Morrison Brothers - Close Out of Forgivable Loan from IEDA Copyrighted
May 15, 2017
City of Dubuque Consent Items # 12.
ITEM TITLE: Morrison Brothers - Close Out of Forgivable Loan from
Iowa Economic Development Authority
SUMMARY: City Manager recommending that the City Council receive
and file the documents from the Iowa Economic
Development Authority showing the terms of a forgivable
loan from the Iowa Economic Development Authority to
Morrison Brothers have been satisfied and the loan has
been closed out by the State.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
Morrison Brothers Close Out of Forgivable Loan from City Manager Memo
IEDA-MVM Memo
Staff Memo Staff Memo
Close Out Documents from IEDA Supporting Documentation
THE CITY OF Dubuque
DUB E i"
Masterpiece on the Mississippi 2007.2012.2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Close Out of Forgivable Loan #08-CEBA-05 for Morrison Brothers
DATE: May 10, 2017
Economic Development Director Maurice Jones recommends the City Council receive
and file the documents from the Iowa Economic Development Authority showing the
terms of a forgivable loan from the Iowa Economic Development Authority to Morrison
Brothers have been satisfied and the loan has been closed out by the State.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
Dubuque Economic Development Department
THE CITY OF 50 West 13th Street
All-Am,ftlily Dubuque,Iowa 52001-4864
DUB3 &kE1 I Office(563)589-4393
TTY(563)690-6678
® http://www.cityofdubuque.org
Masterpiece on the Mississippi 200.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Close Out of Forgivable Loan #08-CEBA-05 for Morrison Brothers
DATE: April 28, 2017
INTRODUCTION
The purpose of this memorandum is to inform the Manager and City Council that the
terms of a forgivable loan from the Iowa Economic Development Authority to Morrison
Brothers have been satisfied, and the loan has been closed out by the State.
BACKGROUND
In 2008, Morrison Bros. Co. applied for a Community Betterment Account (CEBA) loan
from the State of Iowa for the expansion of its operations and addition of well-paid jobs,
with the support of the City of Dubuque.
DISCUSSION
Morrison Bros. was awarded a $40,000 loan, with $20,000 of that amount being
forgivable if the contract requirements were met.
Morrison Bros. met the job-creation requirements as stipulated, and the Iowa Economic
Development Authority has informed the City that the forgivable loan has been closed
out.
RECOMMENDATION/ ACTION STEP
I recommend the Council receive and file the documents from the Iowa Economic
Development Authority closing out the Funding Agreement#08-CEBA-05.
IOWA ECONOMIC DEVELOPMENT AUTHORITY
200 East Grand Avenue | Des Moines,Iowa' 50309USA | Phone:51u��� F,., ,,J`1WA0
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iovmamoononmiodoveopnment'com ��������!� �_�� .cors0rn1 !r_
April 21, 2017 1� �P� �� �� |�� ��
.' ,. . � , =^ ." ��
Ms. Donna McCann, Accounting Manager
yNonioonBro�� Co� Ci�6/
57OEast 7th Street '
P.(�. Box 338 ~~��`��~' " ^
Dubuque, IA 52801
RE: Project Maintenance Close-out
Master Contract#PO8OGK801734
Funding Agreement#U8-CEBA-O5
Dear Ms. McCann:
|would like to congratulate you on successfully maintaining yourjob obligations through the
maintenance period inregard bothe above referenced project. The Authority's review nfpayroll
documents t yourfaoi|itvindioateothatthejobarequinndtobemaintoinedbytheCummunity
Econom'ic Betterment Account(CEBA) Program have met or exceeded expectations.
In summary:
1. The Project Completion Date was December 31, 2014 with a Project Maintenance Date
ofDecember 31. 2O16.
2. The Contract required the creation of 6 new full-time equivalent(FTE)jobs above a
base employment of 82 which must be maintained through the Job Maintenance
period. The Business met its maintenance obligation with atote| employment ofO1
full-time employees.
3. The Contract required otleast 75jobs paid anhourly wage of$14.21 per hour or higher.
Payroll records verified QOjobs met the wage obligation.
4. The Business maintained the Benefits required bythe contract.
Because the contract obligations have been met through the Job Maintenance Period, this contract
is now closed and there will be no further reporting requirements for the CEBA Contract. All criteria
has been met for forgiveness ofthe forgivable loan, therefore the Authority has now closed the
project and hereby forgives the$20,000 forgivable loan portion of this award. In addition,
because the loan has been paid in full, please find enclosed the original canceled promissory notes
and the canceled Certificate of Deposit(copy) and Collateral & Control Agreement. Please accept
released.this letter as written notice that the original Certificate of Deposit can now be | will return
the original canceled promissory notes tothe City ofDubuque, as well.
We would like to express our thanks for your assistance in monitoring and closing out this project,
and we look forward to working with you on future economic development projects. Please donot
hesitate tncontact meatG15-725-3O41 or should you have any
questions.
Sincerely,
KrisUSteil
Project Assistant
Compliance Team
/he
Cc DouoGbUinge Dubuque Bank and Trust Company
Mayor Roy Buo[ City nfDubuque
|EDAAncounbng
|EDACompliance file
Governor Terry E.Branstad I Lt.Governor Kim Reynolds I Director Debi V.Durham
��\ /
CEBA Funding Agreement Exhibit Al- Community's Promissory Note (Fcg,rgivable Loan)
DINN L
PROMISSORY NOTE
DATE_a,: �1 K S .
FOR VALUE RECEIVED, the undersigned promises, in the event
this Forgivable Loan is not forgiven, to pay to the order of the IOWA DEPARTMENT
OF ECONOMIC DEVELOPMENT, at its office at 200 East Grand, Des Moines, Iowa
50309, the sum of Twenty Thousand Dollars ($20,000)with interest at a rate of 0 %
unless an Event of Default occurs, in which case interest shall be at the default rate set
forth in Contract number P0806MO1734 ("Contract"). The terms and conditions by which
forgiveness of this Loan may occur are as specified in the Contract. !�
I
Interest shall first be deducted from the payment and any balance shall be applied on
principal. Upon default in payment of any interest, or any installment of principal, the
whole amount then unpaid shall become immediately due and payable at the option of the
holder.
u,
The undersigned, in case of suit on this note, agrees to pay on demand all costs of
collection, maintenance of collateral, legal expenses, and attorneys' fees incurred or paid
by the holder in collecting and/or enforcing this Note on default.
Ali
This note shall be secured by the Security specified in the Contract.
Makers, endorsers and sureties waive demand of payment,notice of non-payment,protest
and notice. Sureties, endorsers and guarantors agree to all of the provisions of this note,
i
and consent that the time or times of payment of all or any part hereof may be extended
after maturity, from time to time, without notice.
ADDRESS: City of Dubuque
50 West 13th Street 1 I
Dubuque, IA 52001
BY:
Roy uol,Mayor
ATTES�ignature) tl
Date
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CEBA Funding Agreement Exhibit Al- Community's Promissory Note (Lean)
W
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PROMISSORY NOTE
DATE
FOR VALUE RECEIVED, the undersigned promises to pay to the order
of the IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT, at its office at
200 East Grand, Des Moines, Iowa 50309, the sum of Twenty Thousand Dollars
($20,000) with interest thereon at Zero Percent (0%) to be paid as follows:
li
Sixty (60)monthly payments of$333.33 beginning on the first day of the fourth I
month from the date Award funds are disbursed. Final payment may vary depending
upon dates payments are received.
i
Interest shall first be deducted from the payment and any balance shall be applied on
principal.
Upon default in payment of any interest, or any installment of principal,the whole j
amount then unpaid shall become immediately due and payable at the option of the
holder.
The undersigned, in case of suit on this note, agrees to pay on demand all costs of
collection, maintenance of collateral, legal expenses, and attorneys' fees incurred or paid
by the holder in collecting and/or enforcing this Note on default.
This note shall be secured by the Security specified in the Contract.
i
Makers, endorsers and sureties waive demand of payment,notice of non-payment,protest
and notice. Sureties, endorsers and guarantors agree to all of the provisions of this note, ry
and consent that the time or times of payment of all or any part hereof may be extended
after maturity, from time to time, without notice. i
ADDRESS: City of Dubuque
50 West 13th Street
Dubuque, IA 52001
BY: r�
Roy D uol,Mayor
ATTEST
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