Res 173-2005 12/20/2005RESOLUTION NO. 173°� X)S -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, TEXAS, AUTHORIZING AN AMENDMENT TO THE WICHITA
FALLS ECONOMIC DEVELOPMENT CORPORATION 2005 -2006
BUDGET IN THE AMOUNT OF $1,900,000 FOR AN ECONOMIC
DEVELOPMENT INCENTIVE AGREEMENT WITH ATCO
STRUCTURES, INC. AND PURCHASE OF A BUILDING AT 2400
BURKBURNETT ROAD; FINDING AND DETERMINING THAT THE
MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN
TO THE PUBLIC AS REQUIRED BY LAW.
WHEREAS, the Wichita Falls Economic Development Corporation met to
consider an Economic Development Incentive package for ATCO Structures, Inc.; and,
WHEREAS, the Economic Development Incentive package includes a $500,000
cash for jobs incentive, and the purchase of a building at 2400 Burkburnett Road to be
leased back to ATCO Structures, Inc.; and,
WHEREAS, an Amendment to the Wichita Falls Economic Development
Corporation's 2005 -2006 Budget in the amount of $1,900,000 is required to fund the
Economic Development package.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
SECTION 1 . An Amendment to the Wichita Falls Economic Development
Corporation's 2005 -2006 Budget in the amount of $1,900,00() is hereby approved.
SECTION 2 . 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 20 day of December, 2005.
L I t ' 1
ATTEST:
. /. _ _
Memorandum of Understanding
16 December 2005
This is a Memorandum of Understanding (MOU) between ATCO Structures (USA) Inc.
(Company) and the Wichita Falls Economic Development Corporation ( WFEDC).
I. The WFEDC recommends that the City Council approve the use of Section 4(a)
Sales Tax proceeds as described below.
a. Expend up to $1.4 million to acquire and improve the former Fleetwood
facility at 2400 Burkburnett Road contingent upon leasing said property back
to Company on terms to be determined by Gary Shores, President of the
WFEDC and Bill Sullivan, City Attorney of the City of Wichita Falls, on behalf
of the WFEDC Board of Directors and which are satisfactory to the Company.
b. Provide a Cash for Jobs incentive not to exceed $500,000 based on the
following:
Jobs
Incentive
'Total
Annual Pav
Created
PerJob
In centive
$20,000 - $30,000
4
$3,000.00
$12,000.00
$30,000 - $40,000
1
$4,000.00
$4,000.00
$40,000 - $50,000
3
$5,000.00
$15,000.00
$50,000 - $60,000
1
$5,500.00
$5,500.00
$60,000 - $70,000
1
$6,000.00
$6,000.00
Subtotal
10
$42,500.00
Jobs
Incentive
Total
Hourly Pay
Created
ep rJob
Inc entive
$ 8.00 - $ 9.00
6
$2,250.00
$13,500.00
$ 9.00 - $10.00
60
$3,250.00
$195,000.00
$10.00 - $11.00
40
$3,500.00
$140,000.00
$13.00 - $14.00
16
$4,000.00
$64,000.00
$19.00 - $20.00
10
$4,500.00
$46,000.00
Subtotal
132
$457,500.00
TOTAL
142
$500,000.00
2. Definition
New Positions - new, permanent, full -time, benefit eligible positions that have been
created as a result of Company's new operation in the City of Wichita Falls, and
positions that have been filled by one or more individuals for a minimum of 6
months.
3. Description of the Project
a. Company will manufacture modular structures for oil /gas industry housing,
schools, banks and other custom made structures to be shipped domestically
and internationally.
b. Company will invest in total approximately $800,000 in the facility in Wichita
Falls and invest $1 million in Raw and Work In Progress inventory.
c. Company will create a minimum of 100 new, permanent full -time positions
with the potential for up to 142 new, permanent full -time positions over a
period of two years from the date of an executed lease between WFEDC and
Company.
d. Company will provide all full -time positions a benefits package to include at a
minimum medical, dental and life insurance.
e. Payment will be made to Company after the Company has been in
continuous operation for a period of not less than six months and that each
position has been in existence for a period of not less than six months.
Company must petition the WFEDC in person for the above proceeds and
must provide any and all requested documentation to verify employment.
Company may petition the WFEDC on an as- needled basis through March 1,
2008.
4. Clawback Provision
a. In the event the Company ceases operations in Wichita Falls, Texas, for any
reason, Company will repay the WFEDC within sixty (60) days of the date of
cessation of operations any and all proceeds received by it from this Cash for
Jobs incentive based upon the following schedule:
Amount
Year
Repaid
1
100%
2
75%
3
50%
4
25%
5
0%
Wichita Falls Economic
Development Corporation
By:
Gary Shores
Chairman
ATCO Structures (USA) Inc.
0
Harry Kuklas
President
Date: Date: