Development agency sues scooter company

The Pflugerville Community Development Corp. has sued National Scooter Co. Inc., which in a deal two years ago took incentive money and promised to grow its business assembling and selling electric scooters and bicycles.

In the lawsuit, which was filed in October, the development corporation says National Scooter was in breach of a contract that stated financial and employee goals. Pflugerville Community Development Corp. Executive Director Floyd Akers said the lawsuit comes after a change to the agreement allowed the scooter company to shutter its business and reopen last March. The company was given two years to hire 32 employees or repay the money. But the company even- tually closed.

“After sending a demand letter requesting repayment, I had no choice but to file suit in the Travis County court of law,” Akers said.

The development corporation is seeking $165,000 it gave to the scooter company as well as other fees.

Attempts to reach a representative of National Scooter were unsuccessful.

According to the lawsuit, National Scooter agreed to have its manufacturing and retail operations in Pflugerville for at least five years; employ at least 32 people and maintain that number through July 1, 2016; have a payroll of at least $1.9 million; purchase new equipment, fixtures and furniture for the facility; and have a training facility for certified technicians with the first five years of the agreement.

The development corpora- tion agreed to pay National Scooter an additional $2,500 for each full-time employee more than 32 and up to 62 employees and keep those jobs for at least four years.

In September, the development corporation attempted to get money reimbursed from the contract but National Scooter closed the business and didn’t provide contact information, Akers said.

Akers said the development corporation, a taxpayer-funded organization created by voters in 2003 to bring business to the city, uses about 5 percent of its $2.3 million annual budget to help startups.

“We’re not going into this thinking all of these businesses are going to be successful,” he said.