HomeMy WebLinkAbout~Master - Endorsing Iowa Economic Development Authority for Vertex Software LLC RESOLUTION NO. 19-057
RESOLUTION ENDORSING IOWA ECONOMIC DEVELOPMENT AUTHORITY
APPLICATION FOR FINANCIAL ASSISTANCE FOR VERTEX SOFTWARE, LLC
WITH LOCAL MATCH
FOR THE CITY OF AMES
WHEREAS, the company, Vertex Software, LLC has applied for economic development
assistance from the Iowa Economic Development Authority(IEDA) for a project that includes the
build out and leasing of a building located in the ISU Research Park and includes employment
growth of 300 full-time positions; and,
WHEREAS, the IEDA is proposing direct support of the business expansion with a $1.5
million loan with half forgivable and indirect support in the form of tax credits and training
assistance that could total another$2.575 million; and,
WHEREAS, the local match from the City that is being required by the IEDA is:
1. A $300,000 loan ($150,000 at no interest and $150,000 forgivable) with the following
general terms; (1) Vertex creates 300 new jobs over five years, (2) Vertex builds or leases
a new facility located in Phase IV of the ISU Research Park.
2. City waives restrictions on tax abatement that may exist at the location of the new Vertex
building in Phase IV of the ISU Research Park, but only to allow for application for the
City's existing industrial tax abatement program.
WHEREAS, the funding for the expansion project will be as follows: State Assistance
$1,500,000;Local Match$300,000;Founder Financing$10,000,000;Business Income$19,400,000
for a Total Investment of$31,200,000; and,
WHEREAS, the State's direct assistance will be in the form of a no interest loan with half
forgivable and funding for the local match will be similar terms and funded from the Economic
Development Fund; and,
WHEREAS, the loan agreement will have the terms of the loan (both the no interest and
forgivable portions) incorporated into an agreement between the City and the company and will
include the company's promise to build/lease space in a new building in Phase IV of the ISU
Research Park and hire 300 additional employees over the next five years; and,
WHEREAS, the agreement will also include penalties should the company not fulfill its
promises and City staff will also incorporate into the loan agreement certain hurdles that must be met
before City funds will be released to the company, and,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that support of the submittal of an application from Vertex Software, LLC requesting economic
development assistance from the Iowa Economic Development Authority with local match to be
provided in the form of a $300,000 loan with half forgivable is hereby approved.
ADOPTED THIS 12`h day of February, 2019.
AX ,V -r I F P!n. 0
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Diane R. Voss, City Clerk John . Haila, Mayor
Introduced by: Betcher
Seconded by: Corrieri
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Martin, Nelson
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 12t'day of February, 2019.