A resolution will be introduced at the Fort Wayne City Council meeting Tuesday that would give Do it Best a grant of up to $4 million if it is approved.
The resolution asks for a $2 million commitment from the city for its half of a grant to aid in Do it Best's headquarters relocation to the Electric Works' west campus. It mentions another $2 million from the county that requires approval by Allen County Council.
Do it Best has run out of space at its New Haven headquarters and is set on moving. Do it Best's board has sought relocation packages in other states but wants to move to Electric Works.
With the expansion, Do it Best is expected to retain 413 employees and hire an additional 90 with an average salary of $75,000 a year, the agreement says. The relocation is expected to cost the company about $20 million.
Nancy Townsend, Community Development director, wrote in a letter to the council that the city's portion will come from the city economic development income tax the Community Development division receives annually.
“This means that no additional funds need to be budgeted by the city above the customary CEDIT budget approvals to Community Development – no net impact to overall city budget,” Townsend said in the letter.
The grant would be spread out over seven years. If the county pitches in $2 million, the payments will be $570,000 each year except for the seventh year, when Do it Best will receive $580,000, the agreement says.
Without the county's portion, the business would receive $285,000 a year for the first six years and $290,000 in the seventh year.
The agreement says that Do it Best will forfeit the remaining grant funds if it closes operations or moves during the seven-year period, including the disbursement for the year it moves or closes.
If approved, the first payment is expected to be made in 2023 after the business has “substantially moved” to Electric Works.
If introduction is approved Tuesday, City Council will discuss the resolution and vote on it at a future meeting.
dfilchak@jg.net
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September 11, 2021 at 12:11PM
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