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Commission approves split sales‑tax rebate for local employer expansion after wage debate
Summary
After a public hearing, the Ennis City Commission approved a Chapter 380 economic development agreement for a company dubbed "Project Superman," agreeing on a split 0.25‑cent/0.25‑cent sales‑tax rebate (city/EDC) and a five‑year property‑tax rebate on new value; commissioners expressed concern that many new jobs pay below the city’s mean wage.
The Ennis City Commission on Sept. 17 approved a Chapter 380 agreement to support a local employer’s expansion, agreeing that the sales‑tax incentive would be split equally between the city and the Ennis Economic Development Corporation (EDC).
Director Jim Wehmeyer presented the proposal, saying the expansion represents a $12 million capital investment and the addition of roughly 57 new jobs. He described the proposed incentives as a 50% property‑tax rebate on new taxable value for five years and a 0.005 (half‑cent) sales‑tax rebate on incremental local sales for seven years. "The investment's $12,000,000… Number of new jobs, 57," Wehmeyer said.
Commissioners debated who should bear the sales‑tax rebate. Mayor Cameron Rayburn urged that the EDC should cover the full half‑cent because the new jobs’ average wage "is below the average salary for the average full time year round worker in the city of Ennis." The mayor quantified the jobs’ mean pay at about $39,000 per year and contrasted that with the city's mean of about $54,000.
Commissioner Haney moved to approve the agreement with a split of a quarter‑cent from the city and a quarter‑cent from the EDC; Commissioner Pierce seconded. After discussion, the commission took a voice vote and the mayor announced, "The ayes have it, and the motion is adopted."
Supporters of the package emphasized the company’s local ties and its existing payroll. Wehmeyer noted the firm already employs 138 people in Ennis and that the incremental incentives apply only to new value and new sales above an established baseline; he also described how prior incentive obligations to the company would be replaced by the new agreement.
The agreement as approved will be amended in contract language to clarify the split of the sales‑tax rebate and the specific terms of the property‑tax rebate, staff said.
Next steps: staff will finalize agreement language reflecting the quarter‑cent split and return final documents for execution; the EDC and city will track the incentive against the baseline sales‑tax and taxable‑value figures referenced in staff slides.
