SHERIDAN — The Sheridan Economic and Educational Development Authority finalized its revenue recapture plan Wednesday as part of its grant application to the Wyoming Business Council to help bring a new manufacturer to the area.
As part of the grant, SEEDA would put forward a cash match of $322,874 from its reserve funds and 9 acres of land in the Sheridan Hi-Tech Park valued at $1,960,200.
In return, SEEDA is asking for a Business Committed grant in the amount of up to $12,592,090.
The funding will cover the cost of constructing a new 100,000-square-foot facility for the company, being referred to only as Project Enterprise in the grant materials. The company has asked that its name and specific industry remain anonymous in order to not disrupt its current operations. If the grant is approved, the project timeline indicates the company’s relocation will be officially announced in January.
The plan finalized Wednesday ensures that 100 percent of the state’s investment in the project will be recaptured, which SEEDA board member and Northern Wyoming Community College President Dr. Paul Young emphasized is important for the community to understand.
“This is not just a giveaway,” Young said.
According to the plan, SEEDA will enter into a 20-year lease with Project Enterprise under which Project Enterprise will lease the manufacturing facility with an option to purchase the facility and its associated 9-acre site after five years. Revenue generated from the lease and purchase of the facility will be recaptured by SEEDA.
SEEDA will retain 50 percent of the funds generated by the project from lease payments and/or sales proceeds to further economic development initiatives. SEEDA will deduct any SEEDA incurred costs to administer the lease and project reporting, and to maintain the asset from the remaining 50 percent of the recaptured funds and remit the remaining funds to the Wyoming Business Council.
While in the first four years, Project Enterprise will not pay any lease, it will pay all real estate taxes, building insurance and maintenance throughout the term of the lease. In years five through 20, the lease will gradually increase from $0.50 per square foot to $3 per square foot.
After year five and before the end of year 20, Project Enterprise will have the option to purchase the facility, land and infrastructure from SEEDA at a price no greater than the Business Ready Communities grant amount less its accumulated lease payments at the time the option is exercised.
If Project Enterprise purchases the building but ceases manufacturing operations before year 20, SEEDA will recover its investment of cash and land into the project on a declining schedule from year five to year 20 in recognition of the loss of other public benefit from the project during those years. SEEDA will place a lien against the property that will be exercised when the company sells the property to another buyer.
In addition, if the company folds, the WBC will only seek to recapture its investment when the building is leased to a new company or organization.
Project Enterprise is expected to bring 70-90 jobs to the community over the next several years.
Young pointed out that the community has been putting the infrastructure in place for years to build a skilled workforce suitable for manufacturers, creating a trained workforce that can lure companies to the area.
“This is proof that it works,” Young said.
Advocates of the project have said the ripple effects of those 70-90 new jobs will be felt across the community, giving Sheridan’s economy a boost and creating growth in the housing market, other job sectors and tax revenue.
The grant application states that the new company would plan to move all office-related functions to Sheridan by June 2018 and have the manufacturing operations underway in the new facility between December 2018 and February 2019.
The grant will go before the WBC this month and then the State Loan and Investment Board in January.
Original Source for Article: http://thesheridanpress.com/81281/seeda-finalizes-revenue-recapture-plan-for-project-enterprise/
The Sheridan Press | By Staff Reports|November 9th, 2017