HomeMy WebLinkAbout~Master - NewLink Genetics Corporation request to extend requirements for forgivable loan agreement RESOLUTION NO. 15-130
RESOLUTION APPROVING NEWLINK GENETICS CORPORATION REQUEST FOR
EXTENSION OF EMPLOYMENT REQUIREMENTS
FOR FORGIVABLE LOAN AGREEMENT
FOR THE CITY OF AMES,IOWA
WHEREAS, in September 2005, City Council approved a $200,000 forgivable loan to
NewLink Genetics Corporation, at the time, NewLink was in the research phase of developing
pharmaceutical products with a focus on cancer; and,
WHEREAS, the assistance was primarily to provide funding for growth in office, lab, and
limited production space, but was delayed as NewLink continued through the research stage of
product development; and,
WHEREAS, the company grew to the point where additional space was needed, and on
October 13, 2009, the City Council directed staff to draft a forgivable loan agreement with the
following general terms: 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;
create/retain 150 new jobs averaging $40,000/year over five years; City to provide $200,000
forgivable loan with funding at the following milestones: $100,000 upon finalization of a building
lease agreement between NewLink and the ISU Research Park; $50,000 when the leased building
is occupied by NewLink;and, $50,000 when NewLink reaches a total of 70 qualified jobs in Ames;
and,
WHEREAS, the Ames Economic Development Commission (AEDC) also provided a
$200,000 forgivable loan matching the funding provided by the City; and,
WHEREAS,NewLink met all terms for funding of the loan and is now approaching the loan
forgiveness close-out date in mid-March; and,
WHEREAS, the company has reported that it is short of the 150 employees required for
forgiveness of the loan, with 124 employees at the Ames location, and NewLink has requested a
one-year extension to meet the employment requirement for loan forgiveness; and,
WHEREAS,the company is currently seeking candidates for 15 full-time positions in Ames
and has indicated that it expects to meet the employment requirement of the agreement with a one-
year extension; and,
WHEREAS, the terms of the agreement provide for partial loan forgiveness based on the
employment attained, and for each job short of 150, the company is required to pay a penalty of
$3,130.58.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the NewLink Genetics Corporation request to extend the employment requirements of its
forgivable loan agreement for a term of one year is hereby approved.
ADOPTED THIS 3' day of March, 2015.
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Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Corrieri
Seconded by: Betcher
Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 3rd day of March, 2015.