Loading...
HomeMy WebLinkAbout6. ED Agreement Project VentiProposed 380 Agreement with Project Venti Robert Sturns Economic Development Department January 12, 2021 Company Overview •Project Venti is a lifestyle branded producer of superior, plant- based, alternative dairy products •The U.S. headquarters are based in New York •The company was founded in the 1990s •The company is rapidly expanding its presence and market share in the U.S. 2 Project Overview •A 280,000 SF building will used for the production of beverage products at 7550 Oak Grove Road •Proposed capital investment of $36.0 M in Total Construction Costs; $48.0 M in Total Business Personal Property •50 Full-Time jobs at minimum annual wages of $46,325 •15% of construction costs will be expended with contractors that are MBE companies 3 Location 5 Site 7550 Oak Grove Road Development Commitments •Capital Investment •Minimum of $36.0 M in total construction costs (retrofitting existing building) by December 31, 2024 •Minimum of $5.4 M in construction costs (hard and soft) must be spent or cause to be expended with MBE contractors •Minimum $48.0 M in new business personal property (BPP) on or before December 31, 2025 •Job Creation •Fill 50 Full-Time jobs at the property by December 31, 2025 •Maintain a minimum of 50 Full-Time Employees (FTE’s) at the property •All FTE’s must have an average annual salary of at least $46,325 6 Proposed Incentive Terms 7 Maximum Potential Grant with Corresponding Commitments Property Owner or Company Commitment Potential Abatement Base Commitment: Real and Business Personal Property Investment = $84M 20% Annual Commitments: Average Annual Salary for 50 Full-Time Jobs > $46,325 5% Overall Employment >= 50 (as applicable) 5% M/WBE Commitments 10% TOTAL* 40% 5-year Economic Development Agreement to provide grants up to 40% of the Real & Business Personal Property up to $1,093,970 Development Summary Private Investment •Minimum of $36.0 M in Total Construction Costs by December 31, 2024 •Minimum of $48.0 M in Total Business Personal Property by December 31, 2025 Employment •50 new FTEs by December 31, 2025 •Average Annual Wages: $46,325 5 year incentive proposal •40% of the incremental increase in value of real and business personal property. Private/Public Ratio Est. Benefit $1,093,970 NPV Benefit $ 920,771 City Participation 1.3% Est. Ratio 77:1 CFW Tax Revenue (5 yr. projection) Net New Real Property Tax $672,196 Net New BPP Tax $968,760 Payback 1.94 years Recommendation/Next Steps •Enter into a 5-year Economic Development Agreement to provide grants up to 40% of the incremental Real & Business Personal Property taxes •M&C for City Council consideration on January 26 Agenda Thank you