Title
Resolution - A Resolution Approving An Economic Development Agreement for US Underwater Services
Requested Action
Approval of Economic Development Agreement for US Underwater Services.
Recommendation
Approval of Economic Development Agreement for US Underwater Services.
Description/History
US Underwater Services, Inc. is relocating their operations to Mansfield. US Underwater Services specializes in commercial diving for offshore and inland inspection, fabrication and repair of underwater structures.
U.S. Underwater will bring a minimum of 62 jobs to Mansfield with an estimated annual payroll of $3.8 million and will transfer approximately $2 million worth of permanent equipment from the Burleson facility to the Mansfield location. They plan to hire additional employees within the next 12 months. Their annual revenue is approximately $25 million.
They will also provide commercial diver training and certification for their employees at this new facility and to do so will need to construct a new 16 ft. tall water tank on the premises. They have negotiated a 5 year renewable lease on a 48,000 sq. ft. building located at 103 Sentry Drive in Sentry Industrial Park. The facility will require approximately $500,000 in improvements.
On September 8, 2009 the MEDC Board voted unanimously (4 to 0) to approve up to $150,000 in assistance for improvements to the building.
Justification
A LOCI report was prepared for this project and it showed an NPV of $36,737 over five years with the $150,000 in assistance, assuming $2 million in equipment, $500,000 in improvements and 62 jobs.
Funding Source
4A
Prepared By
Scott Welmaker, Economic Development