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File #: 19-713    Name:
Type: Resolution Status: Consent Item Ready
File created: 9/12/2019 In control: City Council
On agenda: 9/23/2019 Final action:
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
Attachments: 1. 2019 RESOLUTION Calendar Amendment
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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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

 

Body

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.