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HomeMy WebLinkAboutF6 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Tracey Jette, Gallatin Dev. Corporation & Chris Kukulski SUBJECT: Big Sky Economic Development Fund Job Training Grant Application for CDI Corporation MEETING DATE: June 26, 2006 BACKGROUND: The Big Sky Economic Development Fund (BSEDF) was established by the 2005 Montana Legislature. Among other things, part of the purpose of the fund includes creating good-paying jobs for Montana residents; promoting long-term, stable economic growth in Montana; and providing a better lift for future generations through greater economic growth and prosperity in Montana. 75% of the trust fund earning are awarded to local governments in the form of grants and loans for economic development projects. A trust fund grant to a local government may be used by the local government to provide a grant or loan to an eligible business associated with an economic development project including workforce training grants for the training of new employees. The trust funds must be matched by the government entity or the recipient business. CDI-Aerospace, a division of CDI Corporation, has been selected by Sikorsky Aircraft Corporation, United Technologies Corporation as the contractor for their Bozeman Engineering Design Center. The center will employ 40 full-time engineers by the end of 2006 and will be located in the EDS Building on Evergreen Drive. CDI has estimated that it will cost $10,000 per employee to train the engineers on the specialized software needed to perform their jobs. CDI has requested that the City of Bozeman apply for a BSEDF training grant on their behalf. The grant request would be for $210,000 and CDI would provide the requisite $210,000 in matching funds. Gallatin Development Corporation would serve as the grant administrator via a sub- recipient agreement with the City. RECOMMENDATION: We recommend that the City Commission authorize the City Manager to sign the application for a training grant through the Montana Department of Commerce’s Big Sky Economic Development Fund for training of newly hired employees at CDI-Aeronautical. FISCAL EFFECTS: None ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, ___________________________________ ____________________________ Tracey Jette, Gallatin Development Corporation Chris A. Kukulski, City Manager Attachments: list the attachments Report compiled on June 21, 2006