HomeMy WebLinkAbout~Master - Forgivable Loan Agreement with SmartAg RESOLUTION NO. 19-021
RESOLUTION APPROVING FORGIVABLE LOAN AGREEMENT
WITH SMART AG
FOR THE CITY OF AMES
WHEREAS, in August 2018, Council approved the endorsement of an Iowa Economic
Development Agreement(IEDA)application for economic development assistance for Ames-based
Smart Ag with the assistance package including a$50,000 forgivable loan as the local match; and,
WHEREAS, Smart Ag has received approval from the IEDA for economic development
assistance for a project that includes the build-out and leasing of 10,000 square feet in a spec
building location in the South Bell TIF district; and,
WHEREAS,the project also includes employment growth to 40 full-time positions with 33
of the jobs above 120%of the IEDA Story County labor-shed rate of$26.11 per hour and 7 jobs just
below that rate; and,
WHEREAS, funding for the expansion project is as follows: Smart Ag $2,140,000; State
Assistance $330,000; Local Match $50,000, for a total amount of$2,520,000; and,
WHEREAS, the State assistance will be in the form of investment tax credit, research and
development tax credit, a forgivable loan, and a no-interest loan; and,
WHEREAS, funding for the local match will be half from the City of Ames and half from
the Ames Economic Development Commission.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the Forgivable Loan Agreement with Smart Ag in the amount of$50,000 as the local match to
an IEDA financial assistance agreement is hereby approved.
ADOPTED THIS 22nd day of January, 2019.
Diane R. Voss, City Clerk John . Haila, Mayor
Introduced by: Gartin
Seconded by: Beatty-Hansen
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Martin,Nelson
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 22nd day of January, 2019.