Resolution - Business Development: Consider a resolution authorizing a program or expenditure of the Lubbock Economic Development Alliance, to be provided to BASF Corporation, Inc., pursuant to Section 501.073 of the Texas Local Government Code.
Item Summary
BASF Corporation is a foreign, for-profit corporation currently conducting business in the City of Lubbock. They are planning to expand and remodel their existing facility, and to relocate and consolidate assets in California, Arizona, and Texas to their location at 1405 East Loop 289, Lubbock, Texas. This expansion is anticipated to result in the creation of 23 primary jobs, with a target annual compensation of $1,380,000, or a total of $6,900,000 over five years. The total capital investment is estimated to be $1,250,000.
The Lubbock Economic Development Alliance (LEDA) Board of Directors voted to incentivize BASF Corporation with the following:
$161,000 in reimbursement for the cost of the irrigation equipment on approximately 54.8 acres of land
$330,000 in reimbursement for the cost of moving BASF's current field trial operations onto the Carlton Property
54.8 acres of land, also known as the Eppes Property, which has an estimated value of $6,875 per acre, or $376,750
Conveyance of the Carlton Property, which has an estimated value of $5,472 per acre, or $511,632
The LEDA Board of Directors approved these incentives at their October 27, 2021 Regular Board Meeting, and recommend approval by the Lubbock City Council.
Fiscal Impact
The Lubbock Economic Development Alliance (LEDA) Board of Directors voted to incentivize BASF Corporation with a total capital investment of $1,250,000 as described in the Item Summary.
Staff/Board Recommending
Jesica McEachern, Assistant City Manager Lubbock Economic Development Alliance Board of Directors