Title
Discussion and Possible Approval of Draft Term Sheet for a Local Economic Development Assistance (LEDA) Project with SALA Los Alamos Event Center, LLC (SALA)
Recommended Action
I move that Council approve the draft term sheet for a LEDA project with SALA and direct the County Manager to return to Council with an authorizing ordinance and related project participation agreement for consideration.
County Manager's Recommendation
The County Manager recommends that Council approve the draft term sheet as requested.
Body
The County has an established local economic development plan (see attachment B) that provides the guidelines for its Local Economic Development Assistance (LEDA) program. The County first established this program over 20 years ago and has utilized this mechanism on a wide variety of projects. On February 1, 2022, Council concluded a series of discussions related to business development assistance programs and approved the LEDA Guidance in Attachment C. This item is included for future reference as the application being considered here was not the result of a County initiated solicitation. In June the County received an unsolicited LEDA application from SALA for consideration. A high-level outline of the project is:
SALA will acquire and install equipment needed to add virtual reality and immersive programming to their venue. They will also repair, replace and upgrade other physical and equipment elements throughout the facility.
SALA will produce and present an immersive film, tentatively titled as the Los Alamos Gateway Experience. If feasible, SALA will also produce and present a second immersive film, tentatively titled as Manhattan Project, Behind the Gate.
The County will provide up to $600,000 to support the project (grant $450,000 and loan $150,000).
Additional details are included in the draft term sheet in Attachment A.
Staff has reviewed the application and worked with, and negotiated with, SALA to develop the attached draft term sheet for the LEDA project. An initial review of the application indicates that the project is permitted and the applicant qualifies for economic assistance under the County's Local Economic Development Plan. The initial review also indicates that the project supports a number of the County's economic development and Council strategic goals.
Before proceeding with a complete ordinance and related project participation agreement, staff wanted to present the draft term sheet for Council consideration at this point in time. This allows Council and the public to provide feedback early in this process.
If Council wishes to proceed, staff would continue to work with SALA to develop a project participation agreement as required and bring that back to Council with an authorizing ordinance. The goal would be to introduce these items in January 2024.
Alternatives
Council could not approve the term sheet and express no interest in the proposed project, or Council could approve the term sheet with amendments and ask staff to re-negotiate with SALA.
Fiscal and Staff Impact/Planned Item
The County's Economic Development Fund budget includes $400,000 for these types of projects. If this is ultimately approved as proposed, an additional $200,000 would need to be utilized from the General Fund. The agenda material for the consideration of an authorizing ordinance will include a budget revision.
Attachments
A - Draft term sheet for LEDA project with SALA
B - Local Economic Development Plan
C - Recent LEDA Guidance