Res 040-2007 3/20/2007 � — e
RESOLUTION NO. C7 !
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, TEXAS, APPROVING ECONOMIC DEVELOPMENT INCENTIVE
AGREEMENTS WITH MACHINING SOLUTIONS AND AFFILIATED
ENERGY PRODUCTS AND APPROVING AMENDMENTS TO THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
BUDGET IN THE AMOUNT OF $470,880; FINDING AND DETERMINING
THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED
WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, The Wichita Falls Economic Development Corporation met on
March 8 to consider economic development incentive agreements with Machining
Solutions and Affiliated Energy Products; and
WHEREAS, Both agreements were approved; and
WHEREAS, An amendment to the fiscal year 2006-2007 Budget of the Wichita
Falls Economic Development Corporation in the amount of $470,880 is required.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
SECTION 1. The economic development incentive agreement with Machining
Solutions is hereby approved with the associated budget amendment of $409,500.
SECTION 2. The economic development incentive agreement with Affiliated
Energy Products is hereby approved with the associated budget amendment of
$61,380.
SECTION 3. It is hereby officially found and determined that the meeting at
which this resolution was passed was open to the public as required by law.
PASSED AND APPROVED this the day of 20 day of March, 2007.
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MAYOR
ATTEST:
,
ity Clerk
Memorandum of Understanding
March 8, 2007
This is a Memorandum of Understanding (MOU) between Machining Solutions (Company) and
the Wichita Falls Economic Development Corporation (WFEDC).
1. Definitions
Positions — is defined as a new, full-time, benefit-eligible job, and whose wages are paid by
the entity receiving benefits from this MOU.
Base number of positions - is defined as the number of Positions in place at the Company
as of the date of this MOU, and are verified by the Company by providing appropriate
payroll documents to the WFEDC.
Net new positions - is defined as Positions in excess of the base number of Positions
resulting from the Company's expansion and that have been in place for a minimum of 18
months and are verified by the Company by providing appropriate payroll documents to the
WFEDC.
2. The use of Section 4(a) Sales Tax proceeds will be contingent on the WFEDC's
recommendation and City Council's approval of the following terms:
A. Company's presentation to the WFEDC describing its intent to expand in Wichita
Falls. Company's expansion will result in the creation of up to fifty-two (52) net new
positions.
B. The WFEDC will pay the company for the number of net new positions once they
have been in place for a minimum of 18 months.
C. The company's first request for payment of net new positions may not be made sooner
than 18 months after the date of this MOU. The company my make subsequent
requests for payments as appropriate with the final reconciliation of net new positions
being made no more that 42 months from the date of this MOU.
Net Hourly Wages Payment per Net New Position
$17.01 and up $6,000
An additional 5% of salary will be paid for any position earning in excess of $50,000
per year, not to exceed $5,000 per position.
C. In the event Company ceases operations in Wichita County, Texas, within twelve (12)
months from the date of receipt of any incentives payment, Company shall, within
sixty (60) days of the date of cessation of operations, repay the WFEDC the full
amount of incentives received.
Wichita Falls Economic
Development Corporation: Machining Solutions
By: By:
Gary Shores Gary Norriss
Chairman CEO
Memorandum of Understanding
March 8, 2007
This is a Memorandum of Understanding (MOU) between Affiliated Energy Products (AEP or
Company) and the Wichita Falls Economic Development Corporation (WFEDC).
3. Definitions
Positions — is defined as a new, full-time, benefit-eligible job, and whose wages are paid by
the entity receiving benefits from this MOU.
Verified Positions - is defined as a new positions used in the calculation of a"cash for jobs"
benefit and are verified by the Company providing appropriate payroll documents.
4. The use of Section 4(a) Sales Tax proceeds will be contingent on the WFEDC's
recommendation and City Council's approval of the following terms:
D. Company's presentation to the WFEDC describing its intent to start a new company,
Affiliated Energy Products (AEP), and build a 5,000 square foot manufacturing
facility on Company's property in Wichita Falls. AEP will result in the creation of up
to twelve (12) net new positions.
E. No sooner than six (6) months from the date of this MOU and for a period of no more
than twenty-four (24) months Company may petition the WFEDC by making a
presentation disclosing the number of net new verified positions that have been
created and that have been filled for a minimum of six months will receive payment
for these position based upon the following schedule:
Net Hourly Wages Payment per Net New Position
$ 9.00 to $10.00 $2,000
$10.01 to $11.00 $3,000
$11.01 to $14.00 $4,000
$14.01 to $17.00 $5,000
$17.01 and up $6,000
An additional 5% will be paid for any employee earning in excess of $50,000 per year
not to exceed $5,000 per employee.
C. Kalco Machine and Manufacturing currently has 27 full-time positions and it is
agreed and understood none of these positions will be transferred to the
Company and counted as net new positions as stated in paragraph B. above.
D. In the event AEP ceases operations in Wichita County, Texas, prior to twelve (12)
months from the date of receipt of any incentives payment, AEP shall, within sixty
(60) days of the date of cessation of operations, repay the WFEDC the full amount
of incentives paid.
Wichita Falls Economic
Development Corporation Affiliated Energy Products
By: By:
Gary Shores David Kulbeth
Chairman President