Local Business Incentive Presentation 5-26-11


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  • Started in 2002, opened doors in 2003. COSADC primary funding Accept cash & in kind donations Rent & service fees
  • Goal-graduate viable companies Incubators started in 1959 50 incubator graduate jobs=25 addn’l community jobs > 500k jobs created by incubators since 1980.
  • 84% of graduated companies stay in the community $1 in public investment=$30 local tax revenue. Results of Clients- Created 143.5 jobs Ro1 $10.51 sales per $1 $4.34 payroll per $1 Rent on sliding scale Fixed service fee
  • 20 offices Current Clients: TLC, Fletch Data, ACT, and Agilight-now an international company
  • Business Plan Competition
  • Local Business Incentive Presentation 5-26-11

    1. 1. <ul><li>City-wide economic development incentives from COSADC </li></ul><ul><li>Location based revitalization incentives from TIRZ & HUD funds </li></ul><ul><li>Business Incubator and other resources </li></ul>Shawn Lewis Bob Schneeman Donna Osborne
    2. 2. <ul><li>Mission Statement: </li></ul><ul><li>The City of San Angelo Development Corporation </li></ul><ul><li>will seek to retain, strengthen and diversify the tax and job base of the community through quality infrastructure and facility improvements, innovative incentive packages and a focus on best business practices in order to provide a sustainable economy for San Angelo and its </li></ul><ul><li>regional partners. </li></ul>City of San Angelo Development Corporation
    3. 3. <ul><li>General Guidelines </li></ul><ul><ul><li>Must be spent on land, buildings, equipment, facilities, targeted infrastructure, and physical improvements, OR </li></ul></ul><ul><ul><li>Must create or retain “primary jobs” defined as generating 85% of company revenue outside the Concho Valley </li></ul></ul><ul><li>_______________________________________________________________________________ </li></ul><ul><li>Business must have qualifying NAICS code: Manufacturing, Wholesale Trade, Transportation and Warehousing, Scientific Research and Development Services, Company Headquarters, Telephone Call Centers, Ag-related Businesses, etc. </li></ul><ul><ul><li>Must be inside the city limits, or within the city’s ETJ </li></ul></ul><ul><li>Requestor must provide sufficient financial information to determine a Return-on-Investment (ROI) </li></ul>
    4. 4. <ul><li>Examples </li></ul><ul><ul><ul><li>Job creation and/or retention </li></ul></ul></ul><ul><ul><ul><li>Training programs </li></ul></ul></ul><ul><ul><ul><li>Major equipment purchases </li></ul></ul></ul><ul><ul><ul><li>Site improvements </li></ul></ul></ul><ul><ul><ul><li>New building construction </li></ul></ul></ul><ul><ul><ul><li>Lease subsidies </li></ul></ul></ul><ul><ul><ul><li>Building remodeling costs </li></ul></ul></ul><ul><ul><ul><li>Purchase/lease-back </li></ul></ul></ul>
    5. 5. <ul><li>Job Creation Grant Guidelines </li></ul><ul><ul><li>Range from $2,000 - $5,000 per job </li></ul></ul><ul><ul><li>Base on salary and benefits, typically 110% of Tom Green County wage or about $35,000 </li></ul></ul><ul><ul><li>Up to $10,000 maximum/job, for company headquarters </li></ul></ul><ul><ul><li>Minimum of five new jobs </li></ul></ul><ul><ul><li>Must document minimum capital investment of $125,000 </li></ul></ul>
    6. 6. <ul><li>Loan Participation </li></ul><ul><li>May purchase a portion of loan with local institution </li></ul><ul><ul><li>Collateral may be shared on pro-rata basis </li></ul></ul><ul><ul><li>Local lender may be given superior lien </li></ul></ul><ul><li>May lower interest on COSADC-portion of loan if lender agrees to lower overall rate </li></ul><ul><li>Land/Infrastructure Grant </li></ul><ul><li>May grant free/reduced lease/sale of land in City Industrial Park </li></ul><ul><li>May provide grant for new or improved infrastructure to property, including streets and roads, rail spurs, drainage/stormwater improvements, and telecommunications, electric, gas, water and wastewater utility lines </li></ul>
    7. 7. Bob Schneeman Development Coordinator
    8. 8. <ul><li>TIRZ-Funded Incentives </li></ul><ul><ul><li>Façade grants – 50/50 $7,500 </li></ul></ul><ul><ul><li>Asbestos Abatement - $10,000 </li></ul></ul><ul><ul><li>Fee Reduction – 80% </li></ul></ul><ul><ul><li>Water Tap – 75 / 25 - $5,000 </li></ul></ul><ul><ul><li>Secondary Egress – 50 / 50 $5,000 </li></ul></ul><ul><ul><li>Landscape – 50 / 50 - $2,000 </li></ul></ul><ul><ul><li>Paving – 50 / 50- $7,500 </li></ul></ul>
    9. 9. <ul><li>Granted when proposed improvement would increase property value by 50 percent or more. </li></ul><ul><li>Full abatements available for mixed uses with no more than 50% of space reserved for offices, as well as all retail, residential, entertainment uses </li></ul>Project Cost Year 1 Year 2 Year 3 Year 4 Yr 5-10 >$25k 100% 100% 80% 80% 50%
    10. 10. <ul><li>Downtown Incentives (TIRZ) </li></ul><ul><li>Façade improvement grants </li></ul><ul><li>Designed to help property owners and tenants improve the aesthetics of downtown properties. </li></ul><ul><li>50/50 matching grant on per-square-foot up to $7,500 </li></ul>
    11. 11. <ul><li>Water tap refunds </li></ul><ul><li>City pays up to 75% of costs for new water tap for sprinkler system </li></ul><ul><li>Maximum refund of $5,000 </li></ul><ul><li>Sprinkler Systems & Monitored Smoke Alarm Systems </li></ul><ul><li>City pays up to 50% of for installing systems if required by code </li></ul><ul><li>Up to $5,000 </li></ul><ul><li>Secondary exit grants </li></ul><ul><li>City pays up to 50% for installing additional exits required by Code </li></ul><ul><li>$5,000 per floor maximum, up to $20,000 total </li></ul><ul><li>Asbestos abatement incentives </li></ul><ul><li>City pays 50% of total cost, up to $15,000 </li></ul>
    12. 12. <ul><li>Downtown Incentives (TIRZ) </li></ul><ul><li>Incentives Map </li></ul>
    13. 13. Donna Osborne Executive Director
    14. 14. <ul><li>An economic development tool helping entrepreneurial companies succeed by providing targeted business support and resources </li></ul><ul><li>A “plug & play” environment for new and expanding companies </li></ul><ul><li>A business-friendly environment growing self-sufficient companies capable of thriving in the community </li></ul>www.cvced.org 325-657-9214
    15. 15. <ul><li>Business Incubation Services </li></ul><ul><ul><li>Low cost, flexible lease space </li></ul></ul><ul><ul><li>Office furnishings </li></ul></ul><ul><ul><li>Hands-on management counseling </li></ul></ul><ul><ul><li>Shared office services </li></ul></ul><ul><ul><li>Shared office equipment </li></ul></ul><ul><ul><li>Technical assistance </li></ul></ul>www.cvced.org 325-657-9214
    16. 16. <ul><li>2009 West Beauregard </li></ul><ul><ul><li>Over 2,800 sq. ft. of leasable office space </li></ul></ul><ul><ul><li>460 sq. ft. conference/training room </li></ul></ul><ul><ul><li>Ample parking </li></ul></ul><ul><ul><li>Break room (microwave, coffeemaker, etc.) </li></ul></ul><ul><ul><li>24-hour building access </li></ul></ul><ul><ul><li>Security system </li></ul></ul><ul><ul><li>Internet and telephone system with voice mail </li></ul></ul><ul><ul><li>Central receptionist </li></ul></ul><ul><ul><li>Shared printer, copier, and fax machine </li></ul></ul>www.cvced.org 325-657-9214
    17. 17. <ul><li>www. CVBiz.org </li></ul><ul><ul><li>Web portal for business assistance </li></ul></ul><ul><ul><li>First stop for business resources </li></ul></ul>www.cvced.org 325-657-9214
    18. 18. <ul><li>Concho Valley Angel Network </li></ul><ul><ul><li>High wealth individuals seeking to invest in high-growth companies </li></ul></ul><ul><ul><li>Focus on Concho Valley Region </li></ul></ul><ul><ul><li>www.cvAngel.org </li></ul></ul>www.cvced.org 325-657-9214
    19. 19. Donna Osborne Executive Director www.cvced.org 325-657-9214 For More Information