1996-03-11 CITY COUNCIL PUBLIC HEARING MEETING MINUTES171
MINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON MARCH 11, 1996, AT 6:00 P. M. IN THE COUNCIL
CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS
The hearing was called to order with the following present:
Mayor
Mayor Pro Tem/Councilmember
Councilmember
Councilmember
Councilmember
City Attorney
City Secretary
Tom Reid
Richard Tetens
Jerry Richardson
(came in at 6:25 p.m.)
Helen Beckman
Kevin Cole
Amy McCullough
Yolanda Benitez
Others in attendance: Assistant City Manager Richard Burdine, Economic Development
Director Jim Berry, and City Engineer John Hargrove.
Absent from hearing: Councilmember Randy Weber, City Manager Paul Grohman,
Assistant City Manager Glen Erwin.
PURPOSE OF THE HEARING:
TO CONSIDER THE CREATION OF A REINVESTMENT ZONE AND TAX
ABATEMENT FOR METALLURGICAL TECHNOLOGIES, INC. (MTI)
LOCATED ON MYKAWA ROAD IN PEARLAND IN ACCORDANCE WITH
312.201 OF THE TAX CODE AND CITY OF PEARLAND RESOLUTION NO.
R96-12.
STAFF REVIEW:
Assistant City Manager Richard Burdine reviewed the location involved and noted that
the business adjacent to MTI, which is Texas Honing, is going to purchase a tract of land
from MTI and do their own expansion. Mr. Burdine noted that this abatement will be the
first that the City Council is acting upon. He also stated that part of the incentive
package included the extension of water and sewer to the property and that is being
done.
Economic Development Director Jim Berry informed the Council that MTI's business is
that of making thermal sprays for equipment for the aerospace industry. He noted the
market is continuing to grow in this area. Mr. Berry stated that MTI will pay more taxes
during the seven-year period than what they will be saving.
PERSONS WISHING TO GIVE INPUT: None
172
QUESTION AND ANSWER PERIOD:
Councilmember Cole asked the following questions: 1) Is the 50% of taxes on new value
only and does it include any inventory? 2) Can the City abate any inventory? 3) 50%
of taxes for how many years? And, is the policy for up to 10 years?
Mr. Berry answered as follows: 1) Yes, on the new property only and it does not include
any inventory; 2) No, you cannot include the inventory; 3) For 7 years; and yes, the
policy does allow for that.
Mayor Reid asked the following questions: 1) Are the improvements being sought
feasible? 2) Will these improvements benefit the reinvestment zone after the tax
abatement agreement expires? 3) Is this proposed reinvestment zone reasonably likely
to contribute to the retention or expansion of primary employment; or 4) attract major
investment in that area?
Mr. Berry answered as follows: 1) To the best of our knowledge, they are; 2) We believe
that it will - not only do we expect that facility to be productive and paying 100% of taxes,
we frankly expect it to be larger and have greater employment and provide opportunities
for people in the reinvestment zone; 3) Definitely will create significant number of new
jobs and maintains a specific number of existing jobs; 4) it will - the construction of the
facility is a major investment in and of itself and the improvements to the land and
infrastructure are all major improvements.
Mr. Berry announced that Houston Lighting and Power will be co -sponsoring a reception
tomorrow for MTI to show their support.
Councilmember Tetens inquired about other uses for the thermal spray that MTI
manufactures. Mr. Berry responded that it is applicable in other industries, and
brochures will be available tomorrow.
Councilmember Cole asked about whether this falls under the City's clean and safe
industry which we have been targeting. Mr. Berry noted that it does as it does not
contain any effluent, and it is very high-tech and very clean.
ADJOURNMENT
The hearing adjourned at 6:38 P. M.
Minutes approv d as submitted and/or
A. D., 1996.
ATTEST:
%inda C. Benitei,-
corrected this C:?5—d day of
Tom Reid, Mayor