Loading...
2. Recruitment of Cable TechologiesCity of Kalispell Post Office Box 1997 - Kalispell. Montana 59903-1997 - Telephone (405) 758-7000 Fax - (406) 758-7758 REPORT TO: Honorable Mayor and City Council FROM: James H. Patrick, City Manager SUBJECT: Recruitment of Cable Technologies MEETING DATE: February 22, 2005 BACKGROUND: The City recently met with the CEO and President of Cable Technologies, a small business currently located in Creston. The company assembles and manufacturers wiring harnesses for the aerospace industry. The company currently has 43 employees making between $8.00 to $20.00 per hour plus full benefits, including fully funded medical. The company must grow, due to increased business, and they are looking for about 20,000 square feet of space and increase their workforce to approximately 100. They are looking at locations in Great Falls, Missoula, and Kalispell. Their preference would be to remain here since most of their work force comes from Kalispell. They need to be in a new facility this summer or early fall. We discussed several potential locations in the City. The area that is most interesting is the industrial land at the Kalispell Air Park. Their customers include, but are not limited to, Boeing, General Dynamics, Lockheed Martin, and Honeywell. Many of these companies could and would fly into the airpark. The access into and out of the airpark is good and will improve with the construction of the bypass. To assist the company with its relocation, we discussed the possibility of constructing a 20,000 square foot building on airpark land utilizing TIF funds, and then leasing the building to the company for five years with a purchase agreement at the five year point. The City would also enter into a developer's agreement to ensure that there was a payment in lieu of taxes to assist in the payoff of the TIF bond. Speaking with Bond Counsel, Mae Nan feels that this is an acceptable use of TIF bonds. At the end of the five year period, the City would sell the building to the cornpany/holding company and maintain a lease on the airpark land. RECOMMENDATION: Council direction to proceed with the negotiations and necessary procedures to bond for the project, enter into a developer's agreement, submit a CDBG ED grant for $400,000 in training funds, and solicit requests for proposals to construct a manufacturing building. FISCAL EFFECTS: Bonding and expenditure of two million dollars of Airport TIF funds to construct a manufacturing facility resulting in a positive cash flow to pay the TIF bonds. This will create approximately 57 new jobs and bring 43 jobs into the City with salaries ranging from approximately $8.00 to $20.00 per hour with full benefits. With this anchor tenant we are now recruiting other companies that may wish to co -locate with this company. This project will increase out of town visitors spending time in Kalispell while working with the company. Lastly, this will produce ongoing revenue for the airpark through the land lease. ALTERNATIVES: As suggested by the City Council. Respectfully submitted. �Jamesatrick City Manager Report complied: February 16, ZOOS cc.: Theresa White, Kalispell City Clerk