2018 CEDA APPLICATION

Transcription

1 2018 CEDA APPLICATION All Applications Must Be Received By August 17, 2018 The 2018 TEDC Community Economic Development Awards (CEDA) will be presented during TEDC's Annual Conference Award s Luncheon on October 18, 2018, in Fort Worth, Texas. The recipients will be judged in each of the five categories that have made the most significant contribution to economic development in their community and the State of Texas. AWARD CATEGORIES The CEDA will be given to one community from each of the following five population categories: (as currently marketed). I. Population less than 10,000 II. Population of 10,001 to 20,000 III. Population of 20,001 to 50,000 IV. Population of 50,001 to 100,000 V. Population of 100,001 to 250,000 VI. Population of 250,001 and above NOMINATION: Name of Community: Tyler Economic Development Council, Inc. * TEDC Member Name: Thomas G. Mullins Address: 315 N. Broadway, Suite 300, Tyler, TX Telephone #: ext. 246 Fax #: Address: tmullins@tylertexas.com Social Media Accounts: (individual member, not organization) Twitter Handle: FaceBook Page: Community Population (as currently marketed): 227,727 Application Submitted By: Thomas G. Mullins Telephone #: , ex. 246 Media Contacts: (limit 3) Organization: Tyler Paper Address: emansfield@tylerpaper.com Address: tmullins@tylertexas.com Contact Name: Erin Mansfield Organization: KLTV Channel 7 Contact Name: Pat Stacy Address: pstacey@kltv.com Organization: KTBB Contact Name: John Sims Address: news@ktbb.com SUBMITTED FOR: Business Retention Business Expansion (CIRCLE ALL THAT APPLY) Business Attraction Community Involvement NOTE: This is a joint application for Tyler/Lindale/Mineola in Smith and Wood Counties.

2 Nomination Texas Economic Development Council Community Economic Development Award Tyler, TX 2018 Award Category V Population 100, ,000 Tyler, Lindale, Mineola (Smith and Wood Counties) Tyler Economic Development Council o Private, non-profit (covers City of Tyler and Smith County o I-20 Corridor, North East Texas Economic Developers Roundtable o 122 Investors (NETEDR) o 501 (c) 3 o Smith County location for Sanderson o Owner of three business parks Farms Processing Plant o Operates a $3.5 million RLF o Has $10 million balance sheet Lindale (Smith County) o Type A County)Tyler/Lindale CEDA in 1999 for o Lindale Industrial Park Sanderson Farms Administration and Hatchery Target DC ($85 million investment, 1,000 jobs, 1.6 million sf) o Land and cash investors o I-20 Corridor, NETEDR o Works closely with Tyler EDC (Smith Mineola (Wood County) o Type B o Infrastructure for Sanderson Farms rail facility o Location for Sanderson Farms feed mill/rail facility o I-20 Corridor/NETEDR Note: These cities, along with others in 23 counties of Northeast Texas (NETEDR), have been working together since the early 90 s to promote economic development and diversify the region s economy from oil and gas. Sanderson Farms Sanderson Farms is a publicly traded, family operated company that started in 1947 and is headquartered in Laurel, MS. They have been growing rapidly over the past 20 years and are now the third largest poultry processor in the U.S., behind Tyson and Pilgrim s Pride. They have 12 plants located in the South from Texas to North Carolina. Three of those plants are in Texas Bryan, Waco and Palestine. In December 2015, Tyler EDC was contacted by a local food processing firm, John Soules Foods, regarding the potential for a major, national food company to consider locating in the Tyler/Smith County area. John Soules Foods is the third largest non-retail customer for Sanderson Farms in the U.S. Subsequently, Tyler EDC received a request from Sanderson Farms to meet with their representatives in Tyler in early January The Sanderson Farms site selectors indicated they were considering various sites in north and east Texas for a new $200 million, 1,700 employee poultry processing complex. Representatives stated the final location would need to meet the following criteria: 1. The availability of large volumes of high quality water, 2. approximately 500 acres of land for the major components of the project to be provided at no cost to Sanderson, and 3. a ten year 100% tax abatement. 1

3 In March of 2017, the company announced to its shareholders and the national media plans to construct a new and larger facility in northeast Texas. Specifically, in Smith and Wood counties. The investment would include: Processing plant on I-20 in northeast Smith County near the City of Winona o $130 million, 210,000 sf, 1,500 jobs on 500 acres Administrative office and Hatchery on I-20 in Smith County in the Lindale EDC Industrial Park o $18 million, 65,000 sf, 105 employees on 16.5 acres Feed Mill in Mineola (Wood County) on US 80 o $35 million, 36 jobs on 240 acres with direct access to the Union Pacific main rail corridor Grow Out Sanderson Farms will contract with 80 farmers in a 4-5 county region (primarily along US 80) to grow chickens to Sanderson s specifications. These growers will invest $130 million in facilities and employ The counties of Smith and Wood, in partnership with the Tyler, Lindale, and Mineola economic development organizations, put together a $52.1 million incentive package that included free land, tax abatements and infrastructure grants, provided Sanderson Farms invests $200 million and created 1,700 jobs within two years of start-up, which is scheduled for the first quarter of In addition, new market tax credits could result in up to a $30 million cash benefit. Also, the company may be eligible for Economic Opportunity Zone designation funds (TBD), provided they meet their investment and job targets. The program has not been completely finalized by the U.S. Treasury Department. According to Impact DataSource, Austin, TX, the ten-year economic impact of this massive project will be $1.45 billion on the local and regional economies. Innovation Multi-jurisdictional partnership (three cities, two counties) Tyler EDC granted $1.8 million of private funds to Sanderson Farms to acquire 570+ acres for the processing plant site In addition, TEDC granted $350,000 for road improvement (FM 2015) access to the plant The City of Tyler sponsored a Texas Enterprise Zone application for $1.6 million for the processing plant site located in Tyler ETJ Smith County provided $50,000 for road improvements to FM 2015 The City of Lindale offered 50% tax abatement in an existing TIF zone for the Administrative Office and Hatchery, and the Lindale EDC provided 16.5 acres of land at no cost to Sanderson Farms (estimated value $660,000) Mineola was approved for a $750,000 grant from Texas Capital Fund for water, sewer and natural gas infrastructure with a local match of $370,000 and an additional grant from North East Texas Regional Mobility Authority (NET RMA) of $171,000 New Market Tax Credits up to $30 million and potential Opportunity Zone designation funds eligibility Tax abatements from Smith County, Tyler Junior College, Smith County Emergency Services District #1 and Smith County Emergency Services District #2 80% for seven years and 50% for three years ($10.2 million); the abatements will be administered by the Tyler EDC The City of Mineola and Wood County provided tax abatements worth $2.5 million The Texas Workforce Commission, in partnership with Tyler Junior College, will provide a $2.9 million training grant Smith County is sponsoring a $1 million Texas capital fund grant for upgrading the rural water system serving the processing plant. Tyler EDC used the latest mobile technology and GIS mapping software provided by the Smith County 911 District and the Smith County Appraisal District to evaluate construction locations with the Sanderson Farms representatives at the sites in real time 2

4 Transferability Texas type A and B sales tax organizations can fund eligible economic development projects Texas Workforce Skills Development Fund is available throughout the State. The regional partnership used for this project could also work with other governmental and private economic development organizations through open communication and shared responsibility City and County incentives are available through Texas local government codes Chapter 380 (cities) and 381 (counties) All Texas city and county jurisdictions can offer tax abatements through Chapter 312 and 313 of the local government code NET RMA grants are available in 12 Northeast Texas counties TxDOT funds and tax credits can be used all over Texas and can be leveraged with local match New Market Tax Credits and Opportunity Zones are federal incentives tied to investment and job creation in rural, low income census tracts Texas Department of Agriculture Capital Fund grants are available for populations under 50,000 in Texas The GIS technology used is available via web browser, a reliable cellular service would be required to access GIS data on site Community Commitment and Leverage Tax abatements were unanimously approved by taxing entities o Smith County $3.5 million o Wood County $1.1 million o City of Lindale * $425,000 o City of Mineola $1.4 million o Tyler Junior College $2.1 million o Smith County Emergency Services #2 $781,000 o Smith County Emergency Services #1 $86,500 (* Lindale abatement is in a Tax Increment Financing Zone (TIF)) Texas road improvements to FM 2015 and I-20 ramp widening of $3.5 million $350,000 for road improvement from TEDC and Smith County for FM-2015 turning lanes $1.8 million for land from TEDC (cash grant) 4A sales tax in Lindale provided 16.5 acres of free land ($40,000/acre incentive X 16.5 = $660,000) 4B sales tax in Mineola was $520,000 ($370,000 match for infrastructure, $150,000 to secure grant for environmental/engineering/legal/consulting fees City of Mineola waived all permit fees, $96,000 to date $750,000 Texas Capital Fund grant for water, sewer and gas extensions, City of Mineola Freeport for $1 million annually includes City, Tyler Junior College, Emergency Service Districts AND Independent School District. Freeport is available every year NET RMA (12 counties) $171,000 road improvements in Wood County Smith County ROW for effluent pipe line from the processing plant 10 miles north to the Sabine River (Texas Commission on Environmental Quality (TCEQ) approved a direct discharge permit) Federal New Market tax credits for the processing plant and feed mill totaling $30 million Eligible for Economic Opportunity Zones designation funds for the processing plant and feed mill (TBD) Texas Workforce Commission Skills Development grant funds for $2.9 million Smith County Texas Capital Fund grant for $1 million to upgrade rural water system Total incentives of $52.1 million 3

5 Measured Objectives Value added employee benefits o Paid holidays and vacations o Free basic life insurance o 401k with 100% match on first 3% contributed o 75% health insurance coverage for employees and their families after 90 days o 100% school costs for employees (after one year) o Starting wage $12.20, ($12.70 after 90 days), which is $3.59 higher than the industry average in East Texas, $13.55 after one year. o Local wages for unskilled labor have already gone up because of Sanderson Farms pay scale Ten-year economic impact $1.45 billion (Impact DataSource, Austin, TX) 1,700 new jobs $200 million new investment by the company, with an additional $130 million by the contract growers Secondary Benefits Sand Flat Water Supply Corporation is able to qualify for a $1 million Capital Fund grant to expand systems and provide Sanderson Farms an emergency backup, as well as increased capacity for future growth in the area. More residential and retail development in the most economically distressed area of Smith County Winona ISD will receive a $1,881,646 tax revenue increase windfall the first year of Sanderson Farms operation. Their current annual budget is $10 million Sanderson Farms is a major contributor to local schools and higher education institutions for special projects Sanderson Farms is also a major contributor to United Way and other local charities Sanderson Farms operates a summer internship program with colleges and universities to allow interns to gain a working knowledge of Sanderson Farms and the poultry industry International EDC Silver Award Recipient for the Sanderson Farms Regionalism & Cross-Border Collaboration, Population 200, ,000 4