[1:30] All right, it is 6:30 on Monday, August
24th, 2026.
[1:36] We're going to go ahead and call the
special call meeting of the McGregor
[1:39] City Council to order.
Uh item number two on the agenda is
[1:45] discussion and possible action regarding
approval of resolution R-11-2026,
[1:52] a resolution of the city of McGregor
as a participant in the Texas Enterprise
[1:58] Zone Program nominating Fidelity
Manufacturing as an enterprise project.
[2:04] » We already have an agreement, a
development agreement with
[2:08] Fidelity.
They're still going through their due
[2:11] diligence and one of the things they've
done is hired
[2:15] Bradley Ford to chase the
Enterprise Zone designation with the
[2:19] state of Texas and he's here to make a
presentation.
[2:25] » Thanks city manager. Bradley Ford,
representative Fidelity Manufacturing.
[2:30] Mayor and council, first off I want to
say thanks for your time this evening. I
[2:32] know it's a special meeting at our
request and that thank you for spending
[2:36] your time with us this evening. I have a
few prepared comments and some slides
[2:40] I'll use to show some graphics on the
screen
[2:43] and then I'll take any questions you
have for me at the end.
[2:47] See if I can do this.
All right.
[2:50] Those that don't know about Fidelity
Manufacturing as city manager mentioned,
[2:54] there's a development agreement between
the city of McGregor and Fidelity
[2:58] and it's kind of a two-part development
agreement. There's two phases to this
[3:02] project.
Um
[3:05] Fidelity's based out of Ocala, Florida.
They have about 500 employees there in
[3:08] Ocala.
Um but they have two phases here. First
[3:11] phase will be an interim site, we're
calling it an interim site. We've leased
[3:14] a portion of the old Ferguson Supply
building on FM 317, a short-term lease,
[3:20] only a few years
while we develop a 124-acre site just
[3:25] south of there in the industrial park.
Um we'll be under construction late this
[3:30] year on the interim site and then in
2027, 2028 on the permanent site just
[3:35] south.
Hiring should begin later this year.
[3:38] We've actually already hired a local HR
manager who's hit the ground running and
[3:43] we'll have at full build-out about 500
employees based here in McGregor. So
[3:47] it'll be about the same size as the
Ocala facilities in terms of employment.
[3:51] We'll be a major employer in the area.
They anticipate investing about $35
[3:56] million. It could go higher
over time as it get bids back.
[4:01] The program we've got on the agenda
tonight, the resolution for the state
[4:03] enterprise
zone designation
[4:07] is a program the state of Texas built a
number of years ago to attract capital
[4:11] intensive manufacturers.
This program is built to serve companies
[4:16] like Fidelity.
And it uses the state's portion of sales
[4:21] tax, sales and use tax, the state's
portion. The Everybody goes to their
[4:24] local shop, they get 8.25 cents added to
their bill, 6.25 goes to the state. This
[4:30] program is funded out of the 6.25
cent portion of the sales tax, not
[4:36] locally funded, state funded. It enables
companies that have capital intensive
[4:41] uh investments that generate sales tax
to recapture or would be refunded a
[4:47] portion of those over time.
It helps to attract high-quality jobs
[4:52] for local residents. I'll I'll speak to
that in a moment. There's some hiring
[4:55] requirements that are put on Fidelity by
the state of Texas that I think
[5:00] uh most anybody would agree with that
are good policy considerations. The last
[5:05] time City McGregor used this tool was um
uh back in the late 2000s
[5:11] uh with SpaceX. So, it's been quite a
while since McGregor's used this tool. I
[5:15] want to
just reiterate there's no direct cost
[5:18] for the city for this nomination or the
incentive. Uh this the law requires the
[5:23] local government to nominate the
company. That's the only thing you're
[5:27] required to do. State funds it,
ministers it.
[5:32] Um and the law also stipulates uh
community of your size gets six of these
[5:37] designations every biennium. So, every 2
years you get six of these.
[5:41] So, this is the first one you're using
of your bucket of six. You have five
[5:44] remaining. Uh so, you're not using your
only bullet in the gun, so to speak. You
[5:48] got five more to go if you have a big
wave of additional things going on
[5:53] in the industrial park. Five more. So,
who is Fidelity? They're a manufacturer
[5:58] of backup power and generator enclosure
systems as well as fuel tanks.
[6:03] Um they're definitely expanding into
Texas. Again, they were founded in 2014,
[6:07] not a very old company, but they've
grown very quickly with two plants in
[6:10] Florida. Their products are listed or
shown in graphically on the bottom left
[6:14] of the screen, and then
I kind of talked through their strategy
[6:16] on the lease facility and the permanent
facility, and just dropped a map for
[6:20] people to see. Really easy to see where
it is
[6:24] uh
in relation to each other. Basically,
[6:27] the lease facility is next door neighbor
to their permanent facility.
[6:31] So, I request tonight is that you
approve the resolution nominating
[6:34] Fidelity to participate in this program.
Um couple of requirements that the state
[6:40] puts on the company to receive the
incentive. 35% of these employees,
[6:45] the new hires, must be either veterans,
a resident of an enterprise zone, or
[6:50] economically disadvantaged. And
economically economically disadvantaged
[6:54] means they haven't held full-time
employment for about a year.
[6:59] So, we're going to be needing to target
people from the veterans community,
[7:04] enterprise zone residents, or
economically disadvantaged. It also
[7:07] requires the company make a capital
investment of at least $5 million,
[7:11] and create and retain these these jobs
for at least 5 years.
[7:16] They also define a job. It's very
particular. It has to be at least 1,820
[7:20] hours. They're working 1,820 hours a
year at the site. So, it's truly a
[7:24] full-time job, and it has to pay more
than the Clinch County's average wage,
[7:28] which at last time I checked was in the
low $60,000 range. So, these will be
[7:33] quality jobs that qualify for the
incentive.
[7:36] The value to the company, um
essentially that that rebate of sales
[7:41] tax from the state. It's about $2,500
per job created. So, a maximum refund to
[7:46] the company over 5 years will be $1.25
million.
[7:51] Again, cost of city There's no cost to
city for the nomination or the
[7:54] incentive. It's state-funded and
state-administered. You do retain five
[7:58] more nominations if you'd like. And our
next steps, the applications are due
[8:03] September 1st.
Uh so, you know, only a few days. And
[8:06] we'll hear in about 45 days from the
state if we're awarded the designation.
[8:10] There's only so many awarded each
quarter from the state of Texas. So,
[8:13] we'll hear in about 45 days.
And we won't receive any incentive
[8:17] payments until the company performs and
meets the program requirements. So, it's
[8:21] a reimbursement. It's performance-based.
It's not front-loaded. It's paid over
[8:26] time over the years as long as the
company's performing.
[8:29] With that, I'll take any questions you
might have.
[8:38] » Bradley, you say there's a
uh
[8:41] » Do what?
[8:44] » Yeah. Basically, uh it's not going to
cost us anything. And uh
[8:49] we're not risking anything by
this nomination.
[8:52] » Yes, sir.
[8:56] » All right, Council.
[8:59] » What's the time frame where they have to
meet these requirements? You said it's
[9:03] phased. Can you kind of talk through
what that time looks like?
[9:05] » Sure. So, on a performance-based
contract, the good news is
[9:09] each year they'll have to certify how
many employees they have, how many jobs
[9:13] they've created. And so, if if they've
only created a 125 in 2027, they'll only
[9:19] be paid for that portion.
Uh $2,500 for that number of jobs.
[9:26] Um and then those will have to hold for
5 years.
[9:29] Um now, obviously,
if they hire Bradley Ford in one of
[9:32] those jobs and then they
they let me go and Kevin Thomas is in
[9:36] the job, they don't get to double dip
and get a second award on that same job.
[9:40] So, it's particular to the role.
Um and they have a they'll have a cap of
[9:45] 500 total will be their maximum.
[9:50] » And their minimum is 250.
>> So, in our development agreement that
[9:55] the city manager referenced, it's 246 or
250. You may You may be right on the
[9:59] nose there.
Um the minimums on the state program are
[10:04] just going to be based on how many they
jobs they create.
[10:08] So, it'll it'll move as they create the
job. Each year they'll have to certify
[10:13] how many they're at. So, let's say and
they do intend This is kind of a real
[10:16] ramp-up scenario that we're
we're putting pen to paper on this now,
[10:20] but say 2026 they're going to have 50 or
60. 2027 [clears throat]
[10:25] they'll be at 175 or so, and it'll ramp
up. And so, the state's rebates back to
[10:30] us will ramp up according to that level.
>> And what's the How long position is in
[10:35] the last of 5 years?
>> 5 years. Yes, sir. And then there's a
[10:38] 5-year hold period.
>> And if they don't meet these
[10:40] requirements, is there any repercussions
other than you don't get the money?
[10:44] » There's recapture provisions, yeah. The
state has recapture provisions.
[10:48] For lack of performance.
>> And does the state receive those versus
[10:54] the city or
>> Yeah, they're So, the the state would
[10:58] receive any recapture would be would go
to the state. Yes, sir.
[11:04] Good questions.
>> Um
[11:07] oh.
>> Can I be heard in here?
[11:09] » this off, so hopefully I'll be loud
enough.
[11:12] Uh 35% of the new hires. So, are you
working with like local workforce to try
[11:19] and help to meet that? Cuz you know, we
would love for you guys to be
[11:22] successful.
>> Yeah.
[11:24] » Yeah. So, can you kind of tell us what
you're doing cuz
[11:26] » Sure.
>> maybe some of our citizens here are
[11:28] watching, maybe they might want to
apply.
[11:30] » Absolutely.
Uh and cuz that's an ambitious number.
[11:33] That's a big number, um, if you think
about it. So, we have company officials,
[11:37] I toured company officials recently once
again through Texas State Texas State
[11:42] Technical College. We intend for that to
be a primary source of particularly our
[11:46] welders and electricians. That's a big
bucket of the people that will come work
[11:50] at this facility is welders and
electricians.
[11:53] Um, so we'll work hard at TSTC to get
great qualified graduates out of their
[11:58] programs.
Um, well, also we've coordinated with
[12:02] Texas Workforce Commission locally,
Heart of Texas Workforce Commission, um,
[12:07] who has a great opportunity to connect
with veterans, those coming out of Fort
[12:12] Hood, but also veterans that are already
in our community that are looking for
[12:15] work. Um, and so we're looking forward
to expanding on those partnerships,
[12:19] certainly, and the hiring of our local
HR representative who's on the ground is
[12:24] also very helpful. And so, I'd I'd
encourage anybody that is looking for an
[12:28] opportunity, you think maybe I I could
work at Fidelity, uh, reach out to You
[12:32] probably don't know where my contact
info is, but maybe Andrew Smith at the
[12:35] EDC, uh, and he could connect you up
with the HR manager.
[12:40] These This is a company though that I
think there's really good value
[12:43] alignment with the McGregor community.
It's a hard working company who cares
[12:48] deeply about its people.
And I can't wait for the community to
[12:52] get to see that and hear of real
examples of how they do that.
[12:58] » Just a comment on that 35%
If you just take good math,
[13:02] » [clears throat]
>> 175
[13:05] employees at 588
[13:09] That's a big number.
>> It's a big number.
[13:13] Especially in a time when you remember
the three buckets, right? Veterans,
[13:17] which we have we have a lot of great
talented veterans in this region.
[13:21] Um, enterprise zone residents,
the actually where we sit today is
[13:26] technically in enterprise zone, and
there's several zones in Waco as well
[13:30] and on on the outskirts of McLennan
County.
[13:33] Uh but that third bucket, the
economically disadvantaged,
[13:37] we're with with employment as it is
right now, unemployment's very low.
[13:42] And so it's going to be a challenge to
get to our number.
[13:45] We're going to have to do a good job of
setting deep roots, which is why I
[13:48] appreciate
Fidelity's investment already in an HR
[13:51] manager on the ground. I think that's
going to be fruitful and ensure
[13:55] compliance with the state's
requirements.
[13:57] » Can they work with high schools?
>> Absolutely.
[14:01] Absolutely.
>> I'm sorry, what was the
[14:03] » Uh the question, can they work with high
schools?
[14:06] Yeah, definitely. Um
definitely it's going to be an all hands
[14:10] on deck.
>> All right. Does the [clears throat]
[14:12] council have any other questions?
[14:17] All right. I'll entertain a motion to
approve
[14:19] » Chase.
>> That's my motion.
[14:21] » I will go ahead and say
entertain a motion by resolution now.
[14:26] » I make motion we approve the resolution
R-11-2026.
[14:32] » Thank you.
We have a motion and a second.
[14:36] Is there any further discussion?
[14:40] Hearing none, all those in favor say
aye.
[14:42] » Aye.
>> [clears throat]
[14:43] » Any opposed, nay.
[14:46] Carries.
Item three, announcements from the city
[14:50] manager.
>> I have none, sir.
[14:53] » Thank you. Mr. Mayor.
>> Check. Item four, questions and comments
[14:56] from the
mayor
[14:58] and your council members. I'm going to
go ahead and
[15:01] thank [clears throat] everybody for
coming out this evening.
[15:03] Uh
[15:06] I got to got to head to the house here
pretty quick. I got a
[15:10] patient at the hospital I need to take
care of.
[15:12] Um so thank you for coming out and
showing interest in this. I appreciate
[15:16] it.
Uh
[15:18] as far as getting information out to the
community,
[15:23] We've had discussions about that and
I think we're going to we're going to
[15:27] try to do that
quite a bit there.
[15:32] Council had any comments?
[15:38] Okay, then we'll go ahead and adjourn at
6:44.
[15:42] » Thank you. Thank you.