Title
Approving a Pflugerville Community Development Corporation performance agreement and 380 agreement with Complete Energy Systems.
Summary
Complete Energy Systems is a start up renewable energy company that will be relocating its operations from Boca Raton, Florida to Pflugerville with two subsidiary companies Atlantic Solar L.L.C. and Green World Systems L.L.C. The Company intends to employ 280 employees by 2015. The agreement requires the employment of 100 employees by 2013 and 200 by 2014 with an average wage of $55,000 and medical benefits for all full time employees. The Company will bring 8 employees from Florida. All other employees will be hired locally. The following summaries of the two subsidiary companies were provided by the companies.
Atlantic Solar LLC (Atlantic Solar™) was established to be a world class manufacturer of American made Photovoltaic (PV) modules. We are committed to manufacturing state of the art PV modules utilizing the most efficient and highest quality materials possible. Our focus is on the development of local manufacturing in the central and eastern regions of the United States. Atlantic Solar’s first manufacturing facility will produce at least 50 MW of solar modules per year. This facility will create more than 150 new full time jobs. It is our intent to train individuals from the local community for these new positions in the rapidly expanding green energy industry. The United States domestic solar photovoltaic (“PV”) market grew to 357 megawatts (“MW”) in 2008, from 220 megawatts a year earlier (a 62% increase). In 2008 the United States was the fourth largest PV market. Demand in 2009 is projected to come in between 440 and 544 MW. By 2012, upside projections put demand in the U.S. at 2,022 MW, which represents an annual growth rate averaging 48% from 2008 to 2012. During this period the U.S. will surpass Spain, and potentially Germany, to become the leading global PV market. Moreover, the total industry order book of identified PV projects in June 2009 was already at 2.3 GW in backlog. Driven by an accelerating political and economic recognition in the U.S. of the need for clean energy, the US market size is projected to surpass 1 GW (1,000 MW) in annual installations in 2010. The American public is expressing a preference for U.S. made products, and the U.S. government demands it wherever possible on U.S. government funded projects. Atlantic Solar is committed to producing PV modules from American components, on American equipment, in American plants, by Americans.
Green World Systems, LLC (GWS) manufactures and markets renewable energy solutions. Our products integrate proven components into safe, reliable, cost-effective systems that are easy to maintain. GWS has developed a patent pending Mobile Renewable Energy Unit (MoRE™) that is a complete solar and wind electric power generation and storage system. Our MoRE™ is a self-contained, easily transported system that has PV solar panels, wind turbines, storage batteries, charge controller, power inverter, and efficient LED lighting. The system can be configured with a water purification system, refrigerator, portable lighting, and solar thermal cooker. The Sunshine Cooker is a mobile solar thermal unit that was developed to help feed large groups of people without adversely affecting the environment or contributing to deforestation. It can produce meals for up to 400 people at a time with no fuel costs. The food can be boiled, steamed or baked.
Status
Pending Approval
Prior City Council Action
None
Deadline for City Council Action
N/A
Projected Future City Council Action
N/A
Fiscal Impact
Complete Energy Systems will be located in temporary space pending completion of a 100,000 square foot manufacturing/ assembly facility at the Pflugerville Renewable Energy Park. Currently the property is tax exempt and the City realizes no tax revenue from the site. The numbers below were taken from an economic impact analysis PCDC commissioned for this prospect which has been included in your packet. The numbers below do not include the indirect impact on Pflugerville during the construction of the facility. The numbers below are based on an ad valorem tax rate of $0.59. The company will initially sell all items factory direct. In the event they move to distributors nationwide the sales tax numbers will need to be reduced accordingly.
50% Ad Valorem & Personal Property Rebate 1% Sales Tax .05 % Sales Tax
Year 1 $21,375 $178,976 $ 89,488
Year 2 $30,225 $578,586 $289,293
Year 3 $33,175 $641,064 $320,532
Year 4 $35,564 $782,527 $391,263
Year 5 $35,564 $878,597 $439,298
Total 5yrs $155,903 $3,058,753 $1,529,874
Staff Recommendation
Approval
Drafter
Floyd Akers, Executive Director, Pflugerville Community Development Corporation