Presenter/Contact
Presenter
Jordan Matney, Assistant City Manager
Contact Info
(830) 221-4022 - jmatney@nbtexas.org
Subject Header
SUBJECT:
Title
Approval of a resolution recommended by the New Braunfels Economic Development Corporation to approve a project expenditure for direct incentives not to exceed $55,000 for Calendar Holdings, LLC for a project found to promote or develop new or expanded business enterprises that create or retain primary jobs
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BACKGROUND / RATIONALE:
On September 10, 2018, the EDC entered into an economic development agreement with Calendar Holdings, LLC providing for a grant of up to $550,000 with the promise of the creation of no fewer than 66 new primary jobs. The conditions of the incentive are outlined below:
• Calendar Holdings will employ no fewer than 66 full time employees by January 1, 2020.
• The EDC will grant the incentive as follows:
o $1.25 per square foot, up to a total of $312,000.
o Remaining $238,000 will be delivered in annual payments of $34,000 ($515.15/job) for a period of seven years.
Calendar Holdings, LLC. has recently approached the NBEDC for an amendment to their existing agreement for additional funding as a result of expansion plans (an additional 29,120 sq. feet and additional 5 jobs). The additional funding request mirrors the original agreement and increases the grant amount to up to $604,202 with the promise of the creation of no fewer than 71 full time jobs. The conditions of the incentive are outlined below:
• Calendar Holdings will employ no fewer than 66 full time employees by January 1, 2020.
• Calendar Holdings will employ no fewer than 71 full time employees by March 1, 2020.
• The EDC will grant the incentive as follows:
o $1.25 per square foot, up to a total of $348,600.
o Remaining $255,602 will be delivered in annual payments of $36,576 ($515.15/job) for a period of seven years.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
|
X |
Yes |
City Plan/Council Priority: |
Strategic Priorities: 12 - Work with existing entities to ensure balanced economic development |
FISCAL IMPACT:
FY 2019/20: $348,600
FY 2020/21: $36,146
FY 2021/22: $36,576
FY 2022/23: $36,576
FY 2023/24: $36,576
FY 2024/25: $36,576
FY 2025/26: $36,576
FY 2026/27: $36,576
TOTAL OVER THE TERM: $604,202
Recommendation
COMMITTEE RECOMMENDATION:
The NBEDC Board of Directors held a public hearing and approved this resolution at their September 16th special meeting.
STAFF RECOMMENDATION:
Staff recommends approval of the resolution.