HomeMy WebLinkAboutResolution - 2020-R0201 - LEDA Expenditure, General Advanced Foods - 06/23/2020Resolution No. 2020-R0201
Item No. 7.14
June 23,2020
RESOLUTION
WHEREAS, pursuant to Section 501.073 oC the Texas Local Government Code the City of
Lubbock. as the corporation's authori/.ing unit, has the authority to approve all programs and
expenditures otThe Lubbock Economic Development Alliance (LF.DA); 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 LI-DA, as set ibrih in lixhibit "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 General Advanced Foods, is hereby approved pursuant to Section 501.073 of the
Texas Loeal Government Code.
Fussed by (he City Couneil on June 23. 2020
DANIEL M. FOFE, MAYOR
ATTEST:
cca Garza, City Secnitary
APPROVED AS TO CONTENT:
Brianna Gerardi. BusinessM^eyg/opmenl Director
APPROVED AS TO FORM:
Kelli Leisure, Assistant City Attorney
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Resolution No. 2020-RO201 LEDA Project
Presented to City Council
June 23, 2020
Project Frontier
General Advanced Foods (GAF) is a new company focused on organic corn milling. GAF recently purchased
the former Molinos Anahuac (MACSA) facility at the Lubbock Rail Port. General Advanced Foods has
increased their anticipated investment in real and HE in the next two years to $87.1 MM. The company
will mill corn and has requested additional acres for land application near the Lubbock Rail Port.
The Lubbock Economic Development Alliance Board of Directors has voted to incent General Advanced
Foods with approximately 41 acres of land in the Lubbock Rail Port, estimated value of $2,589,642, 320
acres of land north of the Lubbock Rail Port valued at $550,000 and an easement and capital investment
grant for the design and build of wastewater pipeline running along Ash and Utah streets to the 320 acre
site, not to exceed $250,000. GAF will be investing $87,100,000 in capital to renovate their facility at 301
E. Insurance Street along with building a new facility in the Lubbock Rail Port, and the creation of 125 new
full-time jobs with an average wage of $31,200. GAF is also expected to grant approximately 6.04 acres of
various parcels of land surrounding the Lubbock Rail Port to LEDA as well as remediate two wastewater
retention ponds currently located on their existing site.
This employment creates an additional 122 indirect (suppliers/support operations) and induced
jobs (retail/entertainment/hospitality) for a total of 247 jobs.
The present value of net benefits" to the City of Lubbock over 10 years (fiscal) is $10,328,605.
The present value of net benefits to all taxing districts over 10 years (fiscal) is $14,816,714.
'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 Data Source. 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.
RE 20-20
RESOLUTION APPROVING PERFORMANCE AGREEMENT FOR
GENERAL ADVANCED FOODS
PROJECT FRONTIER
THE STATE OF TEXAS
COUNTY OF LUBBOCK
At a regular meeting of the Board of Directors of LUBBOCK ECONOMIC
DEVELOPMENT ALLIANCE, INC., a Texas nonprofit corporation (LEDA), on Wednesday,
May 27, 2020, held in conformity with the bylaws, after due notice as therein provided, a quorum
being present and acting, the following resolution was unanimously adopted:
WHEREAS, LEDA presented to members of the Board the proposal of a possible
Economic Development Grant and Contract to General Advanced Foods. The terms and
conditions of such Economic Development Grant and Contract, other than the normal terms and
conditions applicable to all such Economic Development Grant and Contracts by the Corporation,
are described generally as follows, to wit:
Grant General Advanced Foods (GAF), with approximately 41 acres of land in the Lubbock
Rail Port, estimated value of $2,589,642, and 320 acres of land north of the Lubbock Rail Port
valued at $550,000 and an easement and capital investment grant for the design and build of a
wastewater pipeline running along Ash and Utah streets to the 320 acre site, not to exceed
$250,000. GAF will be investing $87,100,000 in capital to renovate their facility at 301 E.
Insurance Street along with building a new facility in the Lubbock Rail Port, and the creation of
125 new full-time jobs with an average wage of $31,200. GAF is also expected to grant
approximately 6.04 acres of various parcels of land surrounding the Lubbock Rail Port to LEDA
as well as remediating two wastewater retention ponds currently located on their existing site.
WHEREAS, The Board of Directors of LEDA finds that an Economic Development Grant
and Contract offering the land in the Lubbock Rail Port comply with the qualifications and
purposes of the Corporation for the granting of such Economic Development Grants and Contracts.
Upon Motion by Director, Mr. Chris Carpenter, and Seconded by director, Mr. Brett Cate,
it was approved,
IT WAS RESOLVED that LEDA offer and, if accepted by Recipient, enter into an
Economic Grant and Contract with General Advanced Foods (GAF). This Economic
Development Grant and Contract will be on the normal terms and conditions of such Economic
Development Grant and Contract offered by LEDA to existing businesses and business prospects
and authorize the CEO to enter into and negotiate Performance Agreement.
& CEO
SECRETARY