DCOA approves $11 million construction budget for building for CarbonLITE

April 30--The Development Corporation of Abilene authorized a construction budget of more than $11 million to "finish-out" a building at Five Points Business Park to better fit the needs of recycling business CarbonLITE.

While the project is costly, Richard Burdine, the DCOA's interim chief executive officer, said the decision was good for Abilene in many respects.

"The Development Corporation would stand to receive substantially more lease income each year," he said.

The DCOA will collect lease payments of about $934,545 a year, and the company will pay property taxes to the city, county and school district, he said.

The company will similarly pay property taxes on its capital equipment.

The DCOA in August approved a resolution authorizing $6.1 million in assistance to the company, which specializes in processing used plastic bottles into new beverage bottles and other products.

The $6.1 million package includes incentives and forgivable loans for equipment purchases, job creation incentives and a job training grant. The construction costs was not included in the package since the DCOA will retain ownership of the building.

At the time, the incentive package was approved, finish-out of the Spec 3 building at 6558 Five Points Parkway was estimated to cost between $4 million and $5 million.

But during a site visit in December, DCOA learned the company needed additional space -- including a 100,000 square-foot warehouse addition and a 10,000-square foot office.

That pushed the finish-out estimate to $11.8 million, including design fees and other services. In January, the DCOA board approved a $759,601 contract for architectural and other design services.

The DCOA board Tuesday authorized the construction budget of $11,041,249.

Over the next 10 years, the board expects to receive $9,345,450 in lease payments from CarbonLITE.

In a related item, the DCOA board approved an agreement with HWH Group of Paris, Texas, to help pursue New Market Tax Credits and a Texas Enterprise Fund Award to offset the expansion costs.

If successful, total potential funding for the project could be as much as $4.6 million.

The DCOA also:

Authorized a two-month extension of Burdine's interim status as it continues to search for a new leader. The board extended his contract through the end of July. The funding required for the extension is $25,281. That includes $774 in unused sick and vacation leave and $1,566 in reimbursement for professional liability insurance.

Approved a construction contract and funding to add a "doghouse" to Hangar 1, occupied by Eagle Aviation Services Inc. at Abilene Regional Airport.

The modifications would add 40 feet to the front of the hangar and install 40-foot tall sliding doors on new tracks with new concrete paving, at a cost of $2.6 million.

The construction, which would be undertaken by Lansford Co. of Lampasas, is necessary to avoid potential loss of future American Airline business and help provide for new carrier maintenance business, Burdine told board members in a memo.

The DCOA began its relationship with Eagle Aviation in 1994, when the DCOA purchased Hangars 2 and 3 at Abilene Regional Airport and began leasing space to the company for its aircraft maintenance operation.

Eagle Aviation now occupies five hangars for maintenance checks and a separate building for records and parts storage. It operates five dock lines and employs more than 400 maintenance and support personnel, being American Eagle's largest maintenance base.

In the wake of American Airlines' bankruptcy and pending merger with US Airways, American Eagle was named Envoy. The forecast for new aircraft orders by regional airlines is for larger planes with taller tail sections that won't fit inside Eagle's current hangars.

In November of last year, the DCOA authorized a contract with Tittle Luther Partnership/Parkhill Smith & Cooper to design modifications to hangars to accommodate larger aircraft with taller tail sections.

Hangar 1 was the logical choice to be modified, since it is not currently configured for a maintenance dock line and stands empty much of the time.

Included in the bid is replacement of 1,146 square yards of existing concrete apron pavement that is failing and will not tolerate larger, heavier aircraft.

Following a tour of Eagle Aviation Services, Inc., Burdine presented a breakdown of the business' economic impact.

The DCOA has invested a total of $17.54 million in Eagle Aviation

The grand total of Abilene payroll is $180 million, while the city, county and school district benefit from Eagle's operations through property taxes -- amounting to $5.8 million from 1998-2013.

Lease payments totaled $1.34 million for 1998-2013, making a combined figure of payroll, property taxes and lease of $191 million.

That translates to a return of $11 for every $1 invested.

Eagle has further benefitted the Abilene community and surrounding region by the addition of regional jet service to and from D/FW Airport.

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