Res 062-2021 WFEDC Agreement with Clayton Homes 06/01/2021 Resolution No. 62-2021
Resolution approving the programs and expenditures of the Wichita
Falls Economic Development Corporation (WFEDC) and amending
the budget to include up to $1,734,700 for CMH Manufacturing, dba
Clayton Homes, related to their purchase and operation out of the
existing facility at 2400 Burkburnett Road
WHEREAS, Texas Local Gov't. Code §501.073(a) provides "The corporation's
authorizing unit will approve all programs and expenditures of a corporation and annually
review any financial statements of the corporation"; and,
WHEREAS, on May 20, 2021 , the WFEDC approved the Project listed below and
as stated in its agenda.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
1 . The Wichita Falls Economic Development Corporation's approval and funding
of the following programs and expenditures as described below and in said corporation's
agenda, are approved:
Clayton Homes Project:
• A total of up to $1 ,734,700 to be used for the location of the company
to the former ATCO Facility at 2400 Burkburnett Road and the
creation of up to 181 new primary jobs.
2. The current fiscal year budget of the WFEDC is amended to provide for the
aforementioned expenditures and changes thereto.
PASSED AND APPROVED this the 1st day of June, 2021 .
MAYOR
ATTEST:
e
City Clerk
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
MAY 20,2021
ITEM/SUBJECT: Clayton Homes Incentive Proposal
INITIATED BY: Travis Haggard
ATTACHED: Signed Incentive Letter
PROJECT SUMMARY:
Clayton Homes intends to purchase the former ATCO building and open a manufacturing facility
in Wichita Falls. The company will invest around $15 million and hire approximately 181
workers in the first 36 months of operation. The following incentives have been proposed.
- Cash for Jobs: $7,500 per job for a total not to exceed$1,357,500
- Training Grant: Up to$1,200 per employee if state funding does not materialize,not to
exceed$217,200
- Employee Relocation Assistance: $8,000 per employee for a maximum of 20 employees,
not to exceed $160,000
Other incentives such as tax abatements are included in our proposal,but they will not be funded
by the WFEDC_ The maximum funding required from the WFEDC for this project is
$1,734,700.
RECOMMENDATION: This is a strong project with an outstanding company. We
enthusiastically recommend approval of this proposal to allow Clayton Homes to invest heavily
in Wichita Falls.
SAMPLE MOTION: To amend the WFEDC budget to include funding not to exceed
$1,734,700 as presented in the Project Summary and Incentive Letter to assist Clayton Homes in
developing a manufacturing facility in Wichita Falls.
Respectfully submitted,
Travis Haggard
Vice President of Business Retention&Expansion
Wichita Falls Chamber of Commerce
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CHAMBER OF COMMERCE
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April 23, 2021
VIA E-MAIL
CMH Manufacturing, Inc.
CEO Jim Stariha
RE: Wichita Falls project
Dear Mr. Stariha:
We look forward to working with CMH Manufacturing, Inc. hereinafter referred to as"Company",
regarding the manufacturing facility located at: 2400 Burkburnett Road, Wichita Falls, TX.
Listed below is a summary of incentives your company may be eligible for:
a. Cash for Jobs: This incentive is based on the total number of primary jobs
created in the first 36 months, starting on the first day of production in the Wichita
Falls plant. Each full-time job created by the company will result in a $7,500 cash
benefit paid to the Company after said employee is gainfully employed. Based on
the estimated 181 jobs created by the Company, the total value of the cash for
jobs incentive would be$1,357,500.
b. Skills Development Fund Training Grant: An application to the Texas
Workforce Commission for up to $1,200 per manufacturing employee can be
made by Vernon College for a Skills Development Fund (SDF). If an application is
not made by Vernon College, or if the grant is not funded by the Texas Workforce
Commission or another government entity in an amount of at least$217,200 then
the WFEDC will provide up to that amount for training under the Skills
Development Grant, based upon up to $1,200 per employee.
c. Property Tax Abatement City of Wichita Fails and Wichita County: Both the
City and County will be asked to abate a percentage of the tax increment for a
period of 10 years, starting at 100%the first year, 90%the second year and so
forth. The total property tax savings, based on building improvements(no
equipment abatement calculated at this time), would be a total of$1,261,586.
d. Sales Tax Exemption on Manufacturing Equipment: Texas sales and use tax
(8.25%) exempts tangible personal property that makes a chemical or physical
change in the product being manufactured or is necessary and essential in the
manufacturing process. Other states under consideration for this project may
charge sales and use tax for building materials and manufacturing equipment.
900 8th Street,Suite 100 Wichita Falls,TX 76301
T:(940)723-27411 wichitafallschamber.com
idtc. 44a
CHAMBER OF COMMERCE
Surld/nf i3dter Grigeftwely.
e. Triple Freeport Exemption: Company will be eligible for a 100% exemption
from Ad Valorem taxes(City, County, and School) on inventory that leaves the
State of Texas within 175 days of arrival. This incentive requires no prior
approval for the Wichita Falls location and is in effect as long as Company has
qualifying inventory.
f. Employee Relocation Assistance: Company will be eligible for up to a
maximum of$8,000.00 per employee incentive, up to a total of 20 employees if
the Company needs to recruit employees from outside of the Wichita County
MSA. Company will receive incentive if employee(s) relocate to Wichita County
and remain a resident of Wichita County for a minimum of six months. Incentive
will be paid to Company after the sixth consecutive month of employment; and
upon acceptable documentation of employment and residency. The total
maximum of this incentive would be$160,000.
Estimated value of all incentives (calculations based on incentives a. b. c. and f.)
calculated at 181 new jobs created would be$2,996,286.
Final approval of incentives is contingent upon the following governmental organizations: The
City of Wichita Falls; Wichita Falls Economic Development Corporation; Wichita County; Texas
Workforce Commission and/or with the Office of the Governor Economic Development&
Tourism Department.
We look forward to helping you make this exciting project a success in Wichita Falls.
900 Sth Street,Suite 100 Wichita Falls,TX 76301
T:(940)723-2741 1 wichitafallschamber.com
li)c4i4 a74
CHAMBER OF COMMERCE
Seer-kw,a Setter Gotmroturrrty.
Respectfully,
Stephen Santellana ,f)
Mayor Stephen Santellana Woodrow W. "Woody"Gossom,
City of Wichita Falls, TX County Judge, Wichita County
Leo, President Lacey Morgan,
President of the Wichita Falls EDC. Chairman of the Board
Wichita Falls Chamber of
Commerce and Industry
900 IIth Street,Suite 100 Wichita Falls,TX 76301
T:(940)723-2741 I wichitafallschamber.com