Agenda

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Item # 3.

Council Meeting

Meeting Date:	09/27/2022
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 Firehawk Aerospace, Inc. and Authorizing the City Manager to Execute the Agreement.

BACKGROUND:

On June 14, 2022, the City Council directed the City Manager to negotiate an incentive grant agreement with Firehawk Aerospace, Inc., for the company's headquarter and research and development relocation to Addison. The incentive package includes a grant not to exceed $75,000, a construction permit credit of $6,069, and an annual business personal property tax reimbursement of 50% on the Town’s portion of the tax rate.

As part of the agreement, Firehawk Aerospace will lease a space of approximately 40,000 square feet at 4550 Excel Parkway, Suite 200 in Addison. The company will make an estimated $1.3 million investment in tenant improvements and other office space expenditures. The company will employ at least 55 full time positions with an average annual wage of at least $105,000.

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. On June 14, 2022, Council provided direction on the incentive package 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 - FireHawk 380 Agreement