Res 128-2005 9/20/2005RESOLUTION NO. I J1, J5-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, TEXAS, AMENDING THE 2004 -2005 BUDGET OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION TO
PROVIDE ADDITIONAL RECONCILIATION FOR AN ECONOMIC
DEVELOPMENT INCENTIVE AGREEMENT WITH SHARP IRON, INC.;
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)
entered into an Economic Development Incentive Agreement with Sharp Iron, Inc.,
dated March 12, 2004; and
WHEREAS, The Wichita Falls City Council did approve said agreement and
amended the WFEDC budget to provide funding for said agreement; and
WHEREAS, Sharp Iron did perform and complete the terms of said agreement,
and was paid; and
WHEREAS, Sharp Iron has provided additional job opportunities in the Wichita
Falls area, and has requested additional consideration for jobs created and or retained
in accordance with the Incentive Agreement dated March 12, 2004; and
WHEREAS, The WFEDC did meet on September 6, 2005 and has
recommended an additional payment of $70,000 for jobs created and /or retained by
Sharp Iron.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
SECTION 1 . The Wichita Falls Economic Development Corporation's 2004 -2005
Budget is hereby amended in the amount of $70,000 to provide additional reconciliation
for Sharp Iron.
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 20th day of September, 2005.
MAYOR
ATTEST:
ity Clerk
Memorandum of Understanding
March 12, 2004
This is a Memorandum of Understanding (MOU) between Sharp Iron, Inc. (SI) and the Wichita
Falls Economic Development Corporation (WFEDC).
1. The WFEDC recommends that the City Council approve the use of Section 4(a) Sales Tax
proceeds as described below.
2. Definitions
Base number of jobs - is defined as the number of jobs in place at SI's Wichita Falls' facility as of
the day of this Understanding.
Retained Job - is defined as full -time, benefit eligible, that has been retained as the result of the
acquisition of Custom Metal Services, Inc. assets and the creation of a new corporation (SI) as of
the day of the Understanding, and that has been in place by SI for a minimum of 6 months.
New Job - is defined as a new full -time job in addition to the base number of jobs that has been
created as a result of the formation of the new corporation (SI), is benefit eligible, and has been
filled by a SI employee for a minimum of 6 months.
3. The use of Section 4(a) Sales Tax proceeds will be contingent on the following:
A. SI's presentation to the WFEDC describing their intent to retain up to 55 existing full -time
jobs as of the date of this MOU and to potentially create new jobs. The presentation will also
include the base number of jobs.
B. The WFEDC's recommendation and City Council's approval of Section 4(a) sales tax
proceeds being used to encourage SI's retention of jobs and the creation of new jobs.
C. SI within twelve months of the day of this Understanding will make a presentation and
provide documentation to the WFEDC evidencing the new corporation, the retained jobs and
any new jobs created. Upon completion of the presentation, a payment for both a retained job
and /or a new job will be made to SI based upon the following schedule:
Net Hourly Wages
Payment per Job (Retained or New)
$ 9.00 to $10.00
$2,000
$10.01 to $11.00
$3,000
$11.01 to $14.00
$4,000
$14.01 and up
$5,000
D. In the event that SI ceases operations in Wichita Falls, Wichita County, Texas prior to
twelve (12) months from the date of receipt of any incentives payment, SI shall within
sixty (60) days of the date of cessation of operations repay the WFEDC the full amount of
the incentive paid.
Wichita Falls Economic Sharp Iron, Inc.
Development Corporation
By:
Gary Shores
Chairman
,Tames Frank
President