Loading...
HomeMy WebLinkAbout~Master - Endorsement of IEDA application for financial assistance for Xpanxion, LLC RESOLUTION NO. 15-451 RESOLUTION APPROVING ENDORSEMENT OF IOWA ECONOMIC DEVELOPMENT AUTHORITY APPLICATION FOR FINANCIAL ASSISTANCE FOR XPANXION, LLC, FOR THE CITY OF AMES,IOWA WHEREAS,Xpanxion,LLC,is a software services company with operating offices in five states and Pune, India, and the company is a wholly owned subsidiary of California-based UST Global; and, WHEREAS, the Xpanxion Ames office was opened in 2011 and has grown from 14 to 41 employees and provides software development and testing operations; and, WHEREAS,the company has applied for economic development assistance fora prof ect that includes consolidating offices from four suites across two buildings to a single location that will accommodate both the current workforce and the addition of 45 new full-time positions; and, WHEREAS, 36 of the 45 new jobs exceed the High Quality Job Program threshold of $42,307 and all will exceed within 36 months of the incentive award; and, WHEREAS, the Iowa Economic Development Authority(IEDA)has tentatively agreed to provide incentives to the company,including a$180,000 no interest loan with half forgivable; and, WHEREAS, Xpanxion is also eligible for$299,000 in job training grants from the State of Iowa,and a condition of the state assistance is a local match in the form of a$36,000 no interest loan with half forgivable; ;and, WHEREAS, funding for the local match will be half from the City of Ames and half from the Ames Economic Development Commission, and the next step in the process is to endorse the application to the IEDA for economic development assistance as the local sponsor; and, WHEREAS, for the IEDA to continue with this project, the City Council must adopt a resolution supporting the submittal of the Xpanxion application for IEDA assistance, including the local match; and, WHEREAS, the agreement for the local match will be brought before the Council for approval at a later date. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that endorsement of the submittal of an application from Xpanxion, LLC, requesting economic development assistance from the Iowa Economic Development Authority with a local match to be provided in the form of a $36,000 no interest loan, with half of the amount forgivable, is hereby approved. ADOPTED THIS 28`h day of July, 2015. cde�a- L a& A. tom• ��� Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Corrieri Seconded by: Gartin Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 28"'day of July, 2015.