HomeMy WebLinkAboutResolution - 2001-R0300 - Enterprise Project With Red River Commodities, Inc. - 08/30/2001Resolution No. 2001—RO300
August 30, 2001
Item No. 69
RESOLUTION
WHEREAS, the Texas Department of Economic Development ("Department")
designated the City of Lubbock 2000 North Enterprise Zone (the "Zone") on September 1, 2000;
and
WHEREAS, Department will consider Red River Commodities, Inc. as an enterprise
project pursuant to a nomination and an application made by the City of Lubbock, Texas (the
"City"); and
WHEREAS, the City desires to pursue the creation of the proper economic and social
environment in order to induce the investment of private resources in productive business
enterprises located in the Zone and to provide employment to residents of the Zone and to other
economically disadvantaged individuals; and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act,
Texas Government Code (the "Act"), Red River Commodities, Inc. has applied to the City for
designation as an enterprise zone project; and
WHEREAS, the City finds that Red River Commodities, Inc. meets the criteria for
designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the
following grounds:
Red River Commodities, Inc. is a "qualified business" under Section 2303.402 of the
Act since it will be engaged in the active conduct of a trade or business in the Zone
and at least twenty-five percent (25.0%) of the business' new employees will be
residents of a Zone within the City's jurisdiction or economically disadvantaged
individuals;
2. Red River Commodities, Inc. is located in the Zone, or has made substantial
commitment to locate in the Zone, which has an unemployment rate of not less than
one and one-half (1 1/2) times the state unemployment rate;
3. There has been and will continue to be a high level of cooperation between public,
private, and neighborhood entities within the Zone; and
4. The designation of Red River Commodities, Inc., as an enterprise project will
contribute significantly to the achievement of the plans of the City for development
and revitalization of the Zone.
NomResRedRiv.doc
WHEREAS, the City finds that Red River Commodities, Inc. meets the criteria for tax
relief on other incentives adopted by the City and nominates Red River Commodities, Inc., on
the grounds that it will be located wholly within the Zone, will create a higher level of
employment, economic activity and stability; and
WHEREAS, the City finds that it is in the best interests of the City to nominate Red
River Commodities, Inc. as an enterprise project pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK;
That the findings of the City and its actions approving this resolution taken at the council
meeting are hereby approved and adopted.
BE IT FURTHER RESOLVED that Red River Commodities, Inc., is a "qualified
business", as defined in Section 2303.402 of the Act, and meets the criteria for designation as an
enterprise project, as set forth in Section 2303, Subchapter F of the Act.
BE IT FURTHER RESOLVED that the enterprise project shall take effect on the date of
designation of the enterprise project by the department and terminate five (5) years after that date
of designation.
PASSED BY THE CITY COUNCIL of the City of Lubbock this 30th day of
August 2001.
Lul
ATTEST:
Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
Richard Burdine, Assistant City Manager
NomResRedRiv.doc
APPROVED AS TO FORM:
Donald G. Vandiver, First Assistant City Attorney
Ddres/NomResRedRiv. doc
July 23, 2001
NomResRedRiv.doc
V%%M= RED RIVER
COMMODITIES, INC.
P.O. Box 3022, Fargo, ND 58108.501 42nd St. NW 58102
(800) 437-5539 • (701) 282-2600 • FAX: (701) 282-5325
www.redriv.com
Resolution No. 2001—RO300
Additional Locations:
Colby, KS
Lubbock, TX
Delamere, ND
Park Rapids, MN
Zevenbergen, Netherlands
Red River Commodities, Inc. (RRC) is a wholly owned subsidiary of Universal Corporation, which is
located in Richmond, Virginia. RRC operates facilities in Lubbock, Texas; Colby, Kansas; Park Rapids,
Minnesota; Delamere, North Dakota; Fargo, North Dakota; and Zevenbergen, Netherlands. Confectionery
and oil sunflower seeds are processed in Lubbock, Colby, and Fargo; dry edible beans are processed in
Park Rapids; bird food blending and packaging in Delamere and Fargo, followed by poppy seed and
caraway seed processing in Zevenbergen. The Fargo office also serves as the company headquarters.
The existing Lubbock plant, which was purchased by RRC in 1995, processes confectionery sunflowers for
markets in Mexico, Spain, and the United States. The expansion of the Lubbock facility is for the addition
of a bird food blending and packaging plant. The addition includes a 20,000 square foot warehouse and a
blending and packaging tower 50 feet tall. This new facility will complement our service to current do-it-
yourself hardware store retailers as well as add blending and packaging capacity to explore new retailers.
Our bird food market is limited to retailers within the United States.
The location of our property within the City of Lubbock, Texas is easily accessible by tractor -trailer from
main routes and highways. This is particularly attractive to us, since all the products will leave our facility
via tractor -trailer. Overseas customers are reached by tractor -trailer containers from Lubbock to Houston,
where they board steam ship lines.
RRC -Lubbock currently employs 12 full-time employees and 8 full-time seasonal employees. We are
projecting that 10-15 full-time employees will be needed for the new facility. The job classification of
these employees will be Laborer/Operators. The plant will be a state of the art computer controlled facility
with a mix of automated packaging equipment. Employee training to operate the plant and equipment,
offering opportunities for advancement within the company, and subsidized tuition reimbursement shows
RRC's commitment to the community.
RRC's projected capital investment will be $1,450,000, of which $700,000 will be used for building and
$750,000 will be used for blending, material storage and handling, and packaging equipment. RRC will
finance the entire cost of the expansion internally. There could be additional equipment purchases within
the 5 year designation period to increase the level of automation in the packaging area.
Construction on this facility began in June 2001, with equipment purchases completed in early July.
Construction completion and plant start-up is scheduled for early September 2001. Employees will be
hired as early as late August 2001.
RRC respects the implications of being designated a Texas Enterprise Zone Project. We look forward to
the opportunity in working with the State of Texas and the Enterprise Zone Program.
Regards,
44e.zC�,
Todd Mondry
Engineering Manager