(Steve Ellis guest post) Heres your quick-read primer for Item #25 coming up at the City Council meeting on Tuesday, 1/28/14. Basically, this is an economic incentive deal whereby the NEDC will cut the purchase price of a piece of property for Immuno-Mycologics (IMMY) by $770,000. The City will repay the NEDC for up to $770,000 as IMMY hires people; the repayment will be on a per job basis where the payment is pegged to the salary according to an NEDC formula. The Citys explanation is here: https://drive.google/file/d/0B_MdAIXt-K_GX01URHV6ZGRxeTQ/edit?usp=sharing. Heres the scoop on IMMY: it is a Norman firm that does really interesting medical stuff - immy/. One of the owners is on the Board of Directors of the Norman Chamber of Commerce - normanchamber/chamber-information/board-of-directors/. The NEDC commissioned an Impact Analysis for the deal (https://drive.google/file/d/0B_MdAIXt-K_GVUlBR1ZLc01jUG8/edit?usp=sharing). The Impact Analysis was really quite poor; here are my criticisms (written while the firm was still a secret) - https://drive.google/file/d/0B_MdAIXt-K_GNUVhRVozel91dkE/edit?usp=sharing. (FWIW, I was unable to figure out what I thought would be easy enough in these comments - the Impact Analysis was too cryptic.) I learned a little bit more about the deal - including the identity of the firm - at the very end of last week and that knowledge is reflected in these slides which I will present at the City Council meeting on Tuesday (https://drive.google/file/d/0B_MdAIXt-K_GR3NzN0lVamVZNjQ/edit?usp=sharing). Heres my bottom-line conclusion: this is not a deal you would make on the basis of Return on Investment. If IMMY were owed by a friend, you might make this deal, not caring about a small loss/return.
Posted on: Mon, 27 Jan 2014 01:57:08 +0000
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