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2011_01.18 EDC Packet AGENDA KENNEDALE ECONOMIC DEVELOPMENT CORPORATION BOARD OF DIRECTORS REGULAR MEETING-JANUARY 18,2011 405 MUNICIPAL DR. -KENNEDALE MUNICIPAL BLDG. COUNCIL CHAMBERS 7:15 PM I. CALL TO ORDER IL ROLL CALL III. REGULAR ITEMS A. Introduction of new Board Member and Board Secretary B. Review and consider action to approve regular meeting minutes dated December 14, 2010. C. Review KEDC Financial Report. D. Consider authorizing Executive Director to execute an agreement with Brian Griffin Construction Group for the exterior remodel of existing structure with tenants, Surplus Warehouse and Dollar General. IV. STAFF ANNOUNCEMENTS/REPORTS A. Executive Director 1. TownCenter — Surplus Warehouse — Medical Office and Doctor visit ---- Section House — 9111 Memorial — Budget Overview 2. Sustainability Grant Status 3. Sites along Bowman Springs Road 4. UTA Citizen Opinion Survey 5. Logo and Tag Line V. EXECUTIVE SESSION A. The Economic Development Corporation will meet in closed session pursuant to Section 551.087 of the Texas Government Code to deliberate the offer of a financial or other R rt Sta ff e o . To the Members of the EDC4B Board Date: January 18, 2011 Agenda Item No: Subject: DISCUSS AND REVIEW NOVEMBER 2010 EDC FINANCIALS Originated by: Sakura Moten-Dedrick Summary: Budget/Amendment NIA Year-To-Date • Sales Tax: Increase in comparison over this time last year. This is due to the year-end audit process, in which the first two months of Oct (last fiscal year's Aug receipts) and Nov (last fiscal year's Sep receipts) not having been accrued back yet. While we do not see it, the actual accrued FY2009-10 Nov value was $27081 during this same time last year (see Monthly Graph, 3-Year Historical Graph, 10-Year Historical Data). • Investment Earnings: Due to declining interest rates, income continues to be much lower in comparison over this time last year. • Miscellaneous Income:No significant change. • Surplus Sales/Rentals: Increase in comparison over this time last year. Staff continues to receive income from Cypress Properties in a timely manner. We used to run two months in arrears, • Personnel: No significant change. • Supplies: Decrease in comparison over this time last year. Last year included an Aerial Map for approximately$5900. • Maintenance:No significant change. • Sundry: No significant change. • Debt: No significant change. • Transfers: Increase in comparison over this time last year. Represents the interest only payment reimbursed to the General Fund for the $2M CO Bond. FY2009/10 required only an interest payment in May. Beginning FY2010/11,payment will occur every Nov (interest only)and May (principal plus interest). • Capital: Increase in comparison over this time last year. Represents expenses towards Town Center Redevelopment that did not start until after this same time last year. Estimate Please note that the FY2009-10 figures are "unaudited" actual. We are currently in the process of year- end close with our auditors. Final figures will be brought forward to the Board in March 2011. Given estimated figures, the FY09/10 Actual anticipates an ending fund balance of approximately $293K, including the EDC Bond Fund Reserve. Excluding the reserve, the FY09/10 Actual anticipates and ending fund balance of approximately $173K. The FY2010-11 Estimate remains pretty much the same as what was budgeted due to us being so early in the fiscal year. * Please note that staff has included financials for Fund 19: EDC Capital Bond Fund ($2.0M) for the first time. We just completed a progress meeting this past week with our engineering firm, TNP, and are finalizing estimates. We have also identified several expenses that staff will be reallocating over the week. On the Dec 10 financials, you will see a portion of this reflected in the FY09/10 Actual. The remaining amounts will be reflected in financials for Jan 11. Recommended Motion: Staff recommends approval. Disposition by Board: : E f € E? f' f CITY OF KENNEDALE,TEXAS ANNUAL PROGRAM OF SERVICES INCOME STATEMENT 15:EDC4B FUND FY09-10 FY09.10 FY09.10 FY09-10 FY10.11 FY10.11 FY10-11 FY10-1T INCOME STATEMENT BUDGET AMENDED YTD NOV ACTUAL PROPOSED AMENDED YTD NOV ESTIMATE OPERATING REVENUES 567,171 511,788 178 629,107 587,149 587,149 99,579 587,149 OPERATING EXPENDITURES (744,417) (1,605,540) (103,899) (1,853,666) (608,508) (608,508) (232,422) (644,710) OPERATING INCOME/(LOSS) (177,246) (1,093,752) (103,721) (1,224,559) (21,359) (21,359) (132,843) (57,562) NONOPERATING REVENUES/(EXPENSES) INTEREST EARNINGS 20,000 20,000 547 1,958 4,200 4,200 94 4,200 TRANSFERS IN - - - - _ _ - (TRANSFER OUT) (10,000) (26,000) - (26,540) (154,619) (154,619} (39,809) {154,619) NET OPERATING INCOME/(LOSS) (167,246) (1,099,752) (103,174) (1,249,141) (171,778) (171,778) (172,558) (207,981) BEGINNING FUND BALANCE $ 1,595,012 $1,595,012 $1,595,012 $1,595,012 $ 345,871 $ 345,871 $ 345,871 $ 345,871 ENDING FUND BALANCE(EXCLUDING FUND 95) $ 1,437,766 $ 495,261 $i,491,838 $ 345,871 $ 174,093 $ 174,093 $ 173,313 $ 137,891 95:EDC46 RESERVE FUND $ 119,418 $ 119,418 $ 119,418 $ 119,668 $ 119,668 $ 119,668 $ 11,668 $ 119,668 ENDING FUND BALANCE(INCLUDING FUND 95) $ 1,557,184 $ 614,678 $1,611,256 $ 465,539 $ 293,761 $ 293,761 $ 292,980 $ 257,558 "EXEMPLIFYING EXCELLENCE' QTY OF KENNEDALE,TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY 15:EDC4B FUND FY09-10 FY09-10 PY09-10 FY09-10 FY10-11 HIGA l FY10-11 FY10.11 FY09.10 FY10.11 CATEGORY BUDGET AMENDED YTD NOV ACTUAL PROPOSED AMENDED YTD NOV ESTIMATE YTD% YTD% BEGINNING FUND BALANCE $1,595,012 $ 1,595,012 $ 1,595,012 $ 1,595,012 $ 345,871 $ 345,871 $ 345,871 $ 345,871 AD VALOREM TAXES - - - - 23,467 23,467 - 23,467 0,01/ 0.07o SALESIBEVERAGE TAXES 323,571 306,744 178 404,246 324,438 324,438 64,079 324,438 0.1% 19.8% INVESTMENT EARNINGS 20,000 20,000 547 1,958 4,200 4,200 94 4,200 2,7% 2.2% MISCELLANEOUS INCOME - - - 21,065 - - - - 0.0% 0.0% SURPLUS SALES/RENTALS 243,600 205,044 - 203,796 `239,244 239,244 35,500 239,244 0.0% 14.8% TOTAL REVENUES $ 587,171 $ 531,788 $ 725 $ 631,065 $ 591,349 $ 591,349 $ 99,673 $ 591,349 0.17. 1619% PERSONNEL - - - - - - - 0.0% 0.0% SUPPLIES 33,860 28,860 6,538 21,634 31,610 31,610 459 31,610 22.7% 1.5% MAINTENANCE 23,790 23,790 705 17,905 17,790 17,790 1,465 17,790 3.0% 8.2% SUNDRY 417,537 1,024,582 32,822 477,641 249,810 249,810 28,236 249,810 3.27. 11.3% DEBT 164,230 114,230 39,534 114,149 111,798 111,798 38,277 111,798 34.67. 34.2% TRANSFERS 10,000 26,000 - 26,540 154,619 154,619 39,809 154,619 0.07. 25.7% CAPITAL 95,000 414,078 24,300 1,222,338 197,501 197,501 €63,985 233,703 5.9% 83.07 TOTAL EXPENDITURES $ 744,417 $ 1,631,540 $ 101899 $ 1,880,206 $ 763,127 $ 763,127 $ 272,231 $ 799,329 6.4% 35.7% REVENUES OVER EXPENDITURES $ (157,246) $(1,099,752) $ (103,1741 $(1,249,141) $ .(171,778) $ (171,778) $ (172,558) $ (207,981) ENDING FUND BALANCE $1,437,766 $ 495,261 $ 1,491,838 $ 345,871 $...174,093 $ 174,093 $ 173,313 $ 137,891 ADJUSTMENTS FUND BALANCE AS%OF EXP 193,17. 30.4% 1435.9% 18.47. 22,8% 22.8% 63.77. 17.3% RESERVE(NO REQUIREMENT) $ - $ - $ - $ - $ $ - $ - $ RESERVE SURPLUS/(SHORTFALL) $11437,766 S 495.261 $ 1,491,,838 F., 345,871 $ 174,093 S 174,093 S 173.313 S 137,891 E f E ( I f [f[ t i "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDAtE,TEXAS ANNUAL PROGRAM OF SERVICES REVENUE LINE ITEM SUMMARY 15:EDC48 FUND FY09.10 FY09-10 FY09-10 FY09-10 FY10.11 FY10-11 FY10.11 FY10.11 FY09.10 FY10-11 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD NOV ACTUAL PROPOSED AMENDED YTD NOV ESTIMATE YTD% YTD 7. 4001-00-00 PROPERTY TAX-CURRENT YEAR - - - 0.07. 0.0% 4002-00-00 ASSESSMENTS-CURRENT YEAR 23,467 23,467 23,467 0.0% 0.0% AD VALOREM TAXES $ - $ $ $ - $ 23,467 $ 23,467 $ $ 23,467 010% 0.0% 4081-00-00 SALES TAX 323,571 306,744 178 404,246 324,43B 324,438 64,079 324,438 0.1% 19.8% 4082-00-00 MIXED BEVERAGE TAX - - - - - - - 0.07. 0.07. SALES/BEVERAGE TAXES $323,571 $ 306,744 $ 178 $404,246 $ 324,438 $ 324,438 $ 64,079 $ 324,438 0.1% 19187. 4401-00-00 INVESTMENT INCOME 20,000 20,000 547 11958 4,200 4,200 94 4,200 2.7% 2.2% INVESTMENT EARNINGS $ 20,000 $ 20,000 $ 547 $ 1,958 $ 4,200 $ 4,200 $ 94 $ 4,200 2,77. 2.2% 4409-00-00 MISCELLANEOUS INCOME 21,065 0.0% 0.07. 4415-00-00 INSURANCE REIMBURSEMENT - 010% 0.0% MISCELLANEOUS INCOME $ $ $ $ 21,065 $ $ $ $ 0.07. 0.07. 4805-M DO RENTAL FEES-SHOPPING CENTER 243,600 205,044 202,376 235,244 235,244 35,216 235,244 0-D% 15.0% 480600-00 RENTAL INSURANCE - - 1,420 4,000 4,000 284 4,000 0.0% 7.1% SURPLUS SALES/RENTALS $243,600 $ 205,044 $ - $203,796 $ 239,244 $ 239,244 $ 35,500 $ 239,244 0.07. 14.86/. TOTALREVENUES $587,171 $ 531,788 $ 725 $631,065 $ 591,349 $ 591,349 $ 99,673 $ 591,349 011% 16.9% TOTAL REVENUES(EXCLUDING INTERE: $567,171 $ 511,788 $ 178 $629,107 $ 587,149 $ 587,149 $ 99,579 $ 587,149 10%ADMIN CHARGE-GENERAL FUND 56,717 51.179 18 66,200 58,715 58.715 9,958 58,715 "EXEMPLIFYfNG EXCELLENCE" CRY Of KENNEDALE,TEXAS ANNUAL PROGRAM Of SERVICES EXPENDITURE LINE REM SUMMARY IS:EDC48FUND 01:ADMINISTRATION FY09.10 FY09.10 FY09.10 FY09-10 FY10.11 FY10.11 FY10.11 FY10.11 FY09.10 PY10-11 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD NOV ACTUAL PROPOSED AMENDED YID NOV ESTIMATE YTO% YTD 5101-01-00 SALARIES - - - _ _ _ _ - 0.07 0.07 5107-0€-00 OVERTIME 0.0% 0.07 5111-01-00 AUTO ALLOWANCE - - - - - - - 0.0% 0.0% 5114-01-00 LONGEVITY - - - - - - - 0.0% 0.0% 5115-01-00 RETIREMENT - - - - - - - 0.0% 0.011 5116-01-00 UNEMPLOYMENT INSURANCE - - - - - - - - 0.47. 0.0% 5117-01-00 FICA - - - - - - - - 0.076 0.0% 5118-0I-00 MEDICAL INSURANCE 5120-01-OD LIFE INSURANCE 5121-01-00 DENTAL INSURANCE - - - - _ - - - 0.0% 010% 5122-01-00 VISION INSURANCE - - - - _ _ _ - 0.07 010% 5190-01-00 VACATION/SICK/TERM/LEAVE ADJ 0.0% 010% PERSONNEL $ $ $ $ $ $ $ $ 0.0% 0.0% 5220.01-04 UNIFORMS 300 300 - - 300 300 - 300 0.0% 0.0% 5240-01-00 PRINTED SUPPLIES 25,000 22A00 6,465 20,646 22,000 22.000 459 22,000 29.4% 2.1% 5260-01-00 GENERAL OFFICE SUPPLIES 500 500 23 155 . :250 250 - 250 4.7% 0.0% 5261-01-00 POSTAGE 1,000 500 - - ..'500 500 - 500 0.0% 0.0% 5280-01-00 MINOR EQ0IP/SMALLTOOLS<$5K 11000 - - 196 - - - 010% 0.05F 5290-01-00 EYPENDABLE SUPPLIES 1.500 1,000 12 4,000 4,000 4,000 0.0% 0.07. SUPPLIES $ 29,3G0 $ 24,300 $ 6,488 $ 21,009 $ 27,050 $ 27,050 $ 459 $ 27,050 26.77. 1.7% 5403-01-00 BUILDING MAINTENANCE - - - 4,376 - - - - 0.0% 0.0% 5440-01-00 OFFICE£OUIP/SOFTWARE MA€NT 0.0% 0.09, MAINTENANCE $ $ - $ $ 4,376 $ - $ $ - $ - 0,07. 0.0% 5501-01-00 ADVERTISING 1 1,000 5,000 - 2,010 5,000 5,000 4,000 5,000 0.0% 80.07. 5510-01-00 ASSOC DUES/PUBLICATIONS 1,000 200 - 3,475 -3,375 3,375 250 3,375 010% 7.4% 5512-01-00 CONTRACTUAL SERVICES - - - - - - - - 0107. 0.07 5525-01-00 TRAINING/SEMINARS 2,500 I,DOD - - .1.000 1,000 - 1,000 0.0% 0.0% 5565-01-00 LEGAL SERVICES 40,000 40,000 3,139 25,322 25,000 25,E 815 25,000 7.8% 313% 5567-01-00 AUDIT SERVICES 4,000 4,000 - 1,500 1.500 1,500 - 1,500 0.0% 0.0% 5569-0 1-00 IT SUPPORT - - - - - - - - 0.0% 0.0% 5570-01-00 SPECIAL SERVICES 78,920 103,420 18,646 162,725 95,420 95.420 8,740 95,420 18.07. 9.2% 5575.01-00 EQUIPMENT RENTAL - - - 358 - - - - - 0.07. 0.0% 5578.01-00 TRAVEL 6,000 700 - 122 - 700 700 - 700 0.07 0.0% 5580.01-00 ENGINEERING SERVICES - - - - - _ - 0,0% 0.07 5565.01-00 TELEPHONESERV3CES - - - - - _ _ _ 0,0% 0.07 5595-01-00 ADMIN CHARGE-GENERAL FUND 56.717 52,862 4,683 66,200 58,715 58,715 91958 58.715 8.9% 17.0% SUNDRY $ 200,137 $ 207,162 $ 26,468 S 261,711 $ 190,710 $ 190,710 $ 23,763 $ 190,710 12.87. 12.5% 5610-01-00 VISUAL GRANT 50,000 - - - - - - - 0.0% 0-0% 5615-01-00 FUNCTIONAL GRANT - - - - - - - - 0.0% 010% 5625.01-00 ISSUANCE COST 0.07 04% DEBT $ 50,000 S $ - S $ - $ - $ $ 0.0% 0.07. 5701-01-00 TRANSFER OUT-GENERAL FUND 10,000 LOCO - - - - - 010% 0.0% 5714-01-00 TRANSFER OUT-DEDICATION FUND - - - - - - - 0.0% OA% 5795-01-00 TRANSFER OUT-EDC RESERVE FUND 0.0% 010% TRANSFERS $ 10,000 S 1,000 $ - $ - $ - $ - $ $ 0.07. 0.07. 5600-0€-00 LAND 25,000 - - 380,984 .10,000 10.000 282 10,000 0.0% 2.87 '.. 5813-01-00 KENNFDALE ENTRANCE SIGN 45,000 45,000 - - 45,000 45,000 - 45,000 0.0% 0.0% 5820-01-00 BUILDING IMPRo VFM£NT 25,000 369,078 24,300 351,004 15,000 15,000 15,000 6.6% 0.0% CAPITAL $ 95.000 $ 414,078 $ 24,300 $ 731,988 $ .70,000 $ 70,000 $ 282 $ 70,000 519% D.4% TOTAL EXPENDITURES $ 384,437 $ 646,560 $ 57,256 $1,019,084 S 287,760 $ 287,760 $24,504 $ 287,760 819% 8.5% "EXEMPLIFYING EXCELLENCE" CL w crJ C� ZD a r � Q � � o � o cv t/1 Qj a ti C 0 o a o � o CL L 1 F-- Q. u.l AO V! 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W C C U z. fA N + W L U ba 8 U X a ¢�¢ H sae c o " c c a�i v Q u o c IQ- d H era ':`.Q ? iro u .n u"! l9 a O m oa[ w ) a° CITY OF KENNEDALE,TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY IS:EDC4B FUND 01:ADMINISTRATION 03:DEBT SERVICE FY09-10 FY09-10 FY07-10 FY09.10 FY10.11 FY10-11 FY10-11 FY10.II FY09-10 FY10AI ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD NOV ACTUAL PROPOSED AMENDED YTD NOV ESTIMATE YTD% YTD% 5620-01-03 ISSUANCE COSTS 0.0% 0.0% 5621-01-03 PAYING AGENT FEES 0.0% 0.0% 5643-01-03 2007$1.2M TAX BON D-INTFRFST 79,230 79,230 39,534 79,149 76,798 76,798 38,277 76,798 49.9% 49.8% 5643-01-03 2007$1.2M TAX BON D-INTFRFST 35,000 35,000 - 35,000 35,000 35,000 - 35,000 OA% 0,0% DEBT $ 114,230 $ 114,230 $ 39,534 $ 114,149 $ 111,798 $ 111,798 $ 38,277 $ 111,798 34.6% 34.2% 5702-01-03 TRANSFER OUT-DEBT SERVICE FUND - 25,000 - 26,540 154,619 154,619 39,809 154,619 0.07o 25.7% TRANSFER $ - $ 25,000 $ - $ 26,540 $ 154,619 $ 154,619 $ 39,809 $ 154,619 0.0% 25.7% TOTAL EXPENDITURES $ 114,230 $ 139,230 $ 39,534 $140,689 $ 266,416 $ 266,416 $ 78,087 $266,416 28.4% 29.3% 6 I [t� L "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE REM SUMMARY 15:EDC4B FUND 02:TOWN SHOPPING CENTER FY09-10 FY09-10 FY09-10 FY09-10 FY10-11 FYID-11 FY10-11 FY10.11 FY09-10 FY10AI ACCOUNT ACCOUNT NAME BUDGET AMENDED YTO NOV ACTUAL PROPOSED AMENDED YTD NOV ESTIMATE YTD% YTD% 5280-02-00 MINOR EQUIP/SMALLTOOLS<$5K 4,560 4,560 50 625 4.560 4,560 4,560 1.1%p 0.07. SUPPLIES $ 4,560 $ 4,560 $ 50 $ 625 $ 4,560 $ 4,560 $ $ 4,560 1.1% 0.0% 5403-02-00 BUILDING MAINTENANCE 23,790 23,790 705 13,528 17,790 17,790 1,465 17,790 3.0% 8.2% MAINTENANCE $ 23,790 $ 23,790 $ 705 $ 13,528 $ 17,790 $ 17,790 $ 1,465 $ 17,790 3.0% 8.2% 5501-02-00 ADVERTISING 0.0% 0.0% 5510-02-00 ASSOC DUESJPUBLICATiONS 0.0%a 0.0% 5512-0200 CONTRACTUAL SERVICES 0.011 0.0% 5530-02-00 ELECTRIC SERVICES 7,800 7,800 132 2,681 7,800 7,800 72 7,800 1.7% 0.9% 5545-02-00 INSURANCE-PROPERTY - - - 3,779 4,000 4,000 3,401 4,000 0.0% 85.0% 5565-02-00 LEGAL SERVICES - - 3,534 - - - - - #DIV/01 0.01 5570-02-00 SPECIAL SERVICES 9,600 9,600 - 10,137 6.000 6,000 1,000 61000 OA% 16.7% SUNDRY $ 17,400 $ 17,400 $ 3,666 $ 16,596 $ 17,800 $ 17,800 $ 4,473 $ 17,800 21.1% 25,1% TOTAL EXPENDITURES $ 45,750 $ 45,750 $ 4,421 $ 30,750 $ 40,150 $ 40,150 $ 5,938 $ 40,150 9.7% 14.8% "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE,TEXAS ANNUAL PROGRAM OF SERVICES EXPENDITURE LINE ITEM SUMMARY I&EDC48 FUND 03:TOWN CENTER REDEVELOPMENT FY09-10 FY09-10 FY09-10 FY09-10 FY10.11 FY10-11 FY10.11 FY10-11 FY09.10 FY1R-11 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD NOV ACTUAL PROPOSED AMENDED YID NOV ESTIMATE YTD% YTD% 5570.0300 SPECIAL SERVICES 100,000 266,667 - 117,265 0.0% 0.017 5579-03-00 ARCHITECT/DESIGN SERVICES 75,000 266,667 2,688 62,552 26,000 26,000 26,000 1.07. 0.01/ 5580-03-00 ENGINEERING SERVICES 25,000 266,667 - 19,516 €5,300 15,300 15,300 0.0% 0.0% SUNDRY $ 200,000 $ 800,000 $ 2,688 $ 199,334 $ 41,300 $ 41,300 $ $ 41,300 0.3% 0.0% 5847-0300 CONSTRICTION 490,350 127,501 127,501 163,703 163,703 0.0% 128.4% CAPITAL $ S $ $ 490,350 $ 127,501 $ 127,501 $163,703 $ 163303 0.0% 128.4% $ 200,000 $ 800,000 $ 2,688 $ 689,683 $ 168,801 $ 168,801 $163,703 $ 205,003 0,3% 97.07. "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE TEXAS ANNUAL PROGRAM OF SERVICES INCOME STATEMENT 19:EDC48 CAPITAL BOND FUND FY09-10 FY09-10 FY09-10 FY09.10 FY10.11 FY10-11 FY10-11 FY10.11 INCOME STATEMENT BUDGET AMENDED YTO NOV ACTUAL PROPOSED AMENDED YTD NOV ESTIMATE OPERATING REVENUES 2,006,635 OPERATING EXPENDITURES (555,622) (262,667) (262,667} (202,819) (262,667) OPERATING INCOME/(LOSS) 1,451,013 (262,667) (262,667) (202,819) (262,667) NONOPERATING REVENUES/(EXPENSES) INTEREST EARNINGS 2,278 500 500 473 500 TRANSFERS IN - (TRANSFER OUT) NET OPERATING INCOME/(LOSS) 1,453,291 (262,167) (262,167) (202,346) (262,167) BEGINNING FUND BALANCE $ $ $ $ $1,453,291. $1,453,291 $1,453,291 $1,453,291 ENDING FUND BALANCE $ $ $ $1,453,291 $1,191,125 $1,191,125 $1,250,946 $1,191,125 "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE TEXAS ANNUAL PROGRAM OF SERVICES FUND SUMMARY BY CATEGORY 19:EDC46 CAPITAL BOND FUND FY09.10 FY09-10 FY09.10 FY09-10 FY10.1I FY10-11 FY10-11 FY10-11 FY09.10 FY10.11 CATEGORY BUDGET AMENDED YTD NOV ACTUAL PROPOSED AMENDED YTD NOV ESTIMATE YTD% YTD% BEGINNING FUND BALANCE $ $ $ $ $ 1,453,291 $1,453,291 $1,453,291 $1,453,291 INVESTMENT EARNINGS 2,278 500 500 473 500 0.0% 94.7% TRANSFERS 2,006,635 - - - - 0.07. 0.0% TOTALREVENUES $ $ $ $2,008,913 $ 500 $ 500 $ 473 $ 500 0.07. 94.7% MAINTENANCE 873 - - - - 0.07. 0.0% SUNDRY 22,790 28,143 28,143 30,074 28,143 0.0% 106.97. CAPITAL 531,959 234,524 234,524 172,746 234,524 0.07. 73.7% TOTAL EXPENDITURES $ $ $ $ $55,622 $ 262,667. $ 262,667 $ 202,819 $ 262,667 0.0% 77.2% REVENUES OVER EXPENDITURES $ $ $ $1,453,291 $ {262,167} $ (262,167) $ (202,346) $ (262,167( ENDING FUND BALANCE $ $1,453,291 $ 1,191,125 $1,191,125 $1,250,946 $1,191,125 ADJUSTMENTS FUND BALANCE AS%OF EXP 0.0% 261.6% 453.5% 453.5% 616.8% 453.5% RESERVE(NO REQUIREMENT) $ $ $ $ $ $ RESERVE SURPLUSASHORTFALL) $ $1,453,291 $ 1,191,125 $1,191,125 $1,250,946 $1,191,125 ( "EXEMPLIFYING EXCELLENCE" CITY OF KENNEDALE,TEXAS ANNUAL PROGRAM OF SERVICES REVENUE/EXPENDITURE LINE ITEM SUMMARY 19:EDC4B CAPITAL BOND FUND FY09.10 FY09-10 FY09-10 FY09.10 FY10.11 FY10-11 FY10-11 FY10.11 FY09-10 FY10-11 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD NOV ACTUAL PROPOSED AMENDED YTD NOV ESTIMATE YTD% YTD% 4401-0000 INVESTMENT INCOME 2,278 500 500 473 500 0.0% 94.7% INVESTMENT EARNINGS $ $ $ $ 2,278 $ 500 $ 500 $ 473 $ 500 0.0% 94.7% 4913-00-00 TRANSFER IN-CAPITAL BOND FUND 2,006,635 0.0% 0.07 TRANSFERS $ $ $ $2,006,635 $ $ $ $ 0,0% 0.0% TOTALREV€NUES $ $ $ $2,008,9T3 $ $00 $ 500 $ 473 $ 500 0.07. 94.7% 19:EDC4B CAPITAL BOND FUND O1:TOWN CENTER REDEVELOPMENT FY09.10 FY09.10 FY09.10 FY09-10 FY10-11 FY10.11 FY10-11 FY10.11 FY09.10 FY10-11 ACCOUNT ACCOUNT NAME BUDGET AMENDED YTD NOV ACTUAL PROPOSED AMENDED YTD NOV ESTIMATE YTD% YTD% 540301-00 BUILDING MAINTENANCE 873 0.01/ 0.0% MAINTENANCE $ $ $ $ 873 $ $ $ $ 0.0% 010% 5570-01-00 SPECIALSERVICES 21,956 0.0% 0.0% 5579-01-00 ARCHITECT/DESIGN SERVICES - - 9,257 - 0.0% #DIV/O! 888001-00 ENGINEERING SERVICES 834 28,143 28,143 20,817 28,143 0.0% 74.0% SUNDRY $ $ $ $ 22,790 $ 28,143 $ 28,143 $ 30,074 $ 28,143 0.0% 10619% 5800-01-00 LAND - - - 548 - 0.0% #DIV/01 5847-01-00 CONSTRUCTION 531,959 234,524 234,524 172,198 234,524 0.0% 73.4% CAPITAL $ $ $ $ 531,959 $ 234,524 $ 234,524 $172,746 $234,524 0,0% 73.7% TOTAL EXPENDITURES $ $ $ $ 555,622 $ 262,667 $ 262,667 $202,819 $262,667 0.0% 77.2% "EXEMPLIFYING EXCELLENCE" Agreement Between Owner and Contractor where the ,basis of payment is a STIPULATED SUNS AGREEMENT made as of the 17'h day of December in the year of Two Thousand and Ten BETWEEN the Owner: Ba�j Hatt,Executive Auector l�etanedai��congm�c Deuetopment Corporation '. �Q5 T%funrctpal Dave ��ezine�&le TeXas'7G�1�© ; �bhart ct o;k�ennedale com and the Contractor: �A 4 t3 Ga£ftn,1'restdent �Gaffin Gans�uctton Group,Tnc P to Boy 215b Gxi}nbury,Texas 76Q48` b 'a�fitj,.C��aff�narchitects'cnm For the following Project: enne a Town Center,Build#ng #1 Th1 SPrayeetGonsistoftfrecxter�or�eodelapanextstmgstnicturethatisownedh thesya ufKennedate,Eco►rgituc y ry 1)et+elopn#e AEC orpora#ion This structure ctiiiently houses tenants,on the North end is Surplus Warehouse"and on the 8auth end is"Dollar General" The:existing tenants will 44q<tOf&open and operate their Businesses during then normal posted hours ofoperation The strucie sha11 have approlrriately a 6' a"sloped xoof oxlend��tg tht fu111angth td) tl�e bult�ing�vrtt► �exposed rafters on the underside aqd�Sjs T;t 11 expt?sed decking that;will be stained This 1}Fi1l"bc covered with pie finisk�e�l rrietal roQ�Ag The cxisting masonry Qn this building wall be covered with a planer stCim C9�t on the Yes#eleva#ran�oll�ng akound the corners on both ends 2S' The existing vertical plaster pi o�ected facade will also be pravtded��th.a�kQn coat splastsi while the undersde of this existing overhang will be painted a color as selected by the gwiiei The rnasonry that is reiain,tttg will he panted.a color uS selected by the Owner The Architect is: r an O GaffeAxch , itei Iiic4 fl $3ox 2156 Granbuiy,Texas aGQ48 Brian Q Gaffin Pxestc�ent b&fut atftnarcfiitectsuoin 81'7 2b6 AGSM The Owner and Contractor agree as set forth below. ARTICLE 1 THE CONTRACT DOCUMENTS The Contract Documents consist of this Agreement, Sheets A 1 and A2 as drawn by Brian O. Gaffin,Architects,Inc. as well as any addenda issued prior to execution of this Agreement,form the Contract Documents, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations,representations or agreements, either written or oral.An enumeration of the Contract Documents,other than Modifications,appears in Article 9. ARTICLE 2 THE WORK OF THIS CONTRACT The Contractor shall execute the entire Work described in the Contract Documents,except to the extent specifically indicated in the Contract Documents to be the responsibility of others,or as follows: No aceessable routes,Teas l�.ccessrbalrty requrreruents,jrght fixtures,aium>uum frames or gla�mg,du�pster dates,�� buildtng,pet'mrts,solves,tax,per'�onnance or pny�neart bonds shallbe,paxt of tltrs�gr�exnent . .. .:, '' ARTICLE 3 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION § 3.1 The date of commencement is the date from which the Contract Time of Section 3.2 is measured,and shall be the date of this Agreement,as first written above,unless a different date is stated below or provision is made for the date to be fixed in a notice to proceed issued by the Owner. (Insert the date of commencement, if it differs f•oru the date of this Agreement or, if applicable, state that the date will be fixed in a notice to proceed.) r Date m yrhich this Agreement�s;stgned,work slia11 begin no,lat�t titan,3©days,after!�o:ttlanencement to�'r oceed ,, ,;: Unless the date of commencement is established by a notice to proceed issued by the Owner,the Contractor shall notify the Owner, in writing not less than thirtydays before commencing the Work to permit the timely filing of mortgages,mechanic's liens and other security interests. § 3.2 The Contractor shall achieve Substantial Completion of the entire Work not later than (90)nurety days after tfre�ate pf�ouaane�lcernerrt (Insert the calendar date or number of calendar days after the date of commencement.Also insert any requirements for earlier Substantial Completion of certain portions of the Work, if not stated elsewhere in the Contract Documents) Portion of Work Substantial Completion date Genexal Gonstructton of.Bildmg#1 4 Monthsfrom the time tYrrs Agteer►teutis signed subject to adjustments of this Contract Time as provided in the Contract Documents. (Insert provisions, if any,for liquidated damages relating to failure to complete on time.) �tslutdated damages are not part oftlxrs Egreement ARTICLE 4 CONTRACT SUM § 4.1 The Owner shall pay the Contractor in current funds for the Contractor's performance of the Contract the Contract Sum of r Ong Hundred N1rtBty Seven Thousand Sax Hundred Seventy dof Ials and no/110's ($ 199,67 ODD),subject to additions and deductions as provided in the Contract Documents. § 4.2 The Contract Sum is based upon the following alternates,if any,which are described in the Contract Documents and are hereby accepted by the Owner: (State the numbers or other identification of accepted alternates. If decisions on other alternates are to be made by the Owner subsequent to the execution of this Agreement, attach a schedide of such other alternates showing the arnountfor each and the date until which that amount is valid.) Add Alternates Stairdrn seam V5 R anal aoofin Add$13,1)00 Aexaove rind raplace ail.of the aluminurn..frames.ad,.glaz�ng Add$6,1, 94 .:... § 4.3 Unit prices,if any,are as follows: -2- Description Units Price($0.00) ARTICLE 5 PROGRESS PAYMENTS § 5.1 Based upon Applications for Payment submitted by the Contractor to the Owner,and upon Project Applications and Certificates for Payment issued by the Contractor and Architect,the Owner shall make progress payments on account of the Contract Sum to the Contractor as provided below and elsewhere in the Contract Documents. § 5.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month,or as follows: § 5.3 Provided an Application for Payment is submitted to the Owner not later than the ), §fl day of a month,the Owner shall make payment to the Contractor not later than theeenfha day of the Csame month. If an Application for Payment is received by the Owner after the application date fixed above,payment steal I be made by the Owner not later than kF en (;1, )days after the Owner receives the Application for Payment. § 5.4 Each Application for Payment shall be based upon the Schedule of Values submitted by the Contractor in accordance with the Contract Documents.The Schedule of Values shall allocate the entire Contract Sum among the various portions of the Work and be prepared in such form and supported by such data to substantiate its accuracy as the Construction Manager or Architect may require. This schedule,unless objected to by the Construction Manager or Architect, shall be used as a basis for reviewing the Contractor's Applications for Payment. § 5.5 Applications for Payment shall indicate the percentage of completion of each portion of the Work as of the end of the period covered by the Application for Payment. § 5.6 Subject to the provisions of the Contract Documents,the amount of each progress payment shall be computed as follows: § 5.6.1 Take that portion of the Contract Sum properly allocable to completed Work as determined by multiplying the percentage completion of each portion of the Work by the share of the total Contract Sum allocated to that portion of the Work in the Schedule of Values,less retainage of Ten percent,( IQ,QQ%p3).Pending final determination of cost to the Owner of changes in the Work,amounts not in dispute may be included as provided in Section 7.3.7 of the General Conditions; § 5.6.2 Add that portion of the Contract Sum properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the completed construction(or, if approved in advance by the Owner,suitably stored off the site at a location agreed upon in writing), less retainage of en percent{ TO QOP�� ); § 5.6.3 Subtract the aggregate of previous payments made by the Owner;and § 5.6.4 Subtract amounts, if any,for which the Architect has withheld or nullified a Certificate for Payment as provided in Section 9.5 of the General Conditions. § 5.7 The progress payment amount determined in accordance with Section 5.6 shall be further modified under the following circumstances: y re testing„ounacceptable ponditrons as de,#,ermuied-Y,410 rfessronai testing company § 5.7.1 Add,upon Substantial Completion of the Work,a sum sufficient to increase the total payments to Ninety percent { ;9Q 00% )of the Contract Sum, § 5.7.2 Add,if final completion of the Work is thereafter materially delayed through no fault of the Contractor,any additional amounts payable in accordance with Section 9.10.3 of the General Conditions. § 5.8 Reduction or limitation of retainage,if any,shall be as follows: i -3 - (If it is intended,prior to Substantial Completion of the entire Work, to reduce or limit the retainage resulting from the percentages inserted in Sections 5.6 1 and 5.6 2 above, and this is not explained elsewhere in the Contract Documents, insert here provisions for such reduction or limitation) ARTICLE 6 FINAL PAYMENT Final payment,constituting the entire unpaid balance of the Contract Sum,shall be made by the Owner to the Contractor when(1)the Contract has been fully performed by the Contractor except for the Contractor's responsibility to correct nonconforming Work as provided in Section 12.2.2 of the General Conditions and to satisfy other requirements, if any,which necessarily survive final payment;and(2)a final Project Certificate for Payment has been issued by the Contractor;such final payment shall be made by the Owner not more than 15 days after the issuance of the final Project Certificate for Payment,or the Final Building Inspection has been completed as follows: 1.5 days after Frna�Satisfactory Burldruglnspecton by the City ofKennedale,( TOT floe sauce as the `Certificate of Occupancy")or uvrihm 3Q days,o Fwotk,l3efng performed ,accordance with the Construction.Documents ARTICLE 7 MISCELLANEOUS PROVISIONS § 7.1 Where reference is made in this Agreement to a provision of the General Conditions or another Contract Document,the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents. § 7.2 Payments due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or in the absence thereof,at the legal rate prevailing from time to time at the place where the Project is located. (Insert rate of interest agreed upon, if any.) (Usury laws and requirements under the Federal Truth in Lending Act, similar state and local consumer credit laws and other regulations at the Owner's and Contractor's principal places of business, the location of the Project and elsewhere may affect the validity of this provision. Legal advice should be obtained with respect to deletions or modifications, and also regarding requirements such as written disclosures or waivers) § 7.3 Temporary facilities and services: (Here insert temporary facilities and services which are different from or in addition to those included elsewhere in the Contract Documents.) �All water__power acid telephone services will be provrdecl and paid by the Owner throughout Construction Some WQr tray deed to be done,: n Sundays i § 7.4 Other Provisions: (Here list any special provisions affecting the Contract.) Allpwanees include�anthis Agreement are as follows Permitsl),400 Pioyaded by the Owner ARTICLE 8 TERMINATION OR SUSPENSION § 8.1 The Contract may be terminated by the Owner or the Contractor as provided in Article 14 of the General Conditions. § 8.2 The Work may be suspended by the Owner as provided in Article 14 of the General Conditions. ARTICLE 9 ENUMERATION OF CONTRACT DOCUMENTS § 9,1 The Contract Documents,except for Modifications issued after execution of this Agreement,are enumerated E as follows: c § 9.1.1 The Agreement is this executed Standard Form of Agreement between Owner and Contractor. -4- § 9.1.2 The General Conditions are the General Conditions of the Contract for Construction. § 9.1.3 The Supplementary and other Conditions of the Contract are those contained in the Project Manual dated DoT ArrlcABL § 91.4 The Specifications are those contained in the Project Manual dated as in Section 9.1.3, and are as follows: (Either list the Specifications here ar refer to an exhibit attached to this Agreement) NOT APFLICABLYE. ... ;; § 9.1.5 The Drawings are as follows,and are dated j N/A j unless a different date is shown below: (Either list the Drawings here or refer to an exhibit attached to this Agreement) REFER TO ARTICLE ONE-CONTRACT DOCUMENTS is this Agreement § 9.1.6 The Addenda, if any,are as follows: Number Date Pages Portions of Addenda relating to bidding requirements are not part of the Contract Documents unless the bidding requirements are also enumerated in this Article 9. § 9.11 Other documents, if any, forming part of the Contract Documents are as follows X411 Owr and Tsrnantrisurance's shall_be provided to the Contractor prror_to Caxnmencement of Gonstruct�on_,„,, This Agreement is entered into as of the day and year first written above and is executed in at least two original copies of which one is to be delivered to the Contractor,and one to the Owner. CONTRACTOR: Date: I I By: Brian O. Gaffin,President Gaffin Construction Group, Inc OWNER: Date: I I By: Bob Hart,Executive Director Kennedale Economic Development Corporation -5- � f 1 � a ®®I 1 c ao m 'm 0 � m Co v a �oF2 A f fmll m C a � p Z � o to a tlj X Z i N P a a o � m O m A m IQ I D V LUK-9N qvoqL smi 'AunONWID '9912 X08 'O'd -f 10311HOUV '*VTV 'NlAzlVE) NVIHEI 3 alueoumol elepouuGm [Mos. 11 if iib i I i t it it IJ U U Ll t I ------------- --------- --------------- E21 01-1 -1 V SIU13 w U) O li d... .. .. .... .... -—-—-—-—- - -—-—-—-—-—-—-—-—-—- zol D I 5LU mo c r The TownCenter budget projected budget follows: Project Element Public Private Constructon to date 789,000 630,000 Sign, water tower, courts 20,000 50,000 Building demo 60,000 Building facade 211,000 Sustainability grant 200,000 Remaining infrastructure 37,500 37,500 Section house 250,000 9-11 Memorial 75,000 1,371,500 988,500 E E i �i. L- Yl'olu - I January 3, 2011 Mr. Bob Hart Executive Director Kennedale Economic Development Corporation 405 Municipal Dr. Kennedale,TX 76060 Dear Mr. Hart, I am pleased to submit a proposal and outline the plans that l have for the property at 1000 E. Kennedale Parkway, Kennedale,TX as requested in your ernail of December 22, 2010. The project has two parts. The first is to build a manufacturing facility for Grover Corporation's Texas operations and the second is to develop the remainder of the site not used for Grover. Two Limited Liability Corporations will be created to facilitate the different requirements of each part. While these entities have not been established, I expect that the names will be 1000 Kennedale LLC and 1000 Kennedale Development LLC. As the sole shareholder and Chairman of Grover Corporation I have tite authority to enter into any agreements necessary to complete this project including a long-term lease agreements between Grover Corporation and 1000 Kennedale, LLC. I can be reached at: 2759 S. 2811, Street Milwaukee, Wl 53215 414-755-4010 sbnnghart @gravercorp.coni Thank you for your consideration. I look forward to finalizing the details and getting to work creating an exciting development for the City of Kennedale and a new home for Grover in Texas. , Sincerely, ' Stuart Banghart Chairman Grover Corporation Executive Summary Grover Corporation is a manufacturer of piston rings for industrial and large engine applications. Grover sells to original equipment manufacturers and aftermarket customers throughout the world. Significant customers are in hydraulics, automatic transmissions, air and gas compressors and engine manufactures in railroad and oil and gas transmission. Headquarters and manufacturing are in Milwaukee Wisconsin with manufacturing in Kennedale Texas. Grover currently employs 50 people in Milwaukee and 17 in Kennedale. The vision for this development is to immediately build a 25,000 square foot manufacturing facility for Grover Corporation. This site will sit on approximately 1.5 to 2.0 acres of the 4.5-acre site.The Grover building will be located on what is currently the back of the property near to the railroad tracks.This leaves the areas facing Kennedale Parkway and the proposed new Little School Road for tenants that benefit from street exposure and access. It is anticipated that there will be a mix of buildings consisting of single facility buildings and multi-tenant light manufacturing buildings.There is the potential of attracting a chain restaurant for the corner of Kennedale Parkway and Little School Rd.A complete site plan will be made upon awarding of the RFP. The facility significantly increases capacity for Grover Corporation and as a result it is anticipated that the company will add 10 new jobs after occupying the new facility. Additionally this project constitutes a tong-term commitment to the city of Kennedale and Grover will make significant capital investments in this facility over the next 5 years.The immediate investment will be approximately$1.7 million to acquire the land and construct the building. The total after the entire site is developed is anticipated to be in excess of$5 million with combined employment in excess of 100 people. Immediately upon receipt of approval and financing commitment work on a comprehensive site plan and site engineering and design of the Grover building will commence. Ground breaking should occur 90 to 120 days from that point and occupancy will occur late in 2011.At the same time a fee developer will be engaged to solicit tenants for the remainder of the parcel. Timing of the development will depend on interest and market conditions. Project Description As a part of the closing process the site will be divided into two parts. Parcel one will take between 1.5 acres and 2 acres bordered by the H&TC Railroad and the new Little School Rd. 1000 Kennedale LLC will own this parcel and will develop the parcel for Grover Corporation. a) The Grover building will initially be 25,000 square feet in size and will face Little School Rd. The building will meet the architectural requirements of the city and will incorporate the design elements of the new Town Square development on Kennedale Parkway. Grover will use the building for light manufacturing of piston rings. The building will have 5,000 square feet of office and quality/inspection space. The office and manufacturing areas will be air-conditioned and will be built to LEED green building standards. It is anticipated that there will be parking for office employees and visitors in the front of the building and employee parking and loading docks in the rear.Access to the rear of the building will be on the south edge of the property off of Kennedale Parkway. This plan leaves room for expansion of the plant in the future on the back or side of the building. Maximum building size will be 50,000 square feet, Initially Grover will hire 10 additional employees after occupancy and will add additional employees, as business conditions require. Parcel two will is the area of the site facing Kennedale Parkway and Little School Road.This parcel will be developed with the intent of attracting tenants who value exposure to traffic. For example, businesses that serve industrial customers in wholesale distribution, fabrication,repair and maintenance, cleaning or similar industries are potential targets. Upon approval by the KEDC a site plan will be developed to create a site plan that focuses on light industrial use. It is anticipated that with the addition of Little School Road that the front portion of the property may attract a retail business. b) This site is intended for light industrial use.The Grover building will be a combination of brick or stone facade front with either half block and steel siding or tilt-up concrete panels away from the street. The general design will fit the style of the Kennedale Town Center including the buildings facing Kennedale Parkway. c) It is the intention of the City of Kennedale to increase manufacturing capacity in the city while also improving the look and feel of the structures for residents and visitors while adding to the tax base.This plan address each issue by adding new jobs, new attractive manufacturing facilities and creating an attractive new development on Kennedale Parkway.This development will be an important addition to the city at the intersection of two major thoroughfares. Financing Plan The purchase of the property and the construction of the building will be financed by a loan from the Texas Leverage Fund.The loan application has been submitted and approved. Source and Use of Funds Kennedale Texas Facility Use of Funds: Land Cost 325,000 Site Improvements Landscaping, etc 75,000 Building 25000 sq. Ft. X $40 Cost per sq. ft. 1,000,000 Equipment Mori Seiki 550,000 Other Equipment Racking, Mat'l handing, etc 200,000 Total 2,150,000 Sources of Funds: Kennedale Economic Development Corporation 1,700,000 Grover Corporation Equity 450,000 Total 2,150,000 Financial information Please see attached GROVER CORPORATION COMPARATIVE BALANCE SHEET December 31,2010 and 2009 Updated 12!2812010 ForecastlActual Actual 2010 2009 ASSETS CURRENT ASSETS Cash 20,000 27,521 Securities 5,175 Accounts Receivable-Net 1,343,000 854,572 Inventories 1,630,000 1,511,173 Prepaid Expense 65,000 _91,865 Total Current Assets 3,058,000 2,490,306 PROPERTY&EQUIPMENT Cost 4,749,077 4,549,077 Accumulated Depreciation 3,9( 62,432 (3,734,432) Net Book Value 786,645 814,645 OTHER ASSETS Note Receivable 370,000 388,500 Prepaid Maintenance 90,000 161,449 Total Other Assets 460,000 549,949 TOTAL ASSETS 4,304,645_ 3,854,900_ LIABILITIES AND EQUITY CURRENT LIABILITIES Line of Credit 1,110,000 800,000 Accounts Payable 488,313 458,302 Accrued Payroll 180,000 140,903 Other Accrued Expenses 125,000 47,403 Current Portion of Notes Payable 240,000 254,157 Total Current Liabilities 2,143,313 1,700,765 LONG TERM LIABILITIES Notes Payable-Bank 1,482,198 1,725,549 Notes Payable-Investors 10,000 Less: Current Portion of Notes Payable (240,000) (254,157) Total Long Term Liabilities 1,242,198 1,481,352 Total Liabilities 3,385,511 3,182,117 EQUITY Common Stock 763,000 763,000 Treasury Stock (75,000) (75,000) Accumulated Comprehensive Income (3,754) Retained Earnings 231,134 (11,463) Total Equity 919,134 672,783 TOTAL LIABILITIES S EQUITY 4 304,645 3,864,900 GROVER CORPORATION COMPARATIVE INCOME STATEMENT FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 Updated 12/28/2010 ForecastlActual Actual %of Sales 2010 2009 2010 2009 SALES: 8,341,253 5,715,736 100.0% 100.0% COST OF SALES 6,547,052 4,592,847 78.5% 80.4% GROSS PROFIT 1,794,201 1,122,889 21.5% 19.6% SELLING &ADMINISTRATIVE EXPENSES 1,462,869 1,220,988 17.5% 21.4% INCOME FROM OPERATIONS 331,332 (98,099) 4.0% -1.7% DIVIDEND INCOME 0 73 0.0% 0.0% INTEREST INCOME 18,500 18,500 0.2% 0.3% INTEREST EXPENSE (154,061) (129,999) -1.8% -2.3% GAIN ON SALE OF EQUIPMENT 0 27,115 0.0% 0.5% LOSS ON SALE OF SECURITIES (3,229) 0.0% 0.0% OTHER INCOME 200,055 500 2.4% 0.0% NET OTHER EXPENSE 61,265 (83,811) 0.7% -1.5% NET INCOME BEFORE TAX 392,597 (181,910) 4.7% -3.2% STATE TAX 0 0 0.0% 0.0% NET INCOME 392,597 (181,910) 4.7% -3.2% GROVER CORPORATION COMPARATIVE STATEMENT OF RETAINED EARNINGS December 31,2010 and 20€19 Updated 12128/2010 ForecastlActual Actual 2010 2009 Retained Earnings-Beginning (17,463) 180,447 Net Income 392,597 (181,970) Distributions (750,000) (10,000) Retained Earnings-Ending 237,134 (71,463} GROVER CORPORATION COMPARATIVE STATEMENT OF CASH FLOWS For The Years Ended December 31, 2010 and 2009 Updated 12/28/2010 Forecast/Actual Actual 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $392,597 (181,910) Adjustments to reconcile net income to cash: (Gain) Loss on sale of equipment (27,115) (Gain) Loss on sale of securities 3,329 Depreciation and amortization 228,000 227,024 (Increase)decrease in accounts receivable (488,428) 5,631 (Increase)decrease in Inventories (118,827) 94,452 (Increase)decrease in prepaid expense 98,314 (173,324) Increase (decrease) in accounts payable 30,011 107,202 Increase(decrease) in other accrued expenses 116,694 (33,844) Net cash provided by operating activities 261,690 18,116 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (200,000) (91,769) Proceeds from sale of equipment 32,000 Proceeds from sale of securities 5,600 (Increase) Decrease in Note Receivable 18,500 Net cash used in investing activities (175,900) (55,769) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long-terra debt 264,000 Net borrowings(repayments) on line of credit 310,000 75,000 Repayments of long-term debt (253,311) (283,020) Payment of dividends (150,000) (10,000) Net cash provided by financing activities (93,311) 45,980 NET INCREASE(DECREASE) IN CASH (7,521) 4,327 BEGINNING CASH BALANCE 27,521 23,154 ENDING CASH BALANCE $20,000 $27,521 P.O. BOX 15580 817/478-1137 ----- -- 2. Executive Summary Executive Summary Speed Fab-Crete has pursued the subject property for many years. Our need for expansion has driven our quest to obtain this property for so long. The land at 1000 E. Kennedale Parkway is located just north of our facility. It is separated only by the 2-acre development owned by the Willis family. Its purchase is essential for the prosperity and success of our company since expansion to the south is not possible. We currently fabricate single arch bridge spans under the name SFC Bridge Systems. Additional casting bed space and storage is needed for this successful product line. I have included some pictures of our bridge system. This will be Phase One of our development plan and would be implemented within the first year. Phase Two of the development will include the construction of a 9,200-square-foot office/warehouse. The building will adhere to the overlay district covenants. An elevation has been provided, as well as pictures of a similar facility in the Mansfield area. We believe that a high quality, multi-tenant facility can be successfully leased and will enhance the beautification of the main thoroughfare through Kennedale. We anticipate developing this phase in the second year or as the economy dictates. Phase Three will introduce a new precast concrete product, hollow core planks,which we have been contemplating manufacturing for several years. Speed Fab-Crete has used this product in schools and other public buildings. However, it is not produced locally, but in facilities in Oklahoma and southeast Texas. We propose to fabricate the hollow core planks on the new property and market the North Texas area and beyond. With careful planning,we hope to have the plant in production within three years. We have included some photos of the new product. Once developed,we will have approximately$2,500,000 invested in all phases. The total employment will increase by approximately 15-20 people, plus the lease tenants. Depending on economic conditions, we hope to develop Phase Three much sooner. The next section will give a more detailed description of our proposed development and cost summary. 1 i 'OUSE AND -OR: R Z o z a � w w� o � / ORPORATION: oz KENNEDALE PARKWAY — f o w a \ w Z � d Lu BATCH.FLAWT LLI = Q to+s sS U— Y d f s W W C)IC+'VOL.S.GO.F&.12 ENT '\ .JJ! O Z OL 1091 P6.I�b2 �� \ As5REBATE Q _-_/ BENS 17 jJ. J• w p ��w \ \ r U. W ii S\ \ \ \ } P,Z. _ U .j 0 o r 7,_ \ — W w r3 C o F DATE: 0I/12/2011 REVISIONS: BRAWN BY:SB JOB NOr 50155 SFC 4.442 ACRES ARCHITECTURAL SITE PL8 SHEET NO, SCALE:V=40'-0" 1 1 OF 1 SHEETS �IJ - i 1 1 Iii -- �i, �� li� I f 1 !1 ■ ■Y.a �. �- n1l _ I.Ip tl Y�� njp�- P1�:lYPY:f�YiY =� �� Yor.. y Yo _ r — 1P SFC Bridge Systems c. 4 4! 4 "%woe ri AA Precast Concrete Hollow Core Planks 3. Project Description As stated in our Executive Summary,the development will consist of three phases. The following are descriptions of each phase, as shown on the enclosed site plan. Phase One—Bridge Production The site will be graded and a stabilized gravel surface installed to accommodate both Phase One and Three of the development. A 6' screen fence will be installed,as required by the overlay district covenants. The fence is noted on the site plan. The water and sewer utilities will be installed, as required by the city pertaining to each phase. An access easement agreement has been tentatively negotiated with the Willis family. An aerial view is included showing the proximity of the subject property to our facility and the access easement. The access road will cross at the rear of the Willis property. This will enable us to transport equipment, material, product and personnel between properties without frequently using Kennedale Parkway. Once the site surface material has been installed, a concrete casting bed, will be formed and poured. This will be the casting surface for the bridge spans, as previously noted. The concrete for the bridge production will be batched at the main facility and transported across the rear of the property. The bridge products will be poured, stored and distributed from this location. Employees from our existing labor force will be working at this site. This added production area will free up space at the main facility for our current orders. Phase Two—Office Warehouse Phase Two will include a 9,200-square-foot multi-tenant warehouse facility. We have successfully built and leased several similar facilities in the Fort Worth area. We believe that a building of the quality proposed can be successful in Kennedale. Speed Fab-Crete will design and build the structure using our precast wall panel system. An elevation has been provided, as well as photos of a similar facility that we recently built. The combination of finishes and colors will be very attractive and eye-appealing along the parkway. We are proposing to divide the space as necessary. The lease space sizes will vary with each tenant. We consider this an incubator for small businesses and hope that they will outgrow the space. Ths could lead to future construction, hopefully in Kennedale. The building will be set back as This base will adhere to the overlay district covenants. g , p required, and include a landscape buffer. As per the landscape ordinance,the majority of the required landscaping for the site will be installed. The required parking is shown, as well as a dumpster and fire lane. The tenant demographics are hard to determine with regards to number of employees. However, we believe that the community will benefit from their occupancy at our facility. Phase Three—Hallow Core Manufacturing This phase will require a large capital investment on our part in specialized equipment. As shown on the site plan, we will form and pour a long concrete casting bed. The bed will be covered with an open-sided roof structure. A 1,750-square-foot enclosed building will be constructed to house and maintain the hollow core equipment. This product line will require approximately 15-20"new hires." A production office building, approximately 1,125 square feet in size, will be constructed for the foremen and plant personnel. If production of the hollow core planks and the bridge spans grow as predicted,then we will purchase and install a new concrete batch plant. It will become too costly and inefficient to transport ready-mix back and forth between the properties. The planks will be stored and distributed from this location. All construction will follow the required codes and ordinances of the City of Kennedale and any other jurisdiction. The sizes of the structures could vary depending on space requirements for equipment and other factors. The following is the estimated cost of each phase. Phase One: — Site clearing and surfacing $100,000 — Access Woad 50,000 — Fencing and landscaping 30,000 — Casting Bed 125,000 Total Estimated Cost Phase One: $305,000 Phase Two: — Office/warehouse building $300,000 — Concrete parking and drives 75,000 — Landscaping 45,000 Total Estimated Cost Phase Two: $420,000 Phase Three: — Casting bed and roof canopy $ 125,000 — Equipment building 45,000 — Hollow core equipment 800,000 — Production office 45,000 — Batch plant 760,000 Total Estimated Cost Phase Three: $1,775,000 We believe that the development meets or exceeds the mission of the KEDC. Speed Fab- Crete has been a large tax generating business in this community for 32 years. We look forward to investing further in Kennedale and strengthening our relationship with its citizens. \ r h d. • Fly. �.��.^� k © `r�rr E� � v i�, r• ,�, e� �, ��„rte'!„ .,. , w.. A 1, •y cu V) Lij L CL u Q 0 ; \ .y 111 L ISf ry4ltyl, • .. t �NI. _444 � r� y1v�31}ty�X14114 � f!, tr � :•W1( app t 1 . A Newport Properties Mansfield,Texas 4. Financing Plan Speed Fab-Crete tenders an offer of$116,095 for the 4.442 acres. This is based on recent sales of properties in the immediate area. See enclosed appraisal of a 3-acre tract at 1201 Kennedale Parkway, purchased in February 2009. All proceeds for the property will be paid at closing once due diligence is complete. This includes an environmental assessment report to be provided by seller and proof that all delinquent taxes are paid. Mineral rights are reserved by seller and no surface use allowed. Speed Fab-Crete will be responsible for financing, if any. Tarrant Appraisal District Real Estate 01/1212011 Account Number: 03839907 Georeference: A 378-1Y Property Location: 1201 E Kennedale Pkwy,Kennedale Owner Information: Jdjrc Warehouse Partners F'w:LP PO Box 15580 Fort Worth Tx 76119-0580 4 Prior Owners Legal Description: Cannon, E C Survey A378Tr1Y& lZ 2.00 Acres s Taxing Jurisdictions: 014 City of Kennedale i 220 Tarrant County 224 Tarrant County Hospital Dist 225 Tarrant County College Dist 914 Kennedale ISD This information is intended for reference only and is subject to change It may not accurately reflect the complete status of the account as actually carved in TAD's database. Proposed Values for Tax Year 2.011 Land ' Impr 2011 Total** Market Value $0 $0 $0', _Appraised Value' $0 $0 $O' Approximate Size"* _ 9,100 Land Acres 3.0000 Land StL>"t -130_,_6.801 Appraised value may be less than market vague oue to state-mandatec#lwmaatuors on vague increases _ A zero value indicates that the property record has not yet been completed for the irdicaled tax year Rounded 5-Year Value Histo Tax Year'XMPT Appraised LandlAppraiaed ImprrAppraised Total Market Land Market Impr Market Total 2010 000 $71,874 5128.1261 $200.000 $71,874 $128.126 5200,0(10 2401) 000 $74.8 $128.126 - — $200.000 $71.874 $128.I26 $200.0001 2008 000 $74.4 IT _ S264.3 12 $339,000 $74,488 $264,512 53399000 2007 000 547.9161^ SS286-855,— rt_ $334,771 -- $47,916 _-_$286.855 5_334.771 20tH, 401) 5;47.1)16' 5274A1; �$322,i29 $47910 $274,413 fi322,329 Protest Deadline: Exemptions: None . 65 r Property Data Deed Date: 02%24!2009 Class:102 Instrument: D209056092 State Code: F1 Commercial r Garage Bays: 00 1 Year Built: 1973 Central Air: Central Heat: TAD Map: 2090 352 Pool: N MAPSCO: 108K _ Agent: 00601 Simmons Property Tax Service I 5. Financial Information Speed Fab-Crete has included our 2008, 2009 and 2010 corporate tax returns and our 2010 audited financial statements are included under separate cover. The financial information contained in this section shall not be disclosed outside the City of Kennedale, Texas and shall not be duplicated, used or disclosed in whole or in part for any purpose other than to evaluate this proposal. Frd wCrrefe TABLE OF CONTENTS 1. Cover Letter 2. Executive Summary 3. Project Description 4. Financing Plan S. Financial Information weavers INDEPENDENT AUDITOR'S REPORT The Board of Directors and Stockholders Speed Fab-Crete Corporation We have audited the accompanying balance sheets of Speed Fab-Crete Corporation (the Company) as of August 31, 2010 and 2009, and the related statements of operations and retained earnings and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement . presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of August 31, 2010 and 2009, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. AI WEAVER AND TIDWELL, L.L.P. Fort Worth, Texas j November 18, 2010 �i rr _ ! AN INDEPENDENT WEAVER AND TIDWELL LLP FORT WORTH MEMBER OF BAKER TILLY CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 2821 W SEVENTH STREET,SUITE 700,FORT WORTH,TX 76107 .) INTERNATIONAL WWW.WEAVERLLP.COM P:(817)332 7905 F017)429 5936 FINANCIAL STATEMENTS h '1�1 SPEED FAB-CRETE CORPORATION BALANCE SHEETS AUGUST 31, 2010 AND 2009 2010 2009 ASSETS CURRENT ASSETS Cash and cash equivalents $ 278,746 $ 560,213 Accounts receivable 7,474,315 3,428,960 Investments 102,098 184,477 Inventory 162,397 149,693 " Costs and estimated earnings on uncompleted contracts in excess of billings 633,993 268,898 Refundable federal income taxes 203,644 Prepaid expenses 21,694 29,375 Total current assets 8,876,887 4,621,616 PROPERTY AND EQUIPMENT, net 2,242,846 2,298,897 OTHER ASSETS Cash value of life insurance, net of loans of $765,661 and $0, respectively 582,094 1,104,608 Miscellaneous assets 640 640 582,734 1,105,248 TOTAL ASSETS _ $ 11,702,467 $ 8,025,761 The Notes to Financial statements are an integral part of these statements, 2 2010 2009 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Line of credit $ 1,450,000 $ - Current portion of long-term debt 39,457 350,433 Accounts payable 5,524,148 2,092,429 Accrued expenses and other 379,513 1,311,406 Income tax payable - 50,049 Billings on uncompleted contracts in excess of costs and estimated earnings 788,764 786,455 Total current liabilities 8,181,882 4,590,772 LONG-TERM LIABILTIES Long-term debt 339,316 378,806 Long-term debt - related parties 450,000 - Deferred tax liability 422,180 417,402 Total liabilities 9,393,378 5,386,980 STOCKHOLDERS' EQUITY Common stack; no par value; 400,000 shares authorized and issued; 100,000 shares outstanding 150,000 150,000 Additional paid-in capital 8,241 8,241 Retained earnings 7,514,771 7,844,463 . 7,673,012 8,002,704 Less 300,000 shares of treasury stock, at cost 5,363,923 5,363,923 Total stockholders' equity 2,309,089 2,638,781 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 11,702,467 $ 8,025,761 SPEED FAB-CRETE CORPORATION STATEMENTS OF OPERATIONS AND RETAINED EARNINGS YEARS ENDED AUGUST 31, 2010 AND 2009 2010 2009 CONSTRUCTION REVENUES $ 23,388,592 $ 32,040,460 COST OF CONSTRUCTION REVENUES 21,493,859 27,734,506 Gross profit 1,894,733 4,305,954 OPERATING EXPENSES General and administrative 2,482,749 3,825,907 Income (loss) from operations (588,016) 480,047 OTHER INCOME (EXPENSE) Interest and dividends 12,569 7,223 Misceilaneous income 139,055 86,928 Interest expense (65,781) (61,285) Gain on sale of fixed assets - 2,000 Gain (loss) on investments 28,566 (54,753) ; 114,409 (19,887) ' INCOME (LOSS) BEFORE INCOME TAXES (473,607) 460,160 Income tax expense (benefit) (143,915) 299,474 Net income (loss) (329,692) 160,686 RETAINED EARNINGS, beginning of year 7,844,463 7,683,777 RETAINED EARNINGS, end of year $ 7,514,771 $ 7,844,463 ilk If The Notes to Financial Statements are an integral part of these statements. 4 SPEED FAB-CRETE CORPORATION STATEMENTS OF CASH FLOWS YEARS ENDED AUGUST 31, 2010 AND 2009 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (329,692) $ 160,686 Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation 396,417 395,395 Gain on sale of fixed assets - (2,000) Deferred income taxes 4,778 64,645 (Gain) loss on investments (28,566) 54,753 Reinvested investment income (2,333) (5,642) Changes in operating assets and liabilities Accounts receivable (4,045,355) 374,906 Inventory (12,704) .133,489 Cost and estimated earnings on uncompleted contracts in excess of billings (365,095) 324,798 Refundable federal income taxes (203,644) 7,407 Prepaid expenses 7,681 7,539 Decrease in cash surrender value of officer's life insurance (243,147) 93,741 Accounts payable 3,431,719 (204,984) Accrued expenses and other (931,893) 428,813 Income tax payable (50,049) 50,049 Billings on uncompleted contracts in excess of costs and estimated earnings 2,309 265,307 Net cash provided by (used in) operating activities (2,369,574) 2,148,902 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from maturities of certificates of deposit 113,278 - Capital expenditures (340,366) (135,751) Proceeds from sale of fixed assets - 2,000 Net cash used in investing activities (227,088) (133,751) The Notes to Financial Statements are an integral part of these statements. 4 I SPEED FAB-CRETE CORPORATION STATEMENTS OF CASH FLOWS YEARS ENDED AUGUST 31, 2010 AND 2009 2010 2009 CASH FLOWS FROM FINANCING ACTIVITIES Net proceeds (payments) on line of credit $ 1,450,000 $ (950,000) Proceeds from notes payable_ - related parties 450,000 - Payments on long-term debt (350,466) (508,090) Proceeds from loans taken against cash value of of life insurance policies 765,661 - Net cash provided by (used in) financing activities 2,315,195 (1,458,090) Net increase (decrease) in cash and cash equivalents (281,467) 557,061 CASH AND CASH EQUIVALENTS, beginning of year 560,213 3,152 CASH AND CASH EQUIVALENTS, end of year $ 278,746 $ 560,213 SUPPLEMENTAL CASH FLOW INFORMATION Interest paid $ 71,820 $ 54,218 ' Income taxes paid 105,000 177,373 The Notes to Financial Statements are an integral part of these statements. 6 CLIENTS COPY ��® U.S. Corporation Income Tax Return Dfvlf3No.1645-9123 Farm For calendar year 2007 or tax year ®®� Department o€the Treasury beginning SEPTEMBER 1 , 2007 ,ending AUGUST 31. 2008 Internal Revenue Service '+Check if; Use NameSPEED FAB—CRETE CORPORATION B Employer idenlificationnumber {onsolidatedrat�m � IRS INTERNATIONAL 75-1286689 attach Form 951 . ... label. dated consols- C pate incorporated dated return....sole.... other- Number,street,and room or suite no.If a P.O.box,see instructions. 2 Personal holdin co, (attach 6th.PH?.":..[] wise, P.O. BOX 15580 . 09/18/1963 3 Personas service carp. print D Total assets(see instfuctions) (see instructions)....-. or type. City or town,state,and ZIP Code $ 719 3 3 6 . 4 Schedule M-3 attached................... E Check it.fn1 1 Initial return 2 Final return 3 Name change 4 Address thane 1 a Gross receipts or sales 3 u 113 9 7 3 . b Less returns and a€Iowances c Ball Op. lo 30 , 113 ,973 . 2 Cost of goods sold(Schedule A,line 8) ...................................................... ......-----------......... 2 25 ,962 , 868 . 3 Grass profit.Subtract line from line 1c ................................................................................-.....................-.- 3 4,151, 105 . 4 Dividends(Schedule C,line 19) 4 2 , 633 . ........................ ............. ----------...................................... „ 5 Interest ...................... ...........................SEE...STATEMENT- 1,,,,,,,,,,,,, 5 5,544. 0 6 Gross rents 7 Gross royalties ...................................... ........................................................................... ....................... 7 8 Capital gain net income(attach Schedule A(Farm 1120)) ................................................................................. 9 Net gain or(loss)from Form 4797,Part 11,line 17(attach Farm 4797) ................................... I........... 9 —5 , 869 . 10 other income(attach schedule) ...............................:::.......................-SEE.,STATEMENT•„2--..-........ 10 534,314. 11 Total income. Add lines 3 through 10 . .._......................................................................:..................... i 1 4 , 689, 841. c 12 Compensation of officers(Schedule E,line 4) ____..............___.............----...................................... 12 1 ,040 ,758 . 13 Salaries and wages(less employment credits) .............................................................................................. 13 974 ,494. 14 Repairs and maintenance ........ ............................................................................................................... 14 v15 Bad debts ........................................................................................................................................ 15 0 16 Rents ...................................................................................................................................................... 16 en 17 Taxes and licenses - ..... SEE...STATEMENT.. ........... 17 2 3 5 49.0 , 18 Interest 18 99 , 967 . ......................................•---................................................... .. ... 19 Charitable contributions SEE,.STATEMENT,•4••-•.--..AND.--.-SEE-_STATEMENT-..5............. 19 17 , 082 . 20 Depreciation from Form 4562 not claimed on Schedule A or elsewhere on return(attach Form 4562) ...... „•••-•- 20 7 41 0 6 5 . U) 21 Depletion ...-.. .................... .. ...................... .•............... 21 0 22 Advertising 22 127 ,025 . 23 Pension,profit sharing,etc,plans ................................................................................................ 23 358 , 302 . 24 Employee benefit programs ............................................................. ......___............................................ �4 25 Domestic production activities deduction(attach Farm 8903) ................____.................................................... 25 6 , 215 . 26 Other deductions(attach schedule) ...... .. ...........................................SEE...STATEMSNT---6............ 26 610 , 220 . 27 Total deductions. Add lines 12 through 26 ....................................................•-----...............................-... ® 27 4 ,210 , 618 . 28 Taxable Income before net operating loss deduction and speclat deductions.Subtract line 27 from line 11 .......................... 28 479 ,223. U 29 Less:a Net operating loss deduction 29a b Special deductions(Schedule G,line 2D ...................................... 29b 1 ,843 . He 1, 843 . 30 Taxable income. Subtract line 29c from line 28(see instructions) .......................................................................... 30 477 , 380 . 31 Total tax (Schedule J,line 10) ---------------- 31 162, 30.9 . 32a 2006 overpayment credited to 2007 32a m b 2007 estimated tax payments ,,,•„ 32b 15o 0 0 0 . c 2007 refund applied for on Form 4466 32c d Bal 0- 32d 150 000 . CL e Tax deposited with Farm 7004 :32e 20 000 . f Credits:(1)Form 2439 (2}Form 4136 2 ,7 9 2 . 32f 2 7 9 2 . 32g 172 ,792. M 33 Estimated tax penalty(see instructions).Check if Form 2220 is attached _-.......... ®® 33 403 . ,� ~ 34 Amount owed.If line 32g is smaller than the total of lines 31 and 33,enter amount owed 34 0 . 35 overpayment.It line 32g is larger than the total of lines 31 and 33,enter amount overpaid .......•„• .................. 35 10 ,0.80.. 36 Enter amount from line 35 you want Credited to 2008 estimated tax 10 , 080 . Refunded 36 Under penalties of perjury,I declare that I have examined this return,including accompanying schedules and statements,and to the best of my knowledge and belief,it is true, correct,and complete.Declaration of prepare:(other than(axpayer}is based on all information of which prepare(has any knowledge. }}fi�gg Sign rirlrnhet�hlhd pceparehrs Here sehawn slowf ®Signature ofofficer Bate ®Yes NO Paid signaure /)A Dale �� Glf-em 9E �sTp IfcyPZ EJ signature l�'0--g self-employed iV1,iFT.LL7L/W)TIN Preparer's Firm's name WEAVER AND TI DWELL, L.L.P. EIN 7 5 0 7 8 6 316 Use Only if..IfE.mpioyed), 1600 W. 7TH, SUITE 300 Phone no. 817 332-7905 address,and ZIP code FORT WORTH TX 76102-2506 711601 -26-1 JWA For Privacy/Paperwork Reduction Act Notice,see instructions. Form 1120 2007 1z-zs-o7 ( ) ` 12® U.S. Corporation Income Tax Return OMB No.1545.0123 Form For calendar year 2008 or tax year ®®� [Department of the Treasury beginning SEPTEMBER 1 , 2.008 ,ending AUGUST 31 2009 Internal Ravenue Servlos 4Checki#: Use NameSPEED FAB—CRETE CORPORATION B Employer Identification number a onsclidated refkrn !R5 INTERNATIONAL 75-1286689 attach Farm a51 . bLlfeJnanlifeconsoli- label• dated retuhhrn.......g.....,.,, Other- Number,street,and room or suite no.If a P.D.box,see instructions. C Date Incorporated 2 (attach SchpIPFIJ co, F wise, P.O. BOX 15580 3 Personal sarvIce.corp, print a9 1$ 1963 (see Instructions),.,,., or type City or town,state,and ZIP code D Total assets(see Instructions) 4 Schedule M-s 8 , 025 , 759 . attached................... E Check if: (11D Initial return 2 Final return 3 Name thane MFJI Address chanoe 1 a Gross receipts or sales 3 2 0 4 0 4 6 0 .1 b Less returns and allowances c Bal 0- 10 32 040 , 460 2 Cost of goods sold(Schedule A,line 8) ......................................................................................................... 2 27 , 366 , 232 . 3 Gross profit.Subtract line 2 from line ic ......................................................................................................... 3 4,674, 228 . 4 Dividends(Schedule C,line 19) ............. ... ..........................,......................................................... 4 3 135 . c, 5 Interest ...,...,.. . SEE...STATEMEIT... ............. 0 6 Gross rents 6 ............................................ .............................. C 7 Gross royalties 7 ......................................................... 8 Capital gain net Income(attach Schedule D(f=orm 1120)) ............ ................................................................... 8 9 Not gain or(lass)from Form 4797,Part 11,line 17(attach Form 4797) „ 9 21 0 0 0 . 110 Other income(attach schedule) ............................................................. EE..aTATEMENT,,,2,,,,,,. 10 86 , 928 . 11 Total income. Add lines 3 throe h 10 ................................................................................................... 1 i 4 7 7 0 , 379 . vi 12 Compensation of officers(Schedule E,line 4) ........................................................... ® 12 1 ,181 , 500 . 13 Salaries and wages(less employment credits) ............................................ ......................... ........... ............. 13 1 ,305 , 536 . 14 Repairs and maintenance 14 .......................................................................................... m 15 Bad debts n 16 Rents 0 17 Taxes and licenses SEE.._STATEMENT,, 3 t7 219 220 . iB Interest 18 61, 285 . 19 Charitable ..................................contributions SEE „STATEMENT4 AND.,....SEE„STATEM5,,,,,_, is 12 492 , L 20 Depreciation from Form 4562 not claimed on Schedtale A or elsewhere on return(attach Form 4562) 20 585 , 539 . o ................. H 21 Depletion .......................................... 21................................................................................. 0 22 Advertising ................................ ................. ...........,..,,...,................................... 22 94 , 837 . 23 Pension,profit sharing,etc.,plans ................................................. 23 2 0 278 . 24 Employee benefit programs ................................................. 24 25 Domestic production activities deduction(attach Form 8903) ............ ................ .............. ........... 25 35 031 . u3 26 Other deductions(attach schedule) ..................... ..,,.S,EE,,,S,TATEME,I�T,.,f.,...,„.... 26 513 655 .. .......................... 27 Total deductions. Add lines 12 through 26 ................................ ........... ............................................. >- 27 4 219 373 . ` 28 Taxable income before net operating foss deduction and special deductions.Subtract line 27 from fine it ......................I................ 28 551 0 0 6 . 29 Loss:a Net operating loss deduction I 29a A b Special deductions Schedule C,line 20 29b 2 '195 . 29c 2 , 19 5 . ......................................... 30 Taxable income, Subtract line 29c from line 28(see instructions) ............................................................... 30 548 811 . 31 Total tax (Schedule J,line 10) ..... ................................... ......... 31 186 , 59G . B 32 a 2007 overpayment credited to 2008 32a 10 0 8 0 . b 2008 estimated tax payments ...... 320 110 , 000 . m ID G 2008 refund applied for on Form 4466 32c k ` d Bal )10- 32d 1 120 080 . o Tax deposited with Farm 7004 ..................................................................... 32e 80 000 . caf credits;(1)Form 2429 (2)Form 4138 32f m g Refundable credits from Form 3800,line 19c,and Form 8827,line 8c 32g 32h 200 , 080 . m •33 Estimated tax penalty(see instructions).Check if Form 2220 is attached . ..................... )I.-Ml 33 1 408 . 34 Amount awed,If line 32h is smaller than the total of lines 31 and 33,cnter amount we od - 34 0 . 35 Overpayment.If line 32h is larger than the total of Iirfas 31 and 33,enter amount overpaid ..... 35 12 , 076 . 36 Enter amolf t from line 35 ou want:Credited to 2009 estimated tax 12 076 . Refunded ot 38 Under pen hies of perjury,I dark' a that I have examined this return,including accompanying"haduI s and statements,and to the bast of my knowledge and betlef,n Is true, Sign correct,an cm�p/letee.'D�eolar `n of preparer{other than taxpayer}is based an all information of wh1 preparer has any knowledge. MR51r, Here /7/f/t? / ^�!) n Signature of officer � -Date PTitre Yes — CIO r Preparer's ❑-a Check if Pr areCC's 9 Nor IN Paid signature rrt self-ampleyede7 Preparer's Firma name WEAVER AND TIDWELL, L.L.P . L EIN 7 5 D 7$6 316 Use Only selfemployed), 2821 W. 7TH STREET, SUITE 700 Phoneno, 1817) 332-7905 address,and ZIP code FORT WORTH TX 76107 s a°os JWA For Privacy/Paperwork Reduction Act Notice,see Instructions. 1 Form 1120(2008) 10420122 756800 29905 2008 . 05020 SPEED FAB—CRETE CORPORATION 29905 1 2009 Tax Return is presently being revised by our auditors and is not available at this time.