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Resolution Authorizing the Submission of an Iowa Economic Development Authority Business Financial Assistance Application by Universal Tank & Fabrication Inc.City of Dubuque City Council /_[OIfQ►III=1Ji6'IF:&J Copyrighted November 4, 2024 ITEM TITLE: Resolution Authorizing the Submission of an Iowa Economic Development Authority Business Financial Assistance Application by Universal Tank & Fabrication Inc. SUMMARY: City Manager recommending City Council adopt the attached resolution approving the Economic Development Assistance Application on behalf of Universal Tank & Fabrication, Inc. for the proposed investment of approximately $4,925,000 for the expansion of its operations in Dubuque. RESOLUTION Authorizing The Filing Of An Application With The Iowa Economic Development Authority For Business Financial Assistance On Behalf Of Universal Tank & Fabrication, Inc. SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Staff Memorandum 3. High Quality Jobs Application 4. Attachment Al Project Plan 5. Resolution Page 2461 of 2498 THE C Dubuque DUj!BQTE AIFAWca Ciq rw ni I Masterpiece on the Mississippi � pp 20°2.2° 13 Zd17*7*2Q19 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Resolution Authorizing the Submission of an Iowa Economic Development Authority Business Financial Assistance Application by Universal Tank & Fabrication Inc. DATE: October 31, 2024 Economic Development Director Jill Connors is recommending City Council adopt the attached resolution approving the Economic Development Assistance Application on behalf of Universal Tank & Fabrication, Inc. for the proposed investment of approximately $4,925,000 for the expansion of its operations in Dubuque. The proposed project would create a minimum of 10 new full-time jobs, in keeping with the City incentive policy, and promote the City's goal of creating a robust local economy with diverse businesses and jobs and economic prosperity. Universal Tank Fabrication, Inc. (UTF) is submitting an application to the State of Iowa for investment tax credits of $154,600, a sales tax refund of $120,000, and job training funds estimated at $150,000. The City Council has emphasized business growth and retention as one of its goals and priorities for the future of Dubuque. Supporting the UTF application will strengthen its ability to obtain financial assistance as UTF continues to expand and hire within the City of Dubuque and the State of Iowa. The required local match is anticipated to be tax increment financing from a proposed development agreement. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director Page 2462 of 2498 Dubuque THE CITY OF All -Americo City fvtlx 1Wlf. (TZ: f 1 iK'li 11: UB E ' I I�' 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 50 West 13th Street Dubuque, Iowa 52001-4864 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org SUBJECT: Resolution Authorizing the Submission of an Iowa Economic Development Authority Business Financial Assistance Application by Universal Tank & Fabrication Inc. DATE: October 29, 2024 INTRODUCTION This memorandum presents for City Council review and approval a resolution authorizing the submission of a Business Financial Assistance Application by Universal Tank & Fabrication Inc. to the Iowa Economic Development Authority (IEDA). BACKGROUND Universal Tank & Fabrication, Inc (UTF), a Delaware corporation with its principal place of business in Dubuque, manufactures pressure vessels, tanks and related fabrications for a broad customer base extending across North America. Their products are used in various markets that include Water (municipal, waste and industrial segments), Air, Energy (biofuels), Pharmaceutical, and an extensive "Other" category for custom, one-off projects. Here is a small list of the types of products manufactured: • autoclaves for retreading tires manufactured for one of the largest tire companies in the world • water filtration vessels that clean radium from drinking water • process skids for mixing the newest types of asphalt for some of the largest energy companies in the world • vessels that capture landfill gases and recycle them into usable energy products • vacuum trucks used for municipal and industrial applications Most of what they build isn't considered production or repeatable, rather project specific requiring a dynamic and skilled workforce. DISCUSSION Page 2463 of 2498 Subject to State of Iowa and City of Dubuque approval, UTF is looking to increase its manufacturing throughput by constructing an approximately 28,000 square foot building specifically designed for blasting/painting and assembling products. Currently, all these operations are being performed in the same space as fabrication which leads to inefficiencies and bottlenecks. State of the art equipment will allow for faster turnarounds with higher quality, and the additional space will increase throughput. Pressure vessels and tanks will remain the primary focus; however, the increased capacity will allow UTF to explore new fabrication markets. Currently, the building construction was bid with a Guaranteed Maximum Price (GMP) of $4,925,000. UTF is submitting an application to the State of Iowa for investment tax credits of $154,600, a sales tax refund of $120,000, and job training funds estimated at $150,000. The City Council has emphasized business growth and retention as one of its goals and priorities for the future of Dubuque. Supporting the UTF application will strengthen its ability to obtain financial assistance as UTF continues to expand and hire within the City of Dubuque and the State of Iowa. The required local match is anticipated to be tax increment financing from a proposed development agreement. RECOMMENDATION/ ACTION STEP I recommend that the City Council adopt the attached resolution approving the Economic Development Assistance Application on behalf of Universal Tank & Fabrication, Inc. for the proposed investment of approximately $4,925,OOOfor the expansion of its operations in Dubuque. The proposed project would create a minimum of 10 new full-time jobs, in keeping with the City incentive policy, and promote the City's goal of creating a robust local economy with diverse businesses and jobs and economic prosperity. 2 Page 2464 of 2498 1()WAO economic development Debi V. Durham, Executive Director Iowa Economic Development Authority Business Financial Assistance Application Business Finance - Business Development Division Iowa Economic Development Authority 1963 Bell Avenue, Suite 200 Des Moines, IA 50315 iowaeda.com Email: businessfinance(a)iowaeda.com Application Instructions To Complete Electronic Form: Click on TEXT BOX to add text. Double click on YES/NO boxes and select "Checked". 1. All applicants must complete the Business Financial Assistance Application, and attach only those additional sections for the components to which the applicant is applying. STATE of IOWA — Financial Assistance Program High Quality Jobs Program (HQJ) ® Tax Credits ❑ Direct Financial Assistance 2. Before filling out this application form, please read all applicable sections of the Iowa Code and Iowa Administrative Code (rules). https://www.legis.iowa.gov/law/administrativeRules 3. Only typed or computer -generated applications will be accepted and reviewed. Any material changes 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 of the application fully. If questions are left unanswered or required attachments not submitted, an explanation must be included. 5. Use clear and concise language. Attachments should only be used when requested or as supporting documentation. 6. Any inaccurate information of a significant nature may disqualify the application from consideration. 7. The following must be submitted to Business Finance at Iowa Economic Development Authority (IEDA) to initiate the review process: • One signed application form and all required attachments submitted electronically to the project manager. Facsimile copies will not be accepted. Applications must be submitted to IEDA Business Finance before 4:00 p.m. on the fourth Monday of the month. Applications will be reviewed by the IEDA Board on the third Friday of the following month. v.7.2023 Page 2465 of 2498 Public Records Policies During the application process, the information submitted to IEDA is exempt from disclosure under the "industrial prospects" exemption found in Section 22.7(8). However, once an award is received, the industrial prospects exemption no longer applies and all documents submitted and generated during the application and negotiation process become public records under Iowa's Open Records Law (Iowa 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 the 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 Iowa Employer's Contribution and Payroll Report prepared for the Iowa 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 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 — Iowa Code Sec. 15.118 • Trade secrets — See Iowa Code section 22.7(3), see also Iowa Code Ch. 550 • Information on an industrial prospect with which the IEDA is currently negotiating — See Iowa 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 — Iowa Code section 22.7(18) Non -Confidential Information Information 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, the company's employee benefit information and the project budget. Additional Information Available. Copies of Iowa's Open Record law and IEDA's administrative rules relating to public records are available from the IEDA upon request. IEDA — Business Financial Assistance Application 2 v.10.6.2021 Page 2466 of 2498 0 Pa 3. 4. 5. 6. 7. 8. 9. 10 SECTION A icant Information Date Application Submitted: Name of Business: Universal Tank & Fabrication Inc. Entity Name(s) for contracting (please include all that are involved in proposed project): Universal Tank & Fabrication Inc. Address: 8025 Chavenelle Rd City, State and Zip Code: Dubuque, IA 52002 Contact Person: Dan Davis Title: President Phone: Fax: Email: FEIN: Please indicate your tax period end date: 12/31/2023 NAICS Code for primary business operations: US DOT Number: 11. Does the Business file a consolidated tax return under a different tax ID number? ❑ Yes (If yes, please also provide the 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 and Zip Code: Contact Person: Title: Phone: Fax: Email: Sponsor Information (A sponsor organization is a city or county) 13. Sponsor Organization: City of Dubuque 14. Official Contact (e.g. Mayor, Chairperson, etc.): Brad Cavanagh Title: Mayor 15. Address: 50 W 13'h Street 16. City, State & Zip Code: Dubuque, IA 52001 17. Phone: (563) 589-4100 Fax: (563) 589-0890 Email: 18. 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: Jill Connors Title: Economic Development Director Address: 50 W 13th Street City, State and Zip Code: Dubuque, IA 52001 Phone: (563) 564-5686 Fax: Email: jilconno@cityofdubuque.org If necessary, please list information on additional sponsors in an attachment. IEDA — Business Financial Assistance Application v.10.6.2021 Page 2467 of 2498 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. Founded in 2007, UTF manufactures/welds tanks, vessels, and weldments. We also have plasma cutting, shot blasting, and painting capabilities. 2. Business Structure: ❑ Cooperative ® Corporation ❑ Limited Liability Company ❑ Partnership ❑ S-Corporation ❑ Sole Proprietorship 3. State of Incorporation: Delaware 4. Identify the Business' owners and percent ownership: AAVIN = 94%, Daniel Davis = 6% 5. Does a woman, minority, or person with a disability own the Business? ❑ Yes ® No 6. List the Business' Iowa locations and the most current number of employees at each location. Dubuque, Iowa — current number of employees = 41 7. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries and other affiliated entities in this figure.) None Proiect Information 8. Project Street Address: 8025 Chavenelle Rd Project City and Zip Code: Dubuque, 52002 Project County: Dubuque 9. Type of Business Project: ❑ Startup ® Expansion of Iowa Company ❑ New Location in Iowa 10. Does the project site qualify as a "Brownfield" or "Grayfield" site? ❑ Yes ® No If yes, please explain and document as Attachment A6. 11. Does the project provide a licensed child care facility for use by the business's employees? ❑ Yes No If yes, please explain 12. 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.) UTF is looking to increase its manufacturing throughput by adding a -- 28,000 sq ft building specifically designed for blasting/painting and assembling products. Currently, all these operations are being performed in the same space as fabrication which leads to inefficiencies and bottlenecks. State of the Art equipment will allow for faster turnarounds with higher quality and the additional space will increase throughput. Pressure vessels and tanks will remain the primary focus; however the increased capacity will allow us to explore new fabrication markets. Our projected timeline is below. Currently, the building construction was bid with a Guaranteed Maximum Price (GMP) of $4,925,000. 13. Project Timeline add additional rows as needed Beginning Activity Date Activity Completion Date Grading/Foundation/Floor 3/24/25 6/13/25 Concrete/Asphalt Paving 5/19/25 8/22/25 Install building 6/16/2025 11/28/25 Install Cranes and Booths 10/27/25 12/19/25 Completion 1/14/26 14. 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, execution of a lease, or installation of equipment to be used in the project. IEDA —Business Financial Assistance Application 4 v.10.6.2021 Page 2468 of 2498 15. Identify the Business' competitors. If any of these competitors have Iowa 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 Iowa competitor. Manchester Tank (locations in Illinois, Kentucky, Tennessee), Quick Tanks (located in Indiana), Samuel Pressure Vessel Group (locations in Wisconsin, Virginia, Arizona). While most of our competitors are not from within Iowa, having the ability to improve throughput and gain efficiencies will bring more work into Iowa while creating more job opportunities. 16. Will any of the current Iowa employees lose their jobs 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. 17. Is the Business actively considering locations outside of Iowa? ❑ Yes ® No If yes, where and what assistance is being offered? 18. Please identify the company project management for the project location and experience. Dan Davis Universal Tank & Fabrication Inc. 8025 Chavenelle Rd Dubuque, IA 52002 24 years' experience building pressure vessels with the different ownerships since 2000 Gronen Schmid Innovation Center 900 Jackson St, Suite LL2 Dubuque, IA 52001 Local developer that has extensive knowledge in the erection of facilities such as the proposed. Origin Design 137 Main Street, Suite 100 Dubuque, IA 52001 Local engineering firm that has extensive knowledge in designing facilities such as the proposed. IEDA — Business Financial Assistance Application 5 v.10.6.2021 Page 2469 of 2498 SECTION C icant's Proiect Budaet 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 the lease be in place for a minimum of five years. 2. Please complete the budget below. Include only costs the company plans to incur directly: Use of Funds Cost Source A Source B Source C Source D Source E Source F Base Rent 3 ears 1,080,000 1,080,000 Tenant Improvements Land Acquisition Site Preparation Building Acquisition Building Construction Building Remodeling Mfg. Machinery & Equip. 2,775,000 2,775,000 Other Machinery & Equip. 190,000 190,000 Racking, Shelving, etc.' Computer Hardware 1 0, 0 0 0 10,000 Computer Software Furniture & Fixtures 1 0, 0 0 0 10,000 Working Capital Research & Development Other TOTAL $4,065,000 $ $ $4,065,000 $ $ $ 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 financing under No. 5 below): PROPOSED FINANCING Source of Funds Amount Form of Funds Rate and Term Commitment Status Conditions/Additional Information Add additional lines as needed (Loan, Grant, In- Kind, Donation, etc.) Include when funds will be disbursed; If loan, whether payments are a level term, balloon, etc. Source A: IEDA (see No. 4 below $ Source B: Local Government $ Source C: Business $4,065,000 Source D: Other Source $ Source E: Other Source $ Source F: Other Source $ TOTAL $ 4. Direct financial assistance (loans/forgivable 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. * No collateral, funding disbursed at the end of the 5-year contract ❑ Explain: N/A Irrevocable letter of credit ❑ Dedicated certificate of deposit CD ❑ * The IEDA Board has the final discretion on what collateral will be accepted. IEDA - Business Financial Assistance Application 6 v.10.6.2021 Page 2470 of 2498 5. Please complete the chart below with tax credits and other indirect financing expected for the project: TAX CREDITS AND INDIRECT FINANCING Source of Funds Amount Description Investment Tax Credit 154,600 Sales, Service and Use Tax Refund 120,000 Research Activities Credit 3%/10% Local Property Tax Exemption Tax Increment Financing 696,000 260E Job Training Funds* 150,000 Northeast Iowa Community College In -kind Contribution Other TOTAL $1,120, 600 *260E Job Training Funds — This application does not commit the 260E funds. Training funds require a separate application and agreement between company and its local community college. Community College Workforce Training Contacts 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 project's risks outweigh its rewards, making the provision of tax incentives or assistance necessary to reduce the project's risks. ❑ Location Disadvantage (Incentive) —The business is deciding between a site in Iowa ("Iowa 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. Projects such as this one are very expensive and bear a heavy burden on the business. The incentives listed will allow us to move forward with this project whereas otherwise the business/ownership group may not support the expansion. 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. To utilize Option 3, please also complete questions 4-6. Option 1 Option 2 Option 3 70% single Coverage 60% Family coverage Monetary Equivalent Total Number of Pay 70% of premium costs Pay 60% 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 employee benefits. Benefits Counted Toward Monetary Equivalent: medical coverage, dental coverage, 201+ $1700 maximum deductible $3750 maximum deductible 50-200 $2500 maximum deductible $5250 maximum deductible 0-49 $3000 maximum deductible 1 $6000 Maximum deductible * In addition, the IEDA will assess the affordability of plans qualified under vision insurance, life insurance, the deductible and premium percentage paid by the employer criteria. Plans pension, 401(k) (company's not offered at a reasonable cost to employees will be deemed not qualified, average contribution, short - and the business is not eligible for benefits under the High Quality Jobs /long-term disability insurance, Program. child care services, other non - wage compensation 1. How many full-time, permanent employees does your company currently employ within the U.S.? 41 IEDA —Business Financial Assistance Application 7 v.10.6.2021 Page 2471 of 2498 2. What is the total premium cost for a standard medical plan for single employee coverage? $8,226.84 a. What portion of this cost is paid by the business? 65% b. What is the deductible associated with this plan? $1,000.00 3. What is the total premium cost for a standard medical plan for family coverage? $24,268.80 a. What portion of this cost is paid by the business? 65% b. What is the deductible associated with this plan? $2,000.00 No additional information required in this section, if the company meets the requirement for Option 1 or Option 2 4. Does the company provide additional benefits to full-time employees? ❑Yes ❑No If yes, please provide the annual amount offered by the business, per employee in the chart below: Benefit Annual amount paid by the business(per employee): Dental Insurance — Single plan $ Dental Insurance — Family Ian $ Pension Use 3-year average calculated below $ Retirement Plan - i.e. 401 k Use 3-year average calculated below $ Profit Sharing Plan Use 3-year average calculated below $ Childcare Services $ Life Insurance coverage $ Disability Insurance coverage $ Health Savings Account (HSA) contribution $ TOTAL $ Does the Business offer a pension plan, 401(k) plan, and/or retirement -plan? ® Yes ❑ No 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 Employee $ Three-year Average: $ 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 per employee for that three-vear period. Year Ending Average Actual Share per Employee $ Three-year Average: $ 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.10.6.2021 Page 2472 of 2498 SECTION E Proiect Jobs List the jobs to 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 Iowa.) For jobs to be created, include the starting and final hourly base wage rate. Overtime, bonus or other benefits should not be included in the proposed wage. For retained jobs, include the current hourly wage rate. Full -Time CREATED Jobs Add additional rows as needed Job Title Number of CREATED Jobs Starting Hourly Wage Wage at 36 months following the award Facility Supervisor 1 30.00 34.50 Quality Inspector 1 28.00 32.25 Maintenance 1 30.00 34.50 Shipping/Receiving 1 28.00 32.25 Processing Manager 1 31.00 35.60 Welders 7 25.00 29.00 Blaster 1 24.25 29.00 Painters 2 24.50 29.00 Total Full -Time CREATED Jobs Full -Time RETAINED Jobs Add additional rows as needed Number of Current Hourly Job Title (AT -RISK jobs only) RETAINED Wage Jobs N/A 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: IEDA — Business Financial Assistance Application 9 v.10.6.2021 Page 2473 of 2498 Business Financial Assistance Application - Universal Tank & Fabrication Inc. Page 10 — original redacted from City Council copy, as it contains confidential information Page 2474 of 2498 SECTION G Attachments Please attach the following documents: Al 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 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 Iowa Economic Development Authority to evaluate the feasibility of this project. A2 Payroll Information (Confidential) • Copies of the Business' Quarterly Iowa 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, overtime 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 stating 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) A6 Brownfield or Grayfield site documentation (if applicable) IEDA — Business Financial Assistance Application 11 v.10.6.2021 Page 2475 of 2498 SECTION H Certification and 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 than a 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 ® 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 ® 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 ® No 6. If yes to any of the above, please provide additional explanation: hereby give permission to the Iowa 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. I 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. 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. understand the 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 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. 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 Sponsor(s): Signature Name and Title (typed or printed) Date Name and Title (typed or printed�J 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 1" v.10.6.2 )21 FJUNIVERSAL TANK & FABRICATION Business Financial Assistance Application Section G — Attachment Al — Proiect Plan Universal Tank & Fabrication, Inc (UTF) is an Iowa borne and based company that manufactures pressure vessels, tanks and related fabrications for a very broad customer base extending across North America. Our products are used in various markets that include Water (municipal, waste and industrial segments), Air, Energy (biofuels), Pharmaceutical, and an extensive "Other" category for the custom, one off projects. Here is a small list of the types of products manufactured: • autoclaves for retreading tires manufactured for one of the larges tire companies in the world • water filtration vessels that clean radium from drinking water • process skids for mixing the newest types of asphalt for some of the largest energy companies in the world • vessels that capture landfill gases and recycle them into usable energy products • vacuum trucks used for municipal and industrial applications Most of what we build isn't considered production or repeatable, rather project specific which makes our workforce one of the most dynamic and skilled groups assembled. Our direct labor team is required to perform a wide range of tasks within their spectrum any given day, including working on Carbon or Stainless steel, working on thin or thick material, or even welding, sandblasting or painting inside of vessels. As you can imagine, having such a broad range of products requires us to maintain enough space for state-of-the-art equipment (that allows us to remain competitive in the market) as well as enough area to react to various projects. In order to achieve this, we need to expand our footprint or be forced to stay the same size of company year after year. The proposed expansion will allow us to increase our capacity by over 60% in a 5-year period. Our proposed expansion is specifically designed for finishing projects. Specifically, blasting, painting, and assembling. We propose to purchase industry leading state of the art blast and paint booths that will allow for additional throughput by utilizing their unique design features. Not only will they improve our current product mix efficiencies and throughput, but it also allows us the opportunity to coat products from other local manufacturers, keeping that work in the state of Iowa. In addition to the new finish capabilities, we will have more lay down space, allowing us to work on more projects at once along with much needed warehouse space to increase our manufacturing capacity. The current facility would also get some much -needed updates allowing us to add manufacturing spaces and ultimately add more jobs. Without the help of the IEDA and other programs, we are uncertain if this project will be possible. Please carefully consider our application for the proposed UTF expansion. Sincerely, Dan Davis CEO — Universal Tank & Fabrication, Inc. Page 2477 of 2498 Ian C. Hatch, Assistant Economic Development Director, 1300 Main Street Dubuque IA 52001 (563) 589-4105 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 362-24 AUTHORIZING THE FILING OF AN APPLICATION WITH THE IOWA ECONOMIC DEVELOPMENT AUTHORITY FOR BUSINESS FINANCIAL ASSISTANCE ON BEHALF OF UNIVERSAL TANK & FABIRCATION, INC. Whereas, Universal Tank & Fabrication, Inc. is a Delaware corporation manufacturing custom fabricated pressure vessels and tanks at its Facility in Dubuque, Iowa; and Whereas, Universal Tank & Fabrication, Inc, has proposed making a Seven Million Two Hundred Fifty Thousand Dollar investment to expand its Facility (the Project); 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 City Council of the City of Dubuque, Iowa has considered the Project and determined that the proposed Project will contribute to the local economy through the creation of ten (10) full-time jobs in the City of Dubuque; and Whereas, the City of Dubuque, Iowa is eligible to apply for funding from the Iowa Economic Development Authority Business Financial Assistance Program on behalf of Universal Tank & Fabrication, Inc. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: Section 1. The filing of an Application for participation in the Iowa Economic Development Authority's Business Financial Assistance Program on behalf of Universal Tank & Fabrication, Inc., a copy of which is attached hereto, is hereby approved. Section 2. 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 4th day of November, 2024. .• �; -nagh, Mayor Attest: Adrienne N. Breitfelder, City Clerk