HomeMy WebLinkAbout~Master - NewLink Genetics Corporation forgivable loan agreement RESOLUTION NO. 09-558
RESOLUTION APPROVING NEWLINK GENETICS CORPORATION
FORGIVABLE LOAN AGREEMENT
FOR THE CITY OF AMES
WHEREAS, in September 2005, the Council approved a $200,000 forgivable loan to
NewLink Genetics Corporation, and, at that time, the company was in the research phase of
developing pharmaceutical products with a primary focus on cancer; and,
WHEREAS,the assistance was primarily to enable a move to a larger space to accommodate
increased production for large scale product testing; and,
WHEREAS, the company has not drawn down the funding or entered into an agreement
since the additional space was not needed until it reached the stage of clinical trials requiring
additional production; and,
WHEREAS, the company is now at the point where additional space is needed, and on
October 13,2009,the Council directed staff to draft a forgivable loan agreement with the following
terms for its approval: 1)NewLink commits to a five-year lease with an option for extension to ten
years for an existing building at the ISU Research Park with a minimum size of 20,000 square feet;
2) create/retain 150 new jobs averaging $40,000 per year over five years; and, 3) the City is to
provide a $200,000 forgivable loan with funding ($100,000 upon finalization of a building lease
agreement between NewLink and the ISU Research Park; $50,000 when the lease building is
occupied by NewLink; and, $50,000 when NewLink reaches a total of 70 qualified jobs in Ames;
and,
WHEREAS, the AEDC will also provide a $200,000 forgivable loan, but contingent upon
a match amount provided by the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the forgivable loan agreement with NewLink Genetics Corporation in the amount of$200,000
is hereby approved.
ADOPTED THIS 8`' day of December, 2009.
• L -d&
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Goodman
Seconded by: Mahayni
Voting aye: Doll, Goodman, Larson, Mahayni, Popken, Rice
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 8"day of December, 2009.