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All right, it is 6:30 on Monday, August
24th, 2026.

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We're going to go ahead and call the
special call meeting of the McGregor

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City Council to order.
Uh item number two on the agenda is

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discussion and possible action regarding
approval of resolution R-11-2026,

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a resolution of the city of McGregor
as a participant in the Texas Enterprise

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Zone Program nominating Fidelity
Manufacturing as an enterprise project.

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» We already have an agreement, a
development agreement with

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Fidelity.
They're still going through their due

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diligence and one of the things they've
done is hired

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Bradley Ford to chase the
Enterprise Zone designation with the

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state of Texas and he's here to make a
presentation.

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» Thanks city manager. Bradley Ford,
representative Fidelity Manufacturing.

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Mayor and council, first off I want to
say thanks for your time this evening. I

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know it's a special meeting at our
request and that thank you for spending

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your time with us this evening. I have a
few prepared comments and some slides

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I'll use to show some graphics on the
screen

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and then I'll take any questions you
have for me at the end.

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See if I can do this.
All right.

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Those that don't know about Fidelity
Manufacturing as city manager mentioned,

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there's a development agreement between
the city of McGregor and Fidelity

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and it's kind of a two-part development
agreement. There's two phases to this

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project.
Um

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Fidelity's based out of Ocala, Florida.
They have about 500 employees there in

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Ocala.
Um but they have two phases here. First

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phase will be an interim site, we're
calling it an interim site. We've leased

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a portion of the old Ferguson Supply
building on FM 317, a short-term lease,

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only a few years
while we develop a 124-acre site just

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south of there in the industrial park.
Um we'll be under construction late this

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year on the interim site and then in
2027, 2028 on the permanent site just

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south.
Hiring should begin later this year.

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We've actually already hired a local HR
manager who's hit the ground running and

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we'll have at full build-out about 500
employees based here in McGregor. So

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it'll be about the same size as the
Ocala facilities in terms of employment.

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We'll be a major employer in the area.
They anticipate investing about $35

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million. It could go higher
over time as it get bids back.

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The program we've got on the agenda
tonight, the resolution for the state

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enterprise
zone designation

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is a program the state of Texas built a
number of years ago to attract capital

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intensive manufacturers.
This program is built to serve companies

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like Fidelity.
And it uses the state's portion of sales

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tax, sales and use tax, the state's
portion. The Everybody goes to their

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local shop, they get 8.25 cents added to
their bill, 6.25 goes to the state. This

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program is funded out of the 6.25
cent portion of the sales tax, not

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locally funded, state funded. It enables
companies that have capital intensive

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uh investments that generate sales tax
to recapture or would be refunded a

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portion of those over time.
It helps to attract high-quality jobs

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for local residents. I'll I'll speak to
that in a moment. There's some hiring

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requirements that are put on Fidelity by
the state of Texas that I think

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uh most anybody would agree with that
are good policy considerations. The last

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time City McGregor used this tool was um
uh back in the late 2000s

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uh with SpaceX. So, it's been quite a
while since McGregor's used this tool. I

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want to
just reiterate there's no direct cost

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for the city for this nomination or the
incentive. Uh this the law requires the

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local government to nominate the
company. That's the only thing you're

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required to do. State funds it,
ministers it.

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Um and the law also stipulates uh
community of your size gets six of these

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designations every biennium. So, every 2
years you get six of these.

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So, this is the first one you're using
of your bucket of six. You have five

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remaining. Uh so, you're not using your
only bullet in the gun, so to speak. You

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got five more to go if you have a big
wave of additional things going on

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in the industrial park. Five more. So,
who is Fidelity? They're a manufacturer

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of backup power and generator enclosure
systems as well as fuel tanks.

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Um they're definitely expanding into
Texas. Again, they were founded in 2014,

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not a very old company, but they've
grown very quickly with two plants in

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Florida. Their products are listed or
shown in graphically on the bottom left

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of the screen, and then
I kind of talked through their strategy

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on the lease facility and the permanent
facility, and just dropped a map for

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people to see. Really easy to see where
it is

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uh
in relation to each other. Basically,

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the lease facility is next door neighbor
to their permanent facility.

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So, I request tonight is that you
approve the resolution nominating

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Fidelity to participate in this program.
Um couple of requirements that the state

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puts on the company to receive the
incentive. 35% of these employees,

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the new hires, must be either veterans,
a resident of an enterprise zone, or

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economically disadvantaged. And
economically economically disadvantaged

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means they haven't held full-time
employment for about a year.

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So, we're going to be needing to target
people from the veterans community,

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enterprise zone residents, or
economically disadvantaged. It also

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requires the company make a capital
investment of at least $5 million,

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and create and retain these these jobs
for at least 5 years.

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They also define a job. It's very
particular. It has to be at least 1,820

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hours. They're working 1,820 hours a
year at the site. So, it's truly a

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full-time job, and it has to pay more
than the Clinch County's average wage,

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which at last time I checked was in the
low $60,000 range. So, these will be

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quality jobs that qualify for the
incentive.

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The value to the company, um
essentially that that rebate of sales

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tax from the state. It's about $2,500
per job created. So, a maximum refund to

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the company over 5 years will be $1.25
million.

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Again, cost of city There's no cost to
city for the nomination or the

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incentive. It's state-funded and
state-administered. You do retain five

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more nominations if you'd like. And our
next steps, the applications are due

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September 1st.
Uh so, you know, only a few days. And

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we'll hear in about 45 days from the
state if we're awarded the designation.

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There's only so many awarded each
quarter from the state of Texas. So,

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we'll hear in about 45 days.
And we won't receive any incentive

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payments until the company performs and
meets the program requirements. So, it's

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a reimbursement. It's performance-based.
It's not front-loaded. It's paid over

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time over the years as long as the
company's performing.

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With that, I'll take any questions you
might have.

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» Bradley, you say there's a
uh

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» Do what?

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» Yeah. Basically, uh it's not going to
cost us anything. And uh

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we're not risking anything by
this nomination.

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» Yes, sir.

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» All right, Council.

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» What's the time frame where they have to
meet these requirements? You said it's

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phased. Can you kind of talk through
what that time looks like?

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» Sure. So, on a performance-based
contract, the good news is

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each year they'll have to certify how
many employees they have, how many jobs

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they've created. And so, if if they've
only created a 125 in 2027, they'll only

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be paid for that portion.
Uh $2,500 for that number of jobs.

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Um and then those will have to hold for
5 years.

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Um now, obviously,
if they hire Bradley Ford in one of

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those jobs and then they
they let me go and Kevin Thomas is in

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the job, they don't get to double dip
and get a second award on that same job.

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So, it's particular to the role.
Um and they have a they'll have a cap of

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500 total will be their maximum.

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» And their minimum is 250.
>> So, in our development agreement that

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the city manager referenced, it's 246 or
250. You may You may be right on the

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nose there.
Um the minimums on the state program are

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just going to be based on how many they
jobs they create.

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So, it'll it'll move as they create the
job. Each year they'll have to certify

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how many they're at. So, let's say and
they do intend This is kind of a real

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ramp-up scenario that we're
we're putting pen to paper on this now,

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but say 2026 they're going to have 50 or
60. 2027 [clears throat]

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they'll be at 175 or so, and it'll ramp
up. And so, the state's rebates back to

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us will ramp up according to that level.
>> And what's the How long position is in

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the last of 5 years?
>> 5 years. Yes, sir. And then there's a

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5-year hold period.
>> And if they don't meet these

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requirements, is there any repercussions
other than you don't get the money?

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» There's recapture provisions, yeah. The
state has recapture provisions.

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For lack of performance.
>> And does the state receive those versus

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the city or
>> Yeah, they're So, the the state would

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receive any recapture would be would go
to the state. Yes, sir.

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Good questions.
>> Um

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oh.
>> Can I be heard in here?

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» this off, so hopefully I'll be loud
enough.

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Uh 35% of the new hires. So, are you
working with like local workforce to try

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and help to meet that? Cuz you know, we
would love for you guys to be

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successful.
>> Yeah.

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» Yeah. So, can you kind of tell us what
you're doing cuz

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» Sure.
>> maybe some of our citizens here are

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watching, maybe they might want to
apply.

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» Absolutely.
Uh and cuz that's an ambitious number.

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That's a big number, um, if you think
about it. So, we have company officials,

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I toured company officials recently once
again through Texas State Texas State

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Technical College. We intend for that to
be a primary source of particularly our

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welders and electricians. That's a big
bucket of the people that will come work

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at this facility is welders and
electricians.

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Um, so we'll work hard at TSTC to get
great qualified graduates out of their

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programs.
Um, well, also we've coordinated with

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Texas Workforce Commission locally,
Heart of Texas Workforce Commission, um,

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who has a great opportunity to connect
with veterans, those coming out of Fort

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Hood, but also veterans that are already
in our community that are looking for

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work. Um, and so we're looking forward
to expanding on those partnerships,

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certainly, and the hiring of our local
HR representative who's on the ground is

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also very helpful. And so, I'd I'd
encourage anybody that is looking for an

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opportunity, you think maybe I I could
work at Fidelity, uh, reach out to You

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probably don't know where my contact
info is, but maybe Andrew Smith at the

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EDC, uh, and he could connect you up
with the HR manager.

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These This is a company though that I
think there's really good value

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alignment with the McGregor community.
It's a hard working company who cares

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deeply about its people.
And I can't wait for the community to

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get to see that and hear of real
examples of how they do that.

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» Just a comment on that 35%
If you just take good math,

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» [clears throat]
>> 175

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employees at 588

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That's a big number.
>> It's a big number.

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Especially in a time when you remember
the three buckets, right? Veterans,

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which we have we have a lot of great
talented veterans in this region.

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Um, enterprise zone residents,
the actually where we sit today is

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technically in enterprise zone, and
there's several zones in Waco as well

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and on on the outskirts of McLennan
County.

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Uh but that third bucket, the
economically disadvantaged,

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we're with with employment as it is
right now, unemployment's very low.

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And so it's going to be a challenge to
get to our number.

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We're going to have to do a good job of
setting deep roots, which is why I

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appreciate
Fidelity's investment already in an HR

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manager on the ground. I think that's
going to be fruitful and ensure

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compliance with the state's
requirements.

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» Can they work with high schools?
>> Absolutely.

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Absolutely.
>> I'm sorry, what was the

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» Uh the question, can they work with high
schools?

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Yeah, definitely. Um
definitely it's going to be an all hands

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on deck.
>> All right. Does the [clears throat]

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council have any other questions?

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All right. I'll entertain a motion to
approve

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» Chase.
>> That's my motion.

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» I will go ahead and say
entertain a motion by resolution now.

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» I make motion we approve the resolution
R-11-2026.

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» Thank you.
We have a motion and a second.

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Is there any further discussion?

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Hearing none, all those in favor say
aye.

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» Aye.
>> [clears throat]

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» Any opposed, nay.

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Carries.
Item three, announcements from the city

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manager.
>> I have none, sir.

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» Thank you. Mr. Mayor.
>> Check. Item four, questions and comments

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from the
mayor

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and your council members. I'm going to
go ahead and

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thank [clears throat] everybody for
coming out this evening.

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Uh

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I got to got to head to the house here
pretty quick. I got a

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patient at the hospital I need to take
care of.

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Um so thank you for coming out and
showing interest in this. I appreciate

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it.
Uh

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as far as getting information out to the
community,

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We've had discussions about that and
I think we're going to we're going to

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try to do that
quite a bit there.

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Council had any comments?

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Okay, then we'll go ahead and adjourn at
6:44.

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» Thank you. Thank you.