High Quality Jobs Program _Hormel FoodsTxE cITY o~ (~ Dubuque
~~ T B E ~!I-America Cult
V ,ice
Masterpiece ot~ t1~e Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: High Quality Jobs Program (HQJP) Application for Hormel Foods Corp.
DATE: February 21, 2008
Economic Development Director David Heiar is recommending approval of submission
of a High Quality Jobs Program (HQJP) application to the Iowa Department of
Economic Development on behalf of Hormel Foods Corp.
The City match to facilitate this grant will consist of a $3 million land acquisition grant
(selling 40 acres at $25,000 per acre, a $75,000 per acre discount) and a 10-year TIF
rebate (estimated at $9 million).
I concur with the recommendation and respectfully request Mayor and City Council
approval.
r
V~
Mic ael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
THE CITY OF DUbUgUF
DUB E
Master~~icce rnr the Mississippi III
~~~~- MEMORANDUM
February 25, 2008
TO: Michael Van Milligen, City Manager
FROM: David Heiar, Economic Development Director
SUBJECT: High Quality Jobs Program (HQJP) Application for Hormel Foods Corp.
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing
the submission of a High Quality Jobs Program (HQJP) application to the Iowa Department
of Economic Development on behalf of Hormel Foods Corp. The HQJP application is
attached.
BACKGROUND
Hormel Foods Corp. plans to build an $89 million, state-of-the-art food processing facility on
a 40 acre site in Dubuque's Industrial Center West. The Austin, Minnesota-based company
hopes to break ground this summer and plans to have two lines producing packaged foods
in 327,000 square feet of new space by the fall of 2009. This project will bring 180 new jobs
to the area, with capacity for more, based on consumer demand for shelf stable microwave
meals. The proximity of Dubuque to Hormel's main grocery products distribution center was
an important logistical consideration.
Raw materials will be shipped to Dubuque from other locations. Various recipes will be used
to make non-frozen, ready-to-eat products for the grocery shelf. The operation will not
involve animal slaughter or meat processing. Hormel Foods Corp. is a multinational
manufacturer and marketer of high-quality, brand-name food and meat products. In each of
the past nine years, Hormel Foods Corp. has been named one of the "400 Best Big
Companies in America" by Forbes.
The HQJP application on behalf of the company will provide financial assistance to enable
the company's proposed development in Dubuque. As required by the HQJP program, the
application requires a commitment of City funds to the project.
DISCUSSION
Hormel Foods Corp. will commit to create 196 new jobs of which 21 will qualify for the
HQJP, averaging over $59,000 per year plus benefits. The Company will be investing
approximately $82 million in construction and equipment costs. Approximately $52 million of
this value will be for the building.
To assist this project, Hormel Foods Corp. has requested the City assist with an application
for the HQJP. City assistance as public match for the HQJP application is required, and is
estimated at $12,000,000, consisting of a Land Acquisition Grant ($3,000,000) and a 10
year estimated TIF rebate ($9,000,000).
RECOMMENDATION
recommend that the City Council authorize the submission of a HQJP application on
behalf of Hormel Foods Corp. with a commitment of local matching funds.
This project is consistent with the City's goals to help businesses expand in the
community, increase the number of good paying jobs and further diversify our economic
base.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
attachments
F:\USERS\DHeiar\Hormel Foods Corp.\Hormel Foods Corp. HQJP memo.doc
RESOLUTION NO 71-08
A RESOLUTION AUTHORIZING THE FILING OF A HIGH QUALITY JOBS PROGRAM
(HQJP) APPLICATION ON BEHALF OF HORMEL FOODS CORP.
Whereas, Hormel Foods Corp. has proposed the expansion of its operations in
Dubuque, Iowa; 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 180 new jobs for area residents; and
Whereas, the Iowa Department of Economic Development's High Quality Jobs
Program (HQJP) was designed to assist in the economic development efforts of local
jurisdictions; and
Whereas, the City of Dubuque, Iowa is eligible to apply for funding from the HQJP
program.
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 High Quality
Jobs Program on behalf of Hormel Foods Corp. is hereby approved.
Section 2. That the local match of identified in the application estimated at
$12,000,000 consisting of an acquisition grant and TIF rebates for increased building
valuation estimated at $82 million to the company is hereby approved, subject to the HQJP
application approval.
Section 3. That the Mayor is hereby authorized to execute and the City Manager is
hereby directed to submit said application to the Iowa Department of Economic
Development together with such documents as may be required.
Passed, approved, and adopted this 3rd day of March, 2008.
Roy D. Buol, Mayor
Attest:
Jeanne Schneider, City Clerk
F:\USERS\DHeiar\Hormel\Resolution approving HQJP app.doc
(2/25/2008) David Heiar -Hormel HQJP Financial Assistance Application Page 1 J
From: <KJSchimnich@Hormel.com>
To: <ken.boyd@iowalifechanging.com>, <dheiar@cityofdubuque.org>
CC: <JLMaccani@Hormel.com>
Date: 2/25/2008 2:53 PM
Subject: Hormel HQJP Financial Assistance Application
Attachments: Hormel Application for State Assistance Dubuque plan.pdf
Mr. Boyd and Mr. Heiar,
Attached please find Hormel Foods' completed Application for Financial
Assistance. This application relates to the proposed facility for Dubuque
Iowa. The data relative to the attachments requested are quite large and
difficult to send via email. Joe will follow up with a hard copy of the
application and all attachments within the next day.
If you have any questions, please feel free to contact myself of Joe
directly.
Thank you for your assistance.
(See attached file: Hormel Application for State Assistance Dubuque
plan.pdf)
Kevin J. Schimnich
Manager International & Property Tax Compliance
Hormel Foods
1 Hormel Place
Austin, MN 55912
Phone 507-437-5359
Fax 507-434-6731
Notice:
This communication is an electronic communication within the meaning
of the Electronic Communications Privacy Act, 18 U.S.C. sec. 2510. Its
disclosure is strictly limited to the recipient(s) intended by the
sender of this message. This transmission and any attachments may
contain proprietary, confidential, attorney-client privileged
information and/or attorney work product. If you are not the intended
recipient, any disclosure, copying, distribution, reliance on, or use
of any of the information contained herein is STRICTLY PROHIBITED.
Please destroy the original transmission and its attachments without
reading or saving in any matter and confirm by return email.
I C~''t/'V~
Michael L.Tramontina, Director
' Iowa De artment of Economic Develo ment
~.'/: ~ changing" p p
Application for Financial Assistance
Section A -Applicant & Project Information
Business Development Division
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, Iowa 50309
www. iowalifechanging.com
Updated: January 16, 2008
Instructions
1. All applicants shall complete Section A of the Application for Financial Assistance and attach o~ those sections} for the
program(s) to which the applicant is applying.
Program Download and Complete
Community Economic Bettemteant Account (CEBA) Section B
Enterprise Zone Program (EZ} Section C
High Quality Job Creation Program (HQJC) Section D
Entrepreneurial Ventures Assistance Program (EVA) Section E
Value Added Agricultural Products & Processes
Financial Assistance Program (VAAPFAP) Section F
Economic Development Set-Aside Program (EDSA) Section G
2. Please visit the IDED Web site, http://www.iowalifechanging.comiapplications/bus dev/index.html or contact IDED at (515)
242-4819 to see if this version of the application is still current.
3. Before filling out this application form, please read all applicable sections of the 2005 Iowa Code and Iowa Administrative
Code (rules). http:l/www4.legis.state.ia.usilAChtmll261.htm
4. Only typed orcomputer-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 wilt not be
accepted.
5. Complete the applicable sections of the application fully; if questions are left unanswered or required attachments are not
submitted, an explanation must be included.
6. Use clear and concise language. Attachments should only be used when requested or as supporting documentation.
7. Any inaccurate information of a significant nature may disqualify the application from consideration.
8. Upon completion of the application, please submit the following to the Business Finance Team at IDED:
• The original, signed application form and all required attachments
• One copy of the application form and all required attachments from which additional copies can easily be made.
If electronic copies of the application and required attachments are available, please a-mail these documents to
businessfinance(a)iowalifechanging.com in addition to submitting the original plus one copy.
Business Finance Team
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines IA 50309
Application Due Dates
IDED Board MeeNn A iication Due Date
Februa 21, 2008 Janua 28, 2008
March 20, 2008 Februa 25, 2008
A ril 17, 2008 March 24, 2008
Ma 15, 2008 Aril 21, 2008
June 19, 2008 Ma 27, 2008
Jul 17, 2008 June 23, 2008
Au ust 21, 2008 Jul 28, 2008
Se tember 18, 2008 Au ust 25, 2008
October 16, 2008 Se tember 22, 2008
November 20, 2008 October 27, 2008
December 18, 2008 November 24, 2008
Section A -Applicant & Project Information
Public Records Policies
Information Submitted to IDED. The Iowa Department of Economic Development (IDED) is subject to the Open Records law
(Iowa Code, Chapter 22). Treatment of information submitted to IDED in this application is governed by the provisions of the
Open Records law. All public records are available for public inspection. Some public records are considered confidential and
will not be disclosed to the public unless ordered by a court, the lawful custodian of the record, or by another person duly
authorized to release the information.
Confidential Records. IDED automatically treats the following records as confidential and they are withheld from public
disclosure:
• Tax Records
• Quarterly Iowa Employer's Confribufion and Payroll Reporf prepared for the Iowa Workforce Development Department
• Payroll Registers
• Business Financial Statements and Projections
• Personal Financial Statements
Other information supplied to IDED as part of this application may be treated as confidential under Iowa Code section 22.7.
Following are the classifications of records which are recognized as confidential under Iowa law and which are most frequently
applicable to business information submitted to IDED:
• Trade secrets [Iowa Code §22.7(3)]
• Reports to governmental agencies which, if released, would give advantage to competitors and serve no public purpose.
[Iowa Code §22.7(6)]
• Information on an industrial prospect with which the IDED is currently negotiating. [Iowa Code §22,7(8)]
• Communications not required by law, rule or regulation made to IDED by persons outside the government to the extent that
IDED could reasonably believe that those persons would be discouraged from making them to the Department if they were
made available for general public examination. (Iowa Code §22.7(18)]
Any requests for confidentiality beyond the items listed above may cause your application to be put on hold until
those requests are resolved.
Information supplied to IDED as part of this application that is material to the application andlor the state program to
which the applicant is applying including, but not limited to the number and type of jobs to be created, wages for those
jobs, employee benefit information, and project budget, are considered open records and will not be treated as
confidential.
Additional Information Available. Copies of Iowa's Open Record law and IDED's administrative rules relating to public
records are available from the Department upon request.
Section A -Applicant & Project Information 3
Applicant Information
1. Name of Business: Hormel Foods Corporation
Address: 1 Hormel Place
City, State & Zip Code: Austin, MN 55912
Contact Person: Jana Haynes Title: Director of Tax
Phone: 507-437-5233 Fax: 507-434-6731 Email: jlhaynes@hormel.com
2. SIC or NAICS Code: 311611
3. Federal ID Number: 41-0319970 State of Incorporation: Delaware
Does the Business file a consolidated tax return under a different tax ID number? ^ Yes X No
If yes, please also provide that tax ID number:
4. Is the contact person listed above authorized to obligate the Business? X Yes ^No
If no, please provide the name and title of a company officer authorized to obligate the Business:
5. If the application was prepared by someone other than the contact person listed above, please complete the following:
Name: Title:
Organization:
Address:
City, State, 8 ZIP Code:
Phone: Fax: Email:
Sponsor Information
Please review the following table to determine who needs to sponsor this application. Depending on the programs being
applied for, more than one sponsor may be necessary.
Pro ram Acce table S onsor
CEBA Ci or Coun or Communit Colle a in which the Project Site is Located
EZ Local Enter rise Zone Commission
HQJC Ci or Count in which the Project Site is located
EVA City or County in which the Project Site is Located; John Pappajohn Entrepreneurial Center; a Small Business
Develo ment Center; Business Accelerator; or an a uivalent or anization reco nized b the IDED
VAAPFAP Ci or Coun in which the Project Site is Located or Local Develo ment Entit
EDSA Ci or Count in which the Project Site is Located
Sponsor Organization: City of Dubuque, Iowa
Official Contact (e.g. Mayor, Chairperson, etc.): Roy D. Buol Title: Mayor
Address: 50 W. 13th St.
City, State & ZIP Code: Dubuque, Iowa 52001
Phone: (563) 589-4110 Fax: (563) 589-4149 E-mail:
2. If IDED needs to contact the sponsor organization with questions, should we contact the person listed above?
^ Yes ® No, please contact the following person:
Name: Dave Heiar Title: Economic Development Director
Address: 50 W. 13th St.
City, State & ZIP Code: Dubuque, Iowa 52001
Phone: (563) 589-4393 Fax: (563) 589-1733 E-mail: dheiar@cityofdubuque.org
If necessary, please list information on additional sponsors in an attachment.
Section A -Applicant & Project Information 4
Certification 8~ Release of Information
I hereby give permission to the Iowa Department of Economic Development (IDED} 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 IDED 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 IDED related to this application is subject to Iowa's Open Record Law (Iowa Code,
Chapter 22).
I understand this application is subject to final approval by IDED and the Project may not be initiated until final approval is
secured. (High Quality Job Creation Program applications may be submitted up to 12 months following the completion of the
project.)
I understand that IDED reserves the right to negotiate the financial assistance. Furthermore, I am aware that financial
assistance is not available until an agreement is executed within a reasonable time period following approval.
I hereby certify that all representations, warranties, or statements made or furnished to IDED 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
knowing-y 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:
-Z~o?S/o6'
Signa ure Date
R.G. Gentzler, V.P, and Treasurer
Name and Title (typed or printed)
For the Sponsor(s):
Signature Date
Rov D. Buol, Mayor
Name and Title (typed or printed}
Please use the following if more than one sponsor is required. (For example, use this if a signature from the local Enferprise
Zone Commission is required in addition to the signature from the Mayor of fhe sponsoring city.)
Signature
Date
Name and Title (typed or printed)
IDED 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, IDED may initiate legal action to recover
incentives and assistance awarded to the Business.
Section A -Applicant & Project Information
Project Information
Provide a brief description and history of the Business. Include information about the Business' products or services
and its markets andlor customers.
Hormel Foods Corporation is a multinational manufacturer and marketer ofconsumer-branded meat and food products, many of
which are among the best known and trusted in the food industry. The company enjoys a strong reputation among consumers,
retail grocers, and foodservice and industrial customers for products highly regarded for quality, taste, nutrition, convenience,
and value.
Hormel Foods and its' subsidiaries sells products in all 50 states through a direct sales force assigned to offices in major cities
throughout the United States. Their efforts are supported by sales brokers and distributors. Hormel Foods International (HFIC},
a wholly owned subsidiary in Austin, has established numerous joint venture and license agreements internationally that include
Australia, China, Denmark, England, Japan, Korea, Mexico, Panama, Canada, the Philippines, Spain and other nations. HFIC
exports products to more than forty countries.
The headquarters for Hormel Foods is in Austin Minnesota along with its research and development division and flagship plant.
Company facilities that manufacture meat and food products are located in Algona, Knoxville, Osceola, Nevada, Fort Dodge,
and Bondurant Iowa; Atlanta, Savannah and Bremen Georgia; Wichita and Alma Kansas; Aurora and Rochelle Illinois; Beloit,
New Berlin, Baron and Sparta Wisconsin; Fremont Nebraska; Stockton, Turlock, San Leandro, Chino, Visalia, and Vernon
California. Custom manufacturing of selected Hormel Foods products is performed by various companies that adhere to
stringent corporate guidelines and quality standards.
With more than 18,000 employees, Hormel Foods is owned by approximately 11,500 shareholders of record. Hormel Foods
common stock is listed on the New York Stock Exchange under the ticker symbol HRL.
2. Business Structure:
^ Cooperative X Corporation ^ Limited Liability Company ^ Not for Profit
^ Partnership ^ S-Corporation ^ Sole Proprietorship
State of Incorporation: Delaware
Identify the Business' owners.
Hormel Foods is a publicly traded corporation with approximately 11,500 shareholders of record.
Does a woman, minority, or person with a disability own over 50% of the Business? ^ Yes X No
If yes, is the business certified as a Targeted Small Business? ^ Yes ^ No
4. List the Business' Iowa Locations and the Current Number of Employees at each Location.
Fort Dodge 21 Knoxville 147 Home Office Based Sales People 28
Osceola 699 Eldridge 62 Nevada 320
Algona 168 Dubuque 8 Ames 7
Bondurant 127
What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and other
affiliated entities in this figure.)
Hormel Foods and subsidiaries employ approximately 18,000 employees worldwide.
6. Briefly describe the proposed project for which assistance is being sought. (Include project timeline with dates, facility
size, infrastructure improvements, proposed productslservices, any new markets, etc.}
Hormel Foods proposes to build a 327,000 square foot manufacturing facility to meet increased market demand for 10 ounce
microwavable meals. The facility will initially consist of 2 production lines with capacity to be expanded to 4 production lines.
Section A -Applicant & Project Information
Construction is projected to begin on May 1, 2008. The first production line is projected to be operational in November of 2009.
The second production line is estimated to be operational in February of 2010.
Project Address (Street Address, City, and County):
Dubuque Industrial Center West off of Chavenejle Road
Dubuque, Iowa
Dubuque County
Type of Business Project:
^ Startup ^ Expansion of Iowa Company ®New Location in Iowa
^ Relocation from another State
Please identify the management at the project location and hislher/their experience.
Until local management is hired, Mr. Mike Devine will manage the project. Mr. Devine is the Director of Grocery Products
Operations Strategy for Hormel Foods and has 32 years of experience with Hormel in the food manufacture industry.
10. Has any part of the project started? ^ Yes ®No
If yes, please explain.
Section A -Applicant & Project Information
11 Project Budget:
AMOUNT BUDGETED
Use of Funds Cost Source A Source B Source C Source D Source E SourcE
Land Ac uisit~on $1;000,000 S S $ $1,000,000 S S
Site Pre aration $4.590,000 S S $ $4.590.000 S S
Buildin A uisition $ S S g $ S
S
Buildin Construction $51,750,000 S S $ $51,750,000 S S
Buildin Remodelin $ S S $ $ S S
Mf .Machine & E ui . $29,952,600 S S $ $29.952,60() S S
Other Machine ~ E ui . $ S S $ $ S S
Rackin , Shelvin etc.' $160 000 S S $ $160,000 S S
Com uter Hardware $857,000 S S $ $857,000 S S
Com uter Software $23,000 S S $ $23,000 S $
Furniture & Fixtures $100,000 S S $ $100,000 S S
Workin Ca ital $31,800,000 S S $ $31,800,000 S S
Research & Develo men) $106,000 S S $ $106,000 S S
Job Trainin $900,000 S S $ $900,000 S S
S $ b S S $ S
$ S S $ $ S S
TOTAL $123,238,600 $ $ $ $123,238,600 $ $
rcacKmg, snewmg and conveyor tquipment used in warehouse or Distribution Center Projects
Does the Business plan to lease the facility? Q Yes ®No If yes, please provide the Annual Base Rent Payment (lease payment
minus property taxes, insurance, and operatinglmaintenance expenses) and the length of the lease agreement.
PROPOSED FINA
Source of Funds
(List tax benefits separately; not
as a source of funds.) Amount Form of Funds
(Loan, Grant, In-Kind Donation, etc.) Rate Term Co
Include wh
pay
Source A: IDED $
Source B: Other State (e.g.
Communit Call e, DOT, etc. $
Source C: Local Government $
Source D' Business $123,238,600
Source E: Other Private Sources $
Source F: $
Source G $
Source H: $
TOTAL $123,238,600
Please list below any tax benefits (e.g. Investment Tax Credit, Sales Tax Refund, R&D Tax Credit, New Jobs Tax Credit,
Property Tax ExemptionlAbatement, etc.) that the Business expects to receive and included the estimated value of
each tax benefit:
New Jobs Credits ($0.5M); Job Training Funds ($0.9M); Real Property Tax Abatement (100% abatement for ten years); HQJP
!TC ($4.4M}; HQJP Sales Tax Refund ($1.4M}.
Section A -Applicant & Project Information
12. Employee Benefits: Please identify all employee benefits provided by and paid for (in full or in part) by the Business.
Employee Benefits Total Annual Cost Portion of Total Plan Provisions
Provided b the
y
(Show on a per
Annual Cost Paid {Include deductibles, coinsurance °/°. office visit
Business
employee basis)
by the Business* co_payments, annual out-of-pocket maximums,
_ face amounts. etc.)
Em to ee Famil Em to ee Famil ,
$4,400 $11,600 82% 80% _
$400 deductible, 82/20 co-insurance Annual
MedicallHealth out of pocket maximum $2,000
Insurance
Include in Include Include in Inciude 80120 co-insurance to a maximum calendar
Dental Insurance above in above above in above employer payment of $1,000, $75
deductible, 50% co-insurance on
orthodontics to $1,000 lifetime maximum
Include in Include Include in Include $40 employer payment on exam, $45 on
Vision Insurance above in above above in above lenses, $45 on frames. Benefit available
eve 2 ears.
$20 100% $10,000 term life, $5,000 accidental death
Life Insurance
$340 100% 60% of weekly pay, 10 week maximum, 5
Short Term Disability day waiting period
(STD)
None
Long Term Disability
(LTD)
If the business's plan is self-insured, please use the amount paid by the business for costs associated with employee and
family coverage during the past three years and then, determine the business' average annual contribution per employee for
that three year period.
Does the Business offer a pension plan, 401(k) plan, and/or retirement plan? XX Yes ^ No
If pension plan:
Average annual benefit per employee:
If 401(k) Plan:
Company match offered as a percentage of salary: 3%
Average annual match paid as a percentage of salary: new location
If other retirement plans:
Type of plan: Employer 401 k fixed contribution
Average annual benefit per employee: $416
Does the Business offer aprofit-sharing plan? ^ Yes XX No
If yes, please indicate the total amount paid out each year for the past three year and then, determine the average annual bonus
or contribution per employee for that three year period.
Section A -Applicant & Project Information
Does the Business offer child care services? ^ Yes XX No
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.
Hormel Foods and subsidiaries compete domestically and internationally with various companies including but not limited to
ConAgra Foods, Kraft Foods, Smithfield Foods, Oscar Mayer Foods, Cargill Inc., and Tyson Foods.
14. Will any of the current Iowa employees {ose theirjobs if this project does not proceed in Iowa?
^ Yes X No
If yes, please explain why and identify those jobs as "retained jobs" in the following question.
Section A -Applicant & Project Information ~p
15. List the jobs that will be retained and/or created 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 retained jobs, include the current
hourly wage rate. For jobs to be created, including the starting hourly wage rate.
SUMMARY OF NEWLY CREATED JOBS FOR DUBUQUE PLANT
B c D
Created Job
Job Title Skills, Education, or Experience # of (C) Estimated Qualify?
Required Jobs °r
Retained starting rate (tf E >
R $20.68)
Plant Mgr 4 yr degree and/or 1 C $60.00 YES
related experience
Production Supt 4 yr degree and/or 1 C $38.00 YES
related experience
Mgr Plant Engineering 4 yr degree and/or 1 C $36.00 YES
related experience
Human Resource Mgr 4 yr degree and/or
related experience 1 C $32.00 YES
Plant Controller 4 yr degree and/or
related experience 1 C $32.00 YES
Industrial Engineering Mgr
4 yr degree and/or
related experience
1
C _
$30.00
YES
Quality & Process Control Mgr related erxperience 1 C $30.00 YES
Maintenance Engineer 4 yr degree and/or
related experience 1 C $30.00 YES
Purchasing Mgr 4 yr degree and/or
related experience 1 C $28.00 YES
0&PC Supv I 4 yr degree and/or 1 C $25.00 YES
related experience
Production Supv-Days 4 yr degree and/or 3 C $25.00 YES
related experience
Maintenance Supv 4 yr degree and/or 2 C $25.00 YES
related experience
Supv Sanitation 4 yr degree and/or 1 C $23
00 YES
related experience .
Production Supv-Nights 4 yr degree and/or
related experience 3 C $23.00 YES
Relief Production Supv 4 yr degree and/or
related experience 2 C $21.00 YES
Sr Electronic Tech 2 yr technical degree and/or 4+yrs 2 C $18
00 - $21
00 NO
related experience preferred .
.
Electronic Tech 2 yr technical degree and/or 0-2 yrs 2 C $15.00 - $18
00 NO
related experience preferred .
Office Clerical High School Diploma, GED or related 5 C $11
00 - $15
00 NO
experience preferred .
.
Quality Control Auditors High School Diploma, GED or related 14 C $11
00 - $15
00 NO
experience preferred .
.
MechanicslElectricians 2 yr technical degree and/or related 12 C $13
00 - $17
00 NO
experience preferred .
.
Plant Laborers Related experience preferred 140 C $11.50-$13.50 NO
Total positions 196 21
Section A -Applicant & Project Information
Notes: There is not a single starting rate for our management positions because it varies based on several factors,including
academic credentials, relevant work experience, strength of interview, labor market, etc. However, the data provided in Column
E is quite typical for someone meeting the minumum qualifications. This philosophy also applies to office clerical, QC auditor,
and E-Tech positions, and therefore, we are showing a reasonable range for those starting salaries.
Section A -Applicant & Project Information 12
16. Discuss each of the following items with respect to the proposed project:
a) the current employment conditions in the community, include any business closures, unemployment rates, etc.
and if applicable, the community's need for assistance in attracting the Business.
The area has seen some fairly substantial closing over the past few years. In January 2008, McKesson
Corporation announced eliminating 79 positions in Dubuque. McKesson will retain 300 employees in the
community but the future of those positions is unknown. Regency Thermographers closed which resulted in
137 jobs being lost. Camoplast in Peosta cut-back dramatically, resulting in 40 jobs being lost. Unique
Balance closed putting 80 people out of work. Flexsteel has eliminated approximately 400 jobs in the last 3
years. With these plant closings and layoffs many qualified workers are in need of different career
opportunities.
b) impact of the proposed project on the community and the state, include projections that reflect the impact on local
and state tax revenue and any additional costs the community will incur as the result of the proposed project;
The proposed project would have a significant impact on the local community and surrounding communities.
These would include improved employment opportunities that result in growth in the region's workforce, which
results in an increase in revenues to the region. This may also help with continued residential growth within
the City of Dubuque.
The City of Dubuque has begun a new workforce initiative called "Project Hope" which will address the needs
of the underemployed in Dubuque. In the past several years, Dubuque has seen a decrease in low-skill
occupations making additional blue collarjob opportunities which require minimal education a priority in the
community.
The City of Dubuque will be preparing the grading the site and providing access to necessary public
infrastructure. Depending on the site layout, the costs will vary.
c} impact the proposed project will have on current employees, including the potential for increased skills and wages;
Not Applicable
d) impact the investment will have on the ability of the business to expand, upgrade, or modernize its capabilities.
See Attachment Al (Market Assessment & Feasibility Study)
17. Is the Business actively considering locations outside of Iowa? XX Yes ^ No
If yes, where and what assistance is being offered?
Illinois: Property tax abatement; sales tax exemption; investment tax credits; training grants
18. There are three general justifiable reasons for assistance. Check the box next to the reason why assistance is needed
to complete this project
^ Financing Gap -The Business can only raise a portion of the debt and equity necessary to complete the
project. A gap between sources and uses exists and state andlor federal funds are needed to fill the gap.
^ Rate of Return Gap -The Business can raise sufficient debt and equity to complete the project, but the
returns are inadequate to motivate an "economic person" to proceed with the project. Project risks outweigh the
rewards.
XX Locational Disadvantage (Incentive} -The Business is deciding between a site in Iowa (site A) and a site in
another state (site B) for its project. The Business argues that the project will cost less at site B and will require a
subsidy to equalize costs in order to locate at site A. The objective here is to quantify the cost differential between site
A and site B.
Section A -Applicant & Project Information 13
There is a differential in local and state economic incentives between site A and site B located in Illinois. In addition,
Hormel's analysis indicates that wages and benefits along with projected training costs related to turnover are
anticipated to be higher at site A versus site B in Illinois.
What measures were analyzed to determine the amount and form of assistance needed?
Hormel analyzed Laborshed Studies specific to sites A and B. In addition, interviews were with local employers near
site A and site B. Economic Incentive proposals are being scrutinized in an effort to assist with the identification of the
most advantageous location of Hormel's new facility.
19. What amount of state assistance is requested based on the above-identified need? $7,200,000 plus 100%
property tax abatement for ten years.
What typeiform of assistance is preferred (e.g. loans, forgivable loans, tax incentives, etc.)?
New jobs credits ($0.5M); Job Training funds ($0.9M}; Real Property tax abatement (100% abatement for ten years);
HQJP ITC ($4.4M); HQJP Sales tax refund ($1.4M)
20. Please indicate what program(s) the Business is applying to and download and submit those applicable sections:
^ CEBA (Complete Section B)
^ EZ (Complete Section C)
® HQJC (Complete Section D)
^ EVA (Complete Section E}
^ VAAPFAP (Complete Section F)
^ EDSA (Complete Section G)
The Department reserves the right to review this application and determine, based on the proposed project and available
program funds, which >inancial assistance program(s) is best suited for the Business' project. The actual program(s) utilized
may vary from the programs indicated above.
Section A -Applicant & Protect Information ~q
21. Fiscal Impact Ratio Information -Business Taxes
IDED is required to calculate the fiscal impact on state and local government investments in this project. Data from other parts
of the application wilt be combined with the estimates requested below to calculate the required return on investment
infom~ation.
Instructions for Question 21
- IDED 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, IDED needs estimates for the first three years of the project.
- Show data as if no tax abatements or tax credits awarded for this aroiect 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 IDED.
- 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" $ $ $ $ $
State Business Sales and Use Tax $1,400,000 $120,000 $125,000 $130,000 $135,000
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 $261,600 $268,140 $274,840 $281,715 $288,760
Local Option Sales Tax $25,000 $12,000 $12,500 $13,000 $13,500
Section A -Applicant & Project Information ~ g
Attachments
Please attach the following documents:
Al Business Plan
At a minimum, include:
• marketing study, ,
• feasibility study,
• projected profit and loss statements for three years into the future,
• project budget,
• production operations,
• management structure,
• personnel needs,
• descriptions of product or process,
• status of product/processdeve/opment, and
• patent status (if applicable).
(Any information outlined above not included in the business plan should be submitted as supplemental information via
a separate attachment.)
A2 Copies of the Business' Quarterly Iowa Employer's Contribution and Payroll Report Summary Page (Page 1) for the
past year and 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:
• company name, date of payroll and source of payroll information
• employee name and/or employee identification number
• current hourly wage - do not include bonuses or other benefit values
• indicate if the employee is full time (40 hours per week, 52 weeks per year) or part time.
A sample Excel spreadsheet can be found at
http:Jlwww.iowalifechanginq.comlagplications/bus dev/payroll template.xls
A3 Affidavit that states the Business has not, within the last five years, violated state or federal statutes, rules, and
regulations, including environmental and worker safety regulations, 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:llwww.iowalifechanginq.com/applicationslbus devlsamoleaffidavit.doc.
A4 Financial Information (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.
Application Checklist
Section A -Applicant & Project Information ~g
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