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HomeMy WebLinkAboutBusiness Loan Fund ApplicationDESCHUTES COUNTY Business Development Forgivable Loan Fund Number of Employees: 215 Company Request: $50,000 EDCO Recommendation: $50,000 Proposed jobs transferred and created in Deschutes County by end of Q3 2013: 35 Average Pay for New Employees (all positions, excluding benefits): $52,905.61 Capital Investment: $4,000,000 by Ql 2013 Industry: Transportation and Logistics Website: www.centraloregontruck.com -APPLICATION ­ The Business Development Forgivable Loan Fund disburses Deschutes County moneys for the purpose of increasing employment and capital investment in the county. 'The Fund has been established to offset the costs of business relocation to and within Deschutes County, including moving of equipment, purchase or construction of facilities, and site improvements such as the extension of public services and utilities. EDCO has been designated by Deschutes County as the administrator of this fund. The magnitude of funding is dependent on job creation (typically $500­ $1000 per job). Key Requirements Are: • Grantees must create at least 5 new primary, permanent family wage jobs and shall have retained those jobs for at least one year. • Optional: Grantees must document the investment of at least $5 of new, taxable investments for each $1 allocated from the Business Development Forgivable Loan Fund. Section I -General Infonnation Company Name: Central Oregon Truck Company, Inc. Location (City/County): Prineville, Crook -Relocating to Redmond, Deschutes Business Type: Long-haul, Flat-bed trucking ­48 states and Canada Industry Type: Trucking No. of Employees: 215 HQ Address: 422 NW Beaver St., Pnneville, OR 97754 State & Federal Taxpayer ID: Fed -93-1083989 State -06888512 Company Contact: Paul Coil Tide: CFO Phone: 541-416-2180 x152 Email: pcoil@cotruck.net Parent Company: NA Website: Centra/Oregon Truck-com Date: March 1, 2012 Section II -Company Profile 1. Please provide a brief overview of your business. The company was founded in Central Oregon 20years ago and began as a simple brokerage operation offourpeople. The Company has grown to 175 trucks and 215 employees with anticipated growth byJuly 1, 2012 to 206 trucks and 250 employees. The 250 employee count includes the addition ofthe 4 headquarters positions listed above and 31 new driving positions (driver positions average wages are $45,293, excluding benefits). While we can'tguarantee the driving positions wiD be hired 10caDy, we do employ a significant number ofdrivers who reside in Central Oregon. The company provides long-haul, Bat-bed services to 48 states and most ofCanada. All ofthe owners are Central Oregon residents and have raised their families here. The Redmond site wiD be new corporate headquarters, recruiting, training, maintenance operations, and will accommodate much more growth in our sales/brokerage operations. Section III -Project Activities 1. Please outline the proposed activities for these funds. How will access to the Business Development Forgivable Loan Fund support your strategic objectives, while increasing your employment and investment in the Central Oregon region? To facilitate ourgrowth, new office and improved training facilities are required. We will be constructing a 26,000 square foot facility ofwhich a substantial portion wiD be dedicated to training and which will aDow us space to double our office staffing Udown the road''. Upon completion, which we expect before January 1, 2013, the 31 current employees working outside Deschutes County will immediately move to the Redmond facility. In addition, we anticipate a minimum growth of4 additional employees to accommodate the growth in our customer base and required brokerage services during this same time expanding yet again the number ofnew Deschutes County jobs. This is just the first step ofthe Company's growth plan. Section IV -Grant Terms and Conditions 1. Total Employment Grantees must create at least 5 new primary, family wage jobs (at $35,090 per year) and shall have retained those jobs for at least one year. Please provide a quarterly projection of expected job creation, including titles and/or descriptions. Also indicate expected wages. The completion ofour facility wiD bring 31 Headquarter employees to Redmond (not presently employed in Deschutes County) and 4 new employees at a company average annual compensation of$57,405. -see below for additional information regarding wages? excluding benefits. Quarter Q12013 Q22013 Q32013 Q42013 Total Positions 31 2 2 o 3S Average \Vage per new position $52,905.61 # of new positions over next 12 months 3S Please be aware that these figures do not include the 14 jobs we already have in Deschutes County. 2. Capital Investment -Optional Although not required, capital investment plans are a helpful indicator of future plans. Grantees must document the investment of at least $5 of new, taxable investments for each 51 allocated from the Business Development Forgivable Loan Fund. Please provide a quarterly capital investment projection. Estimated new building construction costs ~ $4 million. In addition to the building? ourgrowth plans will require us to expand our Beet equipment owned by more than $3.3 million? the orders and financing for which are already in place. 3. Primary Employer Test Grantees must be private ftnns in manufacturing, high-technology, or technology-based businesses which have more than 75% of customers outside Deschutes County. What percentage of your customer base exists outside Deschutes County? 99%