02/22/1999-4A-Minutes-RegularMINUTES: 4A Corporation
February 22, 1999
PRESENT: Joe Skiles, Mike James, Carroll McNeill, Garland Thornton
ABSENT: Frank Ballard
OTHERS
PRESENT: City Administrator Jack Smith, Administrative Secretary Samantha Renz
1. President Joe Skiles called meeting to order.
2. a)
b)
Approve Minutes:
Disbursements
January 25, 1999
A motion was made by Mike James to approve the Consent Agenda.
Seconded by Garland Thornton.
Motion Carried unanimously.
3. Consider and Possible Action on Nucor Incentives.
Joe Skiles indicated he would abstain from discussion, being that he had personal
interest in this item.
City Administrator, Jack Smith, indicated Nucor had come to town last October, they are a
company that manufactures the steel for steel buildings, they looked at property off of Lois
Rd. East. Joe Skiles and his partner own that piece of property. Mr. Smith indicated he had
been told the property would sell for $7500.00 per acre, but the owners of the property have
offered to sell it for $3750.00 per acre.
Mr. Smith indicated they were working with Denton County to offer Nucor some type of
package. He indicated the City of Sanger does not want to give a tax abatement, but Denton
County will offer them a tax abatement.
Mr. Smith indicated the City had a grant-writer, and Nucor will apply for the Texas Capital
Fund Grant. If they get the grant the state will pay for half of the roads, and some of the
other costs, the 4A Corporation may pay for the rest.
Mr. Smith indicated Jeff Krueger and Judge Mosely had already been in contact with the
state concerning the ramp going to Lois Rd.
Mr. Smith indicated Nucor will make a decision by March 4, 1999 as to which city they will
build this new site in. He indicated he had downloaded some information from the internet
concerning the company and in the last nine months they had over four ( 4) billion dollars
in sales.
Garland Thornton asked Mr. Smith what the plan was at this time.
Mr. Smith indicated he did not know how fast they wanted to build, but he knew they
wanted to move quickly, the earliest they can apply for the grant is the end of April.
Garland Thornton asked how how much they anticipated asking for.
Mr. Smith indicated the total cost would be over $500,000.
Discussion concerning utilities and planning for growth.
Discussed location of building site on the property.
Carroll McNeill asked if they had to spend some money prior to receiving the grant if they
could get that money back through the grant.
Mr. Smith indicated they could not.
Discussed what size the building would be, Mr Smith indicated 215,000 square feet.
Discussed revenues into schools and into the city.
Mr. McNeill asked if TNRCC would be involved at all.
Mr. Smith indicated there would need to be some permits that Nucor will get from them.
Mr. McNeill asked how much road they would need put in.
Mr. Smith indicated about 1/4 of a mile.
Discussed type of road, and size of trucks.
Discussed finances, and how the 4A Corporation might go about getting the money to match
the grant.
Discussed benefit to city.
Mr. Smith indicated he wanted to explain everything to them, and let the board make a
decision that they could proceed with the project. He indicated the city can not give away
money or land, they can give tax abatements, or labor and materials, but not money.
Mr. McNeill asked if they could get some type of commitment form the company that they
will be here for a minimum of five to seven years.
Mr. Smith indicated this is a billion dollar company, and most likely they will not build a
building over 200,000 square feet and walk away.
Mike James indicated they should make some type of agreement that if the property is sold
to another company that the 4A Corporation is reimbursed for the value of the land.
Garland Thornton indicate that they realistically could walk away from it any time they
wanted to.
Discussion.
Discussed Grant.
Mr. Thornton indicated that Kim Lacey had been unsuccessful in getting them the grant for
the park, and indicated they should be sure that is who they want to use to write the grant
application for them.
Discussion.
Mike James indicated Ms. Lacy had all the right credentials, the knowledge and contacts.
Mike James indicated as a board they should decide if this is the first project they want to
pursue, and indicated he thought it was a good idea.
Discussion.
Discussed revenues to the city form the business.
Board agreed this was the first project they wanted to pursue.
Garland Thornton moved to pursue the grant for this project.
Mike James seconded.
Motion Carried, Joe Skiles abstained.
4. Any Other Such Matters.
Garland indicated he had received a bond for $20,000.00, the annual premium is $100.00,
and he will leave it with the city.
Discussion concerning grant application and packet.
5. Meeting Adjourned.