Local Option Review Team

AGENDA LOCAL OPTION REVIEW TEAM Tuesday, February 19, 2019 4:00 p.m. Fremont Municipal Building 400 East Military Avenue Fremont, Nebraska 1. Call to Order 2. Approval of minutes from September 14, 2018 meeting. 3. Review Fund Balance. 4. Consider Local Option Economic Development funds for WLG Fremont, LLC - a limited liability company formed by RTG Medical, Inc, and DANA Partnership, LLP. 5. Adjourn. This agenda was posted at the Municipal Building on February 14, 2019 and was distributed to the members of the Local Option Review Team on February 15, 2019. The official current copy is available at City Hall, 400 East Military Avenue. A copy of the Open Meeting Law is posted for review by the public.  CITY OF FREMONT LOCAL OPTION REVIEW TEAM SEPTEMBER 14, 2018 – 12:00 p.m. A meeting of the Local Option Review Team was held on September 14, 2018 at 12:00 p.m. in the 2nd Floor Conference Room at 400 East Military Avenue, Fremont, Nebraska. The meeting was preceded by publicized notice in the Fremont Tribune and the agenda displayed in the Municipal Building. The meeting was open to the public. A continually current copy of the agenda was available for public inspection at the office of the City Administrator, 400 East Military Avenue. The agenda was distributed to the Local Option Review Team on September 7, 2018 and posted, along with the supporting documents on the City’s website. A copy of the open meeting law is posted continually for public inspection. ROLL CALL Roll call showed Members George, Landholm, Vobejda, and Horeis present. Jacobus, Benson, and Oliva absent. 4 present, 3 absent. Others in attendance included Lottie Mitchell, City of Fremont; Brian Newton, City Administrator, Ean Mikale and Aledia Mikale of Infinite 8 Institute. APPROVE MINUTES Moved by Member Landholm and seconded by Member Vobejda to approve the minutes of the July 31, 2018 meeting. Motion carried 4-0. CONSIDER SETTING REGULAR MEETING TIME Committee discussed setting regular meeting time for the first Thursday of each month at 12:00 p.m. No motion received. REVIEW FUND BALANCE Sanders and Mitchell reviewed fund balance. Member George requested number of jobs created by previous applicants be listed on Status of LB840 Funds report. Moved by Member Vobejda and seconded by Member Landholm to receive fund balance. CONSIDER LOCAL OPTION ECONOMIC DEVELOPMENT APPLICATION FOR INFINITE 8 INSTITUTE Ean Mikale gave overview of application and project. Discussion was had with committee members and applicant over project. Moved by Member Vobejda and seconded by Member Landholm to approve the application of Infinite 8 Institute. Motion carried 4-0. ADJOURNMENT Moved by Member Landholm and seconded by Member Horeis to adjourn at 1:07 p.m. Motion carried 4-0. 1  STAFF REPORT TO: Local Option Review Team FROM: Lottie Mitchell, Grant Coordinator DATE: February 19, 2019 SUBJECT: WLG Fremont, LLC Local Option Economic Development Fund Application Recommendation: Move to recommend to City Council to approve application from WLG Fremont, LLC for a Local Option Economic Development Fund loan. Background: The City of Fremont has a Local Option Economic Development Plan (LB840) and loan fund for the purposes of creating new jobs, expanding the labor market, retaining existing jobs, attracting new capital investment, broadening the tax base, and providing economic diversification to ensure economic stability and vitality for the City of Fremont and surrounding areas. Applications are submitted to the plan administrator (City of Fremont) for review. Once the plan administrator has reviewed and determined the application is eligible for LB840 funds, the application is then reviewed by the Local Option Review Team (LORT) and the Citizens Advisory Review Committee (CARC). The LORT reviews the application from the standpoint of project feasibility and the potential future economic benefit to the community of Fremont. The CARC reviews the application from the standpoint of compliance with the Plan. Both committees make recommendations to the City Council. The City Council will then consider the overall benefits to the community and will have final authority on approval of the application. WLG Fremont, LLC has submitted an application to the LB840 fund. WLG Fremont, LLC is a limited liability company formed by DANA Partnership, LLP and RTG Medical, Inc. - DANA Partnership, LLP is a private equity investment firm with a focus on real estate development. - RTG Medical, Inc. is a medical staffing agency focused on contracting travel and permanent healthcare professionals. RTG Medical, Inc. was established in 2001 in Fremont, Nebraska. They recruit and place professionals in nursing, radiology, therapy, pharmacy, and laboratory in all fifty states. RTG Medical, Inc. is one of the fastest growing, private companies in America and has approximately 80 employees. They hope to expand their business in Fremont and are working to develop a building that would allow them to grow for years to come. WLG Fremont, LLC is in the process of designing, and hopes to soon construct, a 52,000 square foot building to be occupied by RTG Medical as the sole occupant. A twenty-year lease proposal has been executed. The building will be located in the Gallery 23 East development. RTG Medical’s employees receive an average annual salary of more than $85,000. Benefits include dental, vision, employer paid life insurance and long-term disability, voluntary life insurance, medical FSA, dependent care FSA, 401k, paid time off, and more. WLG Fremont, LLC is proposing a $16 million project and is requesting a $600,000 Local Option Economic Development Fund (LB840) Loan. The terms of the loan are: • $600,000 at zero (0%) percent interest rate, and forgiven over a sixty (60) month period, subject to RTG Medical, Inc. increasing its workforce by 50 full-time equivalent employees. The LB840 loan is subject to a loan agreement with the City per the requirements listed above and is contingent upon: - an executed lease agreement of at least five years, - a loan guarantee by RTG Medical, Inc., and - RTG Medical ownership in WLG Fremont, LLC Fiscal Impact: Local Option Economic Development Fund - $600,000. February 8, 2019 VIA EMAIL ONLY City of Fremont ATTN: Grant Coordinator 400 East Military Fremont, NE. 68025 Re: New RTG Medical, Inc. Headquarters Application for Local Option Development Plan Loan Fund & Economic Enhancement Funds To Whom It May Concern: It is with great pleasure that we present our application for incentive funds from the city of Fremont. It is rare that a project fits so well with the incentive intent of a specific program, and we believe the RTG Medical, Inc. project represents an ideal. A Fremont grown, entrepreneurial venture started in 2001, by a disabled veteran has now become one of America’s fastest, private companies, and has committed its roots to Fremont, Nebraska. White Lotus Group has been retained to develop a project that will become the finest office environment with current employment at eighty (80), and space to grow exponentially. We hope that this well-intentioned project and increased workforce from RTG Medical, Inc. is met with a positive reception from the committees and administration. Please find the attached request for funds from each of the various programs. Please contact me to discuss any additional informational requirements, and look forward to a productive process, aagarwal@whitelotusgroup.com or via telephone, 402-346-5550. Sincerely, Arun Agarwal Chief Executive Officer Cc: RTG Medical, Inc. 1 0 5 N O RT H 3 1 s t AV E N U E S U I T E 1 0 0 • O M A H A , N E 6 8 1 3 1 • T : 4 0 2 . 4 0 8 . 0 0 0 5 REQUEST On behalf of WLG Fremont, LLC (“APPLICANT”, a partnership of RTG Medical, Inc and DANA Partnership, LLP), we are requesting Local Option Development Plan Loan Fund & Economic Enhancement Funds as follows: 1. LB840: $600,000 These funds would be issued at a zero (0%) percent interest rate, and forgiven over a sixty (60) month period after which the RTG Medical, Inc showcases that it has increased its workforce from eighty (80) to one hundred thirty (130) full-time employees. 2. Enhancement Funds: $100,000 The APPLICANT is requesting $100,000 for utility installation for the Project. It is understood that the APPLICANT showcase matching funds being spent. 1 0 5 N O RT H 3 1 s t AV E N U E S U I T E 1 0 0 • O M A H A , N E 6 8 1 3 1 • T : 4 0 2 . 4 0 8 . 0 0 0 5