BY PRESIDENT GILBERT:00-0748R
RESOLUTION SUPPORTING APPLICATION OF POINTS NORTH CONSULTING, INC., FOR A STATE CHALLENGE GRANT.
WHEREAS, pursuant to the Rural Development Act, local units of government are required to issue a sponsoring resolution on behalf of the business requesting financing through the Northland Foundation; and
WHEREAS, the city of Duluth has received a request to issue a resolution on behalf of Points North Consulting, Inc.; and
WHEREAS, it is consistent with the purpose of this governing unit to encourage employment and increase tax base.
NOW, THEREFORE, BE IT RESOLVED,
that the city of Duluth supports this application for funding on behalf
of Points North Consulting, Inc.
The applicant is a six-year old, locally-owned company that provides professional computer networking and computer software programming services. Its owner/president is John Foucault; their office is located in Canal Park. Points North is expanding their custom software development division, largely due to a favorable business relationship they have established with automated data processed (ADP), one of the country's largest providers of computerized processing, data communication and information services. Points North has successfully provided integration software for ADP when their clients have unique needs that are not readily compatible with prepackaged integration software. Due to establishing a successful track record with ADP, Points North is receiving regional and national referrals.
This is profitable work for Points North that warrants increased investment of the owner's time. It will also require an expansion of staff, equipment and office fixtures. It will also provide an opportunity to restructure the company's existing debt and to improve short-term cash flow management.
This expansion project has a proposed financing package of $120,000 that includes an $80,000, five year loan from Republic Bank plus this $40,000, five year loan from the Northland Foundation (approved contingent upon bank financing on November 2, 2000). The Northland Foundation loan is subordinate to the Republic loan.
With this expansion, Points North intends to hire within the next two years a total of six additional staff: two senior management positions and four application programmers/developers. These jobs are expected to provide annual salaries that range from $50,000 to $70,000.
This resolution is based upon the need for Northland's subordinated financing in this expansion package, as well as the creation of well-paying jobs in an industry that the city has targeted.