Even though the final decision hasn’t been given by Halliburton to accept the incentive package and expand their service operations to Brownfield, over 40 citizens of Brownfield and Terry County attended the City Council meeting, August 8, 2013, to hear the presentation by Brian Kelsey of Civic Analytics about the fiscal impact of the proposed economic development agreement between the City of Brownfield and Halliburton.
The City of Brownfield has finalized and presented their incentive package to Halliburton. All indications show that Halliburton will be expanding, and Partlow said he anticipates that within 2-4 weeks, Hallibuton will make known their full intentions about the expansion.
In the meantime, the City Of Brownfield commissioned Kelsey to prepare a study and report to give citizens a projected estimate of the long-term economic benefits to the community. Kelsey presented a straightforward summary and report on what the economic impact could mean for Brownfield, should Halliburton make their final decision to expand their services here.
A summary of Kelsey’s report, based on a ten-year time span, indicates, “According to information provided by the company, the proposed project is expected to create 125 jobs, with an average wage of $39,500, and $125 million in real and personal property investment between 2014 and 2017. The City of Brownfield and the Brownfield Industrial Development Corporation are proposing $1.8 Million in incentives for the project, which include $1.2 million for water/sewer construction, $450,0000 for rail spur construction, and $150,000 for job creation.” This report was prepared based on data available three months ago, and Kelsey added the last item is no longer part of the incentive package.
“Assuming the company begins operations in 2014 and continues doing business at the proposed location for at least ten years, expected return on investment of the city of Brownfield over the ten-year period is estimated to be at lest $2.7 million.”
According to Kelsey’s report, “The analysis relies on several important assumptions. First, all data supplied by the company is assumed to be accurate.”
“In addition, this analysis assumes the Halliburton facility will be located within the incorporated area of Brownfield and subject to city tax rates. Approximately 30 new households could be created as a result of people moving to Brownfield for the new jobs. This number of families could add an estimated 60 children to the school district. If this estimate hold true, then the remaining 75 percent of the 125 new jobs could be filled by existing residents of Brownfield.”
BIDCorp Director David Partlow and Kelsey both emphasized these numbers are conservative, and the impact on the City could be far greater.
“It’s important for communities to know what the return on investment will be if they’re going to offer incentives to a company,” said Kelsey. “Even when using an extremely conservative approach in the cost-benefit analysis done on behalf of BIDC for this project, it appears to be a win-win for the City of Brownfield and the company.”
Knowing the long-term impact would definitely benefit Brownfield and Terry County, the City Council, BIDCorp Director David Partlow, and citizens await Halliburton’s final decision to accept the incentive package and finalize their expansion plans.
For complete reports, see links below, or contact David Partlow at City Hall, 637-4547.
Courtesy of TownTalkRadio.com