Res 079-2022 4A Land O'Lakes Performance Agreement 06/21/2022 Resolution No. 79-2022
Resolution approving the programs and expenditures of the Wichita
Falls Economic Development Corporation (WFEDC) and amending
the budget to include an up to $1,248,000 performance incentive to
Winfield Solutions, L.L.0 and Land O'Lakes, Inc., as part of the
company's planned new 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 June 6, 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:
Land O'Lakes Project:
A total of up to $1,248,000 to facilitate a performance incentive to Winfield
Solutions, L.L.0 and Land O'Lakes, Inc., as part of the company's planned
new 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 21st day of June, 2022.
MAYOR
ATTEST:
City Clerk
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
PROJECT SUMMARY
JUNE 6,2022
SUBJECT: Winfield Solutions/Land 0'Lakes Expansion and Retention Project
INITIATED BY: Henry Florsheim&Taylor Davis
Overview:
Land 0'Lakes Inc is one of the largest member owned agricultural cooperatives in the United States.
Land 0'Lakes owns a number of subsidiaries including well-known names like Purina Mills and Nutra
Blend.One subsidiary is Wichita Falls based Winfield Solutions,LLC which operates in the animal feed
and farm supply sector.
The Project:
Winfield Solutions has operations in Texas and Oklahoma including one at 1911 Sheppard Access Road.
The Company performed a competitive site search for a location in which to invest for long-term growth.
Should they choose Wichita Falls,not only will we retain the existing employee base of 8 people with
payroll equaling$466,000 annually but add an additional 8 people with new payroll equaling$436,700
annually for a total annual payroll of$902,700.
The company would like to break ground this summer on a new 100,000 square foot building in lot 5 of
the Wichita Falls Business Park,with an anticipated opening during the 4th Quarter of 2023.There are
also plans to add an additional 30-35,000 SF at a later date.Total investment in this initial new building is
expected at$14.2 Million.
Three companies are involved in this project.The initial land and development of the facility will be
owned and managed by Opus Development Company,L.L.C.,a third-party developer not affiliated with
Land 0'Lakes.Upon completion of the facility,Land O'Lakes,Inc.would purchase it from Opus
Development Company,L.L.C.Winfield Solutions,L.L.0 would own the equipment and Land O'Lakes,
Inc.would be the employer.
Local Incentive Proposal:
➢ Forgivable Loan—$1,000,000 for a term of 5 years at a rate of 20%annual forgiveness as long as
the Company meets or exceeds their performance metrics.
➢ Land Donation—Donation of Lot 5 in the Wichita Falls Business Park equal to 14.9 acres.
o Estimated Value-$1,054,696.50($1.625/SF)
➢ Cash for Jobs—$5,000 per job scheduled for 16 jobs(8 retained/8 new)after employees are in
place for a minimum of six(6)months.
o Maximum Value-$80,000
➢ Employee Relocation Assistance—The company will receive an incentive of$4,000-8,000 if
employee(s)relocate to Wichita County and remain a resident for a minimum of six(6)months
after receipt of acceptable employment and residency documentation.
o Estimated Value-$48,000,Maximum Value-$64,000
➢ Reimbursement for Fees and Permits—Reimbursement of up to$50,000 for any fees and permits
from the City of Wichita Falls,Wichita County and/or the State of Texas.
➢ Skills Development Fund—The WFEDC will provide funding not to exceed$1,200 per employee
for workforce training if grant funding is not provided by Texas Workforce Commission.
o Estimated Value-$54,000
Estimated Value of Local Incentives-$2,286,696.50(maximum cash outlay of$1,248,000)
Recommendation:
Chamber staff recommends to the WFEDC that the proposed incentives to Land O'Lakes,inc.,Opus
Development Company,L.L.C.and Winfield Solutions,L.L.C.be approved and sent to the City Council.
Proposed Motion Language:
Move to donate lot 5(approximately14.9 acres)in the Wichita Falls Business Park to Opus Development
Company,L.L.C.and Land O'Lakes,Inc.,in exchange for the development of a new facility which is at
least 100,000 sq.ft.,and for retention of 8 jobs and the creation of an additional 8 jobs for a minimum of
12 months. Should Company fail to hire and retain the 16 jobs as agreed,Company will pay a
proportionate amount of the total land value of$1,054,696.50 back to the WFEDC based on the total
actual number of jobs in compliance.
Move to provide incentives of a five year forgivable loan not to exceed$1,000,000,cash for jobs not to
exceed$80,000,employee relocation assistance not to exceed$64,000,reimbursement for fees and
permits not to exceed$50,000,and Skills Development Fund not to exceed$54,000 for a total maximum
obligation of$1,248,000 to Winfield Solutions,L.L.0 and Land O'Lakes,Inc.,as presented.The loan
funds will not be tendered to Company until the City issues a certificate of occupancy for a new 100,000
sq.ft,or larger,structure built on lot 5 of the WFEDC Business Park.