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HomeMy WebLinkAboutEcon Dev Fund Request0 Department of Administrative Services Dave Kanner, County Administrator 1300 NW Wall St, Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 www.co.deschutes.orus December 14, 2010 TO: Board of Commissioners FROM: Dave Kanner RE: Application for economic development funds For your consideration at the work session of December 20, 2011, is approval of an application from G.L. Solutions for $50,000 from the County's Economic Development Fund. G.L. Solutions is a software developer specializing in applications for regulatory agencies. They are proposing to use the funds to offset relocation expenses to a larger facility, as part of a plan to more than double the size of the company's staff. EDCO recommends approval of this request. Enhancing the Lives of Citizens by Delivering Quality Services in a Cost -Effective Manner DESCHUTES COUNTY Business Development Forgivable Loan Fund - APPLICATION - The Business Development Forgivable Loan Fund disburses Deschutes County moneys for the purpose of increasing employment and capital investment in the country. 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 service 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 $1,000-$2000 per job). Key Requirements Are: • Grantees much create at least 5 new primary, permanent family wage jobs and shall have retained those jobs for at least one year. • Optional: Grantee must document the investment of at least $5 of new, taxable investments for each $1 allocated from the Business Development Forgivable Loan Fund. G.L. Solutions Number of Employees: 34 Company Request: $50,000 EDCO Recommendation: $50,000 (39 jobs) Proposed Job Creation by end of Q4 2011: 39 new employees Average for New Employees (all positions, excluding commissions): $65,724 Capital Pay Investment: $550,000 Industry: Software Website: http://www.glsolutions.com/ Section I — General Information Company Name: GL Solutions Location (city/County): Bend, Deschutes Friday, December 17, 2010 Page 1 Business Type: High Technology Industry Type: Software No. of Employees: GL Solutions currently employs 34 full-time employees. HQ Address: GL Solutions, 960 SW Disk Drive, Suite 101, Bend, OR 97701 State & Federal Taxpayer ID: Oregon Registry: #724776-81, Federal Tax ID: #43-1797439 Company Contact: Eric Staley Title: Vice President Phone: 541-312-3662 x103 Email: Email Address: staley@glsolutions.com Parent Company: None Website: http://www.glsolutions.com Section II — Company Profile 1. Please provide a brief overview of your business: GL Solutions serves more than 45 clients in 18 states with GL SuiteTM, commercial off-the-shelf software tailored for regulatory agencies. GL Suite is a comprehensive, web -based database solution successfully implemented in regulatory environments ranging from medical licensing boards, inspections for compliance with accessibility laws, to the licensure of public accountants. GL Suite's ease-of-use, coupled with GL Solutions' passion for improving productivity, ensures the success of each agency. 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? GL Solutions' access to the Business Development Forgivable Loan Fund would induce direct investment into the state of Oregon by furthering job retention opportunities. We are experiencing growth within our company that will require us to add 39 new positions over the course of the next year. We feel that this growth of our company will provide an investment in Friday, December 17, 2010 Page 2 the Central Oregon region by providing jobs and this investment will in turn help GL Solutions to purchase new equipment and provide training for these new employees. GL Solutions requests $2,000 per job up to the maximum available loan of $50,000 to facilitate job creation and offset office relocation expenses to a larger facility. Furthermore, the revenue generated by this growth is earned and received at a slower rate than is typical for GL Solutions' client -base. This requires GL Solutions to make significant investments for growth and relocation prior to invoicing contract deliverables. The Business Development Forgivable Loan Fund will bridge the gap. 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. GL Solutions is a software development company based in Central Oregon, serving government agencies and private firms across the United States. GL Solutions grew from a start-up to one of the largest software companies in the region. GL Solutions' success comes from a family of naturally talented individuals that share common vision and values. GL Solutions hiring processes identify people with core values comparable to that of the company. Every employee contributes to GL Solutions' direction and success. The company values each person's perspective on problems, solutions and long-term goals. GL Solutions shares performance and management information company -wide. GL Solutions has identified the following thirty-nine new primary, family wage jobs that we are expecting to fill within the next six months: Management Analyst: The Management Analyst gathers and analyzes internal data and workflow to 1) identify bottlenecks, 2) improve the efficiency and productivity of GL Solutions' production systems and processes and 3) make recommendations for the most effective use of resources. Management Analysts have strong analytical skills and the desire to learn about software; related prior experience is preferred. Four (4) Project Coordinators: The Project Coordinator is responsible for coordination of project planning details from project initiation through three months of warranty. Project Coordinators work with clients Friday, December 17, 2010 Page 3 to develop new installations through a project approach to achieve a profitable, high-quality installation that establishes a long-term symbiotic relationship between GL Solutions and the client. The Project Coordinators provide client project management oversight throughout the GL Solutions implementation process. Eight (8) Quality Assurance Specialists: The Quality Assurance Specialist (QAS) works with every team at various stages of installations and development to test the work and progress of the client application. The QAS works closely with internal employees throughout the entire span of a project. Responsibilities include identifying, reporting, documenting, and routing application issues for eventual handling and resolution. The QAS tests each client application at specified phases of development prior to client/user testing and acceptance. Seven (7) Software Developers: The software developer position involves creating reports, writing business rules, and maintaining a mature off-the-shelf software product. Applicants must have experience or training in report tools like Crystal Reports and languages including XML, XSLT and SQL. Experience with Visual Basic and web page development in Visual Studio preferred. Three (3) Business Analysts: The business analyst position conducts organizational studies and evaluations, designs software systems and procedures, and prepares operations and procedures manuals to assist clients in operating more efficiently and effectively. The Business Analysts identify and document how our clients use software to help them o perate more efficiently. They possess strong listening, interviewing, logical thinking and problem -solving skills, and they have the ability to understand complex office procedures. Configuration Specialist Manager: The Configuration Specialist Manager coaches and builds an engaged team of employees while ensuring that company goals are achieved. The team configures business rules in the software using XPATH and light SQL, and consists of talented, dedicated professionals. Nine (9) Configuration Specialists: The Configuration Specialist configures business rules in the software using XPATH and light SQL. Two (2) Sales Associates: The Sales Associate is responsible for contacting prospective clients and encouraging their interest in GL Solutions' products and services. The position executes a defined solution - sales process that includes the prospecting and qualifying steps. Friday, December 17, 2010 Page 4 Technical Writer: The Technical Writer will be responsible to write and edit a variety of technical materials, such as requests for proposals, training guides and how-to documents, sales and marketing collateral, and, as needed, website content. This position will work with the different GL Suite Departments to support key activities within the organization such as Knowledge Management, Systems Improvement, People and Sales and Marketing. Agency Specialist Manager: Supervise a team of Agency Specialists. The ASM has primary responsibility for building a team of engaged, productive employees who discover and act on client needs, build client relationships, and resolve client issues. Experience managing employees in a business environment preferred. Agency Partner: Agency Partners serve as the primary goal contact between GL Solutions and clients. The primary responsibility is to ensure that our partnership results in satisfied clients through thoughtful execution of the plan established by the Agency Strategist and the client. Agency Partners begin the relationship building process by conducting sales activities with prospective customers. An Agency Partner works within a well-defined system for managing day-to-day client requests and interacting with other GL Solutions teams. Trainer/HR Specialist: Assist the Human Resources Manager in executing personnel -related functions. The HR Specialist supports all key activities related to employee recruitment, selection, training, and retention and personnel information systems. The HR Specialist interfaces with all GL Solutions' departments to support and facilitate employee needs. Experience supporting human resource functions within a business environment is preferred. 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 $1 allocated from the Business Development Forgivable Loan Fund. Please provide a quarterly capital investment projection. GL Solutions projects the following costs associated with hiring, training and relocation in the next quarter: Relocation expenses $5,000 — Fiber/L.A.N. relocation $58,500 — relocation expense per staff ($1,500 x 39) $63,500 total relocation expenses Training expenses $ 10,000 — Video production of training modules Friday, December 17, 2010 Page 5 $ 36,000 — Trainer salary (3 mos @ $12,000/mo) $ 444,600 — New hire salary in training ($3,800/mo X 3 mos X 39 new hires in Q1) $490,600 total training expenses (salary expenses include wages and benefits) $554,100 Total training and relocation expenses 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? GL Solutions is a private firm that provides high technology based software to a customer base that is 100% outside of Deschutes County. Friday, December 17, 2010 Page 6