Res 096-99 8/17/1999c
RESOLUTION NO.,,,,,,,.,,__ ...
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, TEXAS; APPROVING AN ECONOMIC DEVELOPMENT
INCENTIVE AGREEMENT FOR AN IN -BOUND RESERVATION CALL
CENTER AS RECOMMENDED BY THE WICHITA FALLS
ECONOMIC DEVELOPMENT CORPORATION, AND APPROVING
AN AMENDMENT TO THE CORPORATION'S FY 1998 -99 BUDGET;
FINDING AND DETERMINING THAT THE MEETING AT WHICH
THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS
REQUIRED BY LAW.
WHEREAS, it is the desire of the City Council of the City of Wichita Falls to
promote the development of new business within its corporate boundaries; and,
WHEREAS, the execution of an economic development incentive agreement for
an in -bound reservation call center will provide new jobs and other benefits for the
citizens of Wichita Falls; and,
WHEREAS, it is the desire of the Wichita Falls Economic Development
Corporation to amend its 1998 -99 budget to provide funding for the economic
development incentive agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
SECTION 1. An economic development incentive agreement for an in -bound
reservation call center, as recommended by the Wichita Falls Economic Development
Corporation, is hereby approved.
SECTION 2. The amendment of the 1998 -99 budget of the Wichita Falls
Economic Development Corporation to provide for funding for the economic
development incentive agreement is approved.
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 17th day of August 1999.
MAYOR
ATTEST:
Memorandum of Understanding
�q.
This is a Memorandum of Understanding (MOU) between Budget Group, Inc. (BGI) and the
Wichita Falls Economic Development Corporation ( WFEDC) dated August 16, 1999. This
MOU is contingent upon presentation of the MOU by both WFEDC and BGI to the Wichita
Falls City Council for final approval and upon Council's final approval. This MOU is also
contingent upon BGI fully executing a lease for a call center in Wichita Falls containing terms
acceptable to BGI.
1. Upon BGI's announcement to locate an inbound reservation call center in Wichita Falls,
Texas and contingent upon the Wichita Falls' City Council approval, the WFEDC agrees to
the following terms for incentive payments for jobs created:
2. Upon the signing of a 10 -year lease (targeted for 9/1/99) for a minimum of 37,000 square feet
of rentable space in Wichita Falls, Texas, the WFEDC will pay BGI $300,000.
On 7/1/00, the WFEDC will pay BGI an additional $300,000.
On 7/31/01, the WFEDC will pay BGI a final payment according to the following formula:
(Number of FTEs* on 7/31/01 estimated to be 450 X $2,000 = $900,000 less previous
payments to date)
3. *FTE refers to full time equivalent which will be derived by dividing the total payroll hours
by 80 using the 2 -week pay period immediately prior to 7/1/01. In addition to the reservation
agent position, the resident management and support personnel will be included in the FTE
count.
4. The maximum cash paid to BGI would be $1,000,000. This money can be used to pay for
any expenses BGI incurs while establishing a call center in Wichita Falls.
5. The WFEDC agrees to ,nit offer cash incentives to any new call center that will pay less than
150% of BGI's reservation agent average wages through the year 2002 providing BGI's FTE
count in July of 2001 is equal to or greater than 450. During July of 2002, six months before
the moratorium on paying cash incentives is to end, the WFEDC and BGI will discuss
extending or curtailing the moratorium based on BGI's ability to attract and retain employees
at an affordable wage rate.
6. In return for the WFEDC's offer outlined above, BGI agrees to the following conditions.
BGI understands that an FTE count of less than 300 on 7/31/01 requires a payment to the
WFEDC equating to $2,000 X (the number of FTEs less than 300).
7. BGI is obligated to paying their reservation agents on average $8.00 per hour or greater (base
wage plus incentive) during the period of October 2000 through June 2001. This excludes
RECEIVED IN
CITY %CLERK'S OFFICE
Date r
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premium pay for hours worked in excess of 40 hours per week. Should BGI fail to meet this
wage obligation, BGI agrees to a reduction in total cash incentives of 20 %.
S. In the event that BGFs or its successor's "FTE count" using the formula outlined above falls
below 225 in August of 2001, BGI agrees to refund the WFEDC 50% of the cash incentives
paid to date. If the "FTE count" using the formula outlined above falls below 225 in July of
2002, BGI agrees to refund the WFEDC 25% of the cash incentives paid to date. However, in
no event should the total incentives paid be less than $2,000 per FTE. No penalty exists
beyond July of 2002 should BGI fail to sustain an FTE count equal to or greater than 225.
9. In the event BGI selects a property that is not currently located in an Enterprise Zone, the
City Council will designate the property an Industrial Park and file an application with the
Texas Department of Economic Development (TDED) to amend the Enterprise Zone
boundaries to include the property. Additionally, the WFEDC and BGI will submit an
application to the TDED asking for designation as an Enterprise Zone Project. Designation
as an Enterprise Zone Project is contingent on TDED approval.
Wichita Falls Economic
Development Corporation
B-'
Gar ore
President
Attest:
By: /1�,—
Ron Bullock
Secretary
Respectfully submitted,
Budget Group, Inc.
By:
Mary Murco
VP, Worldwide Reservations
Attest:
VP, Reservation u port Services