Agenda - 05-18-2010 - 8b - Laserfiche WebLink

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Up to this point the discussion has revolved around the process employed by Austin and the incentives offered. What has not been discussed is what the City has required of these companies in return. The discussion below describes such requirements using the example of the most recent Economic Development Agreement reached between the City and HelioVolt. HelioVolt is a manufacturer of glass laminate modules for use in commercial, residential, solar farm, and custom applications. It uses proprietary thin -film solar technology and intends to provide a more cost - competitive product than competitors. The proprietary technology was invented by the company's founder and first CEO. In November of 2007, HelioVolt and the City of Austin entered into an Economic Development Agreement. The Agreement includes the following provisions: • HelioVolt will create at least 168 full -time jobs and invest at least $80 million within 5 years in real property, equipment and machinery. • If the number of jobs falls below 168 (voluntarily or involuntarily), HelioVolt has 3 months to reestablish that number of jobs or the agreement is terminated. • HelioVolt will utilize local non - profits in hiring and recruitment efforts, including: • National Society of Black Engineers • Society of Hispanic Professional Engineers • Career Expo for People with Disabilities • Out and Equal Summit (LGBT) • HelioVolt agrees not to employ undocumented workers and must repay all grants with 5% interest if found in violation. • HelioVolt will use "reasonable best efforts" to include HUBS (Historically Under- represented business) in its supply chain. • The City will reimburse 60% of property taxes paid on all acquired personal property, real improvements, and on the increase in taxable value beyond the existing base value of $390,000. • Payments shall be made from budget appropriations each October for taxes paid the previous calendar year. • Each party has 90 days to cure any default. r., w1 o. o --- CI- *_ l`Of _f Actin #!m faA rni Grnnnmir flavalnnmant r:nmmiffaa 40% of New Property Taxes for 10 year term 1$404,678 Sales Tax from New Employee Spending 1 $536,010 961Page