Res 149-2004 10/19/2004RESOLUTION NO 149 -2004
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, TEXAS, AUTHORIZING AN ECONOMIC DEVELOPMENT
INCENTIVE AGREEMENT WITH PPG INDUSTRIES AND AMENDING
THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATIONS
FISCAL YEAR 2004 -2005 BUDGET', 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 (WFEDC)
met on October 12, 2004 to consider an Economic Development Incentive Agreement
with PPS Industries, and
WHEREAS, The WFEDC has approved the Incentive Agreement and
recommended a corresponding budget amendment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT.
SECTION 1 . The Economic Development Incentive Agreement with PPG
Industries is hereby approved.
SECTION 2 The Wichita Falls Economic Development Corporation's Fiscal Year
2004 -2005 Budget is hereby amended in the amount of $2,050000 for this project.
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 19°' day. of October, 2004.
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Memorandum of Understanding
October 12,2004
This is a Memorandum of Understanding (MOU) between PPG Industries (PPG), the
Wichita Falls Economic Development Corporation (WFEDC), and the Burkburnetl
Development Corporation (BDC).
I. The WFI'D( and the DEC recommend to their respective City Councils approval of the use
of their economic development sales tax proceeds as desenbard below.
2. By definition the Coster Project is an expansion of PPG's existing manufacturing operations
In Wichita County, Texas that will result in up to $40,000.000 in new capital investment.
The new capital investment will include both the seeable expansion of PPG's real property,
as well as the addition of new porsoml property needed to conduct manufacturing operations
currently not being performed at PPG's manufacturing bell by in Wichita Count), Texas.
J. By definition, a "qualifying job" is a new fall -flume job filled by an individual employed by
PPC, that has been created as a result of the Coster Project as PPG's Wichita County, 'I was
location, Is benefit eligible, and has been in place fur a minimum of 6 months.
4. The use of economic development sides pays proceeds will be contingent on the following.
A. PPG's presentation to the WFEDC and the BDC describing their intent to expand
operations in Wichiw County as a result of the Coster Project that will in turn usual In up
to 9410,OOg000 in new capital investment and that will create m excess of 50 new jobsat
?PC a location in Wichita Counts. Tgrxas.
B. the WFEDC's and BDC 'a recommendation and their respective City Councils' approval
of economic development sales tax proceeds being used to encourage the location of the
?PC "texas Coster" project at their operations in Wichita Cluny -, Texas versus other
locations,
0 The WFEDC and BDC agree to pay PPG a development grant equal to 5% of the capital
vestment associated with the Coster Project 'Ihe WFEDC agrees to pay 90 n of the
grant and the BDC agrees to pay a0% of the grant. The total amount of the grant by the
WFEDC and the BDC shall not exceed $2,000,000. Tlus payment will be made in we
installments. The first payment of one -third of the development grant will be made after
a presznwlon by PPG to the WFEDC end DEC Is given, evidencing the anticipated value
of tile new capital investment and that concoction is tmderwns. The second payment of
two-thirds of the development grant will occur or the same time the Cash for labs is
reconciled. 'Due farmers for final reconciliation ofthe development gram will be:
(Actual real enGpersenal property interlinear X ill %) - (Crenjo =Feral Amount
In the event the "final amount" is a negative number, PPG will owe the WFEDC
907 and the DEC 10% of this amount in a refund.
D. At a &it to be determined by PPG prior to May I, 2009, a presentation will be made to
the WFEDC and the ADC evidencing the creation of qualifying jobs. Upon completion
of this presentation, a payment will he made to PPG using the schedule detailed below for
cry qualifying job created.
Hearly Wage Range
Cash per Job
$9.00 to 1 L99
$2.000 W
$12.00to 14.99
$3,000.00
$IS00 and ever
$5,000.00
Additiomlly. A one -time payment premium of 5% or annual salary will be paid at the
same time the cash for jobs is mcoociled lot each qualifying jab that pays a base salary of
at least $50,000 and not more than S1 00,001) before benefits. The WPEDC will pay 9(Mu
of Ills incentive and the BDC will pay 10 %ofthis incentive.
In the event that the PPG Crater Proper ceases operations in W Iehiu, County. Texas prior
to five years from the date of receipt of any incentives payment, PPG shell within sixty
(60) days of the date of cessation of operations repay the WPEDC and the BDC the fill
moment of all incentives received by PPC_
'I his MOl1 and PPG's cnmminnent to locate the Ceater Project at their Wishim County,
'Texas location is contingent upon PPG Board of Directors approval.
Wiehim Falls Economic PPG Industries
Development Corporation
By:_ B
Gory Shores susan Plies
Chairman Plant Mareager
Blrkburnen Development Corporation
parody Fudge
Chairman