Fiscal Note
This resolution would authorize a $595,000 Jobs TIF loan to Extreme Engineering Solutions, Inc or its assigns ("Employer") for the retention of 170 FTE jobs at a newly constructed 115,000 square foot facility at 9901 Silicon Prairie Parkway in a proposed TID #47 to be created in 2017. Funding of the Jobs TIF Loan is contingent upon the creation and certification of TID #47.
This loan would be repaid through incremental taxes generated by the Project and represents approximately 40% of the present value of all incremental taxes anticipated from the Project over the 20 years of life in a newly-created TID #47.
Funding of the $595,000 Jobs TIF Loan to the Project requires an amendment to the 2017 Capital Budget authorizing the expenditure. While it is anticipated that the incremental taxes generated by the Project will be sufficient to repay the loan within approximately 8 years, the Employer is required to guaranty a minimum payment if sufficient future tax increment is not available. Employer shall also guaranty that 170 FTE living wage jobs be retained each year at the Project for five years commencing on the date of occupancy. In any year during that period, if Employer’s job retention is below 170 FTE jobs, Employer shall pay a penalty of $25,700 per job with an annual cap of $119,000 for job retention deficiency.
The increment guarantee is secured by a subordinated mortgage on the property. The Jobs TIF Loan also requires that Employer be prohibited from selling or transferring the Property prior to repayment of the TIF Loan. If Employer sells or transfers the Property to a tax-exempt entity, Buyer shall pay an annual payment in lieu of taxes (PILOT) in the amount of the property tax paid as of the date of sale, frozen, until 2037.
Title
Amending the 2017 Capital Budget and Authorizing the Mayor and City Clerk to execute a development agreement to fund a $595,000 Jobs TIF Tax Incremental Finance Loan to Extreme Engineering Solutions, Inc....
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