Council approves incentive package

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November 11, 2009

Vote will bring DeSoto-based Howard Measurement to Athens

By Lauren Ricks Associate Editor The Athens Daily Review Wed Nov 11, 2009, 08:20 PM CST

The Athens City Council put out the welcome mat to a north Texas business Monday night.

The council voted to approve an incentive package for Howard Measurement proposed by the Athens Economic Development Corporation at its regular session.

Howard Measurement is a natural gas measurement processing company currently based in DeSoto and Oklahoma City, Okla.

AEDC Board of Directors Chairman David Daniels said at a previous meeting that it is owned by Allen and Pam Hobgood. He said the company has been in business for 30 years, and was purchased by the Hobgoods in 2002.

Daniels said the owners have already sold the facility in DeSoto, and are moving into a temporary facility in Athens. He said the company plans to build a 4,000 to 6,000 square-foot facility that will also have a gas-testing lab.

“The projected payroll for all of the jobs is expected to be about $790,000, with the average salary being around $46,000,” he said.

Daniels said the proposed incentive package includes:

• one acre of land in the Athens Industrial Park;

• a construction-completion incentive grant of $40,000;

• an employment grant of $20,000 to be granted at the end of the first year of operation. Base employment will be 10 employees. AEDC will pay an additional $2,000 per employee over 10 employees;

• an employment grant of $15,000 to be granted at the end of the second year of operation. Base employment will be 10 employees. AEDC will pay an additional $1,500 per employee over 10 employees.

AEDC President/CEO Brian Malone said the 2-year payment structure is designed to protect the corporation. He said Howard Measurement will receive payments based on performance.

“We need to have a policy flexible enough to attract businesses, new and existing, to town,” Malone said.

He said the AEDC could offer incentive packages to businesses with one up-front payment, but it would be difficult for the corporation to retrieve funds from a business if targets aren’t met.

City Administrator Pam Burton said the previously reported budget for the incentive package was inaccurate. She said the AEDC’s annual budget is $1,816,590.

“The incentive package is not near $1.8 million,” Burton said.

The council also:

• approved the Flood Damage Prevention Ordinance repealing Ordinance No. A-942, Ordinance No. 7-87 and Ordinance No. 33-91. Burton said the change is a statutory requirement for the city to be covered under the Flood Control Insurance Act;

• authorized an application to the Texas Department of Transportation Aviation Division for an Routine Airport Maintenance Program Grant.

Crecelius said the grant would cover 50 percent of the cost to install a video surveillance system at the Athens Municipal Airport. The system will cost $15,000.

He said the city can also purchase a system for $10,000 to monitor take-offs and landings at the airport under the grant. Crecelius said the recommendation is to apply for $25,000.

“We are asking for a little contingency money,” he said.

Crecelius said the city will not be required to spend the full amount it applies for;

• approved the reappointment of AEDC Board Members David Daniels, W.P. Drumgoole, Bob Gould and Pat Wallace. Each member will serve another 2-year term;

• approved the reappointment of Henry Ashford and Frances Walker to a second term to the Athens Housing Authority; and

• discussed the selection of the Director to the Board of the Neches and Trinity Valleys Groundwater Conservation Board (NTVGCD).

Burton said the position is filled on a rotating basis by the most populous municipalities in each of the three counties within the District area.

She said the person can be a private citizen or a city employee, and will serve a 2-year term beginning on Jan. 1, 2010. The NTVGCD meets once a month in the District office, at 212 S. Main St. in Jacksonville.

Athens Mayor Randy Daniel said the council is looking for any interested citizens to fill the position.

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