DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: 4
SUBJECT:
Consideration of a Chapter 380 Economic Development Incentive Fund (EDIF) Grant Agreement of $180,000 with LGS Innovations LLC.
SUMMARY:
LGS Innovations LLC (LGS) has chosen to establish a new facility in San Antonio that will serve as the hub for a number of the company's cyber-related programs. The project will create 46 new, full-time jobs over five years at Port San Antonio, with a proposed capital investment of $2.9 million in real and personal property. Staff is recommending City Council adoption of an ordinance authorizing a Chapter 380 Economic Development Incentive Fund Agreement of $180,000, contingent on the retention of three (3) existing positions and the creation of 46 new, full-time jobs over five (5) years, with all 49 employees making an annual salary of at least $50,000, exclusive of benefits, bonuses, and other non-guaranteed pay. Of those 49 employees, 42 will be making an annual salary of at least $70,000. Funding in the amount of $180,000 is available from the Economic Development Incentive Fund FY 2019 Adopted Budget.
BACKGROUND INFORMATION:
In 1996, AT&T separated its communication equipment division into Lucent Technologies, and in 2006, Lucent merged with Alcatel to become Alcatel-Lucent. As part of the transaction, the company established LGS, which served as the company's sole sales and contracting channel for classified and unclassified business with the federal government. In 2014, LGS was acquired by Madison Dearborn Partners, an investment firm based in Chicago, Illinois, and CoVant, a holding company based in the Washington, D.C. metro area, focused on acquiring and growing companies in the federal technology solutions marketplace. The company is headquartered in Herndon, VA, and has nearly 1,500 employees, many with advanced, hard-science degrees and a marked number of PhDs. They provide mission-critical communication...
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