Title
Conduct a Public Hearing and Consider/Discuss/Act on Project #17-09, Submitted by D&L Feeds, Inc. (DL Farm and Home), in the Amount of One Hundred Forty Thousand One Hundred Seventy-Seven Dollars ($140,177) for Infrastructure Improvements that Include Water, Storm Drainage, Sewer, Traffic Control at 1502 N. Church Street, the Location of an Expanded D&L Feed Store and Warehouse Location; Amount Requested Represents 50% of Estimated Project Cost
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
MEETING DATE: July 27, 2017
DEPARTMENT: McKinney Community Development Corporation
CONTACT: Cindy Schneible, President
ITEM SUMMARY:
• D&L Farm and Home (D&L Feeds, Inc.) sells and delivers agricultural and pet products to retail customers and provides expertise for their use.
• Originally a feed store, D&L has expanded to include a full selection of pet food and supplies, lawn and garden supplies and supplies for backyard chicken owners - both urban and rural.
• Significant growth in business has resulted in the need for a new location that would allow for expansion of the business.
• A location for a larger operation was identified at 1502 N. Church Street.
• Plans and plats for development of the Church Street site have been approved by the City of McKinney.
• D&L Feeds is requesting a grant in the amount of $140,177 from MCDC to assist with costs for improvements and upgrades to infrastructure at the Church Street site.
BACKGROUND INFORMATION:
• D&L opened its first store in 1988 in Aubrey.
• Since 1988, the company has grown to include five stores (Aubrey, Celina, Gainesville, Sanger and McKinney) and a distribution center, with sales of more than $15.9 million company-wide.
• The McKinney store was established in 2004 when D&L purchased AgMart, an existing retail store that opened in 1980.
• The McKinney store currently serves an average 150 customers each day, with 13 employees.
FINANCIAL SUMMARY:
• D&L’s net sales, from the McKinney store in 2016 were more than $3.2 million, with 33% generated from sale of taxable merchandise - up from 26.5% in 2012.
• D&L has experienced a nearly ten-fold growth in net sales over the last ten years.
• D&L’s 5-year growth plan projects sales growth of 30% with the percentage of taxable sales growing to 40% of total sales.
• As sales grow, taxable inventories and taxable purchase of materials will increase.
• Total estimated cost for the entire expansion/development project is $1.25 million in addition to the cost of the land.
• Development of the site requires significant upgrades to the city infrastructure including water, storm drainage, and sewer.
• Total cost for infrastructure improvements is estimated to be $280,354.
• D&L is requesting a grant of $140,177 from MCDC for 50% of the infrastructure improvements required.
• MCDC has a balance of $1,132,683 available to award for discretionary project grants.