HomeMy WebLinkAboutResolution - 2020-R0016 - LEDA Expenditure - Tyler Technologies - 01/14/2020 Resolution No. 2020-R00016
Item No. 6.13
January 14,2020
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 Tyler Technologies, Inc., is hereby approved pursuant to Section 501.073 of the
Texas Local Government Code.
Passed by the City Council on January 14 2Q20
DANIEL M. POPE, MAYOR
ATTEST:
Re e ca Garza, City Secre ry
APPROVED AS TO CONT T•
Brianna Gerardi, Business evelo ent Director
APPROVED AS TO FORM:
V)h *&VZ�6
Ke li Leisure, Assistant City Attorney
ecdocs/RES.LEDA Expenditure—Tyler Technologies
12.20.19
LEDA Project
Presented to City Council
January 14,2020
Project Light Brigade
Tyler Technologies, Inc. is a major public sector software company. It is the largest software company in
the United States that is solely based on providing integrated software and technology services to the
public sector—states, cities, counties, and school districts.Tyler Technologies is investing$5 million into
their current facilities and plan to hire 115 new employees over the next five years with average salaries
of approximately$60,000.
The Lubbock Economic Development Alliance Board of Directors has voted to intent Tyler Technologies
for up to 115 jobs over the next five year. Each job will be incented$10,000 to be paid out over a five year-
period as the jobs are created.
Annual economic impacts of the business once fully operational on Lubbock County include a total earnings
impact* of $62,723,028 and a total value-added impact (change in Lubbock County's Gross Regional
Product) of$19,525,806.
• This employment creates an additional 52 indirect(suppliers/support operations) and induced
jobs (retail/entertainment/hospitality) for a total of 167 jobs.
• The present value of net benefits**to the City of Lubbock over 10 years (fiscal) is $452,935.
• The present value of net benefits to all taxing districts over 10 years (fiscal) is$803,181.
*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 Impact", 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 19-42
RESOLUTION APPROVING TYLER TECHNOLOGIES, INC. PROJECT
THE STATE OF TEXAS
COUNTY OF LUBBOCK
At a regular meeting of the Board of Directors of LUBBOCK ECONOMIC
DEVELOPMENT ALLIANCE, INC., a Texas nonprofit corporation (LEDA), on Wednesday,
December 18, 2019, held in confonnity 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 Tyler Technologies, Inc. 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 Tyler Technologies, $10,000 for up to 115 jobs to be paid out over a five-year
period as the jobs are created. Tyler Technologies is investing $5 million in their- current
facilities and hiring 115 new employees with average salaries of approximately $60,000.
WHEREAS,The Board of Directors of LEDA finds that an Economic Development Grant
and Contract offering job creation incentive of$10,000 for up to 115 jobs to be paid out over a
five year period 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, Ms. SuzAnn Kirby, and Seconded by director, Mr. Matt
Bumstead, with Mr. Brett Cate abstaining, it was approved,
IT WAS RESOLVED that LEDA offer and, if accepted by Recipient, enter into an
Economic Grant and Contract with Tyler Technologies Pumps, Inc. This Economic Development
Grant and Contract will be on the normal Cerins 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.
JOHN SBORNE, PRESIDENT& CEO
LIN A DAVIS. SECRETARY