CEBA App Vessel Systems, IncJune 26,2003
~'/-~-~ Dep~rtment of
~iOwa.] Economic Development
SMART tDEATM
The Honorable Terrance M. Duggan
Mayor, City of Dubuque
City Hall, 50West 13~ Street
Dubuque, Iowa 52001
RE:
Community Economic Betterment Account (CEBA)
Application No. 03-CEBA-28: Vessel Systems, Inc.
Dear Mayor Duggan:
It is my pleasure to advise you that on June 19, 2003, the Iowa Department of Economic
Development Board of Directors approved your community's application for CEBA assistance on
behalf of the above-captioned business. The Board approved the CEBA Project Review
Committee's recommendation to provide a forgivable loan in an amount not to exceed $62,500
and a 0% four-year loan in an amount not to exceed $62,500. The project must be administered
in accordance with current CEBA administrative rules, and the award is contingent upon the
Department finding that the Business has an acceptable record with respect to state and federal
law compliance to include environmental compliance.
In addition, the company must comply with the 1999 Iowa Code, Section 15A.1(3), which requires
companies receiving state financial assistance to conduct in-house audits and management plans
to reduce the amount of hazardous waste generated and to safely dispose of those wastes. To
assist you in complying with these statutes, we have attached a listing indicating some of the
technical assistance sources for both Energy Efficiency Design and Management and Waste
Reduction Design and Management.
The following activities must be accomplished prior to release of funds.
1. A Loan Agreement, prepared by the Iowa Department of Economic
Development, must be executed by the parties.
Businesses generating solid or hazardous waste must either: 1) submit a copy of the
business' existing in-house plan to reduce the amount of waste and safely dispose of the
waste based on an in-house audit conducted within the past three years; 2) submit an
outline of a plan to be developed in-house or 3) submit documentation that the business
has authorized the iowa Department of Natural Resoumes or Iowa Waste Reduction
Center to conduct the audit.
The enclosed Loan Agreement Attachment A should be reviewed and
Attachment B should be completed; then both should be returned to the
Department.
Thomas J. Vilsack, Governor
The business shall have provided documentation to the Department that it has
consulted with the area Workforce Center and Workforce Investment
Act/Promise Jobs Service Delivery Area Office to discuss employment services
available, in addition, the Business shall make available ten percent (10%) ofthe
new jobs created to qualified Promise Jobs program participants. Also, the
business must provide to these agencies a list of positions to be created
including job descriptions and qualifications.
Sally J. Pederson, Lieutenant Governor MichaelT. BIouin, Director
200 East Grand Avenue, Des Moines, Iow~ 50309 Phone: 515.242.4700 Fax: 515.242.4809 www.iowas mar~idea.co m
Documentation shall be submitted to the Iowa Department of Economic Development
indicating funding in the project from the following sources:
Source Type Amount
City of Dubuque LandfflF $331,490
Vessel Systems Cash/Equity $ 76,500
NBA Community College Job Training $100,000
Premier Bank Loan $937,490
The security/collateral required in this project is: Personal Guarantees from
business owners, Blanket UCC-1 and mortgage on real estate. Executed
secudty agreements/liens in the project shall be forwarded to the Department. It
is understood that this security interest will be superior to any Community funds
in the project, excluding conventional bank financing.
CEBA funds are subject to and will be released when the Business establishes
an employee health and safety program approved by Iowa Workforce
Development Division of Labor. The Business is also to remain current on
payment schedule to satisfy violation penalties.
It is further understood that the Community will submit a certified lien search or attorney's
title opinion after the filing of the appropriate CEBA security documents.
The Business acknowledges that if it fails to create/retain 49 FTE (full-time equivalent) jobs by
the Project Completion Date, it will reimburse CEBA funds for the employment shortfall as set out
in the Loan Agreement.
The Iowa Department of Workforce Development can provide labor market information,
recruitment and placement services, proficiency testing, and answers to questions on worker%
compensation, workplace safety and unemployment insurance. Your local Iowa Workforce
Development Office will be notified of your award and will be contacting you to provide additional
information.
Please let us know if we may be of any further assistance. We are looking forward to the
implementation of the project and the new job opportunities it will create.
Sincerely,
Michael Blouin
Director
MB/Idr
Enclosure
CC:
Governor VilsacldLt. Governor Pederson
Ken Heitritter, President, Vessel Systems, Inc.
Bill Baum, City of Dubuque
Senator Mike ConnoIly
Representative Pat Murphy
Russ Tdmble, Legislative Fiscal Bureau
Brian Tormey, Department of Natural Resources
Tony Dietsch, Iowa Workforce Development
CEBA
Nm]ae of Recipient:
Program Year:
City of Dubuque/Vessel Systems,
Inc. (03-CEBA-28)
02/03
IOWA CEBA RECIPIENT BUDGET SUMMARY
ATTACHMENT A
To be filled in by IDED:
Original:
Ammendment #:
PROJECT DESCRIPTION PERFORMANCE TARGET AMOUNT BUDGETED
CEBA RECIPIENT BUSINESS OTHER TOTAL
FUNDS FUNDS FUNDS FUNDS
.A..c. tj .v[ty..1.:. ........................................... Community Base 0
Land Acquisition .~reated 25 $191,490 $191,490 $382,980
24 (bank)
Retained
TOTAL 49
.~.c. tj .v[t.y..2. ~ ........................................... Created/retained positions
Building Construction must have a starting wage $125,000 $140,000 $672,500 $937,500
of at least $10.41/hr. and (bank)
an average wage of at least
$13.10/hr.
,.c.t! .v!tz .3..'. ...........................................
Machinery and Equipment $76,500 $73,500 $150,000
(bank)
.~.c.~ .v!tk4.~ ...........................................
Permanent Working Capital $100,000 $100,000
(NEIA)
.~.c.~ .v!ty..% ...........................................
TOTAL AMOUNT OF ALL FUNDS BUDGETED $125,000 $33'1,490 $76,500 $1,037,490 $'1,570,480
ATTACHMENT B
CEBA Name of Recipient City of Dubuque/Vessel Systems, Inc.(03-CEBA-28)
IOWA CEBA RECIPIENT PROGRAM SCHEDULE
2003
PROJECT ACTIVITY: Loan to the City of Dubuque 1s, Qtl'. 2na (~tr. 3r° Qtr. 4TM Qtr.
for Vessel Systems, Inc.
J A S O N D J F M A M J
Milestones: I I / I I I I / I I I I
1. Land Acquisition
2. Building Construction
3. Machinery and Equipment
4. Permanent Working Capital
$.
6.
7.
2004
PROJECT ACTIVITY: Loan to the City of Dubuque 5~ Qtr. 6th Qtr. 7th Qtr. 8th Qtr.
for Vessel Systems, Inc.
J A S O N D J F M A M J
Milestones: /I I I I/ II I I/I
1. Land Acquisition
2. Building Construction
3. Machinery and Equipment
4. PermanentWorking Capital
5.
6.
7.
ATTACHMENT B
CEBA Name of Recipient: CityofDubuque/Vessel Systems, Inc.(03_CEBA_28)
IOWA CEBA RECIPIENT PROGRAM SCHEDULE
2005
PROJECT ACTIVITY: Loan to the City of Dubuque 9th Qtr. 10th Qtr. 11th Qtr. 12~ Qtr.
for Vessel Systems, Inc.
J A S O N D J F M A M J
Milestones: II I I //// /I II
1. Land Acquisition
2. Building Construction
3. Machinery and Equipment
4, Permanent Working Capital
5.
6.
7.