Design Mill, Inc. State of Iowa Business Financial Assistance ApplicationTHE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
kital
All- America City
II 111!
2012
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: State of Iowa Business Financial Assistance Application for Design Mill,
Inc.
DATE: June 11, 2013
Economic Development Director Dave Heiar recommends City Council approval of the
submission of a State of Iowa Business Financial Assistance Application to the Iowa
Economic Development Authority on behalf of Design Mill, Inc. Design Mill, Inc. plans
to locate in the CARADCO Building at 900 Jackson Street.
Design Mill, Inc. specializes in the development of software for use in the education
industry, manufacturing industry as well as the Department of Defense. Design Mill is
primarily a service organization developing custom apps for other organizations ,as well
as software products for the retail market. Design Mill also delivers engineering
services and quality inspection services to the Department of Defense and
manufacturing companies. Design Mill's customers range from technical colleges,
education companies, and manufacturers.
Design Mill is currently located in Elizabeth, Illinois. They plan to transfer or invest over
$1.1 million in research and development, machinery and equipment, computer
hardware and software, furniture and fixtures and rent for space in the CARADCO
building at 900 Jackson Street. The relocation project will create sixteen new positions
in Dubuque.
The local match for this project has been provided by Gronen Properties, the owner and
property manager of the CARADCO building, in the form of $80,000 worth of tenant
build out costs.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
kr,„709,,,
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
David J. Heiar, Economic Development Director
2
Masterpiece on the Mississippi
Dubuque
Leal
All-America City
11111
2012
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: State of Iowa Business Financial Assistance Application for Design Mill,
Inc.
DATE: June 7, 2013
INTRODUCTION
This memorandum presents for City Council review and approval a resolution
authorizing the submission of a Business Financial Assistance Application to the Iowa
Economic Development Authority (IEDA) on behalf of Design Mill, Inc.
BACKGROUND
Design Mill, Inc. (DMI) specializes in the development of software for use in the
education industry, manufacturing industry as well as the Department of Defense.
Design Mill is primarily a service organization developing custom apps for other
organizations as well as software products for the retail market. Design Mill also delivers
engineering services and quality inspection services to the Department of Defense and
manufacturing companies. DMI's customers range from technical colleges (training
development), education companies (app development), and manufacturers
(CAD /Inspection). Regional customers include McGraw Hill, John Deere, Highland
Community College, Dura Automotive and the Rock Island Arsenal. Design Mill focuses
on developing content for mobile devices.
Design Mill is currently located in Elizabeth, Illinois. They plan to transfer or invest over
$1.1 million in research and development, machinery and equipment, computer
hardware and software, furniture and fixtures and rent for space in the CARADCO
building at 900 Jackson Street. The relocation project will create sixteen (16) new
positions in Dubuque.
DISCUSSION
The application on behalf of the company will provide State financial assistance to
enable the company's proposed build out of office and development space in the
CARADCO building. Design Mill is eligible for a $40,000 forgivable loan, a $40,000 loan
with a 0% interest rate over four years, and $20,000 in tax credits, pending IEDA
approval of their application at the June 21, 2013 IEDA Board Meeting. The assistance
is funded through the IEDA's High Quality Jobs Program. The program has a wage
threshold requiring new jobs start at minimum of 100% of the average wage of the
laborshed area and reach 120% of the laborshed wage rate after three years. In
Dubuque for Fiscal Year 2013, all eligible jobs must earn at least $16.09 per hour
initially and $19.31 per hour at the end of the three year period to qualify. All 16 of
Design Mill's positions will meet the wage threshold.
Design Mill anticipates utilizing the assistance to fund their build out as well as acquire
machinery and equipment. Local sponsorship of the application is required for
approval. The local match for the project has been provided by Gronen Properties, the
owner and property manager of the CARADCO building, in the form of $80,000 worth of
tenant build out costs to be used on expenditures such as office walls, doors, and
additional lighting.
RECOMMENDATION
I recommend that the City Council authorize the submission of a State of Iowa Business
Financial Assistance Application on behalf of Design Mill, Inc. for creating 16 new
positions within the community.
This project is consistent with the City's goals to attract new businesses to the area,
increase the number of high quality jobs, and further diversify the economic base of the
area.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
attachment
F: \USERS \Econ Dev \Design Mi11\20130607 IEDA application Council memo.docx
RESOLUTION NO. 189 -13
A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR STATE
BUSINESS FINANCIAL ASSISTANCE ON BEHALF OF DESIGN MILL, INC.
Whereas, Design Mill, Inc. has proposed making a $1.1 million investment as
part of a relocation to Dubuque, Iowa from Elizabeth, Illinois; and
Whereas, the City Council of Dubuque, Iowa has considered said proposal and
has determined that the proposed project will contribute to the local economy through
the creation of 16 additional jobs; 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 of Dubuque, Iowa must provide local sponsorship on behalf of
Design Mill, Inc. for their Business Financial Assistance Application with the Iowa Economic
Development Authority.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the filing of an application for participation in the Iowa Economic
Development Authority's Financial Assistance Program on behalf of Design Mill, Inc. is
hereby approved.
Section 2. That the Mayor is hereby authorized to execute and the City Manager is
hereby directed to submit said application to the Iowa Economic Development Authority
together with such documents as may be required.
Passed, approved, and adopted this 17th day of June, 013.
Roy D. Buol, Mayor
Attest:
/1
�., Jam_
Kevi "fS. Firnstahl, ` ity C
F: \USERS \Econ Dev \Design Mill\20130611 Resolution IEDA App Approval.docx
R. )WA.
eLonornic cievelopmeht
Debi V. Durham, Director
Iowa Economic Development Authority
Business Financial Assistance Application
Business Finance - Business Development Division
Iowa Economic Development Authority
200 East Grand Avenue
Des Moines, Iowa 50309 -1819
www.lowaeconomicdevelopment.com
Telephone: 515.725.3134 Email: businessfinance c(D,iowa.gov
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 Programs
❑ Enterprise Zone Program (EZ) High Quality Jobs Program (HQJP)
Supplemental info required— ® Tax Credits
Section G - EZ Supplement ® Direct Financial Assistance
2. Before filling out this application form, please read all applicable sections of the Iowa Code and Iowa
Administrative Code ( rules). www .legis.state.ia.us /IowaLaw.html
3. Only typed or computer - generated applications will be accepted and reviewed. Any material change 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 are 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 IEDA in order to initiate the review process:
• One original, signed application form and all required attachments
• One electronic copy of the application form and all required attachments
Facsimile copies will not be accepted.
Applications must be submitted to IEDA Business Finance before 4:OOpm on the fourth Monday of the month.
Applications will be reviewed by the IEDA Board on the third Friday of the following month.
v.2.1.2013
Public Records Policies
During the application process, the information submitted by you to IEDA is exempt from disclosure under
the "industrial prospects" exemption found in Section 22.7(8). However, once you receive an award, 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 your 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
If you wish to have additional information treated as confidential, you must fill out the confidential treatment
request form. Under the Open Records Law, I EDA 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 —
lowa Code section 22.7(18)
Non - Confidential Information
Information that is 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, your company's employee benefit information, and your 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.2.1.2013
SECTION A
Applicant Information Date Application Submitted: 5/30/13
1. Name of Business: Design Mill, Inc.
2. Entity Name (for contracting purposes):Design Mill, Inc
3. Address: 115 N. Main St.
4. City, State & Zip Code: Elizabeth, IL 61028
5. Contact Person: Nathan Greiner Title: President
6. Phone: 815 - 858 -3773 Fax: 815 - 858 -3776 Email:
nathan aa.designmillinc.com
7. FEIN: 20- 5336037
8. NAICS Code for primary business operations: 541511,541330
9. US DOT Number: NA
10. Does the Business file a consolidated tax return under a different tax ID number?
❑ Yes (If yes, please also provide that 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:
11. If the application was prepared by someone other than the contact person listed above, please
complete the following:
Name of Business: Design Mill, Inc
Address: 115 N Main St
City, State & Zip Code: Elizabeth, IL 61028
Contact Person: Andrea Young Title: Executive Manager
Phone: 815- 858 -3773 Fax: 815- 858 -3776 Email:
andrea young designmilinc.com
Sponsor Information (A sponsor organization is a city or county)
12. Sponsor Organization: City of Dubuque
13. Official Contact (e.g. Mayor, Chairperson, etc.): Roy D. Buol
14. Address: 50 West 13th Street
15. City, State & Zip Code: Dubuque, IA 52001
16. Phone: 563 - 589 -4110 Fax: 563- 589 -4149
rdbuol a( ,,citvofdubuque.orq
Title: Mayor
Email:
17. If IEDA needs to contact the sponsor organization with questions, should we contact the person
listed above?
❑ Yes ® No, please contact the following person:Phil Wagner
Name: Phil Wagner Title: Assistant Economic Development Director
Address: 50 West 13th Street
City, State & Zip Code: Dubuque, IA 52001
Phone: 563 - 589 -4393. Fax: 563 - 589 -1733 Email:
pwagner(a citvofdubuque.orq
If necessary, please list information on additional sponsors in an attachment.
IEDA — Business Financial Assistance Application
3 v.2.1.2013
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.
Design Mill, Inc. (DM I) specializes in the development of software for use in the educational industry, manufacturing
industry as well as the Department of Defense. Design Mill is primarily a service organization developing custom apps
for other organizations as well as software products for the retail market. Design Mill also delivers engineering services
and quality inspection services to the Department of Defense and manufacturing companies. DMI's customers range
from technical colleges (training development), educational companies (app development), and manufacturers
(CAD /Inspection). Regional customers include McGraw Hill, John Deere, Highland Community College, Dura
Automotive and the Rock Island Arsenal. Design Mill focuses on developing content for mobile devices.
2. Business Structure:
❑ Cooperative ❑ Corporation ❑ Limited Liability Company
❑ Partnership ® S- Corporation ❑ Sole Proprietorship
3. State of Incorporation: IL
4. Identify the Business' owners and percent ownership: Nathan Greiner /100% owner
5. Does a woman, minority, or person with a disability own the Business? ❑ Yes
6. List the Business' Iowa locations and the most current number of employees at each location. 0
® No
7. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and
other affiliated entities in this figure.) 7
Project Information
8. Project Street Address: 900 Jackson Street
Project City & Zip Code: Dubuque, 52001 Project County: Dubuque
9. Type of Business Project:
❑ Startup
❑ Expansion of Iowa Company ® New Location in Iowa
10. 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.)
Design Mill is considering opening an office in Dubuque, Iowa. We would like to take advantage of the amenities
Dubuque has to offer a growing business. Design Mill's focus in Dubuque will be to develop software for the
educational and manufacturing industries as well as developing custom mobile apps. We are looking at locating in
downtown Dubuque and anticipate build out expenses. We also want to grow our products and services and will need
marketing assistance as well hiring and training assistance.
11.
Project Timeline (add additional rows as needed)
Beginning Activity Date
Activity Completion Date
Develop software for the educational market
7/1/2013
7/31/2016
12. Has any part of the project started *?
If yes, please explain.
* For IEDA's purposes, starting the project includes: the start of construction or rehabilitation, the purchase of a building, the execution of a lease, or
the installation of equipment to be used in the project.
13. 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. Area9 Software Technology, headquartered in Denmark.
SIGON Solutions, Software Engineering, Chicago, IL. Binary Labs, Educational Apps, San Diego, CA. No known
Iowa competitors.
❑Yes ®No
IEDA — Business Financial Assistance Application
4 v.2.1.2013
14. 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.
15. Is the Business actively considering locations outside of Iowa? ® Yes ❑ No
If yes, where and what assistance is being offered? Madison. WI and staving in IL.
16. Please identify the company project management for the project location and experience.
NATHAN GREINER is the President of Design Mill, Inc. He started his career within the Automotive Industry,
focusing on Project and Process engineering, finishing in Program Management prior to starting Design Mill in
2006. He transitioned into supporting the Department of Defense via interactive visualization and has created
software programs for interactive training, interactive maintenance as well as mobile applications for the
educational market. More recently has made the shift into the educational and manufacturing industries developing
3D software solutions for Design Mill's customer base. He has over 17 years of experience, is a licensed
Professional Engineer, and has a Master 's Degree in Business Administration from the University of Texas and a
Bachelor's of Science in Mechanical Engineering from Iowa State University.
IEDA — Business Financial Assistance Application
5 v.2.1.2013
SECTION C
Applicant's Project Budget
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 that 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 years)
$72,387
Source A: IEDA (see #4 below)
$80,000
$72,387
0% / 4
years
on loan
pending
Tenant Improvements
$135,000
$55,000
Personal guarantee
•
$80,000
Source C: Business
$1,105,979
Land Acquisition
committed
Source D: Other Source
$80,000
Build out from
developer
Site Preparation
Source E: Other Source
$
Building Acquisition
$
TOTAL
$1,265,979
Building Construction
Building Remodeling
Mfg. Machinery & Equip.
Other Machinery & Equip
$322,384
$25,000
$297,384
Racking, Shelving, etc.
Computer Hardware
$246,612
$246,612
Computer Software
$140,013
$140,013
Furniture & Fixtures
$49,583
$49,583
Working Capital
Research & Development
$300,000
$300,000
•
Other
TOTAL
$1,265,979
$80,000
$
$1,105,979
$80,000
$
$
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 #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 #4 below)
$80,000
Forgivable loan /
non- forgivable
loan
0% / 4
years
on loan
pending
Source B: Local Government
$0
Personal guarantee
•
Source C: Business
$1,105,979
cash, equity,
equipment
committed
Source D: Other Source
$80,000
Build out from
developer
committed
Source E: Other Source
$
Source F: Other Source
$
TOTAL
$1,265,979
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:
Irrevocable letter of credit
►/
Financial Institute will provide an ILOC
Dedicated certificate of deposit (CD)
•
Surety bond
•
Mortgage on real estate
•
Corporate guaranty
•
Personal guarantee
•
IEDA — Business Financial Assistance Application
6 v.2.1.2013
* The IEDA Board has the final discretion on what collateral will be accepted.
IEDA — Business Financial Assistance Application
7 v.2.1.2013
5.
TAX CREDITS AND INDIRECT FINANCING
Source of Funds
Amount
Description
Investment Tax Credit
$3,620
$3,620 HQJP- program
Sales, Service & Use Tax Refund
Research Activities Credit (3 %!10 %)
$15,000
$15,000 HQJP- program .
Local Property Tax Exemption
Tax Increment Financing
260E Job Training Funds
$118,107
New jobs training for 13 jobs through NICC
In -kind Contribution
Other
TOTAL
$136,727
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.
Due to our business growing with this protect we need qualified employees, we realize that Dubuque IA has and
will retain these employees because of the amenities in Dubuque. To be competitive in the market we need to make
the move to Dubuque, however the start up costs (tenant improvements, base rent, computer hardware etc) need
financing for this to be plausible.
IEDA — Business Financial Assistance Application
8 v.2.1.2013
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
requi
1. How many full -time, permanent employees does your company currently employ within the State of Iowa?
0
2. What is the total premium cost for a standard medical plan for single employee coverage? $3316.00
a. What portion of this cost is paid by the business? 80%
b. What is the deductible associated with this plan? $1000
3. What is the total premium cost for a standard medical plan for family coverage? $ 10,803.00
4.
a. What portion of this cost is paid by the business? 50%
b. What is the deductible associated with this plan? $2000
No additional information required, in this section, if your company meets the requirement for Option 1 or Option 2
5. Does your 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
Option 1
Option 2
Option 3
80% single Coverage
50% Family coverage
Monetary Equivalent
Total Number of
Employees in
Iowa
Pay 80% of premium costs
for a standard medical plan,
single coverage.
Pay 50% of premium costs for
a standard medical plan,
family coverage.
Provide medical and pay the
monetary equivalent of Option
1 or Option 2 in supplemental
employee benefits.
Benefits Counted Toward
250+
$750 maximum deductible
$1,500 maximum deductible
50 -249
$1250 maximum deductible
$2500 maximum deductible
Monetary Equivalent: Medical
0 -50
$1750 maximum deductible
$3500 Maximum deductible
coverage, Dental coverage,
Vision insurance, Life
insurance, Pension, 401(k)
(company's Average
contribution, Short /long -term
disability insurance, Child care
services, Other nonwage
compensation
1. How many full -time, permanent employees does your company currently employ within the State of Iowa?
0
2. What is the total premium cost for a standard medical plan for single employee coverage? $3316.00
a. What portion of this cost is paid by the business? 80%
b. What is the deductible associated with this plan? $1000
3. What is the total premium cost for a standard medical plan for family coverage? $ 10,803.00
4.
a. What portion of this cost is paid by the business? 50%
b. What is the deductible associated with this plan? $2000
No additional information required, in this section, if your company meets the requirement for Option 1 or Option 2
5. Does your 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
$ 292
Dental Insurance — Family plan
$ 875
Pension (Use 3- yearaverage 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
$ 164
Disability Insurance coverage
$ 424
Health Savings Account (HSA) contribution
$ 500
TOTAL
$ 2,255
IEDA — Business Financial Assistance Application
9 v.2.1.2013
6. 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 ($)
2013
$ 0
2012
$ 0
2011
$ 0
Three -year Average:
$ 0
7. 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 year 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
10 v.2.1.2013
SECTION E
Project Jobs
1. List the jobs that will 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 wage rate. 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
Management I
1 -
$60.10
$72.12
Management II
1
$45.67
$54.80
Management III
1
$25
$30
Programmer I
2
$28.85
$34.62
Programmer II
2
$16.34
$19.71
Animator I
1
$25.96
$31.15
Animator II
1
$16.34
$19.71
Graphic Designer
2
$16.34
$19.71
Engineer
2
$24.02
$28.85
CAD
2
$16.34
$19.71
Book keeping /Finance
1
$20
$24
Total Full -Time CREATED Jobs
16
Full -Time RETAINED Jobs
(Add additional rows as needed)
Job Title (AT -RISK jobs only)
Number of
RETAINED
Jobs
Current Hourly
Wage
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
11 v.2.1.2013
SECTION F
Business Taxes
IEDA is required to calculate the return on state and local government investments in this project. Data from other parts
of the application will be combined with the estimates requested below to calculate the required return on investment
information. Please read the following directions carefully:
• IEDA is asking for a best estimate on the increase in taxes associated with this project.
• Estimates should only include the expected increase in tax liability resulting from this project.
• At minimum, IEDA needs estimates for the first three years of the project.
• Show data as if no tax abatements or tax credits awarded for this protect were taken.
• For partnership forms of ownership (e.g. limited partnerships, s- corporations, LLC, etc.), please
estimate the partners' increase in Iowa tax liability due to this project.
• Sales and use taxes refer to the taxes paid on materials, etc. that the Business purchases, not taxes
you collect from sales to your customers.
• Applicants will not be held to these numbers with respect to any award from or contract with IEDA.
• This page of the application will automatically be treated as confidential.
Increase in Tax Collections Associated with this Project
State Business Taxes
Year 1
Year 2
Year 3
Year 4
Year 5
State Corporate Income Tax*
$6,000
$7,200
$8,640
$10,368
$12,442
State Business Sales and Use Tax
$0
$0
$0
$0
$0
* Insurance Companies: Provide State Insurance Premium Tax
Local Business Taxes
Year 1
Year 2
Year 3
Year 4
Year 5
Local Real Estate Property Tax
$1,840
$1,932
$2,024
$2,116
$2,208
Local Option Sales Tax
$0
$0
$0
$0
$0
CONFIDENTIAL
IEDA — Business Financial Assistance Application
12 v.2.1.2013
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
that has 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 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 found at
http : / /www.iowaeconomicdevelopment .com /userdocs /documents /ieda /AttachmentA2-
PavrollTemplate.xls
A3 Affidavit that states 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 found at
http : / /www.iowaeconomicdevelopment .com /userdocs/ documents /ieda /AttachmentA3- Affidavit.doc
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.
AS Collateral documentation (If requesting direct financial assistance only)
Enterprise Zone Supplement —
EZ -1 Application Supplement for Enterprise Zone applications only
1. Enterprise Zone detail:
a. In which Enterprise Zone will this project occur (include the zone's name, number, size in acres,
and date certified)?
b. Please list any additional requirements adopted by the local Enterprise Zone Commission and
how the Business will meet each requirement
2. The following documentation must also be submitted:
a. Legal description of the business site on which the project will occur
b. Detailed map (no larger than 11 "x17 ") showing the business site in relation to the boundaries of the
certified Enterprise Zone
c. Proof that the local Enterprise Zone Commission meeting, during which this application was approved,
was open to the public (i.e. public notice which was published and /or posted)
d. Meeting minutes from the local Enterprise Zone Commission meeting, during which this application was
approved
e. Resolution by the local Enterprise Zone Commission approving this application
IEDA — Business Financial Assistance Application
13 v.2.1.2013
SECTION H
Certification & 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.
I 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.
I understand that 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 have been
met.
I 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 Date Signature
Roy D. Buol, Mayor
Name and Title (typed or printed) Name and Title (typed or printed)
6/17/13
Date
Please use the following if more than one sponsor is required. (For example, use this if a signature from the local
Enterprise Zone Commission is required in addition to the signature from the Mayor of the sponsoring city.)
Signature Date Name and Title (typed or printed)
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
14 v.2.1.2013