2007-12-17 CITY COUNCIL PUBLIC HEARING MEETING MINUTESPUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS,
TO BE HELD ON MONDAY, DECEMBER 17, 2007, AT 6:30 P.M., IN THE COUNCIL
CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the meeting to order at 6:30 p.m. with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
Steven Saboe
Woody Owens
Helen Beckman
Kevin Cole
Felicia Kyle
Bill Eisen
Darrin Coker
Young Lorfing
Others in attendance: Trent Epperson Project Director; Nick Finan Assistant City
Manager; Mike Hodge Assistant City Manager; Narciso Lira City Engineer; Claire
Manthei Finance Director; Fred Welch Executive Director of Economic Development
Corporation; Greg Albritton Director Business Development.
PURPOSE OF HEARING — TO CONSIDER THE CREATION OF A REINVESTMENT
ZONE AND TAX ABATEMENT FOR ISE-MAGTECH IN ACCORDANCE WITH
SECTION 312.201 OF THE TAX CODE AND CITY OF PEARLAND'S GUIDELINES
FOR GRANTING TAXING ABATEMENTS. Mr. Darrin Coker, City Attorney.
STAFF REVIEW OF THE PROPOSED CREATION OF A REINVESTMENT ZONE
AND TAX ABATEMENT FOR ISE-MAGTECH IN ACCORDANCE WITH SECTION
312.201 OF THE TAX CODE AND CITY OF PEARLAND'S GUIDELINES FOR
GRANTING TAXING ABATEMENTS. Mr. Darrin Coker, City Attorney.
City Attorney Darrin Coker stated the first step in the Tax Abatement process is to
create a Reinvestment Zone, which requires a Public Hearing be held. The creation of
a Reinvestment Zone does not require the Council to approve the Tax Abatement. The
company requesting the Tax Abatement is Ise-Magtech for improvements located on
Magnolia Road.
CITIZEN COMMENTS: None.
COUNCIL/STAFF DISCUSSION:
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Councilmember Owens stated the letter to Ise-Magtech states there will be a cash
award of $35,000 at the end of the first year with the satisfactory employment of 30
people. He asked if the 30 employees were in addition to the 48 current employees or
included in that number.
Director Business Development Gregg Albritton stated he believes the company would
begin with the current 48 and then add 10 additional.
Executive Director of Economic Development Fred Welch stated the agreement was
based on the creation of 30 jobs. This was to prevent the company from getting into a
situation where, if in the first year any problems occurred, they would not owe any of the
money back before they could improve the situation.
Councilmember Owens asked if the City verifies that a company is meeting the
requirements of a Tax Abatement Agreement and how often it is reviewed.
Executive Director of Economic Development Fred Welch stated the City receives an
annual report that is also submitted to the Texas Workforce Commission.
City Attorney Darrin Coker stated the City receives the report and also has the option to
perform an audit on the company.
Councilmember Kyle stated, in the proposal memorandum, the recommendation was for
a cash incentive of $100,000 with a total abatement value over seven years of $68,000.
She asked, with the Economic Development Board approving a $135,000 cash
incentive, will there be a reduction in another area.
Executive Director of Economic Development Fred Welch stated the terms are still
being established with the Tax Abatement.
Discussion ensued between Council, City Attorney Darrin Coker, Director of Economic
Development Corporation Fred Welch, and City Engineer Narciso Lira regarding the
Tax Abatement.
Johnny Jones, Ise-Magtech Inc., addressed Council and stated Ise-Magtech is currently
located in Houston and manufacturers liquid level gauges, switches and transmitters,
and other liquid level products. The company has been in operation for more than 20
years and is wanting to expand, but has no room at the current location. They have
purchased land in Pearland and have begun the process of relocating the company.
ADJOURNMENT
Meeting was adjourned at 6:45 p.m.
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Minutes approved as submitted and/or corrected this the 14th day of January, A.D.,
2008.
Tom Reid
4.............
Mayor
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