Cottingham & Butler CEBA & EZ Amendments Resolution of SupportMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution of support for Cottingham & Butler CEBA & EZ amendments
DATE: January 11, 2010
Economic Development Director David Heiar is recommending the City Council to adopt
the resolution which approves the amendment to the CEBA and EZ agreements with
Cottingham & Butler which extends their job creation deadline by one year.
concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:lw
Attachment
cc: Dave Becker, President, Cottingham & Butler
Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
Rick Dickinson, Executive Director and Chief Operating Officer,
Greater Dubuque Development Corporation
Dubuque
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All- AmedcaCit
1 1
2007
Masterpiece on the Mississippi
TO: Michael Van Mil!igen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Resolution of support for Cottingham & Butler CEBA & EZ
amendments
DATE: January 5, 2010
The amendment is needed to extend the project completion date by one year.
Additional time was needed for Cottingham & Butler to achieve their job creation
requirements for the CEBA and EZ funds.
F: \USERS \Econ Dev \Cottingham & Butler\20100105 Council Memo for amendment.doc
Dubuque
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All- Ameica City
1
2007
INTRODUCTION
This resolution is to approve an amendment to a CEBA and Enterprise Zone agreement
with the Iowa Department of Economic Development and Cottingham & Butler
Insurance Services.
BACKGROUND
On May 7, 2007, the City Council approved Agreement Number 07- CEBA -13 with the
Iowa Department of Economic Development and Cottingham & Butler to provide
Community Economic Betterment funds for the expansion of Cottingham & Butler's
Dubuque operations. The project also is receiving Enterprise Zone benefits from
Agreement number 07 -EZ -021.
RECOMMENDATION
The recommendation is to approve the attached resolution to authorize the Mayor to
sign the Agreement Amendment.
ACTION STEP
The action step is for the City Council to adopt the attached resolution which approves
the amendment to the CEBA and EZ agreements with Cottingham & Butler.
RESOLUTION NO. 15-10
A RESOLUTION AUTHORIZING THE APPROVAL OF AN AMENDMENT
TO THE CEBA AND ENTERPRISE ZONE AGREEMENTS WITH
COTTINGHAM & BUTLER INSURANCE SERVICE.
Whereas, the Iowa Department of Economic Development's Community
Economic Betterment Account (CEBA) was designed to assist in the economic
development efforts of local jurisdictions; and
Whereas, The Department of Economic Development approved Agreement
Number 07- CEBA -13 with the City of Dubuque and Cottingham & Butler on May 7,
2007 for the expenditure of Community Economic Betterment funds; and
Whereas, The Department of Economic Development approved Agreement
Number 07 -EZ -021 with the City of Dubuque and Cottingham & Butler for the project to
receive Enterprise Zone funds; and
Whereas, Cottingham & Butler desire to amend the agreements and have
requested to extend the project by one year.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the amendment to extend the project by one year by amending
the project completion date for the Community Economic Betterment Account program
and Enterprise Zone program on behalf of Cottingham & Butler, Inc. is hereby
approved.
Section 3. That the Mayor is hereby authorized to execute the amendment and the
City Manager is hereby directed to submit said amendment to the Iowa Department of
Economic Development together with such documents as may be required.
Attest:
Passed, approved, and adopted this 19 day of J- uary, 2010.
L2A--
Jeanne F. Schneider, CMC
City Clerk
F: \USERS \Econ Dev \Cottingham & Butler \20100118 Amendment 1 reso 07- CEBA- 13.doc
David T. Resnick, Mayor Pro -Tem
BUSINESS:
MASTER CONTRACT #:
FUNDING AGREEMENT #s:
AMENDMENT #:
EFFECTIVE DATE:
THIS CONTRACT AMENDMENT 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 of Iowa and Cottingham & Butler, Inc. an
Iowa S- corporation ( "Business "), 151 West 8 300 Security Building, Dubuque, Iowa 52001.
WHEREAS, Business, by correspondence dated October 1, 2009 requested that the
Project Completion & Maintenance Dates be extended by one (1) year.
WHEREAS, the IDED BOARD approved the Business's request, effective as of the
Effective Date stated above, and
NOW, THEREFORE, the Contract referenced above is amended as follows:
1. REVISION OF EXHIBIT D, "JOB OBLIGATIONS." Exhibit D is amended to extend the
Project Completion Dates and Maintenance Dates for a one year period. Details of the
changes are reflected in the attached Revised Exhibit D which is hereby incorporated by
this reference and made a part of this Contract Amendment.
Except as otherwise revised above, the terms, provisions, and conditions of Contract
Number P0606M01054 remain unchanged and are in full force and effect:
FOR BUSINESS
SIGNATURE
David Becker, President
PRINT/TYPE NAME, TITLE
FOR COMMUNITY:
SIGNATURE
David T. Resnick, Mayor Pro -Tem
PRINT /TYPE NAME, TITLE
CONTRACT AMENDMENT
Cottingham & Butler, Inc.
P0606M01054
07- CEBAIVFGF -013 & 07 -EZ -021
Two
October 15, 2009
FOR IDED:
SIGNATURE
Fred S. Hubbell, Interim Director
Fmt. Approved 7/08
tW
Pto'
f9
Total employment at project location
Average Wage of total employment at project location
This Project has been awarded benefits from the Community Economic Betterment Account (CEBA) and Enterprise Zone (EZ)
programs. The charts below outline the contractual job obligations related to this Project.
Data in the "Employment Base" column has been verified by the Department and reflects the employment characteristics of the
facility receiving funding before this award was made. Jobs to be retained as a part of this Project must be included in these
calculations.
Data in the "Jobs To Be Created" column outlines the new full -time jobs (including their wage characteristics) that must be added
to the employment base and, if applicable, statewide employment base as a result of this award.
At the Project Completion Date and through the Project Maintenance Date, the Business must achieve (at a minimum) the
numbers found in the "Total Job Obligations" column.
Qualifying wage threshold requirement (per hr)
Benefit value (per hr)
Number of jobs at or above qualifying wage
Average Wage of jobs at or above qualifying wage
Number of jobs at or above qualifying wage w /benefits
Average wage of jobs at or above qualifying wage
w /benefits
306
90
396
$25.36
$12.41
NA
236
83
319
NA
NA
NA
NA
Total employment at project location
Average Wage of total employment at project location
Qualifying wage (per hr)
Benefit value (per hr)
Number of jobs at or above qualifying wage
Average Wage of jobs at or above qualifying wage
Number of jobs at or above qualifying wage w /benefits
Average wage of jobs at or above qualifying wage
w /benefits
Revised 8/07
EXHIBIT D — JOB OBLIGATIONS
Cottingham & Butler, Inc.
07 -CEBA -013 and 07 -EZ-021
Amended 10 -15 -2009
169
$35.80
56
Notes re: Qualifying Wages
1. If the Benefit Value was added to the base wage to meet program wage threshold eligibility
requirements, then any reduction in the Benefit Value during the life of the Contract must be
compensated for with salary to ensure that the Qualifying Wage rates are met.
2. Bonus or commission payments are not included when calculating the Qualifying Wage rate.
NA
225