HomeMy WebLinkAbout03-25-19 City Commission Packet Materials - C12. Res 5036, Supporting the Application to the BSTF on Behalf of Swarming Tech
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Director of Economic Development
SUBJECT: Resolution 5036 Supporting the Application to the Big Sky Economic
Development Trust Fund Program, Administered by the Montana
Department of Commerce, on behalf of Swarming Technology.
MEETING DATE: March 25, 2019
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Adopt Resolution 5036 authorizing the City’s application for a Big Sky Trust
Fund Category I job creation grant on behalf of Swarming Technology 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 net new higher paying jobs; also a Bozeman City Commission priority. The
local governing body is required to apply for the grant on behalf of the business recipient as a co-
applicant with the local Certified Regional Development Corporation (CRDC). The Prospera Business
Network is local CRDC which includes Gallatin County. Should the grant be awarded, staff recommends
that the City Commission appoint The Prospera Business Network, our local CRDC, to administer all
aspects of the grant on behalf of the City of Bozeman.
Swarming Technology is a Milwaukee, Wisconsin based technology company, but more than just
an average e-commerce company. They are digital architects who build IT infrastructures for businesses
of all types and sizes. They are idea generators and problem solvers who create solutions to complex
problems. Their in-house team of creatives, strategists, project managers and technical gurus are
dedicated to making hard work pay off. Swarming Technology want to be part of Bozeman’s vibrant and
growing tech scene.
MEDIA:
The Milwaukee Business News, September 18, 2017 – Future 50 Companies are building up the
Milwaukee region
UNRESOLVED ISSUES: None
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ALTERNATIVES: As proposed by the City Commission
FISCAL EFFECTS: If the application is successful, Swarming Technology may be awarded up to
$5,000 per net new job with a target of twelve (12) net new jobs over the next twenty-four (24) months
for a total grant award, if all twelve (12) proposed new jobs are filled, of $ 60,000.
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:
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.
The City of Bozeman is the guarantor of these grants and is ultimately responsible for any
defaults. In partnership with the Department of Commerce and Prospera, the City has supported
multiple BSTF assisted businesses. The chart below shows the details of the businesses assisted since
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January, 2016. Note that one City of Bozeman grant has been closed out prior to the generation of the
table (Apptus).
ATTACHMENTS:
1) Resolution 5036; and
2) Swarming Technology Signature Certification.
Report compiled on Wednesday, March 6, 2019.
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RESOLUTION NO. 5036
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 SWARMING
TECHNOLOGY.
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, Swarming Technology, desires to expand their business and create additional
technology 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
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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 Swarming Technology 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 25th day of March, 2019.
CYNTHIA L. ANDRUS
Mayor
ATTEST:
ROBIN CROUGH
City Clerk
APPROVED AS TO FORM:
GREG SULLIVAN
City Attorney
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VIII. CERTIFICATION BY LOCAL GOVERNMENT AND BUSINESS
As the responsible authorized agents of Local Government Applicant: City of Bozeman and Applicant Business:
Swarming Technology, LLC. 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 accurately
represents the proposed project. We understand that additional information and documentation may be required. In
addition, we understand that the local or tribal government applicant 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: misrepresents itself or its claims, fails to create or maintain the number of net new eligible jobs as specified
in 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 at 406-587-3113 (at Prospera Business Network) as the authorized
contact for any additional Department requests for the release of additional information regarding this
application for BSTF funds.
Local Government Applicant: City of Bozeman will accept responsibility for management of the project and
compliance with Big Sky Economic Development Trust Fund regulations.
Applicant Business: Swarming Technology, LLC will accept responsibility for compliance with applicable Big Sky
Economic Development Trust Fund regulations as specified in this application.
Name
(typed): Local Government
Title (typed):
Chief Elected Official
Signature:X
Date:
As the responsible authorized agents of the Assisted Business: Swarming Technology, LLC 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 accurately
represents the proposed project. We understand that additional information and documentation may be required. In
addition, we understand that the local or tribal government applicant 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: misrepresents itself or its claims, fails to create or maintain the number of net new eligible jobs as specified
in 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.
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):
Ian Baxter
Assisted Business
Title (typed): CEO Swarming Technology, LLC
Authorized Representative
Signature:X
Date:
3/4/2019
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