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Contract Amendment to State of Iowa Direct Financial Assistance for Medline Industries, Inc. and MRE DIA, LLCCity of Dubuque City Council Meeting Consent Items # 7. Copyrighted September 7, 2021 ITEM TITLE: Contract Amendment to State of Iowa Direct Financial Assistance Contract byand among Medline Industries, Inc. MRE DIA, LLC, the City of Dubuque, and the Iowa Economic Development Authority SUMMARY: City Manager recommending approval of a resolution authorizing a contract amendment between Medline Industries, Inc., MRE DIA, LLC, the City of Dubuque and the Iowa Economic Development Authority which modifies the project completion date for its job creation requirements from March 31, 2021, to December 31, 2022. RESOLUTION Approving the Contract Amendment to the Economic Development Financial Assistance Contract by and among Medline Industries, Inc., MRE DIA, LLC, the City of Dubuque, Iowa, and the Iowa Economic Development Authority SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Medline I EDA Contract Amendment-MVM Memo Staff Memo Resolution of Approval 1 st Amendment Type City Manager Memo Staff Memo Resolutions Supporting Documentation THE CITY OF Dubuque DUB TEE All -America City Masterpiece on the Mississippi � pp zoo�•*o 13 zoi720zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Contract Amendment to State of Iowa Direct Financial Assistance Contract by and among Medline Industries, Inc. MRE DIA, LLC, the City of Dubuque, and the Iowa Economic Development Authority DATE: August 30, 2021 Economic Development Director Jill Connors recommends City Council approval of a resolution authorizing a contract amendment between Medline Industries, Inc., MRE DIA, LLC, the City of Dubuque and the Iowa Economic Development Authority which modifies the project completion date for its job creation requirements from March 31, 2021, to December 31, 2022. The Maintenance Period dates extend two years beyond the new date (December 31, 2024). I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill M. Connors, Economic Development Director THE CITY OF E Masterpiece on the Mississippi Dubuque AII•Amerin City NniK���i rnz: u;v�ur 2007-2012.2013 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org SUBJECT: Contract Amendment to State of Iowa Direct Financial Assistance Contract by and among Medline Industries, Inc., MRE DIA, LLC, the City of Dubuque, and the Iowa Economic Development Authority DATE: August 25, 2021 INTRODUCTION This memorandum presents for City Council review and approval a resolution authorizing the attached Contract Amendment to Contract 18-TC-038 by and among Medline Industries, Inc., MRE DIA, LLC (Medline), the City of Dubuque, and the Iowa Economic Development Authority (IEDA). BACKGROUND Medline is the largest privately held manufacturer and distributor of medical 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.). Products range from latex gloves to gauze to walkers and wheelchairs to sterile and convenience kits and packs. In early 2018, Medline made plans to expand its operations in Dubuque from 481 employees with an addition of at least 105 new full-time employees. In order to complete the project, the company requested both local and state incentives. On March 19, 2018, the City Council adopted Resolution 74-18, authorizing the Mayor to execute an application to the IEDA for financial assistance, and directing the City Manager to submit the application to the IEDA with other required documents. On March 23, 2018, the IEDA approved Economic Development Assistance Contract 18- TC-038. On May 21, 2018, the City Council adopted Resolution 159-18, authorizing the Mayor to execute a Development Agreement between the company and the City of Dubuque. An Amended and Restated Development Agreement was approved by the City Council on June 4, 2018. DISCUSSION Medline Industries, Inc. and MRE DIA, LLC have requested an extension of the Project Completion date for its job creation requirements in Contract 18-TC-038. The Project Completion Date has been modified from March 31, 2021, to December 31, 2022. The Maintenance Period dates extend two years beyond this new date (December 31, 2024). The IEDA board has approved the request for an extension of the Project Completion date. As a party to the Contract, the City of Dubuque must authorize the execution of the Contract Amendment. RECOMMENDATION/ ACTION STEP I recommend the City Council adopt the attached resolution, approving the Contract Amendment to Contract 18-TC-038 by and among Medline Industries, Inc., MRE DIA, LLC, the City of Dubuque, and the Iowa Economic Development Authority. 2 Prepared by: Jill Connors, Economic Development, 50 W. 131' Street, Dubuque IA 52001, 563 589-4393 Return to: Jill Connors, Economic Development, 50 W. 131h Street, Dubuque IA 52001, 563 589-4393 RESOLUTION NO. 294-21 APPROVING THE CONTRACT AMENDMENT TO THE ECONOMIC DEVELOPMENT FINANCIAL ASSISTANCE CONTRACT BY AND AMONG MEDLINE INDUSTRIES, INC., MRE DIA, LLC, THE CITY OF DUBUQUE, IOWA, AND THE IOWA ECONOMIC DEVELOPMENT AUTHORITY Whereas, Medline Industries, Inc., MRE DIA, LLC (Medline) and the City of Dubuque (City) entered into an Economic Development Financial Assistance Contract (the Contract) with the Iowa Economic Development Authority (IEDA) to facilitate the creation of one hundred five (105) full-time jobs in the City; and Whereas, Medline has requested an extension of the Project Completion Date in the Contract; and Whereas, the parties now desire to amend the Contract as set forth in the attached Contract Amendment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The Contract Amendment is hereby approved. Section 2. The Mayor is hereby authorized and directed to execute, and the City Manager is hereby directed to submit the Contract Amendment to the Iowa Economic Development Authority together with such other documents as may be required. Passed, approved, and adopted this 7th day of September, 2021. Attest: Adrienne N. Breitfelder, City Clerk CONTRACT AMENDMENT RECIPIENT: Medline Industries, Inc. and MRE DIA, LLC CONTRACT NUMBER: 18-TC-038 AMENDMENT NUMBER: One APPROVAL DATE: August 20, 2021 THIS CONTRACT AMENDMENT is made by and between the IOWA ECONOMIC DEVELOPMENT AUTHORITY (hereafter "IEDA"), 1963 Bell Ave, Suite 200, Des Moines, Iowa 50315, an agency of the State of Iowa, Medline Industries, Inc. and MRE DIA, LLC Recipient"), Three Lakes Drive, Northfield, IL 60093 and the City of Dubuque Community") 50 W. 131" Street, Dubuque, IA 52001. WHEREAS, the Recipient has requested an extension of the Project Completion Date. WHEREAS, the IEDA BOARD approved the request, and NOW, THEREFORE, the Contract referenced above is amended as follows: 1. REVISION OF JOB OBLIGATIONS (EXHIBIT D). Exhibit D is hereby amended to reflect the amended Project Completion and Maintenance Period Completion Dates. Details of the changes are reflected in the attached revised Exhibit D which is hereby incorporated by this reference and made part of this Contract Amendment. Except as otherwise revised herein, the terms, provisions, and conditions of Contract Number 18-TC-038 and related exhibits shall remain unchanged and are in full force and effect. FOR RECIPIENT: Mike oraLn 004.202108:58 CDT) SIGNATURE Mike Drazin CFO PRINT/ TYPE NAME, TITLE 08/ 24/2021 Date FOR g1yIr SIGNAT E Rcy , Quol, mo,Or PRINT/ TYPE NAME, TITLE 09/ c Sla0 a I Date FOR IEDA: Deborah V. Durham, Director Date Page 1 , coo Sept 15, 2021