circle around the bandwagon, but I don't 01:23:41.710 --> 01:23:43.000 want to sit here. 01:23:43.000 --> 01:23:47.039 Have you, in other communities that you work with, I guess 01:23:47.039 --> 01:23:51.159 because we're a municipally-owned utility, we have our own 01:23:51.159 --> 01:23:55.229 electrical department, which makes us unique to be able to 01:23:55.229 --> 01:23:57.850 provide this rider. Have you had any experience with that 01:23:57.850 --> 01:24:00.000 in the past? I think it's pretty significant. 01:24:00.000 --> 01:24:03.939 Not with the growth rider, no. We've done projects in other 01:24:03.939 --> 01:24:07.840 communities and gotten tax incentives and tax abatement 01:24:07.840 --> 01:24:09.000 incentives. 01:24:09.000 --> 01:24:10.000 For utility use? 01:24:10.000 --> 01:24:14.000 No, aside from utilities. 01:24:14.000 --> 01:24:17.289 I have a question, sir, about the actual construction 01:24:17.289 --> 01:24:23.720 project. So you hire a construction company, and any way 01:24:23.720 --> 01:24:27.000 for some of those dollars to recirculate here? 01:24:27.000 --> 01:24:30.289 Yes, we obviously have a general contractor. There's only a 01:24:30.289 --> 01:24:33.399 select few general contractors in the United States that do 01:24:33.399 --> 01:24:36.340 the type of work for this facility, but then they sub out 01:24:36.340 --> 01:24:39.520 the majority of work, all their concrete work, electrical 01:24:39.520 --> 01:24:42.000 and things like that to subcontractors. 01:24:42.000 --> 01:24:43.000 In the area? 01:24:43.000 --> 01:24:46.560 Yes, and I don't know if this is factored into the economic 01:24:46.560 --> 01:24:49.750 impact analysis, but they rent hotel rooms and they 01:24:49.750 --> 01:24:53.029 basically move here during construction to build the 01:24:53.029 --> 01:24:54.000 facility. 01:24:54.000 --> 01:25:00.000 So a project of this size is anticipated to take how long? 01:25:00.000 --> 01:25:05.000 We would like to shoot for six months, six to eight months. 01:25:05.000 --> 01:25:08.000 Which probably means about nine months. 01:25:08.000 --> 01:25:11.000 Six to eight months. 01:25:11.000 --> 01:25:14.319 No, we have to see, I mean, there's things to, you know, 01:25:14.319 --> 01:25:18.000 ways that we can help expedite things, and that's our plan. 01:25:18.000 --> 01:25:19.000 I understand. 01:25:19.000 --> 01:25:21.000 And I understand your comment as well. 01:25:21.000 --> 01:25:24.479 The cost numbers that we're looking at is just for phase 01:25:24.479 --> 01:25:25.000 one? 01:25:25.000 --> 01:25:26.000 Is that? 01:25:26.000 --> 01:25:28.649 That's conservative. That's, yes, that would just be phase 01:25:28.649 --> 01:25:29.000 one. 01:25:29.000 --> 01:25:32.060 Okay, so there's a chance if business is better or whatever 01:25:32.060 --> 01:25:34.000 the circumstances are you add on? 01:25:34.000 --> 01:25:36.729 Yes, sir. Yes, sir, that's correct. If you look at the 01:25:36.729 --> 01:25:39.449 facility in Dallas, there's three sections. The middle 01:25:39.449 --> 01:25:41.960 phase was our phase one in Dallas. We've since built two 01:25:41.960 --> 01:25:43.000 additional phases. 01:25:43.000 --> 01:25:47.850 That was construction began in 2013. All three phases were 01:25:47.850 --> 01:25:52.609 built by the beginning of this past year, beginning of 2017 01:25:52.609 --> 01:25:53.000 . 01:25:53.000 --> 01:25:56.100 I have a question for Caroline. So if they did come and add 01:25:56.100 --> 01:26:00.909 on, could they apply for an incentive for that new growth 01:26:00.909 --> 01:26:02.000 project? 01:26:02.000 --> 01:26:05.000 Companies can apply for expansion incentives. 01:26:05.000 --> 01:26:06.000 Right, okay. 01:26:06.000 --> 01:26:11.000 Yes. 01:26:11.000 --> 01:26:13.000 Any more discussion? 01:26:13.000 --> 01:26:16.000 Our work session. Let's move on to our next applicant. 01:26:16.000 --> 01:26:22.000 Okay. 01:26:22.000 --> 01:26:26.000 I guess I need to. 01:26:26.000 --> 01:26:35.399 EDP number 18-12 received a report and hold a discussion 01:26:35.399 --> 01:26:54.000 regarding incentive application for Fisher 59. 01:26:54.000 --> 01:26:58.659 All right. So we are going to present information and 01:26:58.659 --> 01:27:02.460 facilitate discussion on an incentive request from Fisher 01:27:02.460 --> 01:27:03.000 59. 01:27:03.000 --> 01:27:05.920 And we do have quite a contingent from the company here in 01:27:05.920 --> 01:27:10.199 the room with us. And I appreciate you guys patience 01:27:10.199 --> 01:27:14.000 through the prior part of the meeting. 01:27:14.000 --> 01:27:17.060 And I'm sure you'll have an opportunity, somebody will have 01:27:17.060 --> 01:27:19.000 an opportunity to come up and talk. 01:27:19.000 --> 01:27:25.449 Okay. So for those of you who are not familiar with Fisher 01:27:25.449 --> 01:27:27.520 59, it distributes Miller Coors beverage brands to about 40 01:27:27.520 --> 01:27:30.000 counties in North Texas and southern Oklahoma. 01:27:30.000 --> 01:27:33.010 And this is a Denton company. It's family owned and 01:27:33.010 --> 01:27:35.000 operated with its headquarters here. 01:27:35.000 --> 01:27:39.670 It employs about 148 folks locally and does more than $120 01:27:39.670 --> 01:27:42.000 million in business annually. 01:27:42.000 --> 01:27:46.550 And as a family business, it was started by Clyde Fisher 01:27:46.550 --> 01:27:51.680 and Munster in 1959 and then has expanded across North 01:27:51.680 --> 01:27:55.600 Texas and in southern Oklahoma in the early 80s and has 01:27:55.600 --> 01:27:59.000 been operating since that time. 01:27:59.000 --> 01:28:02.430 They do have a current site in Denton, which many of you 01:28:02.430 --> 01:28:06.000 are probably familiar with where this is, on 35. 01:28:06.000 --> 01:28:11.090 But their current facility consists of about 85,000 square 01:28:11.090 --> 01:28:14.939 feet of warehouse and office between two buildings and 01:28:14.939 --> 01:28:18.000 there's a depiction of it there for you. 01:28:18.000 --> 01:28:23.060 The project itself is a new 205,000 square foot warehouse 01:28:23.060 --> 01:28:27.300 and distribution facility that is going to incorporate some 01:28:27.300 --> 01:28:31.369 pretty cool aspects. They're seeking these lead bronze 01:28:31.369 --> 01:28:36.000 certification or higher level if practical for the project. 01:28:36.000 --> 01:28:40.829 And then they're going to incorporate a crane system to 01:28:40.829 --> 01:28:43.000 manage their inventory. 01:28:43.000 --> 01:28:47.310 The project itself is looking at a $31 million investment 01:28:47.310 --> 01:28:51.000 that will add 16.9 million in new value. 01:28:51.000 --> 01:28:55.090 They're going to create 67 new jobs by year 10 of the 01:28:55.090 --> 01:28:56.000 project. 01:28:56.000 --> 01:28:59.170 And that is something that we ask for that information in 01:28:59.170 --> 01:29:02.579 the application to project out 10 years. So that's that's 01:29:02.579 --> 01:29:04.000 why they're going out to year 10. 01:29:04.000 --> 01:29:12.539 They have an average salary of almost $51,000 plus benefits 01:29:12.539 --> 01:29:13.000 . 01:29:13.000 --> 01:29:15.000 Jill wants a job. 01:29:15.000 --> 01:29:17.000 Is there an application here? 01:29:17.000 --> 01:29:24.000 Y'all couldn't see her face, but she went off. 01:29:24.000 --> 01:29:28.000 We want to talk about the project's pros and cons quickly. 01:29:28.000 --> 01:29:30.000 It is not a target industry. 01:29:30.000 --> 01:29:34.079 They are going to be adding $16.9 million of new value. A 01:29:34.079 --> 01:29:38.000 verage salary is above Denton County's average salary. 01:29:38.000 --> 01:29:40.560 They're not a significant utility user, but from the 01:29:40.560 --> 01:29:43.109 environmental standpoint, they are seeking lead 01:29:43.109 --> 01:29:45.000 certification for the building. 01:29:45.000 --> 01:29:51.000 And it is a headquarters project. 01:29:51.000 --> 01:29:55.750 So to what they're considering, the company is looking at a 01:29:55.750 --> 01:30:01.000 50 acre site in Denton at University and Mosh Branch Road. 01:30:01.000 --> 01:30:05.000 And that's a little depiction of it here. 01:30:05.000 --> 01:30:08.979 And then this is a rendering of what the potential new 01:30:08.979 --> 01:30:12.000 facility could look like down here. 01:30:12.000 --> 01:30:16.649 They're also considering a second site that's outside the 01:30:16.649 --> 01:30:22.000 Denton City limits further west on 380 at George Owens Road 01:30:22.000 --> 01:30:22.000 . 01:30:22.000 --> 01:30:28.000 So on the map, are those gas for the property? 01:30:28.000 --> 01:30:30.000 They look like that to me. 01:30:30.000 --> 01:30:33.449 The other one is still open. We're not buying that whole 01:30:33.449 --> 01:30:34.000 piece. 01:30:34.000 --> 01:30:37.000 We're buying, I call it three quarters. 01:30:37.000 --> 01:30:41.109 The quarter to the right heading toward Mosh, we're not 01:30:41.109 --> 01:30:43.439 buying. We're actually going to run a road through the 01:30:43.439 --> 01:30:44.000 middle of it. 01:30:44.000 --> 01:30:47.470 Okay. So just I'm going to restate what you said. So there 01:30:47.470 --> 01:30:50.000 are a couple of gas wells on the property. 01:30:50.000 --> 01:30:52.989 One is closed or not functioning anymore. One is, but you 01:30:52.989 --> 01:30:56.000 're not buying the entire 50 acre site. 01:30:56.000 --> 01:30:58.000 You're buying about three quarters of it. 01:30:58.000 --> 01:31:07.000 Okay. So just for clarification, the one that's not closed 01:31:07.000 --> 01:31:07.000 has no intention of buying out and closing for the safety 01:31:07.000 --> 01:31:07.000 of the. 01:31:07.000 --> 01:31:10.399 Do you all know anything about the operators plans for the 01:31:10.399 --> 01:31:13.000 one nearest marshaling that small one? 01:31:13.000 --> 01:31:17.000 The lease is I think still got about a year and a half. 01:31:17.000 --> 01:31:20.000 Okay. The intention is they may not rely on it. 01:31:20.000 --> 01:31:24.000 Do we need to bring him up to the front? Would you like to? 01:31:24.000 --> 01:31:26.000 Sure. 01:31:26.000 --> 01:31:28.829 Because I'm just going to have to repeat everything if I 01:31:28.829 --> 01:31:30.000 save a little time. 01:31:30.000 --> 01:31:31.000 Sure. 01:31:31.000 --> 01:31:35.800 And this is Tom McElvaney. You are the CEO. Is that correct 01:31:35.800 --> 01:31:36.000 ? Okay. 01:31:36.000 --> 01:31:42.800 Yeah. You can hear me. The one nearest marshaling, which is 01:31:42.800 --> 01:31:47.000 on the left hand side, that one's still active. 01:31:47.000 --> 01:31:50.310 And I think it has about a year and a half on it, maybe a 01:31:50.310 --> 01:31:52.000 little less than that. 01:31:52.000 --> 01:31:56.939 The other one is plugged and sealed. So that we're going to 01:31:56.939 --> 01:31:59.000 be building over there under those rules. 01:31:59.000 --> 01:32:03.000 We won't build on the on the drill site because you can't. 01:32:03.000 --> 01:32:07.100 But that will be maybe parking lot at some point in time, 01:32:07.100 --> 01:32:12.000 which I guess is allowed. 01:32:12.000 --> 01:32:14.000 Question. I'll be back. 01:32:14.000 --> 01:32:21.000 You might want to stay over here. Okay. 01:32:21.000 --> 01:32:25.090 So there are some definite advantages to Fisher 59 staying 01:32:25.090 --> 01:32:26.000 in Denton. 01:32:26.000 --> 01:32:31.380 The I-35/380 intersection is centrally located within their 01:32:31.380 --> 01:32:32.000 market, 01:32:32.000 --> 01:32:35.359 and it allows them to minimize their truck mileage, fuel 01:32:35.359 --> 01:32:38.000 costs, and wear and tear on their equipment. 01:32:38.000 --> 01:32:42.140 I also understand that access to high speed internet is 01:32:42.140 --> 01:32:46.000 going to allow all of the technology in their new facility 01:32:46.000 --> 01:32:50.000 to function at its highest potential. 01:32:50.000 --> 01:32:54.289 Y'all saw this earlier in the other presentation, but we 01:32:54.289 --> 01:32:58.600 want to remind about the policy, the current policy, about 01:32:58.600 --> 01:33:03.000 25% abatement if at least $5 million in investment in value 01:33:03.000 --> 01:33:03.000 is met, 01:33:03.000 --> 01:33:07.069 which can increase with higher investment, and then the 01:33:07.069 --> 01:33:12.619 percentage of abatement can increase for additional factors 01:33:12.619 --> 01:33:13.000 . 01:33:13.000 --> 01:33:17.329 The request from Fisher 59 is for the maximum allowable 01:33:17.329 --> 01:33:20.000 incentive under the current policy, 01:33:20.000 --> 01:33:23.569 and in particular they are seeking to offset additional 01:33:23.569 --> 01:33:26.750 costs that they will incur for the Denton site versus the 01:33:26.750 --> 01:33:28.000 out of Denton site. 01:33:28.000 --> 01:33:33.170 The cost per square foot for their land in Denton is about 01:33:33.170 --> 01:33:38.680 a dollar or a little bit more than a dollar higher per 01:33:38.680 --> 01:33:40.000 square foot than the-- 01:33:40.000 --> 01:33:45.000 So that's about a million and $1.6 million, is that-- 01:33:45.000 --> 01:33:48.000 You do math in your head faster than I do. 01:33:48.000 --> 01:33:52.000 I didn't do my math, I got my calculator out. 01:33:52.000 --> 01:33:56.250 Additionally, they're going to have another $1.5 million in 01:33:56.250 --> 01:33:59.000 site development costs for the Denton site, 01:33:59.000 --> 01:34:04.710 and then because they are within the city limits, there 01:34:04.710 --> 01:34:10.539 will be the standard fees, taxes, and after build costs 01:34:10.539 --> 01:34:17.000 that are required to comply with city regulations and code. 01:34:17.000 --> 01:34:20.909 So this is an interesting project because it is an 01:34:20.909 --> 01:34:24.199 expansion, even though it's not an expansion in place, it's 01:34:24.199 --> 01:34:26.000 an expansion in a different location, 01:34:26.000 --> 01:34:29.000 so please keep that in mind as we're going through this, 01:34:29.000 --> 01:34:32.470 but we want to look at the current conditions, their 01:34:32.470 --> 01:34:34.000 current valuation, 01:34:34.000 --> 01:34:38.329 and the current annual tax revenue that's being produced by 01:34:38.329 --> 01:34:41.000 the company at this point in time. 01:34:41.000 --> 01:34:46.659 So their current valuation is about $6.4 million, and the 01:34:46.659 --> 01:34:51.390 annual tax revenue that that is producing to the city of 01:34:51.390 --> 01:34:56.000 Denton is a little bit over $41,000. 01:34:56.000 --> 01:35:01.000 The project itself, the ad valorem valuation and revenue, 01:35:01.000 --> 01:35:05.279 it's going to produce some new valuation, of course, for 01:35:05.279 --> 01:35:09.000 about $16.8 or $16.9 million. 01:35:09.000 --> 01:35:13.140 Right here in this column, you can see that, and then we 01:35:13.140 --> 01:35:19.220 take that and we generate the estimated tax revenue, land 01:35:19.220 --> 01:35:22.000 improvements, and business personal property. 01:35:22.000 --> 01:35:24.529 Again, we can only consider the improvements in the 01:35:24.529 --> 01:35:27.659 business personal property when we're talking about money 01:35:27.659 --> 01:35:30.000 that would be available for an incentive, 01:35:30.000 --> 01:35:38.600 so that bottom line number right here is $98,340 available 01:35:38.600 --> 01:35:41.000 for incentives. 01:35:41.000 --> 01:35:44.840 And in this case, we did look at, again, like we did before 01:35:44.840 --> 01:35:49.560 , 25/30 and 35% tax abatement models and the construction 01:35:49.560 --> 01:35:52.000 sales and use tax rebate model. 01:35:52.000 --> 01:35:56.399 And here is the analysis summary there, got the assumptions 01:35:56.399 --> 01:36:00.100 up at the top that we just talked through on the prior 01:36:00.100 --> 01:36:01.000 slides. 01:36:01.000 --> 01:36:04.420 25% abatement on the incremental increase in value, and 01:36:04.420 --> 01:36:07.899 again, since this is an expansion project, we have to take 01:36:07.899 --> 01:36:12.000 what's currently on the ground, what the current revenue 01:36:12.000 --> 01:36:13.000 and value is, 01:36:13.000 --> 01:36:16.069 and look at what the incremental increase is going to be 01:36:16.069 --> 01:36:18.000 when we're doing our analysis. 01:36:18.000 --> 01:36:21.329 Caroline, before we go on, so you're going to still use the 01:36:21.329 --> 01:36:24.449 existing facility and this will just be new, or are you 01:36:24.449 --> 01:36:25.000 moving? 01:36:25.000 --> 01:36:26.000 We're moving. 01:36:26.000 --> 01:36:31.000 Okay. So new facility, the old, is the old one for sale? 01:36:31.000 --> 01:36:33.000 Sale of loose store. 01:36:33.000 --> 01:36:34.000 Okay, so. 01:36:34.000 --> 01:36:40.000 We're getting that analyzed as you speak right now. 01:36:40.000 --> 01:36:43.739 So what are we losing from them moving? What are they 01:36:43.739 --> 01:36:45.000 paying currently? 01:36:45.000 --> 01:36:47.949 We're not going to lose anything from them moving because 01:36:47.949 --> 01:36:51.010 the existing facility will be likely purchased or leased by 01:36:51.010 --> 01:36:52.000 someone else. 01:36:52.000 --> 01:36:55.130 Someone's still going to pay the tax revenue on that 01:36:55.130 --> 01:36:56.000 facility. 01:36:56.000 --> 01:36:58.000 Unless they have that subject. 01:36:58.000 --> 01:36:59.000 Okay. 01:36:59.000 --> 01:37:01.000 Unless they have that subject. 01:37:01.000 --> 01:37:03.000 Right, unless they. 01:37:03.000 --> 01:37:05.000 I think that was enough. 01:37:05.000 --> 01:37:06.000 Did you have another question? 01:37:06.000 --> 01:37:09.000 I did, but it's about something in the application. 01:37:09.000 --> 01:37:12.739 Okay. Do you want me to keep going or would you like to ask 01:37:12.739 --> 01:37:13.000 ? 01:37:13.000 --> 01:37:15.000 We can wait until the end of your presentation. 01:37:15.000 --> 01:37:16.000 Okay. 01:37:16.000 --> 01:37:17.000 Okay. 01:37:17.000 --> 01:37:22.020 So there you can see we're looking at the 25% abatement for 01:37:22.020 --> 01:37:25.859 five years per the policy and the construction sales and 01:37:25.859 --> 01:37:27.000 use tax rebate. 01:37:27.000 --> 01:37:30.590 Again, this is set up similarly as the prior slide or the 01:37:30.590 --> 01:37:33.000 slide in the prior presentation. 01:37:33.000 --> 01:37:38.399 So the total there incentive would be a little over $131, 01:37:38.399 --> 01:37:43.460 000 if we did a 25% abatement for five years and the 01:37:43.460 --> 01:37:46.000 construction sales and use tax rebate. 01:37:46.000 --> 01:37:55.479 And then down here, the net revenue to the city is $467,000 01:37:55.479 --> 01:37:56.000 . 01:37:56.000 --> 01:38:00.000 Questions? 01:38:00.000 --> 01:38:04.000 Mike Rondelli, got a question? 01:38:04.000 --> 01:38:07.000 Okay. 01:38:07.000 --> 01:38:08.000 All right. 01:38:08.000 --> 01:38:11.000 So I'm going to wrap this up here with the key points. 01:38:11.000 --> 01:38:14.409 Fisher 59 has been a Denton business for 35 years and has 01:38:14.409 --> 01:38:16.000 their headquarters here. 01:38:16.000 --> 01:38:19.000 The project would increase its ad valorem value. 01:38:19.000 --> 01:38:22.729 It's intending to have their new facility be LEED certified 01:38:22.729 --> 01:38:23.000 . 01:38:23.000 --> 01:38:27.180 The average salary is 12.4% higher than Denton County's 01:38:27.180 --> 01:38:28.000 average. 01:38:28.000 --> 01:38:33.000 However, the project is not in a target industry. 01:38:33.000 --> 01:38:38.000 Basically the same options as we had before. 01:38:38.000 --> 01:38:40.729 And then the staff recommendation on this is the 01:38:40.729 --> 01:38:44.649 construction sales and use tax rebate five year 25% abat 01:38:44.649 --> 01:38:48.750 ement on the incremental value for a total estimated 01:38:48.750 --> 01:38:53.000 incentive of a little over $131,000. 01:38:53.000 --> 01:38:58.000 And you are welcome to discuss. 01:38:58.000 --> 01:38:59.000 Questions or comments? 01:38:59.000 --> 01:39:00.000 Kaylee? 01:39:00.000 --> 01:39:05.130 So I have a question on the application about the jobs 01:39:05.130 --> 01:39:06.000 created. 01:39:06.000 --> 01:39:08.489 And I guess you kind of answered my question when you said 01:39:08.489 --> 01:39:11.000 you were leaving your old facility and moving over. 01:39:11.000 --> 01:39:14.789 So I'm assuming all of those laborers or workers are moving 01:39:14.789 --> 01:39:17.000 from one facility to another. 01:39:17.000 --> 01:39:18.000 Yes. 01:39:18.000 --> 01:39:19.000 There's a couple of things going on. 01:39:19.000 --> 01:39:23.000 We're located in three locations. 01:39:23.000 --> 01:39:24.000 We're actually up in Wichita Falls. 01:39:24.000 --> 01:39:27.000 We're also in Lawton, Oklahoma. 01:39:27.000 --> 01:39:29.000 There may be with Lawton. 01:39:29.000 --> 01:39:31.000 There certainly is with Wichita Falls. 01:39:31.000 --> 01:39:34.069 Because this is going to be a big warehouse and it's a lot 01:39:34.069 --> 01:39:37.020 more modern, we may actually move a lot of our receiving 01:39:37.020 --> 01:39:39.000 for both those locations down here. 01:39:39.000 --> 01:39:43.000 So we will be moving some of those personnel down. 01:39:43.000 --> 01:39:46.020 Additionally for us, we have a pretty broad portfolio that 01:39:46.020 --> 01:39:49.000 has grown pretty consistently over the last few years. 01:39:49.000 --> 01:39:52.000 We anticipate that model to continue. 01:39:52.000 --> 01:39:53.000 And that's what we based a lot of. 01:39:53.000 --> 01:39:55.760 You know, we're fortunate we also have like the Frisco 01:39:55.760 --> 01:39:59.000 market that you've seen how that's exploded. 01:39:59.000 --> 01:40:02.149 And with new restaurants and supermarkets, it requires us 01:40:02.149 --> 01:40:05.000 to expand and buy more trucks and hire more people. 01:40:05.000 --> 01:40:09.500 So my question is about the wages because at your current 01:40:09.500 --> 01:40:15.000 facility, it says laborer, there's 57 at $11.86. 01:40:15.000 --> 01:40:16.000 Steve, you did that. 01:40:16.000 --> 01:40:23.000 Why don't you come up and go through that? 01:40:23.000 --> 01:40:25.000 Steve Richards, our CFO. 01:40:25.000 --> 01:40:27.000 So, okay. 01:40:27.000 --> 01:40:28.000 Yes. 01:40:28.000 --> 01:40:30.000 So the go ahead with your question. 01:40:30.000 --> 01:40:33.550 So that was the first part, which is more of what I'm 01:40:33.550 --> 01:40:35.000 observing here. 01:40:35.000 --> 01:40:37.659 And so on the new facility, it has the laborer and I'm 01:40:37.659 --> 01:40:41.359 assuming that matching job description, they're now getting 01:40:41.359 --> 01:40:45.000 paid $15.38 and you're adding six more of those. 01:40:45.000 --> 01:40:49.119 So does that mean that the old wages, they're actually 01:40:49.119 --> 01:40:54.039 getting a raise and that $11.86 is not going to be a wage 01:40:54.039 --> 01:40:55.000 anymore? 01:40:55.000 --> 01:40:57.000 Not necessarily. 01:40:57.000 --> 01:41:00.760 It more has to do with there are multiple classes of labor 01:41:00.760 --> 01:41:06.300 ers in there where to give a simple example, I'm going to 01:41:06.300 --> 01:41:09.409 pay a warehouse worker that has the skill and license to 01:41:09.409 --> 01:41:13.199 operate a forklift in my facility more than what I'm going 01:41:13.199 --> 01:41:17.949 to pay a laborer that is simply moving boxes type of 01:41:17.949 --> 01:41:19.000 situation. 01:41:19.000 --> 01:41:23.069 So that you have a kind of a weighted average in that labor 01:41:23.069 --> 01:41:27.239 figure and the expected increases in that category are in 01:41:27.239 --> 01:41:31.300 the higher wage value because we are going to a more techn 01:41:31.300 --> 01:41:35.720 ologically advanced facility and so we're going to require a 01:41:35.720 --> 01:41:39.000 little more skill out of those workers. 01:41:39.000 --> 01:41:41.000 But also CDL drivers. 01:41:41.000 --> 01:41:42.000 Oh, for sure. 01:41:42.000 --> 01:41:51.000 That's how it is. 01:41:51.000 --> 01:41:55.500 That's a, that's a high percentage of full time positions 01:41:55.500 --> 01:42:00.090 you have there that are lower level wages, compared to some 01:42:00.090 --> 01:42:01.000 others. 01:42:01.000 --> 01:42:04.000 And I don't think I follow your question. 01:42:04.000 --> 01:42:07.550 Well, it says the number of full time positions, laborers 01:42:07.550 --> 01:42:12.069 at $11.86, there's 57 of those, that's more than any of the 01:42:12.069 --> 01:42:15.000 other categories so I'm just looking here. 01:42:15.000 --> 01:42:18.819 Sure, so what that might include is, or what it does 01:42:18.819 --> 01:42:22.829 include for that matter is, we have some driver assistants 01:42:22.829 --> 01:42:25.000 that are included in that number. 01:42:25.000 --> 01:42:30.220 We have general warehouse labor included in that number we 01:42:30.220 --> 01:42:35.000 have the forklift operators included in that number. 01:42:35.000 --> 01:42:39.000 I'm trying to think of a missing. 01:42:39.000 --> 01:42:42.359 That hourly wage position wasn't moved down into your new 01:42:42.359 --> 01:42:45.859 facility so I was kind of confused by that. That's kind of 01:42:45.859 --> 01:42:48.000 where my question lies in there. 01:42:48.000 --> 01:42:52.970 Right. And Tom just the other category that is in there is 01:42:52.970 --> 01:42:56.750 our merchandisers. Currently we do have some part time 01:42:56.750 --> 01:42:59.850 merchandisers that while they are not eligible for benefits 01:42:59.850 --> 01:43:02.689 that is the people that are doing the heavy lifting stock 01:43:02.689 --> 01:43:06.000 ing the shelves in in the supermarkets and whatnot. 01:43:06.000 --> 01:43:12.000 It's always been very good for the city. 01:43:12.000 --> 01:43:22.420 The college. Sorry, we're, we're taking minutes on 01:43:22.420 --> 01:43:23.069 television or on television right now. We can't hear what 01:43:23.069 --> 01:43:23.569 you're saying so if we're going to talk on it, the 01:43:23.569 --> 01:43:26.119 microphone to go do just be going exactly where I was 01:43:26.119 --> 01:43:29.750 headed with this, the part time labor while it may not be a 01:43:29.750 --> 01:43:30.000 benefits 01:43:30.000 --> 01:43:42.550 eligible. It does provide a benefit to the community 01:43:42.550 --> 01:43:43.310 because it does provide a very good income for many college 01:43:43.310 --> 01:43:44.090 students in the area. I think the where she's coming from 01:43:44.090 --> 01:43:45.279 if your average was $11 an hour near the average wage is $ 01:43:45.279 --> 01:43:49.640 24,000 a year, and now the proposal says it's going to $50, 01:43:49.640 --> 01:43:51.000 000 a year. 01:43:51.000 --> 01:43:55.569 Are you adding that many more technical people to the staff 01:43:55.569 --> 01:44:00.109 and it says there's only a six person growth per year. So 01:44:00.109 --> 01:44:03.000 those six people making $200,000 a year. 01:44:03.000 --> 01:44:05.000 No, sir. 01:44:05.000 --> 01:44:08.000 You're combining those I mean that the math doesn't work. 01:44:08.000 --> 01:44:12.850 If you're currently if you have 57 people now making $11 or 01:44:12.850 --> 01:44:15.000 whatever since an hour. 01:44:15.000 --> 01:44:18.000 Yes, $22,000 a year. 01:44:18.000 --> 01:44:23.489 I would have to go back in there and we were both as we're 01:44:23.489 --> 01:44:26.189 going to have 57 plus six and our average wages $50,000 a 01:44:26.189 --> 01:44:28.000 year you're doubling everybody's salary. 01:44:28.000 --> 01:44:30.000 Not necessarily. 01:44:30.000 --> 01:44:37.000 Because of the weighted average in there, so that if I 01:44:37.000 --> 01:44:45.670 increase one person from $15 to $20 an hour in one category 01:44:45.670 --> 01:44:53.000 and say there's five of those people, and the other. 01:44:53.000 --> 01:45:00.000 That would be a weighted average change that's different. 01:45:00.000 --> 01:45:00.000 Excuse me. 01:45:00.000 --> 01:45:03.149 What I can do for you is pull that apart, and instead of 01:45:03.149 --> 01:45:06.369 classifying it all as a labor position split it out into 01:45:06.369 --> 01:45:09.869 the individual labor categories, I lumped it together for 01:45:09.869 --> 01:45:13.000 conservation of space on the application form. 01:45:13.000 --> 01:45:17.569 But I'd be happy to split that out and provide that to 01:45:17.569 --> 01:45:20.000 Caroline to share with all of you. 01:45:20.000 --> 01:45:25.329 Under the new jobs created it is split warehouse merchand 01:45:25.329 --> 01:45:30.750 ising and route assist, but nine of none of those have the $ 01:45:30.750 --> 01:45:35.579 11 and 86 cent hourly wage and so that that's where my 01:45:35.579 --> 01:45:39.220 question was I thought I was looking for that wage to be 01:45:39.220 --> 01:45:44.000 moved to the new facility if that wage was going to stay. 01:45:44.000 --> 01:45:50.000 Now I have what you have in front of you in front of me. 01:45:50.000 --> 01:45:53.880 A portion of that is due to the fact that some of those are 01:45:53.880 --> 01:45:58.029 part time positions, and that is pulling down that hourly 01:45:58.029 --> 01:46:02.680 rate to the 1186 in the top section. Our expectation is 01:46:02.680 --> 01:46:06.409 that as we grow more of those do convert into full time 01:46:06.409 --> 01:46:13.000 roles and the full time roles will provide for a better 01:46:13.000 --> 01:46:16.000 hourly rate for the employees. 01:46:16.000 --> 01:46:23.399 Jim, how are you going to manage your new technology as far 01:46:23.399 --> 01:46:26.720 as maintenance of the facility that doesn't show up 01:46:26.720 --> 01:46:29.529 anywhere here. Is that going to be a contract labor or the 01:46:29.529 --> 01:46:31.000 maintenance of the new equipment. 01:46:31.000 --> 01:46:34.000 Yeah, your automated systems. 01:46:34.000 --> 01:46:39.350 Because that's a very low scale, we will yes you're right 01:46:39.350 --> 01:46:44.600 and the new piece of equipment from serious tech which is 01:46:44.600 --> 01:46:47.000 an automatic loader. 01:46:47.000 --> 01:46:51.750 That's pretty smart to run it. It may be more than that and 01:46:51.750 --> 01:46:56.310 I get that moving forward but at this point in time, I don 01:46:56.310 --> 01:47:00.670 't know if he didn't include it in this but that was that 01:47:00.670 --> 01:47:05.000 was something we are planning on having to add. 01:47:05.000 --> 01:47:08.949 So, we're hoping it's. They sold me a pretty good bill of 01:47:08.949 --> 01:47:12.000 goods it's over $5 million so they're good. Hopefully they 01:47:12.000 --> 01:47:12.000 're right. 01:47:12.000 --> 01:47:16.430 But also answer your question too and I don't know, and I'm 01:47:16.430 --> 01:47:19.000 against we put this together. 01:47:19.000 --> 01:47:22.039 But when we look at our average salaries where our cost 01:47:22.039 --> 01:47:25.760 really skyrockets is a CDL driver today is approaching $80, 01:47:25.760 --> 01:47:29.000 000 our salesmen are well over that 50. 01:47:29.000 --> 01:47:31.649 So there's a lot of people making more than that average 01:47:31.649 --> 01:47:34.340 and again, the issue with part time and I want you to look 01:47:34.340 --> 01:47:36.630 at that that may explain some of the, some of the 01:47:36.630 --> 01:47:38.000 difference there. 01:47:38.000 --> 01:47:43.069 That's the only thing I can tell you. And I just wanted to 01:47:43.069 --> 01:47:46.489 add that I appreciate you going lead certified. Yeah, that 01:47:46.489 --> 01:47:48.000 's really, we're excited about that. 01:47:48.000 --> 01:47:51.159 In fact, we're leaving next week to be to meet with our 01:47:51.159 --> 01:47:54.649 architect and that's a lot of what our discussion is around 01:47:54.649 --> 01:47:55.000 . 01:47:55.000 --> 01:47:59.449 Go ahead. Go ahead. It does say incorporate green 01:47:59.449 --> 01:48:02.880 initiatives, and is that just in the building or is that in 01:48:02.880 --> 01:48:05.680 like the machines and again we're going to see a little 01:48:05.680 --> 01:48:07.000 more when I get up there. 01:48:07.000 --> 01:48:10.300 I mean, one of the things right now that we're considering, 01:48:10.300 --> 01:48:13.270 and again it's cost benefit and I got to look at it but one 01:48:13.270 --> 01:48:16.390 of the conversations I know I'll have next week it's solar 01:48:16.390 --> 01:48:18.000 panels across the top. 01:48:18.000 --> 01:48:21.399 From what I've seen, it makes a lot of sense and the pay 01:48:21.399 --> 01:48:23.000 back isn't that long. 01:48:23.000 --> 01:48:25.220 I need my architects to kind of update me and make sure 01:48:25.220 --> 01:48:27.489 they're telling me the truth on that but it sounds like 01:48:27.489 --> 01:48:29.750 that's going to be a good idea and it may be something we 01:48:29.750 --> 01:48:31.000 can add to this building. 01:48:31.000 --> 01:48:33.000 I'm sure it's a perfect idea. 01:48:33.000 --> 01:48:39.000 So we're excited about it. 01:48:39.000 --> 01:48:42.550 One couple of comments. One thing is, is historically these 01:48:42.550 --> 01:48:45.000 guys have bought trucks from us. 01:48:45.000 --> 01:48:48.000 So they do buy locally. 01:48:48.000 --> 01:48:51.729 The other one is is their community support is pretty broad 01:48:51.729 --> 01:48:52.000 . 01:48:52.000 --> 01:49:04.310 I think a lot of us recognize that. And as the hours of 01:49:04.310 --> 01:49:05.439 service for drivers continues to get scrutinized, and their 01:49:05.439 --> 01:49:06.489 area of territory expands, they're going to have to hire 01:49:06.489 --> 01:49:07.000 more drivers. 01:49:07.000 --> 01:49:13.000 Thank you, Jim. Yeah, you're right. 01:49:13.000 --> 01:49:15.000 Mark. 01:49:15.000 --> 01:49:22.000 Are most of your employees living in Denton County? Yes, 01:49:22.000 --> 01:49:22.000 yes. 01:49:22.000 --> 01:49:25.000 Probably 95%. 01:49:25.000 --> 01:49:28.000 Maybe 90. I got a few that get in other areas. 01:49:28.000 --> 01:49:30.729 Are the technical skills that you need for the new system 01:49:30.729 --> 01:49:34.479 that you're putting in, is that able to be achieved here in 01:49:34.479 --> 01:49:35.000 town? 01:49:35.000 --> 01:49:38.000 Yes, yes, for sure. 01:49:38.000 --> 01:49:41.640 We have some pretty complicated systems with how we go to 01:49:41.640 --> 01:49:45.000 market, but they're telling me this is easier. 01:49:45.000 --> 01:49:51.000 So we'll find out. 01:49:51.000 --> 01:49:53.000 Question. 01:49:53.000 --> 01:49:55.680 We have you up here. Can you tell me a little bit about the 01:49:55.680 --> 01:49:58.000 community involvement that the company has? 01:49:58.000 --> 01:50:00.000 Sure. 01:50:00.000 --> 01:50:02.000 It's a good question. 01:50:02.000 --> 01:50:05.909 Because we've been involved in, you know, we're very 01:50:05.909 --> 01:50:09.000 involved, for example, in the rodeo. We've sponsored that 01:50:09.000 --> 01:50:09.000 for years. 01:50:09.000 --> 01:50:11.989 We've done an awful lot of initiatives around the 01:50:11.989 --> 01:50:15.000 university. We sponsor UNT. 01:50:15.000 --> 01:50:18.399 We're their lead sponsor. And in fact, next year, I'll be 01:50:18.399 --> 01:50:21.880 100% their lead sponsor. I'm going to bring in Dos Equis 01:50:21.880 --> 01:50:26.060 with Miller Lite, and we'll be their sole sponsor from an 01:50:26.060 --> 01:50:28.000 athletic standpoint. 01:50:28.000 --> 01:50:30.880 Listing out all the other events, we've got to, we 01:50:30.880 --> 01:50:34.109 literally do something, it seems, every week or twice a 01:50:34.109 --> 01:50:36.000 week around our community. 01:50:36.000 --> 01:50:38.579 The other side of it that nobody sees from time to time are 01:50:38.579 --> 01:50:41.800 all the golf tournaments. They call us for the beer, and we 01:50:41.800 --> 01:50:43.829 give them the beer, and you know, we don't get credit for 01:50:43.829 --> 01:50:45.000 it, but we just do it. 01:50:45.000 --> 01:50:49.640 But we are very, very involved in a lot of different things 01:50:49.640 --> 01:50:52.260 . I know we've got a couple of music festivals coming up 01:50:52.260 --> 01:50:54.000 this summer that I'm excited about. 01:50:54.000 --> 01:50:57.890 One in particular is an expanis, a spanish deal that we 01:50:57.890 --> 01:51:01.350 just sponsored with them. I think it happens right after 01:51:01.350 --> 01:51:02.000 Jazz Fest. 01:51:02.000 --> 01:51:04.350 So we're very involved with them and helping that get off 01:51:04.350 --> 01:51:06.550 the ground and giving them the startup money to get it 01:51:06.550 --> 01:51:10.000 going. So we try to get back. We really do. 01:51:10.000 --> 01:51:14.000 Where it makes sense. Thank you. 01:51:14.000 --> 01:51:20.000 Any more questions during our work session? 01:51:20.000 --> 01:51:25.100 All right, our work session time is over. We have a long 01:51:25.100 --> 01:51:28.000 agenda. We're going to thank you very much. 01:51:28.000 --> 01:51:32.300 We're going to take a break. We have lunch provided in the 01:51:32.300 --> 01:51:37.000 back. I would like to invite all of our guests to 01:51:37.000 --> 01:51:38.000 participate in that as well. 01:51:38.000 --> 01:51:41.329 Then we'll come back and start our regular meeting, which 01:51:41.329 --> 01:51:44.800 at that time, we will have more discussion and vote or make 01:51:44.800 --> 01:51:49.000 recommendations on the incentives and wrap up our meetings. 01:51:49.000 --> 01:51:54.000 Then we will go into our TURS board meeting. 01:51:54.000 --> 01:51:57.939 And the TURS board meeting should be very short. The agenda 01:51:57.939 --> 01:51:59.000 is short. 01:51:59.000 --> 01:52:02.350 So grab some food and I don't mind if we want to eat while 01:52:02.350 --> 01:52:06.000 we're doing that or if you can eat fast. That's great too. 01:52:06.000 --> 01:52:10.000 But we'll take a short break to have some lunch. 01:52:19.000 --> 01:52:21.000 Thank you. 01:52:49.000 --> 01:53:03.649 The EDP 18-007 consider a recommendation to the city didn't 01:53:03.649 --> 01:53:06.939 didn't see council regarding approval of the revised policy 01:53:06.939 --> 01:53:10.000 for tax abatement and incentives. We went over that first. 01:53:10.000 --> 01:53:13.000 This does not include the PID guidelines. 01:53:13.000 --> 01:53:22.710 So it's just the update to the tax abatement and incentive 01:53:22.710 --> 01:53:24.000 policy. 01:53:24.000 --> 01:53:27.930 The motion by Jill and a second by Carol Anne. Do we have 01:53:27.930 --> 01:53:32.000 any discussion or any other comments. 01:53:32.000 --> 01:53:35.000 All those in favor say aye. 01:53:35.000 --> 01:53:37.000 Any opposed. 01:53:37.000 --> 01:53:40.000 Motion carries unanimously. 01:53:40.000 --> 01:53:44.060 As a reminder, these are the recommendations to city 01:53:44.060 --> 01:53:45.000 council. 01:53:45.000 --> 01:53:50.489 Next item, EDP 18-008 consider a recommendation to the didn 01:53:50.489 --> 01:53:54.979 't city council regarding the approval of the revised public 01:53:54.979 --> 01:53:58.000 improvement district guidelines. 01:53:58.000 --> 01:54:03.000 Any comments or questions. 01:54:03.000 --> 01:54:14.359 I have a question. So the recommendation as included does 01:54:14.359 --> 01:54:15.000 not include residential opportunities. Is that correct. 01:54:15.000 --> 01:54:21.649 The proposed revised policy per council direction does not 01:54:21.649 --> 01:54:25.000 include residential pits. 01:54:25.000 --> 01:54:30.250 I think it would be a good idea to allow residential with a 01:54:30.250 --> 01:54:35.000 demonstrated demonstrable. 01:54:35.000 --> 01:54:40.000 Is there a way we can further discussion. 01:54:40.000 --> 01:54:43.000 Yes, that's an option. 01:54:43.000 --> 01:54:47.000 Do we need a motion to table. 01:54:47.000 --> 01:54:51.810 If we don't make a recommendation to council that doesn't 01:54:51.810 --> 01:54:55.000 prevent them from moving forward. 01:54:55.000 --> 01:54:58.319 No, and this this one is not time sensitive like the 01:54:58.319 --> 01:55:01.409 incentive policy is. So while we want to keep it moving 01:55:01.409 --> 01:55:02.000 forward. 01:55:02.000 --> 01:55:06.819 We're not on a hard deadline on this particular PID policy 01:55:06.819 --> 01:55:08.000 decision. 01:55:08.000 --> 01:55:16.119 Can we make a recommendation to consider the residential 01:55:16.119 --> 01:55:19.000 with a an impact and also define demonstrable. 01:55:19.000 --> 01:55:22.000 Yes, that's possible. 01:55:22.000 --> 01:55:25.000 We need a vote on that. 01:55:25.000 --> 01:55:29.020 Well, I think if that's if that's the recommendation that 01:55:29.020 --> 01:55:32.720 aside, aside from the change you would like to see the 01:55:32.720 --> 01:55:37.010 council consider adding in the consideration of residential 01:55:37.010 --> 01:55:41.170 pins and further defining what demonstrable public benefit 01:55:41.170 --> 01:55:42.000 looks like. 01:55:42.000 --> 01:55:46.420 And that could be the recommendation that you're okay with 01:55:46.420 --> 01:55:50.000 everything else but want to add in those things. 01:55:50.000 --> 01:55:52.000 Or you could just table it. 01:55:52.000 --> 01:55:58.670 I'm nodding. Do we want to make a recommendation to council 01:55:58.670 --> 01:56:03.560 that the recommendation couldn't wouldn't include really 01:56:03.560 --> 01:56:08.199 something that's finite because it's recommended looking 01:56:08.199 --> 01:56:12.119 into that so I would suggest that we table it with the 01:56:12.119 --> 01:56:15.000 information to be passed on to council. 01:56:15.000 --> 01:56:20.060 If everybody agrees we think it's a good idea to look at 01:56:20.060 --> 01:56:26.000 residential as long as it has a demonstrable public value. 01:56:26.000 --> 01:56:30.079 If anything, came across industrial commercial whatever was 01:56:30.079 --> 01:56:33.439 if we can prove something like that I don't know why we 01:56:33.439 --> 01:56:35.000 wouldn't look at it. 01:56:35.000 --> 01:56:38.079 I think it's harder if it's residential to prove that you 01:56:38.079 --> 01:56:41.659 're going to do that. If something came along. If two or 18 01:56:41.659 --> 01:56:45.000 came to town and said we want to do something that might. 01:56:45.000 --> 01:56:51.140 Maybe that does maybe that doesn't but that might be a good 01:56:51.140 --> 01:56:55.000 example of something like that. 01:56:55.000 --> 01:56:59.000 So I'm not do I need to do need to do anything with. 01:56:59.000 --> 01:57:03.770 That was a table table. Okay, that's a table. I think you 01:57:03.770 --> 01:57:08.220 do need to go ahead and make someone needs to make a motion 01:57:08.220 --> 01:57:09.000 to table. 01:57:09.000 --> 01:57:14.000 I'm like a motion. 01:57:14.000 --> 01:57:32.000 Motion. And a second. Any more discussion. 01:57:32.000 --> 01:57:35.890 I think I think the board wants to defer making a 01:57:35.890 --> 01:57:41.050 recommendation until the council has its further discussion 01:57:41.050 --> 01:57:46.000 so they're they're tabling making a recommendation today. 01:57:46.000 --> 01:57:49.210 But then when when I come back to you guys to talk more 01:57:49.210 --> 01:57:52.720 about kids I can convey the concerns of the board and then 01:57:52.720 --> 01:57:55.000 we'll just bring it back again. 01:57:55.000 --> 01:58:02.000 So the vote today is just to table the district. Correct. 01:58:02.000 --> 01:58:07.000 All those in favor say aye. Aye. Any opposed. 01:58:07.000 --> 01:58:10.000 Motion carries. 01:58:10.000 --> 01:58:14.000 All right, we have item number 18. 01:58:14.000 --> 01:58:20.689 That's 011 recommendation to the density council regarding 01:58:20.689 --> 01:58:24.000 an incentive for United States cold storage. 01:58:24.000 --> 01:58:29.000 Anybody want to have any further discussion or make a 01:58:29.000 --> 01:58:31.000 recommendation for this application. 01:58:31.000 --> 01:58:37.949 I would make a recommendation to approve an incentive at 25 01:58:37.949 --> 01:58:45.189 % for five years with the construction sales tax rebate and 01:58:45.189 --> 01:58:49.000 the DME energy dollars. 01:58:49.000 --> 01:58:54.000 Second. 01:58:54.000 --> 01:58:58.000 Five years. 01:58:58.000 --> 01:59:02.000 We have a motion and a second. 01:59:02.000 --> 01:59:03.000 Any further discussion. 01:59:03.000 --> 01:59:05.000 Yes. 01:59:05.000 --> 01:59:08.229 So rather than make the recommendation for the six years is 01:59:08.229 --> 01:59:11.000 listed your recommendation is for five years. 01:59:11.000 --> 01:59:12.000 Yes. 01:59:12.000 --> 01:59:17.770 Okay. I'd also like to go on the record to say that even 01:59:17.770 --> 01:59:23.210 though the the wages that we're looking at doesn't meet the 01:59:23.210 --> 01:59:27.000 target that the that we're supposed to be looking at. 01:59:27.000 --> 01:59:31.189 I think overall we would benefit by receiving this company 01:59:31.189 --> 01:59:34.000 here rather than turning them away. 01:59:34.000 --> 01:59:39.060 And so as you communicate with your board of directors in 01:59:39.060 --> 01:59:44.439 London, you can let them know that hopefully the wages will 01:59:44.439 --> 01:59:49.000 will continue to increase. 01:59:49.000 --> 01:59:51.000 I understand. 01:59:51.000 --> 01:59:52.000 I understand. 01:59:52.000 --> 02:00:06.000 We might need to send a delegation. 02:00:06.000 --> 02:00:09.000 Any other questions or discussion. 02:00:09.000 --> 02:00:10.000 Just a comment. 02:00:10.000 --> 02:00:12.000 I will not be voting in favor. 02:00:12.000 --> 02:00:17.449 I'm for the staff recommendation and I am glad the company 02:00:17.449 --> 02:00:22.000 is coming and I'm in favor of you guys coming. 02:00:22.000 --> 02:00:25.560 But I'm glad that you put five years instead of six that 02:00:25.560 --> 02:00:28.000 way the energy writer is the same. 02:00:28.000 --> 02:00:30.000 So there's not any confusion on that. 02:00:30.000 --> 02:00:32.000 It ends at the same time. 02:00:32.000 --> 02:00:35.000 But so just with that. 02:00:35.000 --> 02:00:44.000 I just wanted to go over any further discussion. 02:00:44.000 --> 02:00:45.000 All right. 02:00:45.000 --> 02:00:47.000 All those in favor say aye. 02:00:47.000 --> 02:00:48.000 Aye. 02:00:48.000 --> 02:00:50.000 All those opposed. 02:00:50.000 --> 02:00:55.000 We've got six one six to one. 02:00:55.000 --> 02:00:57.000 Motion carries. 02:00:57.000 --> 02:00:59.000 Appreciate all the comments and feedback. 02:00:59.000 --> 02:01:02.989 And I just to tag along to what Caroline said earlier I don 02:01:02.989 --> 02:01:06.000 't know if everybody picked up on this. 02:01:06.000 --> 02:01:10.000 Adam and remind everybody how things kind of work. 02:01:10.000 --> 02:01:14.970 Adam made contact with the commercial real real estate 02:01:14.970 --> 02:01:17.000 broker over a year ago. 02:01:17.000 --> 02:01:20.670 About this project and has helped with the city coordinate 02:01:20.670 --> 02:01:24.000 about four or five site visits over the past year. 02:01:24.000 --> 02:01:28.000 So this is a for you new folks and I would say years not 02:01:28.000 --> 02:01:32.000 necessarily long in the grand scheme of things. 02:01:32.000 --> 02:01:34.000 This is pretty quick one sometimes. 02:01:34.000 --> 02:01:36.000 So it started over a year ago. 02:01:36.000 --> 02:01:38.000 We're just now at this point. 02:01:38.000 --> 02:01:42.920 So good job by the staff city staff and chamber for 02:01:42.920 --> 02:01:46.000 bringing this to fruition. 02:01:46.000 --> 02:01:50.000 Thank you. 02:01:50.000 --> 02:01:54.000 All right. 02:01:54.000 --> 02:01:59.439 Consider recommendation to the density council regarding an 02:01:59.439 --> 02:02:02.000 incentive for Fisher 59. 02:02:02.000 --> 02:02:06.000 Discussion or comments. 02:02:06.000 --> 02:02:08.000 No big motion. 02:02:08.000 --> 02:02:12.000 Or a motion. 02:02:12.000 --> 02:02:16.170 I make a motion to approve the staff recommendation of 02:02:16.170 --> 02:02:21.000 construction cells tax rebate 25 percent abatement. 02:02:21.000 --> 02:02:24.000 I'll second that motion. 02:02:24.000 --> 02:02:25.000 All right. 02:02:25.000 --> 02:02:27.000 We've got a motion. 02:02:27.000 --> 02:02:29.000 And the 25th. 02:02:29.000 --> 02:02:30.000 Yes. 02:02:30.000 --> 02:02:33.000 So a total of 131 incentive. 02:02:33.000 --> 02:02:35.659 We've got a motion and a second for the staff 02:02:35.659 --> 02:02:37.000 recommendation. 02:02:37.000 --> 02:02:40.000 Any further discussion or comments. 02:02:40.000 --> 02:02:42.000 Yes. 02:02:42.000 --> 02:02:47.229 I'd like to go on record again and say that even though the 02:02:47.229 --> 02:02:51.109 wages may not meet with the target that we're looking for, 02:02:51.109 --> 02:02:54.550 I think the Fisher company has a long history here in our 02:02:54.550 --> 02:02:55.000 area. 02:02:55.000 --> 02:02:59.310 And it would be hard to go against someone who's made such 02:02:59.310 --> 02:03:03.000 a significant investment in our community. 02:03:03.000 --> 02:03:06.640 And it's unlike someone just coming to town. They've got a 02:03:06.640 --> 02:03:10.000 very strong and I think a very decent history here. 02:03:10.000 --> 02:03:14.770 And for that reason, I think I can say that I can be in 02:03:14.770 --> 02:03:18.000 favor of this recommendation. 02:03:18.000 --> 02:03:21.000 Anybody else. 02:03:21.000 --> 02:03:23.000 All those in favor say aye. 02:03:23.000 --> 02:03:24.000 Aye. 02:03:24.000 --> 02:03:26.000 Any opposed. 02:03:26.000 --> 02:03:30.560 And carries unanimously and we are through our regular 02:03:30.560 --> 02:03:35.000 meeting except for the staff reports to the board. 02:03:35.000 --> 02:03:44.000 So who wants to go first. 02:03:44.000 --> 02:03:45.000 Sorry. 02:03:45.000 --> 02:03:47.000 Do you want to have all the information. 02:03:47.000 --> 02:03:50.680 I think I am of the opinion if Adam agrees with me unless 02:03:50.680 --> 02:03:54.710 there are specific questions in the interest of time we can 02:03:54.710 --> 02:03:58.000 forgo discussion of staff presentations. 02:03:58.000 --> 02:04:00.000 But that's up to you all. 02:04:00.000 --> 02:04:03.000 Okay. 02:04:03.000 --> 02:04:07.720 So, in case you didn't notice we had a strange person 02:04:07.720 --> 02:04:10.000 walking in and sit down at our table here earlier. 02:04:10.000 --> 02:04:21.449 I mean, people know Michael is with you and the economic 02:04:21.449 --> 02:04:24.000 development is replacing Tom McCoy on board. 02:04:24.000 --> 02:04:26.000 So we're happy to have you here. 02:04:26.000 --> 02:04:27.000 I don't know. 02:04:27.000 --> 02:04:29.939 Do you want to tell everybody what you do because I wouldn 02:04:29.939 --> 02:04:31.000 't do it justice. 02:04:31.000 --> 02:04:33.000 I'm the AVP of innovation and commercialization. 02:04:33.000 --> 02:04:35.949 My job is to protect and commercialize intellectual 02:04:35.949 --> 02:04:38.979 property developed by the faculty and staff and other 02:04:38.979 --> 02:04:42.569 innovation programs such as developing mentoring students 02:04:42.569 --> 02:04:44.760 who are building companies and launching them here in the 02:04:44.760 --> 02:04:49.800 region and other projects as needed by the president or the 02:04:49.800 --> 02:04:51.000 DPR or anyone else. 02:04:51.000 --> 02:04:52.000 Great. 02:04:52.000 --> 02:04:53.000 We're happy to have you on board. 02:04:53.000 --> 02:04:54.000 Thanks. 02:04:54.000 --> 02:04:55.000 Happy to be here. 02:04:55.000 --> 02:04:56.000 All right. 02:04:56.000 --> 02:05:00.000 Anybody have anything else we need to talk about. 02:05:00.000 --> 02:05:03.000 You guys are letting me down. 02:05:03.000 --> 02:05:05.000 It's supposed to remind me about the spring break meeting. 02:05:05.000 --> 02:05:07.000 Spring break meeting. 02:05:07.000 --> 02:05:10.000 I was I was baiting you on that. 02:05:10.000 --> 02:05:13.819 We just wanted just everybody to see how all wise and all 02:05:13.819 --> 02:05:16.000 knowing you are so we just went to hell. 02:05:16.000 --> 02:05:17.000 It's like odds. 02:05:17.000 --> 02:05:22.289 Is anybody else, Keely can't be here spring break and 02:05:22.289 --> 02:05:25.000 Caroline cannot be here spring break. 02:05:25.000 --> 02:05:28.000 Can anybody else out of town? 02:05:28.000 --> 02:05:30.000 Maybe. 02:05:30.000 --> 02:05:34.000 Looks like we need to postpone that meeting. 02:05:34.000 --> 02:05:43.000 So to the following Wednesday. 02:05:43.000 --> 02:05:46.000 That's in March. 02:05:46.000 --> 02:05:52.000 What day is that Wednesday, March 21 a week later. 02:05:52.000 --> 02:06:04.000 We are scheduled to have a wait. 02:06:04.000 --> 02:06:06.000 Sorry. 02:06:06.000 --> 02:06:08.000 Can we just get staff to double check. 02:06:08.000 --> 02:06:10.939 I don't get some mobility committee on my schedule that day 02:06:10.939 --> 02:06:12.000 at 1130. 02:06:12.000 --> 02:06:16.319 I don't know if that is standing or that is just something 02:06:16.319 --> 02:06:21.000 on my calendar that hasn't gotten canceled yet. 02:06:21.000 --> 02:06:23.000 Okay. 02:06:23.000 --> 02:06:25.000 Because mobility is recorded. 02:06:25.000 --> 02:06:29.000 So it's in here. 02:06:29.000 --> 02:06:30.000 Okay. 02:06:30.000 --> 02:06:33.180 So if we could, I mean, everybody's generally in favor of 02:06:33.180 --> 02:06:36.000 finding a different date besides the 13th. 02:06:36.000 --> 02:06:42.000 So 14th will not meet on the 14th. 02:06:42.000 --> 02:06:46.130 But please keep an eye out for further information about 02:06:46.130 --> 02:06:49.000 times and locations for the following. 02:06:49.000 --> 02:06:52.000 Alternative dates. 02:06:52.000 --> 02:06:55.270 We'll keep we'll shoot for keeping it on the Wednesday, but 02:06:55.270 --> 02:07:01.000 it's going to depend on available rooms. 02:07:01.000 --> 02:07:04.560 If you have it in a different room, I can run back and 02:07:04.560 --> 02:07:05.000 forth. 02:07:05.000 --> 02:07:06.000 I can vote for her. 02:07:06.000 --> 02:07:09.000 I'm sure it's her proxy. 02:07:09.000 --> 02:07:13.859 Well, may determine what kind of we have some staff things 02:07:13.859 --> 02:07:17.000 to look at that may not be pressing. 02:07:17.000 --> 02:07:20.479 All right. But do you have anything else for the good of 02:07:20.479 --> 02:07:21.000 the order? 02:07:21.000 --> 02:07:25.340 We will adjourn our economic development partnership board 02:07:25.340 --> 02:07:29.000 meeting and we will move into our tours. 02:07:29.000 --> 02:07:32.000 Number two board meeting. 02:07:47.000 --> 02:07:57.000 [BLANK_AUDIO]