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CITY COMMISSION AGENDA ITEM |
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Department: |
City Manager’s Office |
Commission Meeting Date: 2-20-2018 |
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Staff Contacts: |
Britt Crum-Cano, Economic Development Coordinator Diane Stoddard, Assistant City Manager |
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Recommendations/Options/Action Requested: |
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Receive the Public Incentives Review Committee (PIRC) recommendation and consider Hillary’s (DEW—Drink Eat Well) request for an expansion assistance grant, to be funded equally from the City, County, and the Chamber/Economic Development Corporation (EDC) of Lawrence, Kansas and authorize the City Manager to execute a performance agreement with the Company based on the provisions in the staff report and provide $10,000 in City economic development funds for the City’s grant contribution. |
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Executive Summary: |
Hilary’s (DEW - Drink Eat Well, LLC) is a local food production company that manufactures certified organic, plant-based foods free from top common food allergens. They have been in business for eight years and have operated out of their current manufacturing facility, located at 2205 Haskell Avenue since 2013. The company is a certified B Corporation food manufacturer with approximately 40 local employees and takes pride in being a “second chance” employer for individuals who have spent time in prison, struggled with addictions, and have been homeless.
Hilary’s is asking for assistance to aid in expanding manufacturing operations at the existing facility and expanding into additional space at the neighboring building located at 2151 Haskell Avenue to accommodate on-site storage and logistics. The expansion investment is estimated at a little over $1.5 million and will increase their manufacturing capacity and provide on-site storage and refrigeration space (currently accommodated through leased property in the KC metro).
The request includes a little over $30,000 in economic development assistance to help with employee training, moving and professional expenses related to the expansion. Hilary’s estimates over the next three years this expansion will support approximately 2-4 new jobs for on-site storage and logistics operations and 10 new jobs for increased manufacturing operations.
City staff has had preliminary discussions with the County and the Chamber/EDC on partnering on an assistance package and has received favorable responses to a suggested contribution of $10,000 each from the City, County and The Chamber/Economic Development Corporation (EDC) of Lawrence Kansas to make up a total assistance amount of $30,000.
PIRC reviewed the request at their February 13, 2018 meeting and voted 6-0 to recommend an economic development grant to support the Hilary’s (DEW—Drink Eat Well) expansion, with the City providing $10,000 to be matched equally by Douglas County and the Chamber/EDC of Lawrence for a total assistance package of $30,000.
The request is now ready for City Commission consideration.
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Strategic Plan Critical Success Factor |
Economic Growth and Security Collaborative Solutions |
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Fiscal Impact (Amount/Source): |
The City cost for the expansion grant would be $10,000, to be matched in equal amounts by Douglas County and the Lawrence/Douglas County Economic Development Corporation for a total assistance package of $30,000. |
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Attachments: |
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Reviewed By: (for CMO use only) |
☐TM ☒DS ☐CT ☐BM |