Voluntary Termination of Prudential Financial, Inc. CEBA Contractzoos
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Voluntary Termination of Prudential CEBA Contract
DATE: February 24, 2009
Economic Development Director Dave Heiar is recommending approval of a voluntary
termination agreement with Prudential Insurance Company relieving them of the
commitment to create 69 additional positions in Dubuque. Prudential has not accessed
any of the offered incentives.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mi ael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THE CITY OF ~ Dubuque
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DUB E ,~~
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Masterpiece on the Mississippi
2007
February 19, 2009
TO: Michael C. Van Milligen, City Manger
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FROM: David J. Heiar, Economic Development Director` ~-., ,
RE: Voluntary Termination of Prudential CEBA Contra t
BACKGROUND
In January 2005, the Iowa Department of Economic Development awarded a $207,000
forgivable CEBA loan to Prudential Insurance Company of America for the commitment
by the company to create 69 additional positions in Dubuque. The company chose not
to draw on the loan immediately.
In the fall of 2007, the State of Iowa actually issued a check for the $207,000, but
Prudential requested that the check be held until they could reevaluate the company's
commitment. The company responsibly returned the check to the Iowa Department of
Economic Development. The City had also committed to a $62,000 loan as local match.
This loan was never processed.
DISCUSSION
Based on the current economic times, the company has requested the voluntary
termination of this agreement. Since the City was the sponsoring agency of the original
CEBA application, it is necessary for the City to also agree to the voluntary termination.
ACTION REQUIRED
For the City Council to authorize the Mayor to sign the Prudential Contract Termination
Agreement with the Iowa Department of Economic Development.
F:\USERS\DHeiar\Prudential\Termination of CEBA contract memo.doc
March 11, 2009
Ms. Yvette Darzi, Tax Manager
Prudential Financial, Inc.
213 Washington Street, 8th Floor
Newark, NJ 07102-2992
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RE: Financial Assistance Program Award -Contract Termination
Award Date: January 20, 2005
Contract Number: O5-CEBA-15
Dear Ms. Darzi:
Enclosed is a copy of the executed Community Economic Betterment Account (CEBA) contract termination
agreement between Prudential Retirement Insurance and Annuity Company and the Department for your
records.
Should you have any questions in regard to this amendment, please feel free to contact me at 515/242-4872.
Sincerely,
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Paul Stueckradt, Senior Project Manager
Legal and Compliance
PS/mm
Enclosure
cc: Mayor Roy Buol, City of Dubuque
IDED file
ChesterJ.Culver,Governor IOWA DEPARTMENT F ECONOMIC EVELOMET PattyJudge,LieutenantGovernor
Mike Tramontina, Director ® 200 East Grand Avenue, Des Moines, Iowa USA 50309 ® Phone: 515.242.4700 ® Fax: 515.242.4809 ® vwvw.iowal'rfechanging.com
CONTRACT TERMINATION AGREEMENT
PROGRAM: CEBA
CONTRACT NUMBER: OS-CEBA-1 S
AWARD DATE: January 20, 2005
EFFECTIVE DATE: November 20, 2008
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THIS Agreement is made by and between the IOWA DEPARTMENT OF ECONOMIC
DEVELOPMENT, (hereafter "Department" or "IDED"), 200 East Grand Avenue, Des Moines, Iowa 50309, an
agency of the State nFT x,a Prudentia ~ t T `-y Company, 500 fain Street,
~o.. , '::d 1 Re~.rem.,r. insurance and Annum
Dubuque, IA 52001 (hereafter "Business").
Business has requested that the Contract referenced above be terminated due to revisions which will not
allow the company to meet anticipated project milestones.
Pursuant to Article 12.3, Termination for Convenience, of the above-referenced Contract the Parties
hereby terminate this Contract as of the Effective Date stated above.
FOR BUSINESS:
Signature
FOR COM NITY:
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Signature
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Typed/printed name
t~ - ~E P~Ys,~d ~~. -E-
Title
FOR IDED:
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Michael L. Tramp ~ na
Roy D. Buol
Typed/printed name
Title
Mavor