IEDA_Medline Industries, Inc. Financial Assistance Application Copyrighted
March 19, 2018
City of Dubuque Action Items # 4.
ITEM TITLE: lowa Economic Development Authority- Medline
Application
SUMMARY: City Manager recommending approval of a resolution
authorizing the submission of an lowa Economic
DevelopmentAssistance Application by Medline Industries,
Inc. to the lowa Economic DevelopmentAuthority.
RESOLUTION Approving an Application for State Business
Financial Assistance on Behalf of Medline Industries, Inc.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Medline State of lowa Business Financial Assistance City Manager Memo
Application-NNM Memo
Staff Memo Staff Memo
IEDAApplication Supporting Documentation
Resolution of Approval Resolutions
THE CITY OF Dubuque
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Masterpiece on the Mississippi Z°°'�w'2
7A13 2017
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: State of lowa Business Financial Assistance Application — Medline
Industries, Inc.
DATE: March 14, 2018
Economic Development Director Maurice Jones recommends City Council approval of a
resolution authorizing the submission of an lowa Economic Development Assistance
Application by Medline Industries, Inc. to the lowa Economic Development Authority.
Medline is planning to expand its operations in Dubuque from the current 481
employees with an addition of at least 105 new full-time employees. In order to
complete the project, the company is requesting both local and state incentives. The
company is applying to the lowa Economic Development Authority for direct financial
assistance in the amount of$1 ,559,840.
On a separate agenda item, the City Council will be setting a public hearing on a
proposed Development Agreement that provides for City incentives, including Urban
Renewal Tax Increment Revenue Grant Obligations for 10 years of Tax Increment
Finance (TIF) rebates of property tax increases, to encourage the development of the
property on the 20.47 acres of land for an $18.4 Million capital investment in a new
120,000 square foot facility. The estimated value of the TIF rebates is between
$3,600,000 and $3,900,000. Additional terms and conditions of the disposition of the
property are included in the proposed Development Agreement.
The Development Agreement between the City and Medline is contingent upon the
company also receiving State of lowa incentives. The Development Agreement allows
Medline to not close on the Development Agreement if State incentives are not
received.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
�� �� ���
Mic ael C. Van Milligen �� �
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Maurice Jones, Economic Development Director
2
Dubuque Economic Development Department
THE CITY OF 50 West 13t"Street
All-AmericaCity Dubuque,lowa 52001-4864
1 ' Office(563)589-4393
TTY(563)690-6678
� http://www.cityofdubuque.org
Masterpiece on the Mississippi 200�.2012•2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: State of lowa Business Financial Assistance Application — Medline
I ndustries, I nc.
DATE: March 12, 2018
INTRODUCTION
This memorandum presents for City Council review and approval a resolution
authorizing the submission of an lowa Economic Development Assistance Application
by Medline Industries, Inc. to the lowa Economic Development Authority (IEDA).
BAC KG RO U N D
Medline is the largest privately held manufacturer and distributor of inedical products in
the world. Medline is a family owned business that has just recently celebrated its 50th
anniversary. The company sells medical products across the continuum of care (i.e.,
from retail stores to doctor's offices, hospitals, nursing homes, surgical centers, etc.).
Product ranges from latex gloves to gauze to walkers and wheel chairs to sterile and
convenience kits and packs.
DISCUSSION
Medline is planning to expand its operations in Dubuque from the current 481
employees with an addition of at least 105 new full-time employees. In order to
complete the project, the company is requesting both local and state incentives. The
company is applying to the I EDA for direct financial assistance in the amount of
$1,559,840.
The proposed Development Agreement provides for City incentives, including Urban
Renewal Tax Increment Revenue Grant Obligations for 10 years of Tax Increment
Finance (TI F) rebates of property tax increases, to encourage the development of the
property on the 20.47 acres of land for an $18.4 Million capital investment in a new
120,000 square foot facility. Additional terms and conditions of the disposition of the
property are included in the proposed Development Agreement.
The Development Agreement between the City and Medline is contingent upon the
company also receiving State of lowa incentives. The Development Agreement allows
Medline to not close on the Development Agreement if State incentives are not
received.
RECOMMENDATION
I recommend that the City Council approve the Economic Development Assistance
Application on behalf of Medline Industries, Inc. for the proposed investment of
approximately $18.4 million for the expansion of its operations in Dubuque. The
proposed project would add 105 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. 74-18
APPROVING AN APPLICATION FOR STATE BUSINESS FINANCIAL ASSISTANCE
ON BEHALF OF MEDLINE INDUSTRIES, INC.
Whereas, Medline Industries, Inc. has proposed making an Eighteen Million Four
Hundred Thousand Dollar ($18,400,000) investment in the City of Dubuque for
development of a One Hundred Twenty Thousand square foot (120,000 sq. ft.) office
facility and the creation of One Hundred Five (105) new full-time jobs in the City; and
•
Whereas, the City of Dubuque (City) and Medline Industries, Inc. (Medline) have
tentatively entered into a Development Agreement for the sale of. City -owned real estate
to Medline for such development; 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 through
the creation of One Hundred Five (105) new full-time jobs in the City, all of which qualify
for the Iowa Economic Development Authority Business Financial Assistance Program;
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 City approval of
an Application for Economic Development Assistance Contract in order to finalize
incentives and document associated terms for the development of Medline's proposed
project in the City of Dubuque, Iowa; and
Whereas, the City Council finds that it is in the best interests of the City of Dubuque to
approve the Application.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the filing of an Application for participation in the Iowa Economic
Development Authority's Financial Assistance Program on behalf of Medline Industries,
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 Application to the Iowa Economic Development Authority
together with such other documents as may be required.
Passed, approved, and adopted this 19th day of March, 2018.
Attest:
Kevi S. Firnstahl,' ity ` erk
2
19t
Roy D uol, Mayor
� � �� � � �� DebiV. Durham, Director
lowa Economic Devebpment Aufhority
Business Financial Assistance Application
Business Finance - Business Development Division
lowa Economic Development Authority
200 East Grand Avenue
Des Moines, lowa 50309-1819
iowaeconomicdeveloomentcom
Telephone�. 515348.6153 Email�. businessfinancel�iowaedacom
Application Instructions
To Complete Electronic Form: Clickon TEXT BOX to etltl taxt Double click on YES/NO boxes entl select"Checketl".
1. FUI applicants must complete the Business Financial Assistance Application and attach onlv those
additional sections Por the components to which the applicant is applying.
STATE of IOWA— Financial Assistance Proaram
High Quality Jobs Program (HQJ)
� Tax Credits
❑ DirectFinancialAssistance
2. Before filling out this application form, please read all applicable sections of the lowa Code and lowa
Administrative Code (rules). https:/iWww.leqis.iowa.qw4aw/administrativeRules
3. Only tvoed or comouter-aenerated applications will be accepted and reviewed. Any material change to
the format, questions, or wording of questions presented in this application will render the application
invalid and it will not be accepted.
4. Complete the applicable sections ofthe application fully. If questions are leR unanswered or required
attachments are not submitted, an explanation must be induded.
5. Use clear and concise language. Attachments should only be used when requested or as supporting
documentation.
6. My inaccurate information of a signifcant nature may disqualify the application from consideration.
7. The following must be submitted to Business Finance at IEDA to initiate the review process:
• One original, signed application Porm and all required attachments
• One elec[ronic copy of the application form and all required attachments
Facsimile cooies will no[ be acceo[etl.
Applications must be submittetl to IEDA Business Finance before 4:00 p.m. on the fourth Montlay of the
month.
Applications will be reviewetl bythe IEDA Boartl on the thirtl Fntlay of the following month.
Public Records Policies
During the application process, the information submitted by you to IEDA is exempt from disclosure under
the "industrial prospects" exemption found in Section 22.7(8). However, once you receive an award, the
industrial prospects exemption no longer applies and all documents submitted and generated during the
application and negotiation process become public records under lowa's Open Records Law(lowa Code,
Chapter 22), unless
1) The information belongs to one of the classes of records automatically treated as confidential; or
2) You have applied for and received written notice that your information will be treated as confidential.
Automatically Confidential Records
IEDA automatically treats the following records as confidential and will withhold them from public inspection
even without a request for confidential treatment:
• Tax Records and Tax Liability Information
• Quarterly lowa Employer's Contribution and Payroll Report prepared for the lowa Workforce
Development Department
• Payroll Registers
• Business Financial Statements and Projections (unless those statements are already publicly
available elsewhere, e.g., 10-K filings)
• Personal Financial Statements
Exemptions to the Open Records Law
If you wish to have additional information treated as confidential, you must fill out the confidential treatment
request form. This form is available by request. Under the Open Records Law, IEDA may lawFully treat
certain information as confidential if that information falls within an exemption to the Open Records Law. The
following exemptions represent records which may lawFully be treated as confidential under the Open
Records law and which are most often applicable to the information submitted to IEDA:
• Release of information would give an unfair advantage to competitors— lowa Code Sec. 15.118
• Trade secrets —See lowa Code section 22.7(3), see also lowa Code Ch. 550
• Information on an industrial prospect with which the IEDA is currently negotiating —See lowa Code
section 22.7(8)
• Communications not required by law, rule or regulation made to IEDA by persons outside the
government to the extent that IEDA could reasonably believe that those persons would be
discouraged from making them to IEDA if they were made available for general public
examination — lowa Code section 22.7(18)
Non-Confidential Information
Information that is submitted to IEDA as part of the application process or that is contained in a contract for
program benefits is generally considered material to the eligibility requirements of the program or to the
amount of incentives or assistance to be provided. Such information is generally not given confidential
treatment. Such information includes but is not limited to, the number and type of jobs incented, the wage
levels for the incented jobs, your company's employee benefit information, and your project budget.
Additional Information Available. Copies of lowa's Open Record law and IEDA's administrative rules
relating to public records are available from the IEDA upon request.
SECTION A
Applicant Information Date Application Submitted:
1. Name of Business: Medline Industries, Inc.
2. Entity Name(s) for contracting (please include all that are involved in proposed project): Medline
Industries, Inc.
3. Address: Three Lakes Drive
4. City, State &Zip Code: Northfield, IL 60093
5. Contact Person: Eric Gerstein Title: Vice President, Tax
6. Phone: 847-643-4603 Fax: 847-643-3744 Email:
egerstein@medline.com
7. FEIN: 36-2596612
8. Please indicate your tax period end date: 12/31
9. NAICS Code for primary business operations: 424990
10. US DOT Number:
11. Does the Business file a consolidated tax return under a different tax ID number?
❑ Yes (If yes, please also provide that tax ID number) � No
a. Is the contact person listed above authorized to obligate the Business?
� Yes ❑No If no, please provide the name and title of a company officer authorized to
obligate the Business:
12. If the application was prepared by someone other than the contact person listed above, please
complete the following:
Name of Business:
Address:
City, State & Zip Code:
Contact Person: Title:
Phone: Fax: Email:
$pO11SOC �IIfOCCT12t1011 (A sponsor organization is a city or county)
13. Sponsor Organization: City of Dubuque
14. Official Contact (e.g. Mayor,
Chairperson, etc.): Roy Buol Title: Mayor
Address: 50 W. 13th Street
City, State &Zip Code: Dubuque, IA 52001
15. Phone: 563 589-4110 Fax: Email:
16. If IEDA needs to contact the sponsor organization with questions, should we contact the person
listed above?
� Yes ❑ No, please contact the following person:
Name: Maurice Jones Title: Economic Development Director
Address: 50 W. 13th Street
City, State & Zip Code: Dubuque, IA 52001
Phone: (563) 589-4393 Fax: Email: mjones@cityofdubuque.org
If necessary, please list information on additional sponsors in an attachment.
SECTION B
Business Information
1. Provide a brief description and history of the Business. Include information about the Business'
products or services and its markets and/or customers.
Medline is the largest privately held manufacturer and distributor of inedical products. Medline is a family owned
business that has just recently celebrated its 50'" anniversary. Medline sells medical products across the continuum of
care (i.e., from retail stores to doctor's offices, hospitals, nursing homes, surgical centers, etc.). Product ranges from
latex gloves to gauze to walkers and wheel chairs to sterile and convenience kits and packs.
2. Business Structure:
❑ Cooperative ❑ Corporation ❑ Limited Liability Company
❑ Partnership � S-Corporation ❑ Sole Proprietorship
3. State of Incorporation: Illinois
4. Identify the Business' owners and percent ownership:
The following individuals directly or indirectly own greater than 10%:
• Charles Mills 36%
• Andrew Mills 17%
• Wendy Abrams 17%
• Samuel Barnett 12%
• Margaret Dora Baker 11%
5. Does a woman, minority, or person with a disability own the Business? � Yes ❑ No
Medline is partially owned by women.
6. List the Business' lowa locations and the most current number of employees at each location.
a. Dubuque, 481 employees
7. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and
other affiliated entities in this figure.) 15,000
Project Information
8. Project Street Address: Innovation Drive
Project City&Zip Code: Dubuque Project County: Dubuque
9. Type of Business Project:
❑ Startup ❑ Expansion of lowa Company � New Location in lowa
10. Does the project site qualify as a"Brownfield"or"GrayField" site? ❑ Yes � No
If yes, please explain and document as Attachment A6.
11. Describe the proposed project for which assistance is being sought. (Include project timeline with dates,
facility size, infrastructure improvements, proposed products/services, any new markets, etc.)
Construction of a new customer service center in Dubuque, lowa. This project is intended to be a replacement, upgrade, and
expansion of the existing call center. Our existing facility is 65,000 sqft. The new facility will be 130,000 sqft. including
additional amenities such as a workout center, cafeteria, etc. Construction is targeted to starf in Q2 2018 and opening no later
than Q4 2019.
12.
Pro'ect Timeline (add additional rows as needed) Beginning Activity Date Activity Completion Date
Close on Land Ma 2018
Construction June 2018 October 2019
Be in O erations November 2019
13. Has any part of the project started*? ❑ Yes � No
If yes, please explain.
*For IEDA's purposes, starting the project includes:the start of construction or rehabilitation, the purchase of a building, the execution of a lease, or
the installation of equipment to be used in the project.
14. Identify the Business' competitors. If any of these competitors have lowa locations, please explain the nature of
the competition (e.g. competitive business segment, estimated market share, etc.) and explain what impact the
proposed project may have on the lowa competitor. Owens & Minor, McKesson, Cardinal, etc. This expansion is
for a an new customer service center that will double the size of our existing facility. It should not directly impact
our competitors as we are not utilizing the facility purely for sales in lowa. Instead this facility will support our sales
nationwide.
15. Will any of the current lowa employees lose theirjobs if this project does not proceed?
❑ Yes � No
If yes, please explain why and identify those jobs as"retained jobs" in the Project Jobs Section E
Medline is evaluating the replacement of its existing facility in Dubuque with a new facility in Dubuque. If Medline is
unable to find a suitable project in Dubuque, the customer service center could be located to Medline's vacant 220,000
square foot former headquarters in Mundelein, IL at which Medline already has an incentive in place from the state of
IL. With that said, it is Medline's preference to retain the outstanding team that has been assembled in Dubuque and
help grow through this project.
16. Is the Business actively considering locations outside of lowa? � Yes ❑ No
If yes, where and what assistance is being offered? Mundelein, IL- IL EDGE agreement is already in place.
17. Please identify the company project management for the project location and experience. Dmitry Dukhan
(Real Estate); Renee Poppe (VP Customer Service)
SECTION C
Applicant's Project Budget
1. Does the Business plan to lease the facility? ❑ Yes � No
If yes, please provide the Annual Base Rent Payment(lease payment minus property taxes, insurance, and
operating/maintenance expenses) for three years in the budget below, and only major renovation costs your
company expects to incur. Administrative rules require that the lease be in place for a minimum of five years.
2. Please complete the budget below. Include onlv costs the companv plans to incur directiv:
Use of Funds Cost Source A Source B Source C Source D Source E Source F
Base Rent 3 ears
Tenant Im rovements
Land Acquisition $1,212,000 $1212.000
Site Pre aration $3,000,000 3,000,000
Buildin Ac uisition
Buildin Construction $11,400,000 11,400,000
Buildin Remodelin
Mf . Machiner & E ui .
Other Machiner & E ui .
Rackin Shelvin etc.'
Com uterHardware $500,000 500,000
Com uter Software
Furniture & Fixtures $3,500,000 3,500,000
Workin Ca ital
Research & Develo ment
Other
TOTAL $19,612,000 $ $19,612,000 $ $ $
' Racking,shelving and conveyor equipment used in distribution center projects only
3. Please complete the chart below with proposed financing for the project (tax benefits should be reflected as indirect
financin under#5 below :
PROPOSED FINANCING
Source of Funds Form of Funds Conditions/Additional
Information
AmOuM (Loan,Grant, In- Rate and Commitment Include when funds will be
Add additional lines as needed Kind, Donation,etc.) Term Status disbursed; If loan,whether
payments are a level term,
balloon, etc
Source A: IEDA (see#4 below) $
Source B: Local Government
Source C: Business $19,612,000 Self-Funded
Source D: Other Source $
Source E: Other Source $
Source F: Other Source $
TOTAL $19,612,000
4. Direct financial assistance(loansfforgivable loans) must be secured with acceptable collateral. Please
select the type of collateral your company will pledge to secure the IEDA financing, and document its value
in Attachment A5.*
Explain:
No collateral, fundin disbursed at the end of the 5- ear contract ❑
Irrevocable letter of credit ❑
Dedicated certificate of de osit CD ❑
*The IEDA Board has the final discretion on what collateral will be accepted.
5. Please com lete the chart below with tax credits and other indirect financin ex ected for the roject:
TAX CREDITS AND INDIRECT FINANCING
Source of Funds Amount Description
InvestmentTaxCredit $1,127,840 7% ITC based on $16,112,000 of capital
expenditures
Sales, Service& Use Tax Refund $432,000 Sales tax rebate on construdion
Research Activities Credit 3%/10% n/a
Local Pro ert Tax Exem tion
Tax Increment Financin $3,600,000
260EJobTrainin Funds $680,150 JobTrainin Reimbursement
In-kind Contribution
Other $1,212,000 50% Discount on Land to be purchased from
City of Dubuque. Subject to approval by city
council
TOTAL $
6. There are three justifiable reasons for providing assistance. Check the box next to the reason why
assistance is needed to complete this project.
❑ Financing Gap - A gap exists between the financing required and the financing on-hand and the provision of
tax incentives or assistance is necessary to fill the gap.
❑ Rate of Return Gap—The likely returns of the project are inadequate to motivate a company decision maker to
proceed with the project even if sufficient debt or equity can be raised to finance the project, and the projecYs risks
outweigh its rewards, making the provision of tax incentives or assistance necessary to reduce the projecYs risks.
� Location Disadvantage(Incentive)—The business is deciding between a site in lowa ("lowa site") and a site
in another state ("out-of-state site") for its project and the cost of completing the project at the out-of-state site is
demonstrably lower, making tax incentives or assistance necessary to equalize the cost differential between the
two sites. Note: The authority will attempt to quantify the cost differential between the sites.
7. Please provide a brief explanation of the need for assistance.
Medline already has an incentive available and 220,000 sqft of unused office space available in IL. As described
above, Medline's preference is to expand in Dubuque and grow its outstanding customer service team in IA rather than
start over in IL. However, the vacant space and the IL Incentive that is worth approx. $18M make the economics of
expanding in Dubuque challenging. Assistance is needed to close this financial gap due to the locational disadvantage.
SECTION D
Employee Benefits
There are three options to meeting the sufficient benefit requirement. These options are detailed in the chart
below. Please complete questions 1-3. If your company meets Option 1 or 2, no additional information is
required. If ou would like to utilize O tion 3, lease also com lete uestions 4-6.
Option 1 Option 2 Option 3
80% single Coverage 50% Family coverage Moneta E uivalent
Total Number of Pay 80% of premium costs Pay 50% of premium costs for Provide medical and pay the
Employees in for a standard medical plan, a standard medical plan, monetary equivalent of Option
US single coverage. family coverage. 1 or Option 2 in supplemental
250+ $1250maximum deductible $2500 maximum deductible employee benefits.
50-249 $2250 maximum deductible $4500 maximum deductible Benefits Counted Toward
0-50 $2000 maximum deductible $4000 Maximum deductible MonetarvEpuivalent:Medical
coverage, Dental coverage,
Vision insurance, Life
insurance, Pension, 401(k)
(company's Average
contribution, Short-�ong-term
disability insurance, Child care
services, Other nonwage
com ensation
1. How many full-time, permanent employees does your company currently employ within the U.S.? 11,276
2. What is the total premium cost for a standard medical plan for single employee coverage? $553.51
a. What portion of this cost is paid by the business? 65.3%
b. What is the deductible associated with this plan? $750
3. What is the total premium cost for a standard medical plan for family coverage? $1,861.62
a. What portion of this cost is paid by the business? 54.3%
b. What is the deductible associated with this plan? $2,250
No additional information reauired, in this section, if vour companv meets the reauirement for Option 1 or Option 2
4. Does your company provide additional benefits to full time employees? �Yes ❑No
If es, lease rovide the annual amount offered b the business, er em lo ee in the chart below:
Benefit Annual amount paid bythe
business er em lo ee :
Dentallnsurance—Sin le lan $0
Dental Insurance—Famil lan $0
Pension Use 3-year average calculated below) $0
Retirement Plan - i.e. 401 k Use 3- earavera e calculated below $
P�ofit Sha�in Plan (Use 3-year average calculated below) $n/a
Childcare Services $0
Life Insurance covera e $1.5 times a
Disabilit Insurancecovera e 60% of a
Health Savin s Account HSA contribution $750sin le/$1,500 famil
TOTAL $
5. Does the Business offer a pension plan, 401(k) plan, and/or retirement-plan? � Yes ❑ No
IEDA—Business Financial Assistance Application 7 v.9.25.17
If yes, please indicate the amount contributed on a per employee basis by the Business to the plan for the last three
years. For 401(k) plans, please provide information on the company match and indicate the average annual match per
employee.
Year Ending Average Actual Match per
Em lo ee $
2017 $2,409
2016 $2 444
2015 $2,574
Three- ear Avera e: $2,465
6. Does the Business offer a profit-sharing plan? ❑ Yes � No
If yes, please indicate total amount paid out each year for the past three years and then, determine the average annual
bonus or contribution er em lo ee for that three ear eriod.
Year Ending Average Actual Share per
Em lo ee $
$
$
$
Three- ear Avera e: $N/A
Notes:
1. A qualified plan must be offered to all full-time permanent employees.
2. If you have multiple health insurance plans,please provide information on each plan.
IEDA—Business Financial Assistance Application 8 v.9.25.17
SECTION E
Project Jobs
1. List the jobs that will be created and/or retained as the result of this project. (A retained job is an existing job that
would be eliminated or moved to another state if the project does not proceed in lowa.) For jobs to be created,
include the startinq and final hourly wage rate. For retained jobs, include the current hourly wage rate.
Full-Time CREATED Jobs (Add additional rows as needed)
Job Title Number of Starting Wage at 36 months
CREATED Jobs Hourl Wa e followin the award
Leads 6 20.15 22.40
Re resentative 29 16.29 17.50
Mana ers 51 18.75 22.40
Supervisor/Director/VP/Sales 4 25.80 27.42
Su ort
Associate/Clerk/Coordinator/Anal st 15 19.77 22.40
Total Full-Time CREATED Jobs 105
Full-Time RETAINED Jobs (Add additional rows as needed)
Number of Current Hourly
Job Title (AT-RISK jobs only) RETAINED Wage
Jobs
Total Full-Time RETAINED Jobs
2. Is the hourly wage rate based on a 40 hour work week, 52 weeks per year? � Yes ❑ No
If no please explain:
Business Financial Assistance Application —
Medline Industries, Inc.
Page 10 — original redacted from City Council copy, as it contains confidential
information
SECTION G
Attach ments
Please attach the following documents:
A1 Project Plan
Please provide an executive summary for your project. This information should include, at a minimum,
expanded information about the company's products and services and any other project related information
that has not already been described in the application for financial assistance.
Please note, a traditional business plan, including an executive summary, market analysis, organization and
management structure, marketing and sales management, service and product line narrative, financial
projections, feasibility study and patent status, as well as any other relevant information, may be requested by
the lowa Economic Development Authority to evaluate the feasibility of this project.
A2 Payroll Information (Confidential)
• Copies of the Business' Quarterly lowa Employer's Contribution and Payroll Report for the past
year. This report should include the monthly employment totals.
• A copy of the most recent payroll report for one pay period. The copy of the most recent payroll
report for one pay period must be in Excel format and include the following information:
o Company name, date of payroll and source of payroll information
o Employee name and/or employee identification number
o Current hourly wage - do not include bonuses or other benefit values
o Indicate if the employee is full time (40 hours per week, 52 weeks per year) or part time.
o A sample Excel spreadsheet can be provided by IEDA staff
A3 Affidavit that states the Business has not, within the last five years, violated state or federal statutes, rules,
and regulations, including environmental, worker safety regulations and antitrust laws, or, if such violations
have occurred, that there were mitigating circumstances or such violations did not seriously affect public health
or safety or the environment. A sample affidavit can be provided by IEDA staff.
A4 Financial Information (Confidential, unless already publicly available) (Existing Businesses Only)
• Profit and loss statements and balance sheets for past three year-ends;
• Current YTD profit and loss statement and balance sheet;
• Schedule of aged accounts receivable;
• Schedule of aged accounts payable; and
• Schedule of other debts.
A5 Collateral documentation (If requesting direct financial assistance only) N/A
A6 Brownfield or GrayField site documentation (if applicable) N/A
SECTION H
Certification & Release of Information
1: Are there any judgments or court actions completed or pending against the applicant entity, or any current or
prospective officer, principal, director; or owner'? ❑Yes ►/ No
2. Has any current or prospective officer, principal, director, or owner been accused or convicted of any wrongdoing or
crime, other thana simple misdemeanor?
❑ Yes ® No
3. Have there been any current or past bankruptcies on the part of the applicant entity (or predecessor entities), or on
the part of any current (or prospective) officer, principal, owner or in any business dealings of current (or
prospective) officers, principals, or owners of the applicant entity'? ❑ Yes El No
4 In the last five years have there been, or are there currently any investigations of potential violations of public
health, safety (including workplace safety) or environmental laws by the applicant entity, or any current or
prospective officer; principal, director, or owner? ❑ Yes ►1 No
5. In the last five years have there been, or are there currently any violations of antitrust laws by the applicant entity,
or, any current or prospective officer, principal, director, or owner'? ❑ Yes 11 No
6. If yes to any of the above, `please provide additional explanation;
Ihereby give permission to the lows Economic Development Authority (IEDA) to research the Business' history, make credit checks,
contact the Business' financial institutions, insurance carriers, and perform other related activities necessary for reasonable
evaluation of this application. t also hereby authorize the Iowa Department of Revenue to provide to IEDA state tax information
pertinent to, the Business' state income tax, sales and use tax, and state tax credits claimed.
I understand that all information submitted to IEDA related to this application is subject to Iowa's Open Record Law (Iowa Code,
Chapter 22), unless specifically marked as confidential section.
I understand that IEDA reserves the right to negotiate the financial assistance.
I understand this application is subject to final approval by IEDA and the Project may not be initiated until final approval is secured.
Furthermore, I am aware that funds will not be disbursed until a contract has been executed and the appropriate terms have been
met.
I understand that upon execution of the contract and prior to the issuance of a tax credit number or the disbursement of Award
Funds, a recipient shall pay IEDA a one-time compliance cost fee in the amount of $500. In addition, if tax benefits are greater than
$100,000, the Recipient shall remit to IEDA a compliance cost fee 0.5% of the value of the Tax Incentives claimed pursuant to the
contract. The fee will be due and payable upon filing the Recipient's annual tax return for each tax year in which tax credits are
claimed under the contract.
QI hereby certify that all representations, warranties, or statements made or furnished to IEDA in connection with this application are
I hereby certify that all representations, warranties, or statements made or furnished to IEDA in connection with this application are
true and correct in all material respect. I understand that it is a criminal violation under Iowa law to engage in deception and
knowingly make, or cause to be made, directly or indirectly, a false statement in writing for the purpose of procuring economic
development assistance from a state agency or subdivision.
For the Business: For the Sponsoiris):
3/19/2018
Signature ate Signature Date
66, VPir,
Roy D. Buol, Mayor
Name and Title (typed or printed) Name and Title (typed or printed)
IEDA will not provide assistance in situations where it is determined that any representation, warranty, or statement made
in connection with this application is incorrect, false, misleading or erroneous in any material respect. If assistance has
already been provided prior to discovery of the incorrect, false, or misleading representation, IEDA may initiate legal action
to recover incentives and assistance awarded to the Business.
IEDA — Business Financial Assistance Application
12 v 9.25.17
Medline Industries. Inc.
lowa Business Financial Assistance Application
Attachment A-1
About Medline
Medline is the largest privately held manufacturer and distributor of inedical supplies uniquely positioned to provide
products,education and support across the continuum of care. Our ability to bring best practices from one care
setting to another —from large healthcare systems and independent physician practices to home health patients and
their families, is what sets us apart.
Our team is made up of clinicians, researchers,engineers, financial experts and 1,200 direct sales representatives with
outstanding expertise. They know the healthcare business from the bottom up and top down.
Our roots date back to 1910 when A.L. Mills founded a Chicago garment factory that made aprons for the stockyards.
Nuns working as tailors at a nearby hospital approached A.L. about making the hospital's garments, such as surgeon's
gowns and nursing uniforms,so they could spend their time caring for patients.
When A.L.'s son, Irving,took over the garment business in 1930,World War II created an unprecedented demand for
medical supplies. He started distributing general medical supplies in addition to the garments, and the Mills Hospital
Supply company was born.
Fast forward to today. Medline Industries, Inc. stands as a fourth generation,family-owned company offering over
350,000 medical products and clinical solutions to healthcare facilities in over 90 different countries around the
world. With 15,000 plus employees and more than $10 billion in sales,we are the fastest growing and hardest
working medical supply company today. Medline is the market leader in a variety of products, including exam gloves,
durable medical equipment(e.g.,wheel chairs,walkers,crutches, etc.), incontinence products,surgical procedure
trays, and drapes and gowns.
We have successfully responded to the changing needs of this highly complex industry. And, we have remained
dedicated to delivering the best quality products,services and clinical programs at a value, helping to make
healthcare affordable for all.
The Proiect
Medline's consistent and continued growth has created a need for significantly more customer service and sales
assistance. Medline has outgrown its existing 65,000 sqft. Dubuque customer service center and is looking to replace
it with a new larger facility. This will allow Medline to improve its service to its customers,dramatically increase its
employment, and provide additional and better amenities to its employees.
The new facility will be 130,000 sqft. and is planned to include a workout center,cafeteria, etc. Construction is
targeted to start in Q2 2018 and opening no later than Q4 2019.
IEDA—Business Financial Assistance Application 13 v.9.25.17