City offers $38K incentive to company
Agreement tied to creation of 44 jobs
The Yuma City Council approved an agreement with MPW Industrial Services that includes a $37,500 incentive tied to the creation of 44 jobs. The company announced plans to bring a water regeneration plant to Yuma.
The vast majority of jobs will be local hires, according to Jeff Burt, the city’s economic development administrator.
On Wednesday, the council voted 6-0 to approve the economic development and deferral agreement with the company, which has its headquarters in Hebron, Ohio. The company plans to initially construct a 30,000-squarefeet facility, a capital investment of $13.6 million for land, building and equipment, and create 44 fulltime jobs with an annual average salary of $47,200 within 18 months after the start of operations.
At 50 percent construction of the facility, the city agrees to pay the incentive if the target employment of 44 jobs is achieved within 18 months of operations and maintained for at least one year. It is also subject to city verification.
During Tuesday’s work ses- sion, the council briefly touched on the agreement, with Deputy Gary Knight questioning whether the 44 full-time jobs noted in the agreement would be local hires or if the employees would come with the company. Before the discussion, Mayor Doug Nicholls recused himself, citing a potential conflict.
Burt said that to his knowledge the company would only bring one person and the rest would be hired locally.
MPW provides a variety of industrial services related to water purification, industrial cleaning and facility, environmental and container management to public and private clients throughout North America.
MPW’s in-house engineers and technicians also fabricate cus-
tomized proprietary tooling and mobile operating systems to accommodate specialized industry requirements.
An economic impact report prepared by the Greater Yuma Economic Development Corporation identified direct and indirect benefits that MPW should have on the community from 2017 through 2020. Over this four-year period, the report shows $445,072 in direct estimated new local tax revenues, including $123,690 in direct property and sales taxes to the city.
The county and schools should receive more than $320,000 from direct tax revenues during the four years. Total economic impact, including secondary impacts to local businesses, is estimated at more than $31.7 million.
“The report primarily captures the anticipated first three years of operations, but the positive economic impacts associated with new job creation, tax revenue and economic multiplier impacts to the Yuma community will continue for as long as MPW operates its facility,” a staff report notes.
The agreement also provides for reimbursement of the city transaction privilege tax paid on new construction up to $85,000.
The agreement defers water capacity charges with an initial payment of $20,000 at the time the certificate of occupancy is issued and four annual installments of $18,760 to the city. It waives the per-acre water system development charge and sanitary sewer interceptor charge.
Based on the water analysis data provided by MPW, the wastewater stream will not exceed the concentration of typical city domestic wastewater. Therefore, for the first five years from the date the facility begins operation, the city will suspend charges for biochemical oxygen demand (BOD) and total suspended solids (TSS) on the condition that BOD does not exceed 350 milligrams per liter and TSS does not exceed 500 mg/l. Any excess BOD or TSS above those levels would be billed at the current rate.
After five years, all BOD and TSS charges will be billed at a reduced rate of 30 cents a pound and after 10 years, the current rate for any BOD or TSS discharges applies.
The staff report points out that the agreement still needs the anticipated date of completion of the facility, the date of connection to the city water and wastewater systems, and may require minor changes concerning the names of the companies affiliated with MPW.
In other action, the council also authorized City Administrator Greg Wilkinson to execute three grant agreements totaling $82,000 with the Arizona Governor’s Office of Highway Safety for highway safety projects.
GOHS solicited grant proposals from state and local agencies for projects relating to all aspects of highway safety for the 2018-2019 federal fiscal year, accord- ing to a staff report. Specifically targeted areas include DUI and impaired driving enforcement programs as well as selective traffic enforcement programs.
The Yuma Police Department has been awarded funds through three separate grant awards to purchase equipment and cover overtime expenses associated with the programs.
Two of the grants awarded to the city totaled $35,000 and will be used to cover the costs for overtime pay associated with DUI/impaired driving enforcement special details ($20,000) and selective traffic enforcement programs ($15,000).
The third grant totaled $47,000 and will be used to buy one police vehicle to enhance the target programs throughout the city.
All funds for the three grants must be spent or returned by Sept. 30.