DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: City-Wide
SUBJECT:
Economic Development Grant Agreement with the San Antonio Economic Development Corporation (SAEDC) for Covalor Medical, LLC.
SUMMARY:
This Ordinance approves a Chapter 380 Economic Development Grant Agreement in the amount of $1,750,000 with the San Antonio Economic Development Corporation (SAEDC) to help fund the formation and establishment of a new medical device development and manufacturing company, Covalor Medical, LLC. ("Covalor"), in San Antonio. This Ordinance also authorizes the SAEDC to enter into an Economic Development Agreement with Covalor pursuant to which the SAEDC will invest the grant funds received from the City in Covalor over three fiscal years in exchange for a company membership interest in Covalor.
BACKGROUND INFORMATION:
Entrepreneur, Ben Tranchina of San Antonio, and entrepreneur Dr. Dan Burnett, CEO of TheraNova, LLC. (a successful San Francisco based medical device incubator), are seeking funding through an Agreement with the SAEDC to invest in a new San Antonio based Texas limited liability company named Covalor, which was formed on October 15, 2014. Mr. Tranchina serves as the Covalor President and CEO, and Dr. Burnett serves as the Board Chairman. Through this proposed Agreement, the SAEDC will secure a percentage membership interest in the company and share proportionately in annual profits and investment returns from Covalor's business activities.
Dr. Burnett has been engaged in collaborative research efforts with the U.S. Army Institute of Surgical Research at Fort Sam Houston which led to the creation of two successful TheraNova spinout companies - Consano Medical and Potrero Medical. These companies are developing medical devices that monitor urine output and sepsis in patients placed in intensive care units. Local San Antonio investors provided funding for these two companies, w...
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