Tuesday night the Manhattan City Commission received a report on the Manhattan Economic Development Opportunity Fund from Assistant City Manager Diane Stoddard.
Here are a lot of the fact and figures given to the Commission:
2000 Fund Summary
$8.7 million in Grants
$2.7 million in Loans
$11.4 million in Total Funding
$ 9,897 cost per job
1766 projected jobs (through 2013)
1096 jobs created as of December 31, 2001 (113 jobs above projections to date)
For every MEDOFAB dollar spent, there was over $4.79 of private or other public sector investment. (This figure does not include direct benefits, such as payroll, or indirect spin off benefits).
$11.4 million in investment leveraged $55 million in funding for a total of $66 million of investment in the community.
Fund Financial Projections
Current balance is approx. $277,000, taking into account the $800,000 encumbrance for Mercy Community Health Foundation.
Projected balance in 2010 is $2.3 million, based on assumption of no other applications being funded and loans are repaid as scheduled.
Special Committee Report
Dr. Don Wissman prepared report showing 21% estimated annual return on Citys investment from the MEDOFAB funds.
MEDOFAB funds have resulted in $21 million of new community payroll ~ this offset the loss of payroll from the downsizing of Ft. Riley in the early 1990s.
Funded companies paid over $600,000 in property taxes in 2001.
Only 3 of the 18 companies receiving MEDOFAB funds also received a tax abatement. Of the 3, only 1 received a 100% 10-year abatement. Due to claw-back provisions tied to job creation requirements, that company has made a payment-in-lieu of tax to the City nearly every year since the abatement was granted, in effect paying a percentage of property taxes.
1,096 FTEs created as of December 31, 2001
Job creation is above target for year 2001 by 113 FTEs (target was 983 by 2001)
As of June 1, 2002 cumulative job creation stood at 1,028 FTEs.
Fund recipients are diverse: manufacturing, customer support call centers, recreation, seed & venture capital, business incubator, research and development, community technology center, medical
Decrease Government Job Reliance-
Only 27 of the 1096 jobs created are public sector
Build on Existing Strengths-
12 of 18 fund recipients were local; KSU commercialization, community hospital expansion
Leverage private investment-
Nearly $5 for every $1 spent
Self-sustaining economic development activities-
Loans will continue to generate funds through paybacks, companies add to property tax and sales tax base
1096 jobs ~ in sampling 84% of the jobs created, the median wage is conservatively $11.75 hourly
Loans are 23% of total funding (goal was 25%)