IEDA Contract 18-TC-038 Assignment, Medline Industries, Inc. Corporate ReorganizationCity of Dubuque
City Council Meeting
Consent Items # 06.
Copyrighted
November 6, 2023
ITEM TITLE: IEDAContract 18-TC-038Assignment, Medline Industries, Inc.
Corporate Reorganization
SUMMARY: City Manager recommending City Council adopt the resolution, approving
the Third Amendment to Contract 18-TC-038 by and among Medline
Industries, Inc., MIRE DIA, LLC, the Cityof Dubuque, and the Iowa
Economic Development Authority.
RESOLUTION Approving the Third 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 Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
I EDA 3rd Amendment Supporting Documentation
Resolution Resolutions
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: IEDA Contract 18-TC-038 Assignment, Medline Industries, Inc. Corporate
Reorganization
DATE: November 1, 2023
Economic Development Director Jill Connors is recommending City Council adopt the
resolution, approving the Third Amendment to Contract 18-TC-038 by and among
Medline Industries, Inc., MIRE DIA, LLC, the City of Dubuque, and the Iowa Economic
Development Authority.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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
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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: IEDA Contract 18-TC-038 Assignment, Medline Industries, Inc. Corporate
Reorganization
DATE: October 18, 2021
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing
an amendment to a contract with the Iowa Economic Development Authority (IEDA)
Contract 18-TC-038 on behalf of Medline Industries, Inc..
BACKGROUND
On March 19, 2018, the City Council adopted Resolution 74-18, authorizing the Mayor to
execute an application from Medline Industries, Inc. to the IEDA for its Economic
Development Financial Assistance program.
On May 21, 2018, Medline Industries, Inc. entered into a Development Agreement with
the City of Dubuque which required the construction of a 120,000 square foot facility at
an approximate investment of $18,400,000. Medline was also required to retain 481 full
time employees and create an additional 105 full time equivalent jobs in Dubuque.
On August 20, 2018, the City Council adopted Resolution 159-18 authorizing the Mayor
to execute IEDA Contract 18-TC-038, providing for state incentives for the project defined
in the Development Agreement and its application to the IEDA.
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 December 31, 2022, to June 30, 2023. The
Maintenance Period dates extend two years beyond this new date (June 30, 2025).
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.
The attached Third Amendment to IEDA Contract 18-TC-038 has been signed by a
representative of Medline and has been reviewed and approved by the City Attorney's
office.
RECOMMENDATION/ ACTION STEP
I recommend the City Council adopt the attached resolution, approving the Third
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
CONTRACT AMENDMENT
RECIPIENT: Medline Industries, Inc. and MRE DIA, LLC
CONTRACT NUMBER: 18-TC-038
AMENDMENT NUMBER: Three
APPROVAL DATE: August 18, 2023
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 MIRE DIA, LLC
('Recipient"), Three Lakes Drive, Northfield, IL 60093 and the City of Dubuque
("Community") 50 W. 13th 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:
SIGNATURE
PRINT/TYPE NAME, TITLE
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Date
FOR THE COM UNITY:
SIGNATURE
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PRINT/TYPE NAME, TITLI
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FOR IEDA:
Deborah V. Durham, Director
Date
Page 1
EXHIBIT D — JOB OBLIGATIONS
Amended August 2023
Recipient: Medline Industries, Inc. and MIZE DIA, LLC
Community: City of Dubuque
Contract Number: 18-TC-038
This Project has been awarded Project Completion Assistance and Tax Incentives from the High Quality Jobs Program (HQJP) — Tax Credit
Component. The chart below outline the contractual job obligations related to this Project.
Data in the "Employment Base" column has been verified by IEDA and reflects the employment characteristics of the facility receiving
funding before this award was made. Jobs to be retained as a part of this Project must be included in these calculations.
Data in the "Jobs To Be Created" column outlines the new full-time jobs (including their wage characteristics) that must be added to the
employment base and, if applicable, statewide employment base as a result of this award.
At the Project Completion Date and through the Maintenance Period Completion Date, the Recipient must achieve, at a minimum, the
numbers found in the "Total Job Obligations" column.
Notes re: Job Obligations
I . When determining the number of jobs at or above the qualifying wage, wages will include only the regular hourly
rate that serves as the base level of compensation. The wage will not include nonregular forms of compensation
such as bonuses, unusual overtime pay, commissions, stock options, pension, retirement or death benefits,
unemployment benefits or other insurance, or other fringe benefits.
2. Employment Base includes 0 "Retained Jobs".
If the Recipient uses or proposes to use a non-standard work week (8 hours a day, 5 days a week, 52 weeks a year
including holidays, vacation and other paid leave), check the box below and describe that alternative schedule.
The alternative schedule must meet the requirements of 261 IAC 173.2. If the box is not checked or if no
alternative schedule is provided, IEDA will consider "Full-time Equivalent (FTE) Job " to mean the employment
of one person for 8 hours per day for a 5-day, 40-hour workweek for 52 weeks per year, including paid holidays,
vacations and other paid leave.
El The Recipient shall use an alternative work week for purposes of its employees described in the Contract. The
alternative work week is as follows: [description].
Sufficient Benefits Deductible Requirements
Recipient shall provide Sufficient Benefits with a maximum deductible of $1,250 for single coverage or $2,500 for family
coverage.
Page 2
Prepared by: Jill Connors, Economic Development, 50 W. 1311 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. 355-23
APPROVING THE THIRD 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, the parties previously agreed to a First Amendment to the Contract to
extend the Project Completion date, approved by the City Council on September 7, 2021;
and
Whereas, the parties previously agreed to a Second Amendment to the Contract
to extend the Project Completion date, approved by the City Council on October 20, 2021;
and
Whereas, Medline has requested a Third Amendment to the Contract to extend
the Project Completion date; and
Whereas, the parties agree a Third Amendment is necessary and 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 Third Amendment to Contract is hereby approved.
Section 2. The Mayor is hereby authorized and directed to execute, and the City
Manager is hereby directed to submit the Third Amendment to Contract to the Iowa
Economic Development Authority together with such other documents as may be
required.
Passed, approved, and adopted this 6th day of November, 2023.
w
+a Cavanagh, Mayor
Att st:
Adrienne N. Breitfelder, City Clerk