Res 041-2022 WFEDC Delta T Thermal Solutions $435,000 03/15/2022 Resolution No. 41-2022
Resolution approving the programs and expenditures of the Wichita
Falls Economic Development Corporation (WFEDC) and amending
the budget to include up to $435,000 cash for jobs expenditure to
Delta T Thermal Solutions as part of the company's acquisition of
the former Tranter facility in Wichita Falls
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 February 22, 2022, 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:
Delta T Thermal Solutions Project:
• A total of up to $435,000 cash for jobs expenditure part of the
company's acquisition of the former Tranter facility in Wichita Falls.
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 15th day of March, 2022.
';tp/L,
MAYOR
ATTEST:
ivlaA„A&J/AAA,
City Clerk
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
PROJECT SUMMARY
February 17,2022
ITEM/SUBJECT: Delta T Thermal Solutions project
INITIATED BY: Henry Florsheim
ATTACHED: Presentation
COMMENTARY: Tranter is in the process of shuttering its Wichita Falls plant. This will
mean the loss of 100-115 manufacturing and office jobs along with the $2 million or so the
company spends annually with other local firms.
A group of local investors and manufacturing professionals has formed a company called Delta T
Thermal Solutions LLC,and is negotiating to purchase the building and several existing Tranter
project lines to keep them running. The investors will make an initial investment of around$2.4
million,and will create nearly 60 jobs with an annual payroll of$3.1 million. Ownership is
asking for a cash-for-jobs program to support their efforts. This new company will spend well
over$1 million annually with local firms and will pay upwards of$200,000 in taxes to local
taxing authorities each year.
RECOMMENDATION:
I recommend the EDC agree to a cash-for-jobs incentive of$7,500 per job up to 58 new hires,
for a maximum commitment of$435,000.
SAMPLE MOTION: To provide a cash-for-jobs incentive to Delta T Thermal Solutions for
$7,500 per job up to 58 new jobs for a maximum commitment of$435,000.
Respectfully submitted,
Henry Florsheim
Wichita Falls Chamber of Commerce
10
DELTA T
Thermal Solutions LLC
PLATECOIL® ECONOCOIL® MAXCHANGERr
A
4, SHARP IRON
G R 0 U P
Company
11
Project: New Beginnings
Acquisition of identified Tranter Inc. Assets
Wichita Falls Economic Development Corporation
February 17, 2022
Delta T Thermal Solutions &Sharp Iron Group
12
Project Background Information
• Tranter Inc.established ❑perations in Wichita Falls, TX in the mid 1960's
• Wholly owned subsidiary of Alfa Laval AB, a Swedish multinational company
• Tranter Inc. manufactures Industrial Heat Exchangers for world-wide applications
• ❑il & Gas Refining, Marine, HVAC, Ethanol, Food Processing, Heat Recovery
• May 2021, announced the closing of the Wichita Falls, TX facility
• Relocate office and manufacturing operations to the greater Houston area
• Loss of approximately 115 manufacturing and office jobs
• Impact other local business an estimated $1.75M- $2.25M
• Direct Material Suppliers; Kalco, Construction Bolt, Sharp Iron
• MRD Suppliers; WebFire, Texoma Freight, AirGas
13
Project: New Beginnings
• Delta TThermal Solutions LLC was formed in 2021, under the umbrella of Sharp
Iron Group, LLC, which will serve as the Managing Partner for the new company
• Delta TThermal Solutions LLC will acquire three product families from Tranter
• PLATECOILC
• ECONOCOIL®
• MAXCHANGER`
• Delta TThermal Solutions LLC will acquire the Tranter facility on Old Burk Highway
• Delta TThermal Solutions LLC will create approximately 60 direct manufacturing
and manufacturing related jobs for the local economy
14
Project: New Beginnings
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Project: New Beginnings
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Project: New Beginnings
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17
Delta T Thermal Solutions
`,s cott P o e n itz sch
President Former Tra nt er President of the Americas
IMIT
Manufacturing Quality Design
Engneenng Accounting1111 Human
Assurance Resources
(Shared Services—SIG)
Estimated Employment Levels Over Three Years
• Office—19 Members
• Manufacturing-39 Members
Estimated Annual Payroll = $3.1MM ..
18
Delta T Thermal Solutions
Local Economic Impact (estimated)
Annual Payroll: —$3,100,000 (581.13,6.0
Annual Local 626: —$1,250,000 (20+rocnOohs)
Annual Taxes:
City of WF —$50,000
Wichita County "$50,000
WFISD "$80,000
19
Delta T Thermal Solutions
Investment Requirements:
Facility & Real Estate - $1,230,000
Product Assets - $250,000
Working Capital - $1,000,000 (est.)
$2,480,000
(provided by Sharp Iron Group and Others)
20
New Beginnings Project Request
Cash For Jobs
• Create 58 new jobs over three years
• Cash per job- $7,500
• Program Request—up to$435,000*
* Performance Agreement t❑ be negotiated
21
A
DELTA T
Thermal Solutions LLC
Questions?
Thank You
22