Title
Consider a memorandum/resolution approving a Chapter 380 Economic Development Incentive Agreement with Dongjin Semichem Texas, Inc. for reimbursement of a portion of personal property taxes for up to ten years in an amount not to exceed $435,999.
Summary
DATE: November 8, 2022
TO: Kent Cagle, City Manager
FROM: Holli C. Clements, City Attorney
SUBJECT: Chapter 380 Economic Development Incentive Agreement
BACKGROUND AND FINDINGS:
The City of Killeen has in place a Chapter 380 Economic Development Program designed to promote local economic development and to stimulate business and commercial activity in the City.
The Killeen Economic Development Corporation (KEDC) entered into discussions and executed a performance measures agreement with Dongjin Semichem Texas, Inc. (Dongjin) to construct improvements and establish business operations at the Killeen Business Park. Dongjin will blend chemical solutions for a well-known international technology corporation. The establishment of Dongjin's business operations will advance the City's interests by creating jobs and increasing tax revenues.
Dongjin agrees to the following requirements:
* To make a capital investment of at least $70 million at the Site within two years of Closing, with at least $1.5 million devoted to acquisition costs for the Site, $30 million devoted to construction of the Facilities, and $38.5 million devoted to acquisition and installation of furniture, fixtures, and equipment at the Site (to include external tanks and state-of-the-art processing equipment).
* To create at least 17 new Full-time Equivalent jobs at the Site by the first anniversary of Commencement of Operations, and to maintain those jobs until the 10th anniversary of Commencement of Operations. Any employee transferring from another business owned or operated by Company or an Affiliated Entity in the City may not be considered a new job.
* For at least 10 years following Commencement of Operations, to pay a...
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