CEBA Application_Morrison BrothersTO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Community Economic Betterment Account (CEBA) Application for
Morrison Bros. Co.
DATE: May 23, 2008
Economic Development Director Dave Heiar is recommending approval of a Community
Economic Betterment Account (CEBA) program application to the Iowa Department of
Economic Development on behalf of Morrison Bros. Co.
Morrison Bros.'s project consolidates and expands Dubuque operations on one site at
7th Street. The first phase is for a new expanded warehouse and receiving docks
attached to the current production facility. The next phase is for the main offices,
including Engineering and R&D Tech Center relocated from 24th St. The result will be a
new headquarters, R&D center, and a warehouse on campus with all Dubuque
production and shipping.
Morrison Bros. Co. intends to expand its operations in Dubuque. The Company will retain
97 jobs and create 10 new positions as a part of this expansion process.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
THE CITX OF Dubuque
I~UB E
1
Masterpiece on the Mississippi
2007
DATE: May 21, 2008
TO: Michael Van Milligen, City Manager
FROM: David Heiar, Economic Development Director ` J~
SUBJECT: Community Economic Betterment Account (CE A) Application for
Morrison Bros. Co.
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing
the submission of a Community Economic Betterment Account (CEBA) program application
to the Iowa Department of Economic Development on behalf of Morrison Bros. Co., a
manufacturer with operations in Dubuque. The CEBA application is attached.
BACKGROUND
Morrison Bros. Co. intends to expand its operations in Dubuque. The Company will retain
97 jobs and create 10 new positions as a part of this expansion process.
Morrison Bros. has over 1200 products used in the "petroleum marketing sector"
including motor fueling, aviation, agriculture, bulk handling and transportation, backup
power generation, and numerous industrial applications. Recent R&D focus has been
on biofuels and related equipment for alternate energy. Morrison Bros. also makes
products for fuel and water military applications, and ground water testing.
Morrison Bros.'s project consolidates and expands Dubuque operations on one site at
7th Street. The first phase is for a new expanded warehouse and receiving docks
attached to the current production facility. The next phase is for the main offices,
including Engineering and R&D Tech Center relocated from 24th St. The result will be
a new headquarters, R&D center, and a warehouse on campus with all Dubuque
production and shipping.
The CEBA application on behalf of the company will provide financial assistance to enable
the company's expansion in Dubuque. As required by the CEBA program, the application
requires a commitment of City funds to the project.
DISCUSSION
Morrison Bros. will commit to employ 10 new employees averaging over $40,000/yr and
insurance benefits. The Company will be investing approximately $3.8 million in
construction, computer equipment, furniture and fixtures, machinery, and research and
development.
To assist this project, Morrison Bros. has requested a forgivable CEBA loan of $40,000.
City assistance as public match for the CEBA application is required. A 10 year TIF rebate
estimated at $480,000 will be provided as local match. The company is also requesting
Enterprise Zone Benefits amounting to:
• Sales Tax Rebate $50,000
• Investment Tax Credit $290,000
• R&D Tax Credit $600,000
The Enterprise Zone Application is reviewed by the Enterprise Zone Commission at
their June 2nd meeting.
RECOMMENDATION
I recommend that the City Council authorize the submission of a CEBA application for a
$40,000 partially forgivable loan on behalf of Morrison Bros. with a commitment of local
matching funds.
This project is consistent with the City's goals to help local 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:\USERS1Adejong\CEBAWIorrison Bros\CEBA APP memo.doc
RESOLUTION NO. 190-08
A RESOLUTION AUTHORIZING THE FILING OF A COMMUNITY
ECONOMIC BETTERMENT ACCOUNT (CEBA) APPLICATION ON
BEHALF OF MORRISON BROS. CO.
Whereas, Morrison Bros. Co. 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 10 new jobs for area residents; and
Whereas, the Iowa Department of Economic Development's Community
Economic Betterment Account (CEBA) 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 CEBA
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 Community
Economic Betterment Account program on behalf of Morrison Bros. Co. is hereby
approved.
Section 2. That the local match of identified in the application consisting of TIF
rebates for increased building valuation estimated at $480,000 to the company is hereby
approved, subject to the CEBA 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 2nd day of Jury,/ 2008;
Roy D. viol, Mayor
Atte t: ll
Jeanne Schneider, City Clerk
F:\USERSWdejong\CEBA\Morrison BroslResolution approving CEBA app.doc
~~~~
Michael L.Tramontma, Director
l~f' ~ c h a n g i n g~ Iowa Department of Economic Development
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.iowalifechang nq.com
Updated: January 16, 2008
Instructions
1. All applicants shall complete Section A of the Application for Financial Assistance and attach o~ those section(s) for the
program(s) to which the applicant is applying.
Program Download and Complete
Community Economic Bettermeant 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.com/applications/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://www4.legis.state.ia.usllAChtml/261.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 will 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(c~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 Meetin A lication 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 Contribution and Payroll Report 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 bylaw, 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 and/or 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: Morrison Bros. Co.
Address: 325 East 24th St
City: Dubuque State: IA Zip: 52004-0238
Contact Person: Charlie Glab Title: President
Phone: 563-583-5701 Fax: 563-583-5028 Email: cglab@mchsi.com
2. SIC or NAICS Code: SIC # 3494
3. Federal ID Number: 42-0425010 State of Incorporation: Iowa
Does the Business file a consolidated tax return under a different tax ID number? ^ Yes ®No
If yes, please also provide that tax ID number:
4. Is the contact person listed above authorized to obligate the Business? ®Yes ^No
If no, please provide the name and title of a company officer authorized to obligate the Business:
5. If the application was prepared by someone other than the contact person listed above, please complete the following:
Name: Donna McCann Title: Accounting Manager
Organization: Morrison Brothers Co.
Address: 325 East 24th St
City, State, & ZIP Code: Dubuque, IA 52004-0238
Phone: 563-583-0632 x238 Fax: 563-583-5028 Email: dmccann@morbros.com
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 Sponsor
CEBA Cit or Count or Communi Colle a in which the Project Site is Located
EZ Local Enter rise Zone Commission
HQJC Cit or Coun 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 Cit or Count in which the Project Site is Located or Local Develo ment Entit
EDSA Cit or Coun in which the Project Site is Located
1. Sponsor Organization: City of Dubuque
Official Contact (e.g. Mayor, Chairperson, etc.): Roy D. Buol Title: Mayor
Address: 50 W. 13th Street
City, State & ZIP Code: Dubuque, IA 52001
Phone: Fax: 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: David J. Heiar Title: Economic Development Director
Address: 50 W. 13th Street
City, State & ZIP Code: Dubuque, IA 52001
Phone: (563) 589-4393 Fax: (563) 589-1733 E-mail: dheiar(a)cityofdubugue.org
If necessary, please list information on additional sponsors in an attachment.
Section A -Applicant & Project Information 4
Certification 8~ Release of lnformatlon
I hereby give permission to the Iowa Department of Economic Development (1DED) to research the Business' history, make
credit cheeks, contac# 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.
f understand that afi information submitted to IDED related to this application is subject to Iowa's Open record Law (Iowa Code,
Chapter 22},
l 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 afi 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.
l hereby certify that all representations, warranties, or statements made or famished to 1DED in connection with this application
are true and correct in all material respect. I understand that it is a criminal violation under Iowa law to engage in deception and
knowingly make, or cause to be made, directly or indirectly, a false statement in writing for the purpose of procuring economic
development assistance from a state agency or subdivision.
For the
Signature
Data
Charlie Glab, President
Name and Title (typed or printed}
Signature
Date
Rov D Buol Mayor
Name and Title (typed or printed)
Please use the following if more than one sponsor is required. jr'or example, use fhls if a signature from the local Enterprise
Zone ommission is required in addition to fhe signature from the Mayor of the sponsoring city.)
Signature Date
Richard Stein Chairoerson Entererise Zone Commission
blame 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 fnformetion 5
Project Information
Provide a brief description and history of the Business. Include information about the Business' products or services
and its markets and/or customers.
Established in Dubuque in 1855 as a boiler manufacturer. Moved into oil equipment in early 1900's
including tanks and accessories. Sold the tank fabrication business in 1970's. Today MBC has over
1200 products used in "petroleum marketing sector' (downstream from the refinery) including motor
fueling, avaition, agriculture, bulk handling and transportation, backup power generation, and
numerous industrial applications. Recent R&D focus on biofuels and related equipment for alternate
energy. MBC also makes products for fuel and water military applications, and ground water testing.
MBC has long-time competitors who are also international brands including OPW Fueling
Components from Cincinnati, Ohio (division of Dover Corp), Franklin Fueling in Madinson, WI
(division of Franklin Electric), and Clay and Baily Manufacturing in Kansas City.
2. Business Structure:
^ Cooperative ^ Corporation ^ Limited Liability Company
^ Partnership ®S-Corporation ^ Sole Proprietorship
State of Incorporation: Iowa
Identify the Business' owners.
Charles D. Glab
Vicki A. Glab
Adelaide M. Glab
Augustus D. Glab
Nicholas W. Glab
Patricia J. Glab
Samuel J. Glab
Zoa E. Glab
David S. Cushman
Ann M. Berendes
David W. Cushman
James G. Cushman
Mary G. Cushman
Thomas D. Cushman
William A. Cushman
John J. Freund
Ann T. Freund (Doyle)
Charles J. Freund
John D. Freund
Joseph W. Freund
Sara E. Freund
^ Not for Profit
Does a woman, minority, or person with a disability own over 50% of the Business? ^ Yes ®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.
Main headquarters at 325 East 24th St - (44 employees include (4) people in millwork division,
(4) people in Tree Farm division and (6) outside sales people) -Dubuque. Foundry and production
Section A -Applicant & Project Information 6
facility at East 7th St - (53 employees) -Dubuque. Maquoketa (The Maquoketa Co.) -production
facility -Jacobson Drive - (26 employees).
5. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and other
affiliated entities in this figure.) 123
6. Briefly describe the proposed project for which assistance is being sought. (Include project timeline with dates, facility
size, infrastructure improvements, proposed products/services, any new markets, etc.)
MBC operates out of two locations in Dubuque. This project consolidates and expands
Dubuque operations on one site. The first phase is for a new expanded warehouse and receiving docks
attached to the current production facility. The next phase is for the main offices, including
Engineering and R&D Tech Center relocated from 24th St. The result will be a new headquarters, R&D
center, and a warehouse on campus with all Dubuque production and shipping. The warehouse must
be completed in a timely manner because the current facility has to be temporarily relocated to allow
for demolition and construction. All the site work will need to be completed in the first phase with
construction possibly beginning in August 2008 and completed in 6-8 months. The second phase could
overlap this schedule but may not be completed until summer or fa112009.
Project Address (Street Address, City, and County): 430 E. 7th St., Dubuque, IA Dubuque County
8. Type of Business Project:
^ Startup ®Expansion of Iowa Company ^ New Location in Iowa
^ Relocation from another State
9. Please identify the management at the project location and his/her/their experience.
Charles Glab- been with MBC 25 years -President, Director of Engineering, VP of Sales. Master of Architecture from
University of Oregon
David S. Cushman- been with MBC 22 years -Executive Vice President, Superintendent. B.S. in Chemical
Engineering from Iowa State
John J. Freund -been with MBC 20 years - V.P. Manufacturing, Engineering Chief. B.S. Construction Engineering
from Iowa State
10. Has any part of the project started? ^ Yes ®No
If yes, please explain.
Section A -Applicant & Project Information
11 Project Budget:
Use of Funds Cost
Land Acquisition $p
Site Preparation $500,000
Building Acquisition $0
Building Construction $1,300,000
Building Remodeling $150,000
Mfg. Machinery & Equip. $500,000
Other Machinery & Equip. $p
Racking, Shelving, etc.* $50,000
Computer Hardware $125,000
Computer Software $40,000
Furniture & Fixtures $230,000
Working Capital $400,000
Research & Development $480,000
Job Training $5p,ppp
S
TOTAL 53,825,000
AMOUNT BUDGETED
Source A Source B Source C Source D Source E Source F Source G
$ $ $ $ $ $ $ $
$ $ $ $500,000 $ $ $ $
$ $ $ $ $ $ $ $
$ $ $ $1,300,000 $ $ $ $
$ $ $ $150,000 $ $ $ $
$40,000 $ $ $460,000 $ $ $ $
$ $ $ $ $ $ $ $
$ $ $ $50,000 $ $ $ $
$ $ $ $125>000 $ $ $ $
$ $ $ $40,000 $ $ $ $
$ $ $ $230,000 $ $ $ $
$ $ $ $400,000 $ $ $ $
$ $ $ $480,000 $ $ $ $
$ $50,000 $ $ $ $ $ $
$ $ $ $ $ $ $ $
$ $ $ $ $ $ $
$40,000 550,000 5 63,735,000 $ 5 5 $
Source H
~ Racking, Shelving and Conveyor Equipment used in Warehouse or Distribution Center Projects
Does the Business plan to lease the facility? ^ Yes ®No If yes, please provide the Annual Base Rent Payment (lease payment minus property taxes, insurance, and
operating/maintenance expenses) and the length of the lease agreement.
Source of Funds
Source A: IDED
Source B: NICC New Jobs Training
Program 260 E
Source C:
Source D: Business
Source E:
Source F:
Source G:
Source H:
TOTAL
PROPOSED FINANCING
Amount Form of Funds Rate Term Conditions 1 Additional Information
(Loan, Grant, In-Kind Donation, etc.) Include when funds will be disbursed; if loan, whether
payments are a level term, balloon, etc.
$40>000 IDED Direct assistance (50% $4,000 per
forgivable/50% zero interest loan) job
$50,000 $5>000 per As jobs are added
job
$3,735,000
$3,825,000
Section A -Applicant & Project Information 8
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: Company will seek to double their existing Iowa R&D credit from 6.5% to 13 percent
annually for 10 years. This is estimated to be an additional $60,000 annually. Estimated sales tax rebate is $50,000 for taxable items related to the construction of the
new facility/HQbuilding. Although project cost is estimated at $3.82 million, the company will seek an ITC of 10% (under EZ provisions) for an estimated $290,000.
It is also estimated that local assistance could total $480,000, in the form of an annual property tax rebate/TIF for the new valuation (10 year)
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: Please identify all employee benefits provided by and paid for (in full or in part) by the Business.
7~h Street IAM Benefits:
Employee Benefits Total Annual Cost Portion of Total Annual Plan Provisions
Provided by the (show on a per Cost Paid by the (Include deductibles, coinsurance %, office visit
Business
employee basis)
Business co-payments, annual out-of-pocket maximums,
face amounts, com an match, etc.
. 4
'` ' ' _ Em to ee Famil Em to ee Famil
; ,,
Deductible = 0; $20 office visit co-pay;
Medical/Health 5,110.20 10,680.00 80% 77% OPM = $1000/2500; $400 hosptial co-
insurance
pay; 10/20 drug card; $75 ER co-pay
$25 deductible; $1500 OPM
Dental Insurance 364.20 709.44 100% 100% single/family. Class 1 = 80% no
per labor per labor deductible; Class 2 & 3 = 50%; Class 4
agreement agreement = 50% with $10001ifetime max.
Cost included with medical. $20
Vision Insurance vision exam co-pay; once per year
under age 18; every other year if over
a e 18.
$20,000 life/ADD per labor agreement
Life Insurance 72.00 100%
$345 weekly benefit; 26 week
Short Term Disability varies 100% maximum per year; 3 day waiting
(STD) period for illness
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? ® Yes ^ No
If yes, please indicate the amount contributed on a per employee basis by the Business to the plan. For 401(k) plans, please
provide information on the company match and indicate the average annual match per employee (show average as a
percentage of salary).
Company contributes $1.30 per hour to union pension plan for every hour worked each week, maximum of 40
hours per week. 401(k) plan is available for employee deferrals, but there is no company match.
Does the Business offer aprofit-sharing plan? ^ Yes ® 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.
Does the Business offer child care services? ^ Yes ® No
Child care services include child care services on-site at the facility in which the project will occur oroff-site child care
subsidized by the business at the rate of 50% or more of the costs incurred by an employee.
Section A -Applicant & Project Information 10
Employee Benefits: Please identify all employee benefits provided by and paid for (in full or in part) by the Business.
Foundry GMP Benefits
Employee Benefits Total Annual Cost Portion of Total Annual Plan Provisions
Provided by the (show on a per Cost Paid by the (Include deductibles, coinsurance %, office visit
Business
employee basis)
Business co-payments, annual out-of-pocket maximums,
face amounts, com an match, etc.
Em to ee Famil Em to ee Famil
~-
Deductible = 0; $20 office visit co-pay;
Medical/Health 4714.68 9853.80 79% 79% OPM = $1000/2500; $400 hosptial co-
insurance
pay; 15/30 drug card; $75 ER co-pay
$25 deductible; $1500 OPM
Dental Insurance 364.20 709.44 100% per 100% per single/family. Class 1 = 80% no
labor labor deductible; Class 2 & 3 = 50%; Class 4
agreement agreement = 50% with $10001ifetime max.
Cost included with medical. $20
Vision Insurance vision exam co-pay; once per year
under age 18; every other year if over
a e 18.
$23,000 life/ADD per labor agreement
Life Insurance 82.80 100%
$345 weekly benefit; 26 week
Short Term Disability Varies 100% maximum per year; 3 day waiting
(STD) based period for illness
upon
claims
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? ® Yes ^ No
If yes, please indicate the amount contributed on a per employee basis by the Business to the plan. For 401(k) plans, please
provide information on the company match and indicate the average annual match per employee (show average as a
percentage of salary).
Company contributes $1.30 per hour to union pension plan for every hour worked each week to a maximum of
40 hours per week. Company 401(k) is available for employee deferrals, but there is no company match.
Does the Business offer aprofit-sharing plan? ^ Yes ® 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.
Does the Business offer child care services? ^ Yes ® No
Child care services include child care services on-site at the facility in which the project will occur oroff-site child care
subsidized by the business at the rate of 50% or more of the costs incurred by an employee.
Section A -Applicant & Project Information 11
Employee Benefits: Please identify all employee benefits provided by and paid for (in full or in part) by the Business.
General employee & Maquoketa benefits.
Employee Benefits Total Annual Cost Portion of Total Plan Provisions
Provided by the
(show on a per
Annual Cost Paid o
(Include deductibles, coinsurance /o, office visit
Business employee basis) by the Business* co-payments, annual out-of-pocket maximums,
face amounts, com an match, etc.
Em to ee Famil Em to ee Famil
Deductible $750/1500; $10 office co-
Medical/Health 3302.52 6902.16 74% 73% pay; OPM 2500/5000; 10/30 drug card;
Insurance 80/20 coinsurance
$25 deductible; $1500 OPM
Dental Insurance 404.52 783.60 100% 100% single/family. Class 1 = 80% no
deductible; Class 2 & 3 = 50%; Class 4
= 50% with $10001ifetime max
Cost included with dental. Exam and
Vision Insurance 100% 100% one pair glasses or contacts (stipends)
covered once per year if under age 18,
otherwise every other year.
100% of annual salary; adjusted
Life Insurance $0.30/$1000 100% annually on 2/1; maximum of
in coverage $100,000; group term life/ADD
70% of salary for a maximum of 26
Short Term Disability Varies 100% weeks per year; 3 day waiting period
(STD) based upon for illness
claims
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? ® Yes ^ No
If yes, please indicate the amount contributed on a per employee basis by the Business to the plan. For 401 (k) plans, please
provide information on the company match and indicate the average annual match per employee (show average as a
percentage of salary).
3% safe harbor 401(k) plan; company contributes 3% to all eligible employees (based upon salary) irregardless
of employee's deferral percentage.
Does the Business offer aprofit-sharing plan? ^ Yes ® 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.
Does the Business offer child care services? ^ Yes ® No
Child care services include child care services on-site at the facility in which the project will occur oroff-site child care
subsidized by the business at the rate of 50% or more of the costs incurred by an employee.
Section A -Applicant & Project Information 12
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.
MBC competitors are all outside Iowa. OPW Fueling Components,
Cincinnati, Ohio a division of Dover Company of New York City.
Franklin Fueling Systems, Madison, Wisconsin a division of Franklin
Electric. Emco Wheaton Retail Corporation, Wilson, North Carolina.
Clay and Bailey Mfg. Co., Kansas City, Missouri. Universal Valve Company Inc., Elizabeth, New Jersey.
14. Will any of the current Iowa employees lose their jobs if this project does not proceed in Iowa?
^ Yes ® No
If yes, please explain why and identify those jobs as "retained jobs" in the following question.
Section A -Applicant & Project Information 13
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.
Job Title Skills, Education, or Experience
Required Number of
Jobs Retained (R) or
Created C Starting or Current Wage
Rate
Year 1 of the Project
R&D Bach de ree + experience 1 C $60,000.00
Office Bach de ree and/or experience 1 C $50,000.00
Production Support De ree and/or erience 1 C $27,000.00
Manufacturin Operator Tech De ree and/or experience 1 C $27,000.00
Year 1 Subtotal 4
Year 2 of the Project
R&D Bach degree + experience 1 C $60,000.00
Product Manager Bach de ree + experience 1 C $70,000.00
Manufacturing Operator Tech Degree and/or experience 1 C $27,000.00
Year 2 Subtotal 3
Year 3 of the Project
Sales/Mkt Bach de ree and/or experience 1 C $30,000.00
Toolmaker Tech de ree + experience 1 C $38,000.00
Manufacturing Operator Tech Degree and/or experience 1 C $27,000.00
Year 3 Subtotal 3
Total Number of Retained Jobs:
Total Number of Created Jobs: 10
Section A -Applicant & Project Information 14
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. 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. McKesson Corporation also announced the relocation of 80
IT positions from its Dubuque office to Atlanta, GA.With these plant closings and layoffs many qualified
workers are in need of different career opportunities. Eagle Windows announced they will by laying off
90 employees in May 2008. John Deere also announced in May 2008 that they will be laying off 34
employees.
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 will have a positive impact on the local and state tax revenue. The estimations for increased
taxes are as follows:
• State Corporate Income Tax - $630,000
• State Sales and Use Tax - $50,000
• Local Real Estate Tax - $320,000
• Local Option Sales and Use Tax - $20,000
No public costs will need to be incurred related to this business expansion. Local Tax-Increment Financing will be
used to assist the project financially.
c) impact the proposed project will have on current employees, including the potential for increased skills and wages;
and
If the Department of Economic Development does provide assistance, the new employees will be challenged with
increased responsibility, job skills, and advanced personal growth with a result of more job security and growth
opportunities.
d) impact the investment will have on the ability of the business to expand, upgrade, or modernize its capabilities.
Impacts:
• Consolidate Research & Development. New products offer the most potential for growth.
• Warehouse planned to accommodate expansion of product line and storage of raw materials.
• New receiving dock will make inventory handling more efficient and increase capacity for current
shipping.
• New corporate headquarters will centralize office functions to one location with a modern layout and
image for efficiency and to attract new talent.
17. Is the Business actively considering locations outside of Iowa? ^ Yes ®No
If yes, where and what assistance is being offered?
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 and/or 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.
^ 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
Section A -Applicant & Project Information 15
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.
What measures were analyzed to determine the amount and form of assistance needed?
Consolidation costlbenefit study in 2003/project cost estimates.
19. What amount of state assistance is requested based on the above-identified need? $980,000
IDED CEBA Award $40,000 (50% Forgivable Loan / 50% Loan)
Sales Tax Rebate $50,000
ITC $290,000
R&D Tax Credit $600,000
What type/form of assistance is preferred (e.g. loans, forgivable loans, tax incentives, etc.)?
CEBA loans, forgivable loans, Enterprise Zone Benefits
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 Phis application and determine, based on the proposed project and available
program funds, which financial 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 & Project Information 16
21. Fiscal Impact Ratio Information -Business Taxes
IDED is required fo calculate the fiscal impact on state and local government investments in Phis project. Data from other parts
of the application will be combined with the estimates requested below to calculate the required return on investment
information.
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 project 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* $126,000 $126,000 $126,000 $126,000 $126,000
State Business Sales and Use Tax $25,000 $25,000 $0 $0 $0
* Insurance Companies: Provide State Insurance Premium Tax
Local Business Taxes Year 1 Year 2 Year 3 Year 4 Year 5
Local Real Estate Property Tax $64,000 $64,000 $64,000 $64,000 $64,000
Local Option Sales Tax $10,000 $10,000 $0 $0 $0
Section A -Applicant & Project Information 17
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/process development, 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
httq://www.iowalifechanging.com/applications/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 httq://www.iowalifechanging.com/applications/bus_ dev/sampleaffidavit.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 18
i owA
lij%~ changing
Application Checklist
For each section the Business is required to submit, please indicate with a '/' that items needed for that section are included when submitting the application to IDED.
If an item listed is not included, please indicate in the corresponding box the date on which IDED can expect to receive it or explain in the space provided below why it has
not been included:
Section A Section B Section C Section D Section E Section F Section G
CEBA EZ HCJC EVA VAAPFAP EDSA
Original plus 1 Copy
Signed by the Business
Signed by the Sponsor(s)
Business Plan w/ 3-year Projections
Quarterly Employer's Contribution and Payroll Reports
Current Payroll Report
AfFdavit re: Violations
P/L statements & Balance Sheets (3 years)
Current YTD Financials
Aged Accounts Receivables
Aged Accounts Payable
Schedule of Other Debts
Resolution from Sponsor
Legal Description of Protect Site
Map
Meeting l Public Hearing Notice
Meeting Minutes
Technical Assistance Budget
Bids, Quotes, & Estimates
Employer Certification Form
Commitment Letters
Comm. Development & Housing Needs Assessment
Assurances Page
Applicant/Recipient Disclosure/Update form
Explanation for Items Not Included:
NIA NIA NIA N/A NIA NIA
N/A NIA N/A NIA N/A NIA
N/A NIA NIA NIA NIA NIA
N/A NIA N/A NIA NIA NIA
NIA NIA NIA NIA NIA N/A
N/A N/A NIA N/A N/A NIA
~ N/A N/A N/A NIA N/A N/A
I N/A N/A NIA N/A N/A N/A
N/A N/A N/A N/A NIA N/A
N/A N/A N/A NIA NIA N/A
N/A NIA NIA NIA NIA N/A
N/A NIA N/A N/A
N/A N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A ( N/A N/A NIA
N/A N/A NIA NIA N/A
N/A NIA N/A N/A N/A NIA
NIA NIA N/A NIA N/A N/A
N/A NIA NIA NIA N/A N/A
N/A N/A NIA N/A N/A N/A ~
N/A NlA N/A N/A NIA N/A ~
N/A N/A N/A NIA NIA N/A ~
~ N/A N/A NIA N/A N/A N/A ~
Application Checklist
IOWA
life ~ changing°
2.
3.
4.
Which program component is the Business applying for?
® Small Business Gap Financing
^ New Business Opportunity
^ New Product Development
® Modernization Component
Funding Information:
Total Amount Requested: $ 40,000
Loan Amount: $ 20,000
Forgivable Loan Amount: $ 20,000
Section B -CEBA
See Chapter 53, Section 261 in the CEBA Administrative Rules for maximum funding amounts. The CEBA program is
not designed to provide 100% funding for any project and limits assistance based on the type of project submitted.
Security:
® Corporate Guaranty ^
^ UCC Financing Statement ^
^ Irrevocable Letter of Credit ^
^ Personal Guarantee ^
All awards secured by Personal Guarantees will require a
guarantors, which must be attached to the application.
Surety Bonds
Mortgage on Real Estate
Escrow Account
Other:
current financial statement from each of the personal
Does the business certify that at least 10% of the positions to be created will be made available to qualified Promise
Job Participants? ®Yes ^ No
5. Are underground tanks (whether or not in current use) for the storage of petroleum products, agricultural or other
chemicals, waste oil or other liquid waste or any other inflammable, corrosive, reactive or explosive liquid or gas
located on the project site?
® Yes ^ No If yes, please explain: An old site survey indicates locations for three small
underground fuel oil tanks and one large underground water tank within the limits of the project. Two other small fuel
oil tanks are also indicated outside the project area. Accuracy of this survey and status of these tanks is unknown.
Bulk storage of fuel oil and water has not been used in these locations for many years.
Will the Business be storing above-ground, on or about the project site, in tanks or otherwise, any liquid or gas (as
described above) or any inflammable, corrosive, reactive or explosive solid, for any length of time or any purpose?
^ Yes ®No If yes, please specify:
Will the Business be treating, transporting or disposing of any liquid, gas, or solid (described above) either on or about
the project site or at a landfill or other treatment facility or upon any public street or highway, or on any waterway or
body of water, or in any aircraft?
Section B -CEBA 12/21/2006
^ Yes ® No
If yes, please specify the substance and what the Business will be doing with it.
6. Does the Business generate solid or hazardous waste? ®Yes ^ No
If yes, please describe and provide a copy of the Business' solid and hazardous waste reduction plans.
Solid non-hazardous Foundry sand to Dubuque Landfill as cover.
7. Does the project include the initial construction of any building or facility? ®Yes ^ No
If yes, does the local jurisdiction have a local building code in place which it enforces through a system of plan reviews
and inspections? ®Yes ^ No
Attachments
Please attach the following documents:
B3 Community resolution authorizing the submission of the application
Section B - CEBA 12/21 /2006 2
IOWA
life ~ changing•
Section C -Enterprise Zone
Program
1. In which Enterprise Zone will this project occur (include the zone's name, number, size in acres, and date certified)?
Zone EZ-1A, 1774 Acres, certified (amended) November 21, 2007
2. Please list any additional requirements adopted by the local Enterprise Zone Commission and how the Business will
meet each requirement.
Attachments
Please attach the following documents:
C1 Legal description of the business site on which the project will occur
LOTS 1 THRU 15, A THRU F, 1-1-17, 1-16, 2-1-18, 2 OF LOTS 20 THRU 27, 3 OF LOTS 28 THRU 32
BLK 17, LOTS 1 THRU 5 BLK 16, LOTS 7 THRU 14, LOT 1 OF LOTS 4 THRU 6 BLK 13 ALL IN
DUBUQUE HARBOR IMPROVEMENT CO ADD 430-440 EAST 7TH ST
C2 Detailed map (no larger than 8"x14") showing the business site in relation to the boundaries of the certified Enterprise
Zone
The local Enterprise Zone Commission should submit the following:
C4 Proof that the local Enterprise Zone Commission meeting, during which this application was approved, was open to the
public (i.e. public notice which was published and/or posted)
C5 Meeting minutes from the local Enterprise Zone Commission meeting, during which this application was approved
C6 Resolution by the local Enterprise Zone Commission approving this application
Section C - EZ 2!4/2005
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11 Project Budget:
~ AMOUNT BUDGETED
Use of Funds Cost Source A I Source B Source C I Source D Source E Source F Source G Source H
Land Acquisition $0 ~ $ ~ $ ~ $ I $ ~ $ ~ $ ~ $ ~ $
Site Preparation $500,000 ~ $ I $ ~ $ ~ $500,000 ~ $ ~ $ ~ $ ~ $
Building Acquisition $0 ~ $ l $ ~ $ I $ ~ $ ~ $ ~ $ ~ $
Building Construction $1,300,000 $ ~ $ I $ I $1,300,000 I $ ~ $ ~ $ ~ $
Building Remodeling ~ $150,000 $ I $ I $ I $150,000 ~ $ ~ $ ~ $ ~ $
Mfg. Machinery & Equip. I $500,000 ~ $40,000 ~ $ ~ $ ~ $460,000 ~ $ ~ $ ~ $ ~ $
Other Machinery & Equip. $0 ~ $ ~ $ ~ $ ~ $ ~ $ I $ j $ j $
Racking, Shelving, etc." $50,000 ~ $ I $ I $ I $50,000 I $ I $ I $ I $
Computer Hardware ~ $125,000 $ I $ I $ I $125,000 ~ $ ~ $ ~ $ ~ $
Computer Software I $40,000 $ I $ I $ I $40,000 ~ $ I $ I $ I $
Furniture & Fixtures $230,000 $ ~ $ ~ $ ~ $230,000 ~ $ ~ $ ~ $ ~ $
Working Capital $400,000 $ ~ $ ~ $ ~ $400,000 ~ $ ~ $ ~ $ ~ $
Research & Development $480,000 ~ $ I $ I $ I $480,000 ~ $ I $ I $ I $
Job Training $50,000 $ I $50,000 I $ ~ $ ~ $ ~ $ ~ $ ~ $
$ $ I$ I$ I$ I$ I$ I$ I$
$ $ $ $ $ $ $ $
TOTAL $3,825,000 $40,000 $50,000 $ $3,735,000 $ $ $ $
~ Racking, Shelving and Conveyor Equipment used in Warehouse or Distribution Center Projects
Does the Business plan to lease the facility? ^ Yes ®No If yes, please provide the Annual Base Rent Payment (lease payment minus property taxes, insurance, and
operating/maintenance expenses) and the length of the lease agreement.
PROPOSED FINANCING
Source of Funds Amount Form of Funds Rate Term Conditions 1 Additional Information
(Loan, Grant, In-Kind Donation, etc.) Include when funds will be disbursed; if loan, whether
payments are a level term, balloon, etc.
Source A: IDED $40,000 IDED Direct assistance (50% $4,000 per
forgivable/50% zero in~~."~ loan) job
Source B: NICC New Jobs Training $50,000
$5,000 per As jobs are added
Program 260E job
Source C: ~ $
Source D: Business ~ $3,735,000 I I I
~ Source E: I$ I I I I
Source F: I$ I I ~ ~
Source G: I$ I I ~ ~
Source H: I $ ~ I
TOTAL I $3,825,000
Section A -Applicant & Project Information 8