HomeMy WebLinkAboutLoan Fund App - AlchemyDESCHUTES COUNTY/ CITY OF BEND
Business Development Forgivable Loan Fund
- APPLICATION -
The Deschutes County Business Development Forgivable Loan Fund and City of Bend Business
Development Forgivable Loan Fund disburse moneys for the purpose of increasing employment and
capital investment with each respective jurisdiction. 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 and City of Bend as the administrator
of this fund. The magnitude of funding is dependent on job creation (typically $1,000-$2,000 per
job).
This application may be considered a public record and thus be made available for inspection by the
public upon request. Under Oregon public records law, certain trade secrets and proprietary
financial information may be withheld from disclosure. If the applicant wishes for such information
to be withheld from disclosure, please submit a separate letter containing that request. EDCO,
Deschutes County and the City of Bend agree to withhold such information from disclosure to the
extent permitted by law.
Key Requirements Are:
• Grantees must create at least five (5) new primary, permanent family wage jobs and shall
retain those jobs for at least one year.
• Optional: Documented capital expenditures will increase strength of application. Grantees
are urged to document the investment of taxable investments (new equipment, building
improvements) to demonstrate expansion and growth commitment. Please provide a
quarterly capital investment projection.
Number of Employees: 10
Company Request $26,000
EDCO Recommendation: $26,000 (13 jobs at $2,000 per job)
Proposed Job Creation by end of Q4 2012: 13 new employees
Average Pay for New Employees (all positions, excluding commissions): $75,000
Capital Investment: $2,000,000
Industry: Software Provider -Mainframe Migration
Website: http_://alchem��okutions.co_m
Responses to the questions below nd not 1e lintel to the space pruzider4 but
please keep total appliortion rnzterials to no nror than 12 pates.
Section I — General Information
Date: March 31, 2011
Company Name: Alchemy Solutions, Inc
Location (City/County): Bend,
Business Type: Software Provider -Mainframe Migration
Industry Type: Software
No. of Employees: current: 10 expected new: 13
HQ Address: 550 NW Franklin Ave Suite 358, Bend OR 97701
State & Federal Taxpayer ID: 26-3598423
Company Contact: Jim Harrer
Title: President
Phone: 541-323-2855
Email: jharrer@ alchemysolutions .com
Parent Company.
Website: http://alchemysolutions.com
Section II — Company Profile
1. Please provide a brief overview of your business.
Alchemy Solutions is a global, world-wide solutions provider enabling companies dependent on the
IBM Mainframe infrastructure, to migrate to a Microsoft Windows .NET platform resulting in
significant cost savings to our clients. Alchemy provides the software, project management and
customer support to achieve a successful migration.
Our workforce is highly skilled in Microsoft server (.NET) as well as IBM Mainframe (Z/OS,
AS400) platforms.
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? Explain why public funding is
necessary for the success of this expansion or relocation. Please be specific. How will
these funds help your company grow and add jobs?
We plan to expand our operations in Bend considerable over the next several years. We have
invested $1.8 million dollars in the purchase of a new building on Chandler. Before we can move into
the new building we'll need to build -out a new server room. In addition, with the new staff we're
hiring we'll need to purchase furniture, computers and expand our phone equipment.
The new building will also be equipped with new state-of-the-art video conferencing capabilities
allowing us to conduct video training sessions to our global customers from the Bend location. We'll
need to invest in new HD video displays and well as a new Microsoft Lync server.
Finally, we plan to build a state-of-the-art training room in Bend, equipped with portable docking
stations, desks and dedicated servers enabling us to fly in our global business partners for on-site
instruction. This training facility will also allow us to expand our worldwide consulting practice
enabling us to hire more consults, trainers and administrative support for our growing high tech
practice.
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 average
wages for all: A) new jobs to be created and B) for total company employment (i.e. sum of
all wages divided by total employees, new and existing).
Current headcount for Alchemy Solutions:
13 People, Average Annual Salary is $75,000
Immediate hires for Bend, Oregon
VP Marketing
Office Admin
Marketing Product Manager
Events Marketing Manager
Support Engineer
Software Developers (2 needed)
Additional head count planned for Q3 time frame:
4 — Professional Services Consultants
2 — Sales Engineers
Business growth will dictate future hiring opportunities.
2. Capital Investment (Optiortd)
Although not required, capital investment plans are a helpful indicator of future plans and
viability of expansion or relocation execution. Grantees are asked to document the
investment of taxable investments (equipment, new construction). Please provide a quarterly
capital investment projection.
Purchase of the Fraser Building on Chandler was a $1.8 million capital expense. Tear -down and
moving expenses from the Franklin building is budgeted at $25,000.
Tenant improvements and the build out for the new server room is budgeted at $45,000.
New computers and servers to support this growth is budgeted at $50,000.
New Video Conference capabilities is budgeted at $30,000
3. Primary Employer Test
Grantees must be private firms 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?
100%