Iowa Economic Development Authority - Cottingham & Butler Copyrighted
February 5, 2018
City of Dubuque Action Items # 7.
ITEM TITLE: lowa Economic DevelopmentAuthority Contractwith
Cottingham & Butler Insurance Services, Inc.
SUMMARY: City Manager recommending approval of a contract by and
among Cottingham & Butler, Inc., the Cityof Dubuque and
the lowa Economic DevelopmentAuthorityforthe
expansion of Cottingham & Butler's operations at 800 Main
Street.
RESOLUTION Authorizing the execution of a contract for
State Business Financial Assistance by and among
Cottingham & Butler Insurance Services, Inc., the City of
Dubuque, lowa and the lowa Economic Development
Authority
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Cottingham& Butler Financial Assistance Contract- City Manager Memo
NNM Memo
Staff Memo Staff Memo
Contract Supporting Documentation
Resolution of Approval Resolutions
THE CTTY OF Dubuque
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2013 2017
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: State of lowa Business Financial Assistance Contract among
Cottingham & Butler Insurance Services, Inc., City of Dubuque, and
lowa Economic Development Authority
DATE: February 1 , 2018
Economic Development Director Maurice Jones recommends City Council approval of a
contract by and among Cottingham & Butler, Inc., the City of Dubuque and the lowa
Economic Development Authority for the expansion of Cottingham & Butler's operations
at 800 Main Street with an additional $2.3 million investment and addition of 20 jobs.
Cottingham & Butler was established in 1887 and is the 37th largest insurance broker in
the U.S. and a recognized leader in employee benefit insurance solutions. The
company is headquartered in Dubuque, lowa, and employs over 600 employees across
the U.S. Cottingham & Butler provides a full suite of risk management and employee
benefits services.
Beginning in 2015 C&B established a plan to increase employment in lowa by 90
positions, to be predominantly located in Dubuque at 1000 & 1030 Main Street. That
project is underway and the company proposes to complete the hiring by March of
2018. The project cost is more than $1 .2 million. C&B applied to the lowa Economic
Development Authority for assistance in the form of grants and loans — $305,000 in
training fund reimbursement for the 90 jobs, as well as direct financial assistance of
$600,000 from the IEDA. The incentives were offered through the State's High Quality
Jobs Program.
Only a year later, C&B invested another $1 .2 million, adding 90 more jobs to downtown
Dubuque. The company has applied to the IEDA for direct financial assistance in the
amount of$300,000. The company is leasing approximately 25,000 square feet of
space in the Roshek Building to accommodate these new employees, 75 of which will
qualify for the IEDA's assistance program. The buildout for this expansion has already
begun, with positions scheduled to be hired before April 2019.
For the third consecutive year, C&B is investing in downtown. The company plans to
add another 20 jobs at its existing location of 800 Main Street at an estimated cost of
$2.3 million.
On November 6, 2017, City Council authorized the Mayor to execute an application to
IEDA for financial assistance.
On October 20, 2017, IEDA approved the following award: The Company is eligible for
up to $141 ,000 in tax credits and an $80,000 High Quality Jobs Program Loan, which is
forgivable contingent upon program compliance. A $150,000 loan from ECIA and $1 .9
million in financing by C&B will complete the funding of the two projects.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
1�ls���l �w� j��=�e�.
Mic ael C. Van Milligen ' �
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
2
Dubuque Economic Development Department
THE CITY OF �,.,/�,.,� SO West 13�h Street
fi.i.ii� Dubuque, lowa 52001-4864
DuB E �'�'�c�"
1 I I I I I Office(563)589-4393
TTY(563)690-6678
MCiSt21'�JlECE OYL t�1E M1551551�1�11 http://www.cityofdubuque.org
200]•2012•2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: State of lowa Business Financial Assistance Contract among
Cottingham & Butler Insurance Services, Inc., City of Dubuque, and
lowa Economic Development Authority
DATE: February 1, 2018
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing
Contract 18-DF/TC-020 among Cottingham & Butler Insurance Services, Inc. (C&B), the
City of Dubuque, and the lowa Economic Development Authority (IEDA).
BACKGROUND
Cottingham & Butler was established in 1887 and is the 37th largest insurance broker in
the U.S. and a recognized leader in employee benefit insurance solutions. The company
is headquartered in Dubuque, lowa, and employs over 600 employees across the U.S.
Cottingham & Butler provides a full suite of risk management and employee benefits
services.
Beginning in 2015 C&B established a plan to increase employment in lowa by 90
positions, to be predominantly located in Dubuque at 1000 & 1030 Main Street. That
project is underway and the company proposes to complete the hiring by March of 2018.
The project cost is more than $1.2 million. C&B applied to the lowa Economic
Development Authority for assistance in the form of grants and loans — $305,000 in
training fund reimbursement for the 90 jobs, as well as direct financial assistance of
$600,000 from the IEDA. The incentives were offered through the State's High Quality
Jobs Program.
Only a year later, C&B is invested another $1.2 million and is adding 90 more jobs to
downtown Dubuque. The company has applied to the IEDAfor directfinancial assistance
in the amount of$300,000. The company is leasing approximately 25,000 square feet of
space in the Roshek Building to accommodate these new employees, 75 of which will
qualify for the IEDA's assistance program. The buildout for this expansion has already
begun, with positions scheduled to be hired before April 2019.
DISCUSSION
For the third consecutive year, C&B is investing in our downtown. The company plans to
add another 20 jobs at its existing location of 800 Main Street at an estimated cost of$2.3
million.
On November 6, 2017, City Council approved Resolution 157-16353-17, authorizing the
Mayor to execute an application to IEDA for financial assistance, and directing the City
Manager to submit the Application to IEDA with other required documents.
On October 20, 2017, IEDA approved Contract 18-DF/TC-020 with the following award:
The Company is eligible for up to $141 ,000 in tax credits and an $80,000 High Quality
Jobs Program Loan, which is forgivable contingent upon program compliance. A
$150,000 loan from ECIA and $1 .9 million in financing by C&B will complete the funding
of the two projects.
RECOMMENDATION
I recommend that the City Council approve Contract 18-DF/TC-020 by and among
Cottingham & Butler, Inc., the City of Dubuque, and IEDA for the additional $2.3 Million
investment for the expansion of its operations in Dubuque. The proposed project will add
20 jobs and promote the City's goal of retaining and expanding business to add to the
economic base.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
Prepared by: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393
Return to: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 31-18
AUTHORIZING THE EXECUTION OF A CONTRACT FOR STATE BUSINESS
FINANCIAL ASSISTANCE BY AND AMONG COTTINGHAM & BUTLER INSURANCE
SERVICES, INC., THE CITY OF DUBUQUE, IOWA, AND THE IOWA ECONOMIC
DEVELOPMENT AUTHORITY
WHEREAS, Cottingham & Butler Insurance Services, Inc. has proposed making a Two
Million Thee Hundred Thousand Dollar ($2,300,000.00) investment in tenant
improvements to its existing property at 800 Main Street in the City of Dubuque, Iowa
which will allow the creation of twenty (20) full-time jobs in the City; and
WHEREAS, the City Council of the City of Dubuque, Iowa has considered the proposal
and has determined that the proposed project will contribute to the local economy; and
WHEREAS, financial assistance from the Iowa Economic Development Authority is
designed to assist in the economic development efforts of local jurisdictions; and
WHEREAS, the Iowa Economic Development Authority has requested execution of an
Economic Development Assistance Contract in order to finalize incentives and document
associated terms for the tenant improvements of Cottingham & Butler Insurance Services,
Inc.'s proposed project at 800 Main Street in the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the execution of the Economic Development Assistance Contract 18-
DF/TC-020 for participation in the Iowa Economic Development Authority's Financial
Assistance Program on behalf of Cottingham & Butler Insurance Services, Inc., a copy of
which is attached hereto, is hereby approved.
Section 2. That the Mayor is hereby authorized to execute and the City Manager is
hereby directed to submit the Economic Development Assistance Contract to the Iowa
Economic Development Authority together with such other documents as may be
required.
Passed, approved, and adopted this 5th day of February, 20
Roy D. Buor%Mayor
Attest:
Kevi 'irnstahl, City Ierk