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BM 1996-02-23 EcDevCOPPELL ECONOMIC DEVELOPIV WNT PARTNERSHIP Special Call Meeting February 23, 19% MENUTES The Coppell Economic Development Partnership met at 7:30 a.m. on Wednesday, February 23, 1996, at Coppell Town Center, 255 Parkway Boulevard, Coppell, Texas 75019. The following members were present: Bronwyn Brock, Chairperson Jim Witt, City Manager John Mark Bonnot, Chamber President Tim Brancheau Dave Greer Bill Heroes Ron Pankey Jim Dippold Gary Sieb Isabelle Moro Kathleen Roach Tom Morton, Mayor 1. Call to Order Chairman Bronwyn Brock called the meeting to order at 7:30 a.m. 2. Sales Tax Rebate for Designated Business City Manager Jim Witt met with Mr. Hughey and Mr. Walden, Land Development Services, Inc., regarding Quill Corporation's request for sales tau rebates. Quill's "magic number" appears to be about $600,000 in rebate. Bill Heroes gave a short presentation on sales tau rebates and there was general discussion about the pros and cons for setting a precedent with this policy. Mayor Morton suggested we consider offering $50,000 per year, for a period of ten years, provided a minimum of $150,000 in sales tax revenues are generated. If consensus is reached today, this offer will have to go forward to the City Council on March 12th as a Resolution under Section 380. The motion was made, and seconded, to send a Resolution under Section 380 to include sales tax rebates up to $50,000 for a period of ten years with a minimum of $150,000 of generated sales tax revenues forward to Council for their approval on March 12th. It was suggested that this resolution be sent forward to Council now for this "special deal" with Quill. Then the Partnership will take 60 days to develop and bring back to Council appropriate guidelines for a Sales Tax Rebate Policy for future prospects. With no further business to discuss, the meeting adjourned at approximately 8:15 a.m. Respectfully submitted, Kathleen Roach /minfeb.23 - ---- ---- _. __ - -_.--------.__..-------- 02-19-1996 03:11PM FROM Coppell Chamber Commerce TO 3043623 P.02 COPPELL ECONOMIC DEVELOPMENT PARTNERSHIP Culled Meeting Friday, February 23, 1996 7:34 am City Hall 10 Copper Texas AGENDA 1. Discuss and achieve consensus on the issue of a Sales Tax Rebate for an industrial prospect involved in mail-order and distribution of office supplies. STAISNY 'r FOR ADA COMFW NCE Tho City of Coppell a+ekna fledges ib ratpombildy to comply with the Amermw with Dwabilitia Act of 1990. Thu% is Order to assiat individuals with disabilities who requim special aervica (Le. sign it Unweta0w services, ahamative wAoNisual daviaod, and amuses :) for participation in or socces to dw City of Coppell spcxawaad public p o ams, wvim and/or mwtbWg the City r"uft s that itdivicisals Mader requests for these services fortyei*4 (48) hours ahead of a* sol! *49d program, service and/or smeedng. To melee unmgemeds, coded Vivyon V. Bwmn n, ADA CaadimWr or other desiVaW official at (214) 462-0022, or (TOD 1 -800 -RELAY. TX 1. 80.735- 2829). IN COMPLIANCE WITH CRY OF COPPELL ORDINANCE NO. 95724 Canying oft eonmalod handgun on these premises or at any official politics! meeting in the City of Coppell is illegal. Ps Hegel llevar coosigo un arm& de fusgo oaulta, adedto de este eddic ion o an cuaiquier junta oftW de politics cu 1& ciudod de Coppell. rt TOTAL P.02 nu1LL2.xLS Coppel-to-Garland City Comparison: 5 Year Period 1996 Levy on 1996 Levy on 1997 Levy on 1997 Levy on 1998 Levy on 1998 Levy on 1999 Levy on 1999 Levy on 2000 Levy on 2000 Levy on Totel Levy Real Prop. Impv. Inventory Real Inventory Mal Inventory Real Inventory Real Inventory over 6 Year Entity w/Abate Period City of Copp*# $11,037 $11,509 $11,037 $13,810 $11,037 $18,573 $11,037 $19,887 $11,037 $23,884 $140,828 City of Garland 60 $28,512 $0 $34,214 $0 $41,057 $0 $49,289 $0 $59,121 $212,173 1. Difference $71,346 Coppell-to-Garland City Comparison: Years 6 thru 10 Summary: During 10 Year Period Total Levy Years Total Levy Yews Total Levy Total Levy 6 - 10 on Mel 6 - 10 on Inv. Yews 6 - 10 Total Levy on Total Levy on over 10 Yew Entity Property Entity Mal Property Inventory Period City of COppetl $220,736 $119,320 $340,058 Coppell City $275,921 $204,963 $480.884 City of Garland $0 $295,805 $295,805 Garland City $0 $507,778 $607,778 Difference 1144,451) Difference $ 26,894 Coppol-to-Garland City Comparison: Year 11 (No Abatement Gromed by Any City) s Annual Annual Levy an Mal Levy on Total Annual Entity Property Inventory Levy City of Copps" $44,147 $23,884 $68,011 City of Garland $41,780 $59,121 $100,901 Difference $32,990 Pape 1 7086345690 DEC -22=1995 09:29 FROM QUILL FINANCIAL TO 912143043673 P.01 Post -It" brand fax transmittal memo 7671 1#ofnaou r .1-4, 1 TO kJAb From { co_ CciPP� t_t... Co. Dept. Phone ff ro'i� - �- 4 ro r I FISCAL SAM MODEL DATA . Fax #�1liy 304 _ 34-7 3 Fax # Total number of employcas at proposed fac.ility and estimated average sak lary . 2. Estizated numtber of explo-yees m%at would poogibiv reside in Cappell. 3 Lst3zaced value of beUilding and MR. 4. Estivated vacua of land and approximate acreage. S. Estieated value of inventory (not subject to Freeport laxeaption) . ' 6 . Utizated amount of aranua.l sa? e-9 subject state safes an4 IIse Tax. r Kuri UU 1 LL F I NANC I AL TO `j 1 145194 Sb r 3 r . n� 22 -Deo -9! 1. Total Number of Employees at Coppell and the Estimated Average Salary Title RDC Manager Supervisors Maintenance inventory Management Security Office Coordinator Product Specialists Receiving crew Equipment Operator Restocker Returns Picker - Lead Pickers Warehouse Office Clerks Receptionist Janitor Total Estimated Estimated Estimated Extended Annual Overtime Total Wages Number of Total Base Wages (5%) Per Person Employees Wages *1 $60,000 $0 $60,000 1 $60,000 $33,500 $0 $33,500 2 $67,000 $24,960 $1,200 $26,160 1 $26,160 $22,880 $1,100 $23,980 1 $23,980 $21,840 $1,100 $22,940 1 $22,940 $20,$00 $0 $20,800 1 $20,800 $20,800 $1,000 $21,800 2 $43,600 $20,800 $1,000 $2.1,800 3 $65,400 $19,760 $1,000 $20,760 3 $62,280 $19,780 $1,000 $20,760 5 $103,800 $18,720 $900 $19,620 2 $39,240 $18,200 $900 $19,100 2 $38,200 $17,160 $000 $18,060 30 $541,800 $16,840 $800 $17,440 2 $34,880 $14,560 $700 $15,250 1 $15,260 $12,480 $600 $13,080 2 $26,160 "1 40 hour work week assumed. Mote. These annualized wages are at the level to support the first year sales, 2. Estimated Number of Employees that would Possibly Reside in Coppell. At 5% 3 At 10% 6 59 $1,191,500 GM 848MORKSHEEICOPPELL.1tItB1 DEC -22-1995 09:30 FROM QUILL FINRNCIRL TO 912143043673 P.03 22 -Dec -9f 3. Estimated Value of Building and FF&E Building Cost: Square feet 135,000 Cost per Square foot $28 Total Building Cost $3,780,000 Furniture, Fixtures, and Equipment Warehouse vehicles $400,000 Warehouse racking and other Equipment $1,600,000 Office Fumfture and Equipment $35,000 Leasehold Improvements $130.000 Total FF&E _ $2,'4651000 Total Building and FF&E $5,945,000 4. Estimated Value of Land and Approximate Acreage Cost of Land Number of Square Feet (10 acres) 435,600 Cost per Square foot $1.49 Total Land Cost I $649,044 G:\1848\W0RK8HEE\C0PPELL.Wl31 DEC�22-1995, 09:30 FROM QUILL FINANCIAL TO 912143043673 P.04 22 -Dec -95 S. Estimated Value of Inventory (not subject to Freeport Exemption) Percentage of Sales to Various States (1995) Arkansas $5,035,601 12,11% Colorado $5,204,727 12.52% Kansas $6,751,775 16.24% New Mexico $3,409,313 8.20% Oklahoma $5,295,009 12.73% Texas $15,886,459 38.20% Total $41,682,884 100.00% Low Average High 1996 Total Value of Inventory on Hand $3,500,000 $4,500,000 $5,500,000 Percentage of Inventory not Subject to Freeport Exemption 38.20% 38.20% 38.20% Estimated Value of Inventory $1,337,006 $1,719,000 $2,101,000 1997 Total Value of Inventory on Hand $4,200,000 $5,400,000 $8,600,000 Percentage of Inventory not Subject to Freeport Exemption 38.20% 38.20% 38.20% Estimated Value of Inventory $1,6044,400 $2,062,800 $2,521, 00 1998 Total Value of Inventory on Hand $5,040,000 $6,480,000 $7,920,000 Percentage of Inventory not Subject to Freeport Exemption 38.20% 38.20% 38.20% Estimated Value of Inventory $1,92-6,280 $2,475,360 $3,025,440 1999 Total Value of Inventory on Hand $6,048,000 $7,776,000 $9,504,000 Percentage of inventory not Subject to Freeport Exemption 38.20% 38.20% 38.20°x6 Estimated Value of inventory $2,310,336 $2,970,432 $3,630,528 2000 Total Value of Inventory on Hand $7,258,000 $9,331,000 $11,405,000 Percentage of Inventory not Subject to Freeport Exemption 38.20% 38.20% 38.20% Estimated Value of Inventory $2,772,556 $3,564,442 $4,356,710 Note: Annual inventory increases are tied to the 20% expected sales increases. G:11848\WORKSHEEICOPPELL.WB1 LC1r`�G-1��� by .51 t-KUM QUILL F I HRNC I RL TO 912143043673 P.05 22 -Deo -g. 6. Estimated Amount of Annual Sales Subject to State Sales and Use Tax Sams Tax Projection at the same sates lift as 1995 (20°%) Sales Coppell Sales to Percent Subject to Revenue Texas Taxable Sales Tax 01% Year *2 1995 $15,886,459 80.00°% $12,709,167 1996 $19,063,751 80.006 $15,251,001 $152,510 1997 $22,876,501 80.00°% $18,301,201 $183,012 1998 $27,451,801 80.00% $21,961,441 4219,614 1999 $32,942,161 80.00°% $26,353,729 $263,537 2000 $39,530,593 80.00% $31,624,474 $316,245 *1 Texas is slightly more liberal with its exempt organizations than Illinois. However, Illinois does not tax freight and handling charges. Currently, 84°% of shipments to Illinois are taxable. 80% for Texas is a conservative number. *2 The 1 tif96 amount reflected on this schedule is for an entire year of sales. At this point, it is estimated that Quill will begin collecting Texas sales tax on May 1, 1996. Use Tax Two components will drive the use tax assessments at the Coppell facility. The amount below is the expected benefit to Coppell. 1. Consumption of supplies NM 2. Use tax on advertising efforts $5,000 GA1848\W0RKSHEE=PPELL.WB1 TOTAL P.05