HomeMy WebLinkAboutResolution - 2013-R0148 - Approve LEDA Expenditure - Republic National Distributing Company - 05/01/2013Resolution N0. 2013—RO148
May 1, 2013
Item No. 6.10
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 Republic National Distributing Company is hereby
approved pursuant to Section 501.073 of the Texas Local Government Code.
Passed by the City Council on May 1, 2013
ON, MAYOR
ATTEST:
-- -1.0.11 L 5K
Retie'ca Garza, City Secret
APPROVED AS TO CONTENT:
Quincy Whit ssistant/City Manager
A7V./l
D AS O FORM:
Chad Weaver, Assistant City Attorney
vw:ccdocs RES.LEDA Expenditure -Republic National
April 19, 2013
Resolution No. 2013-RO148
LEDA and MLI Projects
Presented to City Council
Republic National Distributing Company is a wine and spirits distribution company built on the strong
foundations of long-term, well-established, family owned companies. Today, Republic National is the
second largest beverage alcohol distributor of premium wine and spirits in the U.S. and employs more
than 7,000 individuals nationwide.
Republic National Distributing Company plans to consolidate their Amarillo and Odessa distribution
centers into a new, $5.6 million, 125,000 square foot facility at the Lubbock Business Park. Over the next
five years they will create 98 jobs with annual salaries of $3,597,380.
The Lubbock Economic Development Alliance Board of Directors has voted to incent Republic National
Distributing Company 16.38 acres in the Lubbock Business Park for the creation of 98 new jobs and new
capital investment of $5.6 million.
The new distribution center will increase Republic National's efficiencies and will be a great investment
to the Lubbock Business Park.
• This employment creates an additional 57 indirect (suppliers/support operations) jobs and
induced jobs (retail/entertainment/hospitality) for a total of 155 jobs.
• Annual economic impacts of the operation once fully operational on the Lubbock MSA include a
total earnings impact* of $6.3 million.
• The present value of net benefits** to the City of Lubbock over 10 years (fiscal) is $1,440,983.
• The present value of net benefits to all taxing districts over 10 years (fiscal) is $3,479,858.
*Earnings impact includes all salaries/wages, benefits, and other compensation to employees.
**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 ImpactT"', a model by Impact DataSource. 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