Agenda

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Item # 4.

Council Meeting

Meeting Date:	08/10/2021
Department:	Economic Development
Pillars:	Innovation in Entrepreneurship & Business
Milestones:	Leverage Addison's assets to grow and expand placemaking business programs and events that will set Addison apart to attract talent and businesses

AGENDA CAPTION:

Consider Action on a Resolution Approving an Economic Development Program Grant Agreement with Tyton Holdings and Authorizing the City Manager to Execute the Agreement in an Amount Not to Exceed $100,000.

BACKGROUND:

On April 27, 2021, City Council authorized the City Manager to negotiate an incentive grant agreement with Tyton Holdings for an amount of $100,000 for the company's headquarter relocation to Addison from Littleton, Colorado.

As part of the agreement, Tyton purchased a 44,000 square foot office building at 16051 Addison Road better known as the Addison Airport Office Center. The company will initially occupy 25,000 SF for themselves and their six business affiliations. The company will make an estimated $5.9 million investment in the purchase, tenant improvements, and other office space expenditures. The company will initially employ 40 full time positions with an average annual wage of at least $120,000.

The grant provided by the Town is performance based and will be paid in three installments pending milestones related to space occupancy, capital investment, number of jobs created, and average wages that must be met by the company as highlighted in the attached agreement. The motion approved on April 27, 2021 approved the incentive, but did not authorize the City Manager to execute the agreement. Authorization is now being requested in the attached resolution to have the City Manager execute the agreement. The funds for the grant have been encumbered in the Economic Development Fund, and the attached agreement has been reviewed and approved by the City Attorney.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Tyton Holdings