HomeMy WebLinkAboutResolution - 2013-R0237 - Approve LEDA Program/Expenditure - Amplisine Labs LLC - 07/23/2013Resolution No. 2013-RO237
July 23, 2013
Item No. 5.12
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 AmpliSine Labs LLC, is hereby approved pursuant to
Section 501.073 of the Texas Local Government Code.
Passed by the City Council on
SON, MAYOR
ATTEST:
Reb cca Garza, City Secre
APPROVED AS TOf CONTENT:
Quincy WtM, Assistant City Manager
APP D A TO FORM:
Chad Weaver, Assistant City Attorney
vw:ccdocs RES.AmpliSine Labs LLC
7.9.2013
LEDA and MLI Projects
Presented to City Council
July 2013
AmpliSine Labs LLC, specializes in developing and commercializing new technology, specifically with
regards to automation and control, electrical construction work, wireless communications, data
management and highly engineered software -based systems.
AmpliSine's technology is truly revolutionizing the industry, and through increasing operational
efficiencies and other cost -reducing measures, clients such as oil and gas companies and other water
infrastructure entities now have a key to open the door to more effective operations.
AmpliSine Labs is expanding their Lubbock location with the addition of 115 new jobs over the next five
years with jobs that have average salaries of over $44,000, with a capital investment of at least $1.25
million. The new staff consists of professionals from various engineering, computer science, and business
backgrounds.
The Lubbock Economic Development Alliance Board of Directors has voted to intent AmpliSine Labs LLC,
$528,500 for 115 jobs that will be created, to be paid out over a 5 -year period as the jobs are created.
This project is a great for Lubbock and we are proud they chose Lubbock for their expansion.
• This employment creates an additional 77 indirect (suppliers/support operations) and induced
jobs (retail/entertainment/hospitality) for a total of 192 jobs.
• Annual economic impacts of the business once fully operational on the Lubbock County include a
total earnings impact* of $7.4 million and a total value added impact (change in Lubbock County's
Gross Regional Product) of $9.2 million.
• The present value of net benefits** to the City of Lubbock over 10 years (fiscal) is $201,504.
• The present value of net benefits to all taxing districts over 10 years (fiscal) is $382,355.
*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 the 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