State of Iowa Business Financial Assistance Application for Heartland Financial USA, Inc.Copyrighted
September 18, 2017
City of Dubuque Action Items # 8.
ITEM TITLE: State of Iowa Business Financial Assistance Application for
Heartland Financial USA, Inc.
SUMMARY: City Manager recommending approval of the submission of
an Iowa Economic Development Assistance Application by
Heartland Financial USA, Inc. to the Iowa Economic
Development Authority.
RESOLUTION Authorizing the Filing of an Application for
State Business Financial Assistance on Behalf of Heartland
Financial, USA, Inc.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Heartland Financial Financial State of Iowa Assistance City Manager Memo
Application -MVM Memo
Staff Memo Staff Memo
Application to State Supporting Documentation
Resolution of Approval Resolutions
THE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
bell
All -America City
'1Il1'
2007 • 2012 • 2013 • 2017
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: State of Iowa Business Financial Assistance Application for Heartland
Financial USA, Inc.
DATE: September 13, 2017
Economic Development Director Maurice Jones recommends City Council approval of
the submission of an Iowa Economic Development Assistance Application by Heartland
Financial USA, Inc. to the Iowa Economic Development Authority.
In 2012 Heartland Financial expanded employment and leased a floor in the Roshek
Building at 700 Locust Street in Dubuque.
Heartland Financial currently employs 350 people in Dubuque. Because of growth and
acquisitions, Heartland Financial is proposing to expand again and is proposing to lease
an additional floor of Roshek Building at 700 Locust Street. Heartland Financial is
proposing to spend approximately $1.2 million for remodeling and $440,000 in
Hardware/Software/Furniture/Fixtures.
Because of this expansion, Heartland Financial will grow employment by at least 31
employees in Dubuque.
This proposed project is dependent upon incentives for job creation of the State of Iowa.
These include direct financial assistance, tax credits, sales tax refunds, and job training
assistance.
The company is eligible for an estimated $236,000 in training fund reimbursement from
Northeast Iowa Community College for the 31 jobs. The local match requirement will be
met with a $150,000 loan from ECIA Revolving Loan Fund. The company is also
requesting direct financial assistance of $80,000 from the Iowa Economic Development
Authority. The incentives are offered through the State's High Quality Jobs Program.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MicIfael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
2
THE CITY OF
DUB
Masterpiece on the Mississippi
Dubuque
kitiZA
All -America City
1111
r
2007 • 2012 •2013
Economic Development Department
50 West 13th Street
Dubuque, Iowa 52001-4864
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: State of Iowa Business Financial Assistance Application for Heartland
Financial USA, Inc.
DATE: September 12, 2017
INTRODUCTION
This memorandum presents for City Council review and approval a resolution
authorizing the submission of an Iowa Economic Development Assistance Application
by Heartland Financial USA, Inc. to the Iowa Economic Development Authority (IEDA).
BACKGROUND
Founded in 1981, Heartland Financial USA, Inc. is a multi -billion multibank holding
company offering uniquely different banking solutions for business and personal clients.
Heartland's independent community banks are chartered in the states of Iowa, Illinois,
Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, and
California, with a total of 121 banking locations serving 88 communities.
The Heartland vision is to differentiate itself by highlighting its uniqueness as a
commercial banking organization supported by a strong retail delivery system. As one of
the top 100 bank holding companies nationwide, Heartland delivers high-quality
financial products and service to clients in the Midwestern, Southwestern and Western
United States.
Heartland's common stock is traded through the NASDAQ® Global Select Market
System under the symbol "HTLF."
Corporate headquarters are in Dubuque, Iowa. Employees in Dubuque provide support
to all of Heartland's community banks nationwide.
DISCUSSION
In 2012 Heartland Financial expanded employment and leased a floor in the Roshek
Building at 700 Locust Street in Dubuque. The building is owned and operated by
Dubuque Initiatives, a private non-profit organization partnering with the City of
Dubuque to revitalize the downtown and Port of Dubuque. The building is also home to
IBM in Dubuque.
Heartland Financial currently employs 350 in Dubuque. Because of growth and
acquisitions, Heartland Financial is proposing to expand again and is proposing to lease
an additional floor of Roshek Building at 700 Locust Street. Heartland Financial is
proposing to spend approximately $1.2 million for remodeling and $440,000 in
Hardware/Software/Furniture/Fixtures.
Because of this expansion, Heartland Financial will grow employment by at least 31
employees in Dubuque.
This proposed project is dependent upon incentives for job creation of the State of Iowa.
These include direct financial assistance, tax credits, sales tax refunds, and job training
assistance.
The company is eligible for an estimated $236,000 in training fund reimbursement for
the 31 jobs. The local match requirement will be met with the $150,000 loan from ECIA
(see Source D listed on page 6 of application). The company is also requesting direct
financial assistance of $80,000 from the IEDA. The incentives are offered through the
State's High Quality Jobs Program.
RECOMMENDATION
I recommend that the City Council approve the Economic Development Assistance
Application on behalf of Heartland Financial USA, Inc. for the proposed investment of
approximately $1.2 million for the expansion of its operations in Dubuque. The
proposed project would add 31 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 by: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563-589-4393
Return to: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563-589-4393
RESOLUTION NO. 325-17
AUTHORIZING THE FILING OF AN APPLICATION FOR STATE BUSINESS
FINANCIAL ASSISTANCE ON BEHALF OF HEARTLAND FINANCIAL, USA, INC.
Whereas, Heartland Financial, USA, Inc. (Heartland) has proposed making a One
Million Two Hundred Thousand Dollar ($1,200,000.00) investment for tenant
improvements of a fifteen thousand square foot (15,000 sq. ft.) office 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 creation of thirty-one (31) full-time jobs in the City 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 tenant improvements of Heartland's proposed location at 700
Locust Street 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 Heartland Financial
USA, 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 18th day of Stember, 2017.
1-1,4 Lt,
Roy D Buolilayor
Attest:
Kev n ,�`. irnstahl, ''ty Clerk
economic development
Debi V Durham, Director
lowa 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
www inwapronomirdpvpio mpnt rom
Telephone 515 725 3134 Email busmpccfmancpaiowa am
Application Instructions
To Complete Electronic Form Click on TEXT BOX to add text Double click on YES/NO boxes and select"Checked"
1 All 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
High Quality Jobs Program (HQJP)
Z Tax Credits
Z Direct Financial Assistance
2 Before filling out this application form, please read all applicable sections of the Iowa Code and Iowa
Administrative Code (rules) httos Ilwww leais Iowa aov/law/administrativeRules
3 Only tvoed or ccq pouter-aeneoted 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 of the 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 coi]les will not be accented.
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
v3 1 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
I EDA 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 I EDA 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 v41917
SECTION A
Applicant Information
Date Application Submitted: 8/25/17
1. Name of Business: Heartland Financial USA, Inc. 1 Dubuque Bank & Trust
2. Entity Name (for contracting purposes):
3. Address: 1398 Central Ave.
4. City, State & Zip Code: Dubuque, IA. 52001
5. Contact Person: Joseph V. Berretta Title: VP Facilities
6. Phone: 4801610-3905 Fax: Email: jberretta@htlf.com
7. FEIN: 42-1405748
8. Please indicate your tax period end date: 12/31
9. NAICS Code for primary business operations: 522110
10. US DOT Number:
11. Does the Business file a consolidated tax return under a different tax ID number?
❑ Yes (If yes, please also provide that tax ID number) X❑ No
a. Is the contact person listed above authorized to obligate the Business?
X❑ Yes ❑No If no, please provide the name and title of a company officer authorized to
obligate the Business:
12. 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: Dan McDonald Title: VP of Existing Business
Phone: 563 557-9049 Fax: Email: DanielM@greaterdubuque.org
Sponsor Information (A sponsor organization is a city or county)
13. Sponsor Organization: City of Dubuque
14.
Official Contact (e.g. Mayor,
Chairperson, etc.): Roy D. Buol Title: Mayor
15. Address: 50 West 13th Street
16. City, State & Zip Code: Dubuque, Iowa 52001
17. Phone: 563-589-4110 Fax: Email:
18. If IEDA needs to contact the sponsor organization with questions, should we contact the person
listed above?
❑ Yes EX No, please contact the following person:
Name: Maurice Jones Title: Economic Development Director
Address: 50 West 13th Street
City, State & Zip Code: Dubuque, Iowa 52001
Phone: 563-589-4105 Fax: Email:
mjones@cityofdubuque.org
If necessary, please list information on additional sponsors in an attachment.
IEDA— Business Financial Assistance Application
3 v41917
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 1981, Heartland Financial USA, Inc. is a multi -billion multibank holding company offering uniquely
different banking solutions for business and personal clients. Heartland's independent community banks are
chartered in the states of Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota,
Kansas, and California, with a total of 121 banking locations serving 88 communities. Other business lines
include:
Residential Lending — provided at bank locations as well as loan production offices operating as National
Residential Mortgage.
Private Client Services — Financial planning, investment management and trust services offered through
Wealth Advisory Services. Comprehensive retirement plan solutions including customized 401(k), 403(b) and
profit sharing plans are offered through Heartland Retirement Plan Services. Brokerage and investment
services are provided through LPL Financial Institution Services.
Consumer Finance Services — provided by Citizens Finance.
The Heartland vision is to differentiate itself by highlighting its uniqueness as a commercial banking
organization supported by a strong retail delivery system. As one of the top 100 bank holding companies
nationwide, Heartland delivers high-quality financial products and service to clients in the Midwestern,
Southwestern and Western United States.
2 Business Structure:
❑ Cooperative X❑ Corporation ❑ Limited Liability Company
0 Partnership 0 S -Corporation ❑ Sole Proprietorship
3 State of Incorporation Delaware
4 Identify the Business' owners and percent ownership Public Company, Traded on NASDAQ "HTLF"
5 Does a woman, minority, or person with a disability own the Business? ❑ Yes X® No
6 List the Business' Iowa locations and the most current number of employees at each location
Citizens Finance - Cedar Rapids, IA — 5
Citizens Finance - Davenport, IA — 7
Citizens Finance - Dubuque, IA —12
Citizens Finance - Urbandale, IA — 3
Dubuque Bank & Trust Asbury in Dubuque, IA — 35
Dubuque Bank & Trust Central Ave in Dubuque, IA —141
Dubuque Bank & Trust Grandview in Dubuque, IA — 6
Dubuque Bank & Trust Iowa & 14111St in Dubuque, IA — 3
Dubuque Bank & Trust JFK Road in Dubuque, IA — 9
Dubuque Bank & Trust Rockdale Road in Dubuque, IA — 4
Dubuque Bank & Trust Epworth, IA — 4
Dubuque Bank & Trust Farley, IA — 6
Dubuque Bank & Trust Holy Cross, IA — 2
Dubuque Bank & Trust Keokuk, IA - 22
Heartland Financial USA, Inc Central Ave in Dubuque, IA — 212
Heartland Financial USA, Inc Locust Street in Dubuque, IA - 138
7 What is the Business' worldwide employment? (Please include employees of parent company,
subsidiaries, and other affiliated entities in this figure.) 2,044 (as of 8 25 2017)
Project Information
8 Project Street Address: 700 Locust Street, Suite 400
Project City & Zip Code: Dubuque, Iowa Project County: Dubuque
IEDA— Business Financial Assistance Application 4 v 4 19 17
9 Type of Business Project:
❑ Startup
X® 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.)
Design space and construction offices in approximately 14,700 square ft (approx 50% of the 4th floor), to
accommodate approximately 75 people
Project Timeline (add additional rows as needed) Beginning Activity Date
1 Construction Phase 09/22/2017
1 Furniture / Equipment Phase 09/22/2017
1 Employment of New Positions 09/22/2017
12 Has any part of the project started*?
If yes, please explain
['Yes X® No
Activity Completion Date 1
12/15/2017
1/1/2018
7/1/2021
* 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
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 Other Financial Service Companies such as Wells Fargo, US
Bank, Bank of America, Citibank, Etc This project will have no impact on these businesses
14 Will any of the current Iowa employees lose their jobs if this project does not proceed?
❑ Yes X® No, however, the company does have options to add support positions in
major metropolitan markets that we currently have locations (Phoenix, Denver, Minneapolis), vs Dubuque, Iowa
If yes, please explain why and identify those jobs as "retained jobs" in the Project Jobs Section E
15 Is the Business actively considering locations outside of Iowa? X® Yes ❑ No
If yes, where and what assistance is being offered? Heartland is currently establishing a Western United States
Operations Center in the Denver, Colorado market We also have opportunities to expand in major metro markets
where the company has established locations such as Denver, Phoenix, and Minneapolis
16 Please identify the company project management for the project location and experience. The building is
owned and operated by Dubuque Initiatives, a private non-profit organization partnering with the City of Dubuque to
revitalize the downtown and Port of Dubuque Dubuque Initiatives currently leases to IBM and other businesses in
this building The Project Manager for this project is Joseph Berretta, VP Facilities for Heartland Financial
!EDA— Business Financial Assistance Application
5 v41917
419,306
SECTION C
Applicant's Project Budget
1 Does the Business plan to lease the facility? X® Yes 0 No
If yes, please provide the Annual Base Rent Payment (lease payment minus property taxes, Insurance, and
operating/maintenance expenses) for thrcc 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
Base Rent (3 years)
Tenant ImpPyements
Land Acquisition
Site Preparation
Building Acquisition
Building Construction
Building Remodeling
Mfp Machinery & E uip
Other Machinery & Equip
Racking, Shelving, etc 1
Computer Hardware
Computer Software
Furni-ure & Fixtures
Working Capital
Research & Development
Other
Cost
1,200,000
75,000
15,000
350,000
Source A Source B Source C Source D Source E Source F
8 0, 0 0 0 339,306
1,200,000
75,000
15,000
200,000 150,000
TOTAL
$2,059,306 1 $80,000
$ 1 $1,829,306 1 $150,000 1 $
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
Conditions/Additional
Information
Include when funds will be
disbursed, If loan, whether
payments are a level term,
balloon, etc
20 Jobs / $5,000 per job
forgivable loan
Source of Funds Form of Funds
Amount (Loan, Grant, In- Rate and Commitment
Add additional lines as needed Kind, Donation, etc) Term Status
SourceA IEDA (see#4 below) $80,000 Forgivable Grant In Process
Loan
Source B Local Government $
Source C Business $1,829,306 Cash Secured
Source D Other Source $150,000 ECIA RLF Loan 4.0I7yr In Process
Source E Other Source $
Source F Other Source $
TOTAL $2,059,306 1 1
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 AS.*
1 No collateral fundis disbursed at the end of the 5 -year contract 1711 Irrevocable letter of credit
1 Dedicated certificate of deposit (CD) 0
Explain
* The IEDA Board has the final discretion on what collateral will be accepted
IEDA— Business Financial Assistance Application
6 v41917
5 Please complete the chart below with tax credits and other indirect financing expected for the project
TAX CREDITS AND INDIRECT FINANCING
1 Source of Funds Amount Description
1 Investment Tax Credit $ 84,715 5% ITC on eli5Jible cost
Sales, Service & Use Tax Refund $ 36,000 6% sales fax rebate on construction
materials, etc.
Research Activities Credit (3%/10%)
Local Property Tax Exemption
Tax Increment Financing
260E Job Training Funds
In-kind Contribution
Other
TOTAL
$235,795 260E for 31 new lobs ($6,500 per)
$ 54,498 New Jobs Tax Credit /31 jobs ($1,758 per)
$411,008 1
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
7 Please provide a brief explanation of the need for assistance.
The State of Iowa is one of many states in which the company has operations Attracting and hiring
employees into Iowa can require more resources than some of the locations in larger metropolitan areas
8 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
9 Please provide a brief explanation of the need for assistance.
The State of Iowa is one of many states in which the company has operations Attracting and hiring
employees into Iowa can require more resources than some of the locations in larger metropolitan areas
Employee Benefits
SECTION D
IEDA— Business Financial Assistance Application
7 v41917
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, please also complete questions 4-6.
Option 1 Option 2 Option 3
80% single Coverage 50% Family coverage
Total Number of
Employees in
US
250+
50-249
0-50
Pay 80% of premium costs
for a standard medical plan,
single coverage
$1250maximum deductible
$2250 maximum deductible
$2000 maximum deductible
Pay 50% of premium costs for
a standard medical plan,
family coverage
$2500 maximum deductible
$4500 maximum deductible
$4000 Maximum deductible
Monetary Equivalent
Provide medical and pay the
monetary equivalent of Option
1 or Option 2 in supplemental
employee benefits
Benefits Counted Toward
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
IEDA— Business Financial Assistance Application
8 v41917
1 How many full-time, permanent employees does your company currently employ within the U S ? 1,958
2 What is the total premium cost for a standard medical plan for single employee coverage? $6,958 92 plan 1
a What portion of this cost is paid by the business? 65% plan 1, 76% plan 2 6,193 32 plan 2
b What is the deductible associated with this plan? $750 — plan 1 $2500 plan 2
3 What is the total premium cost for a standard medical plan for family coverage? $20,180 88 plan 1, 17,960 76
plan 2
a What portion of this cost is paid by the business?65% plan 1, 76% plan 2
b What is the deductible associated with this plan? $2500 plan 1, $4350 plan 2
2 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
Dental Insurance — Single plan
Dental Insurance — Family plan
Pension (Use 3 -year avera a calculated below)
Retirement Plan - i e 40' 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
156 96 plan 1
895 92 Plan 1
n/a
3%
4%
n/a
Varies by EE
Varies by EE
n/a
266 16 Plan 2 $
1,047 12 Plan 2 $
3 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
Year Ending
2016
2015
2014
Three-year Average:
Average Actual Match per
Employee ($)
Average Actual Match per
Employee ($)
3%
3%
3%
3%
4 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 eriod
Average Actual Share per
Employee ($)
2016 4% Salah $
2015 4% $
2014 4% $
Three-year Average: 4% $
Year Ending
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 v41917
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
1 Full -Time CREATED Jobs
Job Title
(Add additional rows as needed)
Number of Starting Wage at 36 months
CREATED Jobs Hourly Wage following the award
Sales and Service Support 2 15 87 17 34
Specialist I
Support Center Analyst 2 16 83 19 28
Internal Auditor 2 16 83 19 28
BSA/AML Analyst 1 16 83 19 28
Computer Operator I 1 18 27 19 96
Workday Analyst 1 19 23 21 01
Payroll Specialist 1 19 23 21 01
Loan Review Officer 1 19 23 21 01
Marketinq Data Analytics I 1 20 67 22 59
Intranet Web Developer 1 1 21 63 23 64
Sales and Service Support 5 21 63 23 64
Specialist II
Network Administrator 2 22 12 24 16
Marketing Data Analytics II 1 22 12 2416
Corporate Recruiter 1 24 04 26 27
Data Enpineer 3 24 04 26 27
Applications Administrator 2 24 04 26 27
Marketing Strategist 1 24 04 26 27
Intranet Web Developer 11 1 26 44 28 89
HR Admin/Generalist 1 28 85 31 52
Digital Marketing Strategist 1 28 85 31 52
Total Full -Time CREATED Jobs 31 1
Full -Time RETAINED Jobs (Add additional rows as needed)
Number of Current Hourly
Job Title (AT -RISK jobs only) RETAINED Wage
Jobs
Total Full -Time RETAINED Jobs 1
IEDA— Business Financial Assistance Application
10 v41917
2 Is the hourly wage rate based on a 40 hour work week, 52 weeks per year? ® Yes ❑ No
If no please explain
I EDA — Business Financial Assistance Application 11 v 4 19 17
Business Financial Assistance Application
Heartland Financial USA, Inc.
Page 12 — original redacted from City Council copy, as it contained confidential
information
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 analysts, 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
A2 Payroll Information (Confidential)
• 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
A5 Collateral documentation (If requesting direct financial assistance only)
A6 Brownfield or Grayfield site documentation (if applicable)
IEDA— Business Financial Assistance Application
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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 X® 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 X® 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? E Yes X® 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 X® 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 X® No
6. If yes to any of the above, please provide additional explanation:
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.
I 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 Soonsor(s):
8/21/2017
Signature
Joseph V. Berretta
Vice President Admin Services and Facilities
Date Signature
Roy D. Buol, Mayor
Name and Title (typed or printed) Name and Title (typed or printed)
9/18/2017
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.
IEDA — Business Financial Assistance Application
14 v.4.19.17
ATTACHMENT Al Project Plan Executive Summary
Founded in 1981, Heartland Financial USA, Inc is a multi -billion multibank holding company offering uniquely different
banking solutions for business and personal clients Heartland's independent community banks are chartered in the
states of Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, and California, with a
total of 121 banking locations serving 88 communities
The Heartland vision is to differentiate itself by highlighting its uniqueness as a commercial banking organization
supported by a strong retail delivery system As one of the top 100 bank holding companies nationwide, Heartland
delivers high-quality financial products and service to clients in the Midwestern, Southwestern and Western United
States
Heartland's common stock is traded through the NASDAQ® Global Select Market System under the symbol "HTLF "
Corporate headquarters are in Dubuque, Iowa Employees in Dubuque provide support to all of Heartland's community
banks nationwide
In 2012 Heartland Financial expanded employment and leased a floor in a building at 700 Locust Street in Dubuque
The building is owned and operated by Dubuque Initiatives, a private non-profit organization partnering with the City of
Dubuque to revitalize the downtown and Port of Dubuque The building also is the home of IBM in Dubuque
Heartland Financial currently employs 350 in Dubuque Because of growth and acquisitions, Heartland Financial is
proposing to expand again, and is proposing to lease an additional floor of the building at 700 Locust Street in
Dubuque Heartland Financial is proposing to spend approximately $1 2 million for remodeling and $440 000 in
Hardware/Software/Furniture/Fixtures
Because of this expansion, Heartland Financial will grow employment by at least 31 employees in Dubuque
This proposed project is dependent upon incentives for job creation of the State of Iowa These include direct financial
assistance, tax credits, sales tax refunds, and job training assistance
IEDA— Business Financial Assistance Application
15 v41917
Kevin Firnstahl
From: Roy D. Buol
Sent: Sunday, September 17, 2017 5:04 PM
To: Kevin Firnstahl
Subject: Fwd: Input for City Council Meeting on Sept 18, 2017
Attachments: TIF City Council.pdf; ATT00001.htm
Sent from my iPhone
Begin forwarded message:
From: Luis Del Toro <Ideltoro@citvofdubuque.ore>
Date: September 17, 2017 at 11:06:24 AM CDT
To: Mike Van Milligen <ctvmer@citvofdubuque.ore>, "Roy D. Buol" <rdbuol@citvofdubuque.ore>, "Jake
A. Rios" <irios@citvofdubuque.ore>, "Joyce E. Connors" <iconnors@citvofdubuque.ore>, "Kevin J.
Lynch" <klvnch@citvofdubuaue.org>, "Ric W. Jones" <riones@citvofdubuque.ore>, "David T. Resnick"
<dresnick@citvofdubuque.ore>
Subject: Fw: Input for City Council Meeting on Sept 18, 2017
Unaware if you each received this but sharing the citizen concern in advance of our meeting tomorrow
for your review regarding an agenda item: Action item #8.
If I missed someone this needs to go to as well, please forward.
Thanks,
Luis
From: mcclainm2t@aol.com <mcclainm2t@aol.com>
Sent: Sunday, September 17, 2017 9:32:03 AM
To: Luis Del Toro
Subject: Input for City Council Meeting on Sept 18, 2017
Good Morning Mr Del Toro,
I want to submit my input to the City Council regarding Action Item No 8 on the agenda for Sept 18. I
read about this item in the Telegraph Herald yesterday. I have attached a letter with my input. I trust that
this will be entered into the process of the City Council appropriately. Thank you.
Respectfully,
Mike McClain
1077 McCormick St
Click here to report this email as spam.
1
City Council of Dubuque
City of Dubuque
Dubuque, IA 52001
Sept 16, 2017
Subject : Heartland Financial Request for Financial Assistance from Iowa Economic Development
Authority
To All,
I want to provide some input on Action Item 8 on the City Council agenda for Sept 18, 2017. I was
somewhat incredulous about today's article in the TH about the request from Heartland Financial for
economic assistance from the state and city for a $2,000,000 expansion in the Roshek Building.
It struck me as odd that an institution as successful and profitable as HTLF has been and continues to
be, would even make such a request. A company that is projecting to exceed $10 Billion in assets in
2018 is requesting help for a $2 Million expansion, That's .002% if my math is correct. Incredulous ! !
That's pocket change to them. So then why do they need the help of the common taxpayers of
Dubuque who many will never have a concept of a million is let alone a billion.
So then I looked at HTLF's presentation of their May 2017 Annual Meeting thinking maybe things
aren't quite as good as their headlines indicate. It was titled "CAPITALIZING ON
OPPORTUNITIES". It was absolutely impressive. I am not a financial person and their great
performance was obvious to me. Some key performance indicators that I noted:
• Net income was $80.1 million. 35% increase over 2015 and an all time record.
• Double digit earnings over past 3 years.
• Since 1981, never experienced a loss.
• All time record high earnings. 2016 was a 14% increase over 2015.
• 5 year EPS rate of 21% vs a goal of 10%.
• Double assets every 5-7 years,
• Currently 3 of their 10 banks have assets in excess of $ 1 Billion, of which one is
DB&T.
There are many, many more statistics in the presentation that show HTLF's stellar performance.
So I ask why would the city entertain a request like this from such a superior performing company. I
believe that economic assistance for companies through tax relief and rebates was intended to bring
new companies to our community and help start- up or growing companies already here. I always
thought it was for companies that need a hand uu, not a hand out.
I know the carrot of job growth is tempting. Some might say it's become a drug for cities. And I
clearly understand why, but at what cost? Will these 31 jobs be new people to the city of Dubuque? Or
will these be people currently employed elsewhere in the area? Rob from Peter to pay Paul? This is not
the scale of IBM when they came to Dubuque but I can't help mentioning how 1300 jobs is now down
in the low hundreds. I wonder what the cost for tax incentives would look like if the denominator had
been 200?
So I ask again, why are we asking the taxpayers of Dubuque to subsidize this billion dollar company?
Do the minimum wage earners get a break in this somewhere?
I am a 40+ year customer of DB&T and have been provided good service . So I am not belittling
HTLF in the least. But I wonder if this is one of their ways to "capitalize on opportunities"?
This may be too little, too late as the action item for the council meeting reads like a slam dunk:
8. State of Iowa Business Financial Assistance Application for Heartland
Financial USA, Inc.
City Manager recommending approval of the submission of an Iowa
Economic Development Assistance Application by Heartland Financial
USA, Inc. to the Iowa Economic Development Authority.
RESOLUTION Authorizing the Filing of an Application for State
Business Financial Assistance on Behalf of Heartland Financial, USA,
Inc.
Suggested Disposition: Receive and File; Adopt Resolution(s)
I trust that the council members of Dubuque are representing all segments of our community.
Respectfully,
Mike McClain
1077 McCormick St.