HomeMy WebLinkAboutResolution - 2018-R0380 - W.L. Plastics Corp. - 10/25/2018Resolution No. 2018-RO380
Item No. 6.11
October 25, 2018
RESOLUTION
WHEREAS, pursuant to Section 501.073 of the Texas Local Government Code the City of
Lubbock, as the corporation's authorizing unit, has the authority to approve all programs and
expenditures of the Lubbock Economic Development Alliance (LEDA); and
WHEREAS, the City Council finds that it is in the best interest of the public to approve the
program or expenditure, as proposed to the City Council by LEDA, as set forth in Exhibit "A"
attached hereto and incorporated herein by reference; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the program or expenditure of the Lubbock Economic Development Alliance, in the
amount set forth in Exhibit "A" attached hereto and incorporated herein by reference, to be
provided to W.L. Plastics Corporation, is hereby approved pursuant to Section 501.073 of the
Texas Local Government Code.
Passed by the City Council on October 25. 2018
DANIEL M. POPE, MAYOR
ATTEST:
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Rebe ca Garza, City Secretary
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APPROVED AS TO CONTENT:
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J stin Pr -tt, B siness Deve opment Director
APPROVED AS TO FORM:
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Keith Leisure, Assistant City Attorney
ccdocs/RES. LEDA Expenditure — W.L. Plastics Corporation
October 8, 2018
LEDA Project
Presented to City Council
October 25, 2018
Project Blackhawk
Project Blackhawk, WL Plastics Corporation, is the leading US manufacturer of High -Density
Polyethylene (HDPE) pipe. Their hope is to build their 911, US manufacturing plant in the Lubbock Rail
Port, which would serve the oil, gas and water markets in West Texas.
WL Plastics Corporation's new facility will include between 50,000 and 60,000 square feet of
manufacturing space, with a number of exterior concrete pads to support exterior equipment, and a
10 to 15-acre storage yard where finished pipe will be stored until shipped. WL Plastics will be a
heavy user of rail and they anticipate an average of 50 rail cars per month delivering raw materials
to the site. They will invest $17 million in the new facility and anticipate hiring 40 full-time employees
with an average salary of $54,000.
The Project's operations will support employment and other economic impacts in the community.
The 40.0 workers directly employed by the Project will earn approximately $54,000 per year on
average over the next 10 years. This direct activity will support 36.0 indirect and induced workers in
the community earning $42,000 on average over the next 10 years. The total additional payroll or
workers' earnings associated with the Project is estimated to be approximately $38.9 million over the
next 10 years. Accounting for various taxable sales and purchases, including activity associated with
the Project, worker spending, and visitors' spending in the community, the Project is estimated to
support approximately $80.9 million in taxable sales over the next 10 years.*
This employment creates an additional 36.0 indirect (suppliers/support operations) and induced
jobs (retail/entertainment/hospitality) for a total of approximately 76 jobs.
• The present value of net benefits** to the City of Lubbock over 10 years (fiscal) is $2,665,202.
• The present value of net benefits to all taxing districts over 10 years (fiscal) is $3,831,444.
*Earnings impact includes all salaries/wages, benefits, and other compensation to employees. Value
added impact (change in Lubbock County's Gross Regional Product) includes earnings, taxes, and
profits that the company has added to its inputs and is equivalent to revenue less outside purchases
(of materials and services). This represents the wealth created and is also called value-added output,
or productivity.
**The Present Value of Net Benefits is a way of expressing in today's dollars, dollars to be paid or
received in the future. Today's dollar and a dollar to be received or paid at differing times in the future
are not comparable because of the time value of money. The time value of money is the interest rate
or each taxing entity's discount rate.
This analysis was conducted using Total ImpactTM, a model by Impact Data Source. The analysis was
performed using company data, rates and information provided to Lubbock Economic Development
Alliance. In addition, the model uses certain estimates and assumptions common for this type of
analysis and based on data collected for Lubbock County. Using this data, the impact from the facility
and the costs and benefits for relevant taxing districts were calculated using multipliers provided by
Economic Modeling Specialists Inc.
RE 18-32
RESOLUTION APPROVING WL PLASTICS CORPORATION
THE STATE OF TEXAS
COUNTY OF LUBBOCK
At a Special -Called meeting of the Board of Directors of LUBBOCK ECONOMIC
DEVELOPMENT ALLIANCE, INC., a Texas nonprofit corporation (LEDA), on Thursday,
October 4, 2018, held in conformity with the bylaws, after due notice as therein provided, a quorum
being present and acting, the following resolution was unanimously adopted:
WHEREAS, LEDA presented to members of the Board the proposal of a possible
Economic Development Grant and Contract to WL Plastics Corporation. The terms and conditions
of such Economic Development Grant and Contract, other than the normal terms and conditions
applicable to all such Economic Development Grant and Contracts by the Corporation, are
described generally as follows, to wit:
Grant WL Plastics Corporation for the construction of their new High -Density
Polyethylene (HDPE) Pipe Manufacturing facility to be in the City of Lubbock and provide grants
for job creation and capital investment potentially totaling $1,560,020 with payments expressly
made under certain terms and conditions, as earned in a specified time.
WHEREAS, The Board of Directors of LEDA finds that an Economic Development Grant and
Contract offering the incentives for job creation described above meet and comply with the
qualifications and purposes of the Corporation for the granting of such Economic Development
Grants and Contracts.
Upon Motion by Director, Mr. Mark Griffin, and Seconded by director, Mr. Jim Gilbreath,
it was approved,
IT WAS RESOLVED that LEDA offer and, if accepted by Recipient, enter into an
Economic Grant and Contract with WL Plastics Corporation. This Economic Development Grant
and Contract will be on the normal terms and conditions of such Economic Development Grant
and Contract offered by LEDA to existing businesses and business prospects and authorize the
CEO to enter into and negotiate Performance Agreement.
DAVIS, SECRETARY