HomeMy WebLinkAbout234-15 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 234-15
File Number: 2015-0582
METOVA, INC.:
A RESOLUTION TO APPROVE AND CERTIFY THE PARTICIPATION OF METOVA, INC. IN THE
ARKANSAS TAX BACK PROGRAM AND TO AGREE TO AUTHORIZE DF&A TO REFUND CITY
SALES TAX BACK TO METOVA, INC.
WHEREAS, Metova, Inc. is in the process of expanding its existing operations into Fayetteville as an
emerging technology company that creates world class applications and provides strategy, design,
development and marketing services for companies, with a total planned investment of $100,000.00 in
property renovations and $150,000.00 in equipment installation; and
WHEREAS, Metova, Inc. is committed to creating 30 new jobs paying an average hourly wage of
$33.65 for a total annual payroll of approximately $2,100,000.00; and
WHEREAS, in order to certify Metova, 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)(B)(ii)}; and
WHEREAS, the City of Fayetteville or Washington County must also endorse Metova, 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
Page 1 Printed on 12/17/15
File Number: 2015-0582
Resolution 234-15
OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby endorses Metova, Inc.'s
participation in the sales and use tax refund program authorized by A.C.A.
§ 15-4-2706(d) in relation to its renovations, 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 Finance and Administration is authorized to refund the non -bonded penny city sales tax to Metova, Inc.
for qualified construction and equipment purchased for its facility in Fayetteville, Arkansas.
PASSED and APPROVED on 12/15/2015
Attest:
Lisa Branson, Deputy City Clerk
'01,111
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v� Y
FAYETTEVILLE.'
1 i ; O ; ,,e�°°
Page 2 Printed on 12/17/15
City of Fayetteville, Arkansas 113 West Mountain Street
�y Fayetteville, AR 72701
a (479) 575-8323
Text File
File Number: 2015-0582
Agenda Date: 12/15/2015 Version: 1 Status: Agenda Ready
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 14
METOVA, INC.:
A RESOLUTION TO APPROVE AND CERTIFY THE PARTICIPATION OF METOVA, INC. IN
THE ARKANSAS TAX BACK PROGRAM AND TO AGREE TO AUTHORIZE DF&A TO
REFUND CITY SALES TAX BACK TO METOVA, INC.
WHEREAS, Metova, Inc. is in the process of expanding its existing operations into Fayetteville as an
emerging technology company that creates world class applications and provides strategy, design,
development and marketing services for companies, with a total planned investment of $100,000.00 in
property renovations and $150,000.00 in equipment installation; and
WHEREAS, Metova, Inc. is committed to creating 30 new jobs paying an average hourly wage of
$33.65 for a total annual payroll of approximately $2,100,000.00; and
WHEREAS, in order to certify Metova, 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)(B)(ii)}; and
WHEREAS, the City of Fayetteville or Washington County must also endorse Metova, 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 Metova, Inc.'s
participation in the sales and use tax refund program authorized by A.C.A. §15-4-2706(d) in relation to
its renovations, 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 Finance
and Administration is
authorized to refund the non -bonded penny city sales tax
to Metova,
Inc. for
qualified construction
and equipment purchased for its facility in Fayetteville,
City of Fayetteville, Arkansas Page 1 Printed on 1211612015
File Number.' 2015-0582
Arkansas.
City of Fayetteville, Arkansas Page 2 Printed on 1211612015
City of Fayetteville Staff Review Form
2015-0s82
Legistar File lD
72lL5lzÛLs
City Council Meeting Date - Agenda ltem Only
N/A for Non-Agenda ltem
Don Marr/Jeremy Pate trlzs/zors
-
Submitted Date
Chief of Staff
Submitted By Division / Department
Action Recommendation:
Resolution of the City of Fayetteville certifoing local government endorsement of Metova, lnc to partièifate in State
of Arkansas Tax Back Program (as authorized by Section I5-4-2706(d) of the Consolidated tncentive Act of 2OO3)
and authorizing the Department of Finance and Administration to refund local sales and use taxes to Metova, lnc.
Budget lmpact:
Account Number Fund
Project Number
Budgeted ltem? NA
Project Title
Current Budget S
Funds Obligated
Current Balance
Does ¡tem have a cost?
Budget Adjustment Attached?
Item Cost
Budget Adjustment
NA
NA
Remaining Budget ffi
Previous Ordinance or Resolution #
Original Contract Number:
Comments:
Approval Date:
ffilcælæ¡¡ry
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENT CORRESPONDENCÊ
À ll K¡1 l*S rt 5
CITY COUNCIL AGENDA MEMO
To: Mayor Jordan, City Council
Thru: Mayor Lioneld Jordan
From: Oon tvlurlKremy Pate, Director of Development Services-f
Date: November 25,2075
Subject: Metova, Inc. Tax Back Program
RECOMMENDATION: The City Staff and Administration recommend on behalf of the Mayor's office that
the City Council of the City of Fayetteville pass a resolution in support of Metova Inc. to participate in the State
of Arkansas Tax Back Program. The Arkansas Economic Development Commission seeks local support for the
Tax Back Program, and the City Council's action to support this application will result in their approval.
BACKGROUND: The City of Fayetteville was contacted by Steve Clark, President and CEO of the Fayetteville
Chamber of Commerce, Chung Tan, the City of Fayetteville's Economic Development Representative and Metova
lnc., seeking endorsement of Metova Inc. to participate in the State of Arkansas Tax Back Program of the
Consolidated lncentive Act of 2003.
Metova lnc. has made an application with the Arkansas Economic Development Commission (AEDC) to participate
in the State's Tax Back (Sales and Use Tax Refund) program. This program allows Arkansas businesses (new or
expanding) with a minimum of $100,000 in new i¡vestment to receive a tax back from sales and use tax paid on
qualified expenses related to the new development or expansion. Metova Inc. is from Franklin TX and Cabot AR,
and is currently in the process of expanding to Fayetteville AR. The company is an emerging technology company
that creates world-class apps along with strategy, design, development and marketing for companies that include
Yelp, Dropbox, eHarmony, Flixster and the US Dept. of Defense. The Chamber Economic Development Team has
identified Metova, Inc. as the t¡rpe of businesses targeted for development in Fayettevílte, Metova Inc. is expanding
into the City of Fayetteville and will be renovating their new space costing a minimum of $100,000. Additionally,
there will be an installation of equipment at a minimum of $150,000. This expansion will result in the creation of 30
new jobs with an average hourly wage of $33.65lhour. The Total annual payroll for the new employees hired for
this project is estimated to be approximately 32.1 Million dollars.
Support of this resolution will allow Metova Inc. to carry out its expansion plan and generate additional economic
activity for the City of Fayetteville.
BUDGET IMPACT We believe the budget impact will be neutral. The job growth, will spur new sales tax
gowth from new employees and these positions allow the opportunity for higher earnings and more disposable
income buying opportunities in our community. But most importantly this expansion into our community may
lead to further expansion in this area supporting Metova Inc needs. One of the City's economic development
goals is to retain Arkansas employers in our state, our region and our local areas, and passing this resolution
allows for one such employer to do so within the state and in our local area.
ffi Fcyettevilleffiffi
ffi æ Chamber of Cornmerce
Mayor Lioneld Jordan
City of Fayetteville
Don Marr, Chief of Staff
Jeremy Pate, Director of
Steve Clark, CEO & President
November 2Otn, 2015
Recommendation to pass a city Resolution to support Tax Back Sales/use Tax Refund for
Metova, lnc.
Metova, lnc. has made an application with the Arkansas Economic Development Commission (AEDC) to
participate in the state's Tax Back (Sales and Use Tax Refund) program' This program allows Arkansas
businesses (new or expanding) with a miním um of 5L00,000 in new investments to receive a tax back
from sales and use tax paid on qualified expenses related to the new development or expansion'
Metova, lnc,, from Franklin, TX and Cabot, AR, is currently in the process of expanding to Fayetteville'
This expansion will include
Renovatíon of the new space costing a minimum of $100,000
lnstallation of equipment of a minimum of $150,000
Creation of 30 new jobs with an average hourly wage of S¡¡'eS' Total annual payroll for the
new employees hired for this project is estimated to be s2.1 million.
The chamber Economic Development Team has identified Metovo, lnc' as the type of businesses
targeted for development in Fayetteville. Metova, lnc. is an emerging technology company that creates
world-class apps along with strategy, design, development and marketing for companíes that include
Yelp, Dropbox, eHarmony, Flixster and the US Dept of Defense'
I respectfully request that the City passes a Resolution to support the Tax Back Sales/Use Tax Refund for
Metova. Thank you for your kind consideration in this matter'
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,ffi
Consolidated Incentive
lncentive Application
OFFICE USE ONLY
â. *r to
Act of 2003 Project #
be^ fr<^tt
Project Manager
¡o ltl
Date Received
InCentiVe Please select wh¡ch of the following program(s) are applicable to this application:
Program Joþ Çr:eatiqn¡
f] Advantage Arkansâs (tncome Tax credit program)
lnvestment: (constructíon, expansion, modernization)
Applicants mav onlv select one of the following proerams:
I Tax Back lsates and Use Tax Refund program)
For new or expanding buisnesses with a 5100,000 minimum investment
OR
n lnVeStAfk lsates and Use Tax Credit program)
For existing businesses only, with two (2) or more years of operating in Arkansas, investing a
minimum of 55,000,000 and obtaining a direct-pay sales/use tax permit.
Consolidated lncentive Act of 2003
Discretionary I ncentive Application 515-4-2706(b) a nd S 15-4-2707
(Revised 6/09) page L of 7
4->w
Consolidated lncentive Act of 2003
Discretionary lncentive Application
The incentive programs included in this application are discretionary and may onlybe
offered upon approval by the Director of the Arkansas Economic Development
commission. This application should not be completed unless the jncentive has been
offered by the director.
lncentive
Program
Applicant
Please select which of the following pró
Job Creation:
ffi Create Rebate (payroitrebate program)
Requires s2,000,000 minimum payrofl for new fulr-time permanent emproyees
lnvestment: (construction, expansion, modernization)
I ArkPlus (tncome Tax credit program)
Requires investment and job creation threshold accordingto thetier in which the project is
located
Metova
Local Operating Name of Company
15506 Hwy 5, Suite J Cabot, AR 72023
Mailing Address
LL2 W. Center St, (6th floor)
Physical Location of project
Michelle Hoyt, Controller
C¡ty/State
Fayetteville, AR
72707
zip
Washington
County
866-57t-371.7
City/5tate/Zip
501-628-9111
Nanle and Title of Local Company Contact
nl]el]cel@üelqyq.com
Company Contact e-mail address
Metova, lnc.
complete company Name, if company is filing for benefits under - d',ff"*ññm"
Fax
Consolidated I ncentive Act of 2003
Dlscretiona ry lncent¡ve Application S1S-4-2706(b) and 915,4-2707
(Revtsed 6/09)
OFFICE USE ONtY
lÅ9 ¡o
Project #
$r,n frvtt-
Project Manager
toltt l"t-'tÇ
Page l- of 6
Project
Cost
Estimate
Land
Building (a) New construction .....,........,.,..,. $g
(b) Existing building $rOO,OooEquipment .. $150,000
TOTAL ....... $2s9.!gg
Employment
Present employment: 0
Number of new employees resulting from this project: 30
Average Hourly wage of new employees hired for this project: $33.65
Total annual payroll of new employees hired for this project: 52.lM
NorE: To qualify for the benefits of the ArkPlus or create Rebate programs, the
approved company must be an eligible business and meet the minlmum payroll
requirements for the Tier (county) in which the project is located. The Tier Map is
available on line at www.ArkqnsasEDC.com.
NAICS
Classification
Code
s41511
Provide computer programming, design and services
Descrlption of principal business activity, products manufactured, etc.
what percentage of the applicant's gross sales are retail sales to the public? eþ(An eligible company must not derive more than loo/o of íts revenue from sales to the
general public)
lf the applicant is a computer-related company, a distribut¡on center, office sector
business, motion picture company or a scientific and technical services business, 75%
of the applicant's sales revenue must be derived from out of state.
What percentage of the applicant's sales is derived from out of state? 90%
NOTE: lnformation contained in this appllcatlon is subject to audít by the Arkansas Department of
Finance and Administratíon, lf any of the above information is found to be inaccurate and
does not quallfy, the business will be decertlfied and shall not receive any benefits and may be
required to repay any benefits recelved, plus penalty.
ooL
Consolidated lncentive Act of 2003
Dlscretionary lncentive Application 915-4-2706(b) and SIS- 4-Z7Ol
(Revised 6/09)Page 2 ot 6
f .D. Numbers Employer,s Federal t.D. Number 26_L64!s49
Arkansas sares or consumer use Tax Number s721243s-sls
lnformation
for lncome Tax
Credit
Ownership of Company (please check the appropriate box.)
fl lndividuat
ffi Taxable Corporation
(C Corporation)
fl Partnership n LLc
tr Small Business Corporation
{Sub S Corporation)
lf ownership of company is lndividual, Partnership, LLC or small Buslness Corporatlon, pleaseprovide the following information (a separate attachment may be submitted if necessary)r
Name(s)Percent
Ownershipof Owne
When does your tax year end? .t2 ?oßMonth Date
N/A
Social Security Number or
Federal Tax l.D. Number
Consultant
lnformation
(lf Applicable)
Name of Consultant filing this application Phone
Consultant Firm Name
Mailing Address City/State/ Zip
Consultant E-maíl address
Consolidated lncentive Act of 2003
Dìscretiona ry lncenilve Application S15-4-2706(b) and 51S-4_2707
(Revised 6/09)Page 3 of6
Project Plan
Please indicate the activity planned by the company assoclated with this appllcation.
(Check allthat apply)
! ttew Constructlon [l Expansion of exlstíng business [] fvtodernization
Estimated Start Date of Project: Oct 2015 Estimated Completion Date of Project: 24 months
Project Description: Expansion in Fayetteville of company operations
Project Cost Estimates:
Land:
Description:
N/A
$o
Land Total:so
Buildlng:
New construct¡on:
N/A
so
Expansion or Purchase of existing facility:
Expansion-lease new office space
$100,000
Buildíng Total:5100,000
Machlnery and
Equipment:
Description:
Purchase furnlture and requlred equipment
$150,000
Machinery & Equipment Total:$150,000
Total Estimated Proíect Cost:
Consolidated lncentive Act of 2003
Olscretionary lncentive Appl¡cation 515-4-2706(b) and 515-4-2707
(Revised 6/09)Page 4 of 6
Certification
ïhe undersígned author'nv, " lltr"l'l e {1e... Hpv + acknowredges that he/she is
the owner or authorized orriciat or,n.t"#,ilfi::'#il;ïi;Ï'n* the authorityto act on beharf orthe applicant,
This affidavit is made for the specific purpose of verifying that the ínformation contained in thisapplication is true and correct, The applicant acknowledges that only those eligible ;rtect costsincurred andf or employees hired after the date this application is received by the commission willbe considered for refund or credit. The ArkPlus and create Rebate programs require a separatefinancial incentive agreement, signed bythe applicant cornpany and the commission, beforehiring any new, full-time, permanent employees. The applicant company does hereby agree toreport new job creatlon and investment flgures annually to the Arkansas oepartmeit of Flnanceand Admínistration for the term of the incentive agreement and to the Arkansas EconomicDevelopment Commission upon request.
C.tn.h"r l(¿. t
Tifle
Contract Disclosure
Any individual contracting with the state of Arkansas must make full disclosure if he or she is acurrent or former: member of the GeneralAssembly, Constitutional officer, Board or commissionmember, State employee, or the spouse or immediate family member of any of the personsdescribed herelnj or íf such persons having any position of control or any ownersr'ip'interest of tenpercent (Lo%l or greater in the entity currently applying to contract with the state. please indicate ifthis dísclosure is required for this application. Failure to disclose such information ls a criminaloffense and shall render any contract with the state of Arkansas null and void.
Disclosure Required?: ! ves or ffi fllo
Press Release Disclosure
t ffi ao I oo not authorize the Arkansas Economic Development commission to release to thepress 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 aq !rrrvsırr sFreedom of lnformation request filed with the Arkansas Department of Finance and Administration,)
lft:-,{ .,ttv¡ /t'z¡ /(uL'L) /Lû-^ /C'/Z J:/lÇ
Tille
Consolidated lncentive Act of 2003
Discretionary lncent¡ve Application S15_a_2706(b) and SLS-4_2 707
(Revised 6/09)
of Company
Page 5 of 6
lf you have questions about the incentlve 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 Dlvision
Arkansas Economic Development Commission
900 West Capítol, Suite 400
Little Rock, AR 7220t
AEDC APPROVAL
The Commission's approval of this application is based upon its content. The eligibility provislons
of the individual incentive programs will be administered by the Arkansas Department of Finance
and Administration upon audit at a later date.
AEDC Executive Director
Signature of AEDC lncentives Manager
Consolidated lncentive Act of 2003
Dlscretionary lncentive Applicatlon 515.4-2706(b) and gtï-4-2707
(Revlsed 6/09) page 6 of 6
MÊTffiVA 1550ó Hw¡r 5
Suite J
Cobot, AR 72023
T +1.501.ó28.91I i
ç +1.86ó.571.3717
$.4-l"QyÉ^dqlD
Mayor Líoneld Jordan
City of Ëayetteville
I 13 W Mountain
Fayetteville, AP.72701
Ðear Mayor Jordon,
Metova Inc. is excited to be opening a location on the square in Fayetteville Arkansas and we lookforward to paltnering with the local community for y*uri to come. We feel Fayetteville is an idealcity for a unique and innovative software development firm like Metova.
Metova, Inc. is a leading technology services and solutions provider founded in 2006 in Franklin,
Tennessee. Metova has expanded in recent years to locations in Washington, D.C., Augusta, Georgia,Conway, Arkansas and now Fayetteville, Arkansas. Metova has two divîsions, MetovJFederal whichprovides technology solutions to the military and federal government and Metova, lnc. providing
cornmercial solutions from mobile applications, desktop, web, and server-side to compánies inctudingDropbox, Yelp, eHarmony, WebMD, SiriusXM and rnány more.
Our mission is to create an environment and culture rvhere talented young software developers will bechallenged daily to grow their skills both technically and professionitty. W* pride ourselves on
9ffTing those young developers the opportunìty to work wÍth exciting-"o*puni"s, typically
headquartered in places Iike the Bay Area, Seattle, Boston and Austin withóut havin! to leave theirlocal communities to do so.
Thank you for your leadership and vision thaf has developed Fayefteville into a community where
companies like Metova can thrive. We look forward ts have the City Council's and your íupport inapproving our request for the Sales/Use Tax Refund.
1
Branson, Lisa
From:Pennington, Blake
Sent:Tuesday, December 22, 2015 3:40 PM
To:Branson, Lisa; Smith, Lorinda
Cc:Pate, Jeremy
Subject:RE: Metova, Inc.
Lisa and Lorinda,
We will not be receiving a copy of the fully executed AEDC application because the City is not a party. It was
simply supplemental information for the agenda packet. Passage of the Resolution was the only action or
paperwork required of the City. Feel free to process the Resolution as is.
Blake
--
Blake E. Pennington
Assistant City Attorney
Tele: (479) 575-8313
bpennington@fayetteville-ar.gov
From: Pate, Jeremy
Sent: Tuesday, December 22, 2015 2:55 PM
To: Pennington, Blake <bpennington@fayetteville‐ar.gov>
Subject: FW: Metova, Inc.
Hi, Blake.
Please see the attached resolution and below email for a little more context.
Is there any reason for the City Clerk to “hold” these types of items until AEDC respond with a signature on the
application from Metova that is included in the agenda packet? In tax‐back items before Metova, we’ve not even seen a
copy of the application. The Mayor is not required to sign anything, we just send them the resolution that he has signed,
approved by the Council.
Lisa was asking me my thoughts; since there is a blank for the AEDC signature on the application, that’s why they are
placing it in a holding file. However, I’m not sure that is even needed. My opinion is that all we are asked to do is support
the application via a Resolution. Once that is complete, we can close the item.
Your thoughts?
Thanks,
Jeremy
From: CityClerk
Sent: Tuesday, December 22, 2015 2:40 PM
To: Pate, Jeremy <jpate@fayetteville‐ar.gov>
2
Cc: Marr, Don <dmarr@fayetteville‐ar.gov>; Smith, Lorinda <losmith@fayetteville‐ar.gov>
Subject: Metova, Inc.
Please see the attached resolution passed by Council at the December 15, 2015 City Council
meeting. We will send two originals interoffice mail, we need signatures from AEDC. This item
will be placed in the holding file until we get the original signatures. Please let me know if you
have any questions.
Have a nice day.
Office of the City Clerk Treasurer
113 W. Mountain Street, Suite 308
Fayetteville, AR 72701
479.575.8323
cityclerk@fayetteville-ar.gov
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