DCOA could amend assistance deal with rebranded Genesis Networks Solutions [Abilene Reporter-News, Texas]
(Abilene Reporter-News (TX) Via Acquire Media NewsEdge) Dec. 14--The board of the Development Corporation of Abilene will meet Monday to discuss possibly amending its assistance to Genesis Networks Solutions.
The meeting will be at 1:30 p.m. at Abilene Laboratories, 1325 Pine St.
Genesis, a local software development and testing company, was formed in 2006 through an affiliation with San Antonio-based Genesis Networks, as well as Abilene Christian University and the investment group Rain Dance Capital.
The DCOA that year inked a deal with Genesis, providing $1.9 million assistance for the creation of 143 jobs -- a total later lowered to 115 jobs -- earning at least $30,000 a year.
Genesis experienced growth in 2008, and an expansion equated to $2.3 million in assistance from DCOA for the creation of 150 additional jobs, earning at least $35,000 a year.
The economic recession in 2010 put a halt to that expansion, and when the software testing company failed to create jobs according to 2008 projections, DCOA reduced its assistance to $1.12 million. In 2011, the DCOA again revised its assistance, this time upward to $3.9 million for 253 new jobs.
Genesis since rebranded itself as WaveCreste -- it will soon be Genesis Networks Global Services dba WaveCreste -- and the existing agreement leaves some $2.4 million unfunded.
The DCOA board will mull whether to cancel the existing agreement and put in place a $1.2 million outstanding note balance -- a balance that remained unchanged for the past two years since the company's second expansion -- because it has not resulted in the large number of additional employees as anticipated in 2011.
The proposed agreement amendment will not affect DCOA's current fiscal year finances.
Also during the meeting, the board will:
Receive annual reports from Texas Tech University Small Business Development Center, Abilene Industrial Foundation, and from the Military Affairs Committee of the Abilene Chamber of Commerce. The three entities receive funding from the DCOA.
Discuss fiscal year 2014 funding for the Texas Manufacturing Assistance Center to pay for safety training and training in new manufacturing techniques for several local companies. TMAC is a manufacturing training program that works with local companies.
Discuss funding to allow for the purchase of a replacement steam boiler at Abilene Laboratories' sister facility at 842 Pine St.
Receive December sales tax receipts report from the city's finance department.
(c)2013 the Abilene Reporter-News (Abilene, Texas)
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