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Iowa Economic Development Administration (IEDA)_Crown Holdings, Inc. Copyrighted July 15, 2019 City of Dubuque Action Items # 3. ITEM TITLE: lowa Economic DevelopmentAdministration (IEDA) application for Crown Holdings, I nc. SUMMARY: City Manager recommending that the City Council adopt a resolution approving the lowa Economic Development Authority Business Financial Assistance Application on behalf of Crown Holdings, Inc. and Subsidiaries to establish operations in the City of Dubuque through a lease of an existing building owned by the Hodge Companies in Dubuque Industrial Center West. RESOLUTION Authorizing the filing of an application for State Business Financial Assistance on behalf of Crown Holdings, Inc. and subsidiaries SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt Resolution(s) ATTACHMENTS: Description Type Crown Holdings IEDAApplication-MVM Memo City Manager Memo Staff Memo Staff Memo IEDAApplication Supporting Documentation Resolution of Approval Resolutions Dubuque THE CITY OF � uI�AaMca cih DuB E � � I � � I Maste iece on the Mississi i Zoo�•zoiz•zois YP pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: lowa Economic Development Authority Business Financial Assistance Application for Crown Holdings, Inc. and Subsidiaries DATE: July 11, 2019 Economic Development Director Jill Connors recommends the City Council adopt a resolution approving the lowa Economic Development Authority Business Financial Assistance Application on behalf of Crown Holdings, Inc. and Subsidiaries to establish operations in the City of Dubuque through a lease of an existing building owned by the Hodge Companies in Dubuque Industrial Center West. The proposed project would add 42 jobs. For this $4,880,670 million project, the company is applying to the lowa Economic Development Authority for $239,567 in tax credits and refunds and a forgivable loan of $250,000. The local match for the state assistance package will be provided through a $200,000 loan from ECIA Business Growth. Crown Holdings, Inc. ("Crown") is a leading manufacturer of packaging for consumer products. Crown manufactures packaging for aerosol cans, beverages, food, promotional items, goods in transit and other various products. Crown is a Fortune 500 company with operations in 47 countries, employing over 33,000 people with net sales of $11.2 billion. Crown was founded in Baltimore in 1892 and has grown to operating 241 manufacturing plants and sales and service facilities throughout the world today. Crown is headquartered in Yardley, Pennsylvania. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Jill M. Connors, Economic Development Director 2 Dubuque Economic Development Department THE CITY OF .� 5o West 13�^Street AIFMersality Dubuque,lowa 52001-4864 D� L E � � ��� � � Office(563)589-4393 TTY(563)690-6678 http://www.cityofd u buq ue.org 2007•2012 Masterpiece on the Mississippi �,3.Zo„ TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director SUBJECT: lowa Economic Development Authority Business Financial Assistance Application Crown Holdings, Inc. and Subsidiaries DATE: June 29, 2019 INTRODUCTION This memorandum presents for City Council review and approval a resolution authorizing the submission of an lowa Economic Development Authority Business Financial Assistance Application by Crown Holdings, Inc. and Subsidiaries to the lowa Economic Development Authority. BACKGROUND Crown Holdings, Inc.("Crown") is a leading manufacturer of packaging for consumer products. Crown manufactures packaging for aerosol cans, beverages, food, promotional items, goods in transit and other various products. Crown is a Fortune 500 company with operations in 47 countries, employing over 33,000 people with net sales of$11 .2 billion. Crown was founded in Baltimore in 1892 and has grown to operating 241 manufacturing plants and sales and service facilities throughout the world today. Crown is headquartered in Yardley, Pennsylvania. DISCUSSION Crown is considering opening operations in Dubuque. The company would lease 111 ,000 square feet in an existing building at 7500 Chavenelle Road in the Dubuque Industrial Center West. Transfer of the existing equipment and acquisition of new equipment is estimated to be a $5 million investment. In addition to the physical improvements, Crown anticipates creating Forty-Two (42) full- time permanent jobs with highly competitive annual and hourly wages. For this $4,880,670 million project, the company is applying to the lowa Economic Development Authority for $239,567 in tax credits and refunds and a forgivable loan of $250,000. Additionally, the Northeast lowa Community College will provide $484,864 in job training funds, and $77,112 in New Jobs Tax Credits. The local match for the state assistance package will be provided through a $200,000 loan from ECIA Business Growth. RECOMMENDATION/ ACTION STEP I recommend that the City Council adopt the attached resolution approving the lowa Economic Development Authority Business Financial Assistance Application on behalf of Crown Holdings, Inc. and Subsidiaries to establish operations in the City of Dubuque. The proposed project would add 42 jobs and promote the City's goal of attracting and expanding business to add to the economic base. 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. 267-19 AUTHORIZING THE FILING OF AN APPLICATION FOR STATE BUSINESS FINANCIAL ASSISTANCE ON BEHALF OF CROWN HOLDINGS, INC. AND SUBSIDIARIES Whereas, Crown Holdings, Inc. and Subsidiaries has proposed making a Four Million Eight Hundred Eighty Thousand Dollar ($4,880,000.00) investment in the relocation of its operations to a leased space of 111,000 square feet in an existing building at 7500 Chavenelle Road in the Dubuque Industrial Center West in the City of Dubuque, Iowa (the Project); and Whereas, the City Council of the City of Dubuque, Iowa has considered the proposal and has determined that the Project will contribute to 'the local economy through the creation of Forty -Two (42) full-time jobs in the City; and Whereas, financial assistance from the Iowa Economic Development Authority is designed to assist in the economic development efforts of local jurisdictions; and Whereas, the Iowa Economic Development Authority has requested execution of an Economic Development Assistance Contract in order to finalize incentives and document associated terms for the Project; and Whereas, the City Council finds that the filing of an Application for participation in the Iowa Economic Development Authority's Financial Assistance Program on behalf of Crown Holdings, Inc. and Subsidiaries, a copy of which is attached hereto, should be hereby approved. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: Section 1. The filing of an Application for participation in the Iowa Economic Development Authority's Financial Assistance Program on behalf of Crown Holdings, Inc. and Subsidiaries., is hereby approved. Resolution No. 267-19 Section 2. The Mayor is hereby authorized to execute and the City Manager is hereby directed to submit the Application to the Iowa Economic Development Authority together with such other documents as may be required. Passed, approved, and adopted this 15th day of July, 2019. Attest: KetGin S. Firnsta I, City Clerk 2 (9 oy D. Buol, Mayor i w,o,� Debi V. Durham, Director lowa Economic Development Authority Business Financial Assistance Application Business Finance - Business Development Division lowa Economic Development Authority 200 East Grand Avenue Des Moines, lowa 50309-1819 iowaeconomicdevelopment.com Telephone: 515.348.6153 Email: businessfinance(a�iowaeda.com Application Instructions To Complete Electronic Form:Click on TEXT BOX to add text. Double click on YES/NO boxes and select"Checked". 1. All applicants must complete the Business Financial Assistance Application and attach o�those additional sections for the components to which the applicant is applying. STATE of IOWA— Financial Assistance Proqram High Quality Jobs Program (HQJ) � Tax Credits � Direct Financial Assistance 2. Before filling out this application form, please read all applicable sections of the lowa Code and lowa Administrative Code (rules). https://www.leqis.iowa.qov/law/administrativeRules 3. Only tvped or computer-qenerated 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. 4. Complete the applicable sections of the application fully. If questions are left unanswered or required attachments are not submitted, an explanation must be included. 5. Use clear and concise language. Attachments should only be used when requested or as supporting documentation. 6. Any inaccurate information of a significant nature may disqualify the application from consideration. 7. The following must be submitted to Business Finance at IEDA 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 Facsimile copies will not be accepted. Applications must be submitted to IEDA Business Finance before 4:00 p.m. on the fourth Monday of the month. Applications will be reviewed by the IEDA Board on the third Friday of the following month. Public Records Policies During the application process, the information submitted by you to IEDA is exempt from disclosure under the "industrial prospects" exemption found in Section 22.7(8). However, once you receive an award, the industrial prospects exemption no longer applies and all documents submitted and generated during the application and negotiation process become public records under lowa's Open Records Law(lowa Code, Chapter 22), unless 1) The information belongs to one of the classes of records automatically treated as confidential; or 2) You have applied for and received written notice that your information will be treated as confidential. Automatically Confidential Records IEDA automatically treats the following records as confidential and will withhold them from public inspection even without a request for confidential treatment: • Tax Records and Tax Liability Information • Quarterly lowa Employer's Contribution and Payroll Report prepared for the lowa Workforce Development Department • Payroll Registers • Business Financial Statements and Projections (unless those statements are already publicly available elsewhere, e.g., 10-K filings) • Personal Financial Statements Exemptions to the Open Records Law If you wish to have additional information treated as confidential, you must fill out the confidential treatment request form. This form is available by request. Under the Open Records Law, IEDA may lawFully treat certain information as confidential if that information falls within an exemption to the Open Records Law. The following exemptions represent records which may lawFully be treated as confidential under the Open Records law and which are most often applicable to the information submitted to IEDA: • Release of information would give an unfair advantage to competitors — lowa Code Sec. 15.118 • Trade secrets — See lowa Code section 22.7(3), see also lowa Code Ch. 550 • Information on an industrial prospect with which the IEDA is currently negotiating — See lowa Code section 22.7(8) • Communications not required by law, rule or regulation made to IEDA by persons outside the government to the extent that IEDA could reasonably believe that those persons would be discouraged from making them to IEDA if they were made available for general public examination — lowa Code section 22.7(18) Non-Confidential Information Information that is submitted to IEDA as part of the application process or that is contained in a contract for program benefits is generally considered material to the eligibility requirements of the program or to the amount of incentives or assistance to be provided. Such information is generally not given confidential treatment. Such information includes but is not limited to, the number and type of jobs incented, the wage levels for the incented jobs, your company's employee benefit information, and your project budget. Additional Information Available. Copies of lowa's Open Record law and IEDA's administrative rules relating to public records are available from the IEDA upon request. SECTION A Applicant Information Date Application Submitted: 6/28/19 1. Name of Business: Crown Holdings, Inc. and Subsidiaries 2. Entity Name(s) for contracting (please include all that are involved in proposed project): Crown Cork & Seal USA, Inc. 3. Address: 770 Township Lane Road 4. City, State &Zip Code: Yardley, PA 19067 5. Contact Person: Joseph C. Pearce Title: Vice President Corporate Tax 6. Phone: (215) 689-5100 Fax: Email: Joe.Pearce@crowncork.com 7. FEIN: 75-3099507 8. Please indicate your tax period end date: 12/31 9. NAICS Code for primary business operations: 332431 10. US DOT Number: 11. Does the Business file a consolidated tax return under a different tax ID number? ❑ Yes (If yes, please also provide that tax ID number) � No a. 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: 12. If the application was prepared by someone other than the contact person listed above, please complete the following: Name of Business: PricewaterhouseCoopers LLP Address: 300 Madison Ave City, State & Zip Code: New York, NY 10017 Contact Person: Jamie PomponiTitle: Director Phone: (914) 420 9381 Fax: Email: james.pomponi@pwc.com $pO11SOC �IIfOCCT12t1011 (A sponsor organization is a city or county) 13. Sponsor Organization: City of Dubuque 14. Official Contact (e.g. Mayor, Chairperson, etc.): Roy Buol Title: Mayor 15. Address: 50 West 13th Street 16. City, State &Zip Code: Dubuque, lowa 52001 17. Phone: 563 589-4000 Fax: Email: 18. If IEDA needs to contact the sponsor organization with questions, should we contact the person listed above? ❑ Yes � No, please contact the following person: Name: Jill Connors Title: Economic Development Director Address: 50 West 13th Street City, State & Zip Code: Dubuque, lowa 52001 Phone: Fax: Email: jilconno@cityofdubuque.org If necessary, please list information on additional sponsors in an attachment. SECTION B Business Information 1. Provide a brief description and history of the Business. Include information about the Business' products or services and its markets and/or customers. Crown Holdings, Inc. ("Crown") is a leading manufacturer of packaging for consumer products. Crown manufactures packaging for aerosol cans, beverages, food, promotional items, goods in transit and other various products. Crown is a Forfune 500 company with operations in 47 countries employing over 33,000 people and net sales of$112 billion. Crown was founded in Baltimore in 1892 and has grown to operating 241 manufacturing plants and sales and service facilities throughout the world today. Crown is headquarfered in Yardley, Pennsylvania. Crown provides packaging products for markets such as beverages, food, general industrial, health and beauty, luxury goods, metals and promotional goods. The primary packing products include steel and aluminum cans for food, beverage, household and other consumer products; glass bottles for beverage products; and metal vacuum closures, steel crowns and caps. The primary regions served are the Americas, Europe, and Asia Pacific. Crown is a leader in the packaging industry. To deliver continuous improvement, Crown created an integrated, global approach that recognizes the interaction of every function and activity. By integrating systems that increase the effectiveness of Crown's people, ideas, processes and suppliers, Crown strives to keep defects, complaints and impact on the environment to an absolute minimum. Crown is an exceptional employer that deeply values its employees. Crown understands the direct impact that satisfied employees can have on the company's success and growfh. Crown's goal is to provide employees with the programs they need to balance personal and professional responsibilities. With this in mind, Crown has developed one of the best total compensation programs in the packaging industry. Crown offers competitive salaries, comprehensive healthcare and income protection benefits, three retirement plans and paid time off. Crown encourages the best and brightest talent to share its future. 2. Business Structure: ❑ Cooperative � Corporation ❑ Limited Liability Company ❑ Partnership ❑ S-Corporation ❑ Sole Proprietorship 3. State of Incorporation: Pennsylvania 4. Identify the Business' owners and percent ownership: • Vanguard Group, Inc. —8.65% • FMRLLC-5.48% • GI Global Investments, Inc. —5.12% • BlackRock, Inc. -5.10% • Edge Point Investment Group, Inc. —5.03% • All other owners— less than 5% each 5. Does a woman, minority, or person with a disability own the Business? ❑ Yes � No 6. List the Business' lowa locations and the most current number of employees at each location. No current lowa locations 7. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and other affiliated entities in this figure.) 33,000 Project Information Project Street Address: 7500 Chavenelle Road 8. Project City&Zip Code: Dubuque, lowa 52002 Project County: Dubuque 9. Type of Business Project: ❑ Startup ❑ Expansion of lowa Company � New Location in lowa 10. Does the project site qualify as a"Brownfield" or"GrayField" site? ❑ Yes � No If yes, please explain and document as Attachment A6. 11. 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.) Crown currently has a food packaging operation in Omaha, Nebraska. Crown is considering moving the packaging operation to a new location. One location under consideration is Dubuque, lowa in Dubuque County. Crown is considering leasing 111,000 square feet in an existing building. The lease would be for 10 years. The operations in the new location would continue the food packaging that is currently occurring in Omaha. If Crown selects the Dubuque location, it would transfer the existing equipment in Omaha to the potential new Dubuque space and acquire new equipment as well. Crown estimates investing$2,676,000 for capital expenditures related to the acquisition of the new equipment and the installation of the new equipment and the transferred equipment. These capital investments would include internal structures, bays, doors and alterations, foundations and grating, electrical controls, palletizers, presses, a compressed air system, a house vacuum system and other equipment and installation investments related to the food packaging process. Crown estimates that the food packaging operation would create 42 full-time permanent, net new jobs with highly competitive annual and hourly wages. These jobs would be eligible for Crown's generous benefits package,which includes medical, dental, vision, prescription drugs, disability, life insurance and retirement programs. Crown estimates that these benefit packages may add an additional 40% of value of the annual salaries to its employees. The positions for the 42 net new jobs include Line Maintainers, Baggers, Palletizers, Quality Control, and Supervisors, among others. 12. Project Timeline (add additional rows as needed) Beginning Activity Date Activity Completion Date Transfer of e ui ment from Omaha to Dubu ue Late 2019 2020 Installation of new/transferred e ui ment Late 2019 2021 Hirin of em lo ees in Dubu ue location 2020 2021 13. Has any part of the project started*? ❑ Yes � No If yes, please explain. *For IEDA's purposes, starting the project includes:the start of construction or rehabilitation, the purchase of a building, the execution of a lease, or the installation of equipment to be used in the project. 14. Identify the Business' competitors. If any of these competitors have lowa 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 lowa competitor. The company competes with other packaging manufacturers as well as with fillers, food processors and packers, some of whom manufacture containers for their own use and for sale to others. However, the Company has not identified any major lowa competitors, nor does it expect its proposed project to have adverse effects on the market share for existing businesses. 15. Will any of the current lowa employees lose their jobs if this project does not proceed? ❑ Yes � No If yes, please explain why and identify those jobs as "retained jobs" in the Project Jobs Section E. 16. Is the Business actively considering locations outside of lowa? � Yes ❑ No If yes, where and what assistance is being offered?Omaha, NE - Crown's Existing Facility 17. Please identify the company project management for the project location and experience.TBD SECTION C Applicant's Project Budget 1. Does the Business plan to lease the facility? � Yes ❑ No If yes, please provide the Annual Base Rent Payment(lease payment minus property taxes, insurance, and operating/maintenance expenses) for three years in the budget below, and only major renovation costs your company expects to incur. Administrative rules require that the lease be in place for a minimum of five years. 2. Please complete the budget below. Include onlv costs the companv plans to incur directiv: Use of Funds Cost Source A Source B Source C Source Source E Source F D Base Rent 3 ears $2,205,000 $2,205,000 Tenant Im rovements Land Ac uisition Site Pre aration Buildin Ac uisition Buildin Construction Buildin Remodelin $1,742,382 $1,742,382 Mf . Machiner & E ui . $933,288 $250,000 $483,288 $200,000 Other Machiner & E ui . Rackin , Shelvin , etc.' Com uter Hardware Com uter Software Furniture & Fixtures Workin Ca ital Research & Develo ment TOTAL $4,880,670 $250,000 $ $4,430,670 $200,000 $ $ ' Racking,shelving and conveyor equipment used in distribution center projects only 3. Please complete the chart below with proposed financing for the project (tax benefits should be reflected as indirect financin under#5 below : PROPOSED FINANCING Source of Funds Form of Funds Conditions/Additional I nfo rm ation AmOunt (Loan, Grant, In- Rate and Commitment Include when funds will be Add additional lines as needed Kind, Donation,etc.) Term Status disbursed; If loan,whether payments are a level term, balloon, etc Source A: IEDA (see#4 below) $250,000 Forgivable Loan Upon project completion of contract Source B: Local Government $ Source C: Business $4,430,670 InternalFunds Source D: Other Source $200,000 ECIA Revolving 4%, In process Loan 7 rs Source E: Other Source $ Source F: Other Source $ TOTAL $4,880,670 4. Direct financial assistance(loans/forgivable loans) must be secured with acceptable collateral. Please select the type of collateral your company will pledge to secure the IEDA financing, and document its value in Attachment A5.* Explain: No collateral,fundin disbursed at the end of the 5- ear contrad � Irrevocable letter of credit ❑ Dedicated certificate of deposit(CD) ❑ *The IEDA Board has the final discretion on what collateral will be accepted. 5. Please com lete the chart below with tax credits and other indirect financin ex ected for the roject: TAX CREDITS AND INDIRECT FINANCING Source of Funds Amount Descri tion Investment Tax Credit $187,296 7% of$2,675,670 Sales, Service& Use Tax Refund $52,271 6% of estimated $871,191 in taxable items Research Activities Credit 3%/10% Local Pro ert Tax Exem tion Tax Increment Financin 260E Job Trainin Funds $484,864 Estimates based on 42 �obs In-kind Contribution Other lowa NewJobs Tax Credit $77,112 42 �obs $1836 TOTAL $727,116 6. There are three justifiable reasons for providing assistance. Check the box next to the reason why assistance is needed to complete this project. ❑ Financing Gap - A gap exists between the financing required and the financing on-hand and the provision of tax incentives or assistance is necessary to fill the gap. ❑ Rate of Return Gap—The likely returns of the project are inadequate to motivate a company decision maker to proceed with the project even if sufficient debt or equity can be raised to finance the project, and the projecYs risks outweigh its rewards, making the provision of tax incentives or assistance necessary to reduce the projecYs risks. � Location Disadvantage(Incentive)—The business is deciding between a site in lowa ("lowa site") and a site in another state ("out-of-state site") for its project and the cost of completing the project at the out-of-state site is demonstrably lower, making tax incentives or assistance necessary to equalize the cost differential between the two sites. Note: The authority will attempt to quantify the cost differential between the sites. 7. Please provide a brief explanation of the need for assistance. Crown is seeking to partner with the lowa Economic Development Authority to help mitigate the location disadvantage of the potential Dubuque location. Dubuque is at a disadvantage to Crown's alternative, staying at its existing Omaha, Nebraska location, because the process of moving the operation to Dubuque would create significant costs. Crown estimates the process of removing and transporting the equipment from Omaha to Dubuque would cost $2 million dollars. Crown estimates an additional $2.676 million in costs related to the acquisition of new equipment and the installation of the new and transferred equipment at the Dubuque location. This combined cost of almost $5 million would mostly not occur if Crown were to remain at the Omaha location. This combined cost of nearly$5 million related to the transfer and set-up of the Dubuque location creates a significant location disadvantage for Dubuque. Another disadvantage of the potential transfer to the Dubuque location is the loss of Crown's skilled workforce in Omaha. The workforce in Omaha has the knowledge and skills required to produce Crown's product with high quality. The distance between Omaha and Dubuque is great enough that Crown may lose a significant portion of this skilled workforce. To rebuild that workforce in Dubuque, Crown would have to incur costs related to hiring, job training and possible loss of efficiency of operations. If Crown were to remain in Omaha, it would not incur these workforce related costs. As a means to mitigate the Dubuque location disadvantage around cost and labor resources, Crown is seeking to partner with the lowa Economic Development Authority. In particular, Crown seeks admission into the lowa High Quality Jobs Program. The full-time, permanent jobs being proposed by Crown are high quality in pay, benefits and the career opportunities they provide. Crown's proposed capital expenditures are substantial and would create a highly desirable manufacturing operation in Dubuque. The benefits under the High Quality Jobs Program, such as the investment tax credit and the sales and use tax credit and/or any other applicable business incentive, including training assistance, would help offset the associated costs of relocating its existing business from Omaha. These tax benefits would allow Crown to focus its resources on attracting and developing a skilled workforce, which would alleviate concern of losing preexisting talent from the relocation. Overall, a partnership with the lowa Economic Development Authority would mitigate Dubuque's location disadvantage. SECTION D Employee Benefits There are three options to meeting the sufficient benefit requirement. These options are detailed in the chart below. Please complete questions 1-3. If your company meets Option 1 or 2, no additional information is required. If you would like to utilize Option 3, please also complete questions 4-6. Option 1 Option 2 Option 3 70% single Coverage 60% Family coverage Moneta E uivalent Total Number of Pay 70% of premium costs Pay 60% of premium costs for Provide medical and pay the Employees in for a standard medical plan, a standard medical plan, monetary equivalent of Option US single coverage. family coverage. 1 or Option 2 in supplemental 201+ $1700 maximum deductible $3750 maximum deductible employee benefits. 50-200 $2500 maximum deductible $5250 maximum deductible Benefits Counted Toward 0-49 $3000 maximum deductible $6000 Maximum deductible Monetary Epuivalent:Medical coverage, Dental coverage, Vision insurance, Life 'In addition, the IEDA will assess the affordabilitv of plans that are pualified under /nsurance, Pension, 401(k) the deductible and premium percentape paid bv the emplover criteria. Plans that (company's Average are not offered at a reasonab/e cast to emplovees will be deemed not pualified contribution, Short-/long-term and the business is not eliqible for benefits under the Hiqh Qualitv Jobs Proqram. disability insurance, Child care services, Other nonwage com ensation 1. How many full-time, permanent employees does your company currently employ within the U.S.?5000+ 2. What is the total premium cost for a standard medical plan for single employee coverage? Medical - $591 per month//Dental - $32 per month a. What portion of this cost is paid by the business? 100% b. What is the deductible associated with this plan? $500 for employees with under$150k salary $1,500 for employees with over$150k salary 3. What is the total premium cost for a standard medical plan for family coverage? Medical - $630 per family member per month// Dental - $34 per family member per month Total monthly cost maxes out at $1993.00/month (3 members) a. What portion of this cost is paid by the business?86% b. What is the deductible associated with this plan? $1,000 for employees with under $150k salary $3,000 for employees with over$150k salary No additional information reauired. in this section. if vour companv meets the reauirement for Option 1 or Option 2 4. Does your company provide additional benefits to full time employees? ❑Yes ❑No If es, lease rovide the annual amount offered b the business, er em lo ee in the chart below: Benefit Annual amount paid by the business ( er em lo ee : Dental Insurance—Sin le lan $ Dental Insurance—Famil lan $ Pension Use 3-year average calculated below) $ Retirement Plan - i.e. 401 k Use 3-yearaverage calculated below) $ P�ofit Sha�in Plan (Use 3-yearaverage calculated below) $ Childcare Services $ Life Insurance covera e $ Disabilit Insurance covera e $ Health Savin s Account HSA contribution $ TOTAL $ 5. Does the Business offer a pension plan, 401(k) plan, and/or retirement-plan? � Yes ❑ No 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. Year Ending Average Actual Match per Em lo ee $ $ $ $ Three- ear Avera e: $ 6. Does the Business offer a profit-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 er em lo ee for that three ear eriod. Year Ending Average Actual Share per Em lo ee $ $ $ $ Three-year Average: $ Notes: 1. A qualified plan must be offered to all full-time permanent employees. 2. If you have multiple health insurance plans,please provide information on each plan. SECTION E Project Jobs 1. 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 eliminated or moved to another state if the project does not proceed in lowa.) For jobs to be created, include the startinq and final hourly wage rate. For retained jobs, include the current hourly wage rate. Full-Time CREATED Jobs (Add additional rows as needed) Job Title Number of Starting Wage at 36 months CREATED Jobs Hourl Wa e followin the award Manufacturin 33 $22.85 $28.30 Mana ement 6 $22.85 $51.20 Administrative 3 $22.85 $31.50 Total Full-Time CREATED Jobs 42 Full-Time RETAINED Jobs (Add additional rows as needed) Number of Current Hourly JobTitle (AT-RISKjobsonly) RETAINED Wage Jobs Total Full-Time RETAINED Jobs 2. Is the hourly wage rate based on a 40 hour work week, 52 weeks per year? � Yes ❑ No If no please explain: Business Financial Assistance Application — Crown Holdinqs, Inc. and Subsidiaries Page 11 — original redacted from City Council copy, as it contains confidential information SECTION G Attachments Please attach the following documents: A1 Project Plan Please provide an executive summary for your project. This information should include, at a minimum, expanded information about the company's products and services and any other project related information that has not already been described in the application for financial assistance. Please note, a traditional business plan, including an executive summary, market analysis, organization and management structure, marketing and sales management, service and product line narrative, financial projections, feasibility study and patent status, as well as any other relevant information, may be requested by the lowa Economic Development Authority to evaluate the feasibility of this project. Attached A2 Payroll Information (Confidential) • Copies of the Business' Quarterly lowa Employer's Contribution and Payroll Report for the past year. This report should include the monthly employment totals. • A copy of the most recent payroll report for one pay period. The copy of the most recent payroll report for one pay period must be in Excel format and include the following information: o Company name, date of payroll and source of payroll information o Employee name and/or employee identification number o Current hourly wage - do not include bonuses or other benefit values o Indicate if the employee is full time (40 hours per week, 52 weeks per year) or part time. o A sample Excel spreadsheet can be provided by IEDA staff A3 Affidavit that states the Business has not, within the last five years, violated state or federal statutes, rules, and regulations, including environmental, worker safety regulations and antitrust laws, 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 provided by IEDA staff. A4 Financial Information (Confidential, unless already publicly available) (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. Crown's financial information is publicly available A5 Collateral documentation (If requesting direct financial assistance only) A6 Brownfield or GrayField site documentation (if applicable) SECTION H Certification & Release of Information 1. Are there any judgments or court actions completed or pending against the applicant entity, or any current or prospective officer, principal, director, or owner? ❑ Yes ® No 2. Has any current or prospective officer, principal, director, or owner been accused or convicted of any wrongdoing or crime, other than a simple misdemeanor? ❑ Yes ® No 3. Have there been any current or past bankruptcies on the part of the applicant entity (or predecessor entities),,or on the part of any current (or prospective) officer, principal, owner or in any business dealings of current (or prospective) officers, principals, or owners of the applicant entity? ❑ Yes No 4. In the last five years have there been, or are there currently any investigations of potential violations of public health, safety (including workplace safety) or environmental laws by the applicant entity, or any current or prospective officer, principal, director, or owner? ❑ Yes ® No 5. In the last five years have there been, or are there currently any violations of antitrust laws by the applicant entity, or any current or prospective officer, principal, director, or owner? ❑ Yes ® No 6. If yes to any of the above, please provide additional explanation: I hereby give permission to the Iowa Economic Development Authority (IEDA) 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 IEDA state tax information pertinent to the Business' state income tax, sales and use tax, and state tax credits claimed. I understand that all information submitted to IEDA related to this application is subject to Iowa's Open Record Law (Iowa Code, Chapter 22), unless specifically marked as confidential section. I understand that IEDA reserves the right to negotiate the financial assistance. I understand this application is subject to final approval by IEDA and the Project may not be initiated until final approval is secured. Furthermore, I am aware that funds will not be disbursed until a contract has been executed and the appropriate terms have been met. I understand that upon execution of the contract and prior to the issuance of a tax credit number or the disbursement of Award Funds, a recipient shall pay IEDA a one-time compliance cost fee in the amount of $500. In addition, if tax benefits are greater than $100,000, the Recipient shall remit to IEDA a compliance cost fee 0.5% of the value of the Tax Incentives claimed pursuant to the contract. The fee will be due and payable upon filing the Recipient's annual tax return for each tax year in which tax credits are claimed under the contract. I hereby certify that all representations, warranties, or statements made or furnished to IEDA 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. For the Business: For the S • onsor s Signature Date Signature Joseph Pearce, Vice President Corporate Tax Name and Title (typed or printed) Roy Buol, Mayor Date Name and Title (typed or printed) IEDA will not provide assistance in situations where it is determined 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, IEDA may initiate legal action to recover incentives and assistance awarded to the Business. IEDA — Business Financial Assistance Application 13 v.1.28.19