Res 059-2002 5/21/2002RESOLUTION NO. SA-
RESOLUTION AUTHORIZING AN ECONOMIC DEVELOPMENT
INCENTIVE AGREEMENT WITH CINGULAR WIRELESS, LLC AS
RECOMMENDED BY THE WICHITA FALLS ECONOMIC
DEVELOPMENT CORPORATION AND APPROVING AN AMENDMENT
TO THE CORPORATION'S FY 2001 -2002 BUDGET; FINDING AND
DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION
WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, on May 13, 2002, the Wichita Falls Economic Development
Corporation ( WFEDC) met to consider a Memorandum of Understanding with Cingular
Wireless, LLC to create new jobs in Wichita Falls; and
WHEREAS, Cingular Wireless proposes to create a base of 75 new jobs in
addition to the baseline number of 715 jobs currently in place; and
WHEREAS, the WFEDC wishes to offset capital costs associated with the
aforementioned expansion by assisting with parking lot expansion; and
WHEREAS, the WFEDC wishes to encourage the creation of 300 to 800 new
jobs in connection with an effort to recruit a new 50,000 square foot call center by
offering $5,000 per job; and
WHEREAS, the WFEDC recommends approval of the attached Memorandum of
Understanding that will encumber $4,387,500 for this project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
SECTION 1. A Memorandum of Understanding outlining an economic
development incentive agreement for Cingular Wireless, as recommended by the
Wichita Falls Economic Development Corporation, is attached and hereby approved.
SECTION 2. The FY 2001 -2002 Budget of the WFEDC is hereby amended to
provide for funding in an amount not to exceed $4,387,500.
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 21St day of May 2002.
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ATTEST:
'' CIO
City Clerk
Memorandum of Understanding
2002
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This is a Memorandum of Understanding (MOU) between Cingular Wireless LLC and the Wichita
Falls Economic Development Corporation ( WFEDC).
The WFEDC recommends that the City Council approve the use of Section 4(a) Sales Tax
proceeds as described below.
2. By definition, anew full -time job is one that has been created as a result of expanding the
credit collection and/or activation operation in Wichita Falls, is benefit eligible, and has been
filled by an employee of Staffmark and/or Cingular Wireless Employee Services LLC, a
wholly owned subsidiary of Cingular Wireless, LLC for a minimum of 6 months.
3. The use of Section 4(a) Sales Tax proceeds will be contingent on the following:
A. Cingular Wireless LLC's presentation to the WFEDC describing their intent to create up to
75 new full -time jobs in addition to the number of baseline jobs in place the day of this
Understanding. These new jobs are to created no later than July 1, 2003.
B. The WFEDC's recommendation and City Council's approval of Section 4(a) sales tax
proceeds being used to encourage Cingular Wireless LLC to expand their operations in
Wichita Falls, Texas verses another location.
C. At a date to be determined by Cingular Wireless LLC, not to exceed 18 months from the
date of this Understanding, a presentation will be made to the WFEDC evidencing the
creation of new jobs as defined above. Upon this presentation, payment of $2,500 per new
full -time job created will be made to Cingular Wireless LLC.
D. If the above mentioned presentation evidences that at least 75 new jobs have been created,
WFEDC will pay Cingular Wireless LLC the lesser of $200,000 or its actual cost for
additional parking.
4. Additionally, in an effort to encourage Cingular Wireless LLC to build a minimum of 50,000
square feet of additional call - center space in Wichita Falls and create between 300 and up to
800 new jobs in addition to the base set above plus 75 jobs, the WFEDC will pay Cingular
Wireless LLC $5,000 per new job created. This offer is contingent upon the approval of the
Wichita Falls City Council. If a written commitment confirming that Wichita Falls is being
considered for a possible expansion is not received by 12/31/02, this offer will expire.
Wichita Falls Economic
4arCorporation
es
Chairman
Cin gular Wireless LLC
By: 14 ul
Michael Kay
h5H Vice President Taxes
cingular-
WIRELESS
May 13, 2002
Mr. Gary Shores
Chairman, 4A Board
Wichita Falls, TX
Dear Mr. Shores,
As of May 13, 2002 Cingular Wireless' base employment is 715.
Respectfully,
Kathy Schubert, Director
Cingular Wireless • 4300 Kell Blvd • Wichita Falls, TX 76309