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Home My WebLink About141-15 RESOLUTIONRESOLUTION NO. 141-15 A RESOLUTION TO EXPRESS THE CITY COUNCIL'S SUPPORT FOR THE RELOCATION, STARTUP AND EXPANSION OF COMPANIES IN THE ECOMMERCE AND RETAIL TECHNOLOGIES INDUSTRY IN THE CITY OF FAYETTEVILLE, AND TO SUPPORT THE APPLICATION OF OVERDRIVE BRANDS FOR A STATE OF ARKANSAS EQUITY INVESTMENT INCENTIVE TAX CREDIT WHEREAS, the City of Fayetteville recognizes and prioritizes the technology sector in its economic development efforts due in part to its ability to create quality jobs and targets this sector for business recruitment, retention and expansion; and WHEREAS, the technology sector can be broadly defined to include segments of the business community engaged in retail technology and eCommerce; and WHEREAS, OverDrive Brands recently relocated its operations to Fayetteville in order to grow its retail technology and eCommerce business and may qualify for Equity Investment Incentive Act of 2007 tax credits pursuant to Ark. Code Ann. § 15-4-3301, et seq.; 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 expresses its support for the relocation, startup and expansion of businesses engaged in the eCommerce and retail technologies industry in the City of Fayetteville. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby expresses its support for the application of OverDrive Brands, which recently relocated to the City of Fayetteville and is helping to meet one of the goals of the City's Economic Development Plan, for Equity Investment Incentive Act of 2007 tax credits pursuant to Ark. Code Ann. § 15-4-3301, et seq. PASSED and APPROVED this 18th day of August, 2015. ATTEST: • F., G SONDRA E. SMITH, City Clerleasurer FAYETTEVILLE. :vJ 9p S .•� kANSP .�� ti ,roti►► City of Fayetteville, Arkansas 113 West Mountain Street _ Fayetteville, AR 72701 n (479) 575-8323 ,. Text File File Number: 2015-0350 Agenda Date: 8/18/2015 Version: 1 Status: Agenda Ready In Control: City Council Meeting File Type: Resolution Agenda Number: A. 5 STATE OF ARKANSAS EQUITY INVESTMENT INCENTIVE TAX CREDIT A RESOLUTION TO EXPRESS THE CITY COUNCIL'S SUPPORT FOR THE RELOCATION, STARTUP AND EXPANSION OF COMPANIES IN THE ECOMMERCE AND RETAIL TECHNOLOGIES INDUSTRY IN THE CITY OF FAYETTEVILLE, AND TO SUPPORT THE APPLICATION OF OVERDRIVE BRANDS FOR A STATE OF ARKANSAS EQUITY INVESTMENT INCENTIVE TAX CREDIT WHEREAS, the City of Fayetteville recognizes and prioritizes the technology sector in its economic development efforts due in part to its ability to create quality jobs and targets this sector for business recruitment, retention and expansion; and WHEREAS, the technology sector can be broadly defined to include segments of the business community engaged in retail technology and eCommerce; and WHEREAS, OverDrive Brands recently relocated its operations to Fayetteville in order to grow its retail technology and eCommerce business and may qualify for Equity Investment Incentive Act of 2007 tax credits pursuant to Ark. Code Ann. § 15-4-3301, et seq.; 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 expresses its support for the relocation, startup and expansion of businesses engaged in the eCommerce and retail technologies industry in the City of Fayetteville. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby expresses its support for the application of OverDrive Brands for Equity Investment Incentive Act of 2007 tax credits pursuant to Ark. Code Ann. § 15-4-3301, et seq. City of Fayetteville, Arkansas Page 1 Printed on 8/14/2015 Jeremy Pate Submitted By City of Fayetteville Staff Review Form 2015-0350 Legistar File ID 8/18/2015 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 7/31/2015 Development Services / Development Services Department JuFJFtliLLCU vatC Division /Department Action Recommendation: A RESOLUTION TO SUPPORT THE RECENT RE -LOCATION, START-UP AND EXPANSION OF OVERDRIVE BRANDS, A RETAIL E-COMMERCE COMPANY, IN THE CITY OF FAYETTEVILLE AND TO SUPPORT THEIR REQUEST FOR STATE OF ARKANSAS TAX CREDITS IN THE TECHNOLOGY SECTOR Budget Impact: Account Number Fund Project Number Project Title Budgeted Item? NA Current Budget $ - Funds Obligated $ - Current Balance $ - Does item have a cost? No Item Cost Budget Adjustment Attached? No Budget Adjustment Remaining Budget $ - V20140710 Previous Ordinance or Resolution # Original Contract Number: Approval Date: _L's:J_ i Comments: CITY OF • a evl e ARKANSAS MEETING OF AUGUST 18, 2015 TO: Fayetteville City Council CITY COUNCIL AGENDA MEMO THRU: Mayor Lioneld Jordan FROM: Jeremy Pate, Development Services Director DATE: July 30, 2015 SUBJECT: OverDrive Brands RECOMMENDATION: A resolution to support the recent relocation, startup and expansion of OverDrive Brands, a retail e-commerce company, and to support associated requests for State of Arkansas tax credits in the Technology Sector. BACKGROUND: OverDrive Brands is a recent addition to Fayetteville. Previously situated in the Chicago area, OverDrive Brands was convinced to relocate their headquarters to Fayetteville with the investment of a venture capital company located in Northwest Arkansas, New Road Ventures. Targeted investments by New Road Ventures include companies doing business in logistics and data, retail and consumer packaging, marketing and branding. OverDrive Brands falls into the retail technology and ecommerce sector, currently offering aftermarket auto parts. They are a small business currently headquartered on the Downtown Square, but rapidly expanding with high growth potential. Since moving to Fayetteville, the company has increased from two employees to 12, with an average pay of approximately $60,000 per year. In the next 24 months, the company plans to add 16 additional high -skilled jobs, and has established a strong internship program with the University of Arkansas to train and retain talent. In staffs opinion, this is a good example of an investment occurring in a company that then resulted in additional jobs and expansion within our community, in a targeted sector of economic development. DISCUSSION: The request is simply for the City of Fayetteville to recognize and support OverDrive Brands' expansion into our City, and to encourage the State of Arkansas to look favorably upon subsequent application for state tax credits in the technology sector. This particular business model does not fit neatly into the State's identified eligible tax -credit industries, but is one that the City believes should be considered for eligibility in the Technology Sector. BUDGET/STAFF IMPACT: There is no direct impact to City of Fayetteville revenue from this resolution. There is potentially positive impact from the decision to relocate and headquarter this expanding business in Fayetteville. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701