The MDC’s partnership with Weir is classic economic development, and we mark it as one of the year’s significant accomplishments.
2017 presented the Midland Development Corporation with exciting new opportunities for economic development, the most notable of which is an agreement with The Weir Group’s Oil & Gas Division. Weir already had a presence in the Permian Basin, providing products and services that support oil well drilling, completion, and production. Because of the myriad opportunities available in Midland, Weir wanted to expand its capacity. This presented the opportunity to partner with the Midland Development Corporation to achieve a complementary set of goals that will increase employment and economic activity in Midland. The Midland Development Corporation was able to sell Weir a location in the David Mims Business Park, with frontage access to Interstate 20.
According to the terms of Midland Development Corporation’s economic development agreement with Weir, the new facility will include more than $20 million in capital improvements, and $9.6 million in personal property. Additionally, Weir will create and maintain $5.1 million in new annual payroll at the Midland location. This is a boon to the local tax base, and will initiate new primary jobs.
In order to increase fairness and transparency, in 2017 the Midland Development Corporation adjusted its incentives strategy by requiring performance from its contract partners before disbursing funds or forgivable loans. The MDC’s agreement with Weir conforms to these guidelines by providing incentive payments to Weir after specific contractual obligations have been met. Forgivable loans totaling $1.8 million will be made in five equal payments over the course of four years, as Weir certifies that it has met capital investment, personal property, and annual payroll goals. In consideration for developing Weir’s section of the David Mims Business Park, the MDC will reimburse Weir for up to $1.35 million in construction costs.
The overarching goal of Midland Development Corporation is to amplify partnerships in Midland and the broader Permian Basin region, uniting efforts in order to achieve a cohesive goal of economic improvement and growth. The MDC’s partnership with Weir is classic economic development, and we mark it as one of the year’s significant accomplishments.
Odessa, TX 79766