HomeMy WebLinkAboutResolution - 2013-R0149 - Approve LEDA Program/Expenditure - Custom Teleconnect LLC - 05/01/2013Resolution No. 2013-RO149
May 1, 2013
Item No. 6.11
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 Custom TeleConnect, LLC is hereby approved pursuant to
Section 501.073 of the Texas Local Government Code.
Passed by the City Council on May, _" 2013
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GLE . OB ON, MAYOR
ATTEST:
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Reb ca Garza, City Secreta
APPROVED AS TO CONTENT:
uincy , Assistant City Manager
APPROV D A TO FORM:
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Chad Weaver, Assistant City Attorney
vw:ccdocs`RES.LEDA Expenditure -Custom TeleConnect, LLC
April 19, 2013
Resolution No. 2013-RO149
LEDA and MLI Projects
Presented to City Council
Custom TeleConnect, LLC, incorporated in 1993, is a full service operator service provider
headquartered in Las Vegas. They currently have locations in Lubbock and Las Vegas. Custom
TeleConnect specializes in telecommunications as they relate primarily to the hospitality industry.
Custom TeleConnect takes pride in hiring sight impaired and many handicapped employees.
Custom TeleConnect currently employs about 40 in the Lubbock office and this expansion project would,
over five years, add 163 jobs in order to provide additional operator services for the hospitality industry.
The additional employees will add approximately $3.5 million in annual salaries to Lubbock. Custom
TeleConnect plans to move into the Sentry III Plaza Office Building at 5214 68th Street and will invest
approximately $228,000 in capital investment.
The Lubbock Economic Development Alliance Board of Directors has voted to incent Custom
TeleConnect, LLC, $15,000 for 5 management positions, out of the total 163 jobs that will be created, to
be paid out over a 5 -year period as the jobs are created.
• This employment creates an additional 61 indirect (suppliers/support operations) and induced
jobs (retail/entertainment/hospitality) for a total of 224 jobs.
• Annual economic impacts of the business once fully operational on the Lubbock MSA include a
total earnings impact* of $5.3 million.
• The present value of net benefits** to the City of Lubbock over 10 years (fiscal) is $286,589.
• The present value of net benefits to all taxing districts over 10 years (fiscal) is $364,874.
This project is a great for Lubbock and we are proud they chose Lubbock for their expansion.
*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 Impact'", 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 the Lubbock MSA. 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