Title
Incorporated County of Los Alamos Ordinance No. 671 An Ordinance Adopting An Economic Development Project For Public Support Of UbiQD, A New Mexico Limited Liability Corporation and Related Project Participation Agreement.
Recommended Action
I move that Council adopt Incorporated County of Los Alamos Ordinance No. 671; An Ordinance Adopting An Economic Development Project For Public Support Of UbiQD, A New Mexico Limited Liability Corporation, and ask staff to assure that it is published as provided in the County Charter. I further move that Council approve the Project Participation Agreement in Attachment B.
County Manager's Recommendation
The County Manager recommends that Council adopt Incorporated County of Los Alamos Ordinance No. 671 and approve the related project participation agreement.
Body
UbiQD, LLC is a local startup that is a result of the Tech Transfer program at LANL. They are currently headquartered in a leased building located at 134 East Gate Drive in Los Alamos County. The company currently employs eight full time employees and of those eight, six are homeowners in Los Alamos County. UbiQD would like to purchase the building that they are leasing as part of an overall expansion plan.
The following is an overview of the company from their website:
UbiQD’s vision is that quantum dot (QD) window tints will power the smart cities of the future. Sunlight harvesting windows is the ‘killer app’ for UbiQD’s materials. However, these revolutionary new materials can improve lives via many other applications in energy, security, safety, design, biotechnology, and more. As we develop and scale towards supplying energy materials for facades of the built environment, we will also entertain other applications for our QDs, when there is pull.
At our Los Alamos, NM research and manufacturing facility, UbiQD is optimizing and improving its scalable, low-cost methods of making I-III-VI quantum dots, typically based on CuInSeS. The company also engages in R&D around emerging applications for its technology, and plans to license these technologies to customers.
UbiQD produces very bright quantum dots with a scalable low-cost process using environmentally friendly synthesis that is free of toxic heavy metals or other carcinogenic materials. Our dots also have stable optical properties that perform well under harsh environments such as high temperatures and moisture exposure.
The company is preparing to move from R&D into full manufacturing mode and needs to put significant investment into the facility. They believe that it is a prudent fiscal move to purchase the building therefore they will not be putting a huge investment in buildout and fixed equipment into a building they don't own. In order to complete the sale they have approached LAC for a LEDA Loan. UbiQD will be purchasing the building for $650,000 ($15,000 below appraised value is $665,000). UbiQD will put $65,000 down in cash, the current owner of the building will hold a five year mortgage of $260,000 and the LAC LEDA Loan will be for $325,000. The proposed terms for the LAC LEDA loan are that it will be a ten year interest free loan with deferred payments for the first three years; and LAC will have a collateral interest in the building as the first lienholder. The the loan will be repaid in equal monthly installments of $3,879 per month after the 3 year payment deferral period for the remaining eighty four months.
The benefit for LAC will be the opportunity to retain a young company that is producing world changing science and products. The increase in high paying jobs within the County (20 FTE by year 3 at average salary of $69,750) and the increase of sales of products produced here in Los Alamos and exported is most desirable. Additionally, UbiQD has agreed and participated in actively promoting LAC as a great place to work and live (new ED booklet features them on the cover and cover story). Please see the LAC LEDA application for additional information.
Fiscal and Staff Impact/Planned Item
The Economic Development Budget Summary included a projection of $325,000 for LEDA in FY18. Staff impact is minimal.
Attachments
A - Ordinance No. 671 LEDA_UbiQD
B - Project Participation Agreement
C - not used
D - LAC LEDA Application UbiQD
E - Notice of Publication
F- UbiQD LEDA PowerPoint presentation