ANKENY CITY COUNCIL
Regular Agenda
October 2, 2017
5 : 30 PM
Gary Lorenz, Mayor
Mark Holm, Mayor Pro tem
Council Members: Bobbi Bentz, Jim McKenna, Wade Steenhoek, Kerry Walter-Ashby
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ORIGINATING DEPARTMENT:
COUNCIL GOAL:
Economic Development
Ankeny as a Successful Business Center
ACTION REQUESTED:
Motion
LEGAL:
Item Reviewed by Legal Counsel
SUBJECT:
PH 2017-53: Proposed Development Agreement between the City of Ankeny and Nelson Computer Systems, Inc., dba Integrity Technology Systems, Inc. and Pratum
EXECUTIVE SUMMARY:
Nelson Computer Systems, Inc., currently located at 1370 NW 18th St., Suite 104, is considering constructing a new 7,100 square foot office along SW Prairie Trail Parkway in Ankeny to support their growth in local and national markets. Nelson Computer Systems is an information security consulting firm currently headquartered in Ankeny, with branch offices in Dallas and Kansas City. The company has experienced significant growth over the past three years and has outgrown its current office located in NW Ankeny. Staff is proposing to provide a $34,500, 50% forgivable, 50% repayable, loan to assist with their proposed expansion. Under the terms of the loan, Nelson has committed to creating 11 new positions, with wages ranging from $25/hour to $47+/hour. The loan will be secured with a UCC-1 and funds will not be released until after proof of occupancy.
FISCAL IMPACT:
Yes
The City will be providing Nelson Computer Systems, Inc., a secured loan in the amount of $34,500 after the company has invested in their new office building. If Nelson meets the performance targets outlined in the Development Agreement, $17,250 of the loan will be forgiven in year five. The remaining $17,250 will be repaid with 0% interest over the five year term of the agreement. The funding for this award will come from a combination of TIF funding and the City's economic development fund. The positions being created are high quality jobs, creating a higher economic multiplier than median wage positions.
CITY MANAGER'S RECOMMENDATIONS:
To approve as presented.
PREVIOUS COUNCIL/COMMISSION/BOARD ACTION(S):
A public hearing date on the Development Agreement was set by the City Council on September 5, 2017.
PUBLIC OUTREACH EFFORTS:
A public hearing to be held on October 2, 2017.
ACTION REQUESTED:
Action:
Consider motion to close Public Hearing 2017-53.
ADDITIONAL INFORMATION:
ATTACHMENTS:
Click to download
PH Coversheet
Resolution
Nelson Dev Agreement
Nelson Prom Note