Title
Adopting a resolution providing for approval of a Pflugerville Community Development Corporation (PCDC) Economic Development Performance Agreement with Essentium, Inc., in Pflugerville, Travis County, Texas.
Summary
Essentium will: invest $1.5MM in personal property, capital improvements and executed lease agreement and bring a total of 170 primary jobs ($75,000 plus benefits) and maintain all jobs established during the 7 year agreement.
PCDC will:
Year One: Pay Essentium a reimbusement grant not in excess of $100,000 for cost of relocation.
Year Two: Pay Essentium a job grant of $2500 per primary job created not to exceed $125,000.
Year Three: Pay Essentium a job grant of $2500 per primary job created not to exceed $100,000.
Year Four: Pay Essentium a job grant of $2500 per primary job created not to exceed $75,000.
Year Five: Pay Essentium a job grant of $2500 per primary job created not to exceed $75,000.
Year Six: Pay Essentium a job grant of $2500 per primary job created not to exceed $50,000.
Year Seven: PCDC shall pay no incentives to Essentium.
The PCDC Board requests approval of Economic Development Performance Agreement (EDPA) with Essentium, Inc.
Status
EDPA was approved by the PCDC Board on September 27, 2018 in a special meeting.
Deadline for Action
Consideration requested for October 9, 2018 regular Council meeting.
Fiscal Impact
Budget amendment for FY19 of $100,000 for relocation grant. Additional incentives paid based on job creation over five fiscal years, with these incentives not to exceed $425,000. All grants and incentives shall not exceed $525,000 in the aggregate. ($100,000 relocation grant and up to $425,000 in job creation incentives.)
Staff Recommendation
The PCDC Board and staff recommend approval.
Drafter
Amy Madison
Executive Director