Cottingham & Butler Insurance Services, Inc. - Close Out of Business Assistance Copyrighted
September 21, 2020
City of Dubuque Consent Items # 12.
City Council Meeting
ITEM TITLE: IEDA Contract 15-DF-034 Closeout
SUM MARY: City Manager submitting documents informing the City that the terms of a
Business Assistance Contract from the lowa Economic Development
Authority to Cottingham & Butler I nsurance Services, I nc. have been
satisfied, and the contract has been closed out by the State.
SUGGESTED Suggested Disposition: Receive and File
DISPOSITION:
ATTACHMENTS:
Description Type
Cottingham& Butler Close Out of Business Assistance City Manager Memo
Contract with I EDA-MVM Memo
Staff Memo Staff Memo
I EDA Closeout Letter Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Close Out of Business Assistance Contract 15-DF-034 for Cottingham &
Butler Insurance Services, Inc.
DATE: September 11, 2020
Economic Development Director Jill Connors recommends the City Council receive and
file documents informing that the terms of a Business Assistance Contract from the
lowa Economic Development Authority to Cottingham & Butler Insurance Services, Inc.
have been satisfied, and the contract has been closed out by the State.
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
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All•America Eity Dubuque,lowa 52001-4763
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Close Out of Business Assistance Contract 15-DF-034 for Cottingham &
Butler Insurance Services, Inc.
DATE: September 15, 2020
INTRODUCTION
The purpose of this memorandum is to inform the Manager and City Council that the
terms of a Business Assistance Contract from the lowa Economic Development
Authority (IEDA) to Cottingham & Butler Insurance Services, Inc. (C&B) have been
satisfied, and the contract has been closed out by the State.
BACKGROUND
IEDA administers a High-Quality Jobs program which provides qualifying businesses
assistance to off-set some of the costs incurred to locate, expand or modernize an lowa
facility. This flexible program includes loans, forgivable loans, tax credits, exemptions
and/or refunds. IEDA offers this program to promote growth in businesses, which
employ lowans in jobs defined as high-quality by state statute.
To be eligible, companies must meet wage threshold requirements and provide a
sufficient benefits package to all full-time employees, including health and dental
coverage.
In 2015, C&B applied for this type of business assistance from the State of lowa for the
expansion of its operations and addition of well-paid jobs, with the support of the City of
Dubuque and the East Central Intergovernmental Association (ECIA)
On February 20, 2015, IEDA approved Contract 15-DF-034 with the following award:
C&B was eligible for a $600,000 High Quality Jobs Program Loan ($300,000 of which
was forgivable if the contract requirements were met) and $305,000 in training fund
reimbursement for 90 jobs. The Company contributed $485,000 in capital to the project.
The required local match was met with a $150,000 loan from ECIA.
DISCUSSION
C&B was required to maintain 520 full-time equivalent (FTE)jobs of which 311 were to
be High Quality Job threshold FTEs. At the End of Maintenance Period, the Business
had 836 FTEs of which 575 were High Quality Job threshold FTE jobs. The qualified
employees were paid at least $22.06 per hour.
C&B has met the job-creation requirements as stipulated, and the lowa Economic
Development Authority has informed the City that the contract has been closed out.
RECOMMENDATION/ ACTION STEP
I recommend the Council receive and file the documents from the lowa Economic
Development Authority closing out Business Assistance Contract 15-DF-034.
2
IOWA ECONOMIC DEVELOPMENT AUTHORITY � ���
1963 Bell Avenue,Ste.200 � Des Moines, [awa 50315 USA I Phone:515.348.8200
iawaeda.cam �_� ; ���;�� �
July 27, 2020
Mr. Timothy Berns, CFO
Cottingham & Butler Insurance Services, Inc.
800 Main Street
Dubuque, IA 52001
RE: Project Maintenance Closeout— Cottingham & Butler Insurance Services, Inc.
Contract Number— 15-DF-034
Dear Mr. Berns:
It is my pleasure to congratulate you on successfully maintaining your job obligations through the
maintenance period regarding the above referenced project. The Authority's review of payroll
documents indicates that the job maintenance requirement has been met.
In summary:
1. The Project Completion Date was February 28, 2018 with a Project Maintenance
Date of February 28, 2020.
2. The Business was required to maintain 520 full-time equivalent (FTE)jobs of
which 311 were to be qualified FTEs. At the End of Maintenance Date, the
Business had 836 FTEs of which 575 were qualified FTE jobs. The qualified
employees were paid at least$22.06 per hour.
3. Cottingham & Butler met the Sufficient Benefits requirement.
Since all project activities have been completed and verified, the Authority has closed this project
file. The Authority has determined that the job maintenance requirement has been satisfied. The
IEDA hereby forgives the Forgivable Loan. Cottingham & Butler decided to accept the $300,000
of Forgivable Loan at the End of Project Maintenance Period. Please contact Kristi Steil at IEDA
for instructions on collecting the award. Kristi's contact information is 515-348-6167 and
kristi.steil(c�iowaeda.com.
We would like to express our thanks to you for your assistance in monitoring and closing out this
project. We look forward to working with you on future economic development projects. Please
do not hesitate to contact me at 515-348-6165 or benton.auade(a�iowaeda.com should you have
any questions.
Sincerely,
Benton Quade
Project Manager
Compliance Team
Cc: Mayor Roy Buol, City of Dubuque
IEDA Compliance File
IEDA Accounting
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