The URL can be used to link to this page

Home My WebLink About06-25-18 City Commission Packet Materials - C11. Resolution 4918, BSTFG for Free Agent Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Director of Economic Development David Fine, Economic Development Specialist SUBJECT: Resolution 4918 Supporting the Application to the Big Sky Economic Development Trust Fund Program Administered by the Montana Department of Commerce, on Behalf of Free Agent. MEETING DATE: 6/25/2018 AGENDA ITEM TYPE: Consent RECOMMENDATION: Adopt Resolution 4918 authorizing the City’s application for a Big Sky Trust Fund Category I job creation grant on behalf of Free Agent and administered by Northern Rocky Mountain Economic Development District (NRMEDD). 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 NRMEDD. Should the grant be awarded to Free Agent, staff recommends that the City Commission appoint NRMEDD to administer all aspects of the grant on behalf of the City of Bozeman. Free Agent is a software company, originally based in Silicon Valley, CA and would like to grow their company and shift their corporate headquarters to Bozeman, Montana. They offer the easiest to use CRM for small business. The founding leadership team were executives at ServiceNow (NYSE: NOW), the 2nd cloud software company to ever break $1B in annual sales. The founding CEO also has held leadership roles at Oracle & was the founding CEO of Coupa, a cloud software company that is now public (NASDAQ: COUP) and valued at almost $3.5B. www.freeagentcrm.com UNRESOLVED ISSUES: None 109 ALTERNATIVES: As proposed by the City Commission FISCAL EFFECTS: If the application is successful, Free Agent may be awarded up to $5,000 per net new job with a target of 25 net new jobs over the next 24 months for a total grant award, if all proposed new jobs are filled, of $125,000. It is important to note that the Big Sky Trust Fund support provided by the City of Bozeman, in longstanding partnership with NRMEDD, is not without financial risk, although the City and NRMEDD 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: 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. 110 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 local Economic Development Organizations, 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. Attachments: 1) Resolution 4918; and 2) BSTF Signature Certification for City of Bozeman. Report compiled on: June 12, 2018 111 RESOLUTION NO. 4918 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 FREE AGENT. 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, Free Agent, 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 112 WHEREAS, the City Commission hereby authorizes and appoints Northern Rocky Mountain Economic Development District (NRMEDD) 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 to the Montana Department of Commerce, Big Sky Economic Development Trust Fund Program to assist Free Agent in their expansion project and that NRMEDD 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 25th day of June, 2018. CYNTHIA L. ANDRUS Mayor ATTEST: ROBIN CROUGH City Clerk APPROVED AS TO FORM: GREG SULLIVAN City Attorney 113 1 Big Sky Economic Development Trust Fund Program Montana Department of Commerce Job Creation Project Effective Date July 1, 2015 SIGNATURE CERTIFICATION FORM Big Sky Economic Development Trust Fund Program Montana Office of Tourism and Business Development Montana Department of Commerce 301 S. Park Avenue P.O. Box 200505 Helena, Montana 59620-0505 This is to certify that the following officials1 are authorized to sign requests for payment of Montana Big Sky Economic Development Trust funds for the Free Agent: City of Bozeman. BSTF grant: 1. __________________________________ __________________________ Signature Title __________________________________ __________________________ Typed Name 2. __________________________________ __________________________ Signature Title __________________________________ __________________________ Typed Name 3. __________________________________ __________________________ Signature Title __________________________________ __________________________ Typed Name It is understood that any two of the above signatories must sign each request for payment submitted. 1 Suggested signatories include the chief elected official (Mayor or Chairperson of County Commission), city or county clerk or treasurer and the BSTF project manager. At least three officials should sign; and it is acceptable to have more to assure that at least two signatories will be available to sign requests for BSTF funds. 114 2 Big Sky Economic Development Trust Fund Program Montana Department of Commerce Job Creation Project Effective Date July 1, 2015 2 I hereby certify that I have witnessed the signing of the above named signatures. ___________________________________ Date: _______________________ Signature of Witness ___________________________________ Typed Name and Title of Witness State of Montana County of __________________ This instrument was signed before me on __________________ by________________________________________________________________. Print name of signer(s) Affix seal/stamp as close to signature as possible. ________________________________________ Notary Signature [Montana notaries must complete the following, if not part of stamp.] _________________________________________ Printed Name Notary Public for the state of _________________ Residing at________________________________ My Commission expires:___________, 20_______ 2 Suggested witness is an elected official other than one of the three signatories. 115