HomeMy WebLinkAbout07282010CRACOMMUNITY REDEVELOPMENT AGENCY (CRA)
(CITY COUNCIL)
MINUTES
WEDNESDAY, JULY 28, 2010 4:00 PM
CITY COUNCIL CHAMBERS
1225 MAIN ST, SEBASTIAN, FL
1. Mayor Gillmor called the CRA meeting to order at 4:00 p.m.
2. The Pledge of Allegiance was recited.
3. ROLL CALL
Mayor Richard H. Gillmor
Vice -Mayor Jim Hill
Council Member Andrea Coy
Council Member Don Wright
EIlYOF
HOME OF PELICAN ISLAND
City Council Absent:
Council Member Eugene Wolff (excused)
Staff Present:
City Manager, Al Minner
City Attorney, Robert Ginsburg
City Clerk, Sally Maio
Deputy City Clerk, Jeanette Williams
Finance Director, Ken Killgore
Growth Management Director, Rebecca Grohall
Police Chief, Michelle Morris
Police Captain, Robert Lockhart
MIS Senior Systems Analyst, Rob Messersmith
4. APPROVAL OF MINUTES June 9, 2010 Meeting
MOTION by Ms. Coy and SECOND by Mr. Hill to approve the June 9 2010 minutes
passed on a voice vote of 4 -0.
5. NEW BUSINESS
A. Master Plan Capital Improvements Projects Prioritization (City Manager Transmittal)
Brandon Schaad, Outlier Planning Group, gave a PowerPoint presentation summarizing
the projects recently ranked at the previous meeting (see presentation attached). The
City Manager requested feedback on the submitted projects.
Mr. Wright suggested adding public comment, and Mayor Gillmor recommended taking
comment before Council deliberation.
Community Redevelopment Agency Meeting
July 28, 2010
Page Two
Public Comment
Sal Neglia, Sebastian, recommended keeping away from the Archie Smith fish house
project because of the cost and maintenance. Mr. Wright asked him what Council should
do with this property, and Mr. Neglia responded the County should improve the property
as was planned, and though he was not against the project, it should not be done by the
City.
Mr. Hill said everything in the presentation was outline as Council directed. He asked if
there are funds outside of utilizing CRA funds to improve Cleveland and Coolidge Streets.
The City Manager replied there were other ways, and explained that even though paving
of these streets was at the bottom of Council's priority list, everyone agrees it is a priority,
that the $300,000 for approximately 3 miles of streets was a rough estimate based on
current asphalt paving costs. He said the way to shift the project out of CRA is to
increase the local option gas tax funds, which would require us to increase our tax rate to
generate monies or by making transfers from other general fund balances to support the
improvement.
Mr. Hill said he was asking because Council recently approved a resurfacing plan which
did not include these two roads because they were to be included in the CRA, and now
we are looking at the CRA and they are not in here. The City Manager said they are
broken down in three ways: Cavcorp which makes certain improvements, paving of
streets which makes certain improvements and Coolidge/ Cleveland projects which
includes on- street parking.
Mr. Hill asked where that is noted in the CIP budget. The City Manager explained the
financial pattern in the CRA allows us to do a couple of big projects, intertwine some small
improvements; and if you get above a $250,000 project that is a big project so he tried to
prioritize gateway, Archie Smith Fish House, gateways, Cavcorp, waterfront
improvements first and then by the time you get to FY12/13/14 the fund balances are
starting to diminish. He said what he is recommending is taking those streets out and
listing them as "paving" and use local option gas tax funds.
Mr. Hill asked if, where it shows in FY12 "parking improvements projects/$250,000 other
funds or Archie Smith would that be considered doing those roads. The City Manager
said yes, you could do Cavcorp, you could pave roads or you could do Archie Smith.
Ms. Coy asked if that included modifications for on street parking at that date and time,
because we don't want to rush and pave it. The City Manager said staff didn't have
specificity on the improvement and was trying to set aside a block of money to plan what
those improvements are going to be.
Mr. Wright said we do not have adequate parking in the district for business growth and all
of the different public uses, so we are lucky that all of these forces came together and we
can take a comprehensive approach to substantially increase parking in the district to
allow more access to the public. He asked if the cost for a parking study had been
determined.
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Community Redevelopment Agency Meeting
July 28, 2010
Page Three
Mr. Hill said that is why he was asking questions, because those things are not
necessarily in here, and we are going to have discussion about the Archie Smith Fish
House which may be another liability without funding, and he wanted to make sure the
paving of streets is absolutely in the plan. Ms. Coy noted the parking study is in FY 11,
and Mr. Hill said that absolutely needs to be done so we are not going along haphazardly
and throwing parking spaces out there.
Mr. Wright said he thought if we had that parking study done, it would help us evaluate it
better and provide some direction to the City Manager, and did not think it would cost us
more than $15,000 to $20,000. The City Manager noted it was listed at $30,000, based
on a recent Vero Beach study.
Mayor Gillmor asked Joe Schulke, who is a professional engineer and Sebastian resident,
if Coolidge and Cleveland Streets could be included in a Cavcorp master plan. Mr.
Schulke said that could absolutely be done in steps, with the first phase being stormwater
permitting for the whole project.
Ms. Coy added that not all of the 3.5 miles of streets listed need to be paved at one time,
and perhaps street paving can be moved up one year.
Mr. Hill said the only issue with that would be the parking study has to come before that.
The City Manager reminded Council for FY 10 when starting to plan for Cavcorp, there
was an allocation for $750,000, and of that $400,000 was from CRA, $250,000 from DST,
and $100,000 from recreation impact fees. He said what this chart doesn't show is that
there is a residual $350,000 remaining and some of these projects would be qualifying
projects to take from recreational impact fees, potentially $100,000 could be used for
Hurricane Harbor, which would bring money back into CRA which could be used for
Cleveland and Coolidge, however he said what staff needs to hear from Council is what
specific projects Council wants to do but he did not want to jump the gun because of how
it was ranked. He asked them to feel free to tell him what they want done and when.
Mr. Wright suggested Council discuss it and come back for a consensus.
Mr. Hill said the parking study coming before the paving is critical, noting the study is
listed in FY 11.
The City Manager said potentially we could begin the RFP process for the study now, with
funding in FY 11 and complete it by November.
Mr. Hill said then what the City Manager was saying was, that without touching anything
on here, we can add $300,000 for street paving and parking. The City Manager
responded that was true as long as they were willing to push back the gateway project.
Mr. Wright said he thought we were pushing back the Cavcorp property. Mr. Hill then
asked, what was the $300,000 that the City Manager just mentioned was hanging out
there.
3
Community Redevelopment Agency Meeting
July 28, 2010
Page Four
The City Manager said it was DST and recreation impact fees and he cannot pave streets
with either of those funds, but he can build parking lots with DST funds, and he can use
recreation impact fees for Hurricane Harbor improvements.
Mr. Wright clarified then that the City Manager needs direction from Council to reassign
those funds.
Ms. Coy suggested Council could push gateways up so they could use those monies next
year for parking. The City Manager said you can take the $100,000 recreation impact fee
money and spend that on Cleveland and Coolidge, and then you can use local option gas
tax to do the street paving.
Mr. Wright suggested grouping the gateway and uniform signage together in the study
which would have put that first instead of third on the priority list. He then noted a cut in
the billboard item by $20,000, which he thought was a good idea, but recommended
offering the business community the opportunity to share advertising costs on the
billboards and highlight those businesses on the billboards, which would better utilize the
money and might bring more people to the community.
Ms. Coy said though he presents an interesting idea, she did not think the billboards
worked, the only one that looks decent is the one in Titusville, the others are dumpy and
they need to be lit at night. She said she did not know if we could raise enough money
through partnerships, noting businesses are hurting right now. She said she would like to
scratch billboards, and perhaps look at it again down the road.
Mr. Hill said he was not sure whether they were working or not, and questioned the cost of
the Titusville sign. He asked what the evidence was that the billboards were not working.
Ms. Coy said people mention the sign in Titusville but not the others. She said the
Chamber keeps statistics, and Mayor Gillmor said he had contacted them and they have
received 150 hits since February to gosebastian.com, though he did not know how we can
quantify that.
The City Manager said the intent of the $20,000 in the CIP was to keep one sign.
After further discussion, it was the consensus of Council that the Titusville sign was the
best of the signs, and were in agreement with keeping that amount.
Mr. Wright again suggested giving businesses an opportunity to participate in the cost. Mr.
Hill said he would not be opposed to that but it would have to come to CRA for review.
Ms. Coy said she would listen, and Mayor Gillmor said it would be hard to determine what
businesses would be included.
Mr. Wright noted we are going to be looking at the LDRs in regard to parking and it is
important that we look at additional parking in the district, noted the underground utilities
did not get a lot of play, that Council should go ahead and shift money around as they
identify certain things they can do that are higher priorities than others. He said there are
no Parks and Recreation Committee projects that are more critical than the Hurricane
Harbor project, and that street improvements need to be done.
Mayor Gillmor said the $535,119 allotted for the waterfront programs needs to stay in
there, along with the renovations to get the leaseholds. Mr. Wright suggested waiting to
see who the tenants will be before some of the renovations are done so the building fits
the tenants. The City Manager said in accordance with the FLS lease, if Council approves
4
Community Redevelopment Agency Meeting
July 28, 2010
Page Five
it, there are improvements that must be done to make the building marketable in the
amount of $150,000 to $200,000.
Mr. Wright said he agreed with the budget, but suggested items such as a/c ductwork and
paint could be contingent upon the tenant.
Mayor Gillmor asked if all agreed we could wiggle in the parking study, and Mr. Hill noted
that this October is FY 11 and the money doesn't need to be spent until then.
Mayor Gillmor confirmed then that all members were good on FY10 budget. For the FY11
there was agreement that one billboard stays which takes $20,000 down to $15,000 and
maybe less with a co -op agreement, the parking study is in there, and then asked the
others about the landscaping /gateway item. Ms. Coy noted the gateway presentation is
not planned until two weeks for now so it makes it tough.
Mr. Hill said we could shift $300,000 into the FY 11 budget for parking without pulling
anything out, and Mr. Wright agreed we should be moving that amount into the budget for
parking improvements, leave the gateways in there and if we are uncomfortable with the
presentation or if it is less expensive we save some money.
Mayor Gillmor said then we would move parking improvements from FY 12 to FY 11, and
Mr. Hill said not necessarily, rather it would simply increase the FY 11 by $300,000 for a
total of $790,727 and leave FY 12 the same, because we are going to be using DST funds
for the waterfront and shift funds that were already in place for the Cavcorp property for
parking.
For FY 12, Mr. Wright noted that the focus would go back to Cavcorp. The City Manager
concurred and said if you shift some monies around it might also get you some asphalt
paving and maybe we skip the presidential streets or you throw some bucks at it. Mr.
Wright said that line can be renamed Cavcorp instead of parking improvements.
Everyone agreed the rest of it is good.
Mr. Hill asked everyone what they want to do with Archie Smith. Ms. Coy asked to leave it,
noting the City Manager had spoken to IRC staff. She said about six months ago, the
County said they were interested in using a significant portion of the left over $300,000
Land Acquisition Committee money toward Archie Smith to meet their obligations.
Mr. Wright asked if we were going to talk about the Archie Smith House now or wait until
the Council meeting. It was decided to address it during this meeting.
The City Manager reiterated Council's priorities to amend the master plan to be:
the working waterfront
parking improvements /study
advertise Sebastian
gateway improvements
historic preservation
He initially mentioned utilities, but it was scratched from the list.
5
Community Redevelopment Agency Meeting
July 28, 2010
Page Six
He said he will have the items bulleted and the numbers shifted for the upcoming CIP meeting.
Ms. Coy said it is time for this Council to ask questions and push the County Commission
to move on the Archie Smith Fish House.
Mr. Wright said if you read details of the County's management plan for the Archie Smith
Fish House, they have not lived up to any of the commitments they made in the grant
application, which provide that within one year they conduct engineering, architectural
consulting studies, historic building analysis, preservation design, along with an updated
stewardship report. He said there is a substantial amount of money they are required to
spend that they have not spent, and he agreed the City should not be left with this,
however, unless the City gets a hold of it nothing will ever happen.
Mr. Wright suggested maybe cooperating or putting pressure on the County and having
the Working Waterfront Committee start looking at this and figuring out what they can get
from the County. He said the cost of what the County was supposed to do could be
$300,000 to $400,000, and that should be turned over to contract for the work that needs
to be done there. He said we need to work with the County to get something done without
assuming all of the financial responsibilities.
John Conway, Chairman, Working Waterfront Committee, said staff brought the Archie
Smith idea to the Committee and the Committee voted unanimously to take on the project
to give Council a recommendation.
Sal Neglia said he spoke to some of the Commissioners and the City Manager spoke to
Bob Keating and they offered a 99 year lease but did not want to put any money into it.
Mr. Wright said that would not be acceptable because they have an obligation to the State.
The City Manager explained the County didn't get State money to purchase Archie Smith;
they used Land Acquisition monies and hoped to reimburse themselves with State monies
but it never came through. He said he cannot speak for the County but said from his
discussions with their staff, they feel they are a bit overextended in some of the ways they
spent their Land Acquisition money, and some of the ways they have to make
improvements, noting they have $300,000 left to get things done and are feeling the pinch
and are more than happy to do the lease with us. He said he did not think the pressure to
make the improvements is going to come from the State, but the hammer will be political
and their commitment made when they purchased the property.
Mr. Wright questioned whether it might be possible to get grants for the improvements.
Mr. Hill agreed with Mr. Wright, said the purchase was approved and paid for by the
County residents to protect and preserve the historical property, approved by the Land
Acquisition Committee and the County Commission and it needs to be pushed that way.
He said the City should not take ownership, but potentially in the future partner with the
County in seeking grants. He said in the meantime, there are code violations that the City
can approach the County with. The City Manager confirmed City codes need to be
maintained.
6
Community Redevelopment Agency Meeting
July 28, 2010
Page Seven
Ms. Coy said there is a company that might be interested in working on the property called
AlgaGen, LLC, noting they are looking for a site with access to deep water to produce
edible algae. (See info attached)
Mr. Hill reiterated that there is consensus to have the Working Waterfront Committee look
for ways to improve the property and have staff look at potential code violations. Mayor
Gillmor asked for a report as to the code violations.
The City Manager suggested drafting a resolution encouraging the County to move on
this; Ms. Coy suggested the Mayor could read resolution at the next County Commission
meeting for emphasis; and Mr. Hill suggested adding that the City is willing to partner in
looking for grants for the improvements for the fish house.
6. Being no further business, Mayor Gillmor adjourned the CRA meeting at 5:17 p.m.
Approved at the 9 22/10 CRA meeting.
Richa H. Gillmor, Mayor
ATTEST:
Sally A. Maio, M City Clerk
7
1 CEO
1 Laboratory Technician
1 CFO
1 Sales
1 Engineer
1 Office Manager
3 Aquaculture Technicians
1 Shipping and Receiving Clerk
INDIAN RIVER COUNTY, FLORIDA
MEMORANDUM
TO: Members of the Economic Development Council
DIV ON HEAD CONCURRENCE
iiA
4 _0„,..;,./.,..._ A ge
Robert M. Keating, AICP;
THROUGH: Sasan Rohani, AICP; Chief, Lon
DESCRIPTION AND CONDITIONS
1
Development Director
ange Planning
--7/26ho er„4
FROM: Bill Schutt, AICP; Senior Economic Development Planner, Long -Range Planning
DATE: July 13, 2010
RE: Consideration of AlgaGen LLC's Request For a Local Jobs Grant
It is requested that the information herein presented be given formal consideration by the Economic
Development Council at its regular meeting of July 20, 2010.
As part of the Board of County Commissioners initiatives to improve the local economy, a package
of economic development incentives was established in 1996 to attract new businesses to the county
and to encourage existing businesses to expand their operations within the county. Included in that
package of incentives was a local jobs grant program. That program, which was revised by the
Board of County Commissioners in October 2000, December 2006, and March 2009, provides a
financial incentive to businesses that create good paying, full -time jobs in Indian River County.
Recently, AlgaGen LLC applied for a local jobs grant.
As indicated in its local jobs grant application, AlgaGen LLC proposes to expand its existing
operation at 7250 9th Street SW (Oslo Road), Vero Beach. The company currently employs 3 people
and has 2 unpaid volunteers. The proposed expansion will bring approximately 10 new jobs to the
county. The estimated quantity of jobs by job type is as follows:
To be eligible for the County's Local Job Grant Program, an applicant must create at least 5 new
jobs, and those jobs must pay wages equal to or greater than 75% of the county's average annual
wage (average annual wage for 2008 $35,879).
ANALYSIS
AlgaGen LLC
AlgaGen LLC is a plankton aquaculture farming operation located at 7250 9th Street SW (Oslo
Road), Vero Beach. Formed in 2002, AlgaGen LLC provides plankton for a wide variety of
markets /applications. These include: aquaculture and agriculture feeds, food ingredients and
condiments, nutraceuticals (food or food products that provide health and medical benefits),
pharmaceuticals, and specialty chemicals. Currently, the company's products are sold throughout the
US and are also exported to Europe and Asia. Going forward, AlgaGen LLC intends to continue to
use the Vero Beach location as its regional, national, and international headquarters.
As proposed, the company will bring ten new jobs to Indian River County; six of those jobs qualify
under the Indian River County Local Jobs Grant Program criteria.
Local Jobs Grant Eligibility Review
Industry Classification of Business
To qualify for the County's Local Jobs Grant Program, a company must be one of the county's
targeted industries. Under the County's target industry list, AlgaGen LLC qualifies for the jobs grant
program under "Pharmaceuticals "Marine Science "Corporate /Regional Headquarters and
"Research and Development
Job Creation Threshold
As structured, the county's jobs grant program provides $3,000 for each new position created that
pays from 75% to 99.99% of the County's average annual wage; $5,000 for each new position
created that pays from 100% to 149.99% of the County's average annual wage; and $7,000 for each
new position created that pays 150% or more of the County's average annual wage.
Currently, the County's average annual wage is $35,879. Based upon its job grant application,
AlgaGen LLC plans to create 10 new jobs in Indian River County, and 6 of the proposed jobs will
meet the minimum job grant qualification of having salaries that are above 75% of the County's
average annual wage ($26,909.25). Consistent with state law confidentiality allowances, the
applicant has requested that the specific salaries remain confidential as part of the local jobs grant
application and agreement. The grant calculation provided below, however, provides information on
how many jobs qualify for each local jobs grant amount.
2
Category
Qualified Jobs
Amount per Job
Total
75% of county average wage
0
$3,000
$0
100% of county average wage
3
$5,000
$15,000
150% of county average wage
3
$7,000
$21,000
Total Grant Amount
$36,000
Grant Calculation
Jobs Grant Agreement
If the Economic Development Council recommends that the Board of County Commissioners
approve AlgaGen LLC's local jobs grant application, staff will prepare a local jobs grant agreement
to be executed between the County and AlgaGen LLC. That agreement will stipulate various
requirements, including:
The grant will be payable over a three year period.
The company will provide copies of its quarterly unemployment compensation reports (UCT
6 form) to the County so that the County can verify that the number of jobs claimed tor each
local jobs grant payment level is being provided.
The company must supply documentation to the County showing that employees reside within
the County or in adjacent counties.
If approved, the grant will be funded from County General Fund contingencies taken from three
separate County fiscal years starting in County fiscal year 2011 -12.
CONCLUSION
Based on the analysis conducted, staff has determined that AlgaGen LLC qualifies for a local jobs
grant of up to $36,000.
RECOMMENDATION
Staff recommends that the Economic Development Council recommend that the Board of County
Commissioners approve a local jobs grant of up to $36,000 for AlgaGen LLC.
ATTACHMENT
1. Jobs Grant Application
2. AlgaGen LLC Informational Material
F: \Community Development \Users\EDplannr \Incentives Funding\Jobs Grant Program\AlgaGen\EDC agenda item AlgaGen.doc
3
25 June 2010
7250 SW Oslo Road, Vero Beach. FL 32968
772 -978 -1395 www algagen.com
Subject: Application for Indian River County Job Grant Program
To: The Board of County Commissioners
Indian River County, Florida
AlgaGen is pleased to submit this request for a Job Grant that will supplement the
company's growing cost structure as it expands to address its market and new
opportunities. We are the only dedicated plankton farm in Florida. As one of the world's
premier plankton aquaculture farms, AlgaGen has grown because of our established
reputation for reliability, quality, and service. Our products represent the finest quality as
demanded by our discriminating customers that include the Smithsonian, ORA (Oceans,
Reefs Aquariums Inc.), Harbor Branch, FIT, FAU, OF Gainesville, and the U.S. Fish
and Wildlife Service.
In our current restructuring plans, we want to add ten new jobs to the business, including
key professionals (CEO, CFO, and Production Engineer) as well as technical and
administrative positions required to perform and support our production and sales
operations. All of these jobs will have full benefits.
Indian River County is a business friendly jurisdiction that is geographically ideal for our
marketplace. We look forward to expanding our presence here, and to becoming more
active in the business community. Thank you for considering our application.
Please contact me if you have any questions.
Sincerely,
Erik Stenn, M.Sc.
President and Managing Member
Attachment 1
7250 SVV Oslo Road, Vero Beach. FL 32968
772 -978 -1395 www.algagen.com
25 June 2010
Subject: LLC Ownership
To: The Board of County Commissioners
Indian River County, Florida
In reference to our application for Job Grant consideration from the Indian River County
Government, AlgaGen is required to explain its ownership structure.
AlgaGen was founded in Indian River County in November 2002, by Erik Stenn, who is
the Managing Member of the LLC.
At the time of application, Erik Stenn remains the sole owner of the LLC.
AlgaGen does disclose that this job grant application is part of the company's
restructuring, which if completed will result in growth of staff, facilities, production
and revenues. This restructuring will also create a new ownership structure involving
new equity owners William J. Cox (who will become the new CEO) and Glenn A.
Jackson (who will become our new CFO). It is currently anticipated that this equity will
be held equitably between the three members. Erik Stenn will remain the LLC's
Managing Member.
AlgaGen is committed to remaining in Indian River County, and to growing our core
capabilities within the local economy.
Please contact me if you have any questions.
Sincerely,
Erik Stenn, M. Sc.
President and Managing Member
LOCAL JOBS GRANT PROGRAM APPLICATION
I L APPLICANT INFORMA'T'ION:
AlgaGen LLC Erik Stenn, Managing Member
Business Name Business Owners Name
7250 SW Oslo Road
Address
772 978 1395
Phone Number
Bill Cox (321 305 7381)
Contact Person
eriksribalga en.conl
Email
CEO
Title
Business Unit's Federal Employer Identification Number: 06 1659725
Business Unit's Unemployment Compensation Number: 2808461-8
Vero Beach FL 32968
City State Zipcode
WWW.alira <_=en.coni
Website
Which of the following best describes this business:
New business to Indian River County
X Existing business in Indian River County creating new jobs
3 +2 unpaid/volunteer If an expansion, how many jobs are currently in the business?
1
2
II. PROPOSED SITE LOCATION (if known):
Preferred location within Vero Beach city limits
Address
Property Parcel Number(s)
City Zipcode
Current Location (if different): IR Co.
7250 SW Oslo Road Vero Beach FL 32968
Address City State Zipcode
333919
Property Parcel Number(s)
III. BUSINESS DESCRIPTION:
Give a full description of the primary business activities /functions: Formed in Indian River County
in 2002, for eight years AlgaGen LLC has grown to become one of the world's premier plankton
aquaculture farming operations specializing in high purity high volume plankton production from a
wide range of both proprietary and in -stock phyto and zooplankton species. Our products sell into
commercial industrial, consumer, and government markets in the U.S. AlgaGen products are also
exported to and distributed in Europe and Asia. Our core capabilities include: bulk plankton
production; specialty plankton production contracted production services; just -in -time production of
plankton orders; and, providing turn-key plankton solutions to our fish farming, aquaria, research, and
government customers. AlgaGen's products are seeing consistently increasing demand as aquaculture
continues to grow and mature as an industry. AlgaGen's products are also necessary for the high -end
marine aquarium market_ where pure, high quality, live food is essential. AlgaGen is currently
expanding to meet market demand, and to expand its range of products and services.
List the NAICS Code(s) for the business: 112519, 541620, 541690, 541711, 541990
SIC Codes: 0919, 2092, 2099, 2833, 2869
Will the site be a dedicated headquarters office (regional, national, or international)?
YES
Phase
Number of net new full -time
equivalent jobs created in the business
Date by which jobs
will be created
Average Annual
Wages
I
5
08/01/10
89,800
Il
5
01/15/11
29,400
III
Total
10
r
IV. JOB CREATION INFORMATION:
Anticipated number of new full -time jobs that will be created by the business in Indian River
County: I0
Salary range of new full -time jobs identified in the previous question: $40,000 to $150,000+
(PLEASE LIST ALL NEW POSITIONS AND SALARIES ON APPENDIX A OF APPLICATION)
V. CRIMINAL /CIVIL FINES OR PENALTITES:
List and explain any criminal or civil fines or penalties or ongoing investigations that have been
imposed upon the company, its executives, or its affiliates and any recent bankruptcy proceedings
of the applicant or its parent company: NONE._
To the best of my knowledge, the information included in this application is accurate.
Signature of Owner or Authorized Representative Date
Erik Stenn, Managing Member
Printed Name
3
7250 SW Oslo Road, Vero Beach, FL 32968
772 978 -1395 www.algagen.com
We put the "TON" in Plankton
Florida Aquaculture Certificate No. 2241062
Florida's only dedicated plankton farm, providing bulk plankton
products and services to our customers worldwide since 2002.
Welcome to AlgaGen We are one of the world's preeminent suppliers of high quality high
purity plankton and planktonic products in both small and bulk volumes, on a one -time or
continuous delivery basis. Our products include:
Live zooplankton, phytoplankton, and macro -algae
Ready -to -Use plankton pastes
Proteins and chemicals extracted from plankton
...which are ingredients for.
Feeds, Foods, Condiments, Nutraceuticals, Pharmaceuticals, and Cosmetics
AlgaGen's Retail Products: PhycoPureTM, ReefPodsTM, Decap'd BrineTM, WildTown"
Commercial Services include: Bulk Plankton Deliveries, Contract Production, Research
We provide:
Bulk Quantities of live plankton, Ready -2-
Use- and frozen pastes
Specialty Orders
Scheduled Guaranteed Supply and
Delivery Services
Research, Consulting, Culturing, and
Analytical Services
Our Customers include:
Commercial Aquaculture Operations
Ornamental Breeders and Hobbyists
Marine Laboratories, Universities,
Private Research Institutions
Agro- Industrial, Pharmaceutical and
Specialty Chemical sectors
Attachment
2
High density, high volume algae production
laboratory quality products and services
Company History. AlgaGen has been in the plankton aquaculture business for eight years.
Founded in 2002 by Erik Stenn, AlgaGen remains totally dedicated to providing the finest quality
plankton products available. Erik's vision was to have a focused company with a turn -key
capability to grow a variety of phyto and zooplankton. Today, Erik is a world renown plankton
aquaculture expert and his company AlgaGen is rapidly growing to become a world leader in
high quality plankton aquaculture.
With two decades of continuous plankton aquaculture expertise behind him, Erik Stenn
decided that there were better ways to approach the business. What was needed was a flexible
production system that could rapidly scale up or down any particular organism, in order to meet
a continually changing and evolving market place.
Today, the company's proprietary processes produce exceptionally large biomass
volumes. These yields, produced with reliable results on a consistent basis, define AlgaGen as
a business.
Core Capabilities. AlgaGen is a world leader at providing flexible, on- demand, plankton
production to meet our customer's exacting technical specifications. The company can produce
plankton crops in both large and small volumes, at prices that will satisfy our clientele. The
company's core capabilities include:
Fast scale -up for commercial sized orders hundreds to thousands of liters of
live phytoplankton per delivery
Production facilities that support multiple large and small sized orders being
processed and shipped simultaneously
A large culture collection that ensures AlgaGen has the plankton species you
need for most commercial and research applications
In -house research and analytical capabilities, further supported by close working
relationships with near -by, world class, university laboratories
Proprietary production processes that ensure the highest standards of quality
control and product purity, proven by years of successful deliveries to some of
the market's most discriminating customers.
Call us today: Erik Stenn, M.Sc., President 772 978 -1395 eriks a(�algagen.com
AlgaGen LLC
7250 Oslo Road, Vero Beach, Florida 32968 www.algagen.com
AIgaGen
21st Century High Tech Farming.
Quick Look
"Putting the
ton
in plankton.
8 years in business
Steady customers, established business,
outstanding reputation
Proprietary IP
Huge, fragmented traditional market
Multiple market sectors
Significant barriers to entry
Natural Fisheries are Collapsing
The US is the world's 3rd largest seafood consuming
nation. Only Aquaculture can reliably deliver seafood.
AlgaGen's Opportunity
All finfish and shellfish require plankton,
especially during larval and early juvenile growth
stages.
Plankton are valuable, perishable (they're alive),
and difficult to grow with consistent results.
Fish taste better when fed with natural plankton.
AlgaGen is a proven, high quality, plankton
farming operation with few market peers.
Diverse Markets Applications
Aquaculture and Agriculture
Feeds
Food Ingredients Condiments
Nutraceuticals
Pharmaceuticals, anti cancer,
anti aging...
Specialty Chemicals
Industrial Applications
...single- sector cycles are not fatal
AIgaGen
The company's reputation is outstanding.
A world leader in high- density algae aquaculture.
AlgaGen also grows other plankton.
Hallmarks are consistent high volume yields of
difficult -to -grow plankton with exceptional
quality and purity.
Product Categories
Microalgae
Macroalgae
Zooplankton
...Live, Pastes,
Extracts...
It Takes a Master
25 years in algae
aquaculture
Proprietary
processes
Master of the Art
Operationally at
the Leading Edge
Eric Stenn, M.Sc., Chairman and CTO
Founder ofAlgaGen
A Rare Skill
"Only perhaps a dozen people on the planet
know how to grow algae in high density
systems. Algae specialists (who can do
this) are becoming the rock stars of
biology..."
National Geographic, Oct '07, page 57
History
Founded in 2002; based upon two decades of
algae aquaculture experience
Regional player in ornamental and laboratory
plankton markets
Strong, established, international reputation
Products ship internationally, and include
significant prestigious customers...
The Best Choose AIgaGen
US Fish Wildlife Service
Smithsonian
Harbour Branch ORA
Atlanta Aquarium
Miami Aquarium
Florida Institute of Technology
Florida Atlantic University
OF Gainesville
MIT, Sandia, Brown Univ, Dallas World Aquarium,
Monterrey Bay Aquarium, New England Aquarium
Understanding the Market
Fish farms: outsource plankton
feeds
Ornamental breeders and
hobbyists want the best quality
they need plankton
Plankton must be fresh it's
perishable
It's difficult to grow
Larval and early juvenile stage
finfish and shellfish require
plankton.
AlgaGen's Advantages
Guaranteed deliveries, guaranteed supply
Large specimen collection ensures on- demand
supplies
Proprietary unique high- density, continuous
batch, algae growth processes
It's a JIT Market tough performance
Exceptional Reputation: Renown for high quality
and purity lab quality products
Consistency and Reliability
The Florida Market
Florida leads the nation in
aquaculture
67% of State's aquaculture is
ornamental
10 major laboratories (proximity!)
Major commitment to aquaculture
from FL DoACS and from local
jurisdictions
Major trade shows occur in Orlando
yearly
...AlgaGen is ideally positioned
to dominate this market...
Forum Post from Texas
"I would never put "tiger pods" in my
aquarium. They have no business in most
reef aquariums.
If they are thriving in your system you can
bet that your other pods aren't.
Reefpods by Algagen is a much better
source of pod life than Tiger pods."
High End Market
Public Aquariums
University Laboratories (FIT, FAU, UF)
Government Labs and Farms (USFWS alone
has 86 such facilities)
Research Institutions (Ruskin, Mote, Harbour
Branch, Indian River, Smithsonian)
Specialty Chemicals
Contract Production
Moving Forward
New Management Team
Marketing Business Focus: Expansion
Build and expand existing relationships
Build delivery service on East Coast
Create West Coast presence (farm
Caribbean Operations
Diversify revenues while building high- margin
sales in bulk deliveries
Management Team
Erik Stenn, M.Sc., Chairman CTO
Founder of AlgaGen
William J. Cox, M.A., CEO
CEO(2), COO, CTO
Glenn A. Jackson, M.B.A., CFO
CEO, COO, CFO(5)
The Future
A business spanning North America with market
share in Europe with a presence in diverse
market sectors
Grow in -house laboratory capabilities to
continue to maintain our position at the leading
edge of this market (extracted products)
Emphasis on IP; build asset value
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