HomeMy WebLinkAboutResolution - 2015-R0203 - Approve LEDA Funding - United Supermarkets - 06/11/2015Resolution No. 2015-RO203
Item No. 6.22
June 11, 2015
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 United Supermarkets is hereby approved pursuant to Section 501.073 of the Texas
Local Government Code.
Passed by the City Council on June 11, 2015
G N C. KOBERTSON, MAYOR
ATTEST:
Re cca Garza, City Secretary
APPROVED AS TO CONTENT:
Quincy Wh&Deputy City Manager
APPROVED AS TO FORM:
Ju tin ruitt, Assistar'TL Ci Attorney
ccdo S. LEDA Expenditure -United Supermarkets
May 27, 2015
LUBBOCK
ECONOMIC
LEDA Project CE 9 DEVELOPMENT
Presented to City Council ALLIANCE
June 11, 2015
Project Hometown II
Project Hometown 11, United Supermarket is doing a major expansion project at their current Lubbock
distribution site. United will be taking on more stores in Texas and Oklahoma. This project will be
adding an additional 200,000 square feet and $33 million in capital investment and creating 190 new jobs
with $7.19 million in annual salaries.
The Lubbock Economic Development Alliance Board of Directors has voted to incent United Supermarkets
$656,000 for 180 of the 190 new jobs, that qualify for incentives, that are creating, to be paid out over a 5 -year
period.
Annual economic impacts of the business once fully operational on the Lubbock County include a total
earnings impact* of $11,876,452 and a total value added impact (change in Lubbock County's Gross
Regional Product) of $22,600,000.
• This employment creates an additional 120.9 indirect (suppliers/support operations) and induced
jobs (retail/entertainment/hospitality) for a total of 310.9 jobs.
• The present value of net benefits** to the City of Lubbock over 10 years (fiscal) is $3,438,685.
• The present value of net benefits to all taxing districts over 10 years (fiscal) is $6,206,395.
*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.
EXHIBIT
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