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OPEN THREAD: Questions the City Council should ask concerning Dean Baldwin Painting

The Midland City Council has scheduled a Special Joint Meeting with the Midland Development Corporation on Tuesday, April 15th @ 1:00 PM to....

Consider a motion making a recommendation to the Midland Development Corporation Board of Directors regarding the modification, amendment, approval or cancellation of the proposed terms of the Economic Development and Lease Agreement between the Midland Development Corporation and Dean Baldwin Painting, L.P.

This meeting will be held as an Executive Session.

I am opening this thread in order that readers may submit questions that they would like asked by the council.

Warning: Don't screw around with this open thread. Ask legitimate questions. Anything that THIS EDITOR considers to be improper will certainly be deleted and multiple offenses will probably trip the much feared Site Admin's Ban Hammer.

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19 Comments

Here are a few:

1) I am still skeptical that DBP isn't relocating in the near-mid term rather than just expanding. The proposed hangar space at MAF (167,250 sf) happens to be almost exactly the same size as their Roswell facility (170,000sf). How much of a look does the MDC actually get at a company's financials and is it enough to make a judgment on whether they should be doubling the capacity of their Roswell facility?

2) The proposed (subsidized) rent for these three new hangars is reported as being $57,561.88. Is this per year or for each four year term? Also, reports state that there is a high demand for hangars and that should this deal fall through that there should be no problem finding another occupant for them. What would be the going rate to rent these hangars out without subsidies or incentives and what would be the payout (if any) on the $23,000,000 in building and renovation costs at the real (unsubsidized) market rate?

3) Building A of the Entrada Business Park remains unoccupied after two years. What kind of restrictions, if any, is the MDC placing on Building A that keep that building now demonstrably less attractive than other alternatives in what has to be a seller's market? And what, if any, of these kind of restrictions or conditions would also be applied to these hangars under the stewardship of the MDC rather than the City of Midland?

4) Does the MDC have in place a comprehensive set of procedures regarding the financial analysis and due diligence reagrding these companies, what positions on the MDC Board, or MDC staff, or Chamber staff is responsible for performing them, and what is their professional training in this field?

General Philosophy Questions

5) Can giving subsidies/incentive money to someone in the oil & gas industry (NGSG and/or FibreRod) and already located here be considered diversification?

6) In the case of NGSG (and almost certainly FibreRod) there are already several other companies already here and in the same business as these benficiaries of public funds. Did anyone check to see if any of these several other companies had plans to hire additional workers over the time period that covers the deals struck by the MDC with these companies? And if any of these other locally situated companies did/do have plans to hire within this same industry can the MDC really claim to have created any jobs whatsoever? Further, if several of these companies do plan to hire and (like a lot of companies) are having some difficulty finding people cannot the MDC be seen as unfairly susidizing one company over several of its competing companies?

7) Dean Baldwin painting was raided by ICE in 2006 for hiring illegal aliens, and within the past 90 days has been placed on the GSA's EPLS in regards to their Air Force Contracts. Shold this deal be approved, what is Dean Baldwin's official position on these incidents and what upper management and corporate governance changes have been implemented to address the corporate culture that led to these incidents?

Furthermore, does the deal provide provisions to recalim MDC subsidies paid, AND any future debt service shortfalls should Dean Baldwin be forced to close due to circumstances stemming from these events, or other illegal activities?

(when the deal falls through)
How much do you owe the local blogs, specifically Jessicaswell, for saving the MDC and city a lot of grief by signing a company with so many obvious problems?

To answer Blakely's question:

"One meeeeellion dollars!"

/Dr. Evil

If they really wanted to send a message the council could vote to have the MDC pay us $350...enough to cover our hosting fees for a year.

I hate a lot of things, but I love that idea.

on that subject, what happened to your tip jar?

If this is an Exectuive Session how are you going to find out the answers?

To tell the truth, since it is an executive session we can't even be sure that the questions will be asked. I like our chances, though.

Knowing that I might be incorrect, I believe that Baldwin stated that hourly employees would be paind $8 hour at this new facility. Given the current economic environment (competitive wages and cost-of-living expenses), is realistic to think that Baldwin can hire enough workers in the Midland area, at that rate, to meet its obligations?

I am not kidding when I ask this....but aren't the local fast food joints paying more than that right now? And they can't get the help they need.

I have to think that the oilfield would steal as many employees from them here as it must be in Roswell if $8/hr really is what they are paying.

And if you are going to expand, why expand so close geographically and into an area where workers are at a shortage?

This smells more like a (eventual) re-location to me every day.

Since bringing in new jobs and businesses helps boost the tax base and therefore the tax revenue the city will claim, will this increase change the city council's stance on making its citizens pay for the upgrading of the city's infrastructure out of their own pockets on top of the taxes the city already levies on us? Just curious since I have recently been charged to change out the city's connection for my sewer lateral to their main inside their right of way.

I kind of wonder why Dean Baldwin left Miami International Airport after nearly three decades in operation there? Now, they had been operating the facility in Roswell for some time when they closed up shop in Miami, yet they didn't move their offices to their biggest location, instead, their offices are now at the private Bulverde AirPark.

Then there is this article from the private blog of a Palm Beach Post Reporter in 2003 with a quote from Dean Baldwin, President Barbara Baldwin:

The Air Force paid Dean Baldwin Painting, based in West Palm Beach, about $2.4 million to strip and paint its C-130 cargo planes at a company facility in Roswell, N.M. The contract is a five-year deal that calls for Dean Baldwin to handle work that the Air Force's maintenance depot at Ogden, Utah, can't handle.

The deal has helped the company grow into a $9 million company that employs 180, including six locally.

"This contract was a small-business set-aside," Chief Executive Officer Barbara Baldwin says. "It created quite a few extra jobs. It sure helped us stabilize our business."

The war could bring her more business, considering all the use and abuse the planes are getting in Iraq's sandy environs, Baldwin says.

I can't help feeling the hairs rising on the back of my neck every time the MDC announces new plans for diversifying our economy ..all we do is borrow from Peter to pay Paul , or so it seems .

We have young people jumping from job to job because they heard they could make more money at another business or they get some sort of special perks so they leave a perfectly good job which could turn into a career for greener pastures without having to leave town or momandad's house ...and they learn nothing . Just enough to say they worked the job but not enough solve problems or advance .

We need to find people to fill the jobs and make a juicy labor market available to create more here in this sunny , warm , West Texas area.

Mostly we need to find a way to get them to stay .

If we can get them here.

Any Ideas ?

I think what the young people of today need to make them want to build a life here is a new convention center. And I think I know where to find a company to paint the thing once it's built...as long as we don't mind a "desert camo" motif.

Haw ! Touchy tonight , are we Shepherd !?! Hee .

1. With the lowest unemployment rate in the state, our labor pool is already depleted. Is $8/hour enough to attract NEW workers to staff Dean Baldwin and justify the 23 million dollar renovation cost?

2. If new workers do arrive in Midland, where will they live?


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