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Ratification of Approval of a First Amendment to Economic Development Assistance Contract with Progressive Processing, LLCCity of Dubuque City Council Cd91Z6*1=1zkikI=1Ly 6RVI.1 Copyrighted October 20, 2025 ITEM TITLE: Ratification of Approval of a First Amendment to Economic Development Assistance Contract 22-HQJP-018 by and among Hormel Foods Corporation and Progressive Processing, LLC, the City of Dubuque, and the Iowa Economic Development Authority SUMMARY: City Manager recommending City Council adopt the attached resolution, ratifying the approval of a First Amendment to Economic Development Assistance Contract 22-HQJP-018 by and among Hormel Foods Corporation and Progressive Processing, LLC, the City of Dubuque, and the Iowa Economic Development Authority (IEDA). RESOLUTION Ratifying The Approval Of A First Amendment To The Economic Development Assistance Contract 22- HQJP-018 By And Among Hormel Foods Corporation And Progressive Processing, LLC, The City Of Dubuque, Iowa, And The Iowa Economic Development Authority SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Staff Memo 3. 1 st Amendment 4. Resolution of Ratification Page 125 of 817 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: Ratification of Approval of a First Amendment to Economic Development Assistance Contract 22-HQJP-018 by and among Hormel Foods Corporation and Progressive Processing, LLC, the City of Dubuque, and the Iowa Economic Development Authority DATE: October 15, 2025 Economic Development Director Jill Connors is recommending City Council adopt the attached resolution, ratifying the approval of a First Amendment to Economic Development Assistance Contract 22-HQJP-018 by and among Hormel Foods Corporation and Progressive Processing, LLC, the City of Dubuque, and the Iowa Economic Development Authority (IEDA). On June 6, 2022, the City Council adopted Resolution 210-22, 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 June 14, 2022, the IEDA approved Economic Development Assistance Contract 22- HQJP-018. Hormel Foods Corporation and Progressive Processing, LLC have requested an extension of the Project Completion Date, and the IEDA board has approved the request. The attached First Amendment amends the Project Completion and Maintenance Period Completion Dates. 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 126 of 817 THE COF Dubuque DtUB E A�`eac� I I 111 Masterpiece on the Mississippi 2007. 2012.2013 TO: Michael Van Milligen, City Manager FROM: Jill Connors, Economic Development Director Economic Development Department 50 West 131h Street Dubuque, Iowa 52001-4864 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org SUBJECT: Ratification of Approval of First Amendment to Economic Development Assistance Contract 22-HQJP-018 by and among Hormel Foods Corporation and Progressive Processing, LLC, the City of Dubuque, and the Iowa Economic Development Authority DATE: October 13, 2025 INTRODUCTION This memorandum presents for City Council review and approval a resolution ratifying the approval a First Amendment to Contract 22-HQJP-018 by and among Hormel Foods Corporation and Progressive Processing, LLC, the City of Dubuque, and the Iowa Economic Development Authority (IEDA). BACKGROUND Progressive Processing, LLC, located in Dubuque, Iowa, is a wholly owned subsidiary of Hormel Foods Corporation. The plant officially opened on January 25, 2010 when it produced its first run of Hormel® Compleats® microwave meals. Along with microwave meals, the plant also runs a line of canned chunk chicken, and after an expansion in 2015, the plant now also produces SPAM® and Bacon Bits. In 2019, Hormel Foods Corporation and Progressive Processing, LLC expanded the Dubuque Progressive Processing facility to add capacity in SPAM® production. The company invested approximately $13 million in remodeling and machinery/equipment. The company created 58 new jobs with this expansion, 14 of which qualified for the IEDA High Quality Jobs Incentive Program. DISCUSSION On June 6, 2022, the City Council adopted Resolution 210-22, 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 June 14, 2022, the IEDA approved Economic Development Assistance Contract 22- HQJP-018. Page 127 of 817 Hormel Foods Corporation and Progressive Processing, LLC have requested an extension of the Project Completion Date, and the IEDA board has approved the request. The attached First Amendment amends the Project Completion and Maintenance Period Completion Dates. The Iowa Economic Development Authority requested City approval of the First Amendment to Economic Development Assistance Contract 22-HQJP-018 on October 2, 2025 for the extension of the Project Completion Date. The Mayor signed the First Amendment and seeks ratification of said approval from the City Council. RECOMMENDATION I recommend the City Council adopt the attached resolution, ratifying the approval of the First Amendment to Economic Development Assistance Contract 22-HQJP-018 by and among Hormel Foods Corporation and Progressive Processing, LLC, the City of Dubuque, and the IEDA. Page 128 of 817 CONTRACT AMENDMENT RECIPIENT: Hormel Foods Corporation and Progressive Processing, LLC CONTRACT NUMBER: 22-HQJP-018 AMENDMENT NUMBER: One APPROVAL DATE: September 19, 2025 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, Hormel Foods Corporation and Progressive Processing, LLC ("Recipient"), 1 Hormel Place, Austin, MN 55912 and the City of Dubuque ("Community") 50 West 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 22-HQJP- 018 and related exhibits shall remain unchanged and are in full force and effect. FOR RECIPIENT: Jim Fleming (Oct 1, 2025 09:2 :14 CDT) SIGNATURE Jim Fleming PRINT/TYPE NAME, TITLE 10/01/2025 Date FOR THE COMMUNITY: 6r&d G�cnwu�gGc Brad Cavanagh (Oct2, 202511:37:10 T) SIGNATURE Brad Cavanagh PRINT/TYPE NAME, TITLE Date FOR IEDA: Dire urham (Oct 2, 2025 12:02:01 CDT) Debi Durham, Director 10/02/2025 Date Pagc 1 Page 129 of 817 EXHIBIT D — JOB OBLIGATIONS Amended 9/19/2025 Recipient: Hormel Foods Corporation and Progressive Processing, LLC Community: City of Dubuque Contract Number: 22-HQJP-018 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. HQJP JOB OBLIGATIONS W Project Completion Date: January 31,2025 2026 I Maintenance Period Completion Date: January 31, 2027 2028 Employment Base Jobs To Be Created I Total Job Obligations Total employment at project location 428 38 466 Average wage of total employment at project location I $25.04 Qualifying Laborshed Wage threshold requirement (per hr) $21.13 Number of jobs at or above qualifying wage 168 38 206 Average Wage of jobs at or above qualifying wage $33.44 Notes re: Job Obligations 1. 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. ❑ 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 $1,700 for single coverage or $3,750 for family coverage. Page 2 Page 130 of 817 Prepared by: Crenna M. Brumwell, 300 Main Street Suite 330, Dubuque IA 52001 563 583-4381 RESOLUTION NO. 330 - 25 RATIFYING THE APPROVAL OF A FIRST AMENDMENT TO THE ECONOMIC DEVELOPMENT ASSISTANCE CONTRACT 22-HQJP-018 BY AND AMONG HORMEL FOODS CORPORATION AND PROGRESSIVE PROCESSING, LLC, THE CITY OF DUBUQUE, IOWA, AND THE IOWA ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, approvals for agreements are set by outside entities and outside the control of the City; and WHEREAS, the deadlines set by outside entities do not always coincide with the meetings of the City Council; and WHEREAS, the Iowa Economic Development Authority requested approval of the First Amendment to Economic Development Assistance Contract 22-HQJP-018 on October 1, 2025 for the extension of the Project Completion Date; and WHEREAS, the Mayor signed the First Amendment and seeks ratification of said approval from the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The approval of a First Amendment to the Economic Development Assistance Contract 22-HQJP-018 By and Among Hormel Foods Corporation and Progressive Processing, LLC., the City of Dubuque, Iowa, and the Iowa Economic Development Authority is hereby ratified. Passed, approved and adopted this 201h day of October, 2025. Brad M. Cavanagh, Mayor Attest: lh2 Adrienne N. Breitfelder, ity Clerk