IBM Development Agreement_Incentives Resolution 2 16 09(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of Dubuque, Iowa
Date of Meeting: February 16, 2009
Time of Meeting: 6:30 o'clock P.M.
Place of Meeting: Historic Federal Building, 350 West 6th Street, Dubuque,
Iowa
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental
body will meet at the date, time and place above set out. The tentative agenda for said
meeting is as follows:
Greater Downtown Urban Renewal District
Resolution approving and authorizing execution of a Development
Agreement between the City of Dubuque, Iowa and Dubuque Initiatives,
and an Incentive Agreement between the City and International Business
Machines Corporation
Such additional matters as are set forth on the additional 12 page(s) attached hereto.
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of said governmental body.
City Clerk, Dubuque, Iowa
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February 17, 2009
The City Council of Dubuque, Iowa, met in regular session, in the Historic
Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the
above date. There were present Mayor Roy D. Buol in the chair, and the following
named Council Members:
Present: Braig, Connors, Jones, Lynch, Resnick, Voetberg
Absent: None
Council Member Karla Braig introduced and delivered to the Clerk the Resolution
hereinafter set out entitled "RESOLUTION APPROVING AND AUTHORIZING
EXECUTION OF THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF
DUBUQUE, IOWA AND DUBUQUE INITIATIVES, AND THE INCENTIVE
AGREEMENT BETWEEN THE CITY AND INTERNATIONAL BUSINESS MACHINES
CORPORATION", and moved:
that the Resolution be adopted.
to ADJOURN and defer action on the Resolution and
the proposal to the meeting to be held at o'clock _.M. on the
day of , 2009, at this place.
Council Member Ric Jones seconded the motion. The roll was called and the
vote was,
AYES: Braig, Buol, Connors, Jones, Lynch, Resnick, Voetberg
NAYS: None
Whereupon, the Mayor declared the measure duly adopted.
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RESOLUTION NO. 74-09
RESOLUTION APPROVING AND AUTHORIZING
EXECUTION OF THE DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF DUBUQUE, IOWA AND
DUBUQUE INITIATIVES, AND THE INCENTIVE
AGREEMENT BETWEEN THE CITY AND
INTERNATIONAL BUSINESS MACHINES CORPORATION
WHEREAS, the City Council has approved and adopted an Amended and
Restated Urban Renewal Plan (the "Urban Renewal Plan") for an area described
therein as the Greater Downtown Urban Renewal District (the "Urban Renewal Area");
and
WHEREAS, it is desirable that properties within the Urban Renewal Area be
redeveloped as part of the overall redevelopment area covered by said Urban Renewal
Plan; and
WHEREAS, the City of Dubuque ("City") has received a proposal from Dubuque
Initiatives (the "Developer") and International Business Machines Corporation (the
"Employer"), in the form of a proposed Development Agreement (the "Development
Agreement") between the City and the Developer and a proposed Incentive Agreement
(the "Incentive Agreement," and together with the Development Agreement, referred to
herein as the "Agreements") between the City and the Employer, pursuant to which,
among other things, the Developer would acquire and renovate the Dubuque Building
located at 700 Locust Street in the City, and lease portions of the same to the Employer;
and
WHEREAS, the Employer reasonably expects to create approximately 1,300 new
full-time employment positions at the Dubuque Building property prior to January 1,
2011, and reasonably expects to maintain those jobs during the term of the
Agreements; and
WHEREAS, in consideration of the obligations being assumed by the Developer
and the Employer, the Agreements further propose that the City provide certain financial
assistance to the Developer and the Employer, including a loan guaranty for the benefit
of the Developer and the payment of certain economic development grants to the
Developer and the Employer; and
WHEREAS, the economic development grants to the Developer and the
Employer shall be payable from, and only from, the tax increment revenues collected by
the City in respect of the Dubuque Building property and the improvements constructed
thereon, under the terms and following satisfaction of the conditions set forth in the
Agreements; and
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WHEREAS, Iowa Code Chapters 15A and 403 (the "Urban Renewal Law")
authorize cities to make grants for economic development purposes in furtherance of
the objectives of an urban renewal plan and project and to appropriate such funds and
make such expenditures as may be necessary to carry out the purposes of said
Chapters, and to levy taxes and assessments for such purposes; and
WHEREAS, the Council has determined that the Agreements are in the best
interests of the City and the residents thereof and that the performance by the City of its
obligations thereunder are public undertakings and purposes and in furtherance of the
Urban Renewal Plan and the Urban Renewal Law and, further, that the Agreements and
the City's performance thereunder are in furtherance of appropriate economic
development activities and objectives of the City within the meaning of Chapters 403
and 15A of the Iowa Code, taking into account the factors set forth therein; and
WHEREAS, pursuant to notice published as required by Section 403.9, this
Council has held a public meeting and hearing upon the proposal to approve and
authorize execution of the Agreements and the foregoing economic development grant
payments, and has considered the extent of objections received from residents or
property owners with respect thereto; and, accordingly the following action is now
considered to be in the best interests of the City and residents thereof.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the performance by the City of its obligations under the
Agreements, including but not limited to the payment of the economic development
grants to the Developer and the Employer under the terms set forth in the Agreements,
be and are hereby declared to be public undertakings and purposes and in furtherance
of the Urban Renewal Plan and the Urban Renewal Law and, further, that the
Agreements and the City's performance thereunder are in furtherance of appropriate
economic development activities and objectives of the City within the meaning of
Chapters 403 and 15A of the Iowa Code, taking into account the factors set forth therein.
Section 2. That the form and content of the Agreements, including the form and
content of the Guaranty Agreement between the City and Dubuque Bank and Trust
Company attached to the Development Agreement as an exhibit, the provisions of
which are incorporated herein by reference, be and the same hereby are in all respects
authorized, approved and confirmed, and the Mayor and the City Clerk be and they
hereby are authorized, empowered and directed to execute, attest, seal and deliver the
same for and on behalf of the City in substantially the form and content now before this
meeting, but with such changes, modifications, additions or deletions therein as may be
approved by such officers upon the advice of the City Attorney, and that from and after
the execution and delivery of the Agreements, the Mayor and the City Clerk are hereby
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authorized, empowered and directed to do all such acts and things and to execute all
such documents as may be necessary to carry out and comply with the provisions of the
Agreement as executed.
Section 3. That the economic development grant payments to be made by the
City under the Agreements, the provisions of which are incorporated herein by reference,
be and the same hereby are in all respects authorized, approved and confirmed, and the
City Manager, City Clerk and other City staff be and are hereby authorized, empowered
and directed to certify the amount of the economic development grant payments to the
Dubuque County Auditor for tax increment reimbursement, and to cause such payments
to be made to the Developer and Employer as may be required under the Agreements,
at the times set forth therein, and to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the provisions of said
Agreements.
PASSED AND APPROVED this 16t" day of February, 2009.
Mayor
ATTEST:
clerk
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CIG-3
CERTIFICATE
STATE OF IOWA )
SS
COUNTY OF DUBUQUE )
I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is
a true and complete copy of the portion of the corporate records of said Municipality
showing proceedings of the Council, and the same is a true and complete copy of the
action taken by said Council with respect to said matter at the meeting held on the date
indicated in the attachment, which proceedings remain in full force and effect, and have
not been amended or rescinded in any way; that meeting and all action thereat was duly
and publicly held in accordance with a notice of meeting and tentative agenda, a copy of
which was timely served on each member of the Council and posted on a bulletin board
or other prominent place easily accessible to the public and clearly designated for that
purpose at the principal office of the Council (a copy of the face sheet of said agenda
being attached hereto) pursuant to the local rules of the Council and the provisions of
Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at
least twenty-four hours prior to the commencement of the meeting as required by said
law and with members of the public present in attendance; I further certify that the
individuals named therein were on the date thereof duly and lawfully possessed of their
respective city offices as indicated therein, that no Council vacancy existed except as
may be stated in said proceedings, and that no controversy or litigation is pending,
prayed or threatened involving the incorporation, organization, existence or boundaries
of the City or the right of the individuals named therein as officers to their respective
positions.
WITNESS my hand and the seal of said Municipality hereto affixed this 17t" day of
February, 2009.
ity Clerk, Dubuque, Iowa
SEAL
DCORNELL/ 604937.1 /MSWord\10422.087
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THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Development Agreement with Dubuque Initiatives to Rehabilitate Roshek
Building (Dubuque Building) and an Incentives Agreement with IBM
DATE: February 11, 2009
Over many months the Greater Dubuque Development Corporation, Dubuque Initiatives
and the City of Dubuque have had numerous visits from representatives of the IBM
Corporation and hours of meetings. These meeting were held at McGraw Hill, the
University of Dubuque, the Mississippi River Museum and Aquarium, the Community
Foundation of Greater Dubuque, and the Grand River Center. Participants in the
meetings included representatives of the following:
• City of Dubuque
• Clarke College
• Community Foundation of Greater Dubuque
• Dubuque Initiatives
• Dubuque Realtors
• Governor Chet Culver was also able to participate in some of the meetings
• Greater Dubuque Development Corporation
• Gronen Properties
• Iowa Department of Economic Development
• Iowa Workforce Development
• Kirkwood Community College
• Loras College
• McGraw Hill
• Northeast Iowa Community College
• Southwest Wisconsin Technical College
• University of Dubuque
• University of Wisconsin -Platteville
IBM was looking for a location for a new Technology Service Delivery Center that would
employ 1,300 people. Dubuque was in competition with cities in five other states for this
project
To implement the project Dubuque Initiatives needed to purchase the 255,000 sq. ft.
Roshek Building at 700 Locust Street to provide 130,000 sq. ft. of leasable space to IBM
to accommodate their 1,300 employees that they intended to hire by December 31,
2010. The anticipated cost of the base renovation of the building is over $24 Million,
with another $14 Million in tenant improvements ($6.5 million estimated for IBM).
The $14 million in tenant improvements will be financed by Dubuque Initiatives with the
repayment of the cost built into tenant leases, or they will be financed by the individual
tenant.
Dubuque Initiatives met with a consortium of the banks and credit unions in Dubuque to
discuss a 20-year interest only loan for $25 million to support the base building
renovation. I offered to recommend to the City Council the City would guarantee the
repayment of the loan so that Dubuque Initiatives could borrow the money. The City
Council approved at a January 26, 2009 Public Hearing the authority for the City to
issue taxable General Obligation Bonds. It is anticipated that these bonds will never
need to be issued
The City has very little exposure related to the debt because most of it will be repaid
through Federal Historic Tax Credits, Federal New Market Tax Credits, Federal Energy
Tax Credits, State Historic Tax Credits, Tax Increment Financing revenues from the
portion of the Roshek Building not leased by IBM, and building tenant lease revenues.
Based on the current financial analysis the entire debt will be retired without any City
contributions in advance of the 20-year balloon payment that would have been due in
the year 2029.
IBM Corporation plans to hire 1,300 employees over the next two years at an average
salary of over $46,000 per year (including overtime) investing over $800 million in
Dubuque over the next ten years. These are high quality information technology jobs.
Should IBM experience great success in Dubuque with this Technology Service
Delivery Center there is the possibility of even more jobs in the future. It is also
believed services and supplies needed by IBM will allow existing local companies to
grow or attract new business to Dubuque. The corporate annual payroll of over $60
million will help existing retail and commercial businesses in Dubuque. The addition of
1,300 people to the Dubuque job market will energize the local real estate market for
home sales and apartment rentals. The local colleges will benefit significantly as they
attract additional students and provide along-term source of employees for IBM. This
project will also accelerate the development of the Historic Millwork (Warehouse)
District.
I believe that IBM is the John Deere of the 21St Century. This project will make
Dubuque a destination for people educated in Information Technology helping all
companies in Dubuque. In fact, Greater Dubuque Development Corporation President
Mike Blouin reports that over 68,911 visits lasting an average of four and one-half
minutes have been made to the AccessDubuqueJobs.com web-site since the IBM
announcement on January 15, 2009.
Dubuque benefitted from some major points in the process:
• The 18,000 college students and the colleges that exist locally, and more within
100 miles like UW Madison, University of Northern Iowa and University of Iowa,
that will provide a steady stream of potential employees.
• The awards the City has won like All American City from the National Civic
League, One of 100 Best Places for Young People from America's Promise
Alliance and Most Livable City from the U.S. Conference of Mayors
• The City's Sustainability Initiative including: Environmental/Ecological Integrity,
Economic Prosperity and Social and Cultural Vibrancy.
• The upcoming redevelopment of the Historic Millwork District to provide places
for IBM workers to live and play.
• A reason cited by IBM was the extraordinary Public/Private cooperation and
partnership that exists in Dubuque
As Greater Dubuque Development Corporation President Mike Blouin has said, the IBM
project will be transformational for the Dubuque Economy.
The Iowa Department of Economic Development will be considering an application on
behalf of IBM on February 19 for financial assistance in the amount of $12,150,000.
The Northeast Iowa Community College is working with IBM to provide over $8.5 in the
Iowa New Jobs Training Program. Greater Dubuque Development Corporation, Alliant
Energy, and Black Hills Energy have also proposed various incentives totaling $52,500
collectively.
Economic Development Director Dave Heiar is recommending approval of a
Development Agreement with Dubuque Initiatives that includes:
1. Dubuque Initiatives will rehabilitate approximately 255,000 sq. ft. of the former
Roshek Building at an estimated cost of $39 million.
2. The improvements will be completed in phases, with the first phase (floors 8 and
9) being completed by July 1, 2009. The 7~" floor will be completed by
September 1, 2009. Floors 5 and 6 will be completed by November 1, 2009.
3. The City will provide Dubuque Initiatives with a 20-year property tax rebate. A
portion of the rebate (based on percent of building leased) will go to IBM. The
remainder of the rebate will be utilized by Dubuque Initiatives to repay the debt
incurred to rehabilitate the building. The portion of the rebate utilized for debt
payments will stop either at the end of the 20-year term or when the debt is paid,
whichever is first.
4. The City will provide a $10,000 Design Grant, a $10,000 Facade Grant, and a
$15,000 Financial Consultant Grant.
5. The City will provide a $25 million loan guarantee for the rehabilitation
improvements.
6. Dubuque Initiatives and the City agree to work together to fund the improvements
by applying for State and Federal Historic Tax Credits, New Market Tax Credits
and Iowa Department of Economic Development funding.
7. Dubuque Initiatives agrees to commit 10% of the net benefit of New Market Tax
Credits to an endowed fund called the "IBM Fund for Sustainable Dubuque".
Economic Development Director Dave Heiar is further recommending approval of an
Incentive Agreement with IBM that includes:
1. The City will provide a 20-year Tax Increment Financing rebate on increased
property taxes over the Urban Renewal base year of 1967. IBM will receive a
pro-rated share of this rebate based on the percentage of the building that is
leased.
2. The City will provide a $300,000 Rehabilitation loan to IBM. A $2,000 credit will
be given to offset the principle for every job created/retained during the first 2.5
years. The credit is up to the loan amount of $300,000.
3. The City will commit $125,000 annually for three years to GDDC to work
exclusively with IBM on workforce recruitment.
4. Greater Dubuque Development Corporation will provide 5 years of free
membership to AccessDubuqueJobs.com.
5. IBM will work with City to apply for various grants and tax credits.
6. The City will provide free shuttle service to the Port of Dubuque parking areas to
accommodate the influx of employees in the downtown area.
7. The City will explore additional parking (and funding) for the downtown area.
8. IBM will create 1,300 new positions by December 31, 2010 or lose the TIF
incentive.
9. IBM agrees to sign a 10-year lease plus renewal options with Dubuque Initiatives
for the Roshek Building.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~~~ ~ - ~ ~~~~~~ ~~2
~ ~`
Michael C. Van Milligen ~~~
MCVM/jh
Attachment
cc: Dianne Diggelmann, IBM VP, Dubuque Site Exec.
Velma Grant, IBM Director, EPM, Dubuque Site
Bill Callahan, Dubuque Initiatives President
Mike Blouin, Greater Dubuque Development Corp. President
Rick Dickinson, Greater Dubuque Development Corp. Executive Director & COO
Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
David J. Heiar, Economic Development Director
Bill Noth, Esq., City of Dubuque Bond Council
THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
TO: Michael C. Van Milligen, City Manger
FROM: David J. Heiar, Economic Development Director~-
RE: Development Agreement with Dubuque Initiatives to Rehabilitate
Roshek Building (Dubuque Building) and an Incentives Agreement
with IBM
DATE: February 11, 2009
BACKGROUND
The State of Iowa, the City of Dubuque, Greater Dubuque Development Corporation,
Iowa Workforce Development, the area colleges, and Dubuque Initiatives, have been
working with IBM Corporation, a world leader in the information technology industry, to
create 1,300 IT positions in the former Roshek Building.
IBM has approximately 380,000 employees worldwide and is a globally integrated
enterprise that targets the intersection of technology and effective business. The
company has exited commodity businesses like personal computers and hard disk
drives, and strengthened its position through strategic investments and acquisitions in
emerging higher value segments like service oriented architecture (SOA) and
Information on Demand. In addition, the company has transformed itself into a globally
integrated enterprise which has improved overall productivity and is driving investment
and participation in the world's fastest growing markets.
Global Technology Services (GTS) is a segment of IBM that primarily reflects IT
infrastructure services and business process services, delivering value through the
company's global scale, standardization and automation. This is the business segment
that will establish a new site in Dubuque.
The Roshek Building, located at 700 Locust Street, was originally built in 1928 as the
Roshek's Department Store, has 9 full floors, basement, and sub-basement totaling
255,000 square feet. The building lies in the heart of the downtown, right next to the
Town Clock Plaza, the center of the downtown business community and is in need of
significant rehabilitation estimated at $38 million to accommodate this major
development project. Dubuque Initiatives finalized the purchase of this building on
January 16, 2009. Renovations began in February, with the company occupying the
building in phases starting June 2009. They anticipate 350 employees in the building in
June, an additional 350 employees sixty days later, and the remaining 600 employees
early in 2010.
IBM has signed a ten year lease proposal with two 5 year incremental renewal options
conditional upon receipt of State and local incentives. Dubuque Initiatives, with the
assistance of GDDC, has met with representatives of the local banks to discuss the
need for up to a $25 million construction loan to accommodate this rehabilitation project.
Grants and tax credits are critical to making this phenomenal development project a
reality. This project would have many beneficial impacts including the restoration of a
major historic building in the downtown area, the creation of many tremendous IT
positions, and the ability to attract and retain many young professionals in Dubuque and
Iowa. This project would provide a rapid jump start to residential development in the
Historic Millwork (Warehouse) District. With the creation of 1,300 new positions, this
project would also create a ripple, or actually a wave effect on the entire downtown. It is
difficult to truly measure the total impact of adding over $60 million to the annual payroll
in Downtown Dubuque.
DISCUSSION
The Iowa Department of Economic Development will be considering an application on
behalf of IBM on February 19 for financial assistance in the amount of $12,150,000. The
Northeast Iowa Community College is working with IBM to provide over $8.5 in the Iowa
New Jobs Training Program. Greater Dubuque Development Corporation, Alliant
Energy, and Black Hills Energy have also proposed various incentives totaling $52,500
collectively.
Attached is the proposed Development Agreement with Dubuque Initiatives which
defines the commitments by both the City and Dubuque Initiatives. The following is a
summary of the major provisions of this agreement.
1. Dubuque Initiatives will rehabilitate approximately 255,000 sq. ft. of the former
Roshek Building at an estimated cost of $39 million.
2. The improvements will be completed in phases, with the first phase (floors 8 and
9) being completed by July 1, 2009. The 7th floor will be completed by September
1, 2009. Floors 5 and 6 will be completed by November 1, 2009.
3. The City will provide Dubuque Initiatives with a 20 year property tax rebate. A
portion of the rebate (based on percent of building leased) will go to IBM. The
remainder of the rebate will be utilized by Dubuque Initiatives to repay the debt
incurred to rehabilitate the building. The portion of the rebate utilized for debt
payments will stop either at the end of the 20 year term or when the debt is paid,
whichever is first.
4. The City will provide a $10,000 Design Grant, a $10,000 Facade Grant, and a
$15,000 Financial Consultant Grant.
5. The City will provide a $25 million loan guarantee for the rehabilitation
improvements.
6. Dubuque Initiatives and the City agree to work together to fund the improvements
by applying for State and Federal Historic Tax Credits, New Market Tax Credits
and Iowa Department of Economic Development funding.
7. Dubuque Initiatives agrees to commit 10% of the net benefit of New Market Tax
Credits to an endowed fund called the "IBM Fund for Sustainable Dubuque".
Also attached is the proposed Incentive Agreement with IBM. The major provisions of
this agreement are as follows:
1. The City will provide a 20 year TIF rebate on increased property taxes over the
Urban Renewal base year of 1967. IBM will receive apro-rated share of this
rebate based on the percentage of the building that is leased.
2. The City will provide a $300,000 Rehabilitation loan to IBM. A $2,000 credit will
be given to offset the principle for every job created/retained during the first 2.5
years. The credit is up to the loan amount of $300,000.
3. The City will commit $125,000 annually for three years to GDDC to work
exclusively with IBM on workforce recruitment.
4. Greater Dubuque Development Corporation will provide 5 years of free
membership to Access Dubuque Jobs.com.
5. IBM will work with City to apply for various grants and tax credits.
6. The City will provide free shuttle service to the Port of Dubuque parking areas to
accommodate the influx of employees in the downtown area.
7. The City will explore additional parking (and funding) for the downtown area.
8. IBM will create 1,300 new positions by December 31, 2010.
9. IBM agrees to sign a 10 year lease with renewal options for the Roshek Building.
Details of both agreements can be found in the attached documents.
This proposed project would provide significant help to the distressed census tract in
which the Roshek Building is located. Dubuque's Census Tract-1 has 24.9% of its
population at or below the federal poverty line and the average income in 58.9% of the
area average. The average salary for the 1,300 IT positions is expected to be over
$46,000/yr which would create an annual payroll for the Dubuque operation of $60
million. The company also provides a tremendous benefit package.
The magnitude of this proposed development is recognized by all who have had the
opportunity to work on various aspects of this project. The State of Iowa Department of
Economic Development and Governor Culver have assembled aggressive proposals to
encourage IBM to locate in Iowa.
ACTION STEP
The action step for the City Council is to adopt a resolution that approves both the
Development Agreement with Dubuque Initiatives and the Incentives Agreement with
IBM.
F:\USERS\DHeiar\IBM\DA with DI memo.doc
2/11/2009 3:15 PM
INCENTIVES PACKAGE: AGGRESSIVE INNOVATION
TO MEET THE NEEDS OF IBM
$24,500,000 Dubuque Initiatives Incentives
$5,594,447 City of Dubuque Incentives'
$13,988,600 State of Iowa Incentives
$8,500,000 Northeast Iowa Community College
New Jobs Training Program
$52,500 Additionallncentives
$52,635,547 Total Incentives
*While not a part of the Development Agreement with IBM the City intends to
pursue Federal funding to create a new parking ramp at the intersection of 5~'
Street and Bluff Street in downtown Dubuque to add an additional 900 parking
spaces one block from the Roshek Building at an estimated cost of $20,133,000.
Dubuque Initiatives Incentives
$23,827,986* Purchase and renovate the Roshek Building
$ 600,000 Estimated New Market Tax Credit allocation to establish the
IBM Fund for a Sustainable Dubuque at the Community
Foundation of Greater Dubuque
$24,427,986 TOTAL
*Repayment guaranteed by the City of Dubuque after applying all Federal and
State Tax Credits to this 20 year interest only loan from a consortium of local
banks and credit unions.
The credits and grants include Federal and State Historic Tax Credits, Federal
Energy Credits, Federal New Market Tax Credits and an Iowa Department of
Economic Development Grant.
City of Dubuque Incentives
$ 3,584,447 20 year Property Tax Rebate:
$1,828,068 to IBM
$1,756,379 to Dubuque Initiatives
$ 1,300,000 10 years of free shuttle bus service to parking in the
Port of Dubuque
$ 35,000 Fagade Planning and Design Financing Consultant
Grant to Dubuque Initiatives
$ 375,000 Greater Dubuque Development Corporation staff
person to support IBM employee recruitment efforts
$ 300,000 Forgivable loan
$ 5,594,447 Total
State of Iowa Incentives
$11,700,000 Direct Financial Assistance
$ 1,848,600 Iowa New Jobs Tax Credit
$ 50,000 Iowa Jobs Training Program (260F)
TBD Refundable Research &.Development Tax Credit
$13,988,600* Total State of Iowa Incentives
*Absence of sales tax on Computers and Peripherals saves IBM another
$500,000
Northeast Iowa Community College Incentive
$8,500,000 New Jobs Training Program
Additional Incentives
$30,000 AccessDubuqueJobs.com five year access.
$15,000 Alliant Energy: maximum reimbursement of $15,000 for
Electrical Audit
Custom rebates and "Performance Edge" incentives will be
formulated based on audit results.
$ 7,500 Black Hills Energy: up to $7,500 comprehensive Energy
Audit for natural gas usage
Will maximize custom and prescriptive rebates.
$52,500 Total Additional Incentives