RISE Application New Street for Hormel DICWTHE CITY OF Dubuque
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Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Immediate Opportunity RISE Application for New Street (Chavenelle
Court) South of Chavenelle Drive to Support the Hormel Project
DATE: March 11, 2008
Economic Development Director Dave Heiar is recommending approval of a grant
application to the Iowa Department of Transportation (IDOT) .Revitalize Iowa's Sound
Economy (RISE) program to help finance a street that will serve the Hormel project in
Dubuque Industrial Center West.
Hormel Foods Corporation plans to build an $89 million, state-of-the-art food processing
facility on approximately 40 acres in the Dubuque 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 196 new jobs to the area, with capacity for more, based on
consumer demand for shelf stable microwave meals.
The total estimated cost of the street project is $555,989. A local match of twenty
percent ($111,198) is required by the State. The City has remaining G.O. Bond
proceeds from the Chavenelle Street Extension project to use as local match.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~l ~~
ichael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THE CTIY OF DU bU q UE
DUB E
Masterpiece on the Mississippi ~ I I
z~K-, MEMORANDUM
March 10, 2008
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Immediate Opportunity RISE Application for a New Street
(Chavenelle Court) South of Chavenelle Drive to Support the Hormel
Project
INTRODUCTION
This memorandum requests City .Council approval of a Resolution endorsing a RISE
grant application for a new street south from Chavenelle Drive to serve the 48.6 acres of
industrial property located in the lower level of the Dubuque Industrial Center West. The
new street will be named Chavenelle Court, and is needed to accommodate the Hormel
project.
BACKGROUND
The Iowa Department of Transportation (IDOT) administers the Revitalize Iowa's Sound
Economy (RISE) program which provides funding in support of local and/or regional
economic development efforts. The RISE Funding may be used to assist construction of
new roadways to support new economic development initiatives.
A local match of not less than twenty percent is required in the Immediate Opportunity
RISE program. The City has remaining G.O. Bond proceeds from the Chavenelle Street
Extension project to use as local match.
Hormel Foods Corporation plans to build an $89 million, state-of-the-art food processing
facility on approximately 40 acres in the Dubuque 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 196 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 Corporation is a
multinational manufacturer and marketer of high-quality, brand-name food and meat
products. In each of the past nine years, Hormel Foods Corporation has been named
one of the "400 Best Big Companies in America" by Forbes.
DISCUSSION
The attached Resolution authorizes an application for RISE funding for a new 1,580 foot
urban industrial cul-de-sac providing access into this 48.6 acre site. This road will
provide direct access to 2 industrial lots. Based on the projected traffic volume on
Chavenelle Road, the engineers are proposing separate right and left turn lanes in the
vicinity of Chavenelle Court.
The Resolution contains provisions required by IDOT, including an endorsement of the
project, a certification that the roadway is dedicated to public use and will remain so
dedicated and the assurance that the City assumes responsibility for the ongoing
maintenance of the roadway improvement. The total estimated cost of the street project
is $555,989 which includes design and engineering and construction services. The
application requests that the State fund 80% or $444,791 of the eligible costs with a
RISE grant. The balance of street project cost ($111,198) will be funded by proceeds
from a previous G.O. Bond sale. The City will also be responsible for the extension of a
water main along the new street. Sanitary sewer is already extended to the site.
RECOMMENDATION
I recommend that the City Council endorse the submission of an application for a RISE
grant for Chavenelle Court. This project will provide access into a 48.6 acre parcel
which will be subdivided into two lots. One of these lots will accommodate the Hormel
project, and there will be another 7.5 acre parcel for future development.
If the City is successful with this application, we will return to the City Council for
approval of the grant agreement and finalization of local match funding.
ACTION STEP
The action is to adopt the attached Resolution.
Attachment
F:\USERS\DHEIAR\RISE\RISE APP MEMO TO MVM.DOC
Prepared/Return to: David Heiar Economic Development 50 W. 13th St. Dubuque, IA 52001 (563) 589-4393
RESOLUTION NO 92-08
A RESOLUTION ENDORSING THE SUBMISSION OF A REVITALIZE IOWA'S
SOUND ECONOMY (RISE) APPLICATION TO THE IOWA DEPARTMENT OF
TRANSPORTATION FOR THE CONSTRUCTION OF A CUL DE SAC SOUTH FROM
CHAVENELLE ROAD TO ACCESS LOTS IN THE DUBUQUE INDUSTRIAL CENTER
WEST 3RD ADDITION.
Whereas, the City of Dubuque believes that economic development opportunities
require developable industrial land with adequate public infrastructure in order to retain
and attract new job creating businesses and industries to this community; and
Whereas, the City of Dubuque is developing 48.6 acres of additional industrial
land located in the Dubuque Industrial Center West (lot 4, 5th addition); and
Whereas, certain lots within the development must be accessed by a cul de sac
extending south from Chavenelle Road; and
Whereas, the City is negotiating with Hormel Food Corporation to purchase 40
acres of land to build a 327,000 square foot manufacturing facility that will create196
new jobs; and
Whereas, the Iowa Department of Transportation, through its Revitalize Iowa's
Sound Economy (RISE) Immediate Opportunity Project Funding, has monies available
for the development of public roadways to support immediate economic development
opportunities.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City of Dubuque hereby endorses the application to the Iowa
Department of Transportation for RISE Immediate Opportunity funding to provide
roadway access to development lots in the Dubuque Industrial Center West 3rd Addition
in support of the construction of a new Hormel Foods Corporation manufacturing facility
in the industrial park.
Section 2. That the City of Dubuque hereby certifies that the roadway
improvements will be dedicated to public use and will remain so dedicated to public use
and that G.O. Bond funds will be available to finance the City's portion of project costs.
Section 3. Lot 4 of the 5th Addition in the Dubuque Industrial Center West,
currently is only accessible by a dirt road. A paved street is essential to serve this site to
accommodate the proposed Hormel project.
Section 4. That the City of Dubuque hereby assumes responsibility for and
ongoing maintenance of these roadway improvements and ensures that the roadway
will be adequately maintained in the future.
Section 5. That the City Manager is authorized to sign, on behalf of the City
Council, the application for RISE funding.
PASSED, APPROVED and ADOPTED this 17th day of March, 2008.
Roy D.
ATTEST:
Jeanne F. Schneider, City Clerk
F:\USERS\DHeiar\RISE res.doc
Dubuque
Economic Development Department
City Hall -Second Floor
50 West 13th Street
Dubuque, Iowa 52001-4864
(563) 589-4393 office
(563) 589-1733 fax
(563) 690-6678 TDD
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March 5, 2008
Tom Vaughan
Office of Local Systems
Iowa Department of Transportation
800 Lincoln Way
Ames, Iowa 50010
RE: Immediate Opportunity RISE Program
Dear Mr. Vaughan:
Enclosed please find an application for the Immediate Opportunity Rise Program to assist
Hormel Food Corporation with the construction of a new manufacturing facility in the Dubuque
Industrial Center West. The new facility will be a wholly-owned subsidiary of Hormel, as the
company seeks to expand into the microtray packaged foods market, a niche where demand is
growing across the country. Raw material will be shipped to Dubuque from other locations.
Various recipes will be used to make ready-to-eat products for the grocery shelf.
The creation of 196 new manufacturing jobs will have a tremendous impact on the local
economy. It is hoped that these new positions will offset the loss of other jobs in the community.
The area has seen some fairly substantial closing over the past few years. In January 2008,
McKesson Corporation announced eliminating 79 positions in Dubuque. Regency
Thermographers closed its doors, resulting 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.
The proposed street will serve a 39.73 acre site for the Hormel plant. The street will also serve a
7.5 acre site for future development.
In an effort to move forward in a timely matter to meet Hormel's construction schedule, the
application and attached resolution are not signed. The City Council will act on these matters on
March 17, and I will forward the signed copies at that time.
If you have any questions or need additional in#ormation, please call me at (563)589-4393.
Sincerely,
~~
David J. Heiar
Economic Dev opment Director
Cc: Fred Dean
Service People Integrity Responsibility Innovation Teamwork
Form 260002
I 0-04wd
~~ Iowa Department of Transportation
APPLICATION FORM
for RISE:
IMMEDIATE OPPORTUNITY PROJECT FUNDING
GENERAL INFORMATION
Applicant Name: City or County of City of Dubuque
Contact Person: David J. Heiar Title: Economic Development Director
Complete Mailing Address City Hall, 50 West 13`h Street
Street Address and/or Box No.
Dubuque IA 52001 Daytime Phone: (563)589-4393
City State Zip Area Code
If more than one local government is involved in this roadway project, please state the highway authority, contact
person, mailing address, and telephone number of the second agency. (Attach an additional page if more than two
agencies are involved.)
City or County of N/A
Complete Mailing Address
Contact Person:
Street Address and/or Box No.
Daytime Phone:
City State Zip Area Code
Was this application discussed with or reviewed by DOT District Office staff? ®Yes ^ No
Have you applied for funding from the Department of Economic Development? ®Yes ^ No
If so, please state amount, purpose, and status. HQJP application for $5,800,000 is on the March IDED agenda
Please complete the following:
The proposed project is on the following type(s) of road:
® City Street ^ Secondary Road ^ Primary Road
This project involves ®Development of a New Road (Length in feet: 1580
^ Improvement of an Existing Road (Length in feet: )
^ Both
This project involves ^ Expanding an Existing Development
® Attracting a New Development
^ Retaining an Existing Development
Has any part of this development or roadway project been started? ^Yes ®No
If yes, please explain.
Does the project involve relocation of economic activity from elsewhere in Iowa? ^ Yes ®No
If yes, please explain.
This application is for RISE funding as a ^ Loan ®Grant ^ Combination
If this application is for a loan or a combination loan/grant, please state the proposed terms of repayment. (Include
amount of principal to be repaid, proposed interest rate, length of repayment, etc.)
If this application is for funding for two or three program years, please specify the amount of funding requested for
each year:
First year $ N/A Second year $ Third year $
ROADWAY PROJECT COST INFORMATION
(Please attach an itemized breakdown as Item J.)
RISE funds requested for roadway project
Non-RISE funds available for roadway project
List below the source and amount of these non-RISE
roadway funds.
Source
1. G.O. Bonds
2.
3.
4.
$ 444,791
$ 111,198
Amount
Total cost of roadway project $ 555,989
(The RISE funds requested and the non-RISEfunds
available should equal the total cost of roadway project.)
TOTAL CAPITAL INVESTMENT INFORMATION
(For purposes of this application, total capital investment
should not include any investment in the roadway project.
Please attach an itemized breakdown as Item I.)
Capital investment from private sources (non-roadway) $ 123,238,600
Capital investment from public sources (non-roadway) $ 19,471,000
Total Capital Investment $ 142,709,600
ECONOMIC IMPACT INFORMATION
The type of development involved is
® Industrial/manufacturing
^ Commercial/office/wholesale
^ Park/tourist/recreational
^ Retail
^ Other (sped)
Assured?
yes
Please state the number of permanent, direct jobs created and/or retained as a result of this project. (Direct jobs
created refer to new jobs in firms, developments, or sites specifically assisted by a RISE project but do not include
construction or indirect "multiplier" jobs. Direct jobs retained do not include existing jobs unless there is an
immediate threat the development will be located out-of-state, and documentation is provided.)
Permanent, full-time jobs at present 0
Initial direct jobs created 196
(within first two years)
Future direct jobs created
(beyond first two years)
(Else full-time equivalents if necessary.)
Total direct jobs created 196 Total direct jobs retained 0
2
DOCUMENTATION INFORMATION
The following documents must be attached to this application. In the upper right-hand corner of each document,
write the letter shown below which the document supports. (Please refer to the general instructions for an
explanation of each item.)
Please check that the following items are attached:
® A. A RESOLUTION or resolutions approved by the participating local governments.
® B. A NARRATIVE describing the potential economic development.
® C. A TRANSPORTATION NARRATIVE assessing existing conditions, outlining the proposed
concept of the roadway project, and providing adequate transportation justification.
® D. A reproducible MAP identifying the general area, the location of the roadway project, and the
location of associated economic development.
® E. A PLAN and typical CROSS-SECTION of the roadway project.
® F. A TIME SCHEDULE for the total development, including the roadway project.
® G. ASSURANCE of at least 20 percent non-RISE financial participation in the project.
® H. DOCUMENTATION that arrangements have been made for nonroadway factors intrinsic to the
success of the development.
® I. An ITEMIZED BREAKDOWN of total capital investment (nonroadway).
® J. An ITEMIZED BREAKDOWN of total roadway project costs. The attached form must be used.
® K. A NARRATIVE describing the associated economic development and jobs. The attached form must
be used.
® L. DOCUMENTATION that the proposed road project and economic development are consistent with
any regional or metropolitan area long-range transportation plans in effect for the RISE project
location.
CERTIFICATION
To the best of my knowledge and belief, all information included in this application is true and accurate,
including the commitment of all physical and financial resources. This application has been duly authorized by
the participating local government(s). I understand the attached RESOLUTION(S) binds the participating local
governments to assume responsibility for adequate maintenance of any new or improved city streets or
secondary roads.
I hereby certify, under penalty of perjury, that any award of RISE funds; any subsequent letting of contracts for
design, construction, reconstruction, improvement or maintenance; or the furnishing of materials therefore; shall
not involve direct or indirect interest, prohibited by Iowa Code Section 15A.2, 314.2, 362.5 or 331.342, of any
state, county, or city official, elective or appointive. Any award of RISE funding or any letting of a contract in
violation of the foregoing provisions shall invalidate the award of RISE funding and authorize a complete
recovery of any funds previously disbursed.
I understand that, although this information is sufficient to secure a commitment of funds, a firm contract
between the applicant and the Department is required prior to the authorization of funds.
Representing the City of Dubuque
Signed:
Michael C. Van Milligen, City Manager
Typed Name and Title
Attested:
Signature in Ink
Jeanne Schneider, City Clerk
Typed Name and Title
Date Signed
March 17, 2008
Typed Date
Date Signed
March 17, 2008
Typed Date
Attachment A
RESOLUTION NO
A RESOLUTION ENDORSING THE SUBMISSION OF A REVITALIZE IOWA'S SOUND
ECONOMY (RISE) APPLICATION TO THE IOWA DEPARTMENT OF TRANSPORTATION
FOR THE CONSTRUCTION OF A CUL DE SAC SOUTH FROM CHAVENELLE ROAD TO
ACCESS LOTS IN THE DUBUQUE INDUSTRIAL CENTER WEST 3RD ADDITION.
Whereas, the City of Dubuque believes that economic development opportunities require
developable industrial land with adequate public infrastructure in order to retain and attract new
job creating businesses and industries to this community; and
Whereas, the City of Dubuque is developing approximately 49 acres of additional
industrial land located in the Dubuque Industrial Center West (lot 4, 5th addition); and
Whereas, certain lots within the development must be accessed by a cul de sac
extending south from Chavenelle Road; and
Whereas, the City is negotiating with Hormel Food Corporation to purchase 40 acres of
land to build a 327,000 square foot manufacturing facility that will create196 new jobs; and
Whereas, the Iowa Department of Transportation, through its Revitalize Iowa's Sound
Economy (RISE) Immediate Opportunity Project Funding, has monies available for the
development of public roadways to support immediate economic development opportunities.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the City of Dubuque hereby endorses the application to the Iowa
Department of Transportation for RISE Immediate Opportunity funding to provide roadway
access to development lots in the Dubuque Industrial Center West 3` Addition in support of the
construction of a new Hormel Foods Corporation manufacturing facility in the industrial park.
Section 2. That the City of Dubuque hereby certifies that the roadway improvements will
be dedicated to public use and will remain so dedicated to public use
and that G.O. Bond funds will be available to finance the City's portion of project costs.
Section 3. Lot 4 of the 5tf' Addition in the Dubuque Industrial Center West, currently is
only accessible by a dirt road. A paved street is essential to serve this site to accommodate the
proposed Hormel project.
Section 4. That the City of Dubuque hereby assumes responsibility for and ongoing
maintenance of these roadway improvements and ensures that the roadway will be adequately
maintained in the future.
Section 5. That the City Manager is authorized to sign, on behalf of the City Council, the
application for RISE funding.
PASSED, APPROVED and ADOPTED this 17th day of March, 2008.
ATTEST:
Roy D. Buol, Mayor
Jeanne F. Schneider, City Clerk
Attachment B
Economic Development Narrative
The construction of a new street in the Dubuque Industrial Center West to serve Lot 4 of the 5~ Addition is
essential to the City's immediate plans for economic development.
The City is currently negotiating with Hormel Foods Corp. to site a new 327,000 square foot processing
facility in the Dubuque Industrial Center West (on a portion of Lot 4 of the 5th Addition). The construction of
anew road in the park will allow the City to accommodate Hormel on a 39.73 acre site and also provide
access to another 7.5 acre site for a future development. The company has proposed to expand its Iowa
operations at the City's industrial park if the City can deliver a useable site.
Hormel Foods Corporation is a multinational manufacturer and marketer ofhigh-quality, brand-name food
and meat products for consumers throughout the world. The firm offers a wide variety of products, including
ham, bacon, sausage, franks, canned luncheon meats, stews, chili, hash, meat spreads, shelf-stable
microwave entrees, salsas and frozen processed foods.
The new facility will be a wholly-owned subsidiary of Hormel, as the company seeks to expand into the
*microtray* packaged foods market, a niche where demand is growing across the country. Raw material will
be shipped to Dubuque from other locations. Various recipes will be used to make ready-to-eat products for
the grocery shelf.
The company anticipates creating 196 jobs with the new facility in the first 2 years and additional jobs could
be added in future years. The proposed manufacturing facility will initially consist of 2 production lines with
capacity to be expanded to 4 production lines. The company also received a proposal from Moline, Illinois.
The Iowa Department of Economic Development has reviewed a competing proposal from Illinois and has
offered the company HQJP incentives to locate in Iowa.
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 its doors,
resulting 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.
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.
In summary, the emphasis is on the immediate need for a commitment of RISE funding. The immediate
impact will be the creation of 196 jobs. The project will also provide a private investment of over
$123,000,000 and a public investment of approximately $19,471,000.
Attachment B-1
~lormel
Foods
Corporate Office
February 27, 2008
David J. Heiar
Economic Development Director
City of Dubuque
50 W. 13th Street
Dubuque, IA 52001
Re: Dubuque Plant
Dear Mr. Heiar:
Hormel Foods Corporation
1 Hormel Place
Austin MN 55912-3680
On Wednesday, January 30, 2008, Hormel announced plans to construct a new 327,000 square
foot plant in Dubuque.
The site that we have selected is south of Chavenelle Road in the Dubuque Industrial Center
West. As we have discussed, our commitment to this $89M project and resulting 196 jobs is
conditioned on the City providing a public road to the site. Since we are planning to begin
construction on May 1, 2008, your assistance in facilitating this requirement improvement is
greatly appreciated.
If you have any questions, please feel free to contact me.
Sincerely,
Joseph L. Maccani, P.E.
Manger of Corporate Properties
Hormel Foods Corp.
1 Hormel Place
Austin, MN 55437
(507) 437-5409
jlmaccaniCc~hormel.com
/jlm
Attachment B-2
February 29, 2008
Dave Heiar
Economic Development Director
City of Dubuque
50 W. 13th Street
Dubuque, Iowa 52001
Dear Mr. Heiar:
GreaterDubuque
Please include this letter of support in your application to the Iowa Department of Transportation. Funding from
the RISE program will help to supply necessary road improvements to the Dubuque Industrial Center West. These
improvements are critical to the recruitment of Hormel Foods to our community. The 196 proposed jobs,
combined with Hormel's $89 million dollar capital investment, will not be possible without the RISE funding and
resulting new road.
The roadway will also provide access to adjoining land owned by the City of Dubuque that is primed for future
development.
What a great use of funds for the "Revitalization of Iowa's Sound Economy."
Sincerely,
~~~~
Rick Dickinson
Executive Director & COO
300 Main Street, Suite 120, Dubuque, Iowa 52001
www.greaterdubuque.org
e-mail gddc@greaterdubuque.org
phone 563.557.9049
fax 563.557.1059
Attachment C
Transportation Narrative
The proposed street project to access the proposed new Hormel plant on 39.73 acres south of Chavenelle Drive in
Dubuque Industrial Center West will generate truck and employee traffic upon opening that will increase with future
expansion of the plant. Hormel provided the following information:
• Immediate traffic upon opening (327,000 square foot facility)
Truck Traffic 15 trucks delivering raw goods to the site and 12 trucks of finished goods leaving the site,
3-5 smaller delivery trucks daily
200 Employees
• Ultimate build-out traffic (533,000 square foot facility)
Truck Traffic 30 trucks entering and 24 trucks exiting the site, 6-10 smaller delivery trucks daily
700 Employees
Using ITE Trip Generation, 7th Edition for the category Manufacturing (140) weekday trip generation 1.75X+246 trip
ends per employee, the projected design traffic from the Hormel facility would be 1,470 AATD, including 10.7%
trucks.
The same street that is required to serve the Hormel facility will also provide access to approximately 7.5 acres that
could support a building size of approximately 110,000 to 130,000 square feet, or about 25% of the size of the
Hormel facility. Prorating the same density of trip generation, this site would produce in the future an additional 370
AATD, including trucks.
The total projected design traffic count for this street and the intersection with Chavenelle Road would be 1,840
AATD.
The design hourly volume based on the ITE Manufacturing (140) p.m, peak hour of generator trip generation would
be 352 AATD, 48% entering, 52% exiting. We estimate the directional split of exiting traffic to be 40% westbound and
60% eastbound, or 73 AATD turning left and 110 AATD turning right. Based on the projected traffic volume on
Chavenelle Road, the generated volume would easily warrant separate right and left tum lanes. Also due to the
terrain in the industrial park, this will always be a tee intersection.
The proposed roadway project will include a 1580 foot street, 31 feet wide with a 66 foot ROW. The paving will be 9
inches of PCC. Immediate traffic will be 1535 ADDT from the Hormel operation increasing to 1915 over time with the
development of the adjacent lot and the planned expansion of Hormel's facility. Approximately 5.4% of the traffic is
anticipated to be large truck usage.
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Attachment F
Time Schedule
Street
Hormel
• Project approval at Iowa DOT April 7/8, 2008 meeting
• City Council sets bidding date: April 19, 2008
• Receipt of Bids: May 8, 2008
• Award of Construction Contract: May 19, 2008
• Begin construction -street grading: June 1, 2008
• Complete utility and street storm sewer construction: July 15, 2008
• Complete pavement for use by traffic: September 30, 2008
• Complete seeding, finishing, etc., project acceptance: October 30, 2008
• Begin Construction: May 2008
• Complete Construction: November 2009
Attachment G
Assurance of Funding
The City of Dubuque is committed to funding the remainder of the proposed roadway costs and so states in
the formal Resolution.
Attachment H
Non-Roadway Factors in Place
Factors intrinsic to the successful development of this site are in place from the City's perspective, including
zoning, site development and full public infrastructure.
Negotiations with the company to locate in Lot 4 of the 5th Addition in the Dubuque Industrial Center West
continue, conditioned on the City being able to provide public access to the site. No other lots in the
industrial park are large enough to accommodate this project size.
Hormel has met with representatives of the community college (NICC) to work on the job training
agreements. The company has secured financing and Board approval to move this project forward.
Attachment I
HORMEL FOODS CORP -Dubuque
Company Investment
Land Acquisition $1,000,000
Site Preparation $4,590,000
Building Construction $51,750,000
Mfg. Machinery & Equip. $29,952,600
Racking, Shelving, etc. $160,000
Computer Hardware $857,000
Computer Software $23,000
Furniture & Fixtures $100,000
Working Capital $31,800,000
Research & Development $106,000
Job Training $900,000
Subtotal $123,238,600
City Investment
Land grant $3,000,000
Non-RISE eligible street costs $271,000
10 year property tax rebate $9,000,000
Subtotal $12,271,000
State Financial Incentives requested
Program Estimated Value
New Jobs Credits $500,000
Job Training Funds $900,000
HQJP Tax Credits $4,400,000
HQJP Sales Tax Refund $1,400,000
Subtotal $7,200,000
Grand Total $142,709,600
Water, Sewer, Electricity, Natural Gas, Telephone are already in the Dubuque Industrial Center West.
Sewer is on site. A water main will be extended when the street is constructed. Street lights, fiber optic, and
street landscaping will also be provided by the City.
Form ?6000?
8-94wd
Attachment J RISE IMMEDIATE OPPORTUNITY APPLICATION
Roadway Project Description and Cost Estimate
(RISE-Eligible Items)
LEAD APPLICANT NAME: City of Dubuque Date: 2/29/08
ROAD PROJECT DESCRIPTION:
1840
Location: Dubuque Industrial Center West -Lot 4 of the 5`h Addition (Hormel Project)
Length (ft.): 1580 Pavement Width: 31' ROW Width: 66
Pavement Type: PCC Paving w/ integral curb Depth: 9"
TRAFFIC INFORMATION:
Present AADT (2010 ): 1470
Design Year AADT (2015 ):
COST ESTIMATE:
Item Description
Mobilization & Miscellaneous
Clearing & Grubbing
Evacuation, Class 10
12" Crushed Stone Base,
9" PCC Paving w/ Integral curb
Erosion Control
Curb backfill, topsoil, seed, mul
Traffic control, pavement marki
15" RCP, Class III, Class C bed
18" RCP, Class III, Class C bed
24" RCP, Class III, Class C bed
30" RCP, Class III, Class C bed
30" Concrete Apron w/trash gua
Riprap
Type 101-B Catch Basin
Type 104-B Catch Basin
Select Backfill, Storm
SUBTOTAL
Trucks: 10.7
Trucks: 8.7
Units & Unit Cost
1 LS Unit @ $15,000
1 AC Unit @ $400.00
7,600 CY @ $2.18
5,900 TON (a~ $12.92
6,500 SY @ $34.82
1 LS (c~ $7,650.00
2 AC @ $3,116.67
1 LS @ $2,870.00
371 LF @ $36.00
400 LF (a~ $40.00
452 LF @ $45.00
140 LF @ $60.00
1 EA @ $1,250.00
30 TON @ $20.00
6 EA @ $1,850.00
1 EA @ $2,800.00
1,223 LF @ $15.00
Engineering, Legal, Administration
Contingency
Total Cost
$15,000
$400
$16,600
$76,250
$226,350
$7,650
$7,480
$2,870
$13,356
$16,000
$20,340
$8,400
$1,250
$600
$11,100
$2,800
$18,345
$444,791
$66,719
$44,479
GRAND TOTAL $555,989
Note: If road project is in more than one jurisdiction, please prepare separate cost estimate forms for each
portion and submit with applications.
Please refer to next page
4
Attachment K
Each business involved should prepare a narrative addressing the following points. The
narrative should be attached to the application as "Item K".
A) A description and history of the business, including the location of company headquarters, all
current plants (both in-and out-of-state), and the number offull-time and part-time employees at
each location.
Hormel Foods Corporation is a multinational manufacturer and marketer of consumer-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.
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
B) Data supporting historical and projected growth potential.
Market Assessment
• Microwave Ready-to-eat Meals is a $500MM segment of the $7B Single-serve (SS) Ready Meals
Solutions market
• While Ready Meals Solutions market is mature and generally stagnant, Microwave segments is
growing at a double-digit rates, fueled consumers demand for speedy, portable, and satiating
meals
• Hormel®CompleatsT'" is the pioneer and market leader in the Microwave Tray sub-segments,
holding a 76% dollar market share of the category
• Hormel® CompleatsT"" is uniquely positioned to capitalize on growth opportunity due to Hormel's
strong brand name, heritage in quality meats, and technology leadership
Feasibility Study
• Nielsen Business Consulting Services conducted an independent assessment of 2012 Hormel®
CompleatsT"" volume potential in the context of the overall category growth, impact of marketing
efforts, new product introductions and brand extensions on growth potential
• Independent volume estimate results show the Hormel Compleats business growing to 145 million
pounds or about $430 million dollars by 2012 representing a 5 year CAGR of 19.3%.
Projected Profit and Loss Statement
2010 2011 2012
Tonna e 37,600,000 49,800,000 53,000,000
Gross Sales 110,920,000 146,910,000 156,350,000
Trade 10,806,240 13,356,360 13,504,400
Net Sales 100,133,760 133,553,640 142,845,600
Cost 64,014,000 85,631,100 91,690,000
Gross Margin 36,099,760 47,922,540 51,155,600
Frei ht/VVhse 4,786,480 6,324,600 6,725,700
SGA 7,027,440 9,287,700 9,889,800
Marketin Exp 5,959,600 7,963,020 8,374,000
Net Income Before
Taxes
18,326,240
24,347,220
26,166,100
C) The hourly wages and turnover rates for each current jobs classification.
Not Applicable
D) The hourly wages, whether full or part time, and expected turnover rates for each future job
created.
SUMMARY OF NEWLY CREATED JOBS FOR DUBUQUE PLANT
A B c D E
Job Title
Skills, Education, or Experience
# of
Created (C)
Estimated starting
Job Qualify?
Required Jobs °r
Retained (R) rate If E >
$20.68)
Plant Mgr 4 yr degree and/or 1 C $60
00 YES
related ex erience .
Production Supt 4 yr degree and/or 1 C $38
00 YES
related ex erience .
Mgr Plant Engineering 4 yr degree and/or 1 C $36
00 YES
related ex erience .
Human Resource Mgr 4 yr degree and/or 1 C $32
00 YES
related ex erience .
Plant Controller 4 yr degree and/or 1 C $32
00 YES
related ex erience .
Industrial Engineering Mgr 4 yr degree and/or 1 C $30
00 YES
related ex erience .
Quali & Process Control M r
~ g 4 yr degree and/or 1 C
$30
00
YES
related ex erience .
Maintenance Engineer 4 yr degree and/or 1 C $30
00 YES
related ex erience .
Purchasing Mgr 4 yr degree and/or 1 C $28
00 YES
related ex erience .
0&PC Supv I 4 yr degree and/or 1 C $25
00 YES
related ex erience .
Production Supv-Days 4 yr degree and/or 3 C $25
00 YES
related ex erience .
Maintenance Supv 4 yr degree and/or 2 C $25
00 YES
related ex erience .
Supv Sanitation 4 yr degree and/or 1 C $23
00 YES
related ex erience .
Production Supv-Nights 4 yr degree and/or 3 C $23
00 YES
related ex erience .
Relief Production Supv 4 yr degree and/or 2 C $21
00 YES
related ex erience .
Sr Electronic Tech 2 yr technical degree and/or 4+yrs 2 C $18
00 - $21
00 NO
related ex erience referred .
.
Electronic Tech 2 yr technical degree and/or 0-2 yrs 2 C $15
00 - $18
00 NO
related ex erience referred .
.
Office Clerical High School Diploma, GED or related 5 C $11
00 - $15
00 NO
ex erience referred .
.
Quali Control Auditors
~ High School Diploma, GED or related
14
C
$11
00 - $15
00
NO
ex erience referred .
.
Mechanics/Electricians 2 yr technical degree and/or related 12 C $13
00 - $17
00 NO
ex erience referred .
.
Plant Laborers Related ex erience referred 140 C $11.50-$13.50 NO
Total positions I 196 I ~ 21 ~
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 minimum 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.
There is no historical data at the Dubuque site to determine turnover rates.
E) A description of employment conditions, including an itemized list and dollar value per
employee of any job benefits, work environment, safety record, opportunity for advancement. etc
Employee Benefits
Total Annual Cost
Portion of Total Plan Provisions ,
(include deductibles
coinsurance %
Provided by the
(show on a per
Annual Cost Paid
* ,
,
office visit co-payments
annual out-of-
Business employee basis) by the Business ,
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
Medical/Health Annual out of pocket maximum $2,000
Insurance
Include in Include Include in Include 80/20 co-insurance to a maximum
Dental Insurance above in above above in calendar employer payment of $1,000,
above $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 lenses, $45 on frames. Benefit available
above 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 isself-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.
F) A list of any civil or criminal violations of state or federal law which the company has been
charged with or convicted of during the last five years. Please include the violation and
date, the agency which charged the violation, the outcome or resolution, and any penalties
or settlement terms.
See Attached Affidavit
G) Percentage of in-state suppliers.
Unknown at this time, still determining suppliers.
H) Iowa companies you expect to sell to which currently buy from non-Iowa companies and the
percentage of your sales that will fall into this category.
The product line will be distributed to grocery retailers throughout the county.
I) Expected impact on import substitution. (Import substitution means replacing inputs,
products or services previously provided by out-of-state firms or from out-of-state locations
with Iowa inputs, products or services.)
Current manufacturing facility in Atlanta cannot meet consumer demand.
J) Other Iowa companies that could be considered as your competitors.
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.
K) Required environmental permits.
~. Storm water permit for construction activity (State)
2. Waste water pretreatment authorization (City)
3. Air permits -various sources (State)
4. Storm water permit for industrial activity (State)
2. Briefly answer the following questions in the space provided.
A) Is the company willing to give hiring preference to Iowa residents, or residents within a 30
mile radius, for the jobs created as a result of this project? Please provide a written plan
describing the company's hiring procedure and priorities.
Yes, for all hourly positions. Hormel Foods values a stable work force interested in developing a long term
career with our company. With that in mind, we will fill these positions by seeking and preferring
candidates from the immediate recruiting area, whenever possible. To facilitate this process, it's our
intention to list all these open positions with Iowa Workforce Development.
The management staff will be filled from a combination of promotional transfers from other Hormel locations
and local hires. Having said that, Hormel Foods already extensively recruits the State of Iowa and its
numerous colleges and universities for its management openings.
B) If the company has, within three years of application for assistance, acquired or merged
with an Iowa corporation or company, has it made and will it continue to make agood-faith
effort to hire the workers of the merged or acquired company?
NIA
C) What percentage of the company's total operating expenditures (including wages and
salaries) will be spent within the state of Iowa?
80% not including raw materials. Actual raw materials have not yet been finalized.
D) Of the total dollar amount of annual sales, what is the expected percentage of out-of-state
sales?
90%-95%
E) Are any other state funds being requested for the road or economic development project? If
so, please list the source, amount requested, and purpose of funding.
No other State funds are being requested for the road. There are state incentives being requested to make
this project a reality. These incentives include:
Pr ram Estimated Value
New Jobs Credits $500,000
Job Trainin Funds $900,000
HQJP Tax Credits $4,400,000
HQJP Sales Tax Refund $1,400,000
Affidavit
State of Minnesota
County of Mower
I, Roland G, Gentzler, depose and say that 1 have examined the following s#afement and have found it to
the best of my knowledge to be accurate and true,
Hormel Foods Corporation has nat, within the last five years, violated sta#e or federal statutes, rules, and
regulations, including environmental and worker safety regulations, ar, if such violations have occurred, that
there were mitigating circumstances or such violations did not seriously affect public health or safety or the
environment.
I #urther depose that the signature below is my o/w/n proper signature.
Dated: Feb_ 22, 2008 ~ /
Signature
Subscribed and sworn to before me on
this .~.nd- day of {= e~ 2008
~~~.~ ~ _-,~-_ (Notary Public}
-i ~-u.t~rn COUnty
lJ3A SitrT}!
~-Y RibYC - Mfnr~sola
,`;y,,..:. hyrLbmti~fianExpi~esJatS1.2010 ~
Attachment L
EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION
A Regional Response to Local Needs ~
February 28, 2008
City of Dubuque
David Heiar
Economic Development Director
City Hall
50 West 13`h Street
Dubuque, Iowa 52001-4864
Dear Mr. Heiar:
I am writing on behalf of DMATS, expressing their support of the RISE application to
fund the connection between Chavenelle Rod and Lot 4 (the future Hormel development) in the
Dubuque Industrial Center West 5th Addition.
This project is consistent with the Dubuque Metropolitan Area Transportation Study
2031 Long Range Transportation Plan. Goal 2 of the 2031 LRTP is "to support economic
development in the tri-state area" as it is creating 180 jobs in the area. The second objective is
"to improve access to major job centers for all modes of transportation". The two lane road
connecting the 48.6 acres site addresses accessibility issues and plays a role in economic
development of the region.
Securing funds for this project would assist in furthering the economic development
goals for the DMATS region. Should you need any additional information, feel free to contact
me at 563-556-4166.
Sincerely,
Kelley Hut n Deutmeyer
Executive Director
PHONE (563) 556-4166 IOWA ONLY (800) 942-4648 FAX (563) 556-0348 E-MAIL eciaQecia.org WEB SITE www.ecia.org
• Dubuque Metropolitan Area Transportation Study • Eastern Iowa Regional Development Corporation
• Eastem Iowa Regional Utility Services System • Eastem Iowa Housing Authority • EC1A Business Growth, Inc.
Region 1 Employment and Training • ECIA Regional Planning Affiliation • Region 8 Regional Transit Authority
Suite 200
3999 Pennsylvania Avenue
Dubuque, IA 52002