State of Iowa Financial Assistance Application_Sedgwick Claims Management Inc.Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: State of Iowa Financial Assistance Application for Sedgwick Claims
Management, Inc.
DATE: August 10, 2010
Dubuque
biltd
All - America City
1
2007
Economic Development Director Dave Heiar advises that the Greater Dubuque
Development Corporation has been working with Sedgwick CMS, Inc. on an expansion
project and is recommending approval of a 130% Component and High Quality Jobs
Program Financial Assistance application to the Iowa Department of Economic
Development on behalf of Sedgwick Claims Management, Inc.
Sedgwick Claims Management Services, Inc. (Sedgwick CMS) is the largest
independent national third -party administrator of workers' compensation, liability,
disability, and Family Medical Leave Act claims. More than four decades ago,
Sedgwick CMS opened for business with the goal of providing top - quality claims
administration services for on- the -move companies. Today, the company is a leader
and standard setter in the third -party administration (TPA) industry.
Sedgwick CMS represents clients with operations in all fifty states and Canada. Some
of the Company's largest clients include Boeing, Federal Express, Target Corporation,
AT &T, General Electric, Lowe's, PepsiCo, The Kroger Company and other household
names in auto manufacturing, retailing, technology, healthcare, financial services, not -
for- profit and public entities, and other fields central to the American economy.
Sedgwick CMS established an office operation in Dubuque in 2006. At that time, with
State of Iowa assistance, the company proposed to create 75 new jobs and invest over
$2 million. This project was a great success, and the company now employs over 200
persons in the Dubuque facility.
The 130% Component application on behalf of the company will provide financial
assistance to enable the company's proposed development in Dubuque. As required by
the 130% Component program, the application requires a commitment of City funds to
the project.
This particular expansion project puts a very "regional approach" to our development
efforts. Sedgwick will commit to create 150 new jobs of which 106 will be located in
Dubuque and 44 will be located in Bellevue, Iowa. The total starting annual payroll for
the new positions is $5,348,119, representing an average wage of $35,654 per year.
To assist this project, Sedgwick has requested the City of Dubuque assist with an
application for State of Iowa assistance. City assistance as public match for the
application is required, and is estimated at $467,880 consisting of a 7 year TIF rebate
(on an increased value of $2,000,000).
Dubuque will be providing sufficient local match for the entire application. Jobs created
in Bellevue would bolster economic development in the region, and since Dubuque is
the economic hub of the region, the City will receive economic benefits from the created
jobs.
concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director` ti
SUBJECT: State of Iowa Financial Assistance Application for Sedgwick Claims
Management, Inc.
DATE: August 5, 2010
Dubuque
AA- Ameaicagtr
2007
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing
the submission of a 130% Component and High Quality Jobs Program (HQJP) Financial
Assistance application to the Iowa Department of Economic Development on behalf of
Sedgwick Claims Management, Inc. The application is attached.
BACKGROUND
Sedgwick Claims Management Services, Inc. (Sedgwick CMS) is the largest independent
national third -party administrator of workers' compensation, liability, disability, and FMLA
claims. More than four decades ago, Sedgwick CMS opened for business with the goal of
providing top - quality claims administration services for on- the -move companies. Today, the
company is a leader and standard setter in the third -party administration (TPA) industry.
Sedgwick CMS represents clients with operations in all fifty states and Canada. Some of
the Company's largest clients include Boeing, Federal Express, Target Corporation, AT &T,
General Electric, Lowe's, PepsiCo, The Kroger Company and other household names in
auto manufacturing, retailing, technology, healthcare, financial services, not - for - profit and
public entities, and other fields central to the American economy.
Sedgwick CMS established an office operation in Dubuque in 2006. At that time, with State
of Iowa assistance, the company proposed to create 75 new jobs and invest over $2 million.
This project was a great success, and the company now employs over 200 persons in the
Dubuque facility.
The 130% Component application on behalf of the company will provide financial assistance
to enable the company's proposed development in Dubuque. As required by the 130%
Component program, the application requires a commitment of City funds to the project.
DISCUSSION
This particular expansion project puts a very "regional approach" to our development efforts.
Sedgwick will commit to create 150 new jobs of which 106 will be located in Dubuque and
44 will be located in Bellevue, Iowa. The total starting annual payroll for the new positions is
$5,348,119, representing an average wage of $35,654 per year.
To assist this project, Sedgwick has requested the City of Dubuque assist with an
application for State of Iowa assistance. The project will include a 10,000 sq. ft. expansion
of their existing facility. City assistance as public match for the application is required, and
is estimated at $467,880 consisting of a 7 year TIF rebate (on an increased value of
$2,000,000).
Dubuque will be providing sufficient local match for the entire application. Jobs created in
Bellevue would bolster economic development in the region, and since Dubuque is the
economic hub of the region, the City will receive economic benefits from the created jobs.
RECOMMENDATION
I recommend that the City Council authorize the submission of an application for state
assistance on behalf of Sedgwick with a commitment of local matching funds.
This regional project is consistent with the City's goals to help businesses expand in the
area, increase the number of good paying jobs and further diversify the economic base
of the area.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
attachments
F: \USERS \Econ Dev \Sedgwick\2010 130% Component\20100805 Sedgwick 130% app Memo.doc
RESOLUTION NO. 335 -10
A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR STATE
FINANCIAL ASSISTANCE ON BEHALF OF SEDGWICK CLAIMS MANAGEMENT
SERVICES, INC.
Whereas, Sedgwick Claims Management, Inc. has proposed the expansion of its
operations in Dubuque, Iowa and Bellevue, Iowa; and
Whereas, the City Council of Dubuque, Iowa has considered said proposal and
has determined that the proposed project will contribute to the local economy through
the creation of 150 total jobs; 106 new jobs for area residents and 44 new jobs for the
City of Bellevue; and
Whereas, the Iowa Department of Economic Development's 130% Component
Financial and High Quality Jobs Program (HQJP) Assistance Program was designed to
assist in the economic development efforts of local jurisdictions; and
Whereas, the City of Dubuque, Iowa is eligible to apply for funding from the 130%
Component program and HQJP Program.
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 130%
Component Financial Assistance Program on behalf of Sedgwick Claims Management,
Inc. is hereby approved.
Section 2. That the local match identified in the application estimated at $467,880
consisting of TIF rebates for increased building valuation estimated at $2 million to the
company is hereby approved, subject to the 130% Component and HQJP application
approval. The Schedule of TIF rebates are as follows:
2012 $66,840
2013 $66,840
2014 $66,840
2015 $66,840
2016 $66,840
2017 $66,840
2018 $66,840
Section 3. That the Mayor is hereby authorized to execute and the City Manager is
hereby directed to submit said application to the Iowa Department of Economic
Development together with such documents as may be required.
Atte
Passed, approved, and adopted this 16 day of Au st
anne Schneider, City Clerk
F: \USERS \Eton Dev \Sedgwick\2010 130% Component\20100816 Resolution Sedgwick app approval.doc
Roy D. Buol, Mayor
IOWA
li /r 'chan
Business Financial Assistance
Application
Business Finance
Business Development Division
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, Iowa 50309 -1819
www.iowalifechanging. corn
Telephone: 515.725.3133
businessfinance@iowa.gov
Bret L. Mills Director
Iowa Department of Economic Development
v.2.19.2010
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.
Direct Financial Assistance — STATE of IOWA
® 130% Component
(no supplement)
❑ 100% Component
(no supplement)
❑ Entrepreneurial Component (and Supplement)
Supplemental information required
Tax Credits — STATE of IOWA
® Enterprise Zone Program (EZ)
Supplemental information required
Direct Financial Assistance — FEDERAL
p Economic Development Set -Aside Program (EDSA)
Supplemental information required
❑ Infrastructure Component
(no supplement)
❑ Value -Added Agriculture Component
Supplemental information required
❑ Disaster Relief Component
Supplemental information required
❑ High Quality Jobs Program (HQ)
(no supplement)
❑ Public Faclities Set -Aside Program (PFSA)
Supplemental information required
2. Please visit the IDED Web site at www.iowalifechanging.com or contact IDED at 515.725.3133 to confirm that this is
the most current application version.
3. Before filling out this application form, please read all applicable sections of the 2009 Iowa Code and Iowa
Administrative Code (rules). www .legis.state.ia.us /IowaLaw.html
4. 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.
5. Complete the applicable sections of the application fully. If questions are left unanswered or required attachments are
not submitted, an explanation must be included.
6. Use clear and concise language. Attachments should only be used when requested or as supporting documentation.
7. Any inaccurate information of a significant nature may disqualify the application from consideration.
8. The following must be submitted to Business Finance at IDED in order 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.
Business Finance
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, IA 50309 -1819
Applications are must be submitted to IDED Business Finance before 4:00 p.m. on the fourth Monday
of the month.
Applications will be reviewed by the IDED Board on the third Thursday of the following month.
IDED — Business Financial Assistance Application
Telephone: 515.725.3133
business finance(a,iowa.gov
2 v. 02.19.2010
Public Records Policies
Information Submitted to IDED. The Iowa Department of Economic Development (IDED) is subject to the Open
Records law (Iowa Code. Chapter 22). Treatment of information submitted to IDED in this application is governed by the
provisions of the Open Records law. All public records are available for public inspection. Some public records are
considered confidential and will not be disclosed to the public unless ordered by a court, the lawful custodian of the record,
or by another person duly authorized to release the information.
Confidential Records. IDED automatically treats the following records as confidential and they are withheld from public
disclosure:
• Tax Records
• Quarterly Iowa Employer'.r Contribution and Payroll Report prepared for the Iowa Workforce Development Department
• Payroll Registers
• Business Financial Statements and Projections
• Personal Financial Statements
Other information supplied to IDED as part of this application may be treated as confidential under Iowa Code section
22.7. Following are the classifications of records which are recognized as confidential under Iowa law and which are most
frequently applicable to business information submitted to IDED:
• Trade secrets [Iowa Code §22.7(3)]
• Reports to governmental agencies which, if released, would give advantage to competitors and serve no public purpose.
[Iowa Code §22.7(6)]
• Information on an industrial prospect with which the IDED is currently negotiating. [Iowa Code §22.7(8)]
• Communications not required by law, rule or regulation made to IDED by persons outside the government to the
extent that IDED could reasonably believe that those persons would be discouraged from making them to the
Department if they were made available for general public examination. [Iowa Code X22.7(18)]
Information supplied to IDED as part of this application that is material to the application and /or the state
program to which the applicant is applying including, but not limited to the number and type of jobs to be
created or retained, wages for those jobs, employee benefit information, and project budget, are considered open
records and will not be treated as confidential.
Additional Information Available. Copies of Iowa's Open Record law and IDED's administrative rules relating to public
records are available from the IDED upon request.
IDED — Business Financial Assistance Application
3 v. 02.19.2010
Applicant Information
Name of Business: Sedgwick Claims Management Services Inc.
Address: 1100 Ridgeway Loop Road, Ste. 200
City, State & Zip Code: Memphis, TN 38102
Contact Person: Linda Lagesse Title: AVP Corporate Real Estate & Administrative Manager
Phone: 901 415 -7590 Fax: 901 415 -7490 Email: Linda.lagesse @sedgwickcros.com
Federal ID Number: 36 - 2685608
NAICS Code for primary business operations:
US DOT Number:
Does the Business file a consolidated tax return under a different tax ID number?
® Yes ❑ No
If yes, please also provide that tax ID number: 20 - 4183257
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:
Edwin B. Brewer, Jr., CFO
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
Sponsor Organization: City of Dubuque, Iowa
Official Contact (e.g. Mayor, Chairperson, etc.): Roy Buol
Address: City Hall, 50 West 13 Street
City, State & Zip Code: Dubuque, Iowa 52001
Phone: 563 589 - 4110 Fax: 563 589 - 0890
Title: Mayor
Email: rdbuol @cityofdubuque.org
If IDED needs to contact the sponsor organization with questions, should we contact the person listed above?
❑ Yes ® No, please contact the following person:
Name: David Heiar Title: Economic Development Director
Address: City Hall 50 West 13 Street
City, State & Zip Code: Dubuque, Iowa 52001
Phone: 563 589 - 4393 Fax: 563 589 - 1733 Email: dheiar @cityofdubuque.org
If necessary, please list information on additional sponsors in an attachment.
City of Bellevue
Loras Herrig, City Administrator
106 N. 3rd Street
Bellevue, IA 52031
563 - 872 -4456 Email: lorasna.ivuenet.com
IDED — Business Financial Assistance Application
4 v. 02.19.2010
Certification & Release of Information
I hereby give permission to the Iowa Department of Economic Development (IDED) 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 IDED 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 IDED related to this application is subject to Iowa's Open Record Law
(Iowa Code, Chapter 22).
I understand this application is subject to final approval by IDED and the Project may not be initiated until final approval is
secured.
1 understand that 1DED reserves the right to negotiate the financial assistance. Furthermore, I am aware that fmancial
assistance is not available until an agreement is executed within a reasonable time period following approval.
I hereby certify that all representations, warranties, or statements made or furnished to IDED 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.
Name and Title (typed or printed)
For the ,Sjionsp�
(s): •
r r
t "f
Signature
Roy D. Buol, Mayor
Name and Title (typed or printed)
Signature Date
Name and Title (typed or printed)
IDED — Business Financial Assistance Application
Date
Date
Please use the fa/laving if more than one sponsor is required (For example, use this if a signature from the local Enterprise Zone Commission is
required in addition to the signature from the Mayor of the .panning
IDED 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, IDED may initiate legal action
to recover incentives and assistance awarded to the Business.
5 v. 02.19.2010
Certification & Release of Information
I hereby give permission to the Iowa Department of Economic Development (IDED) 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 IDED 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 IDED related to this application is subject to Iowa's Open Record Law
(Iowa Code, Chapter 22).
I understand this application is subject to final approval by IDED and the Project may not be initiated until final approval is
secured.
I understand that IDED reserves the right to negotiate the financial assistance. Furthermore, I am aware that financial
assistance is not available until an agreement is executed within a reasonable time period following approval.
I hereby certify that all representations, warranties, or statements made or furnished to IDED 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:
Signature Date
Edwin B. Brewer, Jr.. CFO
Name and Title (typed or printed)
For the Sponsor(s):
Signature Date
Virgil Murray, Mayor
Name and Tide (typed or printed)
Please use the following if more than one sponsor is required. (For example, use this if a signature from the local Enterprise Zone Commission is
required in addition to the signature from the Mayor of the sponsoring city.)
Signature Date
Name and Title (typed or printed)
IDED 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, IDED may initiate legal action
to recover incentives and assistance awarded to the Business.
IDED — Business Financial Assistance Application
August 16, 2010
6 v. 02.19.2010
Business Information
Provide a brief description and history of the Business. Include information about the Business' products or services and its markets
and /or customers.
Sedgwick Claims Management Services, Inc. (Sedgwick CMS) is the largest independent national third -party
administrator of workers' compensation, liability, disability, and FMLA claims. More than four decades ago,
Sedgwick CMS opened for business with the goal of providing top - quality claims administration services for on-
the -move companies. Today, we are a leader and standard setter in the third -party administration (TPA)
industry.
Sedgwick CMS represents clients with operations in all fifty states and Canada. Our revenues for 2009
exceeded $700 million. Some of our largest clients include Boeing, Federal Express, Target Corporation,
AT &T, General Electric, Lowe's, PepsiCo, The Kroger Company and other household names in auto
manufacturing, retailing, technology, healthcare, financial services, not - for - profit and public entities, and other
fields central to the American economy.
Sedgwick CMS established an office operation in Dubuque in 2006. At that time, with State of Iowa assistance,
the company proposed to create 75 new jobs and invest over $2 million. This project was a great success, and
the company now employs over 200 persons in the Dubuque facility.
Business Structure:
❑ Cooperative ® Corporation
❑ Partnership ❑ S- Corporation
State of Incorporation: Illinois
❑ Limited Liability Company ❑ Not for Profit
❑ Sole Proprietorship
Identify the Business' owners and percent ownership: Stone Point Capital LLC and Hellman & Friedman LLC, together with
management, have 100 percent ownership of Sedgwick Holdings, Inc (Sedgwick).
Does a woman, minority, or person with a disability own the Business?
If yes, is the Business certified as a Targeted Small Business?
Project Information
Type of Business Project:
❑ Startup
® New Location in Iowa
IDED — Business Financial Assistance Application
® Expansion of Iowa Company
® Relocation from another State
❑ Yes
❑ Yes
Project Street Address: Digital Drive
Project City: Dubuque Project County: Dubuque
® No
® No
List the Business' Iowa locations and the current number of employees at each location. Dubuque: 210, West Des Moines 77, and
Urbandale 1.
What is the Business' worldwide employment? Please include employees of parent company, subsidiaries, and other affiliated entities in
this figure. 6400 in US and Canada
Briefly 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 create150 positions in Iowa, some of which are now housed in Atlanta. 106 new
positions will be added in Dubuque and 44 in Bellevue. These job expansions in Iowa will require the
construction of new facilities by a developer(s) for both locations. Sedgwick CMS is proposing to lease an
additional 10,000 square feet in Dubuque, and 6000 square feet in Bellevue. Sedgwick is proposing to invest
approximately $4,000,000 in startup operations, including equipment, furniture and fixtures, and training costs.
The Company will be leasing temporary space in Dubuque until the permanent facilities are ready for
occupancy.
7 v. 02.19.2010
Project Timeline (add additional rows as needed)
Activity Completion Date
Begin employment and expending costs: September 1, 2010
September 1, 2013
Lease temporary space: September 1, 2010
March 1, 2011
Construction of new facilities by developer(s): September 1,
2010
March 1, 2011
Lease permanent space from Developer(s) and relocate from
temporary space: March 1, 2011
Please identify the project management for the project location and experience. Linda Lagesse, AVP Corporate Real Estate &
Administrative Manager will be the project manager responsible for leasing temporary and permanent
facilities. Linda has been a colleague with Sedgwick since 1999 and has been responsible for
approximately 100 similar office expansions. Mark Gessner is the company's operations manager in
Dubuque, and has supervisory responsibility for employee performance. Mark has been with the company
in Dubuque since 2006. Julia Holdridge, PHR, Colleague Resources Manager is in charge of the local
Sedgwick Human Resources Department and will be providing information from the company to track and
verify employment.
Has any part of the project started? ❑ Yes ® No
If yes, please explain.
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. Typical competitors are Third Party Administrators nationwide. Similar national companies in Iowa include
Gallagher Bassett and EMC Risk Services, The Company is not aware of any Iowa competitors that would be impacted
by this expansion.
Will any of the current Iowa employees lose their jobs if this project does not proceed in Iowa?
❑ Yes ® No
If yes, please explain why and identify those jobs as "retained jobs" in the Project Jobs section.
IDED — Business Financial Assistance Application
8 v. 02.19.2010
PROPOSED FINANCING
Source of Funds
Amount
Form of Funds
Rate and
Term
Commitm
ent Status
Conditions /Additional
Information
(List tax benefits separately below, not as a
source of direct financing)
(Loan, Grant, In -Kind,
Donation, etc.)
Include when funds will be disbursed;
If loan, whether payments are a level
term, balloon, etc
Source A: IDED*
$440,000
50% FU50 %RL
0% on
50% for 5
years
Contract
approvals
by
company
and State
Funds will be requested
when company moves to
permanent space in March of
2011.
Source B: Other State
(Community College,
IDOT, etc.)
Site Preparation
Source C: Local Government:
$
Source D: Business
$4,141,000
Cash
Firm
Source E: Other Private Sources
$3,650,000
Developer's Cash
Building Construction
Pending
Company /Developer leases
in process;
Developer /Company
negotiations on building
locations etc in process.
Source F:
$
$3,200,000
Source G: I
$
TOTAL
$8,231,000
Mfg. Machinery & Equip.
AMOUNT BUDGETED
Use of Funds
Cost
Source A
Source B
Source C
Source D
Source E
Source F
Source G
Land Acquisition
$450000
$450,000
Site Preparation
Building Acquisition
Building Construction
$3,200,000
$3,200,000
Building Remodeling
Mfg. Machinery & Equip.
Other Machinery & Equip.
Racking, Shelving, etc)
Computer Hardware
$2,376,000
$2,376,000
Computer Software
Furniture & Fixtures
$1,005,000
$440,000
$565,000
Working Capital
$1,200,000
$1,200,000
Research & Development
Job Training
TOTAL
$8,231,000
$440,000
$
$
$4,141,000
$3,650,000
$
$
Project Budget: Dubuque and Bellevue (See attached individual breakouts)
1 Racking, shelving and conveyor equipment used in distribution center projects only
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) and the length of the lease agreement. The company is
negotiating leases for at total of 16,000 square feet @$15 or $240,000 per year.
* Identify the collateral used to secure IDED funds: The Company will provide a corporate guarantee for the direct financial
assistant provided by the State of Iowa.
IDED — Business Financial Assistance Application 9
v. 02.19.2010
TAX CREDITS AND INDIRECT FINANCING
Source of Funds
Amount
Description
Investment Tax Credit
$131,992
Based on 5 years of lease payments on
properties and capital investments on
depreciable equipment.
Sales, Service & Use Tax Refund
$80,000
Based on estimated cost of new buildings
Doubled Research Activities Credit
Supplemental Withholding
Local Property Tax Exemption
Tax Increment Financing
$467,800
7 years of TIF rebates from Dubuque
based on $2 million increased valuation.
260E Job Training Funds
$644,450
Reimbursements for training based upon
estimates from the Community College
In -kind Contribution
Other
TOTAL
$1,324,242
What measures were analyzed to determine the amount and form of assistance needed? Relocating the business from Atlanta to
Iowa is very expensive and time consuming from a Human Resources standpoint. The company therefore has
determined the above amounts as appropriate from state and local governments in Iowa.
Is the Business actively considering locations outside of Iowa? ® Yes ❑ No
If yes, where and what assistance is being offered? Some of these jobs are being relocated from Atlanta so the
Company's first option is to leave those positions in place. Sedgwick CMS operates 100 stand alone offices
nationwide. Other offices that have been considered for this project are: Southfield, Michigan, and Chicago, III. The
company has not pursued offers from these other states, but all have similar incentives.
There are three general justifiable reasons for assistance. Check the box next to the reason why assistance is needed to complete this
project.
❑ Financing Gap - The Business can only raise a portion of the debt and equity necessary to complete the project. A
gap between sources and uses exists and state and /or federal funds are needed to fill the gap.
❑ Rate of Return Gap — The Business can raise sufficient debt and equity to complete the project, but the returns are
inadequate to motivate an "economic person" to proceed with the project. Project risks outweigh the rewards.
® Location Disadvantage (Incentive) — The Business is deciding between a site in Iowa (site A) and a site in another
state (site B) for its project. The Business argues that the project will cost less at site B and will require a subsidy to equalize
costs in order to locate at site A. The objective here is to quantify the cost differential between site A and site B.
The incentive is necessary to finalize the Company's proposal to move the positions from Atlanta (site A) to
Iowa. The cost of keeping the jobs in Atlanta is $0. The work ethic in our Iowa facilities is outstanding.
However, the cost of placing these positions in Iowa is very expensive, and the incentives requested from the
State of Iowa are necessary for the Company to finalize the relocation.
IDED — Business Financial Assistance Application
10 v. 02.19.2010
Dubuque County Jobs
Full -Time CREATED Jobs
Job Title
Number of
CREATED
Jobs
Starting Wage
Wage at End of
Year Three
Claims Examiner I
12
$30,237.00
$31,459.00
Claims Examiner II
15
$40,298.00
$41,926.00
Claims Examiner III
7
$55,513.00
$57,756.00
Claims Supervisor
12
$51,370.00
$53,445.00
Customer Service Rep II
40
$26,335.00
$27,399.00
FMLA Specialist
10
$30,704.00
$31,944.00
Service Center Team Lead
4
$37,320.00
$38,828.00
Program Managers
6
$65,000.00
$67,600.00
Total CREATED Jobs
106
Jackson County Jobs
Full -Time CREATED Jobs
Job Title
Number of
CREATED
Jobs
Starting Wage
Wage at End of
Year Three
Claims Examiner I
1
$30,237.00
$31,459.00
Claims Examiner II
2
$40,298.00
$41,926.00
Claims Examiner III
3
$55,513.00
$57,756.00
Claims Supervisor
1
$51,370.00
$53,445.00
Customer Service Rep II
24
$26,335.00
$27,399.00
FMLA Specialist
8
$30,704.00
$31,944.00
Service Center Team Lead
2
$37,320.00
$38,828.00
Program Managers
3
$65,000.00
$67,600.00
Total CREATED Jobs
44
Project Jobs
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.
Is the hourly wage rate based on a 40 hour work week, 52 weeks per year? ❑ Yes ® No
If no please explain: The company has a 37.5 hour work week.
IDED — Business Financial Assistance Application 11
v. 02.19.2010
Employee Benefits
Provided by the
Business
Total Annual Cost (show
on a per employee basis)
Portion of Total Annual
Cost Paid by the Business
Plan Provisions
2008
Emplovee
Family
Employee
Family
_
Medical/Health
Tier 1: 90 / 10
$5,352.00
$16,032.00
$4,068.00
$12,180.00
$500 /$1000 Deductible. $1500/2500 out of pocket
max, $25 per office visit/$50 specialist
Tier 2: 80 / 20
$4,548.00
$13,632.00
$3,456.00
$10,368.00
$500 /$1000 Deductible. $1500/2500 out of pocket
max, $25 per office visit/$50 specialist
Tier 3: 75 / 25
$4,320.00
$12,948.00
$3,528.00
$10,536.00
$500 /$1000 Deductible. $3000/$5000 out of pocket
max, $25 per office visit/$50 specialist
Dental Insurance
$396.00
$1,188.00
$300.00
$924.00
$50 /$100 Deductible. Preventative 100% -
Restorative after deductible - 80 %, $1500 annual
max
Vision Insurance
$77.52
$237.12
n/a
n/a
$10 exam visit. $25 co -pay on eye glasses and
contacts
Life Insurance
Varies
100%
Two times base salary 100% funded by company
Short Term
Disability
Varies
100%
100% funded by company based on length of service,
6 months of service 50% to 100%
Long Term
Disability
Varies
100%
40% of base pay with a maximum monthly benefit of
$10,000, Supplemental LTD of 20% available at
100% employee cost
Year Endin g
Average Actual Match
per Employee ( %)
2009
3.00
2008
3.07
2007
2.99
Three -year Average:
3.02
Employee Benefits
Please identify all employee benefits provided by and paid for (in full or in part) by the Business.
Does the Business offer a pension plan, 401(k) plan, and /or retirement -plan? E 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 (show
average as a percentage of salary).
For 401(k) only, business matches 662/3 cents for every $1 employee contributes up to first 6% saved.
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.
IDED — Business Financial Assistance Application
12 v. 02.19.2010
Local Business Taxes
Year 1
Year 2
Year 3
Year 4
Year 5
Local Real Estate Property Tax
$66,828
$66,828
$66,828
$66,828
$66,828
Local Option Sales Tax
$90,820
-
-
-
-
State Business Taxes
Year 1
Year 2
Year 3
Year 4
Year 5
State Corporate Income Tax*
State Business Sales and Use Tax
$227,050
-
-
-
-
Business Taxes
IDED is required to calculate the return on state and local government investments in this project. Data from other parts of the
application will be combined with the estimates requested below to calculate the required return on investment information Please read
the following directions carefully:
• IDED is asking for a best estimate on the increase in taxes associated with this project.
• Estimates should only include the expected increase in tax liability resulting from this project.
• At minimum, IDED needs estimates for the first three years of the project.
• Show data as if no tax abatements or tax credits awarded for this project were taken.
• For partnership forms of ownership (e.g. limited partnerships, s- corporations, LLC, etc.), please estimate the partners'
increase in Iowa tax liability due to this project.
• Sales and use taxes refer to the taxes paid on materials, etc. that the Business purchases, not taxes you collect from
sales to your customers.
• Applicants will not be held to these numbers with respect to any award from or contract with IDED.
• This page of the application will automatically be treated as confidential.
Increase in Tax Collections Associated with this Project
* Insurance Companies: Provide State Insurance Premium Tax
CONFIDENTIAL
IDED — Business Financial Assistance Application
13 v. 02.19.2010
Attachments
Please attach the following documents:
Al Business Plan NA
At a minimum, include:
• Marketing study
• Feasibility study
• Projected profit and loss statements for three years into the future
• Project budget
• Production operations
• Management structure
• Personnel needs
• Descriptions of product or process
• Status of product /process development
• Patent status (if applicable)
(Any information outlined above not included in the business plan should be submitted as supplemental information via a
separate attachment.)
A2 Copies of the Business' Quarterly Iowa Employer's Contribution and Payroll Report Summary Page (Page 1) for the
past year and 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:
• Company name, date of payroll and source of payroll information
• Employee name and /or employee identification number
• Current hourly wage - do not include bonuses or other benefit values
• Indicate if the employee is full time (40 hours per week, 52 weeks per year) or part time. Click here to download a
sample payroll Excel spreadsheet.
Affidavit that states the Business has not, within the last five years, violated state or federal statutes, rules, and regulations,
including environmental and worker safety regulations, 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. Click here to download a
sample affidavit.
A4 Financial Information (Existing Businesses Only)
• Profit and loss statements and balance sheets for past three year -ends;
• Current \ ID profit and loss statement and balance sheet;
• Schedule of aged accounts receivable;
• Schedule of aged accounts payable; and
• Schedule of other debts.
IDED — Business Financial Assistance Application
IOWA
1 changing'
14 v. 02.19.2010
PROPOSED FINANCING
Source of Funds
Amount
Form of Funds
Rate and
Term
Commitm
ent Status
Conditions /Additional
Information
(List tax benefits separately below, not as a
source of direct financing)
(Loan, Grant, In -Kind,
Donation, etc.)
Include when funds will be disbursed;
If loan, whether payments are a level
term, balloon, etc
Source A: IDED*
$310,900
50/50
0% on
50% for
five years
Contract
approvals
by State
Funds will be requested
when company moves to
permanent space.
Source B: Other State
(Community College,
IDOT, etc.)
$
Site Preparation
$467,800
Rebate of Dubuque property taxes for 7
years
Source C: Local Government
$
Based on 150 new positions in Dubuque
In - kind Contribution
Source D: Business
$2,828,307
Cash
Firm
Source E: Other Private Sources
$2,350,000
Cash
Building Construction
Pending
Company /Developer
agreements in process
Source F:
$
$2,000,000
Source G: I
$
TOTAL
$5,489,207
Mfg. Machinery & Equip.
AMOUNT BUDGETED
Use of Funds
Cost
Source A
Source B
Source C
Source D
Source E
Source F
Source G
Land Acquisition
$350,000
Supplemental Withholding
$350,000
Site Preparation
$467,800
Rebate of Dubuque property taxes for 7
years
260E Job Training Funds
$644,450
Based on 150 new positions in Dubuque
In - kind Contribution
Building Acquisition
$1,264,450
Building Construction
$2,000,000
$2,000,000
Building Remodeling
Mfg. Machinery & Equip.
Other Machinery & Equip.
Racking, Shelving, etc.
Computer Hardware
$1,679,040
$1,679,040
Computer Software
Furniture & Fixtures
$710,167
$310,900
$399,267
Working Capital
$750,000
$750,000
Research & Development
Job Training
TOTAL
$5,489,207
$310,900
$
$
$2,828,307
$2,350,000
$
$
TAX CREDITS AND INDIRECT FINANCING
Source of Funds
Amount
Description
Investment Tax Credit
$102,200
$750,000 in lease and 710,000 in F &F
Sales, Service & Use Tax Refund
$50,000
$2,000,000 new building
Doubled Research Activities Credit
Supplemental Withholding
Local Property Tax Exemption
Tax Increment Financing
$467,800
Rebate of Dubuque property taxes for 7
years
260E Job Training Funds
$644,450
Based on 150 new positions in Dubuque
In - kind Contribution
Total
$1,264,450
Project Budget: Sedgwick CMS (Dubuque)
1 Racking, shelving and conveyor equipment used in distribution center projects only
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) and the length of the lease
agreement. The Company is negotiating a lease in Dubuque estimated to cost $15 per square feet for
10,000 square feet.
* Identify the collateral used to secure IDED funds: Corporate Guarantee
PROPOSED FINANCING
Source of Funds
Amount
Form of Funds
Rate and
Term
Commitm
ent Status
Conditions /Additional
Information
(List tax benefits separately below, not as a
source of direct financing)
(Loan, Grant, In -Kind,
Donation, etc.)
Include when funds will be disbursed;
If loan, whether payments are a level
term, balloon, etc
Source A: IDED*
$129,100
50/50
0% for 5
years on
the loan
Subject to
contract
negotiatio
ns
Upon leasing permanent
space
Source B: Other State
(Community College,
IDOT, etc.)
$
Site Preparation
Source C: Local Government
$
In -kind Contribution
Source D: Business
$1,312,693
Cash
Firm
Source E: Other Private Sources
$1,300,000
Building Construction
Pending
Company /Developer leases
in negotiations
Source F:
$
$1,200,000
Source G: I
$
TOTAL
$2,741,793
Mfg. Machinery & Equip.
AMOUNT BUDGETED
Use of Funds
Cost
Source A
Source B
Source C
Source D
Source E
Source F
Source G
Land Acquisition
$100,000
Supplemental Withholding
$100,000
Site Preparation
260E Job Training Funds
In -kind Contribution
Building Acquisition
$59,792
Building Construction
$1,200,000
$1,200,000
Building Remodeling
Mfg. Machinery & Equip.
Other Machinery & Equip.
Racking, Shelving, etc.
Computer Hardware
$696,960
$696,960
Computer Software
Furniture & Fixtures
$294,833
$129,100
$165,733
Working Capital
$450,000
$450,000
Research & Development
Job Training
TOTAL
$2,741,793
$129,100
$
$
$1,312,693
$1,300,000
$
$
TAX CREDITS AND INDIRECT FINANCING
Source of Funds
Amount
Description
Investment Tax Credit
$29,792
$450,000 in Lease payments and
$294,800 in Furniture /Fixtures
Sales, Service & Use Tax Refund
$30,000
$600,000".05
Doubled Research Activities Credit
Supplemental Withholding
Local Property Tax Exemption
Tax Increment Financing
260E Job Training Funds
In -kind Contribution
Total
$59,792
Project Budget: Sedgwick CMS Bellevue
1 Racking, shelving and conveyor equipment used in distribution center projects only
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) and the length of the lease
agreement. $15 per square foot — 6000 square feet.
* Identify the collateral used to secure IDED funds: