Print
E-mail
Comment
Rate
MDC approves lease agreement with aviation company
 |
Officials: This is the first of many steps that must come about to finalize deal.
by Courtney Bacalso
Midland Reporter-Telegram
The Midland Development Corp. voted Monday to approve its largest deal to date, a lease and economic development agreement worth nearly $23 million to propose to Dean Baldwin Painting, L.P.
According to the lease agreement, the aircraft strip and paint services company would lease three hangars at Midland International Airport for the next 20 years.
"This is one of many steps that has to come about," said Doug Henson, chairman of the MDC board. "It is in no way official yet. We still need the approval from the company and the City Council."
The MDC would spend an estimated $22.8 million for the construction and improvements needed for the facilities -- a portion of which would come from the funds they already have on hand and the rest would be financed. Any construction costs exceeding that would be added to the monthly rent.
Before the deal with the Texas-based company can be finalized, the agreement also will need the City Council's approval.
The company will pay about $15,832 in rent for the 46,000 square-foot AMI Hangar. The two other hangars, which total 121,250 square feet, would be rented for a sum of about $41,730.
Rent would increase every four years, the agreement states.
However, the company will not have to begin paying rent for the AMI Hangar until they are allowed to move into the two other hangars, city attorney Keith Stretcher said.
The company, according to the agreement, must create at least 200 full-time jobs, which will result in annual wages of $6 million, by October 2011.
According to documents previously obtained by the Midland Reporter-Telegram, wages may range from "$8.75 to $18 per hour for hourly workers, and $40,000 to $65,000 per year for salaried managers."
According to the documents, the jobs could add $20 million in property values and nearly $700,000 to residential property tax values.
"I view this as a first step in solidifying a logical economic engine for Midland that could help offset the decline in the production of oil and gas," Henson said.
The company could become an anchor business for an aviation cluster in Midland, said Mike Hatley, vice president of economic development.
"Typically in our industry, the first one is the most expensive," Hatley said referring to cost of refurbishing and constructing the hangars. "But as soon as we bring in the industry, one begets the other."
If successful, this would be a move in the direction of diversifying Midland's economy -- which current corporation board members and city officials have said is among their priorities.
With the hangars being MDC-owned, the report states they would be worth an estimated $30 million after 20 years.
Hatley said the cost to renovate and refurbish the facilities will not affect citizens tax rates.
Officials said even if the deal isn't successful, the demand for the hangar space at the airport is high so finding a tenant would not be difficult.
Several months ago, the city accepted three bids from companies interested in leasing AMI Hangar. Instead, the bids were returned to the companies unopened because of the brewing deal with Baldwin Painting, officials said.
Hatley said he received an inquiry Monday from another company interested in the facility.
MDC officials said they have been in constant talks with Baldwin Painting since January.
Baldwin Painting had been the primary paint provider for 35 years at the Miami International Airport until 2003.
While its corporate headquarters is now in Bulverde, Baldwin Painting previously has been referred to as a New Mexico-based company for its operational facility in Roswell which began in 1999.
Its operations also expanded to San Antonio where they were awarded a long-term contract with San Antonio Aerospace. The company also dispatches its mobile crew to anywhere in the United States.
The company currently is looking at Midland to expand its business, officials said.
Its clientele includes NASA, Southwest Airlines, US Airways, United Airlines, American Eagle Airlines and Boeing VIP Division.
Courtney Bacalso can be reached at c.bacalso@mrt.com
By the Numbers
3: Total number of hangars to be leased.
20: No. of years for the agreement.
167,250: Total square-foot of all three hangars.
$23 million: Estimated cost for MDC to renovate and construct facilities.
$30 million: Estimated worth of facilities, to be owned by MDC, after 20 years.
$57,561.88: Initial rent for three hangars. Rent to increase every four years.
200: No. of jobs the company would be required to create at the least by October 2011.
$6 million: Annual wages the company would have to pay by October 2011.
According to the lease agreement, the aircraft strip and paint services company would lease three hangars at Midland International Airport for the next 20 years.
"This is one of many steps that has to come about," said Doug Henson, chairman of the MDC board. "It is in no way official yet. We still need the approval from the company and the City Council."
The MDC would spend an estimated $22.8 million for the construction and improvements needed for the facilities -- a portion of which would come from the funds they already have on hand and the rest would be financed. Any construction costs exceeding that would be added to the monthly rent.
Before the deal with the Texas-based company can be finalized, the agreement also will need the City Council's approval.
The company will pay about $15,832 in rent for the 46,000 square-foot AMI Hangar. The two other hangars, which total 121,250 square feet, would be rented for a sum of about $41,730.
Rent would increase every four years, the agreement states.
However, the company will not have to begin paying rent for the AMI Hangar until they are allowed to move into the two other hangars, city attorney Keith Stretcher said.
The company, according to the agreement, must create at least 200 full-time jobs, which will result in annual wages of $6 million, by October 2011.
According to documents previously obtained by the Midland Reporter-Telegram, wages may range from "$8.75 to $18 per hour for hourly workers, and $40,000 to $65,000 per year for salaried managers."
According to the documents, the jobs could add $20 million in property values and nearly $700,000 to residential property tax values.
"I view this as a first step in solidifying a logical economic engine for Midland that could help offset the decline in the production of oil and gas," Henson said.
The company could become an anchor business for an aviation cluster in Midland, said Mike Hatley, vice president of economic development.
"Typically in our industry, the first one is the most expensive," Hatley said referring to cost of refurbishing and constructing the hangars. "But as soon as we bring in the industry, one begets the other."
If successful, this would be a move in the direction of diversifying Midland's economy -- which current corporation board members and city officials have said is among their priorities.
With the hangars being MDC-owned, the report states they would be worth an estimated $30 million after 20 years.
Hatley said the cost to renovate and refurbish the facilities will not affect citizens tax rates.
Officials said even if the deal isn't successful, the demand for the hangar space at the airport is high so finding a tenant would not be difficult.
Several months ago, the city accepted three bids from companies interested in leasing AMI Hangar. Instead, the bids were returned to the companies unopened because of the brewing deal with Baldwin Painting, officials said.
Hatley said he received an inquiry Monday from another company interested in the facility.
MDC officials said they have been in constant talks with Baldwin Painting since January.
Baldwin Painting had been the primary paint provider for 35 years at the Miami International Airport until 2003.
While its corporate headquarters is now in Bulverde, Baldwin Painting previously has been referred to as a New Mexico-based company for its operational facility in Roswell which began in 1999.
Its operations also expanded to San Antonio where they were awarded a long-term contract with San Antonio Aerospace. The company also dispatches its mobile crew to anywhere in the United States.
The company currently is looking at Midland to expand its business, officials said.
Its clientele includes NASA, Southwest Airlines, US Airways, United Airlines, American Eagle Airlines and Boeing VIP Division.
Courtney Bacalso can be reached at c.bacalso@mrt.com
By the Numbers
3: Total number of hangars to be leased.
20: No. of years for the agreement.
167,250: Total square-foot of all three hangars.
$23 million: Estimated cost for MDC to renovate and construct facilities.
$30 million: Estimated worth of facilities, to be owned by MDC, after 20 years.
$57,561.88: Initial rent for three hangars. Rent to increase every four years.
200: No. of jobs the company would be required to create at the least by October 2011.
$6 million: Annual wages the company would have to pay by October 2011.
 |
 |
|
| Midland Academy to have first-ever prom | Two Midland students go on to national Reflections contest |
Article Rating
Reader Comments
The following are comments from the readers. In no way do they represent the view of mywesttexas.com.
Fox Mulder wrote on Apr 8, 2008 1:32 PM:
" Where are they going to get the 200 employees? From existing Midland/Odessa businesses?
What happens if the company moves out or goes out of business within 20 years? Do they give the $23 million back? Or is all forgiven?
The MDC/Chamber/City Council continue to subsidize businesses that will compete with existing busiensses for employees. Why is this fair? Can businesses that lose employees to these subsidized companies get reimbursed by the MDC/Chamber/City Council?
Haven't we seen enough HELP WANTED signs around here? I'd rather the MDC/Chamber/City Council pay money for people to move here instead of continuing to pay companies to come in and hire employees away from existing tax-paying companies (that probably didn't get a handout to get where they are).
"
What happens if the company moves out or goes out of business within 20 years? Do they give the $23 million back? Or is all forgiven?
The MDC/Chamber/City Council continue to subsidize businesses that will compete with existing busiensses for employees. Why is this fair? Can businesses that lose employees to these subsidized companies get reimbursed by the MDC/Chamber/City Council?
Haven't we seen enough HELP WANTED signs around here? I'd rather the MDC/Chamber/City Council pay money for people to move here instead of continuing to pay companies to come in and hire employees away from existing tax-paying companies (that probably didn't get a handout to get where they are).
"
Jose Cuevas wrote on Apr 8, 2008 5:31 PM:
" Courtney,
I like most Midlanders want nothing but the best for my community. However, Dean Baldwin Painting, is not the answer to our economic development needs and certainly not worthy of the $23 million investment MDC approved Monday. The $58,000 proposed monthly rent payment published in the MRT doesn't even cover the estimated monthly P&I $114,000,00 debt service payment. Not to mention other financial concerns as published February 08, 2008 in the Roswell Daily Record which pointed out DBP needed legislative help restructuring $233,000 in back taxes owed to the state of New Mexico and in January 14, 2008 RDR reported DBP was behind one month on rent then caugth up but still behind 10 months on UDAG loan. I don't know about you but these issues sure are of concern to me as a taxpayer. I beliieve these issues deserve a good airing before MDC and the City Council committ us to a boondoggle. "
I like most Midlanders want nothing but the best for my community. However, Dean Baldwin Painting, is not the answer to our economic development needs and certainly not worthy of the $23 million investment MDC approved Monday. The $58,000 proposed monthly rent payment published in the MRT doesn't even cover the estimated monthly P&I $114,000,00 debt service payment. Not to mention other financial concerns as published February 08, 2008 in the Roswell Daily Record which pointed out DBP needed legislative help restructuring $233,000 in back taxes owed to the state of New Mexico and in January 14, 2008 RDR reported DBP was behind one month on rent then caugth up but still behind 10 months on UDAG loan. I don't know about you but these issues sure are of concern to me as a taxpayer. I beliieve these issues deserve a good airing before MDC and the City Council committ us to a boondoggle. "
Jose Cuevas wrote on Apr 8, 2008 6:24 PM:
" Courtney,
I need to make clear that the proposed $58,000 rent is monthly and that I am estimating around a P&I of $114,000 monthly debt service at today's 5.25% interest rate. So, the monthly short fall to the taxpayer is around $56,000 or $672,000 a year or times that by 20 years equals $13,440.000 million dollars. All that money is for the pleasure of having DBP in our community. "
I need to make clear that the proposed $58,000 rent is monthly and that I am estimating around a P&I of $114,000 monthly debt service at today's 5.25% interest rate. So, the monthly short fall to the taxpayer is around $56,000 or $672,000 a year or times that by 20 years equals $13,440.000 million dollars. All that money is for the pleasure of having DBP in our community. "
Richard wrote on Apr 12, 2008 1:54 AM:
" Look to Jessicaswell.com... all the facts are there...google Dean baldwin.... are we crazy??? Illegal aliens...lost goverment contracts/bared from goverment contracts, check ELPS gov excluded listing... 3 hangars and 200 employees//how? There is a Federal court hearing on April 21...anyone check that out? Im reading the paper also...anyone notice the condition of the Airlines industry latley? Oh ya...the New Mex guy that got then the free taxes...arrested today...hmmm "
Submit a Comment
We encourage your feedback and dialog, however we reserve the right to delete any post we see that may be considered slanderous, excessive and/or foul language, or any post that we may deem inappropriate.
You must register with a valid email to post comments. Only your Member ID will be posted with the comments.
Registered users sign in here: |
Become a Registered User |
News
Sports
Business
Entertain
Life
OTIM wrote on Apr 8, 2008 6:15 AM:
Hiring ilegal aliens in 2006;
http://www.ice.gov/pi/news/newsreleases/articles/060829roswell.htm
Troubles paying their taxes:
Gov. Bill Richardson, with the help of state Rep. Dan Foley, R-Roswell, worked this week with the aircraft painting company to craft a long-term plan to pay $233,000 in back taxes owed to the state
http://www.roswell-record.com/main.asp?FromHome=1&TypeID=1&ArticleID=22664&SectionID=49&SubSectionID=112
This is how desperate the MDC has become?
"