HomeMy WebLinkAbout05-14-07_CDI-Aerospace Job Training Grant and Bozeman Revol_9May 14, 2007
City of Bozeman Commissioners
411 East Main Street
PO Box 1230
Bozeman, MT 59771
Dear Commissioners:
Thank you for including me on the agenda for tonight’s meeting. I appreciate the opportunity to provide
updates on the economic development initiatives that Prospera Business Network, formerly Gallatin
Development Corporation, is facilitating in the City of Bozeman. The partnership between the City of
Bozeman and Prospera Business Network remains strong and we appreciate all the support and assistance
we receive from the City of Bozeman and its employees.
The attachment to this letter provides an update on the CDI-Aerospace Job Training Grant and the
start-up of their Bozeman Engineering Center. This is an exciting project that is well on its way to
meeting the established goals.
The attachment also provides an update on our administration of the City of Bozeman’s Revolving Loan
Fund. Commissioner Becker inquired about the status of the loan fund and raised the possibility of
increasing the size of the fund through the allocation of additional economic development funds to this
program. Should the City Commission choose to increase the size of the loan fund, we are confidant that
we could increase the number and amount of loans and create new jobs in the City of Bozeman. I thank
you for your time.
Sincerely,
Bob Hietala
Chief Executive Officer
Prospera Business Network
Attachment:
CDI-Aerospace Job Training Grant and Bozeman Revolving Loan Fund Update
65
CDI-Aerospace Job Training Grant Update
CDI-Aerospace opened their Engineering Design Center in Bozeman in July 2006 to perform contract
design work on Sikorsky Helicopters. The City of Bozeman, the Governors Office of Economic
Opportunity and Prospera Business Network assisted CDI-Aerospace in locating in Bozeman. The City of
Bozeman is the fund sub-recipient and Prospera Business Network administers the job training grant.
1. Job training grant provides $200,000 from the Big Sky Economic Development Trust Fund for CDI-
Aerospace to train forty engineering staff.
2. CDI is well on their way with over thirty employees having been hired.
3. CDI has established a strong recruiting base for mechanical engineers from MSU’s engineering
program.
4. The projected financial impact to the state and local economy is approximately $2.5 million per year
in wages.
Revolving Loan Fund Update
The City of Bozeman’s Economic Development Revolving Loan Fund was established through the
repayment of economic development funds loaned to local businesses from Community Development
Block Grants (CDBG) obtained from the Montana Department of Commerce. The Fund is designed to
leverage private investment in new businesses for the purpose of generating new jobs within the
jurisdictional limits of the City of Bozeman.
In May 2006, the City of Bozeman and Prospera Business Network (then known as the Gallatin
Development Corporation) signed an agreement to transfer the Fund and the administration of the Fund to
Prospera Business Network.
1. On July 17, 2006, the Fund (with a balance $277,692) and the administrative responsibilities for the
Fund were transferred to Prospera Business Network.
2. A seven member Revolving Loan Fund Committee was established with representatives of the City of
Bozeman, local lenders and the business community.
3. As of May, 2007, the Fund has seven loans, totaling $988,000. Currently, there are no loans in default.
4. There is $390,000 available in the Fund for future lending. Prospera Business Network is in the
process of more actively promoting the Fund to local bankers and lenders. Currently, there is one
potential new loan applicant, in addition to one current borrower requesting a second loan.
5. There have been 109 jobs created by the borrowers from the fund.
66