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Cottingham & Butler- Iowa Economic Development Authority Application for Financial Assistance Copyrighted December 2, 2019 City of Dubuque Consent Items # 11. ITEM TITLE: Cottingham & Butler- lowa Economic Development Authority Application SUMMARY: City Manager recommending approval of the Economic Development Assistance Application on behalf of Cottingham & Butler Insurance Services, Inc. and Roshek Property, LLC forthe proposed investmentforthe expansion of its operations in Dubuque. RESOLUTION Authorizing the Filing of an Application with the lowa Economic DevelopmentAuthorityfor Business Financial Assistance on Behalf of Cottingham & Butler Insurance Services, Inc. and Roshek Property, LLC SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt Resolution(s) ATTACHMENTS: Description Type Cottingham& Butler IEDAApplication-MVM Memo Staff 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 by Cottingham & Butler Insurance Services, Inc. and Roshek Property, LLC DATE: November 26, 2019 Economic Development Director Jill Connors is recommending approval of the Economic Development Assistance Application on behalf of Cottingham & Butler Insurance Services, Inc. and Roshek Property, LLC for the proposed investment of approximately $7.5 Million for the expansion of its operations in Dubuque. The proposed project would add 16 full-time jobs and promote the City's goal of creating a robust local economy with diverse businesses and jobs and economic prosperity. 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 Dubuque Economic Development Department THE CITY OF � so west 13<h street D� L L Alll;EflCijly Dubuque,lowa 52001-4864 1 I I �I Office(563)589-4393 TTY(563)690-6678 http://www.cityofd u b uq ue.org 2007�2012�2013 Masterpiece on the Mississippi zoi�*zoi9 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director SUBJECT: lowa Economic Development Authority Business Financial Assistance Application by Cottingham & Butler Insurance Services, Inc. and Roshek Property, LLC DATE: November 25, 2019 INTRODUCTION This memorandum presents for City Council review and approval a resolution authorizing the submission of a Business Financial Assistance Application by Cottingham & Butler Insurance Services, Inc. ("C&B") and Roshek Property, LLC to the lowa Economic Development Authority (IEDA). BACKGROUND C&B was established in 1887 and is the 25th largest insurance brokerage firm in the United States and a recognized leader in offering innovative property and casualty and employee benefit insurance solutions. The company is headquartered in Dubuque, lowa, and employs over 1,000 employees across the United States. C&B provides a full suite of risk management and employee benefits services. The company continues to increase its national footprint in an effort to provide the best service to its clients. C&B has satellite offices in lowa, Florida, Illinois, Ohio, Wisconsin, Tennessee, Minnesota, Pennsylvania, Texas, Arkansas, South Carolina and California. Over the past several years, C&B has invested approximately $5.9 Million in the City of Dubuque and increased employment in Dubuque by approximately 275 positions. Heartland Financial USA, Inc. operates a financial services company at 1301 Central Avenue in the City of Dubuque, lowa, which employs 438 full-time employees. Roshek Property, LLC is an lowa limited liability company formed by Cottingham & Butler Insurance Services, Inc. and Heartland Financial USA, Inc. for the purpose of acquiring and operating the Roshek Building at 700 Locust Street in Dubuque, lowa. DISCUSSION Subject to State of lowa and City of Dubuque approval, C&B is proposing to purchase with Heartland Financial USA, Inc. and remodel the Roshek Building. The estimated cost of the project is $7.5 Million. As part of this project, C&B would create 16 full-time employee positions in the City of Dubuque. C&B proposes to begin the project in January 2020 and complete the hiring process by December 2022. C&B and Roshek Property, LLC are submitting an application to the State of lowa for investment tax credits of$390,000, a sales tax refund of$48,000, and job training funds estimated at $797,624. The City Council has emphasized business growth and retention as one of its goals and priorities for the future of Dubuque. Supporting the C&B application will strengthen its ability to obtain financial assistance as C&B continues to expand and hire within the City of Dubuque and the State of lowa. The required local match is being met with a loan from East Central Intergovernmental Association. RECOMMENDATION/ ACTION STEP I recommend that the City Council adopt the attached resolution approving the Economic Development Assistance Application on behalf of Cottingham & Butler Insurance Services, Inc. and Roshek Property, LLC for the proposed investment of approximately $7.5 Million for the expansion of its operations in Dubuque. The proposed project would add 16 full-time jobs and promote the City's goal of creating a robust local economy with diverse businesses and jobs and economic prosperity. z Prepared by: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4393 Return to: Jill Connors, Economic Development, 13000 Main Street, Dubuque IA 52001, 563 589-4393 RESOLUTION NO. 410-19 AUTHORIZING THE FILING OF AN APPLICATION WITH THE IOWA ECONOMIC DEVELOPMENT AUTHORITY FOR BUSINESS FINANCIAL ASSISTANCE ON BEHALF OF COTTINGHAM & BUTLER INSURANCE SERVICES, INC. AND ROSHEK PROPERTY, LLC Whereas, Cottingham & Butler Insurance Services, Inc. operates an, insurance, brokerage at 800 Main Street in the City of Dubuque, Iowa which employs 706 full-time employees; and Whereas, Roshek Property, LLC is an Iowa limited liability company formed by Cottingham & Butler Insurance Services, Inc. and Heartland Financial USA, Inc. for the purpose of acquiring and operating the Roshek Building at 700 Locust Street in Dubuque, Iowa; and Whereas, Cottingham & Butler Insurance Services, Inc. and Roshek Property, LLC have proposed making a Seven Million Five Hundred Thousand Dollar ($7,500,000.00) investment in the acquisition and redevelopment of the Roshek Building; 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 City Council of the City of Dubuque, Iowa has considered the proposal and determined that the proposed project will contribute to the local economy through the creation of sixteen (16) full-time jobs in the City; and Whereas, the City of Dubuque, Iowa is eligible to apply for funding from the Iowa Economic Development Authority Business Financial,Assistance Program on behalf of Cottingham & Butler Insurance Services, Inc. and Roshek Property, LLC. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the filing of an Application for participation in the Iowa Economic Development Authority's Business Financial Assistance Program on behalf of Cottingham & Butler Insurance Services, Inc. and Roshek Property, LLC, a copy of which is attached hereto, is hereby approved. Section 2. That 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 2nd day of December, 2019. Attest: Trish L. Gleason, Assistant City Clerk OL17 Roy D. By, Mayor I W,4�� Debi V. Durham, Director lowa Economic Development Aufhordy Business Financial Assistance Application Business Finance - Business Development Division lowa Economic DevelopmentAuthority 200 East Grand Avenue Des Moines, lowa 50309-1819 iowaeconomicdevelopment.com Telephone�. 515348.6153 Email�. businessfinance(d!iowaeda.com Application Instructions To Complete Electronic Form: Clickon TEXT BOX to etltl ta;.T Double clickon YES/NO boxes entl select"Checketl". 1. FUI applicants must complete the Business Financial Assistance Flyplication and attach onlv those additional sections for the components to which the applicant is applying. STATE of IOWA—Financial Assistance Proaram High Quality Jobs Program (HQJ) � Tax Credits ❑ Direct Financial Assistance 2. Before filling out this application Porm, please read all applicable sections of the lowa Code and lowa Administrative Code (rules). https:/iWww.leqis.iowa.qov4aw/administrativeRules 3. Only tvoed or comouter-aenerated applications will be accepted and reviewed. My material change to the Pormat, questions, orwording ofquestions presented in this application will renderthe application invalid and it will not be accepted. 4. Complete the applicable sections of the application fully. If questions are leR unanswered or required attachments are not submitted, an explanation must be induded. 5. Use clear and concise language. Altachments should only be used when requested or as supporting documentation. 6. My inaccurate information of a significant nature may disqualify the application 6om 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 elec[ronic copy of the application form and all required attachments Facsimile cooies will no[ be acceo[etl. Applications must be submittetl to IEDA Business Finance before 4:00 p.m. on the fourth Montlay ofthe month. Applications will be reviewetl by the IEDA Boartl on the thirtl Fntlay ofthe 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: 1. Name of Business: Cottingham & Butler, Inc., Cottingham & Butler Insurance Services, Inc.; Self Insured Services Company; Safety Management Services Company, Butler Healthcorp, Inc., Cottingham & Bulter Claims Services Company, Roshek Property, LLC 2. Entity Name(s) for contracting (please include all that are involved in proposed project): Cottingham & Butler Insurance Services, Inc., Roshek Property, LLC 3. Address: 800 Main Street 4. City, State &Zip Code: Dubuque, lowa 52001 5. Contact Person: Tim Berns Title: CFO 6. Phone: 563.587.5301 Fax: 563.587.5881 Email: tberns@cottinghambutler.com 7. FEIN: 42-0198040 8. Please indicate your tax period end date: December 31 9. NAICS Code for primary business operations: 524210 10. US DOT Number: N/A 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) 42-1490886 ❑ 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: Address: City, State & Zip Code: Contact Person: Title: Phone: Fax: Email: $pO11SOC �IIfOCCT12t1011 (A sponsor organization is a city or county) 13. Sponsor Organization: City of Dubuque, lowa 14. Official Contact (e.g. Mayor, Chairperson, etc.): Roy Buol Title: Mayor 15. Address: 50 W. 13'h Street 16. City, State &Zip Code: Dubuque, lowa 52001 17. Phone: 563.589.4100 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: 1300 Main Street City, State & Zip Code: Dubuque, lowa 52001 Phone: 563.589.4393 Fax: 563.589.1733 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. Co44ingham & Bu41er was es4ablished in 1887 and is 4he 254h larges4 insurance broker in 4he U.S. and a recognized leader in offering innova4ive proper4y & casual4y and employee benefi4 insurance solu4ions. The company is headquar4ered in Dubuque, lowa, and employs over 1,000 employees across 4he U.S. Co44ingham & Bu41er provides a full sui4e of risk managemen4 and employee benefi4s services. Our cen4ral loca4ion in 4he hear4 of 4he U.S. gives us 4he dis4inc4 advan4age of easily reaching many major me4ropoli4an ci4ies and, more impor4an41y, remo4e loca4ions around 4he coun4ry. We con4inue 4o increase our na4ional foo4prin4 in an effor4 40 make cer4ain we are providing 4he bes4 service 40 our clien4s and have sa4elli4e offices in lowa, Florida, Illinois, Ohio, Wisconsin, Tennessee, Minneso4a, Pennsylvania, Texas, Arkansas, Sou4h Carolina and California. 2. Business Structure: ❑ Cooperative ❑ Corporation ❑ Limited Liability Company ❑ Partnership � S-Corporation ❑ Sole Proprietorship 3. State of Incorporation: lowa 4. Identify the Business' owners and percent ownership: Cottingham & Butler, Inc. -100% 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. a. Dubuque - 712 b. Davenport- 51 c. Other- 31 7. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and other affiliated entities in this figure.) 1,005 Project Information 8. Project Street Address: 800 Main Street Project City&Zip Code: Dubuque, 52001 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.) The company is proposing to increase employment in Dubuque by 16 positions. The company is proposing to purchase the Roshek Building, located at 700 Locust Street, remodel space, purchase furniture, fixtures, software, hardware and phones to accommodate the increase in employment. The company proposes to start the project in January of 2020, and complete the hiring by December of 2022. 12. Project Timeline (add additional rows as needed) Beginning Activity Date Activity Completion Date Purchase Buildin /Remodel S ace 12/2019 12/2020 Hardware/Software/Phones 1/2020 12/2022 Job Creation 1/2020 12/2022 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. We compete with other insurance brokers in the U.S. The insurance industry is a very broad industry. As the majority of our clients are located outside of lowa, we do not believe that the expansion of our business will have any impact on our competitors in lowa. (Approximately 85% of revenue is from clients located outside of lowa) 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? We continually evaluate the growth of other locations in C&B's network of offices. We have not pursued any financial assistance in other locations at this time. 17. Please identify the company project management for the project location and experience. David Becker is the project manager. David is the CEO and is responsible for overseeing sales, marketing, and most of the operations for Cottingham & Butler and its subsidiaries. Prior to joining C&B in 2004, David spent 8 years with McKinsey &Company in Chicago, where he was a Partner specializing in issues related to strategy and marketing 18. 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. Use of Funds Cost Source A Source B Source C Source D Source E Source F Base Rent 3 ears Tenant Im rovements Land Ac uisition Site Pre aration Buildin Ac uisition 6,000,000 6,000,000 Buildin Construction Buildin Remodelin 1,600,000 1,450,000 150,000 Mf . Machiner & E ui . Other Machiner & E ui . Rackin , Shelvin , etc.' Com uterHardware 200,000 200,000 Com uterSoftware 300,000 300,000 Furniture & Fixtures 100,000 100,000 Workin Ca ital Research & Develo ment Other TOTAL $8,200,000 $ $ $8,050,000 $150,000 $ $ 2. Please complete the budget below. Include onlv costs the companv olans to incur directiv: ' 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 AmOuM (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) $ See below Source B: Local Government $ Source C: Business $8,050,000 Yes Source D: Other Source $ 150,000 Loan from ECIA 4% 10 r In ne otiations Source E: Other Source $ Source F: Other Source $ TOTAL $8,200,000 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 de osit 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 390,000 5% of$7,800,000 in ualif in investments Sales, Service&Use Tax Refund 48,000 Refund on materials used in remodelin Research Activities Credit 3%/10% Local Pro ert Tax Exem tion Tax Increment Financin 260E Job Training Funds 797,624 Estimate from Northeast lowa Community Colle e. In-kind Contribution Other: New Jobs Tax Credit 180,000 $1800 er new�ob created TOTAL $1,415,624 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. The State of lowa is one of many states in which we are located. Attracting and hiring employees in/to lowa requires more resources than many of our other locations. 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 ou would like to utilize O tion 3, lease also com lete uestions 4-6. Option 1 Option 2 O tion 3 80% single Coverage 50% Family coverage Moneta E uivalent Total Number of Pay 80% of premium costs Pay 50% 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 250+ $1250maximum deductible $2500 maximum deductible employee benefits. 50-249 $2250 maximum deductible $4500 maximum deductible Benefits Counted Toward 0-50 $2000 maximum deductible $4000 Maximum deductible Monetary Epuivalent:Medical coverage, Dental coverage, Vision insurance, Life insurance, Pension, 401(k) (company's Average contribution, Short-/long-term 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.? 1 005 2. What is the total premium cost for a standard medical plan for single employee coverage? $5,670 a. What portion of this cost is paid by the business? $ 3,810 b. What is the deductible associated with this plan? $ 1,300 3. What is the total premium cost for a standard medical plan for family coverage? 15 309 a. What portion of this cost is paid by the business?$10,149 b. What is the deductible associated with this plan? $3,000 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 yes, please provide the annual amount offered bythe business, per employee in the chart below: Benefit Annual amount paid by the business er em lo ee : Dentallnsurance—Sin le lan $240 Dental Insurance—Famil lan $720 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-year average calculated below) "" Childcare Services $ Life Insurance covera e $42 Disabilit Insurance covera e $229 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 $ 2016 $856,000 2017 $986,000 2018 $1,186,000 Three- ear Avera e: $1,009,333 *(401(K) Match is 50%of first 4%of salary contributed by employee) 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 $ 2016 $2,021,000 2017 $2,228,000 2018 $2,475,000 Three-year Average: $2,241,333 **Profit Sharing: . One year waiting period . 4% of eligible salary up to FICA Limit($128,400 in 2018) . 8% of eligible salary from FICA Limit up to IRS Maximum($275,000 in 2018) 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 Service Jobs 8 $41,000 $49,000 Sales Jobs 8 $45 000 $63 000 Total Full-Time CREATED Jobs 16 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 — Cottinqham & Butler, Inc. Page 10 — original redacted from City Council copy, as it contained 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. The Company is proposing to increase employment in Dubuque by 16 jobs. To facilitate this, the company is considering jointly purchasing the Roshek Building, remodeling several floors, purchasing furniture, fixtures, software, hardware and phones, which would allow the company to expand its Dubuque headquarfers and management to allow for additional hiring in Dubuque. 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. 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 Z 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 /t 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 /1 No . If yes to any of the above, please provide additional explanation: 1 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: f 1 For the S • o sor I 1/2 /5 /r-/ Signatur ignature Date druy L.. && z-,ws 12/2/19 Roy D. Buol, Mayor Name and Title (typed or printed) Name and Title (typed or printed) Date 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 12 v.9.25.17