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

• 18 companies

• $ 9,897 cost per job

• 1766 projected jobs (through 2013)

• 1096 jobs created as of December 31, 2001 (113 jobs above projections to date)

Private Investment

• 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 City’s 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.

Tax Abatements

• 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.

Job Creation

• 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 Successes

• Diversification-

• 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

• Quality jobs-

• 1096 jobs ~ in sampling 84% of the jobs created, the median wage is conservatively $11.75 hourly

• Promote Loans-

• Loans are 23% of total funding (goal was 25%)