Close Out of Business Assistance Contract 16-DF-TC-055 for Hite/AB(MC)2City of Dubuque
City Council Meeting
Consent Items # 08.
Copyrighted
September 19, 2022
ITEM TITLE: Close Out of Business Assistance Contract 16-DF-TC-055 for
Hite/AB(MC)2
SUMMARY: City Manager submitting documentation to City Council to receive and file
as the terms of a Business Assistance Contract between the Iowa
Economic Development Authority (I EDA) and Hite/AB(MC)2 (Rite Hite)
have been satisfied, and the contract has been closed out by the State of
I owa.
SUGGESTED Suggested Disposition: Receive and File
DISPOSITION:
ATTACHMENTS:
Description Type
Rite Hite - Closeout of I EDA Contract 16-DF-TC-055- City Manager Memo
MVM Memo
Staff Memo
I EDA Closeout Letter
Staff Memo
Supporting Documentation
THE C
DUjIBQTE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Close Out of Business Assistance Contract 16-DF-TC-055 for
Hite/AB(MC)2
DATE: September 13, 2022
Dubuque
WAWca 914
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2007-2012.2013
2017*2019
Economic Development Director Jill Connors is submitting documentation to City
Council to receive and file as the terms of a Business Assistance Contract between the
Iowa Economic Development Authority (IEDA) and Hite/AB(MC)2 (Rite Hite) have been
satisfied, and the contract has been closed out by the State.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
CC' Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Dubuque
THE CITY OF
All -America My
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DUB E
2007-2012.2013
Masterpiece on the Mississippi 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: Close Out of Business Assistance Contract 16-DF-TC-055 for
Hite/AB(MC)2
DATE: September 2, 2022
INTRODUCTION
The purpose of this memorandum is to inform the Manager and City Council that the
terms of a Business Assistance Contract between the Iowa Economic Development
Authority (IEDA) and Hite/AB(MC)2 (Rite Hite) 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 Iowa
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 Iowans 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 2016, Rite Hite applied for this type of business assistance from the State of Iowa for
the expansion of its operations and addition of well -paid jobs, with the support of the
City of Dubuque.
On May 20, 2016, IEDA approved Contract 16-DF-TC-055with the following award:
Rite Hite was eligible for a $44,000 High Quality Jobs Program Forgivable Loan and
$251,338 in tax incentives. The local match requirements were met with the Tax
Increment Finance rebates committed in a Development Agreement signed between the
City and Rite Hite dated June 6, 2016. The company contributed $848,045 in capital on
the project.
DISCUSSION
Rite Hite was required to maintain 287 full-time equivalent (FTE) jobs of which 90
needed to be qualified FTEs. At the End of Maintenance Date, the Business had 402
FTEs of which 208 were qualified FTE jobs. The qualified employees were paid at least
$20.53 per hour.
Since all project activities have been completed and verified, the IEDA has determined
that the job maintenance requirement has been satisfied and this project file is closed.
The Forgivable Loan is now forgiven. AB(MC)2, LLC & Rite -Hite Corp. decided to accept
the $44,000 of Forgivable Loan at the End of Project Maintenance Period.
RECOMMENDATION/ ACTION STEP
I recommend the Council receive and file the documents from the Iowa Economic
Development Authority closing out Business Assistance Contract 16-DF-TC-055.
2
IOWA ECONOMIC DEVELOPMENT AUTHORITY
1963 Bell Avenue, Ste. 200 1 Des Moines, Iowa 50315 USA I Phone: 515.348.6200
iowaeda.com
September 1, 2022
Mr. Timothy Grove
AB(MC)2, LLC and Rite -Hite Holding Corporation
8900 North Arbon Drive
Milwaukee, WI 53223
Sent via email: tgrove(a)ritehite.com
RE: Project Maintenance Closeout — AB(MC)2, LLC & Rite -Hite Corp.
Contract Number — 16-DF/TC-055
Dear Mr. Berns:
1()WA��
econoe
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 High Quality Jobs
Program Contract have been completed and have met or exceeded expectations.
In summary:
1. The Project Completion Date was May 31, 2019, with a Project Maintenance Date of
May 31, 2021.
2. The Business was required to maintain 287 full-time equivalent (FTE) jobs of which
90 needed to be qualified FTEs. At the End of Maintenance Date, the Business had
402 FTEs of which 208 were qualified FTE jobs. The qualified employees were paid
at least $20.53 per hour.
3. AB(MC)2, LLC & Rite -Hite Corp. met the Sufficient Benefits requirement.
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 closed. The Forgivable
Loan is now forgiven. AB(MC)2, LLC & Rite -Hite Corp. decided to accept the $44,000 of
Forgivable Loan at the End of Project Maintenance Period. Please do not hesitate to contact me at
515-348-6165 or benton.guade(c-)iowaeda.com should you have any questions on collecting the
award.
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.
Sincerely,
Benton Quade
Project Manager
Compliance Team
Cc: Mayor Brad Cavanagh, City of Dubuque
IEDA Compliance File
IEDA Accounting
Governor Kim Reynolds I ILL Governor Adam Gregg I Director Debi V. Durham