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Home My WebLink About85-10 RESOLUTIONRESOLUTION NO. 85-10 A RESOLUTION CERTIFYING LOCAL GOVERNMENT ENDORSEMENT OF BUSINESS TO PARTICIPATE IN THE TAX BACK PROGRAM {THE CONSOLIDATED INCENTIVE ACT OF 2003, ARK. CODE ANN. § 15-4- 2706(d) } WHEREAS, the local government must endorse a business to participate in the Tax Back Program and benefit from the refunds/tax credits as provided in the Consolidated Incentive Act of 2003, Ark. Code Ann. § 15-4-2706(d); and WHEREAS, the local government must authorize the refund of local sales and use tax as provided in the Consolidated Incentive Act of 2003; and WHEREAS, said endorsement must be made on specific form available from the Arkansas Department of Economic Development; and WHEREAS, Arkansas Power Electronics International, Inc., located at 535 W. Research Center Blvd., Fayetteville, Arkansas has sought to participate in the program and more specifically has requested benefits accruing from expansion of its manufacturing complex; and WHEREAS, Arkansas Power Electronics International, Inc. has agreed to furnish the local government all necessary information for compliance. 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 Arkansas Power Electronics International, Inc. for benefits from the refunds/tax credits as provided in the Consolidated Incentive Act of 2003, Ark. Code Ann. § 15-4-2706(d). Section 2. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Department of Finance and Administration to refund local sales and use taxes to Arkansas Power Electronics International, Inc. PASSED and APPROVED this 18th day of May, 2010. APPROVED: By: �0 'ELD Jr'i AN, Mayor ATTEST: By: Don Marr, Chief of Staff Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 5/18/2010 City Council Meeting Date Agenda Items Only Mayor's Administration Division Action Required: Chief of Staff Department Resolution of the City of Fayetteville Certifiying Local Government Endortiament of Arkansas Power Electronics International (APEI) to participate in the Tax Bac Program (As Authorized by Section 15-4-2706 (d) of the Consolidated Incentive Action of 2003) and authorizing the Department of Finance and Administration to refund local sales and use taxes to Arkansas Power Electronics International. $ Cost of this request Account Number Project Number Budgeted Item Category! Project Budget Program Category / Project Name Funds Used to Date Program / Project Category Name Remaining Balance Fund Name Budget Adjustment Attached 1 171 -Air-/7 Date Y -21 --to Date s-3.26,0 Finance and Internal Services Director Date /dp- /a6, Chief of St or 5 -3 -lb Date D e D e Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Comments: Revised January 15, 2009 0 a e��evl le Y ARKANSAS City Council Agenda Memo City Council Meeting Date: August 18, 2009 To: Mayor and Members of the City Council From: Don Marr, Chief of Staff Thru: Mayor Jordan Date: 4/30/2010 Subject: Tax Back Program Request Recommendation: The City Staff and Administration recommend on behalf of the Mayor's office that the City Council of the City of Fayetteville, AR pass a resolution in support of Arkansas Power Electronics International (APEI) request to participate in the State of Arkansas Tax Back Program. Background: The City of Fayetteville, AR was contacted by Steve Clark, CEO & President of the Fayetteville Chamber of Commerce, Chung Tan the City of Fayetteville's Economic Development Representative Contractor through the Fayetteville Chamber of Commerce Economic Development contract, and Sharmila Mounce Business Operations Manager of APEI contacted the City of Fayetteville seeking the City's endorsement of APEI to Participate in the T ax Back Program of the Consolidated Incentive Act of 2003. APEI is a start up company which began out of the University of Arkansas and currently employs 25 employees. APEI has chosen the Enterprise building in the Arkansas Research and Technology Park as its site to locate its manufacturing facility. Manufacturing is set to begin this fall (2010). Total investments could be up to 1.68 million dollars which include retrofitting the facility with a clean room, machinery and equipment. With this expansion, APEI intends to create 25 new jobs over the next 5 years with an verage annual salary of $85,000 a year. Support of this resolution will allow APEI to carry out its expansion program and spur economic development for the City of Fayetteville. APEI meets the City's goal of attracting clean technology companies to the community. Budget Impact: We believe the budget impact for the City of Fayetteville will be neutral. We believe the job growth will spur new sales tax growth from new employee spending and the sales tax we are forgoing was Sales Tax that we could possibly not have at all if the expansion did not occur or the expansion was done by the company relocating to another municipality. 113 West Mountain 72701 (479) 575.8323 accessfayelteville.org TDD (Telecommunications Device for the Deaf) (479)-521-1316 RESOLUTION No. A RESOLUTION CERTIFYING LOCAL GOVERNMENT ENDORSEMENT OF BUSINESS TO PARTICIPATE IN THE TAX BACK PROGRAM {TILE CONSOLIDATED INCENTIVE ACT OF 2003, ARK. CODE ANN. § 15-4- 2706(d)} WHEREAS, the Local government must endorse a business to participate in the Tax Back Program and benefit from the refunds/tax credits as provided in the Consolidated Incentive Act of 2003, Ark. Code Ann. § 15-4-2706(d); and WHEREAS, the local government must authorize the refund of local sales and use tax as provided in the Consolidated Incentive Act of 2003; and WHEREAS, said endorsement must be made on specific form available from the Arkansas Department of Economic Development; and WHEREAS, Arkansas Power Electronics International, Inc., located at 535 W. Research Center Blvd., Fayetteville, Arkansas has sought to participate in the program and more specifically has requested benefits accruing from expansion of its manufacturing complex; and WHEREAS, Arkansas Power Electronics International, Inc. has agreed to furnish the local government all necessary information for compliance. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCII. OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby endorses Arkansas Power Electronics International, Inc. for benefits from the refunds/tax credits as provided in the Consolidated Incentive Act of 2003, Ark. Code Ann. § 15-4-2706(d). Section 2. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Department of Finance and Administration to refund local sales and use taxes to Arkansas Power Electronics International, Inc. PASSED and APPROVED this 18th day of May, 2010. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer April 28, 2010 Mayor Lioneld Jordan Fayetteville City Council 113 West Mountain Fayetteville, AR 72701 Fayetteville Chamber of Commerce Dear Mayor Jordan and Council Aldermen: I strongly support the application submitted by Arkansas Power Electronics International (APEI) to participate in the state of Arkansas Tax Back Program. APEI is a start-up company coming out of the University of Arkansas and it currently has 25 employees. After careful consideration on possible sites to locate its manufacturing facility, APEI has chosen the Enterprise Building in the Arkansas Research and Technology Park. Manufacturing is set to begin this summer of 2010. The manufacturing facility will start with a 7,850 sq. foot print. Total investments could be up to $1.68 million which include retrofitting the facility with a clean room, machinery and equipment. With this expansion, APEI intends to create 25 new jobs over the next 5 years with an average annual salary of $85,000 a year. An approval to pass the resolution to refund sales and use taxes to APEI for its purchases by the Fayetteville Council will allow APEI to carry out its expansion program and spur economic development in the City. APEI meets the City's goal of attracting clean technology companies in the community. It will also be offering employment opportunities to the community and contributes towards building a high tech workforce in Fayetteville. APEI has the capabilities and expertise to successfully operate and manage the company. Further, 1 anticipate APEI to grow and expand exponentially in the future. APEI will become a valuable City's asset that we can leverage when we attract new and similar companies into the City. This project supports your and the Council's economic development goals of improving the standard of living for all Fayetteville and northwest Arkansas residents through access to higher paying jobs and this project contributes to the sustainability of a manufacturer base in Fayetteville. Thank you for your consideration. Sincerely, Steve ark, President/CEO Arkansas Power Electronics International, Inc. 535 if RiThcarch Coucr Spit,: -V19 • •avcitcrilic. .IR. -2-01 • (49) 443- 5-59 • Fax: 5-5)--446 arearea s.maII.bus!ness dedicated to e veloping and marketing the state-of-the- art teChnology in power electronics systems, electronic motor drives, and power Sharmila Mounce, M.S.E.E. Business Operations Manager Email: smounce@apei.net APEI Confidential packaging. • APEI Overview April 2010 APEI, Inc. 535 W. Research Center Blvd. Fayetteville, AR 72701 Phone: (479)-443-5759 Website: www.apei.net 1 Arkansas Power Electronics International, Inc. 535 fl: R,_ -ti ur,.1t (',rrrcrl,hcl...Slrir _'M) • 1:rrclrct-i11c..f1Z. -'-01 • Pht»),:: (4-9) 4,13 5-5t) • 1. r.ti: r 5-`r-'-l-l6 APE Confidential APEI, Inc. Long Term Goal To become a leading global supplier of high performance SiC power modules and SiC power electronics systems. 2 Arkansas Power Electronics International, Inc. 535 U. !ieNc[!1"t'h 5i11ic (' • /-[!n'Ilc'1'1//0'..1/?. -2-01 • P1Ni : (.4-91 443 5-5.1 • Fox: i 5-5)--446 APEI, Inc. Company Information • Founded in 1997 — Dr. Alexander Lostetter majority owner, remainder employee owned — Presently shifting from R&D technology development into high performance manufacturing — Located in the Arkansas Technology Research Park, UA Campus, Fayetteville, AR • Employees — ' 25 employees — CEO, Dr. Alexander Lostetter Business Operations Manager, Mrs. Sharmila Mounce — CTO, Dr. Marcelo Schupbach Director of Manufacturing, Jared Hornberger • Revenues, ph\ ,\& 2i,,` — "'$6.0 million projected for 2010 — Completely "boot -strapped"— $0 in debt, no external capital investments to date • Intellectual Property — N 12 patents awarded, pending, and under filing — Multiple industrial trade secrets - 150 international publications by company employees 3 APEI Confidential Arkansas Power Electronics International, Inc. 535 11, Ili 1 c!i'i'll C L711c1' 1111- ., Sztih' 210 • [ c!vcit,'r111i..1 R. -2-01 • ]'1lrilli: (47)) 443 .. ?C.) • 1:(1.1": t 5-5)- 446 APEI, Inc. Revenues S5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $o Revenues for 2002 - 2010 IIIIIIIIIIIIIIIIII II II 1 II t II t 2002 2003 2004 2005 2006 2007 2008 2009 2010 4 APEI Confidential Arkansas Power Electronics International, Inc. )? JI k'Sccff','h i i'!1h'1' R/ J.. .Slflli' ( • a ciicillIc..-1R. -2-01 • I-/- ()i 443 5-59 • Fav: ( APEI, Inc. Organization I 1 � Research Sc Development [schupbach] Present Facilities Board of Directors 1 CEO [Lostetter] New Facilities (ISO & ASE Certified) Packaging • Wireless Recruiting Recruiting APEI Confidential 1 Business Operations [Mouncel Accounting Contracts 1 Operations Marketing l Legal [External] J 1 Manufacturing [Hornberger] Phase I Phase II Phase Facilities by Sept 2010 Recruiting Phase II Facilities by Dec 2011 5 535 fl: Rc arch (otict Ii1t 1...5trifr_f0 • /ii,/!!..IR. -'-111 •1'ltr,tt 14-9) -143 ? jtl • Fox: 1 5-5t- -1-16 APEI, Inc.'s Product Development R&D $$s $7,900,000 Commercial Partners Capital Commercial Contracts $850,000 F y y�c APEI Confidential $1,700,000 $450,000 $2,000,000 $45i 000 $1,200,000 $1,600,000 Initial Target Products Production Prototypes Siemens 2011 Turbine 1� Arkansas Power Electronics International, Inc. $5 ii _ %\L'Nc'c!I"i'h ,IlO • 1-',I c!lCS71ii. .11? -2-01 • I'%mIl.: 14-9) 44.3 5-.59 • Fox: 1 5-5)-7446 APEI, Inc.'s SIC Power Modules Featu res -High current capability (>200 Amps) -General use power module -High temperature (250 °C) Features - Integrated gate driver - High current capability (>150 Amps) - Designed for traction application -High temperature (250 Featu res - Hermetically sealed - High current capability (up to 200 Amps) - Designed for aerospace - High temperature (300 °C) - High reliability Key differentiator; APEI, Inc. is planning to implement many devices. APEI Confidential 7 Arkansas Power Electronics International, Inc. Iii.Nc iicIi C (71lr'!" _'')Y • /'c1ivitLl 1llc..IR. -i-(!r • P/luih': (-{ t// -E43 S -iO • /'UC: ( 5-5)- 7446 Application and Benefit to Military POWER ELECTRONICS ON THE FUTURE BATTLEFIELD Murk. E Ira tr.r lArr rdlt !ME A) l rghlw,ght E lrc tnc Motors sod Urivcs 1lydr,ndic s S.ftrf1te ighiwt-ihhr Snl.r Arr,,y Po -w. ,r ( onvr,rtr•r.. in len reAr., P.rylard C.r pahrl�ty APEI, Inc. Major Program Contracts • . , ,„,„,„.ini N•d Atrlyl VKIm.k 11.jAV) Electric Power for Srnsor,, I. orrtniur.r(.stiu•rti.wrnpons Mull, Purpr,se.Air Vrhicic_; Nigh [)ensrly Pawn Su Pttlic•s or 1Irghr Control Systems C I,ncr ly(r Suppnrt 1110 Ot•mrty Power' I l' s rThrrr::. --ci :V.•s{tom Systons Ar mod Robotu Vrhi. i e (ARV,d -(..; 1I-tri.c Powr-rfor (nm4.,et 11r•,tdy S11¢n1 Watch Op-ra norts F� for Cornnrctnrc nnU lsrt,c-trrrt;�"4: - Illi(%) Next Ger ration War<4-kvs Ifiyh Voltage / wYh (• urr(•nt "'��- .e+ Powt, Ili stn ballon yystvrns future Farc c• W,irrior Portably Power (unvertersfor Electronic Ne•tworkkng ane} Sen alts hrnell I.Jnrt:nrured Grusurn1 Eler t o P0wr•r16r - n C ,Inman t4tiur ,,Se r..orti APE! Confidential Navy Radar Systems $1M FY 2009-11 Missile Defense $1M FY 2010-11 F-35 JSF Air Force Phase 111 $10M FY 2010-13 F-35 JSF Air Force $1M Wireless Army TARDEC SAIC $2.1M FY 2010-11 Army Research Labs $1M FY 2010-11 8 5.;',5 U, R,\cur,.'1 t'oncr liIl'cL.'(1(/ • F 11'c(1i171Ii'. JR. -2-01 • PhHilt': (4 -(1) 443. 5-5V • /'a.v: ( 5-5)-7446 Other Applications Commercial Hybrid and Electric Vehicles Renewable Energy • High efficiency power conversion • Reduction of electrica fosses by 90% • Lightweight inverters for remote locations Down -Hole Instruments • High-temperature electronicsfordeep earth • Petroleum exploration • Geothermal exploration APEI Confidential ,..._ate: Aerospace • Reduced launch costs due to lightweight • Application to the more -electric commercial airliners tV NASA • Extreme environment exploration (Venus lander • Lightweight reliable powe supplies forsatellites & spacecraft 9 Arkansas Power Electronics International, Inc. iii f : Rc.c<<rrrh (17,,i r 1.1rd.Sir rf,:'09 R. -'-01 • ph",,,.: 44.3 ?-Sri • 1--: (?-il-7446 SiC Power Modules for F-35 JSF Conditionedpowerto flight critical actuation system Independent source of electrical power Uninterruptible, flight critical power More Electric Aircraft (MEA) such as the F-35 could find SiC power electronics usage in or with: Source for redundant, flight critical power APEI Confidential Modulatedp ower to flight control actuators Redundant control power at each control surface Fi' `t. IF "44 14 10 Arkansas Power Electronics International, Inc. J? i . /tii,ce.li'i'h Sitirc W —2-111 • Pjlril7C: t- CJl TT? .5 —5c)• Far (? 5)-^-I-J SiC Power Modules for F-35 JSF Project Application — F-35 flight control surface actuator drives — More Electric Aircraft mandate to replace heavy hydraulic actuators Project Objectives — Reduced weight (50% decrease) — Transition to manufacturing of SiC power modules for F-35 Power 8 Control Electronics em Ortel Tandem ENA Actuator ape Simplex ERA Actuator — Electric -- APEI - Hydraulic APE CIJIIIiUC1111111 = Electric Orlvs LU It emommorill flap Actuation System MOOG 1',,ki� Phase 111, Yr 1 Project Goals • Install SIC device test and manufacturing equipment at APEI. • Design the power modules for the flight control actuator drive for F-35 flight control surfaces • Fabricate subcomponent prototypes • Begin long term extreme environment reliability testing 11 Arkansas Power Electronics International, Inc. 535 H R,:ca cf ('0nI r hlrJ._O) • 1 alvtiE'rilL.IR. -'-01 • /'brut': r-1-9 .1-13 5-5Y • l uc: 15-5I-7-1-15 U.S. Army Vehicle Program Heavy Mobility Tactical Trucks (HEMTTs) (Typically 225kW- 500kW diesel engines) 95,000 diesel trucks in inventory SAIC Light Tactical & Armored Fighting Vehicles (Typically 150kW-500kW diesel engines) - 120,000 diesel LTVs and LAVs in inventory APEI Confidential APEI Confh Arkansas Power Electronics International, Inc. 535 11. RcScc11'L'h 'U() • h11't'lIL'11/IL'..1RR. -2-111 • Pho : (4-9) 443 9 • Fav: (?-?1- -{-{i7 APEI, Inc. Manufacturing Facilities Arkansas Research Technology Park Present APEI location New APEI manufacturing location R&D Facilities Manufacturing Facilities 7,000 sq. ft. 8,000-12,000 sq. ft. 13 Arkansas Power Electronics International, Inc. 535 HI R,:\ arch (',•;1h•r 1>1,'d, Suite 2119 • l crrcllcril1,t _IR, --2-11/ • 1'1lrrrrc: 1-i SII -/-/3 ti -5V • FLty: 1 5-5) -l-Ifi APEI, Inc. Manufacturing Facilities APEI Confidential • Power module assembly facility • 11,500 sq. ft. dedicated manufacturing space • Class 1000 clean rooms • ISO certified • Phase I Operational by Q4 2010 • Phase II Operational by Q4 2011 • DBC Power Substrates • Electronics Assembly • LTCC • Environmental Testing 14