IDED Direct Financial Assistance_Creative Frontier Inc.THE CITY OF DUbUgUe
All-America City
UB .~
1
Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: IDED Direct Financial Assistance Application for The Creative Frontier,
Inc.
DATE: December 2, 2009
The Creative Frontier, Inc. intends to relocate its operations to Dubuque. The Company
plans to acquire an existing building at 2530 Kerper Boulevard and will create 21 new
positions in the community as a result of the relocation. The Company's primary
product line consists of retractable safety gates and barriers for children and pets,
including a variety of installation accessories.
Economic Development Director Dave Heiar is recommending City Council approval of
the submission of a Direct Financial Assistance Application fora $105,000 partially
forgivable loan on behalf of The Creative Frontier, with a commitment of local matching
funds by way of a land grant of excess right-of-way along Kerper Boulevard valued at
$24,360.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
'David Heiar, Economic Development Director
THE CITY OF Dubuque
1T T~ ~ All-AmericaCiiy
L I~J 1
Masterpiece on the Mississippi
m
2007
DATE: November 25, 2009
TO: Michael Van Milligen, City Manager i
FROM: David Heiar, Economic Development Director '1
~~
SUBJECT: IDED Direct Financial Assistance Application for The Creative Frontier,
Inc.
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing
the submission of a Direct Financial Assistance application to the Iowa Department of
Economic Development (IDED) on behalf of The Creative Frontier, Inc., a manufacturer with
operations in Galena, Illinois. The application is attached.
BACKGROUND
The Creative Frontier, Inc. intends to relocate its operations to Dubuque. The Company will
create 21 new positions in the community as a result of the relocation.
The Company's primary product line consists of retractable safety gates and barriers for
children and pets including a variety of installation accessories. They manufacture these
products including some processing, final assembly, and packaging. Most of their business
is mail-order/internet based where they ship most of their products to end customers.
The Creative Frontier, Inc. has found an existing building suitable to their increased
space needs at 2530 Kerper Boulevard. The Company will be acquiring the building,
renovating the structure to fit their manufacturing needs, and purchase equipment for
their new operation.
The Direct Financial Assistance application on behalf of the company will provide financial
assistance to enable the company to relocate in Dubuque. As required by the assistance
program, the application requires a commitment of City funds to the project.
DISCUSSION
The Creative Frontier, Inc. will commit to employ 21 new employees averaging $18.28 per
hour and insurance benefits at the beginning of the project and increase to $22.02 per hour
and insurance benefits in 3 years. The Company will be investing approximately $1,293,760
to purchase, renovate and purchase needed equipment.
To assist this project, The Creative Frontier has requested acquisition of excess right of way
along Kerper Boulevard valued at $24,360 as public match for the IDED application is
required. Pending state approval of funding for this application, the City will need to hold a
public hearing prior to disposal of the city's interest in the Right-of-way. The Company
would utilize this right-of-way for parking and/or a future expansion area.
The company is also requesting Enterprise Zone Benefits amounting to:
• Sales Tax Rebate $15,855
• Investment Tax Credit $115,036
The Enterprise Zone Application will be reviewed by the Enterprise Zone Commission
at their December 7, 2009 meeting.
RECOMMENDATION
I recommend that the City Council authorize the submission of a Direct Financial
Assistance application fora $105,000 partially forgivable loan on behalf of the Creative
Frontier with a commitment of local matching funds (land grant).
This project is consistent with the City's goals to recruit businesses to expand in the
community, increase the number of good paying jobs and further diversify our economic
base.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
attachments
F:\USERS\Econ Dev\Creative Frontier\IDED APP memo.docx
RESOLUTION NO. 462-09
A RESOLUTION AUTHORIZING THE FILING OF AN IDED DIRECT
FINANCIAL ASSISTANCE APPLICATION ON BEHALF OF THE
CREATIVE FRONTIER, INC.
Whereas, The Creative Frontier, Inc. has proposed the relocation of its
operations in Dubuque, Iowa; and
Whereas, the City Council of Dubuque, Iowa has considered said proposal and
has determined that the proposed project will contribute to the local economy through
the creation of 21 new jobs for area residents; and
Whereas, the Iowa Department of Economic Development's (IDED) Direct
Financial Assistance Program was designed to assist in the economic development
efforts of local jurisdictions; and
Whereas, the City of Dubuque, Iowa is eligible to apply for funding from the Direct
Financial Assistance program.
NOW, THEREFORE, BE IT RESOLVED BYTHE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the filing of an application for participation in the Direct Financial
Assistance program on behalf of-The Creative Frontier, Inc. is hereby approved.
Section 2. That the local match of identified in the application consisting of
transferring ownership of usable right-of-way along Kerper Boulevard to the company is
hereby approved, subject to IDED application approval.
Section 3. That the Mayor is hereby authorized to execute and the City Manager is
hereby directed to submit said application to the Iowa Department of Economic
Development together with such documents as may be required.
Passed, approved, and adopted this 7t" day of Dec~i~tber, 2009.
~~~
Roy D.~ol, Mayor
Att st:
eanne Schneider, City Clerk
F:\USERS\Econ Dev\Creative Frontier\Resolution approving IDED app.doc
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life ~ changing'
Michael L. Tramontina, Director
Iowa Department of Economic Development
3usiness =inancia Assistance A» ication
Business Finance
Business Development Division
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, Iowa 50309-1819
w~w_XOw if~_chan,.o ~~. om
Telephone: 515.725.3133
1~iis;q~~~cPCa~i ~~ral; fechani~. ct~m
v. 09.01.2009
Application Instructions
To Complete Electronic Form: Click on TEXT BOX to add text. Double click on YES/NO boxes and select "Checked".
All applicants must complete the Business Financial Assistance Application and attach Qnhc those additional sections
for the components to which the applicant is applying.
Dir:c 'n n .i. 1 Ac it once-STA'~gfIOW~
^ 130% Component ^ Infrastructure Component
(no supplement) ~ (no supplement)
100% Component ^ Value Added Agriculture Component
(no supplement) Supplemental information required
^ Entrepreneurial Component (and Supplement) ^ Disaster Relief Component
Supplemental information required Supplemental information required
Ta~it4 -.STATR nfnf Tt'~WP,~
Enterprise .Zone Program (EZ)
Supplemental information required
^ High Quality Jobs Program (i-I~
(no supplement)
t Finart~)~ssict~n,,,rg- F'EDERAI,
:_
^ Economic Development Set-Aside Program (EDSA) ^ Public Faclities Set-Aside Program (PFSA)
Supplemental information required Supplemental information required
_ __
2. Please visit the IDED Web site at www.iowalifechan~g.cnm or contact IDED at 515.725.3133 to confirm that this is
the most current application version.
3. Before .filling out this application form, please read all applicable sections of the 2009 Iowa Code and Iowa
Administrative Code (rules) uytiar~:113~ C s'atP la 11Clinwal'a~rlitml
4. Only tuned nr cnn;huter_pr+;,erarerl 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.
5. Complete the applicable sections of the application fully. If questions are left unanswered or required attachments are
not submitted, an explanation must be included.
G. Use clear and concise language. Attachments should only be used when requested or as supporting documentation.
7. Any inaccurate information of a significant nature may disqualify the application from consideration.
8. The ,following must be submitted to Business Finance at IDED 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
FA =aim i ' npi~a will lint he uc~er~"f~L
Business Finance Telephone: 515.725.3133
Iowa Department of Economic Development Iisirie~efiifiiiriE~(~inui~lifFih~ri~ n~ rnm
200 East Grand Avenue
Des Moines, IA 50309-.1819
Applications are must be submitted to IDED Business Finance before 4:OOpm on the fourth Monday of
the month. '
Applications will be reviewed by the IDED Board on -the third Thursday of the following month.
IDED -Business Financial Assistance Application 2 v, 09.01.2A09
Public Records Policies
Information Submitted to IDED. The Iowa Department of Economic Development (IDED) is subject to the Open
Records law (jowa ('.nde, C'"h tam 221: Treatment of information submitted to IDED in this application is governed by the
provisions of the Open Records law. All public records are available for public inspection. Some public records are
considered confidential and will not be disclosed to the public unless ordered by a court, the lawful custodian of the record,
or by another person duly authorized to release the information.
Confidential Records. IDED automatically treats the following records as confidential and they are withheld from public
disclosure:
• Tax Records
• Quarterly Iowa Employer's Contribution and Payroll Report prepared for the Iowa Workforce Development Department
• payroll Registers
• Business Financial Statements and Projections
• Personal Financial Statements
Other information supplied to IDED as part of this application maybe treated as confidential under Iowa Code section
22.7. Following are the classifications ofrecords which are recognized as confidential under Iowa law and which are most
frequently applicable to business information submitted to IDED:
• Trade secrets [Iowa Code §22.7(3)]
• Reports to governmental agencies which, if released, would give advantage to competitors and serve no public purpose.
Iowa Code §22.7(6)]
• Information on an industrial prospect with which the IDED is currently negotiating. [Iowa Code §22.7(8)]
• Communications not required by law, rule or regulation made to IDED by persons outside the government to the
extent that IDED could reasonably believe that those persons would be' discouraged from making them to the
Department if they were made available for general public examination. [Iowa Code §22.7(18)]
Information supplied to IDED as part of this application that is material to the application and/or the state
program to which the applicant is applying including, but not limited to the number and type of jobs to be
created or retained, wages for those jobs, employee benefit information, and project budget, are considered open
records and will not be treated as confidential.
Additional Information Available. Copies of rncroa's (~,P„ Recnrd law and IDED's arlm+~+srrative n~les relating to public
records are available from the IDED upon request.
IDED -Business Financial Assistance Application 3 v, 09.01.?A09
Applicant Information
Name of Business: The Creative Frontier, Inc.
Address: 624 Spring St.
City, State & Zip Code: Galena, IL 61036
Contact Person: Marc Pichik Title: President
Phone: 815-776-9402 Fax: 815-776-9403 Email:
Federal ID Number: 753002625
NAICS Code for primary business operations: 339999
US DOT Number: n/a
lnarc@> retract-mate. corn
Does the Business file a consolidated tax return under a different tax ID number?
^ Yes ®No
If yes, please also provide that tax 1D number:
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:
If the application was prepared by someone other than the contact person listed above, please complete the following:
Name of Business:
Address:
City, State & Zip Code:
Contact Person: Tide:
Phone: Fax:
Email:
Sponsor Information
Sponsor Organization: City of Dubuque, Iowa
Official Contact (e.g. Mayor, Chairperson, etc.): Roy D. Buol
Address: 50 West 13thStreet
City, State & Zip Code: Dubuque, IA 520U1
Phone: 563-589-4110 Fax: 663-589-4149
Title: Mayor
Email: rdbuol~cityofdubuque.org
If IDED needs to contact the sponsor organization with questions, should we contact the person listed above?
^ Yes ~ No, please contact the following person:
Name: David Helar Title: Economic Development Director
Address: 50 West 13~h Street
Ciry, State & Zip Code: Dubuque, IA 53001
Phone: 563-589-4393 Fax: 563-589-1733 Email: dheiar~Cityofdubuque.org
If necessary, please list information on additional sponsors in an attachment.
IDED -Business Financial Assistance Application 4 v, 09.01.2A09
Certification ~ Release of Information
I hereby give permission to the Iowa Department of Economic Development (IDED) 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 IDED state tax infommation pertinent to the Business' sales and use tax, and state tax credits claimed.
I understand that all information except areas noted as confidential submitted to IDED related to this application is subject
to Iowa's C-pen Record Law (Iowa Code, Chapter 22).
I understand this application is subject to final approval by IDED and the Project may not be initiated until final approval is
secured.
I understand that IDED reserves the right to negotiate the financial assistance. Furthermore, I am aware that financial
assistance is not available until an agreement is executed within a reasonable time period following approval.
I hereby certify that all representations, warranties, or statements made or famished to -IDED 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.
F~ojrfthe B(usi~ness;
Signature
Marc Pichik President
Name and Title (typed or printed)
For the Sponsor(s):
Date: November 23, 2009
_._.
__ _- __
Signature Date
Icy I~: Bucil::2y1~ ,:;
Name and Tide (typed or printed)
Please use the following if more than one sponsor is required. (For example, use this if a signatu~ fmm the local Enterprise Zone Commission is
required in addition to the signature from the Mayor of the sponsoring city.)
__
Signature Date
Name and Tide (typed or printed)
IDED will not provide assistance in situations where it is detemmined 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, IDED may initiate legal action
to recover incentives and assistance awarded to the Business.
IDED -Business Financial Assistance Application 5 v, 09.01.2009
Business Information
Provide a brief description and history of the Business. Include information about fire Business' products or services and its markets
and/or customers.
Our primary product line consists of retractable safety gates and barriers fox children and pets uicluding a variety of installation
accessories. We manufacture these products including some processing, final assembly, and packaging. Most of our business is mail-
order/internetbascd where we ship most of our products to end customers. We also have a growing wholesales business selling
product to retail organizations and distributors. Competitors do exist but mostly from foreign locations including Chinese based
products. No direct competitors exist within IA to my knowledge. The company objective in terms of product development is to
continue to focus on expanding and maturing the Retract-A-Gate product line along with developing innovative high volume consumer
products.
Business Structure:
Cooperative Corporation Iamited Liability Company ^ Not for Profit
] Partnership ~ S-Corporation ~ Sole Proprietorship
State of Incorporation: NV
Identify the Business' owners and percent ownership: Marc Pichik
Does a woman, minority, or person with a disability own the Business? Yes No
If yes, is the Business certified as a Targeted Small Business? Yes No
List the Business' Iowa locations and the current number of employees at each location. Na
What is the Business' worldwide employment?:Please include employees of parent company, subsidiaries, and other affiliated entities in
this figure. 5
Protect Information
Project Street Address: 2531) Kerper
Project City: Dubuque Project County: Dubuque
Type of Business Project:
^ Startup ] Expansion of Iowa Company
^ New Location in Iowa ~ Relocation from another State
Briefly 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 project involves moving our business from Galena, IL to the proposed location. The location has an existing building
located in an Enterprise Zone. There will be required remodeling to the interior of the building to accommodate our needs. Amore
detailed project expense summary is listed below.
Project Timeline
Short list locations
Negotiate temps of sale and finalize purchase agreement (pending local
and state incenrives)
Complete design and layout work (pending local and state
incentives)
Activity Completion Date
10/1/09
12/17/09
1/15/10
Put project to bid and select contractors (pending local and state 2/15/09
incentives)
Project complete (pending local and state incentives) 5/30/10
IDED -Business Financial Assistance Application G v, 09.01.2009
Please identify the project management for the project location and experience. PM to be uiterviewed and hired upon finalizing
property purchase agreement
Has any part of the project started? ^ Yes ~ No
If yes, please explain.
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. None
Will any of the current Iowa employees lose their jobs if this pmject does not proceed in Iowa?
^ Yes ~ No
if yes, please explain why and identify those jobs as "retained. jobs" in the Project Jobs section.
Prpject sudQet
___ __
AMOUN'T' BUDGE'x'>EaD
Use of Fund .. Cost- . ,. - . ~ _ Source Comtnltment Status
Land Atduisition _ _ _. ___ . 24,36pi ,, _. _ .. Offec from Citq_. _ .._.
Building Acquisition "': ; ... ,730;000 ~~ N~Rotiatint; ....
$uildin~'Construcfion _ _ _ n/a; . _ _ n/a _ _ __
Builditi~:RemodelinA ,_ .. 3t3~500.~ Not bt~n
M£g. Machinery and Ettuii?. ' 43,000':'. Not beEtua
Other Machinery and: . . 31;000': Not begun
~lw~•
Racking; Shelvin>, etc......... 3,000;; Not beilitn
Computer Hardware 8,500:; Not b~j~itn
-
Computer Software ~ _ 1~.bOQ,i _
Not bekiin
Furniture anal Fixtures _ ... _........10.000.:' Not beiriin
1Racking, Workiri(Z Caaital ,`
shelving and _Research and Development
rob Training _. fl$,400!i Not begun
conveyor
equipment Total $1.293.7G0 used
in distribution center projects only
Does the Business plan to ig~gg the facility? ^ Yes ^ No If yes, please provide the Annual Base Rent Payment (lease payment
minus property taxes, insurance, and operating/maintenance expenses) and the length of'the lease agreement.
:, : .
PROPOSED FINANCING ~
Source of Funds Form of Funds Conditions/Additional
Information
not us o " Amount
(LisEtaz b rc~
ec
s
P a Rate and
Kmd, Term
~"O
~
o Commitm
ant Status Include whedfiinds viill be disbursed;
r
financinp~
o
f d bona
ti
n, et [f loan, whether payments are a level
term, balloon, etc
Sourced: IDED*"' $105;000 ° Fo~divable loan
Source $: Oilier State __ _ ____
(Community College,
V
~
ocal Gov
Souice C:
mmenc $24,350 Land grant _ land free based on job
creation
Source D: Business.... $16,440
Sour¢e E: other Private Sourcea ~582~200 eatlk fnanelna
Source F: SBA $465,760 SBA flnanbing_
Source ~,: I . ":. _ _ ..
760
$
293 '
TOTAL ,.
1.
. :
'~ Identify the collateral used to secure IDED funds: The building may be used as collateral via a 2~ mortgage as required
IDED -Business Financial Assistance Application 7 v, 09.01.2009
TAX CREDITS AND INDIRECT FLIVANCING
Source of Funds Amount Descrvtion
Investment Tax Credit $115. ,U36
Sales, Service 8t Use Tax Refund $15,855
Doubled Research Activities Credit
Supplemental Withholdci~ ,
[-9cal Property:Tax 1?xemPtion
Tax Increment Financing
_...,.
.. _ _:
260E )ob Trainiz}&:Funds $98~7U0. -
In-kind Contribution
Other
TdTAL _ _ - $229,5J1
-What measures were analyzed to determine the amount and form of assistance Comparable tri-state area properties were
evaluated and requirements determined based on competitive offers. Property costs, labor costs, property tax costs and other location
specific costs and benefits were evaluated to determine the incentives requested above.
Is the Business actively considering locations outside of Iowa? ~ Yes ^ No
If yes, where and what assistance is being offered? Other locations were part of the original analysis before also considering an
Iowa location. Ultimately the Company narrowed the selection process to sites in Illinois, Wisconsin and Iowa. The other primary
locations being considered at this time are:
Wisconsin: 311 East Monroe, Cuba City and 1200 S. Main Street, Cuba City
Illinois: One Commercial Drive, Hanover
There are three general justifiable reasons for assistance. Check. the box next to the reason why assistance is PP~P~ to complete this
project.
^ Financing Gap -The Business can only raise a portion of the debt and equity necessary to complete the project. A
gap between sources and uses exists and state and/or federal funds are needed to :fill the gap.
^ Rate of Retum Gap -The Business can raise sufficient debt and equity to complete the project, but the returns are
inadequate `to motivate an "economic person" to proceed with the project. Project risks outweigh the rewards.
Location Disadvantage (Incentive) -The Business is deciding between a site in Iowa (site A) and a site in another
state (site B) for its project. The Business argues that the project will cost less at site l3 and will require a subsidy to equalize
costs in order to locate at site A. The objective here is to quantify the cost differential between site A and site B.
IL, WI, and IA were considered as potential locations for our business expansion. Each location, depending on the
municipality involved, is offerng grants, tax abatements, education grants, quantity of employee .grants/forgivable loans, as
well as Enterprise Zone initiatives (Hanover, IL and Dubuque, IA). Heavily reduced or near-zero cost city owned property is
also being offered in some locations. Revolving loans offering fixed and reduced rate financing is also available in most
competing locations as well.
Dubuque has a financial disadvantage of approximately $265,000 to $380,000 when compared to other locations in the tri-state
area. The largest share of the difference comes from lower property taxes and lower cost of building acquisition than other
surrounding locations.
Based on these economic disadvantages and in order to help offset them, we would like to request the following from the city
of Dubuque and/or IDED or additional incentives as you see fit:
1) 100% forgivable loan in the amount of $5000 per new job brought to or generated in Iowa
2) City of Dubuque granting a no-cost transfer of usable street easement to allow for parking for future property expansion
3) Job training funded by the state on a per job basis
4) Property tax abatement or assessment relief for this project as provided Eor under Iowa Code 427B.1 which grants
exemption from property tax for appropriate manufacturing projects as approved by IDED and the city council.
IDED -Business Financial Assistance Application 8 v. 09.01.2009
Project Jobs
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 e]itniuated
nr mnvP to another state if the project does not proceed in Iowa) For jobs to be created, include the °""'"'6 and Etnalhouriy wage
rate. For retained jobs, include the G.uuent. hourly wage rate.
Is the hourly wage rate based on a 40 hour work. week, 52 weeks per year? ~ Yes ^ No
None of the jobs listed below would be temporary or part time work. All jobs would be based on full, year-round employment.
Salaried or commissioned employees will not be based on solely a fixed hourly wage.
If no please explain:
Full-Time CREAi EL ,Toby over a 3 Year time frame (4troiectlcins)
.job Title Number of Starting Wade Wage at End of Year
CREATED Lobs _ Three
Manufacturing Tech IiI 2 18.25 22.0
Manufacturing Tech [I 4 1G.25 18.50
::
Manufacturing Tech I
5
13.25 _
.
17.85
Customer Service 3 13.25 _ 17.85-
Customer 2 15:25 17.85
Service/Admin /Accounting
Manaeement 3 _ 25.00-35.00...__.... _ _ _ 30.00-40.00_..
Sales/Marketintt 2 _ .._ _ 2Q00 30.00 ,. ..- _ .-. ..
Employee Benefits
__
.Please ideatify allempl~gee benefits ,._,. y:ded by and~aid far (tn full or in mart bV-the Business.
`- Total Annual boat Portion of Total
Employee (show on a per Mnual Cost Paid Plan Provisions
Benefits Provided employee basis) by the Buaineea (Indude coins
by BUatneSa urance °/q office visit co-
Employee Family Employee Family Deductible payments, annual out of-pocket
maximums, face,amounts~etc.).._.__.
' lmpooyee X500 See ettache•d plans for full details
Medical Insurance $2996.98 $7328.98 $2397.50
Dental Insurance $638.00 $1560.00 $508.80
vision Insurance
__
Life Insurance
Short-term
Disability
Long-term
Disability
$3683.48 Family ;1000
Employee q~8
$780.00 Family n/a
Emdloyee _. , .
Family
Delta Dental
HSA 5000 plan from Blue Cross
Health Savings $~ 519.92. $3742.44 $1367.93 $2608.133 131ue Shield. $500 contribution to
Account employee wellness/HSA account
as additlonel option to employee
_ F~ealth Insurance ?lan
The Creative Frontier; Inc. offers an employee health insurance and benefits plan plus medical payments 'and an option for a Health
Savings Account. The plan was new for the end of 2008 and plan terms are currently being revised with a new benefit structure to be
defined by the end of 2009. See the above figures and attached plans for the current proposed stmcture.
Does the Business offer a pension plan, 401(k) plan, and/or retirement-plan? ~ Yes ^ No
IDED -Business Financial Assistance Application 9 v, 09.01.2009
If yes, please indicate the amount contributed on a per employee basis by the Business to the plan for the last three years. For
401(k) plans, please provide information on the company match and indicate the average annual match per employee (show
average as a percenta~ie of salatyl.
Year Ending Average Actual Match
per Emnlovee (°loY
Three :year AverAte:
Plan new in 2008
2008 4%
2009 4%
Does the Business offer aprofit-sharing plan? ~ Yes ^ No
If yes, please indicate. total amount paid out each year for the past three years and then, determine the average annual bonus or
contribution per employee for that thn:e year period.
Average Actual Share
Yeaz Ending
per Employee. ($)
Three-vearAveratte;- ; __-------- - - -- - - -
Plan new in 2008
2009 contributions to be made to all eligible employees
IDED -Business Financial Assistance Application 10 v. 09.01.2009
Business Taxes
IDED is required to calculate the return on state and local government investments in this project. Data from other parts of the
application will be combined with the estimates requested below to calculate the required return on investment information. Please read
the following directions carefully:
• IDED is asking for a best P4n~ on the increase 1n taxes associated with. phis project.
• Estimates should only include the expected i^rreacP in tax liability resulting from this pmject.
• At minimum, IDED needs estimates for the first three years of the project.
•
• For partnership forms of ownership (e.g. lunited partnerships, s-corporations, LLC, etc.), please estimate the partners'
increase in Iowa tax liability due to this project.
• Sales and use taxes refer to the taxes paid on materials, etc. that the Business purchases, uni taxes you collect from
sales to your customers.
• Applicants will not be held to these numbers with respect to any award from. or contract with IDED.
• This page of the application will automatically be treated as confidential.
Increase in Tax Collections Associated with this Project
_.
3 Year 4 Year S
. State Business Taxes Year 1 Year 2 Year
State Corporate Income Tax* 0 0 0
State Business Sales and Use Tax $7001 $1000 $12001
•.
* Insurance. Companies: Provide Jtate Insurance Premium Tax
1- NOTE: A majority of the,company's sales (90+ percent) would be shipped outside the state of Iowa to most North American
Locations as well as potential new markets in Europe
Local Business Taxes Year 1
Local Real Estate Property Tax $24,000
Local Option Sales Tax _ _.... $280
Year 2 Year 3 Year 4
$25,000 $28,000
....$400 $480 __ _
Year 5
CONFIDENTIAL
IDED -Business Financial Assistance Application 11 v, 09.01.2A09
Attachments
Please attach the following documents:
Al Business Plan
At a minimum, include:
• Marketing study
• Feasibility study
• Projected profit and loss statements for three years into the future
• Project budget
• Production operations
• Management structure
• Personnel needs
• Descriptions of product or process
• Status of product/process development
• Patent status (if applicable)
(Any information outlined above not included in the business plan should be submitted as supplemental information via a
separate attachment.)
A2 Copies of the Business' Quarterly Iowa Employer's Contribution and Payroll Report Summary Page (Page 1) fox the
past year and a copy of the most recent payroll report for one ~ay period. The copy of the most recent payroll report for one
pay period must be in Excel format and include the following mforrnation:
~ Company name, date of payroll and source of;payroll information
• Employee name and/or employee identification number
• Current hourly wage - do not include bonuses or other benefit values
• Indicate if the employee is full time (40 hours per week, 52 weeks per year) or part time.
A sample Excel spreadsheet can be found at http:// W W W.iowalifechanging.com/applications/bus_dev/payroll_template.xls
A3 Affidavit that states the Business has not, within the last five years, violated state or federal statutes, Hiles, and. regulations,
including environmental and aiorker safety regulations, 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
found at http://www.iowalifechanging.com/applications/bus_dev/sampleaffidavit.doc.
A4 Financial Information (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.
CJWA
1 fe changing
IDED -Business Financial Assistance Application 12 v. 09.01.2009
Attachment A3
Affidavit
State of Iowa
County of Dubuque
I, Marc Piehik, depose and saythat I have examined the following statement and have fol~nd it to
the best of my knowledge to be accurate and true.
The Creative Frontier, Inc. has not, within the las# five years, violated state or federal statutes,
rules, and regulations, including environmental and worker safety regulations, or, if such violations
have occurred, that there were mitigating circumsfanees or such violations did not seriously affect
public health or safety or the environment.
I further depose that the signature b' how is my".; _ • 'proper signature.,
Dated, 11!0612009 ~ ` ~ ri - ••~~.:~~ ~ " _
Signature
Subscribed and sworn to before me on
s 6~ da ; of N ember 20U9
a ' r ' ~' ,fq~~t (Notary Public)
` _ --,County
My commis~,_ n xpires on ~3~ib
~"' ~r~,• BF~~NOA'FUC~L5At+16
~ l COMMIu51ON Nd y4s681
•~ hlY CpMMISSlON EXpIRliS
~--
~ ~/~/~ Enterprise Zone Program
l r f~~ c h a n g i n~g ~ Applic~t~on Supplement
In which Enterprise Zone will this project occur (include the zone's name, number, size in acres, and date certified)?
Please list any additional requirements adopted by the local Enterprise zone Commission and how the Business will
meet each requirement.
Attachments
The following documentation must also be subrnltted:
1. Leal descri~tton of;thel~usirtess side ouwkijeh the:~xojectwtll occur
Lot' o{~J,ot 2 of ~qt 2p~t ~,p~:T~ot ~ el'$loc~:~, and I:at 2 0~~..ot.A of L.ot 2`gf L-ot~ of lot l pf ~l4ck a,
inf~veX Fxoint Siibdiv~sidn No. ~~ir'the C:itp of Dubuque, Iowa; accQ~d1'tig tci the xGCOxded dates t~gz~4f
2. Detailed map (no larger than 11"x17") showing the business site in relation to the boundaries of the certified
Enterprise Zone
3, Proof that the local Enterprise Zone Commission meeting, during which this applicadon was approved, was ~
open to the public (i.e. public notice which was published and/or posted)
r
4. Meeting minutes from the .local Enterprise zone Commission meeting, during which this application was
approved l
f
5. Resolution by the local Enterprise Zone Commission approving this application y
k
v. 07.01.2009
Enterprise Zone Map
2530 Kerper