Agenda

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10.

Work Session and Regular Meeting

Meeting Date:	06/12/2018
Department:	Economic Development
Pillars:	Innovation in Entrepreneurship and Business
Milestones:	Attract and retain innovators in target industries

AGENDA CAPTION:

Consider Action to Approve a Resolution for an Economic Development Program Grant Agreement with Spacee Umbrella Inc., and Authorize the City Manager to Execute the Agreement in an Amount not to Exceed $25,000.

BACKGROUND:

On March 6, 2018, City Council authorized the City Manager to negotiate an economic development incentive in the amount of $25,000 for the relocation of Spacee Umbrella, Inc.’s corporate headquarter offices to Addison. As part of the agreement, Spacee will occupy at least 12,000 square feet at 3752 Arapaho Road with at least 10 full-time jobs with an average annual wage of $85,000.

Grant payment criteria will be based on performance. In order to be eligible for the grant, to be paid out in three installments, the company must reach milestones related to amount of space leased, capital investment, number of jobs created, and average wages as highlighted in the attached agreement.

When a request for an economic development incentive is brought to staff, a preliminary offer is made to the company based on the Town's incentive policy, with the offer being contingent upon final City Council approval. If the offer is accepted by the company, staff will brief the City Council in executive session and request approval of the amount proposed and authorization for the City Manager to negotiate the agreement. Once the negotiations have concluded, staff will bring the incentive agreement back to City Council to request approval for the City Manager to execute the agreement.

This item is to authorize the City Manager to execute the agreement included as Exhibit A in the attached resolution. The funds for the grant have been encumbered in the Economic Development Fund.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Spacee Economic Development Incentive