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HomeMy WebLinkAboutPublic Comment LLoyd trancleantech INSTITUTE September 13, 2011 Robert A. Brady City Manager City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 Clean Tech Institute NASA Research Park Building 19 -1076, Moffett Field, CA 94035 11258 Monarch Street, Unit O and P Garden Grove, CA 92841 Tel. 800 -567 -8184 Fax 877 - 836 -6266 http://www.cleantechinstitute.org Re: Lake Elsinore Cleantech Innovation Cluster Proposal The Cleantech Institute, Inc. and International Green Technology Institute (Cleantech Team) hereby propose to establish a Cleantech Innovation Cluster (Cleantech Cluster), a public /private /non - profit partnership to foster the economic development and to create green jobs in the City of Lake Elsinore. The minutes of the Redevelopment Agency Meeting on August 31 indicated that the Redevelopment Agency would consider the termination of the $2.6 million EDA grant from the US Department of Commerce, due to the lack of matching funding resources from the City. As a resident of Lake Elsinore I am concerned about the consequence of terminating the EDA grant, while our city is in urgent need of federal funding support to create jobs for the community. Abandoning the $2.6 million EDA grant would have a profound negative impact on our city in losing future federal funding opportunities not only from the Department of Commerce, but also from other federal agencies. We had an opportunity to talk with Mr. Wilfred Marshall from the EDA after our meeting, who was prepared to give an extension to September 16 for the City to work with us in developing a revised proposal to the EDA. After having had an opportunity to review the Lake Elsinore EDA Grant Application dated October 2007, we respectfully recommend to the City Council to modify the Scope of Works of EDA grant, awarded to the City in 2007 in order to continue the grant funding project. The 2007 grant application called for the City of Lake Elsinore to invest $3,504,854 in addition to $2.6 million from the EDA to build a 12,000 sf office building for the Business Incubator to create a total of 109 jobs over the next 9 years. Our proposal would save the City the $2.6 million cash which we understand is no longer made available from the Redevelopment Agency. Instead of constructing a new building with the cost of exceeding $6 million in the recession economy with- 7 my vacant but gs vailable in the real estate market, our proposal would call for a loin term lease of a 40,000 sf uiIdiiig that would house a business incubator, and manufacturingra6lity I'm young enterprises that will brings jobs to our community. The Cleantech Innovation Cluster, established in Silicon Valley is comprised to 2 main functions: Cleantech Incubator and Cleantech Green Manufacturing. The Cleantech Business Incubator will provide general business start-up support as well as training a new generation of green collar workforce in the fast growing areas of solar, wind energy and electric vehicle industry. The Incubator will help nurture eco- entrepreneurs to become the economic engine to create jobs in their communities. The Incubator program will also help returning veterans as well as other unemployed workers to repower and rebuild our cities. The Cleantech Green Manufacturing will provide subsidized light manufacturing facility to young enterprises in order to relocate their business and keep them stay in Lake Elsinore. So far, we are pleased that 2 companies having expressed their interest to relocate a portion of their technical support and assembly to Lake Elsinore, given a subsidized manufacturing space: 1 Amptran Motor Company, an electric vehicle and lithium air battery production assembly facility; and 2 Illumineering Science, LED light manufacturing company Our industry partners have expressed their interest to provide the needed $2.6 million leverage resources and matching fund for the EDA grant. By combining the Business Incubator and the Green Manufacturing Facility, we anticipate that the Cleantech Cluster would create 159 jobs for the community over the next 9 years. In order to jumpstart and finance the establishment of the Cleantech Cluster, we recommend the Lake Elsinore City Council to take the following actions: 1. Authorizes the modification of the EDA Grant of $2.6 million for a long term lease of a vacant building in the city as well as for tenant improvement, including solar and wind application. 2. Establish a EDA Grant Committee consisting of the City Manager, a representative from the Redevelopment Agency, a representative from the Lake Elsinore Chamber of Commerce, Lloyd Tran from the Clean Tech Institute and Les Hamasaki from the International Green Technology Institute 3. The Committee is authorized to find and to negotiate a long term lease agreement for a 40,000 sf building facility in Lake Elsinore. 4. Support and incentivize Veteran employee salaries from available training grant programs; 5. Support Public Assessed Clean Energy (PACE) financing programs to encourage energy efficiency and solar power generation for residential and commercial buildings. As a new resident of Lake Elsinore, I (Les Hamasaki) would encourage the City leaders and stakeholders to envision Lake Elsinore as the city with a green future. If you have any questions, please contact Lloyd Tran at 714 - 892 -6266 or Les Hamasaki at 323- 350 -5750. We look forward to working with you for the benefits of our community in Lake Elsinore. Sincerely. Lloyd L. Tran Managing Director Clean Tech Institute de-6 %swadaof 6 Les Hamasaki President and CEO International Green Technology Institute