Local Option Review Team

LOCAL OPTION REVIEW TEAM Thursday, October 29, 2020 - 12:00 p.m. 400 East Military, Fremont, Nebraska (attendance is limited) and Zoom Topic: Local Option Review Team Meeting Time: Oct 29, 2020 12:00 PM Central Time (US and Canada) Join Zoom Meeting https://zoom.us/j/98305889187?pwd=TmROY2x1bWIxeXczVUV0d004YVJ4UT09 Meeting ID: 983 0588 9187 Passcode: 046058 One tap mobile +12532158782,,98305889187# US (Tacoma) +13462487799,,98305889187# US (Houston) Dial by your location +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) +1 669 900 9128 US (San Jose) +1 301 715 8592 US (Germantown) +1 312 626 6799 US (Chicago) +1 646 558 8656 US (New York) Meeting ID: 983 0588 9187 Find your local number: https://zoom.us/u/agsIWrbv3 Telephone Audio Information Call: +1 301 715 8592 US Enter Meeting ID: Meeting ID: 983 0588 9187, Passcode: 046058 You will be connected to the meeting. If making a comment during a public hearing or comment period please press *9 to electronically raise your hand allowing the Chairman to call on you. Once called upon to speak please press * 6 to unmute your phone; press * 6 again to mute when finished speaking  LOCAL OPTION REVIEW TEAM Thursday, October 29, 2020 - 12:00 p.m. 400 East Military, Fremont, Nebraska (attendance is limited) and Zoom 1. Call to Order 2. Approval of minutes from May 13, 2020 meeting. 3. Review Fund Balance. 4. Consider Application from Tech Partners, LLC for a Local Option Economic Development Fund loan. 5. Adjourn. This agenda was posted at the Municipal Building and was distributed to the members of the Local Option Review Team on October 22, 2020. 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 MAY 13, 2020 – 12:00 p.m. A meeting of the Local Option Review Team was held on May 13, 2020 at 12:00 p.m. in the 2nd Floor Conference Room at 400 East Military Avenue, Fremont, Nebraska and via Zoom video/teleconference. 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 May 7, 2020 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 McClain, George, Jacobus, Horeis, and Oliva present. Benson and Vobejda absent. 5 present, 2 absent. Others in attendance included Lottie Mitchell, City of Fremont; Brian Newton, City Administrator; Jody Sanders, Dir. Of Finance; Garry Clark, Greater Fremont Development Council; and Ashley Grohs, Summit Medical Staffing, LLC. APPROVAL OF MINUTES FROM APRIL 16, 2020 MEETING. Moved by Member Oliva and seconded by Member Jacobus to approve the minutes of the April 16, 2020 meeting. Ayes: George, Oliva, Jacobus, Horeis, and McClain. Motion carried 5-0. REVIEW FUND BALANCE. Mitchell gave overview. Moved by Member Jacobus and seconded by Member McClain to receive fund balance. Ayes: George, Oliva, Jacobus, Horeis, and McClain. Motion carried 5-0. CONSIDER EDITS MADE TO MATRIXES USED TO ASSIST IN DETERMING LOCAL OPTION ECONOMIC DEVELOPMENT FUND AWARD AMAOUNT AND LOAN ELEMENTS. Mitchell gave overview. Moved by Member Horeis and seconded by Member Oliva to approve edits made to matrixes used. Ayes: George, Oliva, Jacobus, Horeis, and McClain. Motion carried 5-0. CONSIDER APPLICATION FROM SUMMIT MEDICAL STAFFING, LLC FOR A LOCAL OPTION ECONOMIC DEVELOPMENT FUND LOAN. Mitchell gave overview. Ashley Grohs gave overview and answered questions. Moved by Member Jacobus and seconded by Member McClain to approve one payment only of $100,000 at start-up with $50,000 repayable at 3% interest over 60-months and $50,000 forgivable over 60-months. Ayes: Jacobus and McClain. Nays: Horeis and Oliva. Abstain: George. Motion failed 2-2-1. Moved by Member Oliva and seconded by Member Horeis to approve award as recommended. Ayes: Horeis and Oliva. Nays: McClain and Jacobus. Abstain: George. Motion failed 2-2-1. Moved by Member George and seconded by Member Oliva to approve one payment of $100,000 at start-up with $50,000 repayable at 3% interest over 60-months and $50,000 forgivable over 60-months if job creation met and a second payment of $100,000 at the end of year one if job creation requirements met during year one with $50,000 repayable at 3% interest over 60-months and $50,000 forgivable over 60-months if job creation met. Ayes: George, McClain, Jacobus, Oliva. Nays: Horeis. Motion carried 4-1. ADJOURNMENT Moved by Member McClain and seconded by Member Jacobus to adjourn at 1:03 p.m. Not enough members present to call roll. 1  STAFF REPORT TO: Local Option Review Team FROM: Lottie Mitchell, Grant Coordinator DATE: October 29, 2020 SUBJECT: Tech Partners, LLC Local Option Economic Development Fund Application Recommendation: Consider application from Tech Partners, LLC for a Local Option Economic Development Fund loan. Background: The City of Fremont has a Local Option Economic Development (LB840) Plan (the Plan) 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 reviewed by the Citizens Advisory Review Committee (CARC) and the Local Option Review Team (LORT). The CARC reviews the application from the standpoint of compliance with the Plan. The LORT reviews the application from the standpoint of project feasibility and the potential future economic benefit to the community of Fremont. 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. Tech Partners, LLC is a feed, seed, and lawn fertilizer warehousing company. They have been growing at a rate of 2-4% per year over the last 10 years and have outgrown their existing space. They are planning to construct an additional warehouse facility on their property at 3380 North Carlstrom Drive, Fremont, NE. The warehouse will be 60 x 125 feet and will require the addition of two new employees. One position will start at $25 per hour and the other will start at $18 per hour. The new warehouse will bring in new feed and seed suppliers to the area. The estimated cost for this project is $306,500. Tech Partners, LLC is providing $32,250 to the project and is requesting $32,250 from the Local Option Economic Development (LB840) fund. Tech Partners, LLC is an eligible business under Fremont’s Local Option Economic Development Plan as their principal source of income is derived from the processing, storage, transport or sale of goods or commodities which are sold or traded in interstate commerce. Staff recommends an award of $32,250 with 75% of the award forgiven based on performance measures and 25% of the award repaid at 3% interest over a five (5) year period. Performance based forgiveness measures to be based on job creation and retention of jobs for period of five (5) years, completion of construction, and retention of company in Fremont for five (5) years from date of loan execution. Fiscal Impact: Local Option Economic Development Fund - $32,250.