City Council Minutes 2012 11 05 - Laserfiche WebLink

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City Council Meeting Minutes November 5, 2012 Page 4 of 14 Sierra Nevada Corporation is considering this expansion in Louisville due to the growth of space and satellite programs. The company is expecting to increase their Louisville employment from 125 to 204, an increase of 79 jobs. These positions are mostly engineering positions and have an average payroll of$120,000 per year. The building is approximately 50,000 square feet and Sierra Nevada plans to make core and shell and tenant improvements totaling $2.2 million The assistance would be funded by permit fees and construction use tax from the tenant finish of the existing space. It is estimated Sierra Nevada will generate new revenue of approximately $69,000 from building permit fees and construction use taxes directly to the City in the first year of operation. Given an investment of$2.2 million of core and shell and tenant finish costs staff recommended the following assistance: Proposed Assistance Approximate Value - Building Permit-Fee Rebate - 50% rebate on permit fees for tenant finish $11,000 (Excludes tap fees). Building Use Tax Rebate: 50% rebate on Building Use Tax for core, shell and tenant finish (excludes 0.375 % Open Space tax and 0.125% Historic Preservation tax) $17,000.The Total Proposed Assistance $28,000. APPLICANT PRESENTATION Fred Rost, Director of Business Operations for the Sierra Nevada Space Operations in Louisville, stated they currently have 300 employees at their 92,000 SF Louisville facility, where they build technology for spacecrafts, in both satellites and manned space vehicles. They are also building the Dream Chaser manned space vehicle as part of NASA's Commercial Crew Integrated Capability (CCiCap) initiative contract and are expanding their facility and staff to accommodate those projects. They are adding 80 additional employees for the NASA project alone. The additional 50,000 SF new facility will meet their needs until 2014. Their current facility will house their operations and their laboratories; simulator and the additional engineer staff will move to the new facility. The building has the ability to add an additional 50,000 SF for their next phase of operations. COUNCIL COMMENTS Council member Jasiak congratulated the Sierra Nevada Corporation for being awarded a NASA contract. MOTION: Council member Loo moved to approve Resolution No. 67, Series 2012, seconded by Council member Keany. Roll call vote was taken. The motion carried by a vote of 7-0. DISCUSSION/DIRECTION — REQUEST FOR PROPOSALS FOR THE HISTORIC GRAIN ELEVATOR REDEVELOPMENT