R2006-148 09-11-06
RESOLUTION NO. R2006-148
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, AUTHORIZING THE PEARLAND ECONOMIC
DEVELOPMENT CORPORATION TO ENTER INTO AN ECONOMIC
INCENTIVE AGREEMENT WITH BISON BUILDING MATERIALS, LTD.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS:
Section 1. That the Pearland Economic Development Corporation is hereby
authorized to enter into an Economic Incentive Agreement with Bison Building
Materials, Ltd.
PASSED, APPROVED, AND ADOPTED this 11th day of September, A.D., 2006.
c-~~r?w
TOM REID
MAYOR
ATTEST:
APPROVED AS TO FORM:
D~ A A It ~ ~
DARRIN M. COKER
CITY ATTORNEY
Pearland EDC
Memo
To: Randy Ferguson
From: Fred Welch
cc: PEDC Board
Date: 7/1012006
Re: Bison Lumber Assistance
Randy:
Enclosed is the analysis completed for Bison Lumber expansion into Pearland. The investment plus the
sales tax potential makes the analysis a bit skewed but the end result is a facility generated close to
$25 million in taxable sales each year and 35 new jobs to the city. Rough analysis on this is a tax
generator of $375,000 per year to the city of which $125,000 goes to the EDC.
One of the most expensive aspects to the developer (Bison) is the cost of the rail switch and rail siding
to serve the facility. Staff suggestion is to provide up to $150,000 towards the cost of the switch and
siding. Cost of the switch from the rail line is in excess of $110,000. Regardless of what happens to the
Bison facility over time we will have a rail served facility that can be adapted to future needs with a
payback to the EDC of less than two years.
Fred Welch
~
Pearland Economic Develo ment Corporation
Assistance Application Form
Applicant Information
Company Name: 'bA.",:>~~\..}.n~I"'(\- ~\U..~ ~.
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Address: O~ ~~ \ <=i~4q
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Company Official:
Title:
Telephone:
FAX:
Please submit third party reviewed fmancial statements or IRS tax filings for the prior
two years.
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Pi-oJeetDescription ~ ~ 'l!I ~ \\~_
Applicant MUST attach a statement fully explaining the project Describe future site
improvements. business operations. and economic impacts of the proposed project. If the
company will be required to obtain any State or Federal pennits. please detail which permits and
why they are required. The company must !U.for assistance from the PEDC.
Description of Facility (Select those that apply)
Corporation ( ) Partnership M
Expansion ( ) Modernization ( )
Office! Professional ( )
Proprietorship ( ) New Plant (...y-
Manufacturing ( ) Sales ( )
Other Industry () Distribution Center (y1-'
~~"" ~~~ ~
Project Location (Attach site plan): 1V Y\'- >-- '\ ~ ~ \'Vt (" \~ ~ .
Total Capital Investment (Excluding Land Value): $ ~. S "\r(\r-, \1\ ~ )
Estimated Expenses of Bringing Utilities to Site: Sl\St \'\-
Building Size (Sq. Ft.):~ _ ~\....~ -:-... -~..- "So <::>~ '*
Estimated Moving Expenses: $ 'Y'S'\ VT
Estimated Annual Sales Tax Contribution: $ ~>. ~ '2. <:Stl::::> ~ ~~ ~
Estimated Value of Fixed Equipment: S .::z..SOJ O".~ 0
Sales Tax Sent to State of Texas (Last year): $ ~ ~~ \x. ~
Company Profile: Employment:
Current Employment: t~ Employment in 5 years: S ~
Gross Annual Payroll: $ . . ~\\~Annual Payroll in 5 years: $ .3. '8
Average Hourly Wage: $ \7- Avg. Wage in 5 years: $ \ 10
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MINUTES OF A REGULAR MEETING OF THE PEARLAND ECONOMIC DEVELOPMENT
CORPORATION ("PEDC") BOARD OF DIRECTORS OF THE CITY OF PEARLAND, TEXAS, HELD
MONDAY, JULY 10, 2006, AT 5:30 P.M., 1ST FLOOR CONFERENCE ROOM, CITY HALL, 3519
LIBERTY DRIVE, PEARLAND, TEXAS.
I. Call to Order
The meeting was called to order at 5:30 p.m. with the following present:
BOARD MEMBERS
Chairman
Randy Ferguson
Board member
Gary Idoux
Board member
George Sandars
Board member
Lucy Stevener
Board member
Ed Thompson
EX-OFFICIO BOARD MEMBERS
Pearland Area
Chamber of Commerce
Carol Artz
Not in attendance: Due to a conflict in schedule, Ex-Officio Board Members Bill Eisen and Mayor
Tom Reid were unable to attend the meeting.
STAFF MEMBERS
Executive Director
Fred Welch
Office Coordinator
Janice Vega
Minutes of a Regular Meeting
July 10, 2006
Page 2
II. Approval of Minutes: Board member George Sandars made the motion, seconded by Board
member Lucy Stevener to approve the minutes of the Public Hearing and Regular Meeting of May
22, 2006.
Motion Passed: 5 - 0
III. Board Member Reports: Board members Lucy Stevener and George Sandars attended the Kirby
Road ribbon cutting and the Poag & McEwen groundbreaking. Board member Gary Idoux also
attended the Kirby Road ribbon cutting.
IV. Monthly Financial Report: Reviewed and discussed Pearland Economic Development
Corporation Financial Report for the period ending June, 2006.
V. Executive Director's Report: Executive Director Fred Welch reported that Texas Honing may be
getting ready to start an expansion of their facility. Aggreko is progressing on their training facility.
VI. Public Comments: None
VII. New Business
A. FY2006 Budget Amendment: Board member Ed Thompson made the motion, seconded by
Board member George Sandars to amend the FY2006 budget for projections as presented by
Director of Finance Claire Manthei.
Motion Passed: 5 - 0
B. FY2007 PEDC Budget: Board member George Sandars made the motion, seconded by
Board Member Lucy Stevener to approved the FY2007 budget.
Motion Passed: 5 - 0
C. Quarterly Report: President Carol Artz of the Pearland Area Chamber of Commerce gave a
report and one was submitted to file.
EXECUTIVE SESSION UNDER TEXAS GOVERNMENT CODE
The meeting was adjourned to enter into Executive Session at 6:41 p.m.
1. SECTION 551.087 DELIBERATIONS REGARDING ECONOMIC
DEVELOPMENT INCENTIVES - Prospect #0606.
2. SECTION 551.087 DELIBERATIONS REGARDING ECONOMIC
DEVELOPMENT INCENTIVES - Prospect #0607.
3. SECTION 551.087 DELIBERATIONS REGARDING ECONOMIC
DEVELOPMENT INCENTIVES - Prospect #0608.
The Board reconvened into Open Session at 7:03p.m.
NEW BUSINESS (Continued)
D. Economic Development Incentives - Prospect #0606: Board member George Sandars
made the motion, seconded by Board member Lucy Stevener to grant economic development
incentives to Prospect #0606 in the amount of $150,000.00 for the cost of a rail switch.
Minutes of a Regular Meeting
July 10, 2006
Page 3
E. Economic Development Incentives - Prospect #0607: Board member Ed Thompson
made the motion, seconded by Board member Gary Idoux to grant economic development
incentives to Prospect #0607 for infrastructure for an amount not to exceed $55,000.00.
F. Economic Development Incentives - Prospect #0608: Board member George Sandars
made the motion, seconded by Board member Lucy Stevener to grant economic development
incentives to Prospect #0608 for infrastructure for an amount not to exceed $225,000.00, and
will recommend that City Council consider granting the company a tax abatement.
VII. Adjournment: Board member George Sandars made the motion, seconded by Board member Ed
Thompson to adjourn the meeting.
Motion Passed: 5 - 0
Time: 7:08 p.m.
Minutes a~.oved
CJl A ); 1..
as submitted
, A.D., 2006.
and/or
corrected this
~ ~ +1\"
day
of
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ATTEST: