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Home My WebLink About15- City Grant #2015-019 BSTF Drop Trip Iii T 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: "BSTF Os-op-THp Grant#(issued by City Clerk): a(}E 4J -i ci 1 �° N ob (O.OUiCA.be ib) ! CFDA#(applies to Federal grants) Grant TotaL:VIy 1 CO Grant Match: Department: >S IL fill t trt`,#hut 1-Grant Project Manager: 2ri4 VorileY }- Phase of Process: Notice of Intent SI Application I I Award/Contract Date Document Signed: I , a For all grants under$20,000 in Department Finance Office City Manager Original Signed value. Director Grant Documents to City Clerk Does not require approval on Commission meeting agenda For all grants over$20,000 in Department Finance Office City Manager Original Signed value. Director Grant Documents to City Clerk *Department Director initials verify notification to City Commission and City Manager within 30 days of grant ,� '- d application. REQUIRES City Commission / ve Approval , DATE of COMMISSION r " N MEETINGI �^ olrt d Presented by:iSYJQflS - �I JConsent Action l Revised 10/27/2014 f 1 1 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$20,000 - Coordinates with legal staff or applicable departments for all sub-recipient or related contractual documents associated with the grant Finance Office - Receives copies of grant documents and/or accounts for potential impact on city finances City Manager - Authorizing signature City Clerk - Issues grant routing number - Retains copy of original signed documents - Tracks grant documents by number Revised 10/27/2014 APPENDIX A:APPLICATION FORM—ECONOMIC DEVELOPMENT PROJECTS MONTANA DEPARTMENT OF COMMERCE BIG SKY ECONOMIC DEVELOPMENT TRUST FUND(BSTF) CATEGORY I:ECONOMIC DEVELOPMENT JOB CREATION PROJECT Please reference the Application Guidelines for a complete explanation of required application information. }s ,v lO N AbCA- GRPj ? ki.„ . ct,.1 2t � ,ss Name of Local/Tribal Government Entity City of Bozeman Chief Elected Official (Full Name&Title) Mayor,Jeff Krauss Contact Person(Full Name&Title) Brit Fontenot Address(Street,City and 9-Digit Zip Code) 121 N Rouse, Bozeman MT 59715 Phone Number 582-2320 Email Address bfontenot@BOZEMAN.NET Fax Number r , }$ eiggi"Y 2 g..tSLae' ."Y..P l J� T 9AaIl+J t 1 „ T1 lYk*5 S S�'yT'=S C`�jR'+f}`+^L?i2`J '1 40 5"FSS, t _ yN.. 2 'U- A...n ."'a. 'i ��"-eq1" Y"«'✓3n �Li 'rc,.avG Legal Name of Business to Receive Assistance DropTrip,Inc. Physical Address of Project Location 960 Technology Blvd,#214 Contact Person(Full Name&Title) Doug Warner,CEO Address(Street,City and 9-Digit Zip Code) P.O.Box 1750,Bozeman,MT 59771 Phone Number 406-570-7160 Email Address doug@droptrip.com County project is located in Gallatin County Business North American Industrial 519190 Classification System(NAICS) Business Project Status New Startup i (Startup,Expansion,Relocation,etc.) Please describe in detail how the proposed DropTrip is a for profit business engaged in business Assisted Business will meet the eligibility activities expected to be cash flow positive within 18mo criteria(See Page 8 for definition of Eligible with an annual revenue run rate of$5-10M within 36mo. Assisted Business) The company platform is web based with SMS messaging (cell phone). The growth pattern follows a dynamic reputation model coupled with rural and urban solution f allowing for community,state,and national network growth. Our growth projections include in-state and national rollouts,with all budgeted jobs located in Montana. r) p n� y� y4� may,, -�w.� 1 =.�t�y2 { ,��d r ;.r t7�i1I,.iAgiP' ! fy�+'h Ygl\,gaTI�ii�.. S�?:�v��4&-,+'�34i3=bz..; ,? "$�'.tcx,�f'.um* Total Project Cost(Must match the Sources $45,000 BSTF + $22,500 match=$67,500 and Uses form) Type of Assistance Requesting(Grant or Cat I BSTF grant Loan) Amount of BSTF Funds Requested $45,000—6 employees,$7,500/employee. 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 Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26,2015 Montana Department of Commerce 1 Category I—Economic Development—Job Creation County definition. Current poverty map and Award Calculator Map can be found on the program's website at www.bstfmt.gov Total Matching Funds $22,500 (see Section I-definition of Match) Proposed Use of BSTF Funds: Employee Training;new equipment;Lease rate Eligible Activities Listed in Section Il C.of the reduction. Application Guidelines Total Number of New Jobs to be created 6 Total Number of New BSTF Eligible Jobs to be 6 created. Hourly wage range for BSTF Eligible Jobs to $24.80/hr.-$56.39/hr. be created. Include the lowest hourly wage rate and the highest wage rate.If benefits are to be included in the calculation to meet the BSTF required wage rate(page 6) -Appendix B—BSTF Benefit Certification is mandatory. r zTU,PARTNtR BR4ATJJW,JQt (C(1ntsl4�h)Bt ' b 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) Paul Reichert Organization Prospera Business Network Address(Street,City and 9-Digit Zip Code) 2015 Charolette St. #1, Bozeman,MT 59718 Phone Number 587-3113 Email Address Preichert@prosperabusinessnetwork.org What are the partner organizations Grant administration responsibilities relative to completing the proposed project? +' r.t { �j`/i , .. , �Y Pf3;ti,P+. iooi Y3Kttogvgnnm. aro,..... 1` m: 'S'r�^oq„ai a.k Please describe,in detail,the proposed project: DropTrip expects to grow employee base over the next 18 months from six full time employees to 12. All new employees will receive training,both internally and externally. During this growth phase a larger office space will be required,along with equipment,including: computers,phones,server space,etc. In the first six weeks of operation(January 2015),DropTrip has averaged 25 new users and three completed shipments per week,and has a monthly average growth rate of 35%for the year. DropTrip would like to leverage the Big Sky Economic Development Trust Fund to onboard new hires,acquire equipment,and ensure an affordable business space through a lease rate reduction. This will strengthen the rollout of this shipment service,and allow us to grow the business here in Montana. Please describe the Assisted Business: DropTrip is building a system that makes shipping more efficient. It is a crowd sourced shipping platform which connects shippers with existing travelers. Shipments may be business to business,business to consumer,or consumer to consumer. We are changing the way people,businesses,and communities around the world ship and receive the stuff they want.We like to call it"Shipping Reimagined"! Our website is httn://droptrip.com/ Please explain what the ESTFfinancial assistance would be used(ex:equipment purchase,lease rate reduction,etc.): Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26,2015 Montana Department of Commerce 2 Category I-Economic Development-Job Creation Funds will be utilized to train employees,purchase new equipment,and reduce the company's lease rate on newly acquired space-while we grow the business over the next 18 mo. Employees/Equipment: DropTrip currently has six full time,one hourly part time,3 equity part-time,and 2 out-sourced marketing contractors. Following our projected growth pattern,DropTrip will require six more full time employees within the next 18 months. The new hires would require equipment and training. Lease reduction: Currently,DropTrip occupies a business space that can comfortably handle up to eight full time employees. This space is rent free until year-end 2015. DropTrip will outgrow this space. Per VII.Project Sources&Uses of Funds,DropTrip would require$15-$18,000 to reduce rent on 1,500 square feet(minimum)of office space($10-15/sq foot). The final lease agreement for the new space is pending. Please identify the entities involved in completing the proposed project,including management of the project/staff plan. DropTrip in partnership with the Big Sky Economic Development Trust Fund. Project will be management by Doug Warner,CEO;flauwa Yusuf,VP Product;Nathan Williams,VP Marketing. Please provide an implementation plan/timeline for project activities from start-up through closeout: First half 2016:1 software developer&1 marketing new hire;$2000 each new hire for computers& software;$5000 for lease reduction Second half 2016:1 software developer&1 marketing new hire;$2000 each new hire for computers& software;$5000 lease reduction First half 2017:1 software developer&1 customer support new hire;$2000 each new hire for computers &software;$5000 lease reduction Please provide any relevant historical information on this project or the region it would support: DropTrip won StartupWeekend Bozeman in late 2013,released the first version of its product in February 2015 and brought on the first paid employees in June 2015. Employees are a mixture of full time salaried, part time salaried,and hourly contractors. As a mobile-enabled web based service that can be used by anyone,anywhere,DropTrip is a high-tech solution to an inefficient shipping industry and will branch and support the Gallatin Valley,State of Montana,Northwest,United States,and communities around the world. Business's Current Full-Time Employment 6 Level in Montana Business's Current Full-Time Employment 6 Level at the Project Site Employee Benefits:See Appendix B(if ERISA eligible benefits are included in the calculation to meet the wage requirement) x ,Y,., Vi RRAJE T ECO a DVI IMTFAf,T�TafgtI� r � x4 e4: ,S I s T....a' �,x�,t> . ...." _ ' :5 vrs t, s..� ..`^.�¢e.t_7 u R Yn ,c '`. _. gin,. ,,t4a. 4 .1 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. DropTrip is a growing"startup"in Bozeman,MT and plans to grow its business creating jobs and adding to the local tax base in Montana. As our business grows both statewide and nationally we expect to continue • to grow here in Montana. The success of DropTrip will support high-wage employees as well as keeping money for shipping items within the community and state by providing a venue for local shippers to pay • local citizens for deliveries. In addition,utilizing citizens who are already traveling to deliver items creates Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26,2015 Montana Department of Commerce 3 Category I-Economic Development-Job Creation 1 the first zero-carbon shipping solution. As a member of the new"Sharing Economy"DropTrip provides the opportunity to market emerging business ideas to a national press market. c !F;c-'9 - t I PRO)E T SOLIRGLS BS OF 11NDS a i , ,t s v I SOURCE: SOURCE: SOURCE: SOURCE: TOTAL REQUESTED BSTF Match n/a n/a DropTrip Administration (up to $2,250 $2,250 5%,max$30,000) ACTIVITY BUDGET Machinery/Equipment $12,750 $8,500 $21,250 Purchase Land Purchase 0 0 0 Lease rate Reduction $18,000 $8,000 $26,000 Employee Training $12,000 $6,000 $18,000 Other:n/a TOTAL PROJECT $45,000 $22,500 $ $ $67,500 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. 1 Ill a.g101j0.00N arIOGADdOY!'sOISENTI``t1)iiUSingSy +r W4- `a iia%x As the responsible authorized agents of Local:City of Bozeman,and Applicant Business:DropTrip, Inc.,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. X❑The Applicant designates Paul Reichert,Prospera Business Network, preichert@prosperabusinessnetowrk.ore as the authorized contact for any additional Department requests for the release of additional information regarding this application for BSTF funds. Local City of Bozeman:City of Bozeman will accept responsibility for management of the project and compliance with Big Sky Economic Development Trust Fund regulations. Applicant Business:DropTrip,Inc.will accept responsibility for compliance with applicable Big Sky Economic Development Trust Fund regulations as specified in this application. Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26,2015 Montana Department of Commerce 4 Category I–Economic Development–Job Creation Name(typed): BritFonetnot Local APPENDIX B: BSTF Benefit Certification Title(typed): Economic Development,City of Bozman Signature: X ' ' Date: Assisted Business Name(typed): Doug Warner Title(typed): CEO DropTrip,Inc. Authorized Representative Signature: X Date: Novembrr 4,2JJ 5 Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26,2015 Montana Department of Commerce 5 Category I-Economic Development-Job Creation Assisted Business: DropTrip For the purpose of the BSTF Program"employee benefits"means health,welfare,and pension contributions that meet the requirements of the Employee Retirement Income Security Act of 1974,29 U.S.C.1001,et seq. Estimated Value(per BENEFIT DESCRIBE BENEFIT hour) Example: Medical 3.75/hr./ Health Insurance stipend of$600/month mo I hereby certify that the above benefits will be made available to our employees and meet the requirements of the Employee Retirement Income Security Act of 1974,4,�29 U.S.C.1001,et seq. Signature of Authorized SignoL: t_ - mate_,'4, Ga S Printed Name and Title of Autho '.'Signor:_Doug Warner,CEO Below is an example on how to make the conversion Example: REMINDER:In order for a benefit to be included in the BSTF wage calculation the employer must certify that the benefit meets the requirements of the Employee Retirement Income Security Act of 1974,29 U.S.C.1001,et seq. Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26,2015 Montana Department of Commerce 6 Category I—Economic Development-Job Creation r .J 7a s a N+ S „n w: a o f u"uY''lw c +� r` rc z u a u a > �. . s`.wa: 4..., ..m.:°�,, W�';rt,,..:` ,.t>M,�a,.. .�i„,.`>�,n'S:9r, am,,; El�D17CC H112;1NlrPLh�Tssr. ADSHEET. SF;aiv. M7` ..:.5:"i,.,.Saie r,s,, yr x''�' t Vis, rg t Highlight the jobs thatyou have determined to be BSTF eligible. Number of Pull TIMProjected Dollar Projected, Empl pees for Job Title Job Description (BSTF,35+ Expected Hourly Wage Value of Total each job titlehours per Hire Date (without ERISA, Hourly week) benefits) benefits* Waae 1 Software Developer Full stack software developer 40 2016Q1 $36.85 $3.75 $40.60 1 Marketing Manager Manage marketing campaigns and staff 40 2016Q2 $36.85 $3.75 $40.60 1 VP of Development Manage all software staff& projects 40 2016Q3 $52.64 $3.75 $52.69 1 Marketing Specialist Social media and advertising campaigns 40 2016Q4 $21.06 $3.75 $24.81 1. Software Developer User Interface software developer 40 2017Q1 $36.85 $3.75 $40.60 1 Customer Support Manage all customer support requests 40 2017Q2 $21.06 $3.75 $24.81 *If benefits are to be included in the calculation to meet the BSTF required wage rate. Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26,2015 Montana Department of Commerce 7 Category I—Economic Development—Job Creation wVVl , i -pF Ix)[I A-pli [cA'i1'1`olQ tet; �YVt i t s t r ': . rbc ,a-:: �_�.. � �� vn.c_a3.}s5 Please include the following information with your application. Application Requirement: Page Number/Tab 1.Application(Anuendix Al Have you included? I. Applicant Information Il. Assisted Business Information III. Project Summary a. The nature of the proposed activity, b. The nature of the assisted business,and c. Description of activity/activities for which BSTF funds will be used. IV. Partner Information(if applicable) V. Project Information—"a"through'T' VI. Project Economic Impact Statement(both negative and positive) VII. Project Sources and Uses of Funds form with a narrative including the source,use and status of all funds to be utilized,professional services quotes,match commitment letters,business match commitment letter,etc. VIII. Signed Certification 2.BSTF Benefits Certification(Appendix B-if applicable) 3.Business Plan 4.Financial Statements / fl 5.Projections l 6.Hiring Plan Have you included? I. Appendix C II. Business Commitment Letter on hiring and match /77.Training Plan(if applicable) S.Supporting Documentation: (Attach all additional Supporting Documentation)This could include letters of support from organizations,businesses or communities as well as any other documents you feel is beneficial (Description) (Description) (Description) Local Government or Tribal Resolution A formal local or tribal governmental resolution supporting the project and authorizing the application to the Program is required at the time of application. Big Sky Economic Development Trust Fund Program Application Guidelines Effective January 26,2015 Montana Department of Commerce 8 Category I—Economic Development—Job Creation Boz- Mcai i V1 l VOIM r&ca,Mo�'. RESOLUTION NO. 4652 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO THE APPLICATION TO THE BIG SKY ECONOMIC DEVELOPMENT TRUST FUND PROGRAM ADMINISTERED BY THE STATE OF MONTANA,DEPARTMENT OF COMMERCE, ON BEHALF OF DROPTRIP,INC. i 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 mid- and high- wage job creation and expansion,thus positively impacting the economy of the entire region; and WHEREAS, DropTrip, Inc, 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 I growth potential and supports economic diversity; and WHEREAS,the Montana Department of Commerce administers the Big Sky Economic I Development Trust Fund Category I job creation program,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 Category I grant and provide administrative support and other 1 1 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 Prospero Business Network,to the Montana Department of Commerce,Big Sky Economic Development Trust Fund Program to assist DropTrip,Inc in their expansion project and that The Prospero Business Network will manage all aspects of the grant. PASSED AND APPROVED by the City Commission of the City of Bozeman,Montana, at a regular session thereof held on the 2nd day of November, 2015. JE 'A di. '� USS My ATTEST: (f �� ) L _ t v nip STA Y t'N, CMC City Clerk APPO E S TO FORM: t� G SULLIVAN City Attorney