HomeMy WebLinkAboutLoan Applic - GSS CoDESCHUTES 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.
Responses to the questions below need not be limited to the space provided, but
please keep total application materials to no more than 12 pages.
Number of Employees: 5
Company Request: $18,000
EDCO Recommendation: $18,000
Proposed Job Creation by end ofQ4 2013: 10
Average Pay for New Employees (all positions, excluding commissions): $48,672
Capital Investment: $100,000
Industry: Mapping/Agriculture/IT
Website: www.geospatialsolutions.com
Section I -General Infonnation
Date: 7/22/11
Company Name: Geo-Spatial Solutions Inc. (GSS)
Location (City/County): Bend (Deschutes County)
Business Type: Technology
Industry Type: Mapping/Agriculture
No. of Employees: current: ___5____ expected new:___10____
HQ Address: 598 NW Hill St, Bend, OR 97701
State & Federal Taxpayer ID: State: 1002158-5, Federal: 93-1243008
Company Contact: Rusty Merritt
Title: President/CEO
Phone: 541-330-0371
Email: rusty@geospatialsolutions.com
Parent Company: N/A
Website: www.geospatialsolutions.com, www.gisdirect.com
Section II – Company Profile
1. Please provide a brief overview of your business.
Founded in 1998, Geo-Spatial Solutions Inc. (GSS) provides technology services and
mapping solutions to water supply providers (agricultural and domestic) that want to use
information to improve staff efficiencies but are often confused about what steps to take or
knowing how much the technology will cost. The company’s flagship product is a hosted,
turnkey, subscription based (GIS) mapping application that assists with water operations,
asset management, and land records administration.
The Company has enjoyed strong customer support from small to medium water supply
providers, particularly with irrigation and water districts with 3-25 employees. Currently, 33
water districts from five western states subscribe to the product. In addition to the product
offering, the company provides professional, project-based consulting services to an array of
organizations in the water resource vertical. Examples of recent service contracts include
public utility districts, private water districts, tribal government, and most recently, the
Canadian federal government.
The Company is entering an aggressive growth phase that centers on evolving its first-
generation product into a modular, scalable collection of web and mobile products. Best
described as a portfolio of content services and applications that support water supply
providers in the areas of asset management, planning and analysis, field mobility, and
operational awareness, the solution provides on-demand access to content and apps that
combine to streamline information management, improve operational awareness, increase
collaboration, boost productivity, and lower operational costs.
When combined with an attractive pricing structure, a unique brand, and an intense focus on
selling and marketing efforts, the Company believes it can swiftly develop and bring to
market the its new product offering. With an estimated 1,400 agricultural water supply
providers and 52,000 domestic service providers in the U.S., and a comparable market size in
Canada, the Company believes it can scale its subscriber base from 33 to 300 over the next
five years.
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?
The Company is in an aggressive growth phase and is currently seeking $275,000 in funding
to scale its subscriber base from 33 to 300 over the next 5 years. The primary uses of
proceeds are product development, selling and marketing, product support, capital expense
purchases, and related transition costs. Within each of the areas of product development,
selling and marketing, and product support, the company anticipates hiring 16 new staff over
the next five year period according to the following schedule:
Y1 Y2 Y3 Y4 Y5
Product Development 3 5 7 8 8
Sales & Marketing 2 4 4 4 4
Consulting Services 3 3 5 5 7
General & Admin 2 2 2 2 2
Total Headcount 10 14 18 19 21
Current plans call for introducing the new platform in Q4 of 2011. In order to meet this
aggressive timeline, the Forgivable Loan Fund provides reduces the amount required from
the private investment community and shortens the timeframe in which the company can
fully execute its five-year business plan. As soon as the company has $275,000 committed
from private and public sources, it will commence with said plan and make three immediate
hires with two more hires to follow in the first three months. Key hires include:
Director of Product Development
Director of Business Development
Web Application Programmer
Application Programmer/Developer
Marketing & Communications Manager
All jobs created as a result of the company’s growth initiative will offer competitive, family
wage jobs. Full-time employees will be entitled to medical benefits, a cafeteria plan, and
supplemental insurance.
Section IV – Grant Terms and Conditions
1. Total Employment
Grantees must create at least 5 new primary, family wage jobs (at $35,300 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).
2011 (Q3)
Director of Product Development
Web Application Programmer
Application Programmer/Developer
2011 (Q4)
Director of Business Development
Marketing and Communications Manager
Existing Jobs: 5
Total New Jobs: 5
Total Jobs: 10
Total Wages + Benefits (Q3/Q4): $259, 034
Average Annual Wage: $51,806
Q-1 – 2012
Regional Sales Associate (2)
Product Support Specialist
Geospatial Content Manager
Existing Jobs: 10
Total New Jobs: 4
Total Jobs: 14
Total Wages + Benefits: $792,594
Average Annual Wage: $56,613
2013
Web Application Developer
Geospatial Content Manager
GIS Analyst
GIS Technician
Existing Jobs: 14
Total New Jobs: 4
Total Jobs: 18
Total Wages + Benefits: $1,088,375
Average Annual Wage: $60,465
2014
Web Application Developer
Existing Jobs: 18
Total New Jobs: 1
Total Jobs: 19
Total Wages + Benefits: $1,166,707
Average Annual Wage: $61,405
2015
GIS Technician
GIS Technician
Existing Jobs: 19
Total New Jobs: 2
Total Jobs: 21
Total Wages + Benefits: $1,220,056
Average Annual Wage: $$58,097
2. Capital Investment (Optional)
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.
Proceeds from the Business Development Forgivable Loan Fund will be used to offset costs
related to brining the company’s new platform to market. Costs include:
Server infrastructure and monthly hosting costs
License costs for Esri commercial use software
Other production related hardware, software, and equipment
Operational Expenses 2011 2012 2013 2014 2015
Server/Hosting $ 3,600 $14,400 $28,800 $43,200 $57,600
Esri ASP License $ - $24,000 $24,000 $30,000 $48,000
Capital Expenditures 2011 2012 2013 2014 2015
Staff Computers $16,500 $ 2,500 $ 3,500 $ 5,000 $ 5,000
Office Equipment $ 8,000 $ 2,500 $ 3,500 $ 3,500 $ 2,500
Production Servers $ 5,000 $ 5,000 - $ 5,000 $ 5,000
Software $10,000 $ 1,000 $ 5,000 $14,000 $ 7,000
$45,500 $16,000 $17,000 $32,500 $22,000
Proceeds from the Business Development Forgivable Loan Fund will be used to offset costs
related to product development and deployment, specifically new costs that will be incurred
as a result of growth initiatives.
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?
Current estimates suggest that as much as 80-90% of the company’s customer base exists outside of
Deschutes County. The company currently serves custome rs in California, Oregon, Washington,
Idaho, and Montana. More recently, the company entered into 2 -year contract with the Canadian
government to provide its web-based mapping solution in the province of Manitoba (CAN).