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HomeMy WebLinkAbout15- City Grant #2015-008 Big Sky Trust Fund Grant Application for Economic DevelopmentAPPENDIX 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: 1. APPLICANT INFORMATION — LOCA JTRIBAL GOVERNMENT Name of Localrrribal Government Entity City of Bozeman Chief Elected Official Full Name & Title Jeff Krauss, M Mayor 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 Phone Number 406-582-2258 Email Address bfontenot@bozeman.net Fax Number 406-582-2323 11. ASSISTED BUSINESS INFORMATION Legal Name of Business to Receive Montana Instruments Assistance Address of Project Location 151 Evergreen Dr. Suite D Bozeman, MT 59715- 2487 Contact Person (Full Name & Title) Krista Kubischta, Admin Assistant Address (Street, City and 9 -Digit Zip Code) 151 Evergreen Dr., Suite D. Bozeman, MT 59715-2487 Phone Number 406-551-2796 Email Address Kirsta.Kubischta(cDmontanainstruments com County project is located in Gallatin Business North American Industrial 3345194 Classification System NAICS Business Project Status Expansion (Startup, Expansion, Relocation, etc. Please describe in detail how the Montana Instruments meets the definition of a proposed Assisted Business will meet basic sector business. Since inception 99% of the eligibility criteria (See Page 8for defnNanofeligtble their sales have been to entities outside of the Asslated Bustrtess) State of Montana. To date only 1% of their products have been shipped to Montana based research entities. The remainder (99%) have been exported outside of Montana Big bky Lconomic Development Trust Fund Program Application Guidelines Effective January 26, 2015 Montana Department of Commerce 1 Category I — Economic Development —lob Creation Ill. PROJECT SUMMARY INFORMATION Total Project Cost (Must match the Sources and $191,250.00 Uses form Address (Street, City and 9 -Digit Zip Code) Type of Assistance Requesting (Grant GRANT or Loan Email Address Amount of BSTF Funds Requested $127,500.00 The maximum total BSTF funding may not exceed up to $5,000 per new eligible job for counties no 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 websile at www.bslf.mt. ov Total Matching Funds Montana Instruments will match BSTF funds (see Section I - definition of Match) $1 to $2. Montana Instruments will incur a The matching funds must be investment by the local or tribal government and/or the assisted business at the one time cost for a new accounting software Montana site no earlier than six months before the system totaling just over $94K. BSTF award and must be equal to or greater than $1 of local funds for every $1 of BSTF (100%) funding received for counties not defined as a High -Poverty Note: Only a portion of the total cost will be County or $1 of local funds for every $2 of BSTF funds (50%) for counties that meet the High -Poverty County allocated as match for this project. definition. Proposed Use of BSTF Funds: Purchase of equipment and office furnishings Eligible Activities Listed in Section II C. of the for the direct use of the assisted business. Application Guidelines Total Number of New Jobs to be 18 created Total Number of New BSTF Eligible 17 Jobs to be created. Hourly wage range for BSTF Eligible Hourly wage rates will range from $18/hour Jobs to be created. Include the lowest hourly and up to approximately $40/hour. (not wage rate and the highest wage rate. If benefits are to including 9 benefits ) be included in the calculation to meet the BSTF required wage rale (page 5) –Appendix B—BSTF Benefit Certification is mandato 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 sleidner(cDprosperabusinessnetwork.org What are the partner organizations responsibilities relative to completing the proposed project? Project grant management and administration. Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26, 2015 Montana Department of Commerce 2 Category I - Economic Development -job Creation krA Please describe in detail, the proposed project. The proposed project is a business expansion project. Montana Instruments currently employees 26 total employees, 22 full-time and 4 part-time employees at their Bozeman facility. The company is in the midst of a significant growth period and are projected to add an additional 18 new employees to the research and manufacturing facility in the next two years. This projected expansion will require that they lease additional space to house the expanded operations. Please describe the Assisted Business As one of 26 photonics related companies located in Bozeman, Montana Instruments is an industry leader that specializes in precise and innovative optical measurement solutions for research and industry. Their value proposition is best stated by their founder, Luke Mauritsen: "To the next generation of scientists on the cutting edge of materials research, our turnkey microscopes provide stable variable temperature measurements with the push of a button so they can be the first to make new discoveries and publish them." The Montana Instruments story began when one cryogenics engineer saw a need for greater performance. As a developer of cryogenic optical systems for defense and advanced computing, Luke Mauritsen could see that newly available technologies weren't being fully utilized to create better instruments. Even state of the art cryogenics research technology lacked performance capabilities and usability. Cryogenics research was more difficult and time-consuming than it needed to be. Montana Instruments began development of its first instrument in 2009 with $400k of investment and began shipping the first commercial systems in January of 2011. Since then they have grown to approximately $4M in revenue. Unwilling to settle for the performance of the instruments that were available, Mauritsen assembled a team of cryogenic, firmware and software experts and listened hard to researchers' needs. The result was the formation of Montana Instruments Corporation and the development of the Cryostation, a powerful new tool that provides a host of capabilities and unparalleled usability. Starting with the Cryostation, Montana Instruments has defined itself by a passion for innovation, an eagerness to respond to researchers' needs, and a commitment to worldwide support and service. Montana Instruments makes researchers more effective by creating better high -precision optical measurement solutions for research, industry and education. Montana Instruments is shaping the way research is done at low temperatures and is creating a new industry in Montana which has long term growth potential. Montana Instruments long range goals are: 1. Pioneer and dominate "Variable Temperature Measurement Instruments' 2. Beginning in Montana, create a network of related companies with long term growth potential. 3. Strengthen America's economic power by creating a strong industry which brings income to the US from foreign countries. 4. Give back to the local and world-wide communities in ways that help them to create Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26, 2015 Montana Department of Commerce 3 Category I — Economic Development —Job Creation Please explain what the BSTF financial assistance would be used: The BSTF financial assistance being requested by Montana Instruments would be used to purchase new equipment to support the on -boarding of the 17 eligible net new hires. The funds would be used for the following: • Computers and accessories • Office furnishings • Optical Manufacturing equipment platforms Please identify the entities involved in completing the proposed project, including management of the projecbstafffng plan: Brit Fontenot with the City of Bozeman, will be the designated liaison to work with regarding contracting, grant track as it pertains to the City's responsibilities for the project. Stuart Leidner with Prospera Business Network will be responsible for overall grant management oversight and project reporting to both the City and the State of Montana. He will work directly with the assisted business to ensure the necessary reporting and documentation tracking is completed. At Montana Instruments the implementation of the hiring plan and tracking eligible purchasing will be overseen by the executive team: • Luke Mauritsen, President and CEO • Bill Harm, Chief Financial Officer Project administration and tracking will be run by: Krista Kubischta, Administrative Assistant Hiring will be overseen by: Luke Mauritsen, President Please provide an implementation plan/timeline for project activities start-up through closeout: This project will run over the course of the next two years. The anticipated start date of hiring and on -boarding new hires would commence in April of 2015, with the anticipated end hire dates in 2017. Please provide any relevant historical information on this project or the region it would support. Montana Instruments is one of 26 photonics/optics related companies located in Bozeman, MT. The industry is one of the most important emerging technology sectors not just in Gallatin, County, but also the State of Montana. This industry sector accounts for nearly 400 jobs in our area, with an average annual wage rate of nearly $75K. It is projected that this industry cluster will grow to nearly 1,000 jobs in this region by 2024. The BSTF grant support of the expansion of this company is clearly aligned with the Governor's Main Street Program initiatives of nurturing emerging industries and encouraging innovation. Support for the growth of companies like Montana Instruments continues it will bolster local economic development efforts to create a climate to attract and retain a highly educated workforce, and new businesses. Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26, 2015 Montana Department of Commerce 4 Category 1— Economic Development —Job Creation Business's Current Full -Time Employment Level in Montana 22 Full Time Business's Current Full -Time Employment Level at the Project Site 22 Full Time Employee Benefits: See Appendix B (if ERISA eligible benefits are included in the calculation to meet the wage requirement) NOT APPLICABLE FOR THIS PROJECT VI. PROJECT 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 nroiect is competing with anv local or regional existina 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 17 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, and provide opportunities for the graduates of the university. There are no known businesses that compete with this company locally or immediate region for the type of product manufactured at this facility. Assistance for this company will help further diversify an important emerging industry cluster for continued economic growth and prosperity in the region and the state. Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26, 2015 Montana Department of Commerce 5 Category I — Economic Development —Job Creation VII. PROJECT SOURCES & USES OF FUNDS # Units Unit Cost MDOC SOURCE: BSTF Cat I Requested MATCH SOURCE: Confirmed TOTAL REQUESTED Administration (up to 5%, max $30,000) $6,375.00 $6,375.00 ACTIVITY BUDGET Dell 24inmonitors ,S 32 Machinery/Equipment/ Purchase $50,070.07 4,000.00 $50,070.07 Software Purchase $71,054.93 $63,750.00 $134,804.93 Land Purchase 11,344.00 II,3++.no Lease rate reduction 161 S 49.99 $ Employee Training > -9't.84 Dell Server Other: Commercial Lease/year S 6,000.00 S 6,000.00 TOTALS $127,500.00 $63,750.00 $191,250.00 BSTF funds will be used to purchase equipment, software, and office furniture. There are 17 net new hires. Production area staff will use work stations and one computer on a co -share basis. The matching funds being provided by Montana Instruments Corporation are a portion of the costs of a new accounting/manufacturing software purchase and installation. BSTF Category 1: Montana Instruments Eligible Expenses Item # Units Unit Cost I Total Amount BSTF Funded Match Funded ERP iccocmtnl$/_\-fanufachu_Softu-a.xe 1 9_4._,200_.00- 94,200.00 Dell 24inmonitors ,S 32 S 125.00_ S 4,000.00 4jlmuo Dell Precision T1700 16.S 709.00 S 11,344.00 II,3++.no Dell KN1632 Keyboard and Mouse 161 S 49.99 $ 799.84 > -9't.84 Dell Server 1 S 6,000.00 S 6,000.00 o iiuu.0" Nexus Optical Table_ 1 41 S 6,701.56 �I, S 26,80624 Microsoft Office Software 16 S 219.99', S 3,519.84 3,519. Act Sales/Marketing Software - 2 S 269.99 S 539.98 539. iUicrosoftPublLsher 2 S 109.99 S 219.98 S 219.93 Microscope _ I $ 929.99 S 929.99 ? 9210M Soldering station I', S 190.00', S 190.00 S 190.1mu ,Solidworks 3D Software 10'.. S 3,995.00 S 39,950.00 36,325.1' S . _ S e -TOTAL $ 188,499.87 $ 121,125.1111 5 _ . NOTE: Portions of ERP and Solidworks 3D software will be shown as march NOTE: Production area employees can share one of the computers _ i 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 January 26, 2015 Montana Department of Commerce 6 Category 1- Economic Development -Job Creation Vill, CERTIFICATION BY LOCAL GOVERNMENT AND BUSINESS As the responsible authorized agents of Local or Tribal Government Applicant: City of Bozeman, and Applicant Business: Montana Instruments, Corp., 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. M 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: Krista Kubischfa will accept responsibility for compliance with applicable Big Sky Economic Development Trust Fund regulations as specified in this application. Name Local Government (typed): Chris Kukulski Title (typed): City Manager, City of Bozeman City of Bozeman Signature: X Date: Assisted Business Name Luke Mauritsen (typed). President Title (typed: Montana Instruments, Corp. Authorized Representative Signature: X ✓ i F%1 Date: Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26, 2015 Montana Department of Commerce 7 Category I —Economic Development— lob Creation City of Bozeman Grant Routing Cover Sheet This form is used in conjunction with Administrative Order 2014-01, adopting the Grant Application and Reception Policy. When a Department Director signs grant documents under this provision, they are certifying that they understand and will carry out the provisions of the grant and its impact on city operations and finances. All the required boxes must be initialed by the appropriate departments. Use a separate routing sheet for each phase of the grant process. Utilize assigned grant number for each phase for tracking purposes. Grant Document Title: Big Sky TF Job Grant CFDA # (applies to Federal grants) Department: Economic Development Phase of Process: 1-1 Notice of Intent Upon commission Appmvai Date Document Signed: Grant # (issued by City Clerk): 2015-008 .,,,,,�,�„v„�o„ppe., PmWeOMApd�9asFena Grant Total: Grant Match: Grant Project Manager: David Fine/ Stuart Leidner (Prospera) Application El Award/Contract For all grants under $20,000 in Department Finance Office City Manager Original Signed value. Director Grant Documents *Deportment Director initials �� 9/2) nh to City Clerk Does not require approval on Commission meeting agenda [jr�i'Oni�CnO n ,r For all grants over $20,000 in Department Finance Office City Manager M —&n Signed value. Director Grant Docu *Deportment Director initials �� 9/2) nh to Cit I �o verify notification to City Commission and City Manager [jr�i'Oni�CnO n ,r within 30 days of grant application. REQUIRES City Commission Approval DATE of COMMISSION MEETING: March2,2015 Presented by: David Fine VConsent F1 Action Revised 10/27/2014 i Staff Instructions for Use and Expectation of Review Department Director Fully understands the grant and its impact on city operations and finances and intends to carry out the grant provisions if awarded Written notification to City Commission and City Manager if grant is over $20,000 Coordinates with legal staff or applicable departments for all sub -recipient or related contractual documents associated with the grant Finance Office Receives copies of grant documents and/or accounts for potential impact on city finances City Manager - Authorizing signature City Clerk - Issues grant routing number - Retains copy of original signed documents - Tracks grant documents by number Revised 10/27/2014