[Vision2020] AHA returns? Alturas update

bill london london@moscow.com
Thu, 11 Dec 2003 16:45:25 -0800


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Gary Riedner (city supervisor) sent this Moscow city report for me to 
forward to V2020.  I thank him for proactively seeking public input in 
that way.

The report (below) involves a public hearing to be conducted on 12/18.  
The purpose of the hearing is to put together an incentive package that 
would bring Advanced Hardware Architectures back to Moscow.  AHA left 
Moscow about 10 years ago (for Pullman) and triggered the creation of 
Alturas Park.....

Now, the city is hoping to lure AHA back to Alturas.
BL


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AGENDA ITEM TITLE:  Rural Community Block Grant Proposal

 

DESCRIPTION:  Advanced Hardware Architectures is a computer hardware 
firm which traces its beginnings to the North Idaho Business Incubator 
on the University of Idaho campus. AHA grew beyond the capacity of the 
incubator and sought space within Moscow in the early 1990's. There was 
no acceptable space available and AHA relocated to the business park 
operated by the Port of Whitman County north of Pullman. Since then, AHA 
has been acquired by Comtech, a multi-national firm and is being 
operated as a wholly-owned subsidiary. AHA would like to relocate to 
Moscow and is in search of acceptable space. Current buildings in 
Alturas Technology Park are not acceptable and rents are too high to be 
attractive, especially with the current tax structure in place in Idaho.

 

In early 2003, AHA decided to relocate from its current location to one 
of the following: a build-to-suit in the Whitman Port Research Park or 
Moscow.  AHA has been working with the Latah Economic Development 
Council to determine which location would be financially feasible.  
After reviewing costs, AHA determined that moving to Idaho would cost 
the company an additional $370,000 per year.  After reviewing AHA 
figures with the Idaho Department of Commerce and the Idaho Tax 
Commission, the LEDC has brought the cost down to $50,000 per year.  The 
major difference in cost is the Port of Whitman - with subsidies - can 
offer a rental rate of $.80 per square foot triple net.  After careful 
analysis, the LEDC determined that with a $500,000 grant it could 
partner with the Clearwater Economic Development Council (CEDA) to 
purchase property, design and build a structure for AHA and lease it at 
the target $.80 per square foot, which will close the financial gap.  
AHA requires a 13,000 square foot building.  The building will consist 
of four (4) offices of 200 square feet each; two (2) conference rooms at 
400 square feet each; and a semiconductor testing lab of 600-800 square 
feet.  The balance of the space of open area would be divided by partitions.

           

The recruitment of AHA will transfer 18 jobs at an average salary of 
$68,000 per year; increase Idaho taxes in the amount of $45,000 per 
year; local property taxes in the amount of $18,000 per year.  AHA has 
plans to hire an additional 5 workers in the next five (5) years.  
Constructing a building site for AHA in Alturas Technology Park will 
also increase revenues in the tax allocation area for the Urban Renewal 
Agency.

 

CEDA has prepared a Rural Community Block Grant application to the Idaho 
Department of Commerce, requesting $500,000 to assist in the design, 
development and construction of a building within the current Phase of 
the Alturas Technology Park. The entire cost of the building is 
approximately $1,300,000 and the balance will be paid by means of a 
commercial loan. CEDA and LEDC have requested City sponsorship of the 
RCBG application. The RCBG funds are state funds and are separate and 
distinct from the public infrastructure CDBG and downtown CDBG 
applications which are currently being sought from the Department of 
Commerce. If construction costs exceed the original anticipated 
expenditures, revenues from the lease structure will finance a 
contingency of 15%.

City responsibilities would include agreements with CEDA and AHA 
regarding assurances of job creation and administration of the block 
grant, if CEDA is selected as grant administrator pursuant to RFP process.

The deadline for the current granting cycle is December 21, 2003. Time 
is short but presents an opportunity to make the current grant cycle. 
CEDA, LEDC and City staff are working together to prepare materials for 
the application. Staff has scheduled a public hearing for the grant 
application at a special Council meeting on December 18, 2003.

STAFF RECOMMENDATION: Recommend authorization of sponsorship of the 
Rural Community Block Grant application to be administered by the 
Clearwater Economic Development Association. Conduct public hearing on 
application on December 18, 2003.

ACTION TO BE TAKEN:  Recommend authorization of sponsorship of the Rural 
Community Block Grant application to be administered by the Clearwater 
Economic Development Association. Conduct public hearing on application 
on December 18, 2003.

SUPPORTING MEMO/DOCUMENTATION:  To be provided at Committee.

NECESSARY RESOURCES/IMPACTS: 

            A:  Fiscal: Approximately $2,000         

B:  Personnel: Administration, Community Development, Public Works 
personnel. Estimates of time are not available at this time, but are 
anticipated to be reasonable in light of the fact that administration of 
the grant will be conducted by CEDA if CEDA is selected as grant 
administrator pursuant to RFP process.

            C:  Other: None


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Gary Riedner (city supervisor) sent this Moscow city report for me to
forward to V2020.&nbsp; I thank him for proactively seeking public input in
that way.<br>
<br>
The report (below) involves a public hearing to be conducted on 12/18.&nbsp;
The purpose of the hearing is to put together an incentive package that
would bring Advanced Hardware Architectures back to Moscow.&nbsp; AHA left
Moscow about 10 years ago (for Pullman) and triggered the creation of
Alturas Park.....<br>
<br>
Now, the city is hoping to lure AHA back to Alturas.<br>
BL<br>
<br>
<br>
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<p class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;"><b
 style="">AGENDA ITEM TITLE:<span style="">&nbsp; </span>Rural Community
Block Grant Proposal<o:p></o:p></b></p>
<p class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;"><b
 style=""><o:p>&nbsp;</o:p></b></p>
<p class="MsoNormal" style="text-align: justify;"><b style="">DESCRIPTION:</b><span
 style="">&nbsp; </span>Advanced Hardware Architectures is a computer
hardware firm which traces its beginnings to the North Idaho Business
Incubator
on the <st1:place><st1:PlaceType>University</st1:PlaceType> of <st1:PlaceName>Idaho</st1:PlaceName></st1:place>
campus. AHA grew beyond the capacity of the incubator and sought space
within <st1:City><st1:place>Moscow</st1:place></st1:City>
in the early 1990&#8217;s. There was no acceptable space available and AHA
relocated
to the business park operated by the Port of Whitman County north of <st1:City><st1:place>Pullman</st1:place></st1:City>.
Since then, AHA has been acquired by Comtech, a multi-national firm and
is
being operated as a wholly-owned subsidiary. AHA would like to relocate
to <st1:City><st1:place>Moscow</st1:place></st1:City>
and is in search of acceptable space. Current buildings in <st1:place><st1:PlaceName>Alturas</st1:PlaceName>
<st1:PlaceName>Technology</st1:PlaceName> <st1:PlaceType>Park</st1:PlaceType></st1:place>
are not acceptable and rents are too high to be attractive, especially
with the
current tax structure in place in <st1:State><st1:place>Idaho</st1:place></st1:State>.</p>
<p class="MsoNormal" style="text-align: justify;"><o:p>&nbsp;</o:p></p>
<p class="MsoNormal" style="text-align: justify;"><span
 style="font-size: 12pt;">In early 2003, AHA decided
to relocate from its current location to one of the following: a
build-to-suit
in the </span><st1:place><st1:PlaceName><span style="font-size: 12pt;">Whitman</span></st1:PlaceName><span
 style="font-size: 12pt;"> </span><st1:PlaceType><span
 style="font-size: 12pt;">Port</span></st1:PlaceType><span
 style="font-size: 12pt;"> </span><st1:PlaceName><span
 style="font-size: 12pt;">Research</span></st1:PlaceName><span
 style="font-size: 12pt;"> </span><st1:PlaceType><span
 style="font-size: 12pt;">Park</span></st1:PlaceType></st1:place><span
 style="font-size: 12pt;"> or </span><st1:City><st1:place><span
 style="font-size: 12pt;">Moscow</span></st1:place></st1:City><span
 style="font-size: 12pt;">.<span style="">&nbsp; </span>AHA has been
working with the Latah Economic Development Council to determine which
location
would be financially feasible.<span style="">&nbsp; </span>After
reviewing costs, AHA determined that moving to </span><st1:State><st1:place><span
 style="font-size: 12pt;">Idaho</span></st1:place></st1:State><span
 style="font-size: 12pt;"> would cost the company an additional
$370,000 per
year.<span style="">&nbsp; </span>After reviewing AHA figures with
the Idaho Department of Commerce and the Idaho Tax Commission, the LEDC
has
brought the cost down to $50,000 per year.<span style="">&nbsp;
</span>The major difference in cost is the </span><st1:place><st1:PlaceType><span
 style="font-size: 12pt;">Port</span></st1:PlaceType><span
 style="font-size: 12pt;"> of </span><st1:PlaceName><span
 style="font-size: 12pt;">Whitman</span></st1:PlaceName></st1:place><span
 style="font-size: 12pt;"> - with subsidies - can offer a rental rate
of $.80
per square foot triple net.<span style="">&nbsp; </span>After
careful analysis, the LEDC determined that with a $500,000 grant it
could
partner with the Clearwater Economic Development Council (CEDA) to
purchase
property, design and build a structure for AHA and lease it at the
target $.80
per square foot, which will close the financial gap.<span style="">&nbsp; </span>AHA
requires a 13,000 square foot
building.<span style="">&nbsp; </span>The building will consist of
four (4) offices of 200 square feet each; two (2) conference rooms at
400
square feet each; and a semiconductor testing lab of 600-800 square
feet.<span style="">&nbsp; </span>The balance of the space of open area
would
be divided by partitions.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span
 style="font-size: 12pt;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span
 style="font-size: 12pt;">The recruitment of AHA will
transfer 18 jobs at an average salary of $68,000 per year; increase </span><st1:State><st1:place><span
 style="font-size: 12pt;">Idaho</span></st1:place></st1:State><span
 style="font-size: 12pt;"> taxes in the amount of $45,000 per year;
local
property taxes in the amount of $18,000 per year.<span style="">&nbsp; </span>AHA
has plans to hire an additional 5 workers
in the next five (5) years.<span style="">&nbsp; </span>Constructing
a building site for AHA in </span><st1:place><st1:PlaceName><span
 style="font-size: 12pt;">Alturas</span></st1:PlaceName><span
 style="font-size: 12pt;"> </span><st1:PlaceName><span
 style="font-size: 12pt;">Technology</span></st1:PlaceName><span
 style="font-size: 12pt;"> </span><st1:PlaceType><span
 style="font-size: 12pt;">Park</span></st1:PlaceType></st1:place><span
 style="font-size: 12pt;"> will also increase revenues in the tax
allocation
area for the Urban Renewal Agency. <o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span
 style="font-size: 12pt;"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;">CEDA
has
prepared a Rural Community Block Grant application to the Idaho
Department of
Commerce, requesting $500,000 to assist in the design, development and
construction of a building within the current Phase of the <st1:place><st1:PlaceName>Alturas</st1:PlaceName>
<st1:PlaceName>Technology</st1:PlaceName> <st1:PlaceType>Park</st1:PlaceType></st1:place>.
The entire cost of the building is approximately $1,300,000 and the
balance
will be paid by means of a commercial loan. CEDA and LEDC have
requested City
sponsorship of the RCBG application. The RCBG funds are state funds and
are
separate and distinct from the public infrastructure CDBG and downtown
CDBG
applications which are currently being sought from the Department of
Commerce.
If construction costs exceed the original anticipated expenditures,
revenues
from the lease structure will finance a contingency of 15%.</p>
<p class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;">City
responsibilities would include agreements with CEDA and AHA regarding
assurances of job creation and administration of the block grant, if
CEDA is
selected as grant administrator pursuant to RFP process.</p>
<p class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;">The
deadline
for the current granting cycle is <st1:date year="2003" day="21"
 month="12">December 21, 2003</st1:date>. Time is short but presents an
opportunity to make the
current grant cycle. CEDA, LEDC and City staff are working together to
prepare
materials for the application. Staff has scheduled a public hearing for
the
grant application at a special Council meeting on <st1:date year="2003"
 day="18" month="12">December 18, 2003</st1:date>. </p>
<p class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;"><b
 style="">STAFF RECOMMENDATION:</b> Recommend
authorization of sponsorship of the Rural Community Block Grant
application to
be administered by the Clearwater Economic Development Association.
Conduct
public hearing on application on <st1:date year="2003" day="18"
 month="12">December 18, 2003</st1:date>.</p>
<p class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;"><b
 style="">ACTION TO BE TAKEN:</b><span style="">&nbsp; </span>Recommend
authorization of sponsorship of the
Rural Community Block Grant application to be administered by the
Clearwater
Economic Development Association. Conduct public hearing on application
on <st1:date year="2003" day="18" month="12">December 18, 2003</st1:date>.</p>
<p class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;"><b
 style="">SUPPORTING MEMO/DOCUMENTATION:</b><span style="">&nbsp; </span>To
be provided at Committee.</p>
<p class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;"><b
 style="">NECESSARY RESOURCES/IMPACTS</b>:<span style="">&nbsp; </span></p>
<p class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;"><span
 style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><b style="">A:<span style="">&nbsp; </span>Fiscal:
</b><span style="">Approximately $2,000</span><b style=""><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span><o:p></o:p></b></p>
<p class="MsoNormal"
 style="margin: 0in 0in 6pt 0.5in; text-align: justify;"><b style="">B:<span
 style="">&nbsp; </span>Personnel: </b><span style="">Administration,
Community Development, Public Works personnel. Estimates
of time are not available at this time, but are anticipated to be
reasonable in
light of the fact that administration of the grant will be conducted by
CEDA </span>if
CEDA is selected as grant administrator pursuant to RFP process.</p>
<b style=""><span
 style="font-size: 11pt; font-family: &quot;Times New Roman&quot;;"><span style="">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span>C:<span style="">&nbsp; </span>Other: </span></b><span
 style="font-size: 11pt; font-family: &quot;Times New Roman&quot;;">None</span><br>
<br>
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