Item # 7F.
October 19, 2011
CITY OF HALLANDALE BEACH, REGULAR CITY COMMISSION MEETING
Date: October 11, 2011
Director’s Name: Alvin B. Jackson, Jr.
Department: Community Redevelopment Agency
Subject: Consideration of an Application by High Tech Video Security International, for funding in the amount of $50,000 through the Hallandale Beach Community Redevelopment Agency's Business Incentive and Enticement Loan Program CAD#005/02
Why Action is Necessary
Pursuant to Section VI. B. of the City of Hallandale Beach Community Redevelopment Agency (CRA) Plan, the Hallandale Beach CRA Board of Directors provides policy and management oversight in carrying out the programs and objectives of the Hallandale Beach CRA Plan. Some of these objectives include community revitalization, sustaining existing business in the City and attracting new business to locate in the City.
What Action Accomplishes
This action authorizes the City Manager to execute all necessary documents for the Business Incentive/Enticement Program to grant up to $50,000 to High Tech Video Security International to assist with advertising, equipment, and office supplies. This assistance will create up to three (3) full-time positions.
The terms of the program are as follows: typically 15% of the loan is forgiven and the remaining 85% is payable at 4% interest over 10 years. The applicant will be required to sign a promissory note, personal guaranty and performance agreement to secure the remaining 85% of the loan.
At this time, HTVSI does not own the property where the business is located; therefore, City Commission/CRA Board of Directors approval is necessary.
Is this Action Goal Related
This action specifically addresses the City’s Strategic Priority of Economic Development by supporting business owners in maintaining and improving property values and providing a sustainable community with a healthy balance of residential, commercial and light industry that provides a mix of local employment opportunities.
Previous Action Taken
In Fiscal Year 2002 the City Commission/CRA Board of Directors approved the establishment of a Business Incentive Loan Program (See Exhibit 1). In establishing this program, the City Commission/CRA Board of Directors authorized up to $200,000 in assistance to businesses interested in relocating into the CRA area whether through new construction or rehabilitation. Award of an incentive would be considered if a new business was seeking to locate within the City/CRA boundaries or if an existing business were expanding.
STAFF RECOMMENDS APPROVAL OF THE ABOVE MOTION:
The Business Incentive/Enticement Loan Program was created with the purpose of assisting businesses that were interested in relocating within the Community Redevelopment Area whether it is through new construction or rehabilitation. Funds can be used to help participants pay for start-up and construction costs. The costs may include, but not be limited to: lot preparation, demolition, new construction, and building materials.
High Tech Video Security International (HTVSI) is located at 303 S.W. 10 Terrace in Hallandale Beach. It was incorporated in May, 2011 and is a surveillance equipment firm offering a variety of security solutions.
The mission of HTVSI is to deliver quality customer service in the video surveillance industry. High Tech Video Security International offers cost saving opportunities to businesses by detecting and preventing manipulation or abusive practices (i.e., stealing merchandise). The security market is a growing industry as a result of rapidly growing global concerns over safety and security. Surveillance equipment allows businesses the ability to protect themselves against arson, overnight attack, and employee theft. It is also a great mechanism to avoid vandalism. HTVSI offers various services to include design, manufacture, and 24-hour a day 7-days a week live ordering and live tech support. The success of High Tech Video Security International is great customer service, quality products, strong warranty, availability and timely shipment of products. With the funding provided by the Community Redevelopment Agency, High Tech Video Security International will be able to meet the demands of its growing consumer base.
On June 20, 2011 CRA staff met with the High Tech Video Security International, CEO Leo Killian to discuss the loan program. On June 21, 2011 staff received a completed Business Incentive Loan Program application, Letter of Intent, Business Plan and miscellaneous required documentation with details of funds needed and High Tech Security International request of $50,000 to assist with purchasing capital, advertising and miscellaneous office equipment that would help create up to 3 new full-time positions within the company (See Exhibit 2).
Based upon CRA staff’s analysis and meeting with the owner of High Tech Video Security International, staff requests approval for funding with the following conditions:
1. Business to provide the Community Redevelopment Agency with an Annual Performance Review, during the funding term of 10 years.
2. Business to provide quarterly payroll documentation to ensure the creation of the 3 jobs as a result of the assistance provided from the CRA.
3. An executed Performance Agreement, Promissory Note and Personal Guaranty by HTVSI CEO, Leo Killian (See Exhibit 3).
Fiscal Impact/Cost Summary:
If approved, funding in the amount of $50,000 is available in CRA Loan Program-Business Incentive Account # 130-6330-559-8311.Project # 006302.
Exhibit 1-Business Incentive/Enticement Loan Program Policy.
Exhibit 2- High Tech Video Security International (HTVSI) (i.e., letter of intent, application and State of Florida Articles of Incorporation).
Exhibit 3-Performance Agreement, Promissory Note and Personal Guaranty.
Exhibit 4-Copy of Business License Receipt for the City of Hallandale Beach
Prepared By: _______________________
Liza Torres, CRA Manager
Mark Antonio, City Manager Date
_____Approved _____Disapproved _____Hold for Discussion