1999-10-25 CITY COUNCIL PUBLIC HEARING MEETING MINUTES197
MINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, TO BE HELD ON OCTOBER 25, 1999 AT 7:00 P.M., IN THE
COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
The meeting was called to order with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
William Berger
Helen Beckman
Richard Tetens
Larry Wilkins
Klaus Seeger
Glen Erwin
Darrin Coker
Young Lorfing
Others in attendance: Executive Director P. E. D.C. Mike Chance; Deputy City ManagerAlan
Mueller; Police Chief J.C. Doyle; City Engineer John Hargrove; Director of Community
Development & Services Gene Tumlinson; Director of Finance David Castillo; Public Works
Director Jerry Burns; Assistant City Attorney Nghiem Doan; Project Manager Michael Ross;
Purchasing Officer Gordon Island.
PURPOSE OF HEARING - PROPOSED REINVESTMENT ZONE NUMBER 7.
To consider the creation of a reinvestment zone and tax abatement for Weatherford U.S.,
L.P. to be located at 3808 Magnolia in Pearland in accordance with § 312.201 of the Tax
Code and City of Pearland Resolution No. R98-59.
STAFF REVIEW
P.E.D.C. Executive Director, Mike Chance, addressed Council and stated that we are
pleased one of our local industries, the Weatherford Corporation is looking at the possibility
of a major expansion here. He further reported they are looking at a substantial increase
in the size of their building, land, facilities, and employees. If this proposal goes through,
they will be adding 100 jobs to the present the work force over the next three years. The
company is looking at a $2,500,000 building addition, more than $900,000 in new
equipment, and inventory on the site of more than $15,000,000, which will be a taxable
inventory. The new capital investment for this project will be $19,200,000. He also stated
that Weatherford Corporation has purchased another company and they are looking at
moving all of that company's operation to this site. Mr. Chance further stated that this is
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19 F.
one of several scenarios that Weatherford is looking at, and the future will depend on the
abatements and incentives that are available to Weatherford.
CITIZEN COMMENTS
None.
COUNCIUSTAFF DISCUSSION
Councilmember Seeger asked if the improvements will remain here after the time runs out
on the zone?
P.E.D.C. Executive Director, Mike Chance, stated that it is capital investments in the
building cost, and that will stay on the property.
Mayor Reid asked will the proposed improvements benefit the reinvestment zone after the
tax abatement agreement expires?
P.E.D.C. Executive Director, Mike Chance, stated that the building, equipment, and the
fixed assets will remain on the tax rolls, depending on the life of the equipment.
Mayor Pro -Tem Berger asked if the proposed reinvestment zone is likely to contribute to the
retention or expansion of primary employment or attract major investments in that area?
P.E.D.C. Executive Director, Mike Chance, stated that he would answer yes on both of
those. This tax abatement plays a major part on whether or not the expansion comes to
Pearland or not, and it is attracting major investment. The $15,000,000 in inventory goods
that are taxable will not come here unless this program comes here.
Mayor Reid asked if the improvements are feasible?
P.E.D.C. Executive Director, Mike Chance, stated that they are feasible. Most of what they
are proposing has been done at another site by the company that Weatherford has bought.
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199
Minutes of the October 25, 1999 Public Hearing
ADJOURNMENT
Meeting was adjourned at 7:10 p.m.
Minutes approved as submitted and/or corrected this sth the day of A.D. Nnvamhar
1999.
6; �L4.1i
Tom Reid
Mayor
A=CCT -
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