Res 012-2003 2/18/2003RESOLUTION NO. ka
RESOLUTION AUTHORIZING AN ECONOMIC DEVELOPMENT INCENTIVE
AGREEMENT WITH PRATT AND WHITNEY CANADA AS RECOMMENDED
BY THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION AND
APPROVING AN AMENDMENT TO THE CORPORATION'S FY 2002 -2003
BUDGET; FINDING AND DETERMINING THAT THE MEETING AT WHICH
THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS
REQUIRED BY LAW.
WHEREAS, on February 14, 2003, the Wichita Falls Economic Development
Corporation ( WFEDC) met to consider a Memorandum of Understanding with Pratt and
Whitney Canada; and
WHEREAS, the WFEDC approved the attached Memorandum of Understanding
that includes an incentive agreement for job creation; and
WHEREAS, the WFEDC recommends approval of the Memorandum of
Understanding that will encumber $300,000 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 with Pratt and Whitney Canada, as approved by the
Wichita Falls Economic Development Corporation, is attached and hereby approved.
SECTION 2. The FY 2002 -2003 Budget of the WFEDC is hereby amended to
provide for funding in the amount of $300,000.
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 18th day of February, 2003.
MAYOR
ATTEST:
. 1
I CAAD _
City Clerk
Memorandum of Understanding
February 14, 2003
This is a Memorandum of Understanding (MOLL) between Pratt & Whitney Canada (PWC) 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.
2. By definition, the base number of jobs is the number of existing full -time jobs in place at
PWC's Wichita Falls facility as of the day of this Understanding.
3. By definition, a new full -time job is one that has been created as a result of the relocation of
operations from the PWC facility in San Diego, California to the PWC Wichita Falls, Texas
facility, is benefit eligible, and has been filled by a PWC employee for a minimum of 6
months.
4. The use of Section 4(a) Sales Tax proceeds will be contingent on the following:
A. PWC's presentation to the WFEDC describing their intent to consolidate operations from
their San Diego, California facility to the PWC facility in Wichita Falls that will in turn
create at least 30 new full -time jobs at the PWC facility in Wichita Falls, Texas in
addition to the base number of jobs. These new jobs are to be created by no later than
March 1, 2004.
B. The WFEDC's recommendation and City Council's approval of Section 4(a) sales tax
proceeds being used to encourage PWC's consolidation at their operations in Wichita
Falls, Texas versus other locations.
C. At a date to be determined by PWC, not to exceed 24 months from the date of this
Understanding, a presentation will be made to the WFEDC evidencing the creation of the
new full -time jobs. The maximum number of new full -time jobs eligible for this
incentive is 50. Upon completion of this hiring provision, a payment will be made to
PWC in the amount of $3,000 for every new job created paying a minimum average
hourly wage of $14.50 before benefits. Additionally, a premium of 10% of annual salary
will be paid for each new job that pays a base salary of at least $50,000 but not more than
$100,000.
Wichita Falls Economic
Development Corporation
Pratt & Whitney Canada
By:
h B. Stabler
Chairman
By: O