ANKENY CITY COUNCIL

Regular Agenda

March 5, 2018
5 : 30 PM

Gary Lorenz, Mayor
Mark Holm, Mayor Pro tem

Council Members: Bobbi Bentz, Jim McKenna, Kelly Whiting, Kerry Walter-Ashby
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ORIGINATING DEPARTMENT: COUNCIL GOAL:
Economic Development High Performing City Organization: Financially Sound, Providing Service Value
ACTION REQUESTED:
Public Hearing
LEGAL:
Item Reviewed by Legal Counsel
SUBJECT:
PH 2018-20: Proposed Development Agreement between the City of Ankeny and Accelerated Ag Technologies, LLC.
EXECUTIVE SUMMARY:

Accelerated Ag Technologies, LLC (AAT) is a leading agricultural bio-technology company headquartered in Ankeny.  Their mission is to increase the reliability of the world’s seed and grain supply by enhancing hybrid production systems through a combination of reproductive science paired with process engineered solutions.  Since its formation in 2015, AAT has developed a broad intellectual property portfolio and technology that will improve and enable the production of hybrid crops. 

AAT is proposing to expand into existing flex space located at 2302 SE Creekview Drive, Suite 6, in the Metro North Business Park, where they plan to lease an additional 12,300 square feet.  Staff is proposing to provide a $24,000, 50% forgivable, 50% repayable, loan to assist with the build out of lab space, work stations/offices,and equipment.  Under the terms of the loan, AAT has committed to creating 8 new positions, with wages ranging from 90% to 200+% Ankeny's median laborshed wage rate.  AAT plans to relocate 8 jobs from Urbandale, which are not incented as part of this agreement.  The loan will be secured with a UCC1 and funds will not be released until after proof of occupancy. 

 

FISCAL IMPACT: Yes
The City will be providing AAT a secured loan in the amount of $26,000 after the company has invested in equipment and in tenant improvements to their new space. If AAT meets the performance targets outlined in the Development Agreement, $13,000 of the loan will be forgiven in year five.  The remaining $13,000 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 salaries of the newly created positions adds significant payroll within the City, creating a higher economic multiplier than median wage positions.
CITY MANAGER'S RECOMMENDATIONS:
To approve as presented.
PREVIOUS COUNCIL/COMMISSION/BOARD ACTION(S):

No previous action has been taken on this item; however, the City Council approved a similar incentive in February, 2017 when AAT moved to Ankeny and committed to creating new jobs at that time.  These jobs and investment would be in addition to their 2017 commitments. 

PUBLIC OUTREACH EFFORTS:
ACTION REQUESTED:

Action: Consider motion to close Public Hearing 2018-20.

ADDITIONAL INFORMATION:
ATTACHMENTS:
Click to download
PH Coversheet
Resolution
Development Agreement - ATT
Promissory Note - ATT - Exhibit B