HomeMy WebLinkAboutResolution - 2013-R0238 - Approve LEDA Program/Expenditure - Taylor Chemical LTD - 07/23/2013Resolution No. 2013-RO238
July 23, 2013
Item No. 5.13
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 Taylor Chemical LTD DBA SERVCO Chemical is hereby
approved pursuant to Section 501.073 of the Texas Local Government Code.
Passed by the City Council on lu y- 2 3 # 2011
GLE O SON, MAYOR
ATTEST:
L"wec' —I\N�
Retca Garza, City Secr ary
APPROVED AS TO CONTENT:
/2
/(I ,
Quincy Whit , ssistant City Manager
APP O EDA TO FORM:
Chad Weaver, Assistant City Attorney
vw:ccdocs RES.Taylor Chemical LTD DBA Servico Chemical
7.9.2013
LEDA and MLI Projects
Presented to City Council
July 2013
Taylor Chemcial LTD DBA SERVCO Chemical, currently based in Hereford, Texas, is announcing the
relocation of their company to Lubbock. They are a family-owned, customer -focused, specialty chemical
manufacturer and distributor. For more than 25 years, SERVCO Chemical has focused on products
formulated to pre-set standards that guarantee product consistency and enhanced performance. Their
relocation to Lubbock will create 23 new jobs resulting in $1.48 million combined salaries and an initial
capital investment of $2 million.
Their facilities reflect SERVCO's commitment to ensure their customers have access to the highest quality
products at an affordable price. SERVCO uses responsible manufacturing processes to ensure the
production of consistent, quality products for their customers.
The Lubbock Economic Development Alliance Board of Directors has voted to intent Taylor Chemical
LTD DBA SERVCO Chemical up to $200,000 to offset utility construction costs to serve this project.
• This employment creates an additional 29 indirect (suppliers/support operations) and induced
jobs (retail/entertainment/hospitality) for a total of 52 jobs.
• Annual economic impacts of the business once fully operational on the Lubbock County include a
total earnings impact* of $2.9 million and a total value added impact (change in Lubbock County's
Gross Regional Product) of $7.1 million.
• The present value of net benefits** to the City of Lubbock over 10 years (fiscal) is $445,292.
• The present value of net benefits to all taxing districts over 10 years (fiscal) is $806,097.
*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