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Project Enterprise 2017 BRC Application Oct 2BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Business Ready Community Grant & Loan Program Grant and Loan Application X Business Committed Application Managed Data Center Application Community Readiness Application Community Enhancement Application Please select an application type: Guiding Principles of the Business Ready Community Grant and Loan Program: • Support to Wyoming’s communities that are diverse in size, resources and economies. • Focus Business Ready Community funding on projects that will lead to sustainability of the program and local economic development efforts. • Support projects that will help people, families and communities thrive. • Increase the capacity of community and economic development partnerships and cooperative efforts between the private and public sectors recognizing that each has its own responsibilities. • Support and encourage communities that develop innovative responses to their economic challenges through a flexible review and recommendation process. See Rules, Section 14, page 1-9 for additional application evaluation criteria and measures at www.wyomingbusiness.org. BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Rules Rules governing the Business Ready Community (BRC) Grant and Loan Program are available through the Wyoming Business Council (WBC) or by clicking this link. Applicants Counties, incorporated cities, towns, and joint powers boards (with resolutions or support from all member agencies) may apply. The WBC may enter into contracts/cooperative agreements with Eastern Shoshone and Northern Arapaho Tribes. Funds BRC Required Match Category 1 Applicant Category 2 Applicant Notes Business Committed 10% 5% Half of match must be cash. Community Readiness 10% 5% Half of match must be cash. Community Enhancement 25% 20% Half of match must be cash. Planning 25% 25% Match must be cash. All matches are calculated as a percentage of total project cost. Tier Determination www.wyomingbusiness.org/matchcalculator (Included in last tab) Due Date For application deadlines, contact your Regional Director or Project Manager (contact information provided on the following page) or refer to the Wyoming Business Council website at: www.wyomingbusiness.org Review The review process includes an initial WBC staff screening, possible site visit and report to the WBC Board. The WBC Board will make recommendations to the State Land and Investment Board (SLIB). The SLIB will determine grant and loan awards. Applicants will be notified of all meetings. Timing of the approval process will depend on when the application is received and WBC and State Loan and Investment Board (SLIB) meeting schedules. Applicants are strongly encouraged to attend the WBC and SLIB meetings at which their project is to be discussed. Costs may not be incurred prior to a signed grant agreement. Submissions Applicants shall submit one (1) copy of the completed application to the WBC Regional Director, three (3) original complete applications, and one (1) electronic copy of the completed application to the WBC staff in Cheyenne. Applications must be submitted on 8 ½ X 11” format. Applications must be submitted in 3 ring binders with attachments clearly labeled or tabbed. Regional contact information is located on following page: BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Converse, Niobrara, and Natrona Counties Big Horn, Hot Springs, Park, and Washakie Counties Campbell, Crook, Sheridan, Johnson, and Weston Counties Kim Rightmer East Central Regional Director 2435 King Blvd, Box 1 Casper, WY 82604 Tel: 307.577.6012 Cell: 307.287.2309 kim.rightmer@wyo.gov Leah Bruscino Northwest Regional Director 143 South Bent, Suite B Powell, WY 82435 Tel: 307.754.5785 Fax: 307.754.0368 Cell: 307.421.0140 leah.bruscino@wyo.gov Brandi Harlow Northeast Regional Director PO Box 706 Wright, WY 82732 Tel: 307.689.1320 Fax: 307.686.7268 Cell: 307.689.1320 brandi.harlow@wyo.gov Lincoln, Sublette, and Uinta Counties Fremont and Teton, Counties Albany, Goshen Laramie, and Platte Counties Elaina Zempel Southwest Regional Director 520 Topaz, Suite 110-A Kemmerer, WY 83101 Tel: 307.877.2203 Cell: 307.723.1510 elaina.zempel@wyo.gov Roger Bower West Central Regional Director 213 West Main St., Suite B Riverton, WY 82501 Tel: 307.857.1155 Fax: 307.857.0873 Cell: 307-851-0908 roger.bower@wyo.gov Heather Tupper Southeast Regional Director 214 West 15th Street Cheyenne, WY 82002 Tel: 307.777.2804 Fax: 307.777.2838 Cell: 307.772.1265 heather.tupper@wyo.gov Carbon and Sweetwater Counties Send 3 hard copies and 1 electronic copy of the completed application to: Karen Fate / Brayden Connour, Project Managers Business Ready Community Grant and Loan Program Wyoming Business Council 214 W. 15th Street Cheyenne, WY 82002 Phone: 307.777.2827/ 307.777.2811 Fax: 307.777.2838 Cell: 307.214.0168/ 307.214.0270 karen.fate@wyo.gov brayden.connour2@wyo.gov Pat Robbins South Central Region Director 1400 Dewar Drive, Ste 208A Rock Springs, WY 82901 Tel: 307.382.3163 Fax: 307.382.3217 Cell: 307.389.0867 pat.robbins@wyo.gov Revised 3.17.17 BRC Application ii BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Schedule a Consultation with WBC Regional Director The WBC Regional Director must be consulted during the application process and be provided sufficient opportunity to provide written review and recommend adjustments to the application and (when required) business plan. The review must address how the project aligns with regional economic and community development endeavors. The review will state any early concerns that the Regional Director may have. Early consultations with the Regional Director will allow the applicant to begin addressing those concerns before the application is submitted. A draft copy of the application must be submitted to the Regional Director two weeks prior to the application deadline or the application will be considered incomplete. Along with the application, the Regional Director needs to review the following: • Business Plan (must be to the Regional Director one month prior to the application deadline) • Contingency and Development Agreement • Lease Agreement • Revenue Recapture Plan • Operation and Maintenance Plan (if a building will be constructed or renovated). The plan should include projected expenses and projected income sources for three years. THIS IS A REQUIREMENT OF SUBMISSION. IF YOU DO NOT PROVIDE A COPY OF A COMPLETE DRAFT APPLICATION, INCLUDING ALL ASSOCIATED DOCUMENTATION, TO YOUR REGIONAL DIRECTOR TWO WEEKS PRIOR TO THE GRANT DEADLINE AND OBTAIN THEIR SIGNATURE, YOUR APPLICATION WILL NOT BE COMPLETE AND WILL NOT BE ACCEPTED. The Regional Director comments about the project (if applicable) may be included in the application. The Regional Director’s signature is required on the checklist at the end of this application and the checklist with the signature should be included in the hard copy submission to Cheyenne staff. Revised 3.17.17 BRC Application iii BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM BUSINESS PLAN: A Business Plan, when required, must be submitted to the Regional Director one month prior to the application deadline or the application will be considered incomplete. Staff will evaluate the viability and thoroughness of a business plan. The business plan should address the following: • Business description • Values, Vision, Mission • Products and/or Services description • Background – history, current status, future plans • Technology concept – concept development, research plans • Management and Ownership (include qualifications and resumes) • Organization/Personnel – organizational chart • Operations – location, facilities and equipment, and labor • Provide sources and uses for “Start-up Costs”, “Expansion Costs” or “Working Capital” o What will it cost to open the doors? o What are the equipment and labor costs to start? • Detailed job creation figures • Market Analysis prepared by licensed realtor or agent • Competitive Analysis • Industry trends • Market investigation • Marketing Plan and Strategy • Challenges and Obstacles • Number, type and pay scale for the jobs to be created • Workforce Recruitment and/or Training Program • Financial information – historical financial performance, pro forma financials, assumptions (balance sheets, profit and loss (income) statements for the last three fiscal years and income projections for the next three years, and cash flow projections for the next three years) • Copies of the prior three years of tax statements must be submitted • All supporting documentation – licenses, certifications, contracts, etc. • Exit Strategy if applicable • Proof that funding has been sought from other sources or that no other funding exists • Other information as required by staff Please mark the business plan “Confidential Information.” The WBC will entertain entering into a non-disclosure agreement, pending approval by the Attorney General. The entire BRC application is considered a public record; however, financial and commercial information provided by the business is exempt from disclosure to the extent permitted by Wyoming Statute 16-4-203(d)(v). Revised 3.17.17 BRC Application iii BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM SECTION I: COVER SHEET 1. PROJECT TITLE: Project Enterprise 2. APPLICANT INFORMATION Applicant (City, Town, County, JPB, Tribe): Sheridan Economic and Educational Development Authority (SEEDA) Responsible Elected Official: Ken Thorpe, SEEDA Chair Mailing Address: PO Box 848, Sheridan, WY 82801 PROJECT REPORTING CONTACT Local Contact: Position: Mailing Address: Mark Collins City Administrator, City of Sheridan PO Box 848, Sheridan, WY 82801 Phone: Email: (307) 674-648 mcollins@sheridanwy.net 3. PROJECT ADMINISTRATION CONTACT Organization Name: Northern Wyoming Community College District Contact Person: Susan Bigelow, Ph.D. Mailing Address: c/o SEEDA, PO Box 848, Sheridan, WY 82801 Phone: (307) 752-1762 Email: sbigelow@sheridan.edu 4. TYPE OF PROJECT Briefly describe applicable project type. Infrastructure Type Brief Description Transportation Infrastructure Building Constructing a 90,000 to 100,000 square foot manufacturing facility at Sheridan High-Tech Park – on 9 acres of Lot 1 Water or Sewer Educational Development Other Infrastructure Data Center Utilities 5. PROJECT COSTS Indicate minimum necessary total public project infrastructure costs. a. Amount of loan requested: $ 0 b. Amount of grant requested: $12,592,090 c. Total match: $ 2,283,074 TOTAL Project Cost (a+b+c): $14,875,164 DECLARATION: I HERBY CERTIFY THAT THE INFORMATION GIVEN IN THIS APPLICATION TO THE WYOMING BUSINESS COUNCIL IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. Responsible (Elected) Official’s Signature and Date: (Signed copy will be sent after Oct. 31, 2018 meeting) ________________________________________________ Date____________________ Print or Type Name and Title: Ken Thorpe, SEEDA Chair Revised 3.17.17 1 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM SECTION II: PROJECT INFORMATION 1. PROJECT DESCRIPTION. Provide a description of the proposed project including the potential impact on the community, duration of the project, potential jobs to be created or retained and the desired results. An internationally recognized heritage company in a specialized manufacturing industry has selected Sheridan, Wyoming, as its future home. Western culture, a friendly regulatory environment, and a skilled workforce were some of the factors that led the company owners, the third generation of owners, to choose Sheridan. The company owners have asked that the company name and specific industry remain anonymous outside those who need to know in order to not be disruptive to their current operations. The working name of the company is Project Enterprise. Project Enterprise plans to create 70 to 90 jobs in the Sheridan area with only a handful of their senior employees relocating and the remaining jobs being filled with new hires. Sheridan College, a major supplier of skilled workers for local manufacturers, has career technical education programs that are relevant to the skills needed by this employer. Sheridan College will develop new tracks in these programs that will train skills specific to this company and the broader industry. Employment by Project Enterprise will increase Sheridan County’s employment in manufacturing by 18 to 24% compared to 2016 employment numbers. Other manufacturers are also increasing employment e.g. Vacutech. This increase in manufacturing employment and the number of significant employers in this sector strengthens the economic sector, supports a larger and more robust technical education program at NWCCD and attracts/retains skilled workers in the region. The Sheridan Economic and Education Development Authority (SEEDA), a joint powers board of the City of Sheridan and Sheridan College (Northern Wyoming Community College District), has a lot in the High-Tech Park that is suitable for the facility this company requires to relocate and grow. SEEDA will contribute the lot to the project. Additional details about the project structure are provided in the confidential MOU signed by SEEDA, the company owners and the Wyoming Business Council. SEEDA will construct a facility in accordance with the company’s needs and lease the building to Project Enterprise with the company having an option of purchasing the building after five years. The facility construction will be funded by the WBC grant and a local match contributed by SEEDA. The nominal size of the facility is 100,000 square feet with 70,000 square feet for manufacturing activities, 20,000 square feet for offices and 10,000 square feet for product testing and demonstration. The site selected is proximate to Vacutech’s manufacturing facility and near the new Interstate 90 interchange on the north side of the city of Sheridan. The building will be located on 9 acres Revised 3.17.17 2 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM of the 13.64 acre site enclosed by Yellowtail Loop and Hi-Tech Drive (Figure 1). Figure 1 Project Enterprise site in Sheridan High-Tech Park Revised 3.17.17 3 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM The company owners provided space requirements for various functions within the manufacturing, product testing and office areas of the facility. Karen Kelly, AIA, principal with Arete Design Group, developed several early concepts that will accommodate the company’s needs and work on the selected site. The office area in the foreground of Figure 2 is two-story with adequate room for office personnel, a showroom and reception area. The single story manufacturing facility located adjacent to the offices will be economically constructed using a metal frame building (Figure 3). The design takes into consideration the façade upgrades and other requirements for the City of Sheridan’s gateway zoning. Concepts for the office and manufacturing layouts are shown in Figure 4, Figure 5, and Figure 6. Figure 2 Facility concept with office building in the foreground and manufacturing facility in the background Figure 3 Manufacturing facility concept Revised 3.17.17 4 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Figure 4 Manufacturing layout concept Figure 5 First floor office layout concept Revised 3.17.17 5 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Figure 6 Second floor office area layout Revised 3.17.17 6 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 2. PUBLIC BENEFITS. Describe the public benefits of the proposed project including the importance of the project to the community and how it promotes economic development. Project Enterprise will create 70 to 90 direct jobs (directly employed by the company). The EMSI Analyst input-output model shows that an additional 24 to 30 jobs will be created based on the multiplier effect for this manufacturing industry (Table 2). The company anticipates that the hourly wages will range from $20 to $25. The most prevalent occupations in the industry (as represented by data for seven Rocky Mountain states) show an hourly wage ranging from $13.08 to $21.02 for non-engineering or management occupations. Skilled workers including welders, machinists, machine operators, and CNC operators make up over 17% of the workforce (Table 1). Table 1 Most represented occupations hired by the "niche" manufacturing industry 1 SOC Description % of Total Jobs in Industry (2016) Median Hourly Earnings 51-2092 Team Assemblers 7.8% $13.22 51-4121 Welders, Cutters, Solderers, and Brazers 7.1% $19.32 51-4041 Machinists 5.3% $21.02 51-1011 First-Line Supervisors of Production and Operating Workers 3.9% $26.79 51-9061 Inspectors, Testers, Sorters, Samplers, and Weighers 3.2% $18.07 41-4012 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 2.7% $26.73 51-4031 Cutting, Punching, and Press Machine Setters, Operators, and Tenders, Metal and Plastic 2.7% $15.73 51-4011 Computer-Controlled Machine Tool Operators, Metal and Plastic 2.6% $17.26 43-5071 Shipping, Receiving, and Traffic Clerks 2.3% $14.70 11-1021 General and Operations Managers 2.3% $41.11 53-7062 Laborers and Freight, Stock, and Material Movers, Hand 2.3% $13.08 17-2141 Mechanical Engineers 2.1% $40.72 Project Enterprise’s operations and triple net lease of the facility will result in an increase in tax revenue from $353,000 to $454,000 annually based on their projected employment (Table 2). The tax revenues will contribute to the return on (public) investment from the project. Establishing a major employer in this industry should encourage growth in an industry cluster 1 EMSI Analyst report, Staffing Patterns in Seven States: Montana, Wyoming, Idaho, Utah, Nevada, Arizona, and Colorado. Revised 3.17.17 7 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM that is not related to the energy industries. This industry is projected to grow employment by 40% from 2017 to 2027 in the seven state region that includes: Arizona, Colorado, Idaho, Montana, Nevada, Utah and Wyoming 2. This industry has a projected 2027 location quotient (LQ) higher than 1 in all of these states which indicates that the prevalence of employment in this industry is higher than normal (range 1.03 to 7.17). Table 2 Changes to "Niche" Manufacturing - Project Enterprise 3 Scenario 1 – 70 direct jobs $5,747,915 94 $353,543 Change in Earnings Change in Jobs Change in Taxes on Production and Imports (TPI) 1.15 Multiplier 1.34 Multiplier Scenario 2 – 90 direct jobs $7,390,177 120 $454,555 Change in Earnings Change in Jobs Change in Taxes on Production and Imports (TPI) 1.15 Multiplier 1.34 Multiplier 2 EMSI Analyst report, Data Sources: This report uses state data from the following agencies: Arizona Department of Administration, Office of Employment and Population Statistics; Colorado Department of Labor and Employment; Idaho Department of Labor; Montana Department of Labor and Industry, Research and Analysis Bureau; Nevada Department of Employment, Training and Rehabilitation, Information Development and Processing Division, Research and Analysis Bureau; Utah Department of Workforce Services; Wyoming Department of Employment, Research and Planning. 3 EMSI Analyst, Data Sources: The input-output model in this report is Emsi's gravitational flows multi-regional social account matrix model (MR-SAM). It is based on data from the Census Bureau's Current Population Survey and American Community Survey; as well as the Bureau of Economic Analysis' National Income and Product Accounts, Input-Output Make and Use Tables, and Gross State Product data. In addition, several Emsi in-house data sets are used, as well as data from Oak Ridge National Labs on the cost of transportation between counties. Revised 3.17.17 8 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 3. PROJECT GOALS AND OBJECTIVES. Describe the goals of the project and identify indicators or measures to be used to determine at the conclusion of the project if goals were achieved and if the project is a success. The performance measures should focus on solid, measurable actions related to the project. Examples of indicators may be the amount of money leveraged (from other public or private sources), number of self-sufficient jobs created, number of business-ready lots created, etc. The goal is to grow and diversify the Sheridan economy and contribute to the Wyoming economy. The specific objectives include: a. Job growth in skilled jobs with self-sufficient wages b. Private investment by employer c. Economic diversification and growth d. Growth in the manufacturing sector (31-33) and the specific manufacturing industry (3329xx) The measurements include: a. Private investment by Project Enterprise as evident in its financial reports. b. Jobs – direct jobs by Project Enterprise – as documented by Workforce Services and/or reported by employer. c. Economic diversification – measured as jobs in the manufacturing industry as a percentage of the total jobs in Sheridan County – available from Wyoming Department of Workforce Services and/or EMSI (Table 3). d. Growth of industry cluster – both at the two digit and six digit NAICS codes. This can be measured by direct jobs (Wyoming Department of Workforce Services and/or EMSI) and location quotient using an economic analysis tool such as EMSI (Table 3). While manufacturing has grown employment by 23% from 2007 to 2017 it represents only 3% of the total Sheridan County employment and has a location quotient of only 0.41. With 506 employed in manufacturing and 373 of those in non-food related manufacturing in Sheridan County, the area County has a solid base of manufacturing employers with good opportunity for growth that can be objectively measured (Table 3 and Table 5 on page 16). Revised 3.17.17 9 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Table 3 Industry overview by 2 digit NAICS for Sheridan County, WY 4 NAICS Description 2017 Location Quotient (LQ) 2007 Jobs 2017 Jobs 2007 - 2017 Change 2007 - 2017 % Change 11 Crop and Animal Production 2.98 725 578 (147) (20%) 21 Mining, Quarrying, and Oil and Gas Extraction 3.97 563 250 (313) (56%) 22 Utilities 0.93 82 52 (30) (37%) 23 Construction 1.52 1,703 1,293 (410) (24%) 31 Manufacturing 0.41 412 506 94 23% 42 Wholesale Trade 0.61 320 364 44 14% 44 Retail Trade 1.09 1,859 1,789 (70) (4%) 48 Transportation and Warehousing 1.11 660 605 (55) (8%) 51 Information 0.61 174 180 6 3% 52 Finance and Insurance 0.69 429 423 (6) (1%) 53 Real Estate and Rental and Leasing 1.01 233 262 29 12% 54 Professional, Scientific, and Technical Services 0.68 778 695 (83) (11%) 55 Management of Companies and Enterprises 0.07 11 16 5 45% 56 Administrative and Support and Waste Management and Remediation Services 0.44 342 440 98 29% 61 Educational Services 0.08 57 33 (24) (42%) 62 Health Care and Social Assistance 0.80 1,632 1,625 (7) (0%) 71 Arts, Entertainment, and Recreation 1.04 194 282 88 45% 72 Accommodation and Food Services 1.22 1,470 1,662 192 13% 81 Other Services (except Public Administration) 1.08 874 819 (55) (6%) 90 Government 1.66 3,413 4,017 604 18% 99 Unclassified Industry 0.00 0 0 0 0% Totals 15,929 15,890 (39) (0%) 4 EMSI Analyst report Revised 3.17.17 10 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 4. PROJECT NEED. Describe in sufficient detail the need for the project and why BRC funds are necessary. Wyoming has an energy based economy and the economic woes occurring because of volatility in the energy-based economy highlight the importance of diversifying the economic base. Manufacturing has long been a stable economic foundation with the ongoing need for skilled workers and a high multiplier effect for indirect and induced jobs resulting from the direct jobs created by the primary manufacturing employer. Sheridan has benefited from the presence of several manufacturers, many of whom are not related to or solely reliant on the health of the energy industry. Several manufacturing firms that had their roots in the energy industry have successfully diversified their client base and geographic reach. Vacutech, L&H Industrial, Kennon Products and Emit Technologies are examples of manufacturers who are thriving in the Sheridan community and in Wyoming in general. Recruiting Project Enterprise to Sheridan, Wyoming, will grow the manufacturing cluster in the region. Additionally, the primary skilled workforce is similar to that already employed by the other manufacturers in the region. The growth of a cluster of manufacturers with similar workforce needs helps attract a larger pool of students for the training available at the community college and to employment opportunities with a pool of employers. As a “niche” manufacturer with a high jobs multiplier rate (1.34) this company has several communities and states competing for it to relocate. While its current location is “pushing” it to relocate based on a combination of regulations, economics, and culture, the company has several options for where to put down new roots. The company will not choose to locate in Wyoming without the incentive that the custom designed manufacturing building, the conducive regulatory environment, and the cultural fit provided by the Sheridan, Wyoming, location. The project is structured such that the company’s primary investment in the first several years is in operations while the capitalization costs are paid by the grant and match. The capitalization costs are repaid from the project later in the form of taxes, lease payments and possible purchase. Revised 3.17.17 11 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 5. FUNDING DENIAL. What are the repercussions if funding is denied? The size of the project is such that the community of Sheridan will not be able to secure Project Enterprise’s commitment to relocate and commence the project without the Wyoming Business Council grant. If this funding is denied, the company that is planning to relocate its operations to Wyoming will not select Sheridan or another community in Wyoming. 6. FUNDING SOUGHT. a. Have any other Federal, State or Private sources been pursued for this project? No other funding has been pursued by SEEDA for this project. (Check all that apply and fill in Additional Funding Table) Federal Grants (USDA, EDA, Etc.) State Land and Investment Board (Is your project on the Comprehensive Priority List for Clean Water or Drinking Water? If so, what rank?) Water Development Commission Department of Transportation (TEA Program) Wyoming Department of Health Other State Sources (Specify) Private Donations or Foundation Grants (Specify) Commercial Financing (Specify Bank) Other: b. Please describe any successful, unsuccessful and pending awards. ADDITIONAL FUNDING TABLE Funding Description Amount Awarded Denied Pending Anticipated Decision Date Further Explanation Revised 3.17.17 12 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 7. OWNERSHIP. Will the local government own the improvements funded by this program? Yes No If "no," who will own the improvements? If the applicant is a joint powers board, attach a Certificate of Organization and an executed Joint Powers Agreement to the application. Certificate of Incorporation is required if a Community or State Development Organization will carry out the project. See Tab 5 in Grant Application SEEDA, a joint powers board, owns the property, is the applicant for the grant and will own the building that is constructed with the grant and match funds. A copy of the SEEDA documents are attached. SEEDA member entities include the City of Sheridan and the Northern Wyoming Community College District (dba Sheridan College). The building is being constructed on a 13.64 acre site which can be further sub-divided. SEEDA will subdivide the property prior to the sale of the building and property to the Committed Business. Nine acres is being pledged for this project. The remaining 4.64 acres which are contiguous and make up the remainder of the site will be available for further expansion or another tenant in the Sheridan High-Tech Park. See Tab 6 in Grant Application Revised 3.17.17 13 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 8. TIMELINE. Describe a realistic project timeline. If the project is to be phased, provide a separate timeline for future phases. DO NOT EXPEND FUNDS BEFORE CONTRACT HAS BEEN FINALIZED. Project Enterprise has identified an aggressive schedule to be in full operation in Wyoming. Company owners plan to move all office-related functions to Sheridan by June 2018 and have manufacturing operations underway in the newly constructed manufacturing facility by December 2018 to February 2019. The architect is recommending an 18 month project schedule for design go-ahead to construction close-out (Table 4). SEEDA is using its cash match to fund the architect/engineer design team to work toward the 35% design prior to grant award to support an earlier construction completion. Grant award is required to move to 50% design. Table 4 Timeline in Months with Cumulative Expenditures and Major Milestones Months 1 2 3 Grant Award 4 5 6 Cumulative Expenses Construction & Contingency 0 0 0 0 0 0 Architect Engineer Fees & Expenses 82,707 172,307 275,691 409,056 547,422 656,151 Misc Expenses (Owner Direct) 23,758 41,577 41,577 46,328 51,080 51,080 Cumulative Total Expenditures 106,465 213,884 317,268 455,385 598,502 707,231 Milestones % of Design Completed 10% 25% 35% 50% 85% 100% Out for Bid Bid Pk1 (fnd) Bid Pk 2 Construction Break ground Months 7 8 9 10 11 12 Cumulative Expenses Construction & Contingency 475,162 1,069,116 1,781,859 2,732,184 3,920,090 5,107,996 Architect Engineer Fees & Expenses 673,381 693,197 711,030 728,864 746,698 764,532 Misc Expenses (Owner Direct) 51,080 58,207 71,037 85,292 87,667 98,596 Cumulative Total Expenditures 1,199,624 1,820,520 2,563,926 3,546,340 4,754,456 5,971,124 Milestones % of Design Completed Out for Bid Construction Months 13 14 15 16 17 18 Cumulative Expenses Construction & Contingency 6,533,484 7,958,971 9,146,877 10,334,783 11,285,108 11,879,061 Architect Engineer Fees & Expenses 782,366 800,199 818,033 835,867 853,701 871,534 Misc Expenses (Owner Direct) 111,663 127,106 143,737 150,864 155,616 160,367 Cumulative Total Expenditures 7,427,512 8,886,276 10,108,647 11,321,514 12,294,425 12,910,963 Milestones % of Design Completed Out for Bid Construction Finish shop Finish offices Close-out Revised 3.17.17 14 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Expected SLIB Award Date: January 18, 2018 Expected Contract Routing final date (allow 6-8 weeks from SLIB award): February 1, 2018 Expected Construction Bid Award, if applicable: 2 months after grant award for foundation and 3 months for the remainder of construction Any other authorizations, permits, funding, or activities necessary prior to the commencement of the project: NA Expected Property Transfer, if applicable: NA Expected Construction closeout, if applicable: 15 months after grant award – assuming 35% design completed prior to grant award Revised 3.17.17 15 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 9. READINESS. Will this project improve the community's readiness for future business development? Yes No Explain: The revenue from this project which will be retained by SEEDA will be used to further economic development opportunities including but not limited to infrastructure development, match for state and federal grants, and support for economic development initiatives. The increase of 70 to 90 jobs in niche manufacturing increases our skilled manufacturing workforce in the county and region. The demand for skilled workers with specialized skills and the company’s participation will support a new track within one or more of Sheridan College’s career technical education programs, Machine Tool Technology and Welding Technology. These program tracks should attract new enrollment and result in increased graduates in a specialized manufacturing occupation. In turn that increased pool of graduates and skilled workers should increase the community’s readiness for future business development in this specific industry and related or similar manufacturing industries. This company and project will help establish and grow an industry cluster of related companies and the overall manufacturing sector. Table 5 Non-food related manufacturing in Sheridan County 5 6 NAICS Description 2017 Location Quotient 2007 Jobs 2017 Jobs 2007 - 2017 Change 2007 - 2017 % Change 2016 Establish- ments Avg. Earnings Per Job 321 Wood Product Manufacturing 0.06 131 <10 ID* ID* 1 ID* 323 Printing and Related Support Activities 0.33 19 15 (4) (21%) 3 $25,396 325 Chemical Manufacturing 0.18 0 15 15 ID* 1 $121,508 327 Nonmetallic Mineral Product Manufacturing 1.39 51 57 6 12% 2 $62,683 332 Fabricated Metal Product Manufacturing 0.59 91 84 (7) (8%) 6 $54,781 333 Machinery Manufacturing 1.25 <10 134 ID* ID* 2 $57,220 334 Computer and Electronic Product Manufacturing 0.58 21 59 38 181% 1 $62,356 336 Transportation Equipment Manufacturing 0.01 0 <10 ID* ID* 1 ID* 337 Furniture and Related Product Manufacturing 0.03 15 <10 ID* ID* 1 ID* 339 Miscellaneous Manufacturing 0.08 18 <10 ID* ID* 2 ID* Totals/Percentages and Averages 347 373 26 7% 20 $58,828 ID = Insufficient Data 5 EMSI Analyst Report, Industry Table Revised 3.17.17 16 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM The pool of manufacturers includes 20 as identified in the EMSI report for the non-food related manufacturing reporting any data in employment. A significant employer in 2007 with 131 employees (NAICS 321) was probably Wyoming Sawmills. Wyoming Sawmills announced in 2008 that it planned to “lay off 50 of its 76 workers” primarily because of the slowdown in new housing construction.7 Although the company hoped to return to full force the national economy did not improve and Wyoming Sawmills laid off remaining workers in early 2009. A petition for Trade Adjustment Assistance was filed on behalf of about 120 workers. Fortunately, Vacutech, a company that located to Sheridan in 2012, NAICS 333318, is one of the two companies reporting employment in the NAICS 333 sector. Their increase in employment nearly offset the loss of jobs in the sawmill industry. Employers with 50 to 150 jobs in Sheridan County are significant contributors to the local employment and economy. The increase in 70 to 90 jobs in manufacturing will increase the employment in the non-food related manufacturing sector by 18 to 24 percent, a significant increase in the sector. The larger pool of skilled employees working for the 20 to 25 manufacturing employers will help attract additional skilled workers as the workers will have a larger number and diversity of employment opportunities in the community. 7 Wyoming Public Radio article archives, interview with Ernie Schmidt, April 12, 2011. Revised 3.17.17 17 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 10. COMMUNITY ENHANCEMENT PROJECTS: a. How will this project improve the community’s ability to attract and retain businesses? NA – This project is not a community enhancement project but the project will enhance the community through the construction of an attractive manufacturing facility near the new interstate interchange north of Sheridan. The addition of this manufacturing site near the current Vacutech manufacturing facility will improve the visibility of manufacturers and manufacturing in Sheridan. SEEDA has additional sites available in the High-Tech Park and other sites are available in the county so increasing visibility of this target industry should help attract additional businesses. b. Provide a priority listing of proposed community enhancement projects and sites related to economic development along with preliminary cost estimates; NA 11. DOWNTOWN DISTRICT. Is the project located in a downtown district? (If no, skip to Question 12) No a. Is the community a Wyoming Main Street Community? If yes, please provide reinvestment statistics regarding the district. NA b. Does the community have any downtown specific organizations and how are they involved in this project? NA c. Discuss the community’s downtown development strategy. Does the community have a downtown master plan or is the downtown part of another plan? Attach the community’s comprehensive downtown strategy and/or planning documents. NA d. If the community has a downtown plan, what projects have already been implemented and how is it impacting the downtown (jobs, business retention/growth, etc)? NA 12. HISTORICAL or CULTURAL SIGNIFICANCE (if applicable). Provide a background on the historic or cultural significance of the project. Describe the extent to which the project will preserve or enhance the historic or cultural significance of the asset and/or community. NA Revised 3.17.17 18 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 13. PROCUREMENT/PREFERENCE/WYOMING SITES a. Attach a Statement that the Applicant will follow State Procurement Standards Inclusive of W.S. § 15-1-113 and W.S. § 16-6-101, et seq. b. Attach acknowledgement that the Wyoming Preference Act (Wyoming State Statute § 16- 6-201 through 16-6-206) will be adhered to throughout the project. For additional information please contact the Wyoming Workforce Services Labor Standards Office at: 307-777-7261. To view the actual statute, please go to the following link: http://legisweb.state.wy.us/statutes/statutes.aspx?file=titles/Title16/T16CH6AR2.htm c. Attach a Statement that the Applicant will list the site/structure on www.wyomingsites.com The Sheridan High Tech Park sites are certified by the Wyoming Business Council certification program and are listed on the WBC sites. One combined statement is included in Tab 7. The statement will be signed at the SEEDA meeting on October 31, 2017. Figure 7 Sheridan High Tech Park on the www.wyomingsites.com website Revised 3.17.17 19 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 14. REVENUE RECAPTURE PLAN, if applicable. Final draft or executed copy only. See Section IX. Will the project funded by BRC funds generate revenue? Yes No If "yes," attach a specific plan that anticipates revenue streams and prioritize economic development initiatives to be paid for with the revenue. Revenue generated by the applicant or a private developer through BRC publicly funded infrastructure projects must be recaptured in full by the applicant. This plan must be signed and dated by Eligible Elected Official. SEEDA’s Revenue Recapture Plan for this project is included with the grant application and reflected in Section IX. Existing Revenue Recapture Funds SEEDA presently manages the recaptured funds from both the Sheridan High-Tech Park and the Sheridan Commercial Park projects, which both used the WBC Community Readiness grant funds to install infrastructure to create project ready properties. SEEDA has realized revenue in the form of sales and compensation for property within the parks. Revenue Recapture as of 6/16/2017 Revenues Sheridan Hi-Tech Park: Lot 3 $145,161.00 Sheridan Hi-Tech Park: Lot A $110,940.00 Sheridan Hi-Tech Park: North Sheridan Interchange $470,541.00 Sheridan Commercial Park: Lot 1 $551,990.00 Sheridan Commercial Park: Lot 9 $271,326.00 $1,549,958.00 Expenditures and Committed Funds Matching Funds: CTET Strategy and Target Industry Study $16,625.00 Wyoming Theater Festival $145,000.00 Matching Funds: Creative Economy Study $16,667.00 Matching Funds: WYO Performing Arts Phase II (Hallmark) $200,000.00 Sheridan Startup Challenge - Entrepreneurship $50,000.00 Decker Road Property Redevelopment Project $95,000.00 SEEDA Facility Maintenance and Insurance $64,088.18 Prof. and Contract Services in Support of Econ. Dev. Activities $35,158.71 $622,538.89 Revenue less Expenditures and Committed Funds $927,419.11 As demonstrated by the number of activities funded by existing revenue recapture funds, SEEDA actively uses recapture dollars to leverage additional resources for local economic development projects and initiatives. This includes providing matching funds for other Wyoming Business Council funded projects. The SEEDA board is providing all of the match for this project – in the form of land in the Sheridan High-Tech Park and cash from the available recaptured funds. Revised 3.17.17 20 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 15. WORKFORCE TRAINING SCHEDULE, if applicable. Attach a workforce recruitment and/or training program. Include a program outline if the project involves educational development infrastructure for workforce or entrepreneurial training. The Company is interested in filling a variety of positions that may come from recent graduates or applicants from the community or region. The Company anticipates hiring from 22 to 42 new employees from the community or region (Table 6). Table 6 Anticipated new hires Low High Positions 1 1 Receptionist- basic clerical skills and customer service savvy 2 3 Customer service (warranty) representatives- need to have skills in customer service but also product knowledge- Training is extensive for product knowledge 2 3 Sales representatives-Training is extensive for product knowledge 2 3 Marketing from admins, design, web master, social media- outdoor living and experience in the specific industry or desire to be part of it. 1 2 Accounting- basic AR/AP; maybe a controller position. 1 1 HR admin 1 2 IT directors or help desk, ERP grades, company infrastructure 1 2 Engineers for product design and QC for incoming supplier materials/parts 1 4 Skilled technicians with certifications from qualifying college programs 1 3 Assembler I - minimal skill 4 8 Product assembly, polishing, etc.- higher skill 2 4 Specialized painting operators- higher skill 2 4 Warehouse and shipping- receiving, packing, 1 2 Design, testing and assembly of secondary product 22 42 Range of total new hires The employer anticipates hiring from 22 to 42 new employees. Based on an estimate of $2,000 to $4,000 per trainee/new hire in either Pre-Hire or New Hire training, SEEDA anticipates submitting a pre-obligation or similar request to the State of Wyoming for $168,000. The Wyoming’s Training Grants include Pre-hire grants to training providers such as NWCCD/Sheridan College to train a pool of potential employees in specific skills based on one or more employers indicating the demand for the workers and the skill requirements and New Hire grants to the business entity to train or upgrade skills for new employees within a short time frame after they are hired. Economic development organizations such as SEEDA can apply to the DWS to have grant funds pre-obligated for a relocation or expansion project that will later be awarded through Pre-hire and New Positions grant awards. SEEDA will request a pre-obligation from the State for funds from this program or a similar program. The Company is phasing its transition with office occupations arriving in July 2018 and manufacturing and assembly in January 2019 or as soon as the manufacturing facility is open. The following schedule shows the need to submit a pre-obligation application prior to submitting one or two pre-hire grant applications and one or two new position applications during the following Revised 3.17.17 21 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 12 to 15 months. At this time NWCCD and the employer are planning to hold two job-fairs which will recruit applicants to participate in pre-hire training and/or be hired directly by the company. We plan to have training for two cohorts of applicants offered prior to employment (one for the office personnel and one for the manufacturing personnel). The company will provide in-house training required for all new employees to be effective in this industry and for this employer. The costs and detailed plans for the job fairs, college provided training and company provided training will be included in the workforce training pre-obligation application. Table 7 Grant application, job fair and training schedule Schedule 2017 2018 2019 O N D J F M A M J J A S O N D J F SEEDA submit pre-obligation proposal x WBC Board Meeting x SLIB Meeting x Relocation Announcement x Offers to current employees x Commitment from current employees x Positions to be filled are known x First Pre-Hire Grant Application - College - 30 day approval F 30 A First New Hire Grant Application - Company F 30 A College/Company Host first job fair - office positions x College provides first pre-hire training course xxx Company establishes office operations in Sheridan x Company provides first new hire training course xxx Second Pre-Hire Grant Application - College F 30 A Second New Hire Grant Application - Company F 30 A College provides second pre- hire training course xxx Company establishes manufacturing operations in Sheridan x Company provides second new hire training course xxx Revised 3.17.17 22 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM *16. OPERATIONS AND MAINTENANCE, if applicable. Final draft or executed copy only. Attach a detailed Operations and Maintenance Plan (for Business Committed projects, the Business Plan may contain the O&M Plan). The plan should define the roles of the Applicant Community, CDO, developer, committed business, etc. in the maintenance of project infrastructure or facilities. The plan should include projected expenses and project income sources for the life of the asset. Responsibilities for operations and maintenance are addressed in the lease agreement. Project Enterprise’s expected operations and maintenance expenses and ability to cover those expenses are covered in the Business Plan (Confidential). SEEDA will maintain responsibility for the foundation, structure and roof and other expenses not assigned to the tenant during the lifetime of the lease. SEEDA has addressed in the Revenue Recapture Plan its plan to withhold funds for expenses related to maintaining the asset during the lifetime of the lease from the recaptured revenue allocated to the Wyoming Business Council. Draft Operations and Maintenance Agreement is included in Tab 9. *17. LEASE AGREEMENT, if applicable. Final draft or executed copy only. A signed lease agreement will be required if the applicant or CDO is leasing property as a part of this project. The draft lease will be edited upon grant award to reflect Project Enterprise’s identity. The lease will be executed after grant award and prior to partial or complete occupancy of the facility. Draft Lease Agreement is included in application under Tab 10. Revised 3.17.17 23 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM *18. CONTINGENCY/DEVELOPMENT AGREEMENT, if applicable. Final draft or executed copy only. The Contingency and Development Agreement between the applicant, the business, and a Community Development Organization (if applicable), agreeing that expansion or relocation will occur and under what conditions. Along with the details of the project and responsibilities of each party, it should address: • The project • Public benefit to be derived by the project • Return or consideration by the private business in exchange for the public project • Specified source of match funding by account name or other identifying characteristics • Job creation, wages, and payroll • What will happen in the case of project cost over runs • Commitment of a business to a community • Private investment • Public procurement • Performance measures and reporting • Timelines • Marketing of available properties, particularly on wyomingsites.com • Responsibilities of each party • Operations and Maintenance, if not included in another document • Default remedies The Development and Contingency Agreement is included with the application under Tab 11. The Agreement will be edited to reveal the company’s identify and executed prior to or upon the grant award. *Please consult with Regional Director for project specific required documents. Revised 3.17.17 24 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 19. SOCIAL SERVICES, (CHILD CARE, SENIOR CARE). If the project will expand social services, explain whether demand for those services is outpacing the existing supply of services. Attach any relevant documentation. What is the net effect on the local economy? Attach any relevant documentation. NA 20. MANAGED DATA CENTER COST REDUCTION PROJECTS: a. Attach evidence that there is, or will be infrastructure, architecture, and services necessary for the support of a Tier II, Tier III or Tier IV data center. b. Attach projected utility costs. NA 21. PROJECTS INVOLVING A PRIVATE DEVELOPER: Applicant must provide information about why it is necessary for public assistance in the private project and the consideration exchanged for the public assistance. NA 22. PROJECTS INVOLVING A COMMUNITY DEVELOPMENT ORGANIZATION OR ECONOMIC DEVELOPMENT ORGANIZATION: Applicant must provide a Certification of Incorporation. NA Revised 3.17.17 25 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM SECTION III: PUBLIC HEARING PROCESS An applicant is required to inform and educate the public and business community to the greatest extent possible about the proposed economic development project utilizing a variety of techniques and media. To inform the public and to gather information, the public hearings should at a minimum: identify the economic development opportunity/ies; explore all possible funding sources and alternative solutions to the opportunity/ies; contain a comprehensive description of the proposed project; and solicit testimony from citizens who may feel that the proposed use of the project might compete with an existing business. The applicant must make readily available to the public, access to the application and associated materials, exclusive of business plans or business financial information which are not subject to public information statutes. An applicant shall actively solicit citizen input which can be submitted via writing, electronically, or in person at a public hearing. A minimum of one public hearing before submission of an application. For the purposes of this program seven (7) days is the minimum period for notification of a hearing date. Public notice shall be published in a newspaper of general circulation within the boundaries of the applicant or as approved by the council staff. If the project facility is to be located outside the boundaries of the applicant, the applicant shall hold additional public hearings near the location of the proposed project facility. An applicant must use its best efforts to notify all providers of similar services in the market area about the public hearing at least seven (7) days in advance of the public hearing. The notice shall contain a concise description of the proposed project and state that time will be set-aside at the Public Hearing to take testimony from citizens about the project. See http://bit.ly/2gPE4Zt for a template. An application must be accompanied by: • a description of the applicant’s public engagement process, • written comments received by the applicant, • evidence of the public hearing notification, • minutes from the Public Hearing with any oral testimony Resolution: Attach Resolution(s) of Support and minutes. After a public hearing is held, the applicant community must pass a Resolution of Support with verifying minutes. If the applicant is a Joint Powers Board, all participating agencies to the joint powers agreement must pass separate Resolutions of Support. The Resolution should state, at a minimum: • the nature of the project • public benefit • desired economic development outcomes • specified source of match funding by account name or other identifying characteristics • who will be responsible in the case of project cost overruns • the details of the Revenue Recapture Plan, if applicable • who will be responsible for Operations and Maintenance Revised 3.17.17 26 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM SECTION IV: SITE INFORMATION 1. What is the location/address of the project? 1401 Hi-Tech Drive, Sheridan, WY 2. Is the project site currently publicly owned? Yes No 3. Does the project involve land acquisition? Yes No If "yes," then who owns the site and what steps are being taken, and by whom, to acquire the property? Include documentation of owner’s willingness to transfer property. *PROFESSIONAL APPRAISAL: If the project involves purchase of property, then there must be a professional appraisal completed by a qualified appraiser. NA 4. REHABILITATION. Will the requested grant or loan fund the purchase, rehabilitation, or expansion of existing infrastructure or facilities? Yes No If "yes," explain. *QUALIFIED STRUCTURAL ANALYSIS: A qualified structural analysis is required for all projects involving the renovation/rehabilitation or financing of an existing structure or facility. A professional analysis must be completed by a qualified structural engineer/architect. NA 5. Describe the site including total acres or square footage, size of developable area, and number of parcels for development. Also, describe any structures on the site, including useable square footage. Attach a detailed map, aerial photograph, and/or site plan showing the location of the project site and the facility proposed to be funded with BRC. If the project includes public infrastructure activities, the map should sufficiently detail those improvements and their location. The project site is part of one of the lots in the Sheridan High-Tech Park. There are no structures on the land. The entire lot is 13.64 acres. Nine acres are being contributed to this project. 6. How is the site currently used? The site has been developed by SEEDA for industrial operations. Prior to development for this purpose the site was used for agriculture including dry-land farming and grazing. 7. What is the proposed future land use of the site? Is it based on a community development plan? Reference the plan and describe how this project is consistent with that land use plan. Attach only relevant portions of the plan. Manufacturing has been identified consistently as an industry target in several economic development target industry studies including that conducted by Wadley-Donovan in 2007, the Revised 3.17.17 27 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM SEEDA target industry study (2014), and the North East Wyoming Growth Alliance (NEWGA) plan (2016) The Sheridan High-Tech Park was designed to attract and locate primarily manufacturing firms with Vacutech being the first company to locate in the park. The infrastructure and lot size were designed to accommodate medium sized manufacturing facilities – such as the 100,000 square foot facility planned for Project Enterprise. 8. Is the site zoned? Yes No a. If the site is zoned, attach a map and a description of the allowable uses under this zoning. The High-Tech Park is zoned under the classification of Gateway District. Permitted uses include: 1. Data Centers 2. Professional Offices 3. Light Industrial/Manufacturing uses which generate minimal noise, odor, smoke, waste material, and similar items which may negatively impact the environment are permitted. 4. Business services or service establishments such as electronic repair, small equipment repair, small welding shop, and similar facilities. 5. Research and development space which includes office, support, and warehouse/research areas (flex tech). b. Is the proposed use consistent with that designation? Yes c. Will a zone change be required for intended use? Explain. No 9. Are there any known environmental concerns at the site such as asbestos, wetlands, floodplains, or sage grouse area? Yes No If yes, explain: 10. Consult WYDOT if the project will take place in a public right of way. For projects within the Wyoming Department of Transportation rights of way, contact the WYDOT District Engineer. Attach a Letter of Acknowledgement from WYDOT. (A Right-of-Way Agreement with WYDOT may be necessary if a grant or loan is awarded.) NA 11. What infrastructure is necessary to serve the proposed site (i.e., water, sewer, electricity, natural gas, transportation facilities, and telecommunications) and what are the current coverage, quality, and capacity of the existing infrastructure? If there are deficiencies within any of the Revised 3.17.17 28 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM infrastructure systems, explain how the deficiencies will be improved. The site is certified as “project ready” under the Wyoming Business Council’s program as independently verified. The necessary water, sewer, electricity, natural gas, transportation facilities, and telecommunications are all immediately available. 12. SIMILAR SITES. Are there similar sites or facilities within the community that are un- utilized or under-utilized? Yes No If "yes" please detail what makes this particular site unique or necessary. 13. DIGITAL PHOTOS. Please attach 2-3 digital (jpg) photographs suitable for project presentation. See Tab 6. a. Site b. Office elevation c. Manufacturing elevation Revised 3.17.17 29 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM SECTION V: COMMUNITY INFORMATION Attach portions of plans, studies, assessments, and/or reports that are relevant to project. Reference the attachment in your answer. (DO NOT INCLUDE LARGE REPORTS IN THEIR ENTIRETY). Examples of applicable plans: • A current Comprehensive Economic Development Strategy (CEDS) covering the area, • A recent labor for availability study addressing such things as unemployment, underemployment, wage distributions, commuting patterns, skill availability and educational levels; • A targeted marketing and recruitment strategy and who will be responsible for marketing; • A housing availability study; • A prioritized list of infrastructure projects, sites related to economic development along with preliminary cost estimates for land acquisition, engineering and construction; • Any plans related to labor skills, materials availability, feedstock materials, etc.; • Other appropriate studies relating to education, workforce, entrepreneurial development. 1. COMMUNITY AND ECONOMIC DEVELOPMENT GOALS. How does this project fulfill local and regional community and economic development goals? Is this project a part of an overall community plan? Does the community have an economic development plan or other study of the local economy? Yes No If "Yes," then provide the names and dates of relevant plan(s) and describe how does the proposed project fits into the overall economic development strategy of the community. SEEDA is committed to growing a diversified economy in Sheridan, expanding existing businesses, and creating an environment conducive to recruiting new economic development. Developing the Sheridan High-Tech Park is one of the key accomplishments in getting Sheridan ready for growth in the manufacturing industry. Economic and community development studies and plans have consistently determined that Sheridan should target light manufacturing and data centers. The following plans from 2008 to 2017 have consistently identified manufacturing as an opportunity for attraction of new investment and job growth. Sheridan Land Use Plan (2017) One of the themes of the plan was identifying and developing "Suitable Industrial Locations." Guiding principles of that theme included establishing, "Well-designed industrial parks with good access to public utilities, railroad lines, I-90, and other existing infrastructure," and "Appropriately located industrially zoned land that can support regional industries such as manufacturing, energy development, railroads, and related uses." Development within the Sheridan Hi-Tech Park is fully in harmony with these guiding principles, and serves as a model for industrial development in other parts of the community. Revised 3.17.17 30 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Northeast Wyoming Regional Marketing Plan (2016) The New Growth Alliance Northeast Wyoming Regional Marketing Plan (2016) focuses on branding and marketing the northeast Wyoming region as a preferred business location to external target businesses throughout the U.S. and the world. The study noted a lack of adequate portfolio of available, prepared industrial and commercial sites and parks with the exception of Sheridan’s “shovel ready” site. The study also reinforces that advanced manufacturing should be a regional target business opportunity segment. Target Industry Profiles and CTET Strategy Recommendations (2014) SEEDA commissioned the Target Industry Profiles and CTET Strategy Recommendations report in 2014. The report focused on refining the Wadley Donovan study to identify a concise and updated list of target industry sectors. Light manufacturing is recommended as a target industry for Sheridan and that Sheridan’s light manufacturing industry has performed well in recent years and that light manufacturing jobs in Sheridan pay and average salary of $61,300, well above the overall average salary in Sheridan. North Main Corridor Economic Development Strategy and Action Plan (2012) The North Main Corridor Economic Development Strategy and Action Plan (2012) details a strategy to attract investment and interest from private development along Sheridan’s North Main corridor. The strategy notes the Sheridan High-Tech Park as being a strength and opportunity for realizing economic development and will likely be the location for future job growth. The strategy notes that projects that help make this area attractive for business will help enhance the viability of North Main and the entire Sheridan economy. The strategy also highlights the need to develop the community’s assets to capitalize on the trend of people looking for quality of life factors when deciding where to locate a business. Communities should reorient their economic development strategies to attract an educated workforce by placing a priority on developing great schools, health care systems, downtowns, and parks rather than solely focusing on one large single source for jobs. The Sheridan High-Tech Park Conceptual Plan (2010) Sheridan took the recommendations of a study commissioned by the Wyoming Business Council and conducted by the Wadley-Donovan Group to develop a conceptual plan to lay the necessary groundwork for development of a business park in the North Main area of Sheridan. The Sheridan High-Tech Park Conceptual Plan (2010) outlines three main goals, one of which is to attract new High-Tech Businesses to Sheridan. Sheridan County Comprehensive Plan (2008) The Sheridan County Comprehensive Plan prioritizes supporting job expansion efforts and the promoting the recruitment of “good fit” industries. The goal of the Sheridan High-Tech Park Manufacturing Facility project is to make sure that Sheridan is prepared with all necessary requirements and recruitment tools for these “good fit” industries. The plan also strives to support and promote the retention and recruitment of industries that provide livable wages. Revised 3.17.17 31 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 2. Describe how the Plan addresses the targeted market(s)? Project Enterprise is a manufacturing company that fits within the description of a targeted industry for the various Sheridan area economic and community development plans. 3. Is there a list of current commercial and industrial vacancies available to prospective business? Yes No Explain. Many current commercial and industrial vacancies are listed on the Wyoming Business Council site and with local commercial realtors. SEEDA has shown various properties to business prospects in the past. The Project Enterprise facility requirements could not be met with any existing facility so the owners were shown developed sites for potential new construction. 4. How does the availability of the housing compare to the demand for housing should this project be successful? If necessary reference any applicable local housing statistics. There are currently 110 homes listed in the Sheridan market priced between $145,000 and $350,000. These homes are considered to be mid-range priced homes in the Sheridan market. The Sheridan housing market would be able to accommodate the job growth associated with this project. (Source: Sheridan County Board of Realtors) 5. Please describe previous grant/loan experience through the Wyoming Business Council Investment Ready Community Programs. SEEDA has been awarded two WBC grants: SEEDA Arts and Economy Study (2014) and SEEDA Target Industry Study (2013). The City of Sheridan (one of the SEEDA members) has received 12 Business Ready Community grants and 10 Community Development Block Grants from 2005 through 2016 for a total over $14 million in grants and $7 million in local match. Revised 3.17.17 32 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM SECTION VI: COMMITTED BUSINESS INFORMATION (For Business Committed, Managed Data Center Cost Reduction, and Senior Care/Child Care Applications ONLY) Business contact information: Withheld for confidentiality. Business Name: Project Enterprise Contact Person: Mailing Address: Phone: Fax: Email: NAICS: Complete the following job retention and creation table. Year One Job Creation Table June-December 2018 Position Type # of Jobs Retained (employees relocating to Wyoming) # of Jobs Created Average Wage- per hour Average Cost of Benefits Annual Net Wages (all jobs*wages *2080 hrs) Mgmt/Administrative 7 0 $66.05 $20,436 $1,104666 Technical/Professional 5 4 $29.63 $12,910 $670,883 Office/Clerical 1 5 $18.52 $8,503 $282,157 Sales 2 2 $19.75 $8,581 $198,644 Skilled Crafts 3 0 $19 $9,880 $148,200 Other 0 0 $0 $0 $0 TOTAL Year One 18 11 $2,404,550 Year Two Job Creation Table 2019 Position Type Original jobs retained & created Yr 1 New jobs created Yr 2 Average Wage- per hour Average Cost of Benefits Annual Net Wages (all jobs*wages *2080 hrs) Mgmt/Administrative 7 4 $60.97 $20,478 $1,620,259 Technical/Professional 9 2 $30.31 $15,312 $861,881 Office/Clerical 6 7 $18.13 $10,418 $625,708 Sales 4 0 $20.34 $9,009 $205,286 Skilled Crafts 3 17 $17.04 $10,489 $918,780 Other 0 7 $15.31 $11,260 $301,693 TOTAL Year Two 31 37 $4,533,607 Revised 3.17.17 33 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Year Three Job Creation Table 2020 Position Type Original jobs retained & created Yr 2 New jobs created Yr 3 Average Wage- per hour Average Cost of Benefits Annual Net Wages (all jobs*wages *2080 hrs) Mgmt/Administrative 11 0 $62.75 $21,309 $1,670,032 Technical/Professional 11 1 $31.24 $15,396 $964,236 Office/Clerical 13 1 $19.03 $10,397 $699,716 Sales 4 0 $20.94 $9,364 $211,633 Skilled Crafts 20 1 $17.66 $10,842 $999,236 Other 7 1 $15.44 $11,152 $346,140 TOTAL Year Three 68 4 $4,890,993 Year Four Job Creation Table 2021 Position Type Original jobs retained & created Yr 3 New jobs created Yr 4 Average Wage- per hour Average Cost of Benefits Annual Net Wages (all jobs*wages *2080 hrs) Mgmt/Administrative 11 0 $64.52 $22,141 $1,719,804 Technical/Professional 12 0 $32.13 $16,004 $993,910 Office/Clerical 14 0 $19.57 $10,817 $721,286 Sales 4 0 $21.53 $9,718 $217,981 Skilled Crafts 21 0 $18.16 $11,273 $1,030,116 Other 8 0 $15.88 $11,603 $357,022 TOTAL Year Four 72 0 $5,040,119 Year Five Job Creation Table 2022 Position Type Original jobs retained & created Yr 4 New jobs created Yr 5 Average Wage- per hour Average Cost of Benefits Annual Net Wages (all jobs*wages *2080 hrs) Mgmt/Administrative 11 0 $66.30 $22,972 $1,769,577 Technical/Professional 12 0 $33.01 $16,612 $1,023,271 Office/Clerical 14 0 $20.11 $11,237 $742,855 Sales 4 0 $22.12 $10,072 $224,328 Skilled Crafts 21 0 $18.66 $11,704 $1,060,995 Other 8 0 $16.31 $12,054 $367,903 TOTAL Year Five 72 0 $ $ $5,188,929 Revised 3.17.17 34 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM 15. What employee benefits are associated with the jobs to be created and/or retained because of this project? Project Enterprise is currently operating in another state and offers employees benefits that are the norm in that state and region. The company anticipates that they will modify their benefit plan slightly to fit the regional norm in Wyoming and still be competitive in the labor market. Current Employee Benefits: • Health coverage for full time employees (company pays 75% of premium), company has paid for dependents in the past but not certain about the norm in Wyoming. • 401K retirement plan available after 6 months of employment but not matching at this time (might consider matching if company is not paying for dependent health) • FSA available up to $2600/year • Dental/Vision supplemental offered and handled administratively but no employer contribution • Vacation accruals: rate depends on longevity of employee but starts at 2 weeks of vacation annually for full time employees (3.08/biweekly rate) • Sick accruals: 2.67/biweekly rate with maximum at 80 hours accrued. Basically about two weeks of sick per year. • Employee purchases- up to 2 company mainline products per year at cost + 5% after 1 year of service. Custom products = cost +10%, all non-mainline purchases are at cost. Industry pro partnerships for products at less than retail only for company employees. 16. How do the wage levels of the jobs to be created compare with County mean and median wages? Project Enterprise anticipates average wages in the range of $20 to $25 per hour. Median wages are $17.94/hour and mean wages in Sheridan County are $21.86/hour (Table 6). The company’s proposed wage range is a little higher than the mean and consistent with the mean. Table 8 All industries, Total all occupations (in) Sheridan County (March 2017)8 Occupation Occ. code Est. empl. Mean wage 10th pct 25th pct Median wage 75th pct 90th pct Total all occupations 00-0000 11,990 45,475 21.86 20,670 9.94 26,573 12.78 37,305 17.94 53,514 25.73 77,073 37.06 This range is consistent with the relevant production occupation wages in Sheridan County in all industries and with the occupations hired (more than 0.5% of the workforce) by this specific industry in a seven state region (Table 9). 8 http://doe.state.wy.us/LMI/LEWISMarch2017ECI/page0373.htm Revised 3.17.17 35 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Table 9 Wages by Represented Production Occupations Production Occupations – All Industries in Sheridan County Niche Manufacturing Staffing Pattern in Seven State Region (EMSI) Occupation Occ. code Est. empl. Mean wage Median wage Occ. code % of Workforce Median Hourly Wage First-Line Supervisors of Production and Operating Workers 51-1011 40 23.77 21.55 51-1011 First-Line Supervisors of Production and Operating Workers 3.9% $26.79 Assemblers and Fabricators 51-2000 40 16.56 16.5 51-2041 Structural Metal Fabricators and Fitters 1.2% $17.78 51-2092 Team Assemblers 7.8% $13.22 51-2099 Assemblers and Fabricators, All Other 1.6% $13.41 Metal Workers and Plastic Workers 51-4000 110 20.13 19.16 51-4011 Computer-Controlled Machine Tool Operators, Metal and Plastic 2.6% $17.26 51-4012 Computer Numerically Controlled Machine Tool Programmers, Metal and Plastic 0.6% $24.39 51-4031 Cutting, Punching, and Press Machine Setters, Operators, and Tenders, Metal and Plastic 2.7% $15.73 51-4032 Drilling and Boring Machine Tool Setters, Operators, and Tenders, Metal and Plastic 0.5% $15.32 51-4033 Grinding, Lapping, Polishing, and Buffing Machine Tool Setters, Operators, and Tenders, Metal and Plastic 1.9% $15.28 51-4034 Lathe and Turning Machine Tool Setters, Operators, and Tenders, Metal and Plastic 0.9% $18.66 Machinists 51-4041 30 21.08 21.99 51-4041 Machinists 5.3% $21.02 Revised 3.17.17 36 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Production Occupations – All Industries in Sheridan County Niche Manufacturing Staffing Pattern in Seven State Region (EMSI) Occupation Occ. code Est. empl. Mean wage Median wage Occ. code % of Workforce Median Hourly Wage 51-4072 Molding, Coremaking, and Casting Machine Setters, Operators, and Tenders, Metal and Plastic 1.0% $13.54 51-4081 Multiple Machine Tool Setters, Operators, and Tenders, Metal and Plastic 1.5% $15.05 Welders, Cutters, Solderers, and Brazers 51-4121 70 19.89 18.58 51-4121 Welders, Cutters, Solderers, and Brazers 7.1% $19.32 51-4122 Welding, Soldering, and Brazing Machine Setters, Operators, and Tenders 0.7% $17.14 Other Production Occupations 51-9000 60 16.79 15.22 51-9111 Packaging and Filling Machine Operators and Tenders 0.5% $13.97 51-9121 Coating, Painting, and Spraying Machine Setters, Operators, and Tenders 1.0% $15.17 51-9198 Helpers--Production Workers 1.0% $12.46 51-9199 Production Workers, All Other 0.9% $15.18 Inspectors, Testers, Sorters, Samplers, and Weighers 51-9061 10 51-9061 Inspectors, Testers, Sorters, Samplers, and Weighers 3.2% $18.07 Source: http://doe.state.wy.us/lmi/LEWISSept2016ECI/page0416.htm Source: EMSI Analyst Report, Staffing Pattern in Seven States: Montana, Wyoming, Idaho, Utah, Nevada, Arizona, Colorado Revised 3.17.17 37 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM SECTION VIII: BUDGET INFORMATION PROJECT BUDGET - The project budget pages need to show how all eligible costs will be covered by both cash and in-kind contributions. Construction costs represented here must be supported by estimates from a qualified engineer or architect. A clear budget statement of the source of all funds needed to complete the project. (This includes total eligible project costs and other ineligible project costs.) Part A: Eligible Project Costs Eligible Project Costs 1. Land, structures, rights-of-way, appraisals, etc. 1,960,000 2. Architectural and engineering fees 795,940 3. Other (surveys, tests, etc.) 102,592 4. Project inspection fees 0 5. Site work 450,000 6. Demolition and removal 0 7. Construction 0 a. Electrical Systems (*) 1,630,476 b. Mechanical, Plumbing, HVAC Systems (*) 2,699,496 c. Landscaping (*) 150,000 d. Foundation and/or Structural Framing System (*) 4,129,164 e. Interior Finishes (*) 487,164 f. Fire Protection (*) 452,910 g. Remediation (*) 0 h. Other (*) – please specify - GC General Conditions 799,937 8. Miscellaneous/Other 43,197 (Please explain in detail on additional page(s) - Commissioning 9. Subtotal (sum of lines 1 through 8) 13,701,076 10. Contingencies 1,174,088 Total Eligible Project Costs 11. Total Eligible Project Costs Use this amount for Part B, Number 1 and as the Total Eligible Project Costs as listed on the cover sheet. 14,875,164 (*) = Required for projects involving the construction of a new or existing building Revised 3.17.17 38 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Part B: Funding Sources 1. Total Eligible Project Cost This amount will be the same as Part A, Number 11 and will be reflected on the Cover Sheet as the Total Project Cost. $14,875,164 1a 2. Local Match a. Cash Match. List cash match funding source(s) and amount. Identify whether the amount has been provided or is being requested. Provide the status and the date funds were approved or the date that funds are expected to be approved. Cash Match Source Status (approved or pending) Date of Approval Cash Amount SEEDA Pending 10/27/2017 322,874 Total Cash Match 322,874 2a b. In-kind Match. List in-kind contribution types, descriptions, sources and values. These amounts should also be reflected in Part A: Project Costs. Attach Statements of Intent. Description Source Value Example: Road Grading City Employee 40 hrs @ $15/hr = $600 Lot 1 - Sheridan High-Tech Park SEEDA 1,960,200 Total In-kind Match 1,960,200 2b c. Total Local Match (Sum 2a and 2b) 2,283,074 2c 3. Match Percentage (2c divided by 1) 15% Category 1 Applicants: Business Committed/Community Readiness match of 10% of Total Project Cost. Half the match must be cash. Community Enhancement match of 25%. Half of match must be cash. 4. Business Ready Community (BRC) Request (Subtract 1 - 2c) This is the amount of money you need to complete the project. $12,592,090 Revised 3.17.17 39 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Part C: Verification of Project Cost A qualified engineer’s or architect’s verified cost estimate is required. Grants and loans will be made only to applicants who demonstrate that upon receipt of the grant and/or loan all project costs will be funded. If the project involves the purchase of property with requested grant funds, the applicant must provide a professional appraisal of the property. If property is being used as an in-kind match, the value may be determined by a market analysis prepared by a licensed realtor. See Tab 2 in Grant Application. Part D: Ineligible Costs Ineligible project costs include fixtures, appliances, equipment or other features of a facility not physically attached. 1. Ineligible Project Costs (if applicable) Ineligible Items Amount The Committed Business will provide all fixtures, appliances, equipment and other features of the facility not physically attached. $Unknown Included in Project $0 TOTAL Ineligible project costs $0 2.. Local Contribution Toward Ineligible Project Costs (if applicable) Source of Funding Amount SEEDA $0 Committed Business – Project Enterprise $Unknown TOTAL Source of Funding for Ineligible Project Costs $Unknown Part E: Total Budget Total Eligible Project Costs $14,875,164 Total Ineligible Project Costs $0 Total Budget $14,875,164 Revised 3.17.17 40 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM SECTION VII: BUDGET INFORMATION – Managed Data Center Only NA for this application Revised 3.17.17 41 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM SECTION IX: REVENUE RECAPTURE PLAN (if applicable) The intent of the revenue recapture plan is to ensure a portion of BRC funding allocated to a project will continue to remain in the community fostering community and economic development activities. The following are some examples of eligible uses for recaptured funds: revolving loan fund, façade improvements, downtown development, beautification, marketing, matching funds for future grants and loans, public infrastructure improvements encouraging economic development, trainings and seminars, economic development studies and plans, and entrepreneurship initiatives. Revenue generated by the applicant or a private developer through publicly funded infrastructure projects must be recaptured by the applicant at a rate negotiated between the applicant and other partners and commensurate with the public investment. A minimum of twenty-five percent (25%) of net revenue generated must be reimbursed to the BRC fund up to the original grant amount of the project. Revenue recapture requirements may be satisfied by repayment of a BRC loan or via revenue recapture payments unless otherwise prohibited by governmental rules or regulations. • All funds recaptured at the local level shall be placed in a segregated economic development account. • No more than fifty percent (50%) of local recaptured may be used for operational expenses of an economic development organization/division if matched dollar-for-dollar by local funds. • Revenue recapture must be repaid to the BRC fund annually or per a schedule agreeable to Wyoming Business Council staff. A plan must be designed to: • Project and identify the revenue streams from the project; • Account for the 25% WBC reimbursement; • Prioritize economic development initiatives to be paid for with the revenue while allowing the community flexibility to respond to opportunities; • Specifically discuss how the recaptured fund will be utilized; • Discuss how these recaptured funds will be managed; • Include an accounting of existing revenue recapture funds in the community, if applicable, (whether with the city, town, county or JPB), explain how those funds are being used, if they are used to fund this project, and if not, why; • The Revenue Recapture Plan must be signed and dated by the Chief Elected Official. The Revenue Recapture Plan is included in Tab 12. A signed copy will be submitted following the SEEDA meeting on October 31, 2017. Revised 3.17.17 42 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM The Sheridan Economic and Educational Development Authority (SEEDA) will enter into a twenty-year lease with Project Enterprise under which Project Enterprise will lease the manufacturing facility on Lot 1 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% 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% of the recaptured funds and remit the remaining funds to the Wyoming Business Council (WBC). Anticipated revenue from lease payments SEEDA anticipates leasing the facility to Project Enterprise on a twenty-year triple net lease with an option for Project Enterprise to purchase the building and land after year 5 and before year 20. The following schedule for lease payments and rates will begin with Project Enterprise’s occupancy of any portion of the facility. • Year 1: $0/square foot, triple net. • Year 2: $0/square foot, triple net. • Year 3: $0/square foot, triple net. • Year 4: $0/square foot, triple net. • Years 5-6: $0.50/square foot, triple net. • Year 7: $0.75/square foot, triple net. • Years 8-10: $1.50/square foot, triple net. • Years 11-20: $3.00/square foot, triple net. Triple net is defined as a lease in which a tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three “nets”) on the property in addition to any normal fees that are expected under the agreement (rent, utilities, etc.). After year 5 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 (BRC) grant amount less its accumulated lease payments at the time the option is exercised. Three scenarios with purchase by Project Enterprise at the end of years 5, 10 and 19 are shown in Table 8. All three scenarios recapture the full BRC grant amount. SEEDA will remit 50% of lease payments less actual SEEDA expenses to manage the asset to the Wyoming Business Council on a quarterly basis. Remittance on proceeds on a sale of the property will be remitted to the Wyoming Business Council within 60 days. Revised 3.17.17 43 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Table 10 Recapture Scenarios Facility Size 100,000 square feet Scenario One Scenario Two Scenario Three BRC Grant Amount $12,592,090 Facility sold at end of year 5 Facility sold at end of year 10 Facility sold at end of year 19 Year Lease Rate/sf Annual Lease Payments Cumulative Lease Payments (end of year) Purchase Price (end of year) Recaptured (100%) Remitted to WBC (50% less SEEDA expenses) Recaptured (100%) Remitted to WBC (50% less SEEDA expenses) Recaptured (100%) Remitted to WBC (50% less SEEDA expenses) 1 $0 $0 $0 NA $0 $0 $0 $0 $0 $0 2 $0 $0 $0 NA $0 $0 $0 $0 $0 $0 3 $0 $0 $0 NA $0 $0 $0 $0 $0 $0 4 $0 $0 $0 NA $0 $0 $0 $0 $0 $0 5 $0.50 $50,000 $50,000 $12,542,090 $50,000 $25,000 $50,000 $25,000 $50,000 $25,000 6 $0.50 $50,000 $100,000 $12,492,090 $12,542,090 $6,271,045 $50,000 $25,000 $50,000 $25,000 7 $0.75 $75,000 $175,000 $12,417,090 $75,000 $37,500 $75,000 $37,500 8 $1.50 $150,000 $325,000 $12,267,090 $150,000 $75,000 $150,000 $75,000 9 $1.50 $150,000 $475,000 $12,117,090 $150,000 $75,000 $150,000 $75,000 10 $1.50 $150,000 $625,000 $11,967,090 $150,000 $75,000 $150,000 $75,000 11 $3.00 $300,000 $925,000 $11,667,090 $11,967,090 $5,983,545 $300,000 $150,000 12 $3.00 $300,000 $1,225,000 $11,367,090 $300,000 $150,000 13 $3.00 $300,000 $1,525,000 $11,067,090 $300,000 $150,000 14 $3.00 $300,000 $1,825,000 $10,767,090 $300,000 $150,000 15 $3.00 $300,000 $2,125,000 $10,467,090 $300,000 $150,000 16 $3.00 $300,000 $2,425,000 $10,167,090 $300,000 $150,000 17 $3.00 $300,000 $2,725,000 $9,867,090 $300,000 $150,000 18 $3.00 $300,000 $3,025,000 $9,567,090 $300,000 $150,000 19 $3.00 $300,000 $3,325,000 $9,267,090 $300,000 $150,000 20 $3.00 $300,000 $3,625,000 $8,967,090 $9,267,090 $4,633,545 Totals $12,592,090 $6,296,045 $12,592,090 $6,296,045 $12,592,090 $6,296,045 Revised 3.17.17 44 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Expenses related to the project SEEDA will pay expenses related to the project and not covered by the tenant and withhold those expenses from future remittances to the Wyoming Business Council. SEEDA will use its cash reserves to cash flow any expenses that occur prior to the Project Enterprise generating revenue from lease payments or sale of assets. Expenses may include but are not limited to major maintenance not included in the triple net lease, inspections, owner’s insurance, and legal fees related to the management, lease and sale of the property. Specifically, in the lease agreement SEEDA commits that it “shall keep, maintain, repair and replace as necessary or appropriate the foundations, roof, and structural portions of THE BUILDING in good operating condition and in compliance with all requirements of applicable governmental authorities.” Economic Development Activities Supported by SEEDA Recapture SEEDA will retain 50% of the revenue recaptured from this project and use those funds for the following economic development purposes: • 25% of recaptured funds to be set aside as project funds for SEEDA initiatives for development of capital projects, workforce training or job creation initiatives in Sheridan County; for the purposes of economic and educational development of the Sheridan Community. This includes further development of workforce related educational training opportunities, and helping catalyze economic activity in identified target industries. • 25% of recaptured funds to be committed toward the further development and maintenance of project ready property in the Sheridan High-Tech Park or other locations identified by the SEEDA board. • 50% to be held in reserve for other business recruitment and retention efforts identified by the SEEDA board. Management of Funds SEEDA, and its member entities, have many years of experience administering grant and loan funding. In accordance with SEEFA by-laws and in keeping with the activities listed above, SEEDA will be responsible for the management and utilization of recaptured funds. Revised 3.17.17 45 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM SECTION X: PERFORMANCE MEASURES The performance measures focus on solid, measurable actions related to the project. Examples of indicators may be the amount of money leveraged (from other public or private sources), number of self-sufficient jobs created, number of business-ready lots created, etc. Complete the chart below for each Measure that apply to this project. Return on Investment and Additional Performance Measure “Quantity” should be in the following format: o a number, o percentage, or o currency as noted on each measure. Project Infrastructure “Quantity” should be in the following format: o number of acres, o building construction/renovation in “square-feet”, o water and/or sewer line in “linear/lineal-feet”, o and roads in “feet” and/or mile(s) as applicable. EXAMPLE OF PERFORMANCE MEASURES: Quantity 1 4.03% 252,026$ Revenue Recapture 830,670$ 14.07$ 21.00$ 50 25 $1,000,000 5.62 15,000 sf 0 0 0 1,500 ft Project Infrastructure Acres Developed Road Connector road to entrance of site New Building Construction Existing Building Construction Water Sewer Jobs to be Created (3 Year Projection) Jobs to be Retained Additional Investment Equipment and furnishings 10 year term, 2% interest 25% of building sale (estimated) County Median Wage Median Wage of Jobs Created Performance Measures Measure Notes Businesses Assisted Acme Manufacturing Return on Investment Loan Repayment City of ABC - Acme Manufacturing Revised 3.17.17 46 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Performance Measure Chart Project Enterprise Return on Investment Performance Measures Measure Quantity Notes Return on Investment (%) Determined by Regional Director Job Creation (Years 1-5) (70) Full Time Equivalents Median Wage of Jobs Created ($20/hr) Company job creation table indicates a higher average wage by year 5. County Median Wage ($17.94/hr) Jobs to be Retained (0) Estimated Cap Ex (Year 1) ($) Refer to business plan Estimated Cap Ex (Year 2) ($) Refer to business plan Estimated Cap Ex (Year 3) ($) Refer to business plan Estimated Cap Ex (Year 4) ($) Refer to business plan Estimated Cap Ex (Year 5) ($) Refer to business plan Year 0 Payroll ($2,404,550) 2018 – Office open – 6 mos Estimated Payroll Increase (Year 1) (+89%) Manufacturing open Estimated Payroll Increase (Year 2) (+8%) 2020 Estimated Payroll Increase (Year 3) (+3%) 2021 Estimated Payroll Increase (Year 4) (+3%) 2022 Estimated Payroll Increase (Year 5) (%) Estimated Taxable Sales (Year 1) ($) Refer to business plan Estimated Taxable Sales (Year 2) ($) Refer to business plan Estimated Taxable Sales (Year 3) ($) Refer to business plan Estimated Taxable Sales (Year 4) ($) Refer to business plan Estimated Taxable Sales (Year 5) ($) Refer to business plan Additional Performance Measures Businesses Assisted (1) Project Enterprise Loan Repayment ($0) No loan Revenue Recapture ($12,592,090) Equal to WBC grant Additional Investment ($1,960,200) Local cash & in-kind match Project Infrastructure Acres Developed (#) New Building Construction (90,000) SQFT (100,000 planned) Existing Building Construction (0) SQFT Water (0) LF Sewer (0) LF Road (0) LF Revised 3.17.17 47 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Sections XI, XII, and XIII omitted from this application as they do not apply. SECTION XI: ADDITIONAL INFORMATION FOR LOAN REQUESTS SECTION XII: CHILD CARE PROJECTS SECTION XIII: SENIOR CARE PROJECTS Revised 3.17.17 48 BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM APPLICATION CHECKLIST The Application Checklist will be utilized by the Regional Director to assess the completeness of an application. Applicants are encouraged to make a copy of the Application Checklist for their personal use while completing an application. Business Plan. – Was submitted to Wyoming Business Council under separate cover. Complete Application. All questions must be fully answered and all required documentation included. Incomplete applications will either be tabled or sent back to the applicant for resubmittal at a different time. Signed Cover Sheet will be sent after Oct. 31, 2017 SEEDA meeting. Secured Local Match. See the chart on page ii for the required match amounts. In-kind match must meet the criteria for eligible project costs. Examples of in-kind contributions include: infrastructure, labor, materials, and real estate. Attach an explanation of valuation for each item and any supporting documentation (i.e., appraisals, wage rates, market value, etc.) Will be approved at the SEEDA meeting on October 31, 2017 Statements of Intent from each donor. Will be approved at the SEEDA meeting on October 31, 2017. Economic Impact Study (RPASS) or equivalent impact study. See Regional Director. Applicant used EMSI – WBC will run RPAS model. NA Financial Information for Loans. For applicants requesting BRC loans, additional financial information is required. (See Section XI of the application.) Attach verification of project costs. Appraisal, engineer/architect’s estimates, etc. NA Verified Structural Analysis. Appraisals, if applicable – Updated Market Analysis on 9 acres provided. Public hearing notice, public hearing minutes, and any additional public engagement processes. Will send after the meetings on October 31, November 16 and 20. Resolution(s) of Support and minutes. Will send after the meetings on October 31, November 16 and 20. Certifications, if applicable. (Joint Powers Board) Site information. Zoning documentation. Two (2) Digital photographs. (jpg, preferable) Statement that the Applicant will Follow State Procurement Standards Inclusive of W.S. § 15-1-113 and W.S. § 16-6-101, et seq. Will be approved at the SEEDA meeting on October 31, 2017. Revised 3.17.17 i BRC Application Project Enterprise Applicant: SEEDA BUSINESS READY COMMUNITY GRANT AND LOAN PROGRAM Acknowledgement that the Wyoming Preference Act (Wyoming State Statute § 16-6- 201 through 16-6-206) will be adhered to throughout the project. Will be approved at the SEEDA meeting on October 31, 2017. Statement that the Applicant will list facility/land on www.wyomingsites.com Will be approved at the SEEDA meeting on October 31, 2017. Workforce recruitment and/or training program, if applicable. (In grant application) Community and Economic Development Goals. Relevant portions of plans only. NA WYDOT Letter of Acknowledgement, if applicable. The project will take place in a public right of way. Contingency/Development Agreement, if applicable. (final draft). Attach a Lease Agreement, if applicable (final draft). Attach an Operation and Maintenance Plan, if applicable (final draft). NA Enhancement Projects only. Priority listing. Revenue Recapture Plan, if applicable. (Final draft or executed copy only). Section X. Table of existing revenue recapture. Will be approved at the SEEDA meeting on October 31, 2017. NA Loan Documentation. NA Child Care projects only. Address all the items in Section XII of the application. NA Senior Care projects only. Address all the items in Section XIII of the application. NA Projects w/ Private Developer. Explanation of need for public assistance. NA Managed Data Center Cost Reduction Projects. Section IX. a. Evidence for the support of a Tier II, Tier III or Tier IV data center. b. Attach eligible projected utility costs. _____________________________________________ _______________ Regional Director Signature Date Revised 3.17.17 ii BRC Application Project Enterprise Applicant: SEEDA