16 - Lionshead Development Agreement

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No. 16 Memorandum TO: Mayor, Mayor Pro Tem & City Council FROM: Grayson Path, City Manager Stephanie Harris, City Attorney Rob Vine, Assistant City Manager SUBJECT: Lionshead Development Agreement DATE: May 22, 2023 BACKGROUND: For the last several years the City, PEDC and Lionshead Paris, LLC, have been in negotiations to expand their company into Paris. They are planning on building a 120,000 square foot facility in the Northwest Industrial Park for the development, manufacturing, and distribution of tire and wheel assemblies and component parts for the recreation vehicle, marine, livestock, cargo and utility trailer industries. They have committed to constructing a facility with an approximate capital investment of $23 million and to create between 15 and 40 new jobs. On April 28, 2021, Maureen Hammond, PEDC Executive Director, and I discussed the possibility of partnering with Lionshead with respect to the construction and installation of water infrastructure. Lionshead is required by the fire code to build a fire suppression loop around their building with hydrants to assist the Fire Department with fighting any fires should they occur. We decided to propose a mutually beneficial arrangement whereby, rather than Lionshead constructing a private fire suppression loop, the city would construct a bigger, public loop in the public right- of-way (ROW) with Lionshead connecting laterals inward to provide the required hydrants to fire code. This arrangement would benefit the city by extending our public infrastructure westward in the industrial park, setting us up for potential expansion should another prospect arise to the west and/or south at reduced cost to the taxpayers because the company would be contributing financially to the project. As a part of the development agreement, we would cap their expense at what they would have spent originally. In other words, it would cost them no more than they would have spent, with us paying above and beyond (there would be greater linear footage in water lines in the ROW than they would have needed internally). The benefit to Lionshead would be that the arrangement would give them the same end product at the same cost, but relieve them of any future maintenance obligations of a private water line, as the city would maintain the newly constructed