Mar 24, 2025 Economic Development Corp. (Type A)

[*This meeting is joined in progress]

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OUR AGENDA. THANK YOU. FIRST ITEM ON OUR AGENDA TONIGHT IS CITIZEN APPEARANCES.

THIS IS A POINT IN THE MEETING WHERE ANYONE THAT'S IN ATTENDANCE THAT WOULD LIKE TO SPEAK TO THE BOARD ON AN ITEM THAT'S NOT ON THE AGENDA CAN DO SO.

I SEE NO SUCH REQUESTS FROM THE AUDIENCE. SO WE'LL MOVE ON TO ITEM THREE, WHICH IS FIRST ITEM THREE A IS TO CONSIDER AND TAKE POSSIBLE ACTION ON MINUTES FROM THE

[3.A. Consider and take possible action on the minutes from the January 21, 2025 Economic Development Corporation (Type A) meeting. (Staff Contact: Monica Solko, Deputy City Secretary) ]

MEMBERS, I SEE THAT YOU HAVE THE MINUTES IN FRONT OF YOU.

IF YOU'VE HAD A CHANCE TO LOOK AT THEM, I'LL TAKE A MOTION. I'LL MOVE TO APPROVE THE MINUTES.

SECOND. ALL RIGHT. I HAVE A MOTION TO APPROVE FROM RUSSEL.

SECOND BY SCOTT. ALL THOSE IN FAVOR SIGNIFY. AND THAT IS A UNANIMOUS VOTE.

[3.B. Consider and take possible action on a resolution authorizing a land sale contract between Burleson 4A Economic Development Corporation and Paris Baguette U.S.A. for a 7-acre tract located in Highpoint Business Park on Vantage Drive near FM 917. (Staff Contact: Alex Philips, Economic Development Director)]

THIS WILL BE PRESENTED BY ALEX PHILLIPS, ECONOMIC DEVELOPMENT DIRECTOR.

GOOD EVENING. BOARD PRESIDENT AND BOARD MEMBERS.

ALEX PHILLIPS, ECONOMIC DEVELOPMENT DIRECTOR FOR THE CITY OF BURLESON. TONIGHT, I COME TO YOU WITH A CONTRACT FOR A LAND SALE FOR A SEVEN ACRE TRACT.

THAT WAS A PROPERTY THAT WAS AN ADDITIONAL TAX REINVESTMENT ZONE.

IT WAS PART OF THAT TRACK THAT WE DID THE TAX REINVESTMENT ZONE ON THE SECOND TAX ABATEMENT POLICY PARIS BAGUETTE HAS EXERCISED THE FIRST RIGHT OF REFUSAL TO PURCHASE THE SEVEN ACRE TRACT FOR THE FULL DEVELOPMENT FOR THEIR MANUFACTURING FACILITY.

PURCHASE PRICE IS $1.219 MILLION, WHICH IS THE SAME PER FOOT PRICE AS WE PAID FOR THE TEN ACRES THAT'S IN CONSIDERATION. THE DUE DILIGENCE THAT WAS COMPLETED BY THE EDC WILL BE SHARED WITH PARIS BAGUETTE.

THAT WAS A PHASE ONE AND A GEOTECH STUDY THAT WE DID ON THE TEN ACRES BEFORE WE PURCHASED IT.

WE WILL SHARE THOSE DOCUMENTS WITH THEM. CLOSING ON THE PROPERTY WOULD HAPPEN WITHIN 30 DAYS OF AUTHORIZATION OF THIS CONTRACT.

I CAN TELL YOU NOW, WE'RE SCHEDULED TO CLOSE AT 1:00 ON WEDNESDAY.

TO CLOSE ON THIS SO THEY ARE READY TO MOVE. THE EDC WILL STILL RETAIN OWNERSHIP OF THE THREE ACRE PARCEL THERE.

THERE IN THE CORNER THAT YOU SEE ON THE MAP FOR ANY FUTURE DEVELOPMENTS THAT MAY COME, COME ABOUT.

SO, TONIGHT IS REQUESTED ACTION TO APPROVE THE RESOLUTION TO AUTHORIZE STAFF TO SELL THE PROPERTY TO PARIS BAGUETTE OR DENY THE RESOLUTION HERE TO ANSWER ANY QUESTIONS.

ALEX, I ONLY HAVE ONE QUESTION. THAT CLOSING IS AT 1:00 ON WEDNESDAY OR THURSDAY.

I HAVE IT ON MY CALENDAR AT THURSDAY. THURSDAY.

SORRY. THURSDAY. OKAY. NOTHING TO DO WITH THE WITH THE ITEM.

YES. I JUST WANT TO CLARIFY THAT WHILE WE'RE HERE. SORRY.

ANY QUESTIONS? OKAY. WE'VE PRETTY MUCH RUN THIS SUBJECT UP AND DOWN THE FLAGPOLE A FEW TIMES, SO IF Y'ALL ARE READY TO MAKE A MOTION, I'LL TAKE ONE.

I'LL MOVE TO APPROVE THE SALE. OKAY. ARE WE USING THE.

ALL RIGHT. SO I WILL ONLY USE THE VOTING FOR COUNCIL.

IT'S NOT SET UP FOR ANY OTHER COMMITTEES. WE ALWAYS USE THE HAND.

THANK YOU. AND I HAVE A MOTION FROM ADAM TO APPROVE.

IS IT THE SECOND FROM ALEXA? OKAY. ALL THOSE IN FAVOR? AND THAT MOTION PASSES BY A UNANIMOUS VOTE. THAT BRINGS US TO ITEM THREE C.

[Items 3.C. & 3.D.]

EVEN THOUGH THE NAMES ARE NOT THE SAME THAT WE'RE DEALING WITH HERE ONE IS AN OWNERSHIP ENTITY FOR THE OTHER ENTITY.

SO, I'M GOING TO READ NUMBERS THREE C AND NUMBER THREE D.

AND THEN ALEX IS GOING TO PRESENT THIS FOR US. SO THREE C IS TO CONSIDER AND TAKE POSSIBLE ACTION ON A RESOLUTION AUTHORIZING A LAND SALE CONTRACT BETWEEN BURLESON FOR A ECONOMIC DEVELOPMENT CORPORATION AND 1451 LLC FOR A SEVEN ACRE TRACT LOCATED IN HIGH POINT BUSINESS PARK ON VANTAGE DRIVE NEAR CIRRUS DRIVE.

ITEM THREE D IS TO CONSIDER AND TO TAKE POSSIBLE ACTION ON A PERFORMANCE AGREEMENT BETWEEN THE BURLESON FOR ECONOMIC DEVELOPMENT CORPORATION AND KMP PLUMBING, LLC, INC. FOR A 20,000 SQUARE FOOT SERVICE CENTER AND CORPORATE HEADQUARTERS FACILITY LOCATED ON VANTAGE DRIVE IN HIGH POINT BUSINESS PARK. STAFF PRESENTER WILL BE ALEX PHILLIPS.

GOOD EVENING AGAIN, BOARD MEMBERS. HERE TO PRESENT PROJECT MARIO BROTHERS.

WE WERE ABLE TO NAME THAT ONE IN HOUSE, SO WE CAME UP WITH A GOOD ONE.

SO BUT IT IS KMP PLUMBING, HEATING AND AIR. THEIR CORPORATE OFFICE AND SERVICE COMPANY IS LOCATED IN MANSFIELD AND THEY SERVICE RESIDENTIAL, COMMERCIAL AND INDUSTRIAL PROJECTS. THEY'VE BEEN FAMILY OWNED AND OPERATED SINCE 1985.

THE COMPANY CURRENTLY EMPLOYS 73 PEOPLE IN THE MOVE AND IN EXPANSION WOULD CREATE A 30 ADDITIONAL JOBS WITH AN AVERAGE WAGE OF OVER 60,000 A YEAR.

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THE COMPANY WOULD PURCHASE THE SEVEN ACRE SITE THAT WE'VE HAD A COUPLE DIFFERENT CONTRACTS ON OVER THE LAST 10 TO 15 YEARS THAT HAVE NOT PANNED OUT, AND FOR GOOD REASON, BECAUSE I THINK IT'S WAITING ON A FAMILY OWNED AND OPERATED FACILITY.

THAT PART OF THE PARK IS ALL FAMILY OWNED AND OPERATED WITH STEWARD INDUSTRIES AND ANSON.

IT'S ALL FAMILY OWNED AND OPERATED. SO IT'S OUR LITTLE FAMILY SECTION OF THE PARK, SO IT'S REALLY COOL.

THE COMPANY WOULD BE EXPANDING TO OFFER ELECTRICAL SERVICES ONCE THEY GET HERE.

THEIR MISSION IS IN HOPE IS THAT THEIR SERVICES HAVE A POSITIVE IMPACT ON THE COMMUNITY, IMPROVE THE QUALITY OF LIVING FOR INDIVIDUALS THROUGH THEIR COMMITMENT TO CHARACTER, HARD WORK AND INTEGRITY. SO, I THINK IT'S A PERFECT FIT FOR THE CITY OF BURLESON.

SO, SOME OBLIGATIONS FOR PROJECT MARIO BROS. THEY WOULD CLOSE ON THE PROPERTY BY THE END OF MAY, SUBMIT THE BUILDING CIVIL PLANS BY THE END OF JUNE OF THIS YEAR, COMMENCE CONSTRUCTION BY THE END OF OCTOBER OF THIS YEAR, POUR THE FOUNDATION BY THE END OF FEBRUARY OF NEXT YEAR, AND COMPLETE THE CONSTRUCTION BY OCTOBER NEXT YEAR.

WITH THAT $6 MILLION CAPITAL INVESTMENT, THEY SHOULD OPERATE THE FACILITY'S PLUMBING, HEATING AND AIR BUSINESS AND DISTRIBUTOR, AND MAINTAIN THE FACILITY AS ITS SOLE CORPORATE HEADQUARTERS FOR AT LEAST FIVE YEARS AFTER THE ISSUANCE OF THE CO AND WITHIN 45 DAYS OF THE ISSUANCE OF THE CO, THE COMPANY SHALL HAVE AT LEAST 70 FULL TIME EMPLOYEES AT THE FACILITY AND NO LATER THAN THE EXPIRATION OF THE TERM, WHICH THE TERM IS TEN YEARS. THE COMPANY SHALL HAVE HIRED THE ADDITIONAL 30 NEW FULL TIME EMPLOYEES AT THAT FACILITY.

SO THE INCENTIVES FOR FROM THE EDC $400,000 CASH GRANT, ONCE THEY GET THEIR BUILDING PERMIT, $400,000 ONCE THEY HAVE COMPLETED THEIR FOUNDATION POUR AND INSPECTION.

$400,000, ONCE THEY GET THE CO FOR THE BUILDING.

AND THEN WE'LL REIMBURSE ANY AND ALL DEVELOPMENT FEES, EXCLUDING IMPACT FEES, UP TO $100,000 AFTER THE CO HAS BEEN ISSUED.

AND THEN A CASH GRANT IN THE AMOUNT OF 200,000.

ONCE THE DEVELOPER IS HIRED, THE ADDITIONAL 30 FULL TIME EMPLOYEES.

SO THIS IS THE PROFORMA SUMMARY. YOU CAN SEE IN YEAR FOUR WE START MAKING OUR MONEY BACK IN THE 4A TEN YEAR RETURN IS 97%.

THE 20 YEAR RETURN IS 255%. I WILL POINT OUT HERE THAT THEY WILL BE A LARGE SALES TAX USER IN OUR COMMUNITY.

RIGHT NOW IT'S PROJECTED ABOUT 120,000 A YEAR.

WITH THIS BUILDING AND THEM EXPANDING INTO ELECTRICAL SERVICES, THAT NUMBER WILL ONLY RISE.

SO WE LOOK FOR A LOT OF POSITIVE IMPACT WITH THESE GUYS COMING TO THE COMMUNITY.

SO TONIGHT THERE'S TWO MOTIONS OR TWO RECOMMENDATIONS TO APPROVE THE PERFORMANCE AGREEMENT WITH KMP TO DEVELOP A NEW SERVICE CENTER AND CORPORATE HEADQUARTERS AT HIGH POINT BUSINESS PARK, AND THEN APPROVE THE RESOLUTION AUTHORIZING THE LAND SALE CONTRACT.

HERE TO ANSWER ANY QUESTIONS. QUESTIONS, ANYONE? AND THERE IS REPRESENTATIVES FROM KMP PLUMBING HERE TO ANSWER ANY QUESTIONS EVEN THOUGH THEY DON'T REALLY WANT TO.

HOW TIED TOGETHER ARE THE TWO ITEMS? THE LAND SALE CONTRACT AND THE PERFORMANCE AGREEMENT DEPEND ON ONE ANOTHER. SO WHAT HAPPENS IF THE LAND TITLE TRANSFERS AND THEN THE PERFORMANCE AGREEMENT STALLS? WE WOULD HAVE THE ABILITY TO REPURCHASE THE PROPERTY FROM CMP.

BUT THEY'VE THERE. I SEE WHAT YOU'RE ASKING FROM THE REPURCHASE POSSIBILITY, BUT THAT IS SOMETHING THAT WE DIDN'T CONSTITUTE IN THE PERFORMANCE AGREEMENT TO PUT THAT CLAUSE IN THERE.

WE FELT A LITTLE BIT DIFFERENT ABOUT THIS ONE THAN WE HAD THE OTHERS IN THE PAST.

I KNOW THIS IS A VERY POSITIVE THING, AND I AGREE WITH EVERY POINT YOU MADE ABOUT THIS BEING JUST THE RIGHT FIT FOR THIS PIECE OF PROPERTY THAT'S BEEN AVAILABLE SINCE 2008 OR 2010, AND IT JUST NEVER GOT QUITE TO THE FINISH LINE.

THIS WOULD BE WONDERFUL. THIS WOULD BE BY FAR THE BEST FIT FOR THIS PIECE OF PROPERTY FROM ANYTHING WE'VE CONSIDERED IN THE PAST.

AND YES SIR, I WOULD LOVE TO SEE THIS GO ALL THE WAY THROUGH.

SO I'M FOR IT. ANY OTHER COMMENTS? OKAY. THAT'S EASY.

THEN WE'LL TAKE A MOTION. MAKE A MOTION TO APPROVE.

OKAY. YOU MAKE A MOTION TO APPROVE THREE C, THE SALE OF THE LAND.

YES. OKAY. WE NEED TWO VOTES FOR TWO SEPARATE MOTIONS.

I'LL SECOND. OKAY, SO I HAVE A MOTION BY ANDERSON.

SECOND BY BOEDEKER TO APPROVE THE LAND SALE. ITEM THREE C.

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NOW I'LL TAKE A MOTION ON 3D, THE PERFORMANCE AGREEMENT.

I'LL MOVE TO APPROVE THE PERFORMANCE AGREEMENT.

A SECOND. OKAY, I HAVE A MOTION BY ADAM AND A SECOND BY PHIL TO APPROVE THE PERFORMANCE AGREEMENT.

ALL THOSE IN FAVOR. AND THAT MOTION PASSES BY UNANIMOUS VOTE.

THANK YOU, AND WELCOME TO BURLESON KMB. GET GOING GUYS, YOU SHOULD HAVE THE PLUMBING IN THE GROUND BY NOW.

THAT'S WHAT Y'ALL DO. THEY HAVE THEIR PRE-DEVELOPMENT MEETING WEDNESDAY. OKAY, OKAY, NOW WE'RE TALKING.

GOOD DEAL. WELCOME TO BURLESON. THANK YOU FOR YOUR INTEREST HERE. AND WE'LL BE AS GOOD A PARTNER TO YOU AS WE CAN BE.

AND GLAD TO HAVE YOU. THANK YOU. ALL RIGHT. NEXT UP ON OUR AGENDA IS ITEM FOUR, BOARD REQUESTS FOR FUTURE AGENDA ITEMS. I SEE NONE. IS THERE A NEED FOR EXECUTIVE SESSION? THERE IS NO NEED. ALL RIGHT, SO AT THAT TIME, WE WILL CONCLUDE THE MEETING AT 4:43.

* This transcript was compiled from uncorrected Closed Captioning.