[Vision2020] AHA returns? Alturas update
bill london
london@moscow.com
Thu, 11 Dec 2003 16:45:25 -0800
This is a multi-part message in MIME format.
--------------060307050903090100010509
Content-Type: text/plain; charset=us-ascii; format=flowed
Content-Transfer-Encoding: 7bit
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
----
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
--------------060307050903090100010509
Content-Type: text/html; charset=us-ascii
Content-Transfer-Encoding: 7bit
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
<html>
<head>
<meta http-equiv="Content-Type" content="text/html;charset=ISO-8859-1">
<title></title>
</head>
<body text="#000000" bgcolor="#ffffff">
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.<br>
<br>
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.....<br>
<br>
Now, the city is hoping to lure AHA back to Alturas.<br>
BL<br>
<br>
<br>
----<br>
<p class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;"><b
style="">AGENDA ITEM TITLE:<span style=""> </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> </o:p></b></p>
<p class="MsoNormal" style="text-align: justify;"><b style="">DESCRIPTION:</b><span
style=""> </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’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> </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=""> </span>AHA has been
working with the Latah Economic Development Council to determine which
location
would be financially feasible.<span style=""> </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=""> </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="">
</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=""> </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=""> </span>AHA
requires a 13,000 square foot
building.<span style=""> </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=""> </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=""> </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=""> </span>AHA
has plans to hire an additional 5 workers
in the next five (5) years.<span style=""> </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> </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=""> </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=""> </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=""> </span></p>
<p class="MsoNormal" style="margin-bottom: 6pt; text-align: justify;"><span
style=""> </span><b style="">A:<span style=""> </span>Fiscal:
</b><span style="">Approximately $2,000</span><b style=""><span style="">
</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=""> </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: "Times New Roman";"><span style="">
</span>C:<span style=""> </span>Other: </span></b><span
style="font-size: 11pt; font-family: "Times New Roman";">None</span><br>
<br>
</body>
</html>
--------------060307050903090100010509--