HomeMy WebLinkAboutResolution - 2013-R0236 - Approve LEDA Program/Expenditure - Professional Rebuild & Optimal Service LLC - 07/23/2013I
Resolution No. 2013-RO236
Uuly 23, 2013
Item No. 5.11
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 Professional Rebuild & Optimal Service, LLC is hereby
approved pursuant to Section 501.073 of the Texas Local Government Code.
Passed by the City Council on July 23, 2013
GLFAU. ROB RTSON, MAYOR
Eve 10 3 1
Rebeccrarza, City Secretark--�
APPROVED AS TO CONTENT:
A- ,. A ,e
uincy Whiyf/Assistant City Manager
APPRO ED AS TO FORM:
Chad Weaver.. Assistant City Attorney
vw:ccdocs, RES. Professional Rebuild & Optiomal Service, LLC
7.9.2013
LEDA and MLI Projects
Presented to City Council
July 2013
Professional Rebuild & Optimal Service, LLC is a full-service shop that rebuilds and restores air and
gas compressing units to their Original Equipment Manufacturer (OEM) specifications. They plan to
expand their existing facility downtown to double their capacity.
Over the next five years, the PROS Company will create 29 new jobs resulting in total combined salaries
of $1,127,200 and a capital investment of $1.1 million.
The Lubbock Economic Development Alliance Board of Directors has voted to incent Professional Rebuild
& Optimal Service, LLC $111,000 over the next 5 years for the creation of 29 new jobs and a capital
investment of $1.18 million, as the jobs are created.
• This employment creates an additional 57 indirect (suppliers/support operations) and induced
jobs (retail/entertainment/hospitality) for a total of 86 jobs.
• Annual economic impacts of the business once fully operational on the Lubbock County include a
total earnings impact* of $1.8 million and a total value added impact (change in Lubbock County's
Gross Regional Product) of $2.8 million.
• The present value of net benefits** to the City of Lubbock over 10 years (fiscal) is $234,223.
• The present value of net benefits to all taxing districts over 10 years (fiscal) is $338,641.
*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 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 A