MDC to Consider Incentive for Natural Gas Services Group at Mar 28 Meeting

According to the MDC's Posted Agenda for March 28:
Consider a resolution authorizing the execution of economic development agreement regarding real property described as a 9.30-acre tract of land out of Section 13, Block 41, T-2-S, T&P RR Co. Survey, Midland County, Texas.
According to the Midland Central Appraisal District Records, a 9.3 Acre Tract in Section 13, Block 41, T-2-S, was purchased on 12/10/2007:
Owner Name: NGSG PROPERTIES LLC
Legal Description: Acres: 9.300, SW/4, SEC: 13, BLK: 41-T2S
Property ID: R000008595
Property Address: COUNTY RD 00125 ~ 12301 ~ W
Finally, according to Natural Gas Services Group's own Corporate News Release page:
Natural Gas Services Group, Inc. Moves Into Larger Fabrication Facility to Support Company GrowthCompany Begins Operations in 51,700 Sq. Ft. Fabrication, Warehousing & Offices
MIDLAND, Texas, Feb. 20 /PRNewswire-FirstCall/ -- Natural Gas Services Group, Inc. (AMEX: NGS), a leading provider of gas compression equipment and services to the natural gas industry, announces that it has completed the move into its new fabrication, warehouse and office facility located in Midland, TX. The building contains approximately 48,500 square feet of fabrication and warehouse space plus 3,200 square feet of office space and is located on approximately 9.30 acres of land. The company is in the process of selling its present facility.
Stephen Taylor, Chairman, President and CEO of Natural Gas Services Group, Inc. said, "This facility will more than double our fabrication space for rental compression equipment and enables us to take advantage of further opportunities to grow our rental fleet. We employed a phased approach while transitioning into the new space and have been able to maintain our previously planned build schedule without missing a beat. With that, we anticipate being able to add a record 300-350 rental units to our fleet in 2008."
FYI, that is the only 9.3 Acre tract in that Section, and it is more than coincidence that a buyer with the name NGSG bought a property exactly that size, and then a company with the name NGSG put out a press release about a property exactly that size, and now the MDC is coming along with an ED deal for a property exactly that size.
Not to mention, the location is OUTSIDE the City Limits. So again, the MDC is providing incentives to a company, who by virtue of their location, will not directly contribute any sales taxes into the MDC's (or the sports complex) coffers.
I guess Walsingham is going to have to buy the edition of the dictionary the MDC uses for the definition of DIVERSIFICATION.
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5 Comments
Hey, os -
How about Item 14 on the Agenda?
Consider a motion authorizing the Midland Development Corporation President, or his designee, to engage Fulbright & Jaworski L.L.P. and First Southwest Company regarding the financing of a project, as defined by Section 4A, Article 5190.6, Texas Revised Civil Statutes; and authorizing the Midland Development Corporation President, or his designee, to execute any term sheets or other such documents required by a financial institution for the commitment of funds.
Does that mean what I think it means?

Maybe. Look to the Headline in today's MRT for that answer.

Bingo.

This is a crock!
I wonder who fed the MRT the story about NGSG products being used in landfills? Yes, their products can and have been used in landfills...but 99% of their products are used in oil and gas - primarily natural gas. I guess Mims can't say "diversification" if they are giving money to an oil and gas company. We have several of those here already.
NGSG already committed to the new property and I suppose expanding it to fit their needs. Why do the taxpayers need to give a profitable company money to expand their business?
Wait! Could this mean that NGSG is in financial trouble? They need a gov't handout to stay afloat? Better sell my stock!





Great find Ospurt,
I am sure the MDC will come up with some BS excuse to justify their actions and their jobs.