Sunday, June 09, 2013

MedHab Update for Councilman Silvas

Mayor Alvin New suggested Councilman Johnny Silvas look through Development Corporation minutes and reports for his requested MedHab update.  Silvas was Mayor Pro Tempore when the MedHab vote was taken in August 2012 and deserves to have his request honored.  So, this is for you, Councilman Silvas:

January 2012 - Economic incentive package for MedHab approved

August 2012 - Economic development contract with MedHab approved by COSA Development Corp and San Angelo City Council.  Economic Development staff reported for August:
o Met with Councilman Silvas regarding MedHab agreement prior to Council meeting
o Presented the final MedHab Performance Agreement to COSADC and City Council.
o Agreement was approved and signed
o Working on tax reimbursement agreements for MedHab
o Worked with Mr. Ross, Mr. Wilson and Shawn Lewis on press release regarding MedHab agreement.  o Reviewed Incubator agreement for MedHab. Discussed changes to the agreement with Johnny Ross

November 2012 - Finalized MedHab Incubator agreement per City Attorney’s recommendation. SBDC has connected MedHab LLC to ASU students for employment.  A Chamber of Commerce report stated "John and Phil attended the demonstration and reception held for MedHab hosed by the Small Business Development Center."  The Chamber's Strategic Plan stated "All recruitment supports the graduates of ASU, and we will continue to work with projects like MedHab which has hired ASU graduates."  An odd performance measure had economic development staff citing:

Provide incentive offers within 10 business days of COSADC/Council approval
o MedHab
As MedHab's incentives are performance based, what could the city provide within ten days of Council approval?

Economic development staff "Published legal notice for MedHab incentives" and "Attended meeting with MedHab to discuss website development."  In addition they "Sent MedHab Incubator agreement to City Legal Department for review."

December 2012 - Economic development staff met with MedHab regarding move to Incubator

February 2013 - MedHab CEO Johnny Ross gave the following update on February 13, 2013:  The first paragraph is from the minutes of the meeting while the second is from the agenda packet.

Mr. Schneeman introduced Mr. Johnny Ross from MedHab. Mr. Ross provided an update on the progress of his business and StepRite product. MedHab will be launching the retail product in March. Two employees have been hired and an estimated eight positions will be filled in 2013. Manufacturing and distribution will be moved to San Angelo once there is FDA approval and a redundancy location is identified. MedHab projects to sell approximately 10,900 units in 2013. Mr. Teague asked if this was a realistic number and Mr. Ross stated that TMAC has analyzed the production and believe that the manufacturing process can hit that number. 
The Economic Development annual report stated "Transitioned MedHab to the 2009 West Beauregard location."  A maintenance agenda item said this regarding MedHab, "The 2009 West Beauregard building, occupied by MedHab also provides certain challenges."

March, April and May 2013 - The City expected to pay MedHab nearly $800,000 of the $2.8 million in cash incentives.  Year to date MedHab has not submitted any requests for payment.

June 2013 - COSADC board meeting for June 12 has been cancelled.  No background packet has been posted for public review.

Medhab's website is now "under construction," its years of static existence broken only by the San Angelo production site announcement.  .MedHab will present to Fort Worth angel investors on June 20.  Will C-suite rainmaker Johnny Ross unveil the new website in that meeting?

Mayor New indicated two MedHab employees doubled to four in his "I could give you an update right now" teaser to Council member Silvas.

"I know a lot more than that, but let's go by what is presented.  OK."-Mayor Alvin New
It's not clear where these four MedHab employees are located given Ross' stated conditions on moving production to San Angelo, FDA approval and establishment of a redundancy site.

A simple presentation would provide Council and the public their deserved update.  Maybe it'll come after MedHab board member Alvin New steps down as Mayor.

Update 6-28-13:  A MedHab update is on City Council's agenda for July 2.  It took three requests and Mayor New's stepping down for that to happen.

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