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HomeMy WebLinkAboutResolution - 5726 - Grant Pre-Application & Application - EDA - LIA Industrial Park - 12_11_1997RESOLUTION NO.5726 Item #47 December 11, 1997 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Pre -application and Application for a Grant from the Economic Development Administration in the amount of $525,465.00 for funding of design, engineering, and construction of a water line and a sewer line with a lift station being the necessary infrastructure required to develop the Lubbock International Airport Industrial Park, attached herewith, and any associated documents, which Pre -application shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 11th day Of December, 1997 ATTEST: Ka a arnell, City Secretary TO CONTENT: Kevin G. alker, Business Liaison Officer APPROV D AS TO FORM: t D ald G. Vandiver, First Assistant City Attorney da/ccaocs/liaedarexes December 2, 1997 FIGURE I Standard Form 424 APPLICATION FOR OMB Approval No. 0348.0043 FEDERAL ASSISTANCE 2.DATESUBMMED Apo—raloenbfier 1. TYPE OF SUBMISSION: i DATE RECEIVED BY STATE Stan A=0CU brt icum bar AM atton yPreawacanon C Coruvuasrn ;D Cexutnmon .R DATE RECEIVED BY FEDERAL AGENCY Feoerat ldanbfttr Nfx►Consrmwn Non-C�onstrucwn S. APPLICANT INFORMATION L•aatkame: City of Lubbock Orwnyawrw U=Lubbock International Airport Adores Wp err ammy ar�. ww m eerr: Name uW taeorrarr nuffww of pwwm m ar aorxaaad on nuaan ur> •a" ns P.O. Box 2000 ap°tr'° n4—&meamw Mark Earle, Director of Aviation Lubbock, TX 79457 (806) 775-3126 4. EMPLOYER IDENTIFICATION NUMBER (E": 7. TYPE. OF APPLICANT: (enreraA=pnara renerrnvos) ❑ C 7 5_ 6 0 0 0 519 JEJ A,eUu H. frrdewwentSCA001O4SL County 1. Sfau Conaard Iruse.tWn of F ghW Laanu+p C. MLn=Vw J. Pnrate Urr iwgf A. TYPE OF APPLICATION:B. New (3 Cofuruawn C' Revoon D. Township K. Man Tnbe E. vftt:tata L. biawo" F. Yrttmrunatxl M. Pmfit Oroa= non q R*vi& Inter aoomonate 1enaRt) to bbiteb) a D G. Sotaas Qsau N. Ovter ISpeatr) . A. Incaas& Award B. Decrease Award C. Wcnme Ounsoe f. NAME OF FEDERAL AGENCY: D.Deaease Duratan Ofrrer (speayl Economic Development Administration lo. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER: I'll. DESCRIPTIVE TITLE OF APPUt:AM S PROJECT: 1 1 - 3 0 7 Lubbock International Airport TM-E-TITLE IX SSED/DEVENSE Industrial Park 12. AREAS AFFECTED BY PROJECT (Goes. Cowrats, Snits. em): See Attached 12. PROPOSED PROJECT ' 14. CONGRESSIONAL DISTRICTS OF: Scan Oran EneingOwe (a. AppMant ; t Prpfq U.S. Rep 13 & 19 See Attached u. ESTIMATED FUNDING: 16. 5 APPLICATION SUBJE= TO REVIEW BY STATE EXECUTIVE ORDER 12=PROCESS7 a. Feaww = 00 525,000 JK YES THIS PREAPPLICATK WAPPLICATION WAS MADE AVAILABLE TO THE STATE EXECUTIVE ORDER IZM PROCESS FOR b. Aopow S 00 I 525,000 REVIEW ON: C. Snfe : 00 DATE December IZ . 1997 a. Lfaal (: .00 D. NO. O PROGRAM IS NOT COVERED EYED. IZ27z O OORR PRAM HIS NOT BEEN SELECTED BY STATE FCF1 I. Onw i .00 1. Pro�am amine i OD 17. 8 THE APPLICANT' DELNOLIFNT ON ANY FEDERAL DE8T7 O Yta R'Yas.*mom an esptarmm id No p. TOTAL I : 1 , 050 , 000 OD iS. TO THE BEST OF MY KNOWLEDGE AND BEUEF. ALL DATA IN THIS APPLICATiONrDREAPPUCATION ARE TRUE AND CORRECT. THE DOCUMENT HAS BEEN CULT AUTHOR{ZIM BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE ATTACKED ASSURANCES F THE ASSISTANCE IS AWARDED. a. Type Name of Auftrorfsed Rewtsentabne D. rd* a TNeomm Ntattper Windy Sitton I Mayor I(806) 775-2011 �Vof Am ed Rt sent& VAI / 7IN—z- e. Dade Sigmcl q n 1 14—If? —q/3 Ararreraae lax Lqt W0.6 sorcwn Meaux/"del C&M~ AwfQ Attachment A Problem: Since 1980 there has been a 38.5% decrease in the manufacturing employment base in Lubbock. A recent downsizing by Texas Instruments contributed to this decrease by eliminating approximately 400 full time workers and 200 part time workers. The economy has suffered further deterioration as a result of the Reese AFB closure, which has resulted in the loss of 3,653 direct and secondary site related jobs. The City and County of Lubbock are still in the planning stages of redevelopment of Reese AFB and other projects to replace lost jobs in the community. One of the weaknesses defined in the Strategic Marketing Implementation Plan done by the ComerstDne Group for Market Lubbock, Inc. is the development of planned/business sites and the construction of industrial -type buildings, with one of the actions being to develop sites at Lubbock International Airport. Further development of the Lubbock International Airport industrial area will address this need. The 1997 Overall Economic Development Plan (OEDP), submitted to the Economic Development Administration, also shows a need to develop physical infrastructure in the planning region as a means to enhance the attractiveness of areas for private investment. One of the objectives stated in the OEDP is to secure community development and economic development funds to improve municipal water and sewer systems as needed. This project will address that need. Development of the industrial areas at Lubbock International Airport is a critical part of an effort to recruit new basic industry for the area and replace the jobs lost since 1980. It will also assist in the replacement of the 3,653 jobs lost as a result of the Reese AFB closure. It was determined that a railroad spur was a necessary part of the infrastructure required to successfully develop the park. According to the South Plains Economic Adjustment Strategy, prepared by the South Plains Association of Governments, one of Lubbock's greatest competitive advantages is the Lubbock International Airport (LIA). LIA is a state-of-the-art facility with plenty of land to develop for industrial use. The Economic Development Administration funded the request to build the rail spur. Additionally, in order to continue to make the industrial area marketable to industrial concerns, other components of the infrastructure need to be installed. These components are the necessary water and sewer improvements. One of Lubbock's target markets, as determined by the Cornerstone Marketing Implementation Plan, is high-tech industries. Developing the available land at Lubbock International Airport into a high tech industrial park would be a good fit due to the existing location of Texas Instruments in Lubbock and the extensive research and development that Texas Tech University conducts in the semiconductor field. Texas Tech University is working with several of the large semiconductor manufacturers to conduct this research. Another component of the development of the industrial park will be to attract exporting companies. LIA is an international airport with customs on site. This project would allow us to develop the park to attract more exporting companies. The City of Lubbock has an existing Foreign Trade Zone agreement with Corpus Christi. We also work very closely with the International Trade Center opened by Texas Tech University at the Small Business Development Center. The International Trade Center has been very successful with exports growing from 26 transactions at a value of $686,461 in 1994 to 207 transactions at a value of $21,685,708 in 1997. Recently, Texas Tech University located the Institute for Environmental and Human Health at Reese Air Force Base. The extension of the infrastructure at the LIA Industrial Park will also be an added incentive for support companies for the new Institute to locate in Lubbock. This Institute will be doing research and development in the environmental field, which could draw support industries and high technology companies in a related field to Lubbock. The location of the Institute at Reese Air Force Base and the attraction of support industries will help to offset the loss of jobs due to the closure of Reese Air Force Base. The East industrial area at Lubbock International Airport is a part of the North Enterprise Zone in the City of Lubbock. This area was designated an enterprise zone using high unemployment and below poverty level persons. The statistics used to qualify this area as an enterprise zone were as follows: unemployment 11.45% and below poverty level residents 31.61%. At this time, the City of Lubbock is in the process of creating the Lubbock International Airport enterprise zone that will include the rest of the industrial areas of the airport. Project Description: Briefly describe components of the project. For construction projects, attach a topographic map showing the location of the project. This project will fund the design, engineering, and construction of two components of the infrastructure required to develop the Lubbock International Airport Industrial Park. Those two components are a water and sewer line with a lift station. The water line is approximately 11,000 linear feet of 8-inch P.V.C. pipe in the general location shown on the accompanying maps. The sewer line is approximately 8,500 linear feet of 10-inch P.V.C. pipe, 5,280 linear feet of 6-inch P.V.C. force main, one lift station and associated manholes as shown on the accompanying maps. The purpose of the project is to provide an increase in the quality of the infrastructure by increasing the capacity (quantity) of and the pressure of the available water service and by making sewer available. Proponent's Capability: Briefly describe the proponent's capability to administer, Implement, and market the project. Explain when the project can be Implemented. Lubbock International Airport is a primary air carrier airport that serves a 2,800 square mile region in the South Plains of Texas and Eastern New Mexico. The airport is owned and operated by the City of Lubbock and has an annual operating budget of approximately $5,000,000.00. Primary responsibility for project administration will rest with Lubbock's Department of Aviation, an organization with a proven track record in grant administration and program management. Currently the organization is administering Federal Aviation Administration grants under the Airport Improvement Program and the Passenger Facility Charge Program. The Department of Aviation is continuously involved in the management of major construction projects on the airport. Ultimate responsibility for the grant project will rest with the City Council. The Department of Aviation actively markets air service, general aviation services, and the industrial development of airport properties. Problem: Briefly describe the severity of the problems that are adversely affecting economic development In the community and how the project will address the problems and complement the community's planning process. See Attachment A Project Impact: Briefly describe the expected Impacts from the project and how unemployed, underemployed and dislocated workers will benefit from the project. See Attachment B Project Beneficiaries: Identify employers who will benefit from the project: Company Name & Products Jobs Saved New Jobs Private Sector Committed or Investment $ Interest Only Five recent prospects have shown an interest in locating in the LIA Industrial Park. These five projects could create an estimated 1,400 jobs for the City of Lubbock if they decided to locate here. Project AG, one of these prospects, is a agricultural production company that would assist us in meeting our goal of attracting more value-added industries. However, we have seen a reluctance on the part of the prospects to become seriously interested in the LIA Industrial Park sites because of the lack of water and sewer infrastructure. Civil Rights Issues: If the proponent and/or employers Identified above, have been the subject of any unresolved Issues, or negative determinations Issued within the past two years, arising from civil rights compliance reviews, complaints, lawsuits or other allegations of discrimination on the basis of race, color, national origin, sex, disability or age, briefly describe the Issue(s) and stains thereof. Attachment B Project Impact: There are approximately 3,653 dislocated workers due to the closure of Reese Air Force Base. The unemployment rate in the city is fairly low, but in this area people do not stay on unemployment. They move somewhere else to find jobs. This causes slow or no growth in the population. The unemployment rate for the area to be included in the LIA Enterprise Zone is 9.2%. The percent of the population below poverty level in this area is 38.4%. The extension of the sewer and water lines to the industrial area of the airport is a necessary part of the development of the industrial park and the job creation. Manufacturers, and other types of basic industries, cannot be located in the industrial park without the basic infrastructure in place. New businesses locating in the airport industrial areas would create jobs for existing unemployed, underemployed workers, and would help absorb some of the workers dislocated due to downsizing and the closure of Reese AFB. The increase in basic industrial activity would stimulate a related increase in the service and retail sectors of the economy. This would provide a wide range of jobs for unemployed workers at all educational and skill levels. The infrastructure associated with the industrial development at the airport is a necessary component to have in place in order to market the development effectively. The City of Lubbock and Lubbock County are a part of the South Plains Economic Development District that was authorized by EDA. The City of Lubbock was designated as a growth center and as such is eligible for public work funds. Of the fifteen counties that comprise the Economic Development District, 11 are redevelopment areas. Of the eight counties adjacent to Lubbock County, seven are redevelopment areas. The City of Lubbock as a growth center, provides jobs to stabilize the economies of the redevelopment areas. The Industrial Park will attract new industries and stimulate jobs to help to stabilize the economies of the redevelopment areas. To further assist with unemployment and underemployed, the City has created enterprise zones and are looking at establishing a third zone that will include the industrial park area. The City has taken a proactive stance and is giving a great deal of preference to companies locating in the enterprise zones. NOu-94-1997 IS:52 us DEPT OF SCE r urumg: S12916SGI3 P.07i07 Ca wtrucrioa Projea Bu tet F c Non-Con=vason P s*ed Budt ct S+mmatr Ad===Zd.vc E=caxs 20,000 Ptts=tl Land. Smut i. ROW. V-semenfc 35,000 Frbxe Rftcfiu Vz1x2rioa & Incideaal Cosa to Acquisi rased AM rVa & Inspect= 108,000 k44== Cm=uc6= Demotmaa & Eqj4=C= 722,930 supplies 164,070 Cant conmucti= Od= Taal Dian charges Indirect ChUM Toot ?Mioet Gorr 1,050,()00 Toot Project Cost identify sources of non-EDA finding: Airport capital fund balance - (Airport Facilities and System Improvements, fund 254) This fund contains year end balances that are on deposit. Proceeds are drawn on the basis of Capital Projects approved by City Council. lWe/Ownership/Operation and Maintenance: Wonstrucdw Pr4leds) 1. Will the b=ht= ftmded by IDA be owned, operatedand/or maintained by an endty other than the proponent? If yes, idauify. No 2. Will the seal property to be improved or the des funded by IDA be mortMed or cued as oollatcral for any financing and/or is sny real property to be used for tt project carremly martgaged or being used for coilartral? If yes, a plain. No 3. If the facilities iiiadm by IDA will i m iude acquisition, ==ruction. or improve = of a building or acgtusidion or improvement of significant items of tamgrble personal property, cam the prvpanent provide a security iatearst to IDA? If no, explain. Eariroomentstl Issues: 4f yes to any questions be2aw, brio a:plata [ j N/A [ j YES M NO Will the project be located in m adjacent to a floodplain or wetland Brea? (l N/A [ I YES M NO Will the project be located in or adjacent to an area with kno m haurdotts or toxic contamiaarion? (] N/A (] YES 91 NO Will there be nay toxic or hamrdeos waste, or asbestos associated with this project or employers bmef dzg from this project? I l NIA I I YES pQ NO Will the project impact my wcbmbgical sites, buildings, or stru == older than SO years, or nay properties listed on, or eligible for the National Register of Historic Places? I ] NIA [ ] YES M NO Will this project result in my aher adverse cavironmeasal imPacts Wbi:h would affect endaaScred cr threatened species, same rives, or other stnsitivt ecological habitats? TOWL P.07 ONE A ZONE ZONE A-- �„04`• r Ih±` ZONE A--M ZONE NE A FLOOD HAZARD BOUNDARY VAP• I� LUBBOCK COUNTY, I; TEXAS INE A;:' 1j UNINCORPORATED AREA Ii PAGE 5 OF 12 NSEE MAP INDEX FOR PAGES HOY PRINTED) rI l I t ffffCT]VE DATE: NOVEMBER 29.1977 Y�f i COMMUNITY -PANEL NO. �+ 480915 0005 A Lubbock Municipal Airport U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT •iDFYt Af. Y4 • . •• •. etM1�trrM ZONE I x ZONE