Sponsorship of Iowa Economic Development Authority (IEDA) Application for Simmons Pet Food, Inc. Copyrig hted
December 11, 2020
City of Dubuque
Special Meeting Action Items # 1.
ITEM TITLE: Sponsorship and approval of lowa Economic DevelopmentAuthority
Business Financial Assistance Application submitted by Simmons Pet
Food, I nc.
SUM MARY: City Manager recommending approval of a resolution authorizing
sponsorship and approval of a Business Financial Assistance application
submitted by Simmons Pet Food, Inc. to the lowa Economic
Development Authority.
RESOLUTION Authorizing sponsorship and approval of an application
to the lowa Economic DevelopmentAuthorityfor Business Financial
Assistance submitted by Simmons Pet Food, I nc.
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
Simmons Pet Food I EDA Application-MVM Memo City Manager Memo
Staff Memo Staff Memo
I EDA Application Supporting Documentation
Resolution of Approval Resolutions
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Sponsorship and Approval of Iowa Economic Development Authority
Business Financial Assistance Application Submitted by Simmons Pet
Food, Inc.
DATE: December 10, 2020
Economic Development Director Jill Connors recommends City Council approval of a
resolution authorizing sponsorship and approval of a Business Financial assistance
Application submitted by Simmons Pet Food, Inc. to the Iowa Economic Development
Authority.
Simmons is submitting an application to the State of Iowa for investment tax credits of
$3,000,000, a sales tax refund estimated at $300,000, and job training funds estimated
at $2,215,520. Since Simmons is creating High Quality Jobs, they are also eligible for
an $800,000 forgivable loan. The City Council has emphasized business growth and
retention as one of its goals and priorities for the future of Dubuque. Supporting the
Simmons application will strengthen its ability to obtain state financial assistance as
Simmons expands its national operations with a new Dubuque facility and hire within
the City of Dubuque and the State of Iowa.
The required local match will be met with tax increment financing rebates from the City
of Dubuque estimated at $ 3,000,000.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
_____________________________________
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill M. Connors, Economic Development Director
Economic Development
Department
1300 Main Street
Dubuque, Iowa 52001-4763
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Sponsorship and Approval of Iowa Economic Development Authority
Business Financial Assistance Application submitted by Simmons Pet
Food, Inc.
DATE: December 9, 2020
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing
sponsorship and approval of a Business Financial Assistance Application submitted by
Simmons Pet Food, Inc. (“Simmons”) to the Iowa Economic Development Authority
(IEDA).
BACKGROUND
Simmons Pet Food is the sixth largest pet food manufacturer in America, and North
America’s largest maker of store brand and private label wet pet food products. Simmons
manufactures wet and dry pet food for dogs and cats, as well as pet treats for dogs. Wet
pet food is available in various forms including cuts in gravy, slices in gravy, ground, pâté,
and loaf. Dry pet food is generally available in kibbles, meal, and expanded particles.
Customers include blue chip companies that represent the top 10 pet food and retailers
in the US.
DISCUSSION
Subject to State of Iowa and City of Dubuque approval, Simmons is proposing to expand
its wet pet food manufacturing capacity. The expansion is in two phases with investment
totaling nearly $80 Million to purchase the building at 501 Seippel Road, retrofit it for food
manufacturing, and buy the necessary equipment. Simmons also proposes to purchase
adjacent City-owned land. Phase 1 will be completed in 2021 and will create 138 new
jobs. Phase 2 will include the build-out of a distribution center and an additional
2
manufacturing line. Phase 2 will be completed in 2023 and will create an additional 133
new jobs. Total jobs created will be 271 jobs with wages averaging in excess of $20/hour.
Simmons is submitting an application to the State of Iowa for investment tax credits of
$3,000,000, a sales tax refund estimated at $300,000, and job training funds estimated
at $2,215,520, as well as an $800,000 forgivable loan. The City Council has emphasized
business growth and retention as one of its goals and priorities for the future of Dubuque.
Supporting the Simmons application will strengthen its ability to obtain state financial
assistance as Simmons expands its national operations with a new Dubuque facility and
hire within the City of Dubuque and the State of Iowa.
The required local match will be met with tax increment financing rebates from the City of
Dubuque estimated at $ 3,000,000.
RECOMMENDATION / ACTION STEP
I recommend that the City Council adopt the attached resolution approving sponsorship
of the Economic Development Assistance Application submitted by Simmons Pet Food,
Inc. for the proposed investment of approximately $80 Million for the expansion of its
national operations in Dubuque. The proposed project would add 271 full-time jobs and
promote the City’s goal of creating a robust local economy with diverse businesses and
jobs and economic prosperity.
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. 357-20
AUTHORIZING SPONSORSHIP AND APPROVAL OF AN APPLICATION TO THE
IOWA ECONOMIC DEVELOPMENT AUTHORITY FOR BUSINESS FINANCIAL
ASSISTANCE SUBMITTED BY SIMMONS PET FOOD, INC.
Whereas, Simmons Pet Food, Inc. is an Arkansas corporation operating a global
workforce of seven thousand three hundred fifty employees; and
Whereas, Simmons Pet Food, Inc. intends to acquire and operate in the former
Flexsteel Building at 501 Seippel Road in Dubuque, Iowa; and
Whereas, Simmons Pet Food, Inc. has proposed making an Eighty Million Dollar
($80,000,000.00) investment in the acquisition and redevelopment of 501 Seippel Road;
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 two hundred seventy-one (271) full-time jobs in the City; and
Whereas, the City of Dubuque, Iowa is required to sponsor the application for
funding from the Iowa Economic Development Authority Business Financial Assistance
Program submitted by Simmons Pet Food, Inc.; and
Whereas, the City Council finds that the sponsorship and approval of an
Application for participation in the Iowa Economic Development Authority's Business
Financial Assistance Program submitted by Simmons Pet Food, Inc., a copy of which is
attached hereto, is in the best interests of the City of Dubuque.
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 by Simmons Pet Food,
Inc., 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.
120120bal
Passed, approved, and adopted this 11 t" day of December 2020.
W,
Roy b. Buol, Mayor
Attest:
Adrienne N. Breitfelder, C y Clerk
v.1.28.19
Debi V. Durham, Director
Iowa Economic Development Authority
Business Financial Assistance Application
Business Finance - Business Development Division
Iowa Economic Development Authority
200 East Grand Avenue
Des Moines, Iowa 50309-1819
iowaeconomicdevelopment.com
Telephone: 515.348.6153 Email: businessfinance@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 only those
additional sections for the components to which the applicant is applying.
STATE of IOWA – Financial Assistance Program
High Quality Jobs Program (HQJ)
Tax Credits
Direct Financial Assistance
2. Before filling out this application form, please read all applicable sections of the Iowa Code and Iowa
Administrative Code (rules). https://www.legis.iowa.gov/law/administrativeRules
3. Only typed or computer-generated 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:
x One original, signed application form and all required attachments
x 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.
IEDA – Business Financial Assistance Application 2 v.1.28.19
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 Iowa’s Open Records Law (Iowa 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 Iowa Employer’s Contribution and Payroll Report prepared for the Iowa 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 – Iowa Code Sec. 15.118
• Trade secrets – See Iowa Code section 22.7(3), see also Iowa Code Ch. 550
• Information on an industrial prospect with which the IEDA is currently negotiating – See Iowa 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 – Iowa 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 Iowa’s Open Record law and IEDA’s administrative rules
relating to public records are available from the IEDA upon request.
IEDA – Business Financial Assistance Application 3 v.1.28.19
SECTION A
Applicant Information Date Application Submitted: 11/23/20
1. Name of Business: Simmons Pet Food, Inc.
2. Entity Name(s) for contracting (please include all that are involved in proposed project): Simmons Pet
Food, Inc.
3. Address: 601 N. Hico
4. City, State & Zip Code: Siloam Springs, AR 72761
5. Contact Person: Kerry L. Hairston I Title: SVP of Finance & Treasurer
6. Phone: 479-215-2590 Fax: 479-215-2773 Email: kerry.hairston@simfoods.com
7. FEIN: 20-0351981
8. Please indicate your tax period end date: 12/31/20
9. NAICS Code for primary business operations: 311111
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:
Address:
City, State & Zip Code:
Contact Person: Title:
Phone: Fax: Email:
Sponsor Information (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 W. 13th St.
16. City, State & Zip Code: Dubuque, IA 52001
17. Phone: 563-589-4110 Fax: Email: rbuol@cityofdubuque.org
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:
19. Name: Jill Connors Title: Economic Development Director
Address: 50 W. 13th St.
City, State & Zip Code: Dubuque, IA 52001
Phone: 563-589-4393 Fax: Email: jilconno@cityofdubuque.org
If necessary, please list information on additional sponsors in an attachment.
IEDA – Business Financial Assistance Application 4 v.1.28.19
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.
Simmons Pet Food is the sixth (6th) largest pet food manufacturer in America, and North America’s largest maker
of store brand and private label wet pet food products. SimPet manufactures wet and dry pet food for dogs and
cats, as well as pet treats for dogs. Wet pet is available in various forms including cuts in gravy, slices in gravy,
ground, pâté, and loaf. Dry pet food is generally available in kibbles, meal, and expanded particles. Customers
include blue chip companies that represent the top 10 pet food and retailers in the US.
2. Business Structure:
Cooperative Corporation Limited Liability Company
Partnership S-Corporation Sole Proprietorship
3. State of Incorporation: Arkansas
4. Identify the Business’ owners and percent ownership:
Business Owner Percent Ownership
Mark C. Simmons Living Trust (Mark C. Simmons Trustee) 1.0000%
Mark Todd Simmons 2007 Trust (Mark T. Simmons Trustee) 24.2785%
Sarah Lynn Simmons Goldstein 2007 Trust (Sarah Simmons Trustee) 24.2785%
Mark Todd Simmons Investment Exempt Trust (Sarah Simmons Trustee) 25.2215%
Sarah Lynne Simmons Investment Exempt Trust (Mark T. Simmons Trustee) 25.2215%
Total 100.000%
5. Does a woman, minority, or person with a disability own the Business? Yes No
6. List the Business’ Iowa locations and the most current number of employees at each location.
We are expanding our operations into Iowa with the purchase of the Flexsteel plant at 501 Seippel Road. We
anticipate 271 new employees over the next three (3) years, of which 138 new employees will be hired by July 1,
2021.
7. What is the Business’ worldwide employment? (Please include employees of parent company, subsidiaries, and
other affiliated entities in this figure.) 7,350
Project Information
8. Project Street Address: 501Seippel Rd.
Project City & Zip Code: Dubuque, 52002 Project County:
9. Type of Business Project:
Startup Expansion of Iowa Company New Location in Iowa
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.)
We are looking to expand our Wet Pet food manufacturing capacity. Our expansion is two phases with Phase 1
costing $50M, which includes the purchase of a building ($14.5M), retrofit it for food manufacturing ($10M), and buy
the necessary equipment ($30M). The $10M retrofit to the existing building will have the modular planning in place
to accommodate the production needs of both Phase 1 and Phase 2. Phase 1 will be completed by July 1, 2021.
IEDA – Business Financial Assistance Application 5 v.1.28.19
Phase 2 will cost $31M, which includes the purchase of equipment ($25M) needed to support a fully operational
2nd pet food canning line inside the Flexsteel facility. This line would effectively double the production capacity
throughput of the facility after Phase 1. Phase 2 is also includes the build-out of a 75,000 square feet Distribution
Center/Warehouse. The Distribution Center/Warehouse will be an expansion to the original Flexsteel building (new
building space) required to house finished goods from both pet food canning lines. The estimated costs of a new
Distribution Center/ Warehouse is approximately $6M. Phase 2 will be completed by Q2-2023 and the total jobs
created by this project will be 271 by the end of December 2023
12.
Project Timeline (add additional rows as needed) Beginning Activity Date Activity Completion Date
Purchase Flexsteel Facility 12/21/20 12/31/20
Building Improvements 01/01/21 06/30/22
Install Equipment Q1-2021 06/30/22
13. Has any part of the project started*? Yes No
* 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 Iowa 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 Iowa competitor. We are the 6th largest Pet Food company in the United States
and North America’s largest wet pet food private label and store brand producer. We have a 95% market share
with no meaningful competitors on the private label side.
15. Will any of the current Iowa employees lose their jobs if this project does not proceed?
Yes No N/A
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 Iowa? Yes No
If yes, where and what assistance is being offered?
Dubuque Iowa is competing with an existing facility that we already own in Decatur, AR. The cost to retrofit our
Arkansas facility is significantly less than the $25M we are investing to acquire the Flexsteel facility and make the
necessary improvements
17. Please identify the company project management for the project location and experience. Seth Walters, Vice
President of Engineering for Simmons Foods, Inc. Seth brings 12 years of Project Management experience in the
Pet Food and Poultry industries.
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 years)
Tenant Improvements
Land Acquisition
Site Preparation
Building Acquisition $14,500,000 $14,500,000
Building Construction
Building Remodeling 10,000,000 10,000,000
Mfg. Machinery & Equip. (Line 1) 30,000,000 30,000,000
Mfg. Machinery & Equip. (Line 2) 25,000,000 800,000 24,200,000
Racking, Shelving, etc.1
IEDA – Business Financial Assistance Application 6 v.1.28.19
2. Please complete the budget below. Include only costs the company plans to incur directly:
1 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
financing under #5 below):
PROPOSED FINANCING
Source of Funds
Amount
Form of Funds
Rate and
Term
Commitment
Status
Conditions/Additional
Information
Add additional lines as needed
(Loan, Grant, In-
Kind, Donation, etc.)
Include when funds will be
disbursed; If loan, whether
payments are a level term,
balloon, etc
Source A: IEDA (see #4 below) $800,000 Forgivable Loan Balloon payment
Source B: Local Government
Source C: Business 78,700,000
Source D: Other Source
Source E: Other Source
Source F: Other Source
TOTAL $79,500,000
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. *
No collateral, funding disbursed at the end of the 5-year contract
Explain:
Irrevocable letter of credit
Dedicated certificate of deposit (CD)
* The IEDA Board has the final discretion on what collateral will be accepted.
5. Please complete the chart below with tax credits and other indirect financing expected for the project:
TAX CREDITS AND INDIRECT FINANCING
Source of Funds Amount Description
Investment Tax Credit $3,000,000 Per IEDA
Sales, Service & Use Tax Refund 300,000 Per IEDA
Research Activities Credit (3%/10%)
Local Property Tax Exemption
Tax Increment Financing 2,160,000 Per City Estimate
260E Job Training Funds 2,215,520 NICC Estimate
In-kind Contribution
Other
TOTAL $7,675,520
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.
Computer Hardware
Computer Software
Furniture & Fixtures
Working Capital
Research & Development
Other
TOTAL $79,500,000 $800,000 $$78,700,000 $$ $
IEDA – Business Financial Assistance Application 7 v.1.28.19
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 project’s risks
outweigh its rewards, making the provision of tax incentives or assistance necessary to reduce the project’s risks.
Location Disadvantage (Incentive) –The business is deciding between a site in Iowa (“Iowa 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.
Dubuque Iowa is competing with an existing facility that we already own in Decatur, AR. The cost to retrofit our
Arkansas facility is significantly less than the $25M we are investing to acquire the Flexsteel facility and make the
necessary improvements.
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 Monetary Equivalent
Total Number of
Employees in
US
Pay 70% of premium costs
for a standard medical plan,
single coverage.
Pay 60% of premium costs for
a standard medical plan,
family coverage.
Provide medical and pay the
monetary equivalent of Option
1 or Option 2 in supplemental
employee benefits.
Benefits Counted Toward
Monetary Equivalent: 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
compensation
201+ $1700 maximum deductible $3750 maximum deductible
50-200 $2500 maximum deductible $5250 maximum deductible
0-49 $3000 maximum deductible $6000 Maximum deductible
* In addition, the IEDA will assess the affordability of plans that are qualified under
the deductible and premium percentage paid by the employer criteria. Plans that
are not offered at a reasonable cost to employees will be deemed not qualified
and the business is not eligible for benefits under the High Quality Jobs Program.
1. How many full-time, permanent employees does your company currently employ within the U.S.? 7,350
2. What is the total premium cost for a standard medical plan for single employee coverage? $ 343.03 Monthly
a. What portion of this cost is paid by the business? 83%
b. What is the deductible associated with this plan? $ 1,500
3. What is the total premium cost for a standard medical plan for family coverage? $ 1,066.84 Monthly
a. What portion of this cost is paid by the business? 83%
b. What is the deductible associated with this plan? $ 1,500
No additional information required, in this section, if your company meets the requirement 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 by the business, per employee in the chart below:
Benefit Annual amount paid by the
business (per employee):
Dental Insurance – Single plan $60.32
Dental Insurance – Family plan $184.60
Pension (Use 3-year average calculated below)
Retirement Plan - i.e. 401(k) (Use 3-year average calculated below) $1,977.00
Profit Sharing Plan (Use 3-year average calculated below)
Childcare Services
IEDA – Business Financial Assistance Application 8 v.1.28.19
Life Insurance coverage $355.68
Disability Insurance coverage
Health Savings Account (HSA) contribution
TOTAL $2,577.60
5. Does the Business offer a profit-sharing plan? Yes No
If yes, please indicate total amount paid out each year for the past three years and then, determine the average annual
bonus or contribution per employee for that three year period.
Year Ending Average Actual Share per
Employee ($)
$
$
$
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.
IEDA – Business Financial Assistance Application 9 v.1.28.19
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 Iowa.) For jobs to be created,
include the starting 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
CREATED Jobs
Starting
Hourly Wage
Wage at 36 months
following the award
Production Supervisor 5 $29.81 $32.57
Packaging Supervisor 2 $29.81 $32.57
Receiving Supervisor 2 $29.81 $32.57
Shipping Supervisor 2 $29.81 $32.57
HR Manager 1 $48.08 $52.53
Shift HR Manager 2 $27.88 $30.47
HR Clerk 1 $27.89 $30.47
QA Manager 1 $48.08 $52.53
QA Supervisor 4 $29.81 $32.57
Nurse Supervisor 1 $33.65 $36.77
Plant Nurse 3 $22.12 $24.17
Maintenance Manager 1 $52.88 $57.79
Maintenance Supervisor 4 $33.65 $36.77
Operations Manager 1 $62.50 $68.30
Admin 1 $19.23 $21.01
Bulk Auditor 8 $20.93 $22.87
Bulk Operator 8 $20.93 $22.87
Depallitizer Operator 8 $19.38 $21.18
Forklift - Meatroom 4 $19.38 $21.18
Gravy Maker 4 $20.93 $22.87
Kitchen - Reg 4 $22.61 $24.71
Kitchen - Reg (Floater) 1 $22.61 $24.71
Kitchen - Simo 4 $22.61 $24.71
Manifestor 4 $19.38 $21.18
Meatroom Operator 12 $20.93 $22.87
Meatroom Lead 4 $22.61 $24.71
Production Lead 4 $22.61 $24.71
QC Line Tech 4 $22.61 $24.71
QC Line Tech - Floaters 2 $22.61 $24.71
Retort Loader 4 $22.61 $24.71
Retort Operator 4 $22.61 $24.71
Retort Operator (Floater) 1 $22.61 $24.71
Seamer Operator 8 $19.38 $21.18
Tunnel Room Operator 4 $20.93 $22.87
Utility - Production 8 $20.93 $22.87
Utility (Packaging) - LEAD 4 $22.61 $24.71
Inspector- Packaging 8 $16.61 $18.15
Kister Operator 8 $17.94 $19.60
Labeler-Packaging 8 $22.61 $24.71
Palletizer Operator 4 $20.93 $22.87
Retort Unloader 4 $22.61 $24.71
Utility - Packaging 4 $20.93 $22.87
Label Puller - Packaging 4 $22.61 $24.71
People Champion 4 $23.61 $25.80
Maintenance Tech 8 $23.60 $25.79
Sanitation 8 $19.38 $21.18
IEDA – Business Financial Assistance Application 10 v.1.28.19
Bulk Drivers 4 $20.93 $22.87
Cycle Counter - Freezer 2 $22.61 $24.71
Cycle Counter - Raw Materials 2 $22.61 $24.71
Dry Receiving Clerk 2 $16.61 $18.15
Fiber Receiver/Puller 2 $20.93 $22.87
Forklift Dry Receivers 8 $20.93 $22.87
Inter Co. Transfer/Lead 2 $22.61 $24.71
Meat receivers 8 $20.93 $22.87
Meat Receiver Lead 2 $22.61 $24.71
Cycle Counter 2 $22.61 $24.71
Shipper/Receiver(Assist) 4 $20.93 $22.87
Shipping Lead 2 $22.61 $24.71
Forklift Operator 10 $19.38 $21.18
Shipping Clerk 4 $16.61 $18.15
Shipper/Receiver 8 $20.93 $22.87
Shuttle Driver 4 $22.61 $24.71
TBD 10 $20.36 $32.57
Total Full-Time CREATED Jobs 271 $22.18 (avg) $24.24 (avg)
Full-Time RETAINED Jobs (Add additional rows as needed)
Job Title (AT-RISK jobs only)
Number of
RETAINED
Jobs
Current Hourly
Wage
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 –
Simmons Pet Food, Inc.
Page 11 – original redacted from City Council copy, as it contains confidential
information
IEDA – Business Financial Assistance Application 12 v.1.28.19
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.
This project will deliver the required utilities, building infrastructure, and equipment to support a new Pet Food
canning line providing Simmons' customers with quality Private Label and Co-Manufactured Pet Food products.
The project includes adding an additional 23,000 sq feet of production and utility building space to the existing
263,000 sq foot facility. The line will run 22 oz and 5 oz can sizes to support several different product portfolios.
A2 Payroll Information (Confidential)
x Copies of the Business’ Quarterly Iowa Employer’s Contribution and Payroll Report for the past
year. This report should include the monthly employment totals.
x 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.
See attached letter
A4 Financial Information (Confidential, unless already publicly available) (Existing Businesses Only)
x Profit and loss statements and balance sheets for past three year-ends;
x Current YTD profit and loss statement and balance sheet;
x Schedule of aged accounts receivable;
x Schedule of aged accounts payable; and
x Schedule of other debts.
See attached Summary Financials
A5 Collateral documentation (If requesting direct financial assistance only)
A6 Brownfield or Grayfield site documentation (if applicable)
IEDA – Business Financial Assistance Application 13 v.1.28.19
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 **
** Simmons Pet Food, Inc. is not involved in any litigation of this type; however, Simmons Pet Food, Inc.
and, Simmons Foods, Inc., are named in the Civil case, Copeland vs CAAIR, which involves employment
practices. Additionally, we are a party to a number of legal proceedings typical of a corporation our size in
the ordinary course of business.
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 **
** Simmons Pet Food, Inc. is not involved in any antitrust litigation; however, two affiliated companies,
Simmons Foods, Inc. and Simmons Prepared Foods, Inc., are named in the Broiler Antitrust
Litigation, currently pending in the Northern District of Illinois. Additionally, we are a party to a number of
legal proceedings typical of a corporation our size in the ordinary course of business.
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.
Roy D. Buol
Mayor
12/11/20