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HomeMy WebLinkAbout05-21-18 City Commission Packet Materials - C19. Resolution 4913, BSTFG Application for Profitable Ideas Exchange (PIE) Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Director of Economic Development SUBJECT: Resolution 4913 Supporting the Application to the Big Sky Economic Development Trust Fund Program Administered by the Montana Department of Commerce, on Behalf of the Profitable Ideas Exchange (“PIE”). MEETING DATE: May 21, 2018 AGENDA ITEM TYPE: Consent RECOMMENDATION: Adopt Resolution 4913 authorizing the City’s application for a Big Sky Trust Fund Category I job creation grant on behalf of the PIE and administered by The Prospera Business Network. BACKGROUND: The Montana Department of Commerce administers the Big Sky Economic Development Trust Fund Category I job creation program. This State-funded program is intended to incentivize the creation of higher paying jobs; a Bozeman City Commission priority. The local governing body is required to apply for the grant on behalf of the business as a co-applicant with the local Certified Regional Development Corporation (CRDC). The Prospera Business Network (“Prospera”) is the local CRDC. Should the grant be awarded to the PIE, staff recommends that the City Commission appoint Prospera to administer all aspects of the grant on behalf of the City of Bozeman. What is the Profitable Ideas Exchange? Thirsty for insight, executives look for scalable ways to connect with each other in a human way – to genuinely talk about what is working and what is not. They look for those who have the same responsibilities and reporting relationships in similarly-sized organizations because these are their fellow travelers who feel their same pressures and challenges. Executives prize the understanding that comes from sharing war stories, observations and advice. At the same time, they value advisors for the independence and perspective they bring and know that together these two groups can form an ecosystem where best practices are 232 cross-pollinated between high-performing companies. PIE brings these leaders together. PIE’s services include: virtual roundtables, summit support, corporate dining seminars and events, research, podcasts, business development training, advisory board management and speaking. PIE is planning a physical expansion in Bozeman, including the creation of up to twenty (20) net new jobs. Resolution 4913, supporting their application for BSTF grant funding, helps to ensure that the additional positions envisioned for this growing company become a reality in Bozeman. UNRESOLVED ISSUES: None ALTERNATIVES: As proposed by the City Commission FISCAL EFFECTS: If the application is successful, the PIE may be awarded up to $5,000 per net new job with a target of twenty (20) net new jobs over the next twenty-four (24) months for a total grant award, if all proposed new jobs are filled, of $100,000. It is important to note that the Big Sky Trust Fund support provided by the City of Bozeman, in longstanding partnership with Prospera, is not without financial risk, although the City and Prospera work closely together with the assisted business to minimize the risk. If the number of jobs identified in the contract is not filled by the assisted business, but grant dollars are received by the assisted business, the contract between the assisted business and the City of Bozeman contains the following financial restoration sections: Section 8 Conditions on Method of Reimbursement: If the Assisted Business creates an eligible new job but fails to sustain that job for the requisite duration, then the Contractor shall reimburse the Department all funds received for that job. If the Assisted Business fails to create the required number of jobs, then the Contractor shall reimburse the Department the difference between the total amount advanced and the amount attributable to actual jobs created. If the Assisted Business ceases operation at the Project Site, then the Contractor shall reimburse the Department all funds received under this Contract. AND Section 3 Compensation and Consideration: 233 c. The Assisted Business agrees that if the local government or tribal government request the funds before the jobs are created, and the Department agrees to that request, the local or tribal government and the assisted business receiving BSTF financial assistance are liable for the full amount of the award that is advanced by the Department, if the assisted business: a. Fails to create or maintain the number of net new eligible jobs as specified in the executed contract and assistance agreement, or b. Fails to inject the required amount of match into the project as specified in the executed contract and assistance agreement. Additionally the Department may recapture funds if: a. At the end of the contract period the Department has overpaid based on the number of net new jobs at the end of the contract period. b. The business ceases operations at the Project Site within the contract period. In partnership with the Department of Commerce and Prospera, the City has supported eight BSTF assisted businesses. The chart below, although dated, shows the details of some of the businesses assisted since January, 2017. Note that one City of Bozeman grant has been closed out prior to the generation of the table (Apptus) and one (Simms Fishing Products) is located in Gallatin County. 234 Attachments: 1) Resolution 4913; and 2) BSTF Signature Certification for PIE. Report compiled on: 05-10-18 235 RESOLUTION NO. 4913 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO THE APPLICATION TO BIG SKY ECONOMIC DEVELOPMENT TRUST FUND PROGRAM ADMINISTERED BY THE STATE OF MONTANA, DEPARTMENT OF COMMERCE, ON BEHALF OF THE PROFITIBLE IDEAS EXCHANGE (“PIE”). WHEREAS, the Bozeman City Commission is committed to facilitating economic diversification in the City and the region; and WHEREAS, the Bozeman City Commission is committed to facilitating mid- and high- wage job creation and expansion, thus positively impacting the economy of the entire region; and WHEREAS, PIE, desires to expand their business and create additional knowledge-based jobs in Bozeman; and WHEREAS, the City Commission has determined that the knowledge economy including the information and technology sectors has high growth potential, supports mid to high wage jobs and supports economic diversity; and WHEREAS, the Montana Department of Commerce administers the Big Sky Economic Development Trust Fund Category I job creation program, a state-funded program, to create good paying jobs for Montana residents, promote long-term, stable economic growth in Montana, create partnerships, expand existing businesses and provide a better life for future generations through greater economic growth and prosperity; and 236 WHEREAS, the City Commission hereby authorizes and appoints The Prospera Business Network to administer, on behalf of the City of Bozeman, all aspects of the Big Sky Trust Fund Economic Development Category I grant and provide administrative support and other responsibility for the management and appropriate reporting to the Montana Department of Commerce. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, the City agrees to submit an application, through The Prospera Business Network, to the Montana Department of Commerce, Big Sky Economic Development Trust Fund Program to assist PIE in their expansion project and that The Prospera Business Network will manage all aspects of the grant. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 21st day of May, 2018. CYNTHIA L. ANDRUS Mayor ATTEST: ROBIN CROUGH City Clerk APPROVED AS TO FORM: GREG SULLIVAN City Attorney 237 238