Close Out of Business Assistance Contract for Progressive Processing, LLC Copyrighted
J une 7, 2021
City of Dubuque Consent Items # 19.
City Council Meeting
ITEM TITLE: Close Out of Business Assistance Contract 14-DF/TC-015 for
Progressive Processing, LLC
SUM MARY: City Manager transmitting information to inform the City Council that the
terms of a Business Assistance Contract from the lowa Economic
Development Authority to Progressive Processing, LLC have been
satisfied, and the contract has been closed out by the State.
SUGGESTED Suggested Disposition: Receive and File
DISPOSITION:
ATTACHMENTS:
Description Type
Progressive Processing Close Out of I EDA Contract- City Manager Memo
MVM Memo
Staff Memo Staff Memo
I EDA Closeout Letter Supporting Documentation
Dubuque
THE CITY OF �
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Close Out of Business Assistance Contract 14-DF/TC-015 for Progressive
Processing, LLC
DATE: May 24, 2021
Economic Development Director Jill Connors is transmitting information to inform the
City Council that the terms of a Business Assistance Contract from the lowa Economic
Development Authority to Progressive Processing, LLC have been satisfied, and the
contract has been closed out by the State.
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Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill M. Connors, Economic Development Director
Rick Dickinson, Greater Dubuque Development Corporation President & CEO
Dubuque Economic Development
Department
THE CITY OF � 1300 Main Street
All•America Eity Dubuque,lowa 52001-4763
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Close Out of Business Assistance Contract 14-DF/TC-015 for Progressive
Processing, LLC
DATE: May 20, 2021
INTRODUCTION
The purpose of this memorandum is to inform the Manager and City Council that the
terms of a Business Assistance Contract from the lowa Economic Development
Authority (IEDA) to Progressive Processing, LLC have been satisfied, and the contract
has been closed out by the State.
BACKGROUND
IEDA administers a High-Quality Jobs program which provides qualifying businesses
assistance to offset some of the costs incurred to locate, expand or modernize an lowa
facility. This flexible program includes loans, forgivable loans, tax credits, exemptions
and/or refunds. IEDA offers this program to promote growth in businesses, which
employ lowans in jobs defined as high-quality by state statute.
To be eligible, companies must meet wage threshold requirements and provide a
sufficient benefits package to all full-time employees, including health and dental
coverage.
In 2014, Progressive Processing, LLC applied for this type of business assistance from
the State of lowa for the expansion of its operations and addition of well-paid jobs, with
the support of the City of Dubuque.
On February 20, 2015, IEDA approved Contract 14-DF/TC-015 with the following
award:
Progressive Processing, LLC was eligible for a $240,000 High Quality Jobs Program
Loan ($120,000 of which was forgivable if the contract requirements were met) and
$2,073,000 in tax incentives for the creation of 91 full-time equivalent (FTE)jobs, of
which 24 FTEs must pay a qualifying wage of at least $19.73 per hour. The Company
contributed $35,760,000 in capital to the project. The required local match was met with
an additional five years of tax increment financing rebates from the City of Dubuque.
DISCUSSION
Progressive Processing, LLC has met the job-creation requirements as stipulated, and
the lowa Economic Development Authority has informed the City that the contract has
been closed out. The Business currently provides a total of 314 FTE jobs, 118 of which
meet the qualifying wage.
RECOMMENDATION/ ACTION STEP
I recommend the Council receive and file the documents from the lowa Economic
Development Authority closing out Business Assistance Contract 14-DF/TC-015.
2
IOWA ECONOMIC DEVELOPMENT AUTHORITY � ���
1963 Bell Avenue,Ste.200 � Des Moines, [awa 50315 USA I Phone:515.348.8200
iawaeda.cam �_� ; ���;�� �
May 20, 2021
Ms. Yang Liu
Tax and Treasury Analyst
1101 N. Main St.
Austin, MN 55912
Sent via electronic delivery to: YLiu(c�hormel.com
RE: End of Maintenance Closeout— Contract 14-DF/TC-015
Dear Ms. Liu:
It is my pleasure to congratulate you on the successful completion of the above referenced
project. The Authority's review of this project indicates that all activities required by the Contract
have been completed and have met or exceeded expectations.
In summary:
1. The Project Completion Date was November 30, 2017 with a Project Maintenance
Date of November 30, 2019.
2. The Contract called for a total of 225 full-time equivalent (FTE)jobs, 95 of which pay a
qualifying wage of$19.73 per hour. The Business met the job and wage obligations
with a total of 314 FTE jobs, 118 of which met the qualifying wage.
3. The Business met the Sufficient Benefits obligation required by the Contract.
Since all project activities have been completed and verified, the Authority has determined that
the job maintenance requirement has been satisfied and this project file is now closed. The
balance of the Forgivable Loan is now considered forgiven. The cancelled Promissory Notes and
Corporate Guaranty are attached.
We would like to express our thanks to you for your assistance in monitoring and closing out this
project. We look forward to working with you on future economic development projects. Please
do not hesitate to contact me at 515-348-6166 or katie.rockey(c�iowaeda.com should you have
any questions.
Sincerely,
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Katie Rockey
Senior Project Manager
Compliance Team
Cc: Jill Connors, City of Dubuque at: jilconno(a�citvofdubuque.orq
IEDA Compliance File
IEDA Accounting
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