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HomeMy WebLinkAbout09-16-19 City Commission Packet Materials - C3. Amendments with MDC for the BSTF MeatEater Grant Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Director of Economic Development SUBJECT: Authorize Mayor Andrus to sign Montana Department of Commerce, Big Sky Economic Development Trust Fund Program Grant Amendments to the Business Assistance Agreement and Management Plan to the MeatEater, Inc, Contract # MT-BSTF-1-19-12 MEETING DATE: September 16, 2019 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize Mayor Andrus to sign Montana Department of Commerce, Big Sky Economic Development Trust Fund Program Grant Amendments to the Business Assistance Agreement and Management Plan to the MeatEater, Inc, Contract # MT- BSTF-1-19-12. BACKGROUND: MeatEater, Inc has grown at a faster pace than originally anticipated. As a result of the rapid expansion of their employee base in Bozeman, MeatEater is requesting to amend the Business Assistance agreement and Management Plan to reflect the need to hire more employees and provide more time to recruit employees. (Links 1 – 3) The nature of the amendment are summarized below: Business Assistance Agreement amendments include; 1) increasing the total award amount from $50,000 to $100,000, 2) increasing the number of eligible net new jobs from 10 to 20 and adding one additional year (January 16, 2021) to the contract to complete the hiring. (Exhibit 1) 42 Management Plan amendments include; 1) adding a Prospera employee, Alexa Freeburg, to the administrative structure of the of the grant and 2) increasing the total award amount from $50,000 to $100,000. (Exhibit 2) UNRESOLVED ISSUES: None ALTERNATIVES: As proposed by the City Commission FISCAL EFFECTS: The proposed contract amendments do not impact the fiscal effects. LINKS: 1) August 6, 2018 City Commission Packet Material; 2) April 22, 2019 City Commission Packet Material; and 3) BSTF Contract # MT-BSTF-1-19-12. EXHIBITS: 1) Business Assistance Agreement Amendment A; and 2) Exhibit A Management Plan Amendment A. Report compiled on: 09-05-19 43 1 of 2 Business Assistance Agreement MeatEater, Inc. September 1, 2019 Amendment A MONTANA DEPARTMENT OF COMMERCE BIG SKY ECONOMIC DEVELOPMENT TRUST FUND Grant MT-BSTF 1-19-12 Business Assistance Agreement-Amendment A The parties to this contract (the Contract) are the City of Bozeman, (the “City, Town, County, or Tribal Government”), and MeatEater, LLC., (the “Assisted Business”); Tax identification number: 82-4124267. The City and the Assisted Business mutually agree to amend the Business Assistance Agreement, executed by them as follows: 1. B. PURPOSE: The purpose of this Contract is for the Assisted Business to use up to $100,000 in Big Sky Economic Development Trust Fund (the “BSTF”) grant funds, to be uses as follows: a. Up to $92,000 to assist with equipment, furniture, fixtures and wage reimbursement for net new jobs created. The Assisted Business has agreed to create 20 eligible net new jobs at the Project Site located at Bozeman, MT (the “Project Site”) in the Government’s jurisdictional area within the Contract time period. b. In addition, MeatEater, Inc., has agreed to a total new investment at the Project Site, which is equal to or greater than $1 for every $1 of BSTF financial assistance received or up to $100, 000 within this Contract time period, to satisfy the required match ration for the grant. Section 3. COMPENSTATION AND CONSIDERATION: The total amount to be reimbursed to the Assisted Business under the Contract shall be up to $100,000 (less grant administration fees) per eligible net new jobs created by the Assisted Business for documented costs with reimbursement not to exceed a total of 92,000 (total BSTF award, minus grant administration fees) for the entire Contract. a. The Government will authorize the Assisted Business to draw up to $92,000 (total BSTF award minus grant administration fees) against the funding reserved for the Assisted Business by the Department. Unless otherwise authorized by the Government, the Assisted Business may receive grant funds periodically over the Contract period only upon documenting the expenditure of the required matching funds and the creation of the eligible net new jobs by the Assisted Business, and after incurring eligible expenses. Section 4. PERIOD OF CONTRACT: The Contract will be in effect for the period commencing January 16, 2019 and will expire January 16, 2021 unless otherwise terminated by law or in compliance with the terms of the Contract. 2. All other provisions of the Contract remain in full force and effect. 44 2 of 2 Business Assistance Agreement MeatEater, Inc. September 1, 2019 Amendment A Kevin Sloan, CEO Date MeatEater, Inc. Jen Nord, VP of Finance Date MeatEater, Inc. Cyndy Andrus, Mayor Date for the City of Bozeman Commission ATTEST: Legal Reviw 45 1 of 3 Exhibit A Management Plan MeatEater, Inc. September, 1, 2019 Amendment A MONTANA DEPARTMENT OF COMMERCE BIG SKY ECONOMIC DEVELOPMENT TRUST FUND Grant MT-BSTF 1-19-12 Exhibit A MANAGEMENT PLAN Amendment A This Contract Amendment is entered into by and between the City of Bozeman, (the “City”) and MeatEater, Inc., (the “Business”). The Contractor and the Business mutually agree to amend the Management Plan (“Plan”), executed by them on April 30, 2019 as follows: I. A. ADMINISTRATIVE STRUCTURE Section 2. Prospera Business Network (PBN) b. Carolyn Murray, Finance and Accounting Manager and Alexa Freeburg, Client Services Coordinator, will serve as the PBN Administrators and will be responsible for overall coordination o the BSTF grant award to the City of Boseman. Telephone (406) 587- 3113. II. B. FINANCIAL MANAGEMENT As designed in the BSTF contract the total amount of the BSTF award will not exceed $100,000. Section 2. Economic Development Organization – Administrative Funds a. Administrative payments will consist of reimbursement for actual time and costs incurred. The EDO may receive up to $400.00 per eligible net new job created by the Assisted Business for documented costs with reimbursement not to exceed a total of $8,000. III. All other provisions of the Contract remain in full force and effect. 46 2 of 3 Exhibit A Management Plan MeatEater, Inc. September, 1, 2019 Amendment A WE HAVE READ THE MANAGEMENT PLAN AND ARE AWARE OF THE RESPONSIBILITIES FOR THE MANAGEMENT AND OVERALL SUCCESS OF THE BSTF PROJECT AS THE DESIGNATED LIAISONS FOR THE PROJECT: Government PROJECT MANAGER: FISCAL CONTACT: Brit Fontenot Date Kristin Donald Date Director of Economic Development Finance Director City of Bozeman City of Bozeman EDO ADMINISTRATOR: BUSINESS CONTACT: Carolyn Murray Date Jen Nord Date Finance and Accounting Manager VP of Finance Prospera Business Network MeatEater, Inc. EDO ADMINISTRATOR: Alexa Freeburg Date Client Services Coordinator Prospera Business Network 47 3 of 3 Exhibit A Management Plan MeatEater, Inc. September, 1, 2019 Amendment A IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the __first____ day of _____September________, 20_20_. Cyndy Andrus Date Paul Reichert Date Mayor Executive Director City of Bozeman Prospera Business Network Kevin Sloan Date CEO MeatEater, Inc. 48