Earlier this month, Shawnee City Council unanimously agreed to accept an amendment to an economic development agreement with DSI Holding Corporation.
The addendum acknowledges that the company has already completed its employment requirements to create jobs at the Shawnee facility, and the city is forgiving the economic development loan of approximately $ 181,000.
The Shawnee Council discussed and agreed to the item on September 14th.
Money in exchange for jobs
DSI entered into a Shawnee Economic and Entrepreneurial Development Agreement with the city in March 2018. The city agreement provided $ 225,600 in Shawnee Economic Development Fund to the company to help it acquire and improve the company’s site at 8450 Cole Parkway.
As part of the deal, DSI was to provide 100 full-time jobs at the Shawnee site.
The SEED agreement with DSI included the forgivable loan of approximately $ 181,000 in the first year and additional incentive payments of $ 43,860 over the following four years, if DSI met its employment goals of having 100 jobs. full-time by February 1, 2019, at the Shawnee location.
Earlier this year, the company verified that it had already met this employment requirement. The city had last discussed the deal with DSI about a year ago, when DSI contacted the city in May 2019 to request an extension until September of the same year to release employment figures. .
New compliance agreement
DSI has been delayed for six months in construction of the Shawnee facility due to a number of factors, such as sewage development issues, according to city documents.
The addendum to the SEED agreement between Shawnee and DSI establishes that Shawnee will forgive the loan to DSI and also establishes a new timetable for compliance with the SEED agreement, according to city documents.
Each September, from 2021 to 2024, the city will continue to make incentive payments to DSI in amounts between $ 9,300 and $ 11,700.
DSI operates through ServiceMaster DSI and is a provider of restoration and disaster cleaning services to businesses and individuals, according to a city memo.