On August 24, 2023, the Executive Director is requesting authorization to enter an Economic Development Performance Agreement (the "Agreement") with Boomerang and Lovett.  Under the Agreement, Boomerang-Lovett agreed to construct wastewater infrastructure improvements, to be reimbursed by the SEDC when the development performs.  The cost of the infrastructure is $2,500,000 with a portion of this agreement dedicated to easement acquisition.  Boomerang's development is slated to be a 300,00 square foot cold storage and warehouse facility, situated on 25.13 acres on FM 2252 with a minimum appraisal district assessed value of $40,000,000.  Lovett's development is planned as a 500,000 square foot warehouse project, multiple buildings situated on 43 acres of land with a minimum appraisal district assessed value of $35,000,000.

The easement acquisition portion is estimated to cost the developer $365,972.  They are down to only one easement left to acquire.  If the unlikely event that the developer can't obtain the easement, and the city or SEDC chooses not to engage in imminent domain to get the easement, the developer will be paid what money he is out with acquiring the easement and the developer will transfer the easements acquired to the city.  That is the only wat that the developer will be paid without completing the sewer line.  The incentive in its entirety is performance based and will not be paid until the development is in completion.  Payable in two installments 55% when a certificate of occupancy for one shell building is completed and 45% when a lease is signed for an aggregate of 75% of the project.

This is a complex project.  The property taxes on the two developments alone will be approximately $300,000.00 annually.  Depending upon the use, the jobs will be in the neighborhood of 1 per 2,250 square feet, making it approximately 350 jobs on the low end.  There will also be personal property taxes on F&E when businesses go in along with inventory.  The filling in of a large portion of our city with wastewater availability.  Two years ago, the EDC paid for a study by Kimly Horn to look at this wastewater shed.  This is the region that will gravity feed the undeveloped portions of the city north of IH-35.  The line, once completed will be the tail end of the Town Creek Sanitary Sewer main, and will fill in a large portion of wastewater shed to allow for an entire region of the city to open up to Sanitary Sewer.

The SEDC has identified job creation and infrastructure as their highest priority in their Incentive Policy.

The expenditures associated with this action will be $2,500,000 paid from available SEDC funds.

On August 24, 2023, the SEDC Board of Directors will vote unanimously to approve the SEDC Resolution No. 2023-10 authorizing the Performance Agreement with Boomerang and Lovett.