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
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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
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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