Flexsteel Industries, Inc._State of Iowa Application for Business Financial Assistance Copyrighted
May 15, 2017
City of Dubuque Action Items # 2.
ITEM TITLE: State of Iowa Application for Business Financial Assistance
- Flexsteel Industries, Inc.
SUMMARY: City Manager recommending authorization to submit an
Iowa Economic Development Assistance Application by
Flexsteel Industries, Inc. to the Iowa Economic
Development Authority.
RESOLUTION Authorizing the filing of an application for
State Business Financial Assistance on behalf of Flexsteel
Industries, Inc.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
State of Iowa Application for Business Financial City Manager Memo
Assistance for Flexsteel-MVM Memo
Staff Memo Staff Memo
Application to State Supporting Documentation
Resolution Resolutions
THE CM OF Dubuque
AAA-A m c
DUB E 11 1r
Masterpiece on the Mississippi -2012I
rP PP �oo� .zo13
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: State of Iowa Business Financial Assistance Application for Flexsteel
Industries, Inc.
DATE: May 10, 2017
Economic Development Director Maurice Jones recommends City Council authorization
to submit an Iowa Economic Development Assistance Application by Flexsteel
Industries, Inc. to the Iowa Economic Development Authority.
Flexsteel is proposing to construct a 250,000 square foot $25 million new manufacturing
facility in Dubuque Industrial Center South. Assistance from the State of Iowa, in the
amount of$1 million, is being sought for the demolition and remediation of Flexsteel's
100-year-old manufacturing facility located on Jackson Street. The application also
includes an estimated $293,200 Investment Tax Credit and an estimated $750,000
Sales, Services & Use Tax Refund on the new building construction in Dubuque
Industrial Center South.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Tim Hall, Flexsteel SVP Finance, CFO & Secretary
Hilary Stubben, Flexsteel In-House Corporate Counsel
Jay Wickham, Chair, Dubuque County Board of Supervisors
Ralph Potter, Dubuque County Attorney
Doug Horstmann, Chair, Dubuque Initiatives Board of Directors
Flint Drake, Attorney, Drake Law Firm — Representing Dubuque Initiatives
Rick Dickinson, Greater Dubuque Development Corp. President & CEO
Dan McDonald, Greater Dubuque Development Corp.
Vice President of Existing Business
David Lyons, LDDC, Sustainable Innovation Consultant
Crenna Brumwell, City Attorney
Barry Lindahl, Senior Counsel
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
Jill Connors, Economic Development Project Coordinator
2
Dubuque Economic Development Department
THE CITY OF 50 West 13th Street
All-America City Dubuque,Iowa 52001-4864
D U B3 E1 ' 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: State of Iowa Business Financial Assistance Application for Flexsteel
Industries, Inc.
DATE: May 9, 2017
INTRODUCTION
This memorandum presents for City Council review and approval a resolution
authorizing the submission of an Iowa Economic Development Assistance Application
by Flexsteel Industries, Inc. to the Iowa Economic Development Authority (IEDA).
BACKGROUND
Founded in 1893, Flexsteel Industries, Inc. (Flexsteel) trades publicly on NASDAQ.
Headquartered in Dubuque, Iowa, Flexsteel has North American manufacturing and
distribution facilities in Dubuque, IA; Dublin, GA; Lancaster, PA; Riverside, CA;
Starkville, MS; Huntingburg, IN; Edgerton, KS; Harrison, AR; and Juarez, Mexico.
Flexsteel employs 1,400 associates worldwide and is governed by a Board of Directors.
Flexsteel's core competencies are the design and production of furniture for residential
and commercial applications.
Flexsteel is known for its Blue Steel Spring as well as numerous other design and
manufacturing innovations. The Blue Steel Spring is manufactured in Dubuque.
Flexsteel sells to 50 countries around the globe and is carried by more than 1,200
retailers. Permanent showrooms are in High Point, NC and Las Vegas, NV. Flexsteel
operates and maintains a fleet of hundreds of company-owned trucks/trailers in addition
to using nationally dedicated carriers for unparalleled logistical precision.
DISCUSSION
The company is proposing to construct a new manufacturing facility in Dubuque.
Assistance from the State of Iowa, in the amount of $1 million, is being sought for the
demolition and remediation of the company's 100-year-old manufacturing facility located
on Jackson Street in Dubuque.
All of the company's manufacturing jobs in Dubuque will be lost if this project does not
proceed in Dubuque. The company has facilities in other parts of the United States and
Mexico, and will shift the manufacturing to one of those locations. The states of
Wisconsin, Mississippi, Indiana, and North Carolina have made offers to the company.
Most generous offers include free land, building, and tax incentives.
Local government match is anticipated from the City of Dubuque, which is contemplated
in a Development Agreement between the City and Flexsteel Industries, Inc.
RECOMMENDATION
I recommend that the City Council approve the Economic Development Assistance
Application on behalf of Flexsteel Industries, Inc. for the proposed investment of
approximately $35.6 million for the retention of its operations in Dubuque. The
proposed project would retain 200 jobs and promote the City's goal of retaining and
expanding business to add to the economic base.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
Prepared bv: Jill Connors. Economic Development. 50 W. 13th Street. Dubuaue IA 52001. 563 589-4393
Return to: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 183-17
AUTHORIZING THE FILING OF AN APPLICATION FOR STATE BUSINESS FINANCIAL
ASSISTANCE ON BEHALF OF FLEXSTEEL INDUSTRIES, INC.
Whereas, Flexsteel Industries, Inc. has proposed making a Thirty -Five Million Five
Hundred Sixty -Four Thousand Dollar($35,564,000.00) investment for the remediation of its
current facility and construction of a new manufacturing facility in the City of Dubuque,
Iowa; and
Whereas, the City Council of the City of Dubuque, Iowa has considered the proposal
and has determined that the proposed project will contribute to the local economy through
the retention of two hundred (200) full-time jobs in the City, all of which qualify for the Iowa
Economic Development Authority Business Financial Assistance Program; and
Whereas, financial assistance from the Iowa Economic Development Authority is
designed to assist in the economic development efforts of local jurisdictions; and
Whereas, the Iowa Economic Development Authority has requested execution of an
Economic Development Assistance Contract in order to finalize incentives and document
associated terms for the remediation of the current facility on Jackson Street and the
construction of Flexsteel Industries, Inc.'s proposed facility in the Dubuque Industrial
Center in the City.
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 Iowa Economic
Development Authority's Financial Assistance Program on behalf of Flexsteel Industries,
Inc., a copy of which is attached hereto, is hereby approved.
Section 2. That the Mayor is hereby authorized to execute and the City Manager is
hereby directed to submit the Application to the Iowa Economic Development Authority
together with such other documents as may be required.
Passed, approved, and adopted this 15th day of May 2017.
Roy D. Bp, I, Mayor
Attest:
Kev(i.6 S'. Firnstahl, City -Clerk
econ 1( )WAO
Debi V. Durham, Director
Iowa Economic Development Authority
Business Financial Assistance Application
Business Finance - Business Development Division
Iowa Economic Development Authority
200 East Grand Avenue
Des Moines, Iowa 50309-1819
wwwiowaeconomicdevelopment.com
Telephone. 5157253134 Email. businessfinance(dliowa box
Application Instructions
To Complete Electronic Form: Click on TEXT BOX to add text Double click on YES/NO boxes and select"Checked".
1. Al applicants must complete the Business Financial Assistance Application and attach only those
additional sections for the components to which the applicant is applying.
STATE of IOWA— Financial Assistance Proaram
Hi h Quality Jobs Program (HQJP)
Tax Credits
® Direct Financial Assistance
2. Before filling out this application form, please read all applicable sections of the Iowa Code and Iowa
Administrative Code (rules). https://www.legis.iowa.qov/law/administrativeRuies
3. Only typed or computer-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.
4. Complete the applicable sections ofthe application fully. If questions are left unanswered or required
attachments are not submitted, an explanation must be included.
5. Use clear and concise language.Attachments should only be used when requested or as supporting
documentation.
6. Any inaccurate information of a significant nature may disqualify the application from consideration.
7. The following must be submitted to Business Finance at IEDA in order to initiate the review process:
• One original, signed application form and all required attachments
• One electronic copy of the application form and all required attachments
Facsimile copies will not be accepted.
Applications must be submitted to IEDA Business Finance before 4:OOpm on the fourth Monday of the month.
Applications will be reviewed by the IEDA Board on the third Friday of the following month.
v31 17
Public Records Policies
During the application process, the information submitted by you to IEDA is exempt from disclosure under
the "industrial prospects" exemption found in Section 22.7(8). However, once you receive an award, the
industrial prospects exemption no longer applies and all documents submitted and generated during the
application and negotiation process become public records under Iowa's Open Records Law (Iowa Code.
Chapter 22), unless
1) The information belongs to one of the classes of records automatically treated as confidential; or
2) You have applied for and received written notice that your information will be treated as confidential.
Automatically Confidential Records
IEDA automatically treats the following records as confidential and will withhold them from public inspection
even without a request for confidential treatment:
• Tax Records and Tax Liability Information
• Quarterly Iowa Employer's Contribution and Payroll Report prepared for the Iowa Workforce
Development Department
• Payroll Registers
• Business Financial Statements and Projections (unless those statements are already publicly
available elsewhere, e.g., 10-K filings)
• Personal Financial Statements
Exemptions to the Open Records Law
If you wish to have additional information treated as confidential, you must fill out the confidential treatment
request form. This form is available by request. Under the Open Records Law, IEDA may lawfully treat
certain information as confidential if that information falls within an exemption to the Open Records Law. The
following exemptions represent records which may lawfully be treated as confidential under the Open
Records law and which are most often applicable to the information submitted to IEDA:
• Release of information would give an unfair advantage to competitors — Iowa Code Sec. 15.118
• Trade secrets —See Iowa Code section 22.7(3), see also Iowa Code Ch. 550
• Information on an industrial prospect with which the IEDA is currently negotiating —See Iowa Code
section 22.7(8)
• Communications not required by law, rule or regulation made to IEDA by persons outside the
government to the extent that IEDA could reasonably believe that those persons would be
discouraged from making them to IEDA if they were made available for general public
examination — Iowa Code section 22.7(18)
Non-Confidential Information
Information that is submitted to IEDA as part of the application process or that is contained in a contract for
program benefits is generally considered material to the eligibility requirements of the program or to the
amount of incentives or assistance to be provided. Such information is generally not given confidential
treatment. Such information includes but is not limited to, the number and type of jobs incented, the wage
levels for the incented jobs, your company's employee benefit information, and your project budget.
Additional Information Available. Copies of Iowa's Open Record law and IEDA's administrative rules
relating to public records are available from the IEDA upon request.
IEDA—Business Financial Assistance Application 2 v.3.1.17
SECTION A
Applicant Information Date Application Submitted:
1. Name of Business: Flexsteel Industries, Inc
2. Entity Name (for contracting purposes):
3. Address: 385 Bell Street
4. City, State & Zip Code: Dubuque, Iowa 52001
5. Contact Person: Timothy E Hall Title: CFO
6. Phone: 563 556-7730 Fax: 563 556-8345 Email: thall@flexsteel.com
7. FEIN: 420442319
8. NAICS Code for primary business operations: 336360
9. US DOT Number: 45141
10. Does the Business file a consolidated tax return under a different tax ID number?
❑ Yes (If yes, please also provide that tax ID number) ® No
a. 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:
11. If the application was prepared by someone other than the contact person listed above, please
complete the following:
Name of Business: Greater Dubuque Development Corporation
Address: 900 Jackson Street Suite 109
City, State & Zip Code: Dubuque, Iowa 52001
Contact Person: Rick Dickinson Title: President and CEO
Phone: 563 557-9049 Fax: Email: RickD@greaterdubuque.org
Sponsor Information (A sponsor organization is a city or county)
12. Sponsor Organization: City of Dubuque
13. Official Contact (e.g. Mayor,
Chairperson, etc.): Roy Buol Title: Mayor
14. Address: 50 West 13th Street
15. City, State & Zip Code: Dubuque, Iowa 52001
16. Phone: 563589-4110 Fax: Email:
17. If IEDA needs to contact the sponsor organization with questions, should we contact the person
listed above?
❑ Yes ® No, please contact the following person:
Name: Maurice Jones Title: Economic Developmet Director
Address: 50 West 13th Street
City, State & Zip Code: Dubuque, Iowa 52001
Phone: 563 589-4393 Fax: 563 589-1733 Email:
Mjones@cityofdubuque.org
If necessary, please list information on additional sponsors in an attachment.
IEDA—Business Financial Assistance Application 3 v.3.1.17
SECTION B
Business Information
1. Provide a brief description and history of the Business. Include information about the Business'
products or services and its markets and/or customers.
Founded in 1893, Flexsteel Industries, Inc. trades publicly on NASDAQ under the ticker symbol FLXS.
Headquartered in Dubuque, Iowa, Flexsteel has NorthAmerican manufacturing and distribution facilities in
Dubuque, IA;Dublin, GA; Lancaster, PA; Riverside, CA; Starkville, MS; Huntingburg, IN;Edgerton,
KS; Harrison, AR; and Juarez, Mexico.
Flexsteel employs 1,400 associates worldwide and is governed by a Board of Directors. Flexsteel's core
competencies are the design and production of furniture for residential and commercial applications.
Flexsteel is known for its Blue Steel Spring as well as numerous other design and manufacturing innovations.
The Blue Steel Spring is manufactured in Dubuque.
Flexsteel sells to 50 countries around the globe and is carried by more than 1.200 retailers. Permanent
showrooms are in High Point, NC and Las Vegas, NV. Flexsteel operates and maintains a fleet of over 100 of
company-owned trucks/trailers in addition to using nationally dedicated carriers for unparalleled logistical
precision.
2. Business Structure:
❑ Cooperative ® Corporation ❑ Limited Liability Company
❑ Partnership ❑ S-Corporation ❑ Sole Proprietorship
3. State of Incorporation: Minnesota
4. Identify the Business' owners and percent ownership:
5. Does a woman, minority, or person with a disability own the Business? ❑ Yes ® No
6. List the Business' Iowa locations and the most current number of employees at each location. Dubuge Iowa:
Corporate Headquarters 145 and manufacturing 218
7. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and
other affiliated entities in this figure.) 1400
Project Information
8. Project Street Address: Dubuque Industrial Center South
Project City&Zip Code: Dubuque, Iowa 52002 Project County: Dubuque
9. Type of Business Project:
❑ Startup ® Expansion of Iowa Company ❑ New Location in Iowa
10. Does the project site qualify as a"Brownfield"or"Grayfield" site? ❑Yes ® No
If yes, please explain and document as Attachment A6.
11. 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.)
The company is proposing to construct a new manufacturing facitlity in Dubuque. Assistance from the State of
Iowa is being sought for the demolition and remedation of the company's 100 year old manufacturing facility located on
Jackson street in Dubuque.
IEDA—Business Financial Assistance Application 4 v.3.1.17
12.
Project Timeline (add additional rows as needed) Beginning Activity Date Activity Completion Date
Ac uisiton of land for new manufacturing facility August 2017 August 2017
Construction of new manufacturing facilty August 2017 October 2018
13. Has any part of the project started*? ❑Yes ® No
If yes, please explain.
*For IEDA's purposes, starting the project includes:the start of construction or rehabilitation, the purchase of a building, the execution of a lease, or
the installation of equipment to be used in the project.
14. 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. No Iowa publicly traded companies are competitors. Other
companies like Ethan Allen, La-Z-Boy, Ashley, are competitors that sell retail furniture in Iowa.
15. Will any of the current Iowa employees lose their jobs if this project does not proceed?
® Yes ❑ No
If yes, please explain why and identify those jobs as "retained jobs" in the Project Jobs Section E.AII of the
company's manufacturing jobs in Dubuque will be lost if this project does not proceed in Dubuque. The company has
facilites in other parts of the US and Mexico, and will shift the manufacturing to one of those locations.
16. Is the Business actively considering locations outside of Iowa? ® Yes ❑ No
If yes, where and what assistance is being offered?The states of Wisconsin, Mississippi, Indiana, and North
Carolina have made offers to the company. Most generous offers include free land, building, and tax incentives.
17. Please identify the company project management for the project location and experience.Timothy E Hall -
CFO, Hilary Stubben -Corporate Counsel, and Steve Hall -VP Global Supply Chain. Timothy managed the
Corporate office expansion in Dubuque and will play the lead role in this project.
IEDA—Business Financial Assistance Application 5 v.3.1.17
SECTION C
Applicant's Project Budget
1. 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) for three years in the budget below, and only major renovation costs your
company expects to incur. Administrative rules require that the lease be in place for a minimum of five years.
2. Please complete the budget below. Include only costs the company plans to incur directly:
Use of Funds Cost Source A Source B Source C Source D Source E Source F
Base Rent 3 ears
Tenant Improvements
Land Acquisition 1320000 1320000
Site Preparation
Building Acquisition
Building Construction 25000000 25000000
Building Remodeling
Mfg. Machinery & Equip. 3000000 3000000
Other Machinery& Equip.
Racking, Shelving, etc.'
Computer Hardware
Computer Software
Furniture & Fixtures
Working Capital
Research & Development
Other: Cleanup of Jackson 6320000 1000000 2660000 2660000
Streetro er
TOTAL $35640000 $1000000 $2660000 1 $29280000 1 Is $
Racking,shelving and conveyor equipment used in distribution center projects only
3. Please complete the chart below with proposed financing for the project (tax benefits should be reflected as indirect
financing under#5 below):
PROPOSED FINANCING
Source of Funds Form of Funds Conditions/Additional
Information
Amount (Loan,Grant, In- Rate and Commitment Include when funds will be
Add additional lines as needed Kind, Donation,etc.) Term Status disbursed; If loan,whether
payments are a level term,
balloon, etc
Source A: IEDA (see#4 below) $1000000 Forgivable loan Pending Payments made as cleanup
occurs
Source B: Local Government $2660000 Grant Pending Development agreement
must be approved
Source C: Business $29280000 Cash Pending Development agreements
must be approved
Source D: $
Source E: Other Source $
Source F: Other Source $
TOTAL 1 $35640000
4. Direct financial assistance(loans/forgivable loans) must be secured with acceptable collateral. Please
select the type of collateral your company will pledge to secure the IEDA financing, and document its value
in Attachment A5.*
Explain:
No collateral, fundin disbursed at the end of the 5-year contrail ❑
Irrevocable letter of credit ❑
Dedicated certificate of deposit CD ❑
IEDA—Business Financial Assistance Application 6 v.3.1.17
*The IEDA Board has the final discretion on what collateral will be accepted.
5. Please complete the chart below with tax credits and other indirect financing expected for the project:
TAX CREDITS AND INDIRECT FINANCING
Source of Funds Amount Description
Investment Tax Credit $293.200 1% of$29,320,000
Sales, Service& Use Tax Refund $750,000 $25,000,000 in building construction
Research Activities Credit 3%/10%
Local Property Tax Exemption
Tax Increment Financing $4,100,000 10- ear annual rebate of$410,000
260E Job Training Funds
In-kind Contribution
Other $100000 NICC Workforce Training and Economic
Development funding for training existing
employees
$2,000,000 Dubuque County contribution for land
acquisition
TOTAL $7,243,000
6. There are three justifiable reasons for providing assistance. Check the box next to the reason why
assistance is needed to complete this project.
❑ Financing Gap- A gap exists between the financing required and the financing on-hand and the provision of
tax incentives or assistance is necessary to fill the gap.
❑ Rate of Return Gap—The likely returns of the project are inadequate to motivate a company decision maker to
proceed with the project even if sufficient debt or equity can be raised to finance the project, and the project's risks
outweigh its rewards, making the provision of tax incentives or assistance necessary to reduce the project's risks.
® Location Disadvantage(Incentive)—The business is deciding between a site in Iowa ("Iowa site") and a site
in another state ("out-of-state site") for its project and the cost of completing the project at the out-of-state site is
demonstrably lower, making tax incentives or assistance necessary to equalize the cost differential between the
two sites. Note: The authority will attempt to quantify the cost differential between the sites.
The states of Wisconsin, Mississippi, Indiana, and North Carolina have made offers to the company. Most
generous offers include free land, building, and tax incentives.
7. Please provide a brief explanation of the need for assistance.
The company and city need this assistance for demolition and environmental remediation of the existing
manufacturing campus, resulting in the redevelpment and reuse of the property. But for this assistance, the project
would not move forward in Dubuque.
IEDA—Business Financial Assistance Application 7 v.3.1.17
SECTION D
Employee Benefits
There are three options to meeting the sufficient benefit requirement. These options are detailed in the chart
below. Please complete questions 1-3. If your company meets Option 1 or 2, no additional information is
required. If you would like to utilize Option 3, piease also complete questions 4-6.
Option 1 Option 2 Option 3
80% single Coverage 50% Family coverage Monetary Equivalent
Total Number of Pay 80% of premium costs Pay 50% of premium costs for Provide medical and pay the
Employees in for a standard medical plan, a standard medical plan, monetary equivalent of Option
US single coverage. family coverage. 1 or Option 2 in supplemental
250+ $1250maximum deductible $2500 maximum deductible employee benefits.
50-249 $2250 maximum deductible $4500 maximum deductible Benefits Counted Toward
0-50 $2000 maximum deductible $4000 Maximum deductible Monetary Equivalent: Medical
coverage, Dental coverage,
Vision insurance, Life
insurance, Pension, 401(k)
(company's Average
contribution, Short-/long-term
disability insurance, Child care
services, Other nonwage
compensation
1. How many full-time, permanent employees does your company currently employ within the U.S.? 1355
2. What is the total premium cost for a standard medical plan for single employee coverage? $530-$1450
a. What portion of this cost is paid by the business? 80-100%
b. What is the deductible associated with this plan? $250-$450
3. What is the total premium cost for a standard medical plan for family coverage? $1140-$1450
a. What portion of this cost is paid by the business?78-100%
b. What is the deductible associated with this plan? $500-$900
No additional information required, in this section, if your company meets the requirement for Option 1 or Option 2
4. Does your company provide additional benefits to full time employees? ®Yes [-]No
If yes, please provide the annual amount offered by the business, per employee in the chart below:
Benefit Annual amount paid by the
business (Der employee):
Dental Insurance—Sin Ie plan $
Dental Insurance—Family Ian $
Pension Use 3-year average calculated below $
Retirement Plan - i.e. 401 k Use 3-year average calculated below) $
Profit Sharing Plan (Use 3-year average calculated below) $
Childcare Services $
Life Insurance coverage $
Disability Insurance coverage $
Health Savings Account HSA contribution $
TOTAL $
5. 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 the last three
years. For 401(k) plans, please provide information on the company match and indicate the average annual match per
employee.
Year Ending Average Actual Match per
Employee $
IEDA—Business Financial Assistance Application 8 v.3.1.17
Three-year Average: 1 $
6. Does the Business offer a profit-sharing plan?❑ Yes ❑ No
If yes, please indicate total amount paid out each year for the past three years and then, determine the average annual
bonus or contribution per employee for that three year period.
Year Ending Average Actual Share per
Employee $
Three-year Average: $
Notes:
1. A qualified plan must be offered to all full-time permanent employees.
2. If you have multiple health insurance plans, please provide information on each plan.
IEDA—Business Financial Assistance Application 9 v.3.1.17
SECTION E
Project Jobs
1. List the jobs that will be created and/or retained 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 jobs to be created,
include the starting and final hourly wage rate. For retained jobs, include the current hourly wage rate.
Full-Time CREATED Jobs Add addltlonal rows as needed
Job Title Number of Starting Wage at 36 months
CREATED Jobs Hourly Wa e followinq the award
Total Full-Time CREATED Jobs
Flexsteel Industries, Inc.
Full-Time RETAINED Jobs
Number of
Job Title Jobs Hourly Wage
Office/Management 35 $12.39 - $81.44
Plant Supervision 15 $16.46 - $37.05
General Labor janitor, Inventory, Mail) 5 $12.00 - $14.00
Production Level 1 51 $13.30 - $15.30
Production Level 2 48 $14.20 - $16.20
Production Level 3 15 $14.65 - $16.65
Production Level 4 13 $16.00 - $18.00
Production Level 5 3 $20.50 - $22.50
D&E Level 1 4 $16.00 - $18.00
D&E Level 2 5 $16.50 - $18.50
D&E Level 3 11 $18.00 - $20.00
Facility Maintenance 3 $18.40
Truck Drivers, Loaders & Mechanics 10 $20.50 - $20.77
Total Full-Time RETAINED Jobs 218
*Hourly Wage Reflects New Contract Hourly Wages (Does not include
Gainsharing)
The new manufacturing facility and modernization, along with attrition, may result in a
reduction of employment at the facility in Dubuque. However, the company is
committed to the retention of 200 jobs at the new manufacturing facility.
2. Is the hourly wage rate based on a 40 hour work week, 52 weeks per year? ® Yes ❑ No
If no please explain:
IEDA—Business Financial Assistance Application 10 v.3.1.17
Business Financial Assistance Application —
Flexsteel Industries, Inc.
Page 11 , Section F — original redacted from City Council copy, as it contained confidential
information
IEDA—Business Financial Assistance Application 11 v.3.1.17
SECTION G
Attachments
Please attach the following documents:
Al Project Plan
Please provide an executive summary for your project. This information should include, at a minimum,
expanded information about the company's products and services and any other project related information
that has not already been described in the application for financial assistance.
Please note, a traditional business plan, including an executive summary, market analysis, organization and
management structure, marketing and sales management, service and product line narrative, financial
projections, feasibility study and patent status, as well as any other relevant information, may be requested by
the Iowa Economic Development Authority to evaluate the feasibility of this project.
Flexsteel Industries, Inc., headquartered in Dubuque, Iowa, manufactures high quality furniture for residential and
commercial markets, including the recreational vehicle industry.
One of the company's manufacturing facilities is in Dubuque, Iowa. This facility currently employs over 200 FTEs. The
company is proposing to construct a new$25M manufacturing facility in Dubuque to replace the existing facility, which
is over 100 years old. This investment is a major upgrade to facility layout for improved product flow through the
manufacturing process and modernization of equipment. The modernization, along with attrition, may reduce
employment at the facility in Dubuque.
The total project contains two phases: The investment of$25 million in a new facility, and the remediation of the
approximately 40-acre existing manufacturing facility.
Keeping this new facility in Dubuque is a joint effort between the company, the unions representing some of the
employees, the City of Dubuque, Dubuque County, and Dubuque Initiatives, the private non-profit corporation that had
a major role in the IBM expansion project in Dubuque.
All three union contracts have been approved by the unions and the company. This first step was accomplished in
December 2016 and January 2017.
The City of Dubuque is agreeing to provide Tax Increment Financing rebates for a ten-year period on the new
manufacturing facility. The City is also agreeing to participate in the demolition of the buildings, including
environmental cleanup of the existing facility on Jackson Street.
Dubuque County is agreeing to purchase the land from the City of Dubuque and resell the property to the company at a
discount. The cost to the county is $2M.
Dubuque Initiatives is agreeing to accept the donation of the Jackson Street facility, and contract for the demolition of
the buildings and remediation of the existing site. Dubuque Initiatives will then market and resell the property for light
industrial use.
None of this will be possible without the financial participation of the State of Iowa for$1 M to assist in the demolition
and mitigation of the Jackson Street properties. The total budget for all activities is $34,640,000. Most of the cost will
be the company's. The city's and county's cash contribution will be $2,660,000. Refer to budget page for details.
A2 Payroll Information (Confidential)
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• Copies of the Business' Quarterly Iowa Employer's Contribution and Payroll Report for the past
year. This report should include the monthly employment totals.
• 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:
o Company name, date of payroll and source of payroll information
o Employee name and/or employee identification number
o Current hourly wage - do not include bonuses or other benefit values
o Indicate if the employee is full time (40 hours per week, 52 weeks per year) or part time.
o A sample Excel spreadsheet can be provided by IEDA staff
A3 Affidavit that states the Business has not, within the last five years, violated state or federal statutes, rules,
and regulations, including environmental, worker safety regulations and antitrust laws, 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 provided by IEDA staff.
A4 Financial Information (Confidential, unless already publicly available) (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.
AS Collateral documentation (If requesting direct financial assistance only)
A6 Brownfield or Grayfield site documentation (if applicable)
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SECTION H
Certification & Release of Information
1. Are there any judgments or court actions completed or pending against the applicant entity, or any current or
prospective officer, principal, director, or owner? ❑ Yes ® No
2. Has any current or prospective officer, principal, director, or owner been accused or convicted of any wrongdoing or
crime, other than a simple misdemeanor? ❑ Yes ® No
3. Have there been any current or past bankruptcies on the part of the applicant entity (or predecessor entities), or on
the part of any current (or prospective) officer, principal, owner or in any business dealings of current (or
prospective) officers, principals, or owners of the applicant entity? ❑ Yes ® No
4. In the last five years have there been, or are there currently any investigations of potential violations of public
health, safety (including workplace safety) or environmental laws by the applicant entity, or any current or
prospective officer, principal, director, or owner? ® Yes ❑ No
5. In the last five years have there been, or are there currently any violations of antitrust laws by the applicant entity,
or any current or prospective officer, principal, director, or owner? ❑ Yes ® No
6. If yes to any of the above, please provide additional explanation: See Attached
I hereby give permission to the Iowa Economic Development Authority (IEDA) to research the Business' history, make credit checks,
contact the Business' financial institutions, insurance carriers, and perform other related activities necessary for reasonable
evaluation of this application. I also hereby authorize the Iowa Department of Revenue to provide to IEDA state tax information
pertinent to the Business° state income tax, sales and use tax, and state tax credits claimed.
I understand that all information submitted to IEDA related to this application is subject to Iowa's Open Record Law (Iowa Code,
Chapter 22), unless specifically marked as confidential section.
I understand that IEDA reserves the right to negotiate the financial assistance.
I understand this application is subject to final approval by IEDA and the Project may not be initiated until final approval is secured.
Furthermore, I am aware that funds will not be disbursed until a contract has been executed and the appropriate terms have been
met.
1 understand that upon execution of the contract and prior to the issuance of a tax credit number or the disbursement of Award
Funds, a recipient shall pay IEDA a one-time compliance cost fee in the amount of $500. In addition, if tax benefits are greater than
$100,000, the Recipient shall remit to IEDA a compliance cost fee 0.5% of the value of the Tax Incentives claimed pursuant to the
contract. The fee will be due and payable upon filing the Recipient's annual tax return for each tax year in which tax credits are
claimed under the contract.
I hereby certify that all representations, warranties, or statements made or furnished to IEDA 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 Business: For the Saonsor(s):
Signature Date Signature
Timothy E. Hall, Chief Financial Officer Roy Buol, Mayor
Name and Title (typed or printed) Name and Title (typed or printed)
Date
IEDA 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, IEDA may initiate legal action
to recover incentives and assistance awarded to the Business.
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