Agenda

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Item # 6.

Council Meeting

Meeting Date:	03/22/2022
Department:	Economic Development
Pillars:	Innovation in Entrepreneurship & Business
Milestones:	Implement the Asset Management Plan in accordance with the Asset Management Policy, utilizing information systems

AGENDA CAPTION:

Consider Action on a Resolution Approving an Economic Development Program Grant Agreement with Aerospace Quality Research and Development, Inc. (d/b/a AQRD) and Authorizing the City Manager to Execute the Agreement in an Amount Not to Exceed $70,000.

BACKGROUND:

On February 8, 2022, the City Council directed the City Manager to negotiate an incentive grant agreement with Aerospace Quality Research and Development, Inc. d/b/a AQRD for an amount of $70,000 for the company's expansion in Addison.

As part of the agreement, AQRD will lease additional expansion space of approximately 30,000 square feet adjacent to their existing headquarters located at 4600 Clair Chennault Street in Addison. The company will make an estimated $2.8 million investment in tenant improvements and other office space expenditures to their existing and expanded space. The company will employ at least 90 full time positions within three years with an average annual wage of at least $83,325.

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. On February 8, 2022, Council provided direction on an incentive amount 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 - AQRD Economic Development Program Grant Agreement