Approval of NetApp Grant AgreementSeptember 11, 2012Page 2
salary versus the projected average annual salary. Similarly, if the actual salary is above the projectedamount, the funds paid will be increased by a proportional amount. Funds will be distributed after verification of job creation and retention from the prior year on an annual basis. New employment will bemeasured from a base of 439 employees as of May 1, 2012.
Each year’s grant installment will be funded by the City’s annual EconomicDevelopment Incentive Fund appropriation and is subject to annual appropriations.As part of GWEDC’s due diligence for this project, the return-on-investment was calculated for the proposed incentive package.City of Wichita 3.93 to oneGeneral Fund 1.97 to oneDebt Service NASedgwick County 1.98 to oneUSD 259 NAState of Kansas NA
Economic Vitality and Affordable Living. The use of economic development incentivesto ensure the expansion of the region’s information technology cluster provides economic diversity andgrowth.
The Law Department has approved the documents as to form. The City’sexercise of home rule authority is necessary to provide the cash incentive; this requires the adoption of anordinance for approval. Compliance with cash basis and budget laws will require adoption of subsequentresolutions, under the home rule ordinance, to authorize disbursement of future-year grant funds.
It is recommended that the City Council approve the EconomicDevelopment Grant Agreement with NetApp, Inc., place the Home Rule Ordinance approving theagreement on First Reading and authorize the necessary signatures.
Economic Development Grant Agreement, Ordinance
Year Net NewEmploymentNet NewWagesTotalEmploymentTotal Wages
2013 118 @ $70,000 $8,260,000 557 $42,941,0002014 75 @ $71,400 $5,355,000 632 $49,154,8202015 75 @ $73,500 $5,512,500 707 $55,780,1122016 75 @ 75,750 $5,681,250 782 $62,786,0052017 75 @ $78,000 $5,850,000 857 $70,143,830