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
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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
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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