HomeMy WebLinkAbout5. EDA with SmartActionProposed 380 Agreement with
SmartAction
Robert Sturns
Economic Development Department
May 18, 2021
Company Overview
•SmartAction is a company that provides artificial intelligence-
based services to businesses across diverse industries
•The U.S. headquarters are based in El Segundo, CA
•The company was founded in 2002
•The company is rapidly expanding its presence and market
share in the U.S.
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Project Overview
•Relocation of corporate HQ from El Segundo, CA
•A 7,400 SF building will be leased with a temporary site located
at 9800 Hillwood Pkwy, Fort Worth, TX 76177
•Permanent office space will be leased on or before January 1,
2022
•66 Full-Time jobs added at annual wages of $65,800
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Location
Temporary Site: 9800 Hillwood
Pkwy, Fort Worth, TX 76177
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Economic Benefits of Proposal
•Company engaged in competitive site selection process
•High-value technology company is a target industry
•Proposal meets requirements of technology company in our
incentive policy
•Incentive will offset costs of relocating employees to Fort Worth
and establishing new offices
•Proposal will utilize Economic Development Fund and not
impact City taxes
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Why SmartAction?
•SmartAction currently securing deals with local FW companies. As a
result, the partnerships would help local businesses access AI
resources and increase their own productivity and efficiency
•Ability to attract more tech companies to cluster near an innovative
tech HQ
•Attract professionals who are multidisciplinary in coding, software
engineering, R&D, and data mining, and serves industries including
financial services, healthcare, retail, travel, and hospitality
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Development Commitments
•Permanent Site
o Must occupy a lease of 7,400 SF in the City of Fort Worth as
of January 1, 2022
•Job Creation
o Create 66 Full-Time jobs by December 31, 2022 and retain
the 66 Full-Time Jobs through December 31, 2025
o All FTE’s must have a minimum annual salary of $65,800
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Proposed Incentive Terms
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•3-year Economic Development Agreement to provide a grant of
$10,000 per FTE for up to 66 employees with wages $65,800 or
above with a cap not to exceed $660,000, with grant paid when the
lease for the Permanent Site is provided to the City of Fort Worth
•Clawbacks:
o If, at any time during the term of the Agreement, the Company only employs between 46
and 65 Full-Time Jobs, then Company will be required to pay the City $15,000 for each
Full-Time Job below the minimum required 66. For example, if the Company has 46 Full-
Time Jobs, then the Company must pay the City $300,000.00 ((66-46 = 20) x $15,000)
o If, at any time during the term of the Agreement, the Company employs less than 46 Full-
Time Jobs, then the Company will be required to pay the City the full $660,000.00
Development Summary
Incentive “Technology Company
Projects”
•SmartAction is eligible for 380
Grants under the “Technology
Company Projects Incentive,”
which allows up to $10,000 for
each new full-time job in first three
years of operation with minimum
annual salary of $65,800
Private Investment
•Minimum of 7,400 SF lease
Employment
•Create 66 new FTEs by December 31, 2022
•Retain 66 FTEs through December 31, 2025
•Minimum Annual Wages: $65,800
3-year Economic Development Agreement
•Provide grants of $10,000 per FTE each for
up to 66 full-time workers with wages
$65,800 or above.
•Potential for Clawbacks if Company does
not meet obligations set forth
Recommendation/Next Steps
•Enter into an Economic Development Agreement to provide
grants not to exceed $660,000 for up to 66 full -time workers
with wages at or above $65,800
•M&C for City Council consideration on June 8th Agenda
Thank you