HomeMy WebLinkAbout211-20 RESOLUTION113 West Mountain Street
Fayetteville. AR 72701
(479) 575-8323
Resolution: 211-20
File Number: 2020-0640
NAMIDA LAB, INC.:
A RESOLUTION TO APPROVE AND CERTIFY THE PARTICIPATION OF NAMIDA LAB,
INC. IN THE ARKANSAS TAX BACK PROGRAM AND TO AGREE TO AUTHORIZE THE
ARKANSAS DEPARTMENT OF FINANCE AND ADMINISTRATION TO REFUND CITY
SALES TAX BACK TO NAMIDA LAB, INC. FOR QUALIFIED PURCHASES
WHEREAS, Namida Lab, Inc., is a privately -owned biotech company located in Fayetteville at 1905
East Mission Boulevard which plans to expand its operations as it continues work on COVID-19
antibody testing with a planned investment of $712,423.00 in construction and equipment; and
WHEREAS. Namida Lab. Inc. is committed to creating 9 new full time jobs paying an average hourly
wage of $28.00 an hour for a total payroll of approximately $ I million: and
WHEREAS. in order to certify Namida Lab. Inc. to participate in the sales and use tax refund
program, either Washington County or the City of Fayetteville, or both, must "(s)pecify that the
Department of Finance and Administration is authorized to refund local sales taxes to the qualified
business." ;A.C.A.
§ 15-4-2706 (d)( I )(B)(ii),'; and
WHEREAS, the City of Fayetteville or Washington County must also endorse Namida Lab, Inc.'s
participation in this state and local sales and use tax refund program. and
WHEREAS. bond indentures prevent diversion of sales tax proceeds from the city's bonded penny
sales and use tax.
Page 1 Printed on 8119120
Resolution 211-20
File Number: 2020-0640
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section I : That the City Council ofthe City of Fayetteville. Arkansas hereby endorses Namida Lab.
Inc.'s participation in the sales and use tax refund program authorized by A.C.A. § 15-4-?706(d) in
relation to its construction, equipping and hiring at its new facility in Fayetteville, Arkansas.
Section ?: That the City Council of the City of Fayetteville. Arkansas hereby specifies that the
Department of Finance and Administration is authorized to refund the non -bonded penny city sales tax
to Namida Lab, Inc. for qualified construction and equipment purchased for its facility in Fayetteville.
Arkansas.
PASSED and APPROVED on 8/18/2020
Attest: IRK TR ��zii
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FAYETTEVILLE '�—
Kara Paxton, City Clerk Treasuret o
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Page 2 Printed on 8119120
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
r►q (479) 575-8323
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Text File
File Number: 2020-0640
Agenda Date: 8/18/2020 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 5
NAMIDA LAB, INC.:
A RESOLUTION TO APPROVE AND CERTIFY THE PARTICIPATION OF NAMIDA LAB, INC. IN
THE ARKANSAS TAX BACK PROGRAM AND TO AGREE TO AUTHORIZE THE ARKANSAS
DEPARTMENT OF FINANCE AND ADMINISTRATION TO REFUND CITY SALES TAX BACK TO
NAMIDA LAB, INC. FOR QUALIFIED PURCHASES
WHEREAS, Namida Lab, Inc., is a privately -owned biotech company located in Fayetteville at 1905 East
Mission Boulevard which plans to expand its operations as it continues work on COVID-19 antibody testing
with a planned investment of $712,423.00 in construction and equipment; and
WHEREAS, Namida Lab, Inc. is committed to creating 9 new full time jobs paying an average hourly wage of
$28.00 an hour for a total payroll of approximately $1 million; and
WHEREAS, in order to certify Namida. Lab, Inc. to participate in the sales and use tax refund program, either
Washington County or the City of Fayetteville, or both, must "(s)pecify that the Department of Finance and
Administration is authorized to refund local sales taxes to the qualified business." {A.C.A.
§ 15-4-2706 (d)(1)(B)(ii)); and
WHEREAS, the City of Fayetteville or Washington County must also endorse Namida Lab, Inc.'s
participation in this state and local sales and use tax refund program; and
WHEREAS, bond indentures prevent diversion of sales tax proceeds from the city's bonded penny sales and
use tax.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby endorses Namida Lab, Inc.'s
participation in the sales and use tax refund program authorized by A.C.A. § 15-4-2706(d) in relation to its
construction, equipping and hiring at its new facility in Fayetteville, Arkansas.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby specifies that the Department of
City of Fayetteville, Arkansas Page 1 Printed on 811912020
File Number: 2020-0640
Finance and Administration is authorized to refund the non -bonded penny city sales tax to Namida Lab, Inc. for
qualified construction and equipment purchased for its facility in Fayetteville, Arkansas.
City of Fayetteville, Arkansas Page 2 Printed on 811912020
Devin Howland
Submitted By
City of Fayetteville Staff Review Form
2020-0640
Legistar File ID
8/18/2020
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
7/29/2020 ECONOMIC DEVELOPMENT (050)
Submitted Date Division / Department
Action Recommendation:
STAFF IS RECOMMENDING APPROVAL OF A RESOLUTION TO APPROVE AND CERTIFY THE PARTICIPATION OF
NAMIDA LAB, INC. IN THE ARKANSAS ECONOMIC DEVELOPMENT COMMISSION'S TAX BACK PROGRAM AND TO
AGREE TO AUTHORIZE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO REFUND CITY SALES TAX BACK TO
NAMIDA LAB INC. FOR QUALIFIED PURCHASES.
Budget Impact:
Account Number
Fund
Project Number
Project Title
Budgeted Item? No
Current Budget
$ -
Funds Obligated
$ -
Current Balance
Does item have a cost? NA
Item Cost
Budget Adjustment Attached? NA
Budget Adjustment
Remaining Budget
V20180321
Purchase Order Number: Previous Ordinance or Resolution #
Change Order Number: Approval Date:
Original Contract Number:
Comments:
CITY OF
FAYETTEVILLE
Wir ARKANSAS
MEETING OF AUGUST 18, 2020
TO: Mayor and City Council
THRU: Susan Norton, Chief of Staff
FROM: Devin Howland, Director of Economic Vitality
DATE: July 28, 2020
CITY COUNCIL MEMO
SUBJECT: A Resolution to approve and certify the participation of Namida Lab, Inc. in
the Arkansas Economic Development Commission's Tax Back program.
RECOMMENDATION:
STAFF IS RECOMMENDING APPROVAL OF A RESOLUTION TO APPROVE AND CERTIFY
THE PARTICIPATION OF NAMIDA LAB, INC. THE ARKANSAS TAX BACK PROGRAM AND
TO AGREE TO AUTHORIZE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO
REFUND CITY SALES TAX BACK TO NAMIDA LAB, INC. FOR QUALIFIED PURCHASES.
BACKGROUND:
This project is work which is outlined in the City's Economic Development Consulting contract,
which the Fayetteville Chamber of Commerce currently holds.
What is the AEDC Tax Back Program? The Tax Back Program is part of the Arkansas
Consolidated Incentive Act of 2003. The program enables businesses to apply to receive a
rebate of the sales tax paid on qualifying investments such as facilities and equipment.
Municipalities only remit sales tax for qualifying purchases purchased within their jurisdiction.
Background on Namida Lab, Inc: Namida Lab is a privately -owned biotech company located in
Fayetteville at 1905 E Mission Blvd. Namida operates a laboratory that is certified as "Clinical
Laboratory Improvement Amendment" (CILA). Following the outbreak of COVID-19, the
company pivoted their operations to develop an antibody test for the coronavirus. Namida
currently has ten employees with roughly $400,000 in annual payroll.
DISCUSSION:
Namida Lab is currently expanding as it continues it's work towards the COVID-19 pandemic.
The company will hire nine net new full-time employees which increases payroll by $600,000 to
a total payroll of $1,000,000. The new jobs far exceed a living wage for the Fayetteville MSA at
$28.00 per hour'. The company will also invest over $712,423 into their operations with
$336,423 into their building and $376,000 in equipment.
' Living Wage Data Derived from: https://Iivingwage.mit.edu/
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
BUDGET/STAFF IMPACT:
Staff believes the budget impact will be neutral. The growth of jobs and wages will spur sales
tax growth from new employees. The expansion may also lead to additional investment from
Namida Lab in the future.
Attachments:
Exhibit A: Fayetteville Chamber of Commerce Support Letter
Exhibit B: Consolidated Incentive Act of 2003 Incentive Application
HAMBER
PAY ETTEVILLE
July 28, 2020
Mayor Lioneld Jordan
Fayetteville City Council
113 W. Mountain St.
Fayetteville, AR 72701
Dear Mayor Jordan and Council Aldermen,
The Fayetteville Chamber of Commerce, acting as the Economic Development agency for the City of
Fayetteville strongly supports the request for a resolution by the City of Fayetteville supporting Namida
Lab, Inc.'s participation in the Arkansas Tax Back program.
Namida Lab, Inc. is a privately owned biotech company based in Fayetteville, Arkansas. Its laboratory is
Clinical Laboratory Improvement Amendments (CLIA) certified. This certification governs laboratory
standards for testing body fluids and tissues from humans for the diagnosis, treatment, and prevention of
diseases. The company initially sought to, and was very near completing, FDA approval for a non-invasive
breast cancer screening test. During the outbreak of the COVID-19 Pandemic in the U.S., the company
pivoted to developing a test for antibodies produced because of the presence of the SARS-CoV2, the virus
that causes COVID-19. They currently have 10 total staff including full-time, part-time, and interns and
produce roughly $400,000 in annual payroll.
The company is expanding its operations and will hire an additional nine net new full-time employees to
accommodate the growth expected with their new line of business related to the anti -body testing. This
new group of employees will increase the current payroll by approximately $600,000 for a total payroll of
$1,000,000. The average hourly pay rate will be approximately $28.00 per hour. There will be a capital
investment of $712,423.
Thank you for your consideration,
Steve Clark
President and Chief Exectutive Officer
Fayetteville Chamber of Commerce
21 W. Mountain St., Ste. 300 72701
Consolidated Incentive Act of 2003
Incentive Application
OFFICE USE ONLY
Project #
Project Manager
Date Received
Incentive Please select which of the following program(s) are applicable to this application:
Program Job Creation:
❑✓ Advantage Arkansas (Income Tax Credit program)
Investment: (construction, expansion, modernization)
Tax Back (Sales and Use Tax Refund program)
For new or expanding businesses with a minimum required investment
based on the tier in which the company locates.
Applicant Namida Lab, Inc.
Local Operating Name of Company
1905 E. Mission Blvd, Suite 6 Fayetteville, AR 72703
Mailing Address City/State Zip
1905 E. Mission Blvd, Suite 6 Fayetteville, AR 72703
Physical Location of Project
City/State/Zip County
Jen Morio Business Operations Manager 479-334-2828
Name and Title of Local Company Contact Phone Fax
jen@namidalab.com www.namidalab.com
Company Contact e-mail address
Company Website
Complete Company Name, if company is filing for tax credit under a different name
Consolidated Incentive Act of 2003 Application §15-4-2705, §15-4-2706(c), §15-4-2706(d)
(Revised 7/09)
Page 1 of 6
Project
Cost
Estimate
Employment
Land
Building
..................................................... $
(a) New construction .................. $
(b) Existing building ..................... $ 336,423
Equipment $ 376,000
TOTAL $ 712,423
Present employment: 6
Number of new employees resulting from this project: 9
Average Hourly wage of new employees hired for this project: $ 28
Total annual payroll of new employees hired for this project: S 59,)4o
NOTE: To qualify for the income tax credits provided by the Advantage Arkansas
program, the company must be an eligible business and meet the minimum payroll
requirements for the Tier (county) in which the project is located. The Tier Map is
available on line at www.ArkansasEDC.com.
NAILS 541711
Classification
Code
a biotech company located in Fayetteville, AR, specializes in biomarker-based testing.
Description of principal business activity, products manufactured, etc.
If the applicant is a computer -related company, office sector business, motion
picture company or a scientific and technical services business, 51% of the
applicant's sales revenue must be derived from out of state.
If the applicant is a distribution center, 75% of their sales revenue must come from
out-of-state customers.
What percentage of the applicant's sales is derived from out of state? 51--%
NOTE: Information contained in this application is subject to audit by the Arkansas Department of
Finance and Administration. If any of the above information is found to be inaccurate and
does not qualify, the business will be decertified and shall not receive any benefits and may be
required to repay any benefits received, plus penalty.
Consolidated Incentive Act of 2003 Application §15-4-2705, §15-4-2706(c), §15-4-2706(d)
(Revised 7/09)
Page 2 of 6
I.D. Numbers Employer's Federal I.D. Number 83-461749
Arkansas Sales or Consumer UseTax Number
Arkansas Corporate Income Tax ID Number
Information Ownership of Company (Please check the appropriate box.)
for Income Tax p Individual 0 Partnership D LLC
Credit
[IlTaxable Corporation D Small Business Corporation
(C Corporation) (Sub S Corporation)
If ownership of company is Individual, Partnership, LLC or Small Business Corporation, please
provide the following information (a separate attachment may be submitted if necessary):
Name(s) Percent Social Security Number or
of Owner(s) Ownership FederalTax I.D. Number
When does your tax year end? 12 31
Month Date
Consultant
Information
NameofConsultant filing this application Phone Fax
(If Applicable)
Consultant Firm Name
Mailing Address City/State/Zip
Consultant E-mail address
Consolidated Incentive Act of 2003 Application §15-4-2705, §15-4-2706(c), §15-4-2706(d)
(Revised 7/09)
Page 3 of 6
Project Plan
Please indicate the activity planned by the company associated with this application.
(Check all that apply)
(New Construction ❑ Expansion of existing business ❑ Modernization
Estimated Start Date of Project: Estimated Completion Date of Project:
Project Description:
serological assays for the detection of antibodies produced as a result of the presence of the SARS-CoV2;
Melody, a breast cancer screening test
Our mission is to use unconventional approaches to develop quick solutions for current healthcare chall
Project Cost Estimates:
Description:
Land:
Land Total:
$
New construction:
Building:
We had to build out our facility to meet CLIA req
yirements
336,423
Expansion or Purchase of existing facility:
Building Total:
$ 336,423
New Square Footage
Description:
Machinery and
We have hamilton automation equipment
Equipment:
capable of running 3,000 samples daily. We also
invested in a centrifuge and ultra low freezers
$ 376,000
Machinery & Equipment Total:
$ 376,000
Total Estimated Project Cost: I $ 712,423
Consolidated Incentive Act of 2003 Application §15-4-2705, §15-4-2706(c), §15-4-2706(d)
(Revised 7/09)
Page 4of6
Certification
The undersigned authority,
Jen Morio
Company Official (Printed Name)
acknowledges that he/she is
the owner or authorized official of the applicant company that has the authority to act on behalf of
the applicant.
This affidavit is made for the specific purpose of verifying that the information contained in this
application is true and correct. The applicant acknowledges that only those eligible project costs
incurred and/or employees hired after the date this application is received by the Commission will
be considered for refund or credit. The Advantage Arkansas program requires a separate financial
incentive agreement, signed by the applicant company and the Commission, before hiring any
new, full-time, permanent employees. The applicant company does hereby agree to report new
job creation and investment figures annually to the Arkansas Department of Finance and
Administration for the term of the incentive agreement and to the Arkansas Economic
Development Commission upon request.
Signature of Company Official
Contract Disclosure
Any individual contracting with the State of Arkansas must make full disclosure if he or she is a
current or former: member of the General Assembly, Constitutional Officer, Board or Commission
member, State employee, or the spouse or immediate family member of any of the persons
described herein; or if such persons having any position of control or any ownership interest of ten
percent (10%) or greater in the entity currently applying to contract with the State. Please indicate if
this disclosure is required for this application. Failure to disclose such information is a criminal
offense and shall render any contract with the State of Arkansas null and void.
Disclosure Required?: Yes or �✓ No
Press Release Disclosure
�do not authorize the Arkansas Economic Development Commission to release to the I �✓ do
press the new job creation and investment figures.
(Signing this authorization to release job creation and investment numbers is not mandatory.
However, information about benefits received is public information and may be obtained through a
Freedom of Information request filed with the Arkansas Department of Finance and Administration.)
Signa re of Company Official
Business Operations Manger May 7,2020
Title
Consolidated Incentive Act of 2003 Application §15-4-2705, §15-4-2706(c), §15-4-2706(d)
(Revised 7/09)
Page 5 of 6
Date
If you have questions about the incentive programs included in this application, please call the
Arkansas Economic Development Commission at 501-682-7675 or visit the Commission's website
at www.ArkansasEDC.com.
Submit this application to:
Business Development Division
Arkansas Economic Development Commission
900 West Capitol, Suite 400
Little Rock, AR 72201
AEDC APPROVAL
The Commission's approval of this application is based upon its content. The eligibility provisions
of the individual incentive programs will be administered by the Arkansas Department of Finance
and Administration upon audit at a later date.
Sign ure of AEDC Inc ntives Manager
Consolidated Incentive Act of 2003 Application §15-4-2705, §15-4-2706(c), §15-4-2706(d)
(Revised 7/09)
Page 6 of 6