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Cottingham & Butler Insurance Services, Inc., Contract Amendment Copyrighted August 20, 2018 City of Dubuque Consent Items # 14. ITEM TITLE: Cottingham & Butler Insurance Services, Inc., Contract Amendment SUMMARY: City Manager recommending approval of a resolution authorizing an amendment to Contract 15-DF-034 by and among Cottingham & Butler Insurance Services, Inc., the City of Dubuque, and the lowa Economic Development Authority. RESOLUTION Approving an amendment to the Economic Development Financial Assistance Contract by and among Cottingham & Butler Insurance Services, Inc., the City of Dubuque, lowa, and the lowa Economic Development Authority. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Cottingham& Butler Contract Amendment-NNM Memo City Manager Memo Staff Memo Staff Memo Amendmentto IEDAContract Supporting Documentation Resolution of Approval Resolutions THE CITY OF Dubuque � AIFA�erlwGh UB E '�� III► Masterpiece on the Mississippi Z°°'�w'2 7A13 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amendment to State of lowa Direct Financial Assistance Contract by and among Cottingham & Butler Insurance Services, Inc, the City of Dubuque, and the lowa Economic Development Authority DATE: August 15, 2018 Economic Development Director Maurice Jones recommends City Council approval of a resolution authorizing an amendment to Contract 15-DF-034 by and among Cottingham & Butler Insurance Services, Inc., the City of Dubuque, and the lowa Economic Development Authority. In 2018, the company had its third expansion in as many years. Each expansion has been supported by a contract with the lowa Economic Development Authority. The company and the lowa Economic Development Authority agreed to amend the 2015 contract in order to enable the 2018 commitment — amending the 2015 budget and the contract benefits. I concur with the recommendation and respectfully request Mayor and City Council approval. �� �� ��� Mic ael C. Van Milligen �� � MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Maurice Jones, Economic Development Director Rick Dickinson, Greater Dubuque Development Corporation President & CEO Dubuque Economic Development Department THE CITY OF �,.,/�,.,� SO West 13�h Street fi.i.ii� Dubuque, lowa 52001-4864 DuB E �'�'�c�" 1 I I I I I Office(563)589-4393 TTY(563)690-6678 MCiSt21'�JlECE OYL t�1E M1551551�1�11 http://www.cityofdubuque.org 200]•2012•2013 TO: Michael Van Milligen, City Manager FROM: Maurice Jones, Economic Development Director SUBJECT: Amendment to State of lowa Direct Financial Assistance Contract by and among Cottingham & Butler Insurance Services, Inc., the City of Dubuque, and the lowa Economic Development Authority DATE: August 8, 2018 INTRODUCTION This memorandum presents for City Council review and approval a resolution authorizing an amendment to Contract 15-DF-034 by and among Cottingham & Butler Insurance Services, Inc. (C&B), the City of Dubuque, andthe lowa Economic DevelopmentAuthority (IEDA). BACKGROUND Beginning in 2015 C&B established a plan to increase employment in lowa by 90 positions, to be predominantly located in Dubuque at 1000 and 1030 Main Street. The company entered into a lease agreement for approximately 10,000 square feet of space located in Dubuque; completed tenant improvements; and purchased furniture, fixtures, software, hardware and phones to accommodate the increase in employment. The company proposed to complete the hiring by March of 2018. The project cost is more than $1.2 Million. The company had applied to the lowa Economic DevelopmentAuthority for assistance in the form of grants and loans. On February 20, 2015, IEDA approved Contract 15-DF-034 with the following award: The Company is eligible for a $600,000 High Quality Jobs Program Loan ($300,000 of which is forgivable) and $305,000 in training fund reimbursementforthe 90jobs. The local match requirementwill be metwith the $150,000 loan from ECIA. The Company is contributing $485,000 in capital on the project. DISCUSSION In 2018, the company has had its third expansion in as many years. Each expansion has been supported by a contract with the IEDA. The company and the IEDA agreed to amend the 2015 contract in order to enable the 2018 commitment — amending the 2015 budget and the contract benefits. The High Quality Jobs Program award in the 2015 contract has been reduced from $600,000 to $300,000, which is now being offered as a forgivable loan. RECOMMENDATION I recommend the City Council adopt the attached resolution, approving the financial assistance contract amendment Contract 15-DF-034 by and among Cottingham & Butler, Inc., the City of Dubuque, and the IEDA. 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. 245-18 APPROVING AN AMENDMENT TO THE ECONOMIC DEVELOPMENT FINANCIAL ASSISTANCE CONTRACT BY AND AMONG COTTINGHAM & BUTLER INSURANCE SERVICES, INC., THE CITY OF DUBUQUE, IOWA, AND THE IOWA ECONOMIC DEVELOPMENT AUTHORITY Whereas, Cottingham & Butler Insurance Services, Inc. (Cottingham & Butler) and the City of Dubuque (City) entered into an Economic Development Financial Assistance Contract (the Contract) with the Iowa Economic Development Authority (IEDA) to facilitate the creation of ninety (90) full-time jobs in the City; and Whereas, Cottingham & Butler has requested an amendment to the budget and contract benefits; and Whereas, the IEDA Board approved an amendment to the Contract for the budget and contract benefits; and Whereas, the parties now desire to amend the Contract as set forth in the attached Contract Amendment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The Contract Amendment is hereby approved. Section 2. The Mayor is hereby authorized and directed to execute and the City Manager is hereby directed to submit the Contract Amendment to the Iowa Economic Development Authority together with such other documents as may be required. Passed, approved, and adopted this 20th day of August, 2018. Attest: Kevin t . Firnstahl, City Clerk Roy D. Buol, Mayor COiV�TRACT AMENDMENT RECfPIENT: Cottingham & Butler Insurance Services, Inc. CONTRACT NUMBER: '15-DF-034 AMENDMENT NUMBER: 1 EFFECTIVE DATE: October 20, 2017 THIS CONTRACT AMENDMENT is made by and between the IOWA EC�NOMIC DEVELOPMENT AUTHORITY (IEDA), 200 East Grand Avenue, Des Moines, IA 50309, and Cottingham & Butler Insurance Services, lnc. (Recipien�}, 800 Main Street, Dubuque, IA 50309, and the City of Dubuque (Community), 50 W. 13th Street, Dubuque, !A 52001. WHEREAS, the Recipient requested an amendment of the budget and contract benefits and WHEREAS, the IEDA BOARD approved the request, effective as of the Effective Date stated above, and NOW, THEREFORE, the Contract referenced above is amended as follows: 1. REVISION C)F CONTRACT PAGE 3. ��z_�����.��r�rT n�Tr�r n r n c cTcrr n�Tr�� cr�nn nnn � AWARD AMT.—FINAI�CIAL ASSISTANCE $300,000 2. REVISION OF ART(CLE 3.1, "To#a{ Award Amount." 3.1 Total Award Amount. The IEDA Board has approved an Award to the Community and Recipient from the funding sources and in the maximum amounts shown befow: PROJECT COMPLETION ASSISTANCE FORM MAXIMUM AMOUNT Higl�Quality Jobs Pi•ogratn � $��9;888 Forgivable Loan $300,000 TOTAL FINANCIAL ASSISTANCE: $� $300,000 3. REVISI�N OF DESCRIPTfON OF THE PROJECT AND AWARD BUDGET (EXHIBIT CL Exhibit C is hereby amended to reflect the revised budget and removal of the loan. Details of the change are reflected in the attached Revised Exhibit C which is hereby incorporated by this reference and made part of this Contract Amendment. Contract# 1�-DF-034 Except as otherwise revised above, the terms, provisions, and conditions of Contract Number 15 -DF -034 and related exhibits shall remain unchanged and are in full force and effect: FOPIENT• FOR IEDA: 144-1 SIGNATURE i 0 -Ly L ,,E 2N S f O PRINT/TYPE NAME, TITLE Date Az') Deborah V. Durham, Director Date FOR TH,CO MU I ITY: 0t SIGNATIE Roy D. Buol, Mayor PRINT/TYPE NAME, TITLE August 20, 2018 Date Contract # 15 -DF -034 DESCRIPTYON OF THE PROJECT AND AWARD BUDGET .(EXHIBIT C} i�.��j���€� ���c����~���.`� Name of Recipient: Cottin�ham&Butler Insur�tnce Services,Iiic. Name of Community: Community Name Cont��act Number: 15-DF-034 PROJECT DESCRIPTI�N Cottingham&Butlei•Insur•ance Services,Inc.will lease approximately 10,000 s.f.of office space,make tenant iinprovements and purchase and install ec�uipment needed for use by the new employees. AWARD BUDGET '. SOURCE QF FUNDS AMOUNT FORM USE OF FUND5 COST IEDA Programs �Land Acquisition L7(lTD Tlin.»�l.snl n��;�+��,.o ��-88;�8a � *Site Prepai•ation HQJP Financial Assistance $30Q,400 Forgivable Loan *Building Acquisition Base Rent(3 years) $400,000 Business $4�;988- 785 000 Cash/Equity Tenant Improvefnents $335,000 ECIA CaG RLF $150,000 Loan Lease Payments *Mfg Machinery anci Eqttipment Other Machinery and Equipment Racicing, Shelving,etc. �'Computer Hardware $105,000 Computer Software $180,000 *Furniture and Fixtures $150,000 Worl<ing Capital Research and Development Other(phones) $65,000 *included as capital investment if awarded tax credit program Total $1,235,404 Total $1,235,000 OTHER FUNDING SOURCE OF FUNDS TCITAL AlVIOUll�T FORM/TERM USED AS MATCH TIF Rebate Tax Abatement 260E Job Trainin $305,000 In-Kind Contributions RISE RED Other