HomeMy WebLinkAbout~Master - Agreement with IDED for AATI RESOLUTION NO.05-333
RESOLUTION APPROVING AGREEMENT WITH
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT FOR
ECONOMIC DEVELOPMENT ASSISTANCE FOR
ADVANCED ANALYTICAL TECHNOLOGIES,INC.,
FOR THE CITY OF AMES
WHEREAS,Advanced Analytical Technologies,Inc., (AATI)is an Ames-based company currently located in
the ISU Research Park that has developed and manufactured equipment for automated microbial water testing;and,
WHEREAS, the company has applied for financial assistance with the Iowa Department of Economic
Development(IDED)in the form of a CEBA$1,000,000 forgivable loan and a$1,000,000 loan;and,
WHEREAS,as a local match for IDED funding,AATI is requesting a$50,000 revolving loan fund load at one-half
of prime and a$25,000 Community Investment Fund forgivable loan;and
WHEREAS,the Ames Economic Development Commission(AEDC)will be expected to provide an additional
$25,000 in forgivable loan funding;and,
WHEREAS,the company also has a$3,000,000 private equity placement in process that is contingent on state
and local assistance;and,
WHEREAS,in 1999 AATI was granted a CEBA forgivable loan in the amount of$250,000,and the local match
was provided by a$50,000 revolving loan fund loan;and,
WHEREAS,AATI has repaid this loan in full and on time,however,it did not meet the job creation target and
owes a penalty of$48,333.14;and,
WHEREAS,AATI has requested that the penalty be reduced to the additional interest had the loan been at the full
prime rate,or$5,081.16; and,
WHEREAS,this is an unusual request in that the City funding my not be needed to fund the company,but the
local match is required to leverage$2,000,000 in state funding and$3,000,000 in private equity funding;and,
WHEREAS,in order to secure the state and local financial assistance package,the City needs to enter into a CEBA
agreement with the IDED as the local sponsoring agency for the AATI assistance program;and,
WHEREAS,all City funding will be contingent upon IDED funding.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa, that the following are
hereby approved: the agreement with the Iowa Department of Economic Development as the sponsoring agency for
Advanced Analytical Technologies, Inc., for CEBA economic development assistance; to proceed with developing an
agreement with AATI for the local match of a $50,000 revolving loan fund loan at one-half prime and a $25,000
Community Investment Fund forgivable loan;and,to reduce the penalty on the 1999 Revolving Loan Fund loan with AATI
from$48,333.14 to$5,081.16.
ADOPTED THIS 9t'day of August,2005.
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Diane R.Voss,City Clerk Ted Tedesco,Mayor
Introduced by: Vegge
Seconded by: Goodhue
Voting aye: Cross,Goodhue,Mahayni,Vegge,Wirth
Voting nay: Goodman Absent: None
Resolution declared adopted and signed by the Mayor this 9t'day of August,2005.