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HomeMy WebLinkAboutMinutes - City Council - 2000-05-18 - Special Meeting 99 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California May 18, 2000 10:00 a.m. I The meeting was called to order by Mayor Anderson with the following Council Members present: Cibula, Kight, and Pohlmeyer. Council Member McGeorge was absent. Also present were City Manager Warren, Assistant City Manager Perry, Deputy City Manager Starman, City Attorney Wingate, Economic Development Director Mitchell, and City Clerk Strohmayer. RESOLUTION - re Jobs Credit and Block Grant Agreement with Budget Group, Inc. (BGI), for Ryder Truck Reservation Facility (E-050) City Manager Warren introduced Economic Development Director Mitchell for a presentation to the City Council regarding a proposal to enter a Jobs Credit and Block Grant Agreement with BGI for a Ryder Truck reservation facility at 20 Lake Boulevard. He credited the cooperation of many groups, including the County of Shasta, the Greater Redding Area Chamber of Commerce, the Cities of Anderson and Shasta Lake, the Shasta Builders' Exchange, the Private Industry Council, and particularly the Economic Development Corporation of Shasta County (EDC), with making this agreement possible. The reservation facility is anticipated to provide over 300 jobs and an estimated $9 million annual payroll to the local economy. I Economic Development Director Mitchell provided an overview of the Report to City Council dated May 16, 2000, regarding a proposed Jobs Credit and Block Grant Agreement with BGI for a Ryder Truck reservation facility located at 20 Lake Boulevard. He stated that BGI is prepared to sign a ten-year lease on approximately 38,000 square feet of past retail space located at the comer of Market Street and Lake Boulevard which has been vacant for more than two years. BGI plans to perform approximately $1.8 million in tenant improvements to the facility, including the construction of a new parking lot off Masonic Drive so that employee parking will not impact other retail stores within the shopping center. Mr. Mitchell related that annual payroll at the reservation facility is expected to exceed $9 million, with entry level wages between $8 and $10 per hour, and an estimated 25 percent add on for benefits. Mr. Mitchell recalled that on August 9, 1999, the City Council conceptually approved the BGI project with the following incentive programs: 1. Community Development Block Grant (CDBG) funds in the amount of $225,000 will be provided to BGI for uses falling within the CDBG guidelines, including interior renovations. BGI will be required to create a minimum of200 full-time jobs within the first year and maintain the positions for f i v,e years. Should BGI fail to create or maintain these positions, they will be required to reimburse the City on a pro rata basis. The Electric Utility Economic Attraction Service program will be offered to BGI if their monthly maximum demand is expected to exceed 100 kW for three months out of a consecutive 12-month period. In exchange, BGI will receive a 25 percent electric rate reduction for three years. This agreement does not require Council approval at this meeting. Job Credit and Fee Deferral Program. BGI will receive up to $1,000 in fee credits for each full-time job created. These credits can be used for utility connection charges and/or building and planning related fees. I 2. 3. 05/1812000 100 It is the recommendation of the Economic Development Director that City Council adopt a resolution approving the Jobs Credit and Block Grant Agreement with BGI for a Ryder Truck reservation facility. Mary Lou Johnson, Vice President of Reservation Support Services for BGI, said that their staff performed a site search and were impressed with the City of Redding. Ms. Johnson provided a 25-year history ofBGI's operation and an overview of the company's struc):ure and goals. I Ms. Johnson stated that BGI wants to work with people in the community and provide a good work environment. The facility, which she termed a "virtual call center," will handle calls mainly of an incoming nature. She predicted that call centers will remain a viable business due to rising internet volume. The facility will initially handle at least 5 to 6 million calls. Call Center Program Director Tim Straka of BGI cited the facility's location, available housing, amenities, and local fiberoptic systems as reasons the company chose to locate in the City of Redding. He said that Redding has a strong labor market and is also the most attractive city they looked at. Mr. Straka explained that BGI will invest $6.6 million in start- up costs, with the renovation project beginning July 5, and by October 1, it will be the newest state-of-the-art call center with 71 miles oftelephone cable. He indicated the call center will be primarily for in-bound calls, with room to expand should the market warrant. Employees will receive base pay plus an hourly pay-for-performance incentive. Mr. Straka relayed the various job opportunities and educational qualifications. Don Perry, Executive Director ofthe Private Industry Council, applauded this agreement as a start to attracting a broad range of business so that people can enter the market and progress to their future ability. In his opinion, efforts should be made to recruit all types of businesses to provide advancement opportunities to higher-paying jobs. MOTION: Made by Council Member Kight, seconded by Council Member Pohlmeyer, that Resolution No. 2000-100 be adopted, a Resolution of the City Council ofthe City of Redding approving the Jobs Credit and Block Grant Agreement between the City of Redding and Budget Group, Inc. Voting was as follows: I Ayes: Noes: Absent: Abstain: Council Members - Cibula, Kight, Pohlmeyer, and Anderson Council Members - None Council Members - McGeorge Council Members - None Resolution No. 2000-100 is on file in the office of the City Clerk. Mayor Anderson welcomed Budget Group, Inc., to the City of Redding. ADJOURNMENT There being no further business, at the hour of 10:45 a.m., Mayor Anderson declared the meeting adjourned. APPROVED p~cJL~ ayor I ATTEST: LL~ City Clerk / . 05/18/2000