HomeMy WebLinkAbout~Master - Contract for Syngenta Forgivable Loan RESOLUTION NO.05-281
RESOLUTION AUTHORIZING STAFF TO PREPARE A CONTRACT FOR
SYNGENTA FORGIVABLE LOAN
FOR THE CITY OF AMES
WHEREAS,the Ames Economic Development Commission(AEDC)has been working with Syngenta
Seeds Supply Chain, and this company is considering establishing an office in Ames; and,
WHEREAS,the operation will have a total of 48 jobs,with the average annual salary between$55,000
and$60,000; and,
WHEREAS,a portion of these j obs will be filled by current Syngenta employees who would be relocating
to the area from Iowa,Minnesota, and Nebraska; and,
WHEREAS, the Syngenta Seeds Supply Chain business unit is considering leasing for ten years
approximately 12,000 square feet in a new 18,000 square-foot building constructed for them on South Bell
Avenue; and,
WHEREAS, the AEDC has advised that in order to be successful in attracting Syngenta to Ames, a
$70,000 forgivable loan will be needed,and,historically,incentive monies for this type of established company
have come from the Community Investment Account and financed equally between the City of Ames and the
Economic Development Commission; and,
WHEREAS,under the forgivable loan concept,no repayment is required if the company complies with
all terms detailed in the agreement,however,if fewer than 48 positions are actually created within two years of
the effective date of the agreement, a penalty of$1,458 plus interest must be paid for each uncreated job; and,
WHEREAS, furthermore, if the company were to leave Ames within five years of the date of the
agreement, damages in the amount of$70,000 would be due to the City and the AEDC, along with the balance
of the principle and interest due on the loan.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa, that City staff
is hereby authorized to negotiate a Forgivable Loan Agreement to pay the Syngenta Seed Supply Chain$35,000,
to be matched by the Ames Economic Development Commission,in return for the company creating forty-eight
jobs in the City of Ames within two years of the date of this agreement,and the mayor is further authorized to sign
said agreement.
ADOPTED THIS 28th day of June, 2005.
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Diane R. Voss, City Clerk Ted Tedesco,Mayor
Introduced by: Cross
Seconded by: Wirth
Voting aye: Cross, Goodman,Mahayni,Vegge,Wirth
Voting nay: None Absent: Goodhue
Resolution declared adopted and signed by the Mayor this 28th day of June,2005.