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HomeMy WebLinkAboutResolution - 2015-R0302 - Approve MLI Project Or Expenditure - Bayer Cropscience - 09/10/2015Resolution No. 2015-RO302 Item No. 6.31 September 10, 2015 RESOLUTION WHEREAS, pursuant to Article IV, Section 5 of the Amended and Restated Bylaws of Market Lubbock Economic Development Corporation ("Corporation"), the City of Lubbock, as the Corporation's authorizing unit, has the authority to approve all programs and expenditures of Market Lubbock, Inc.; 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 Market Lubbock, Inc., 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 Market Lubbock, Inc., in the amount set forth in Exhibit "A" attached hereto and incorporated herein by reference, to be provided to Bayer CropScience is hereby approved pursuant to Section 5 of the Amended and Restated Bylaws of the Corporation. Passed by the City Council on September 10, 2015 GLE C. ROB RTSON, MAYOR ATTEST: �&, , -5K- Reb tca Garza, City Secretary APPROVED AS TO CONTENT: City Manager Justi P 'tt, Ass'stant City Attorney ccdocs/RES. Market Lubbock Expenditure -Bayer CropScience August 26, 2015 Resolution No. 2015-R302 RE 15-26 RESOLUTION APPROVING BAYER CROPSCIENCE THE STATE OF TEXAS COUNTY OF LUBBOCK At a regular meeting of the Board of Directors of MARKET LUBBOCK, INC., a Texas nonprofit corporation (MLI), on Wednesday, July 22, 2015, held in conformity with the bylaws, a quorum being present and acting, the following resolution was unanimously adopted: WHEREAS, MLI presented to members of the Board the proposal of a possible Economic Development Grant and Contract to Bayer CropScience. 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 Bayer CropScience $250,000 a Capital Investment incentive, to be paid out over a five (5) year period after the project is completed. WHEREAS, The Board of Directors of MLI finds that an Economic Development Grant and Contract offering the incentives for capital investment 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. David Sharbutt, and Seconded by director, Mr. Les Eubank, it was approved, IT WAS RESOLVED that MLI offer and, if accepted by Recipient, enter into an Economic Grant and Contract with Bayer CropScience. This Economic Development Grant and Contract will be on the normal terms and conditions of such Economic Development Grant and Contract offered by MLI to existing businesses and business prospects and authorize the CEO to enter into and negotiate Performance Agreement. JOHN OSBORNE, PRESIDENT & CEO I C.C/ LINDA DAVIS, SECRETARY MLI Project Presented to City Council 2015 Project New Coke Bayer Crop Science is consolidating West Texas Breeding & Trait Development Research facilities to the City of Lubbock. Bayer has chosen a property located at East Loop 289 and 191' Street. This project will be the largest facility of this type for Bayer CropScience in the United States. Bayer will be doing a $17.3 million capital investment project, which includes two processing facilities, two barns and an office complex. Bayer hopes to start construction this year and complete by 4th Quarter of 2016. The Market Lubbock, Inc. Board of Directors has voted to incent Bayer CropScience $250,000 in capital investment to be paid out over a 5 -year period after the project is completed. The Project will generate additional benefits and costs for local taxing districts. Overall, the City will receive approximately $1,113,600 in net benefits over a 10 -year period and the Project will generate $2,359,600 in total for all local taxing districts. • The present value of net benefits* to the City of Lubbock over 10 years (fiscal) is $869,102. • The present value of net benefits to all taxing districts over 10 years (fiscal) is $1,830,648. *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 Market Lubbock, Inc. 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.