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HomeMy WebLinkAboutResolution 4464 Application to Big Sky Economic Development Trust Fund for Apptus Corp. IS3 UZ�� COMMISSION RESOLUTION NO. 4464 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 APTTUS COPORATION. 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 job creation and expansion, thus positively impacting the economy of the entire region; and WHEREAS, Apttus Corporation, 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 and supports economic diversity; and WHEREAS, the Montana Department of Commerce administers the Big Sky Economic Development Trust Fund Category I job creation program; which is 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 in Montana; 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 Economic Development 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 Big Sky Economic Development Trust Fund Program to assist Apttus Corporation in their expansion project and that the Prospera Business Network will manage all aspects of the grant. 1 PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 5th day of August, 2013. L S EAN A. BECKER Mayor ATTEST: Dp�City Clerk APPROVED AS TO FORM: GRE LLIVAN City Aftorney 2 APPENDIX A: APPLICATION FORM — ECONOMIC DEVELOPMENT PROJECTS MONTANA DEPARTMENT OF COMMERCE BIG SKY ECONOMIC DEVELOPMENT TRUST FUND (BSTF) CATEGORY I: ECONOMIC DEVELOPMENT JOB CREATION PROJECT Please reference the Application Guidelines for a complete explanation of required application information. Requirements: • Submit 9 original and 2 copies (3-hole punched, not spiral bound or double-sided). I. APPLICANT INFORMATION — LOCAL/TRIBAL GOVERNMENT Name of Local/Tribal Government Entity City of Bozeman Federal Tax ID Number 81-6001238 Chief Elected Official Sean Becker, Mayor Full Name&Title Contact Person (Full Name &Title) Brit Fontenot, Director of Economic Development Address (Street, City and 9-Digit Zip Code) 121 North Rouse Avenue PO Box 1230 Bozeman, MT 59771 County Gallatin Phone Number 406-582-2258 Email Address bfontenot@bozeman.net Fax Number 406-582-2323 II. ASSISTED BUSINESS INFORMATION Legal Name of Business to Receive Apttus Corporation Assistance Address of Project Location Street address TBD, Bozeman MT(under construction Contact Person (Full Name &Title) Stephanie Covert, Sr. Director of Sales Operations Address (Street, City and 9-Digit Zip Code) 1400 Fashion Island, Suite 200 San Mateo CA 94404 Phone Number 650.539.2053 or 406.599.4944 Email Address scovert(cDar)ttus.com Business North American Industrial 7372 Pre-packaged software Classification System (NAICS) or Standard Industrial Classification S.I.C. Code Business Federal Employer 20-554-2615 Identification Number FEIN Business Project Status Expansion (Startup,Expansion, Relocation,etc. Big Sky Economic Development Trust Fund Program Appfication Guidelines Effective July 1,2013 Montana Department of Commerce 1 Category I—Economic Development—Job Creation III. PROJECT SUMMARY INFORMATION Total Project Cost(Must match the Sources and $3,346.284 Uses form Type of Assistance Requesting (Grant GRANT or Loan Amount of BSTF Funds Requested $365,750.00 The maximum total BSTF funding may not exceed up to$5,000 per new eligible job for counties not defined as a High-Poverty County or up to$7,500 per new eligible job for counties that meet the High-Poverty County definition. Current poverty map and Award Calculator Map can be found on the program's website at www.bstf.mt.gov Total Matching Funds Apttus will match BSTF funds $1 to $1. (see Section I-definition of Match) Apttus will incur costs of$100,534 on The matching funds must be investment by the local or tribal government and/or the assisted business at the equipment, in addition to monthly operating Montana site no earlier than six months before the costs for commercial lease payments ranging BSTF award and must beo equal to or greater than$1 of from $240 000 to 300 000 per month. local funds for every$1 of BSTF(100%)funding $ , received for counties not defined as a High-Poverty County or$1 of local funds for every$2 of BSTF funds (50%)for counties that meet the High-Poverty County definition. Proposed Use of BSTF Funds: Purchase of equipment for the direct use of Eligible Activities Listed in Section II C.of the t Application Guidelines he assisted business. Total Number of New Jobs to be 77 created Total Number of New BSTF Eligible 77 Jobs to be created. Hourly wage range for BSTF Eligible Hourly wage rates will range from $19/hour to Jobs to be created. Include the lowest hourly $144 per hour. wage rate and the highest wage rate.If benefits are to be included in the calculation to meet the BSTF required wage rate(page 5)—Appendix B—BSTF Benefit Certification is mandatory. IV. PARTNER ORGANIZATION (IF APPLICABLE) Economic development organizations may be involved in implementing and administering a project if the eligible applicant agrees to such an arrangement. If a partner organization will be involved in the project, please provide the information in this section. Contact Person (Full Name & Title) Stuart R. Leidner Organization Prospera Business Network Address (Street, City and 9-Digit Zip Code) 2015 Charlotte Street, Suite 1 Bozeman MT 59718-2015 Phone Number 406-587-3113 Email Address sleid ne r(cD pros pera businessn etwo rk.org What are the partner organizations Project grant management and administration. responsibilities relative to completing the proposedproject? Big Sky Economic Development Trust Fund Program Application Guidelines Effective July 1,2013 Montana Department of Commerce 2 Category I—Economic Development—Job Creation V. PROJECT INFORMATION Please describe, in detail, the project. Include the following: a. The nature of the proposed project, b. The nature of the assisted business, c. For what the BSTF financial assistance would be used (ex: equipment purchase, lease rate reduction etc.), d. identify the entities involved in completing the proposed project, including management of the project/staffing plan, e. An implementation plan/timeline for project activities start-up through closeout, and f. Provide any relevant historical information on this project or the region it would support. Please see attached proposal document for detailed information. Business's Current Employment Level 2 in Montana Business's Current Employment Level 2 at the Project Site Employee Benefits: See Appendix B (if ERISA eligible benefits are included in the calculation to meet the wage requirement) Employee benefits are described in the attached proposal document. VI. PROJECT ECONOMIC IMPACT STATEMENT Please provide a summary of the impacts (both positive and negative) the project would have on the state, regional and community economy as well as any services or functions that the business provides to the community, region or state. Also identify if the business associated with the project is competing with any local or regional existing businesses. There are no known negative impacts from this project on the community, region or state. This project has significant positive economic impact, as the company is providing 77 net new high wage jobs to the community, further diversifying the economic base of Bozeman, the region and the state as a whole. This company will help diversify the job opportunities in the area, attract new talent to the labor pool, provide opportunities for the graduates of the university. Apttus, is committed to being a community partner, and a partner with Montana State University to help foster the growth of student opportunities in the engineering, and computer sciences. There are no know businesses that compete with this company locally or regionally for the type of software product development at Apttus. This company further diversifies an important economic cluster for economic development in the region and the state. Big Sky Economic Development Trust Fund Program Application Guidelines Effective July 1,2013 Montana Department of Commerce 3 Category I—Economic Development—Job Creation VII. PROJECT SOURCES & USES OF FUNDS SOURCE: MATCH SOURCE: SOURCE: TOTAL BSTF SOURCE: REQUESTED Apttus Corp. Administration (up to $18,287.50 $18,287.50 5%, max $30,000) ACTIVITY BUDGET Machinery/Equipment $365,750.00 $100,534.00 $466,284.00 Purchase Land Purchase Lease rate Reduction Employee Training Other: Commercial $2,800,000.00 $2,800,000.00 Lease/year TOTAL PROJECT $384,037.50 $2,900,534.00 $ $ $3,284,571.50 • Provide a total project cost breakdown. • Provide a narrative, including the source, use and status (on hand, awarded, committed, applied for), of all funds to be utilized in satisfying the program matching funds requirements. • Provide a description and documentation detailing how all project costs were verified, specifying how and by whom they were determined (such as who prepared the cost estimates, equipment lists) and describe the reasonableness and completeness of the cost estimates. • Provide written commitments to make the investments (match) as described. The commitment should be from the local or tribal government and/or the assisted business. PLEASE REFER TO EQUIPMENT COSTS SECTION OF THE ATTACHED PROJECT PROPOSAL, The Department will withhold ten percent (10%) of the total authorized award amount for administration, until all tasks outlined in the contract have been completed and approved by the Department. Big Sky Economic Development Trust Fund Program Application Guidelines Effective July 1, 2013 Montana Department of Commerce 4 Category I—Economic Development—Job Creation VIII. CERTIFICATION BY LOCAL GOVERNMENT AND BUSINESS As the responsible authorized agents of Local or Tribal Government Applicant: City of Bozeman, and Applicant Business:Apttus, Corporation, 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: 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. H The Applicant designates Prospera Business Network,406-587-3113,Stuart R. Leidner Executive Director as the authorized contact for any additional Department requests for the release of additional information regarding this application for BSTF funds. Local or Tribal Government Applicant: Prospera Business Network will accept responsibility for management of the project and compliance with Big Sky Economic Development Trust Fund regulations. Applicant Business: Stephanie Covert will accept responsibility for compliance with applicable Big Sky Economic Development Trust Fund regulations as specified in this application. Name(typed): Sean Becker Local Government Title(typed): Mayor, City of Bozeman City of Bozeman Chief Elected Official Signature: X A Date: Name(typed): Neehar Giri Assisted Business Title(typed): President Apttus, Corporation Aut rized Repre entative Signature: X Date: August 5 , 2013 Big Sky Economic Development Trust Fund Program Application Guidelines Effective July 1,2013 Montana Department of Commerce 5 Category I—Economic Development—Job Creation