HomeMy WebLinkAbout~Master - IDED Application for Financial Assistance for Rural Soluxions, LLC RESOLUTION NO. 11-374
RESOLUTION APPROVING ENDORSEMENT OF
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT APPLICATION
FOR RURAL SOLUXIONS,LLC,
FOR THE CITY OF AMES,IOWA
WHEREAS,Rural Soluxions,LLC,is a start-up company having an association with a Georgia-based software
development company called Xpanion,and it was founded with a business plan to provide software testing and quality
assurance for software developed by Xpanion; and,
WHEREAS,over the next two to three years,Rural Soluxions,LLC,expects to grow to 20 employees at the
Ames location,and the project will require no infrastructure investment by the City,and expanded operations will be
located in leased office space; and,
WHEREAS, the Rural Soluxions, LLC, application for assistance to the Iowa Department of Economic
Development(IDED)will be reviewed for approval by the IDED later this month,and the local match requested from
the City is an$11,000 zero-interest loan,half of which is forgivable; and,
WHEREAS, a review of the application determined that the created jobs did not meet the City's economic
development assistance target pay rate of 130%of the Story County average wage rate for a high percentage of jobs
created; and,
WHEREAS,additionally,the company's management team has limited experience,and the proposed financing
for the project does not include a capital contribution by Rural Soluxions,LLC; and,
WHEREAS,based on the City's evaluation parameters,staff would not recommend that the City provide the
local match for this project; and,
WHEREAS, the company does have a business plan with a commitment for business from an established
customer in Xpanion,and will be providing jobs at a wage rate that slightly exceeds 100%of the Story County average
wage rate; and,
WHEREAS,based on this the Ames Economic Development Commission(AEDC)has agreed to fund the local
match of$11,000; and,
WHEREAS,for the IDED to continue consideration of this project,the City Council m8ust adopt a resolution
supporting the submittal of the Rural Soluxions,LLC, application for IDED assistance; and,
WHEREAS,the commitment for a local match will be provided by the AEDC, and if Council supports the
application for assistance, the City will have no financial obligation for the project and will only be assisting with
administration.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa,that the endorsement
of an application submittal from Rural Soluxions, LLC,requesting economic development assistance from the Iowa
Department of Economic Development, with the local match being provided by the Ames Economic Development
Commission.
ADOPTED THIS 9"'day of August,2011.
LY-d& A... ';(/.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Davis
Seconded by: Wacha
Voting aye: Davis, Goodman,Larson,Mahayni, Orazem,Wacha
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 9"'day of August, 2011.