BY COUNCILOR GILBERT:
RESOLVED, that the proper city officials are hereby authorized to enter into an amendment substantially in the form of that on file in the office of the city clerk as Public Document No. _____________ to the development agreement with Sinex Aviation Technologies (Sinex) increasing the time for job creation and maintenance.
STATEMENT OF PURPOSE: Sinex is a Duluth-based company which produces software that tracks task and labor data for aircraft maintenance. The City of Duluth entered into an agreement with Sinex providing a forgivable loan in the amount of $250,000 to assist Sinex in expanding and relocating its operation into the Duluth Technology Village. In exchange, Sinex which as of December 1, 2001, employed 28 people, agreed to lease property in the Technology Village and create 75 new jobs within 15 months of occupancy in the Technology Village. Jobs must pay an average hourly wage of at least $21.63, excluding benefits. Sinex is unable to meet its job creation goals due to events of September 11, the subsequent steep descent in the financial market in 2001, the fundamental business model shift within the industry, the war in Iraq, and recent sharp increase in oil prices. See attached letter. Sinex desires an extension of time for job creation and maintenance. This amendment would allow Sinex until June 30, 2005, to create an additional 47 new jobs above its 28 base-line and until June 30, 2006 to create an additional 27 new jobs, for a total of 75 new jobs.