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HomeMy WebLinkAbout08-06-18 City Commission Packet Materials - C15. Res. 4941, BSTFG Application for AdvicePay Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Director of Economic Development SUBJECT: Resolution 4941 Supporting the Application to the Big Sky Economic Development Trust Fund Program Administered by the Montana Department of Commerce, on Behalf of AdvicePay. MEETING DATE: August 6, 2018 AGENDA ITEM TYPE: Consent RECOMMENDATION: Adopt Resolution 4941 authorizing the City’s application for a Big Sky Trust Fund Category I job creation grant on behalf of AdvicePay 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 AdvicePay, staff recommends that the City Commission appoint Prospera to administer all aspects of the grant on behalf of the City of Bozeman. AdvicePay assists financial planners with their payment processing systems and is currently planning their physical expansion into the Bozeman market, including the creation of up to thirteen (13) net new jobs. Resolution 4941, supporting their application for BSTF grant funding, helps to ensure that the additional positions envisioned for this growing company become a reality in Bozeman. 209 ADVICEPAY IN THE NEWS: PR Newswire, January 22, 2018 AdvicePay Launches as First Compliant Payment Processing Solution for Fee-For-Service Financial Planners Bozeman Daily Chronicle, November 9, 2017 Bozeman tech company to expand after raising $500,000 UNRESOLVED ISSUES: None ALTERNATIVES: As proposed by the City Commission FISCAL EFFECTS: If the application is successful, AdvicePay may be awarded up to $5,000 per net new job with a target of thirteen (13) net new jobs over the next twenty- four (24) months for a total grant award, if all proposed new jobs are filled, of $65,000. 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: 210 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. While important to be aware of the contractual relationships and obligations, it is also important to note that, to date, neither the City nor the Department of Commerce has exercised theses sections on an assisted business in Bozeman. In partnership with the Department of Commerce and Prospera, the City has supported seven BSTF assisted businesses. The chart below shows the details 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. 211 Attachments: 1) Resolution 4941; and 2) BSTF Signature Certification for AdvicePay. Report compiled on: July 17, 2018 212 RESOLUTION NO. 4941 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 ADVICEPAY. 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, AdvicePay, desires to expand their business and create additional technology-related jobs in Bozeman; and WHEREAS, the City Commission has determined that the technology sector 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 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 213 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 AdvicePay 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 6th day of August, 2018. CYNTHIA L. ANDRUS Mayor ATTEST: ROBIN CROUGH City Clerk APPROVED AS TO FORM: GREG SULLIVAN City Attorney 214 VIII. CERTIFICATION BY LOCAL GOVERNMENT AND BUSINESS As the responsible authorized agents of City of Bozeman, and AdvicePay Inc. we hereby submit this Big Sky Economic Development Trust Fund Application. The information presented in this application is, to the best of our knowledge, true, complete and accuratelyrepresents the proposed project. We understand that additional information and documentation may be required. Inaddition, we understand that the local or tribal government applicant and the assisted business receiving BSTFfinancial assistance are liable for the full amount of the award that is advanced by the Department if the assisted business: misrepresents itself or its claims, fails to create or maintain the number of net new eligible jobs as specifiedin the executed contract and assistance agreement, fails to inject the required amount of match into the project as specified in the executed contract and assistance agreement, or ceases operations at the Project Site. X The Applicant designates Paul Reichert (406-587-3113) and David Atherton (406-587-3113) as the authorizedcontacts for any additional Department requests for the release of additional information regarding this application for BSTF funds. The City of Bozeman will accept responsibility for management of the project and compliance with Big Sky Economic Development Trust Fund regulations. AdvicePay Inc. will accept responsibility for compliance with applicable Big Sky Economic Development Trust Fund regulations as specified in this application. Name (typed): Title (typed): Signature: Date: Cyndy Andrus Local Government Mayor, City of Bozeman As the responsible authorized agent of the Profitable Ideas Inc., we hereby submit this Big Sky Economic Development Trust Fund Application. The information presented in this application is, to the best of our knowledge, true, complete and accuratelyrepresents the proposed project. We understand that additional information and documentation may be required. Inaddition, we understand that the local or tribal government applicant and the assisted business receiving BSTFfinancial assistance are liable for the full amount of the award that is advanced by the Department if the assisted business: misrepresents itself or its claims, fails to create or maintain the number of net new eligible jobs as specifiedin the executed contract and assistance agreement, fails to inject the required amount of match into the project asspecified in the executed contract and assistance agreement, or ceases operations at the Project Site. The assisted business agrees that the Montana Department of Commerce and the Montana Department of Revenue may share financial and tax information related to this application. Name (typed):Assisted Business Alan Moore Title (typed): CEO, AdvicePay Inc. itative Signature: Date: Authoriz epre 215