Sedgwick - Iowa Values Fund Contract Amendment Copyright 2014
City of Dubuque Consent Items # 15.
ITEM TITLE: Sedgwick - Iowa Values Fund Contract Amendment
SUMMARY: City Manager recommending approval of an amendment to an Iowa
Values Fund agreement with the Iowa Economic Development Authority
and Sedgwick Claims Management Service, Inc.
RESOLUTION Authorizing a Contract Amendment to the Economic
Development Financial Assistance Contract by Sedgwick Claims
Management Services, Inc., the City of Dubuque, and the Iowa
Department of Economic Development
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s)
ATTACHMENTS:
Description Type
❑ First Amendment State of Iowa and Sedgwick Claims-MVM Memo City Manager Memo
❑ Staff Memo Staff Memo
❑ Contract Amendment Supporting Documentation
❑ Resolution Resolutions
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: First Amendment to State of Iowa Direct Financial Assistance Contract for
Sedgwick Claims Managements Services, Inc.
DATE: February 23, 2015
Economic Development Director Maurice Jones is recommending City Council approval
of an amendment to an Iowa Values Fund agreement with the Iowa Economic
Development Authority and Sedgwick Claims Management Service, Inc.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
Dubuque Economic Development Department
THE CITY OF 50 West 13th Street
All-AmericaCitY Dubuque,Iowa 52001-4864
DUB36kE1 ' Office(563)589-4393
TTY(563)690-6678
® http://www.cityofdubuque.org
Masterpiece on the Mississippi 200.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: First Amendment to State of Iowa Direct Financial Assistance
Contract for Sedgwick Claims Management Services, Inc.
DATE: February 19, 2015
INTRODUCTION
The purpose of this memorandum is to request City Council approval of an amendment
to an Iowa Values Fund agreement (11-IVF/TC-010) with the Iowa Economic
Development Authority and Sedgwick Claims Management Services, Inc.
BACKGROUND
On August 16, 2010, the City Council authorized submittal of a joint application to Iowa
Department of Economic Development for financial assistance from the Iowa Values
Fund for the High Quality Jobs Program (130% of median county income) for the
expansion of Sedgwick CMS in both Dubuque and Bellevue. The state approved an
award of funds on August 19, 2010.
DISCUSSION
The original contract was based on estimated construction costs of both Dubuque and
Bellevue facilities. However, the final project costs came in lower than the original
estimates. The first amendment to the agreement reduces the amount of the
agreement to reflect actual project costs.
RECOMMENDATION/ ACTION STEP
I recommend approval of the attached resolution to authorize the Mayor to sign the
Agreement Amendment, which lowers the amount of the agreement to coincide with the
actual project budget.
RECIPIENT:
CONTRACT NUMBER:
AMENDMENT NUMBER:
EFFECTIVE DATE:
CONTRACT AMENDMENT
Sedgwick Claims Management Services, Inc.
11-IVF/TC-010
One
October 17, 2014
THIS CONTRACT AMENDMENT is made by and between the IOWA ECONOMIC
DEVELOPMENT AUTHORITY f/k/a IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT,
(hereafter "IEDA"), 200 East Grand Avenue, Des Moines, Iowa 50309, an agency of the State of
Iowa, Sedgwick Claims Management Services, Inc. ("Recipient"), 1100 Ridgeway Loop
Road, Suite 200, Memphis, Tennessee, 38102, and the City of Dubuque ("Community"), 50
West 13`h Street, Dubuque, IA 52001.
WHEREAS, the actual Project budget differed from that contemplated at the time the
Contract was executed, and
WHEREAS, the IEDA BOARD approved the proposed changes to the budget, effective
as of the Effective Date stated above, and
NOW, THEREFORE, the Contract referenced above is amended as follows:
1. REVISION OF AWARD AMT. — TAX BENEFITS. $152,200. $112,721.
2. REVISION OF ARTICLE 3.1, TOTAL AWARD AMOUNT.
TAX INCENTIVES
Included
in Award
High Quality Jobs Program
Tax Incentives
$152,200 $112,721
TOTAL STATE TAX INCENTIVES:
$152,200 $112,721
3. REVISION OF ARTICLE 3.3, "TERMS AND CONDITIONS OF STATE BENEFITS."
(b) Minimum Investment Requirements. As a condition of receiving Tax Benefits,
the Recipient shall meet the following minimum investment requirements:
(i) Capital Investment. $1,739,240 $4,655,492
(ii) Qualifying Investment for Tax Credit Program. $ 4,739,210 $4,655.492
(iii) Investment Qualifying for Tax Credits. $ 1,029,010 $2,962,743
(c) Tax Benefits Authorized. The IDED Board awards to Recipient the following tax
benefits, in the maximum amounts shown for each authorized benefit:
Authorized Benefits
Included
in Award
Maximum Amt.
Supplemental New Jobs Credit. Additional funds
for training new employees (1.5% withholding for
10 years)
Yes
No
$ 0
a
❑
Refund of Sales, Service, and Use Taxes. Refund
of sales, service, and use taxes paid to
contractors or subcontractors during construction.
Yes
No
$10,521
I
$ 50,000
❑
Refund of Sales Taxes Attributable to Racks,
Shelving, and Conveyor Equipment.
❑
Yes
$ 0
Authorized Benefits
Included in Award
Maximum Amt.
No
Corporate Tax Credit For Certain Sales Taxes
Paid By Third Party Developer
❑
Yes
No
$ 0
►1
Investment Tax Credit (Negotiated)
Yes
No
$ 102,200
►1
❑
Doubled Research Activities Credit.
❑
Yes
No
$ 0
0
MAXIMUM AWARD — STATE'S PORTION
$ 152,200
$112,721
Local Property Tax Exemption Provided by
❑
Yes
INC
$ 0
Community
►/
TOTAL AWARD — STATE AND LOCAL
$ 152,200
$112,721
(d) Refund Of Sales, Service And Use Taxes Paid To Contractors Or
Subcontractors - $50,000 $10,521. The Recipient is eligible for a refund of sales, service and
use taxes paid to contractors and subcontractors as authorized in Iowa Code section 15.331A.
(i)
The Recipient may apply for a refund of the sales and use taxes paid under Iowa
Code chapters 422 and 423 for gas, electricity, water or sewer utility services,
goods, wares, or merchandise, or on services rendered, furnished, or performed
to or for a contractor or subcontractor and used in the fulfillment of a written
contract relating to the construction or equipping of a facility of the Recipient.
(ii) Taxes attributable to intangible property and furniture and furnishings shall not be
refunded.
(iii) To receive a refund of the sales, service and use taxes paid to contractors or it
subcontractors, the Recipient must:
• Inform the Iowa Department of Revenue (IDR) in writing within two
weeks of project completion. For purposes of claiming this refund,
"project completion" means the first date upon which the average
annualized production of finished product for the preceding ninety -day
period at the manufacturing facility operated by the Recipient is at least
fifty percent of the initial design capacity of the facility.
• within one year after Proiect Completion, make an application to the
Department of Revenue.
4. REVISION OF EXHIBIT B, "DESCRIPTION OF THE PROJECT AND AWARD
BUDGET." Exhibit B is amended as follows to accurately depict the project budget.
Details of this change are reflected in the attached Revised Exhibit B which is hereby
incorporated by reference and made a part of this Contract Amendment.
Except as otherwise revised above, the terms, provisions, and conditions of Contract Number
11-IVF/TC-010 remain unchanged and are in full force and effect:
p4.1.6_," Pool c-_ ye
FOR IEDA:
Deborah V. Durham, Director
PRINT NAME, TITLE' Date
FOR COM
SIGNATUIIE, Date
Roy3itD Mayo(
PRINT NAME, TITLE
RESOLUTION NO. 63-15
AUTHORIZING A CONTRACT AMENDMENT TO THE ECONOMIC DEVELOPMENT
FINANCIAL ASSISTANCE CONTRACT BY SEDGWICK CLAIMS MANAGEMENT
SERVICES, INC., THE CITY OF DUBUQUE, AND THE IOWA DEPARTMENT OF
ECONOMIC DEVELOPMENT
Whereas, Sedgwick Claims Management, Inc. (Sedgwick) and the City of Dubuque
(City) entered into The Economic Development Financial Assistance Contract (the
Contract) with the Iowa Economic Development Authority (IEDA) for the expansion of
Sedgwick's operations in Dubuque and Bellevue, Iowa; and
Whereas, Sedgwick's actual project budget differs from the budget described in the
Contract; and
Whereas, the IEDA Board approved revisions to the project budget to reflect actual
costs, effective October 17, 2014; and
Whereas, the parties now desire to amend the Contract to reflect the actual project
budget 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 Contract Amendment is hereby approved.
Section 2.The Mayor is hereby authorized and directed to execute and the City
Manager is hereby directed to submit the Contract Amendment to the Iowa Economic
Development Authority together with such other documents as may be required.
Passed, approved, and adopted this 2nd day of March, 2015.
Roy D. Buol, Mayor
Attest:
Trish L. Gleason, Assistant City Clerk