[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.

McGregor, TX City Special Called Meeting 08/24/2026

Transcript