2009-01-26 CITY COUNCIL PUBLIC HEARING MEETING MINUTESMINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, TO BE HELD ON MONDAY, JANUARY 26, 2009, AT 6:30 P.M.
IN THE TEMPORARY MUNICIPAL COURT ROOM LOCATED AT THE CITY OF
PEARLAND COMMUNITY CENTER, 3523 LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the meeting to order at 6:35 p.m. with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
Helen Beckman
Woody Owens
Steve Saboe
Felicia Kyle
Kevin Cole
Bill Eisen
Darrin Coker
Young Lorfing
Others in attendance: Trent Epperson Project Director; Mary Hickling Director of Human
Resources and Safety Management; Mike Hodge Assistant City Manager; Narciso Lira
City Engineer; Teresa Battenfield Assistant Project Director; Kyler Cole Old Townsite
Economic Development Coordinator.
PURPOSE OF HEARING - PUBLIC COMMENT AND TESTIMONY REGARDING AN
APPLICATION BY BRASK/ NEELA AND THE CITY OF PEARLAND, TEXAS TO
NOMINATE THE PROPOSED MANUFACTURING FACILITY LOCATED IN THE
PEARLAND INDUSTRIAL PARK ON THE SOUTH SIDE OF INDUSTRIAL DRIVE,
GENERALLY DESCRIBED AS 9.4675 ACRES OF LAND SITUATED IN SECTION, 27,
H.T. & B.R.R. SURVEY, A-308 BRAZORIA COUNTY TEXAS AND BEING PART OF
LOT 165 AND LOT 166 OF THE ZYCHLINSKI SUBDIVISION AS RECORDED IN
VOLUME 29, PAGE 9, OF THE DEED OF RECORDS OF BRAZORIA COUNTY AS AN
ENTERPRISE ZONE PROJECT WITH THE STATE OF TEXAS. A REINVESTMENT
ZONE FOR PURPOSES OF TAX ABATEMENT HAS PREVIOUSLY BEEN CREATED
BY THE CITY OF PEARLAND FOR THIS PROJECT. Mr. Kyler Cole, Old Townsite
Economic Development Coordinator.
STAFF REVIEW OF THE APPLICATION BY BRASK/ NEELA AND THE CITY OF
PEARLAND, TEXAS TO NOMINATE THE PROPOSED MANUFACTURING FACILITY
LOCATED IN THE PEARLAND INDUSTRIAL PARK ON THE SOUTH SIDE OF
INDUSTRIAL DRIVE, GENERALLY DESCRIBED AS 9.4675 ACRES OF LAND
SITUATED IN SECTION, 27, H.T. & B.R.R. SURVEY, A-308 BRAZORIA COUNTY
TEXAS AND BEING PART OF LOT 165 AND LOT 166 OF THE ZYCHLINSKI
SUBDIVISION AS RECORDED IN VOLUME 29, PAGE 9, OF THE DEED OF
RECORDS OF BRAZORIA COUNTY AS AN ENTERPRISE ZONE PROJECT WITH
THE STATE OF TEXAS. A REINVESTMENT ZONE FOR PURPOSES OF TAX
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ABATEMENT HAS PREVIOUSLY BEEN CREATED BY THE CITY OF PEARLAND
FOR THIS PROJECT. Mr. Kyler Cole, Old Townsite Economic Development
Coordinator.
Old Townsite Economic Development Coordinator Kyler Cole stated this item is in
conjunction with the Tax Abatement that was presented for the Brask/Neela project.
The company will invest approximately $7,000,000 and create fifty-seven jobs. The
State offers an Enterprise Zone Project which allows the Council to create a Tax
Reinvestment Zone. Approving this item will allow the company to leverage other State
incentives.
CITIZEN COMMENTS: None.
COUNCIL/STAFF DISCUSSION:
City Manager Bill Eisen stated the primary benefit to the manufacturing company is a
rebate of State sales tax of sixty-four percent.
Councilmember Kyle stated the Executive Summary describes Brask/Neela receiving a
refund of 6.25% on the construction sales tax and may qualify for a partial refund of
their gross margin taxes paid to the State based on hiring low income or displaced
workers and training them. She asked for clarification on how the company will qualify
for these benefits, what the hiring program entails, and how it will benefit the
community.
Eric Geisler, Economic Incentives Services LLC, stated the Enterprise Zone Program
makes an Enterprise Project that is nominated by a City or County eligible for sales tax
refunds for expenditures at the particular site. In exchange for these benefits, the
company agrees to a hiring requirement of thirty-five percent of hired employees
qualifying as disadvantaged or a zone resident. If the company meets this requirement
for the length of the project, they are eligible for the State only sales and use tax
refunds. There are seven criteria that an applicant can meet to be qualified as
disadvantaged.
Councilmember Saboe asked for a brief description of what type of work the company
does.
Old Townsite Economic Development Coordinator Kyler Cole stated the company
manufactures heat exchangers, water filtration systems, and skid mounted bio -diesel
units. The company's primary market is the process technology industry.
Councilmember Owens asked what the average salary will be for the employees.
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Old Townsite Economic Development Coordinator Kyler Cole stated, according to the
impact analysis, the average salary will be approximately $45,000.
Councilmember Kyle stated she wanted clarification on whether the company will be
paying the under -privileged workers they hire the average wage and not be paying them
less hourly to increase their profit. She inquired of the impact on the company's
performance benchmarks set forth in the Pearland Economic Development Incentives.
Old Townsite Economic Development Coordinator Kyler Cole stated the employees will
be paid the same average salary as other employees in the same employment types.
Councilmember Kyle stated the presentation did not reference one area of workers that
had been discussed in a prior conversation and she asked if the company would have
the choice to exclude a certain group that is qualified as disadvantaged from their
program.
Eric Geisler, Economic Incentives Services LLC, stated the company is not required to
hire an individuals from each group classified as disadvantaged. They do have the
option to hire an applicant that is on parole, has been confined in a correctional facility,
or has been confined in a Texas Youth Facility, but the choice is left at the company's
discretion.
ADJOURNMENT
Meeting was adjourned at 6:54 p.m.
Minutes approved as submitted and/or corrected this the 9th day of February, A.D.,
2009.
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Tom Reid
Mayor
ATTEST:
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