CEBA Assist Shepherd Inc. Department of
Economic Development
?owa
SMART IDEATM
October 27, 2003
The Honorable Terrance Duggan, Mayor
City of Dubuque
50W. 13~Street
Dubuque, Iowa 520014864
RE:
Community Economic Betterment Account (CEBA)
Application No. 04-CEBA-05: Shepherd Incorporated
Dear Mayor Duggan:
It is my pleasure to advise you that on October 16, 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 $75,000 2% seven-year loan, with payments deferred
for first year and a forgivable loan in an amount not to exceed $25,000. The forgivable loan is
subject to forgiveness at the 10th anniversary, if the jobs and business remain in Dubuque. 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.
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 Resources 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.
4. 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%) of the
new jobs created to qualified Promise Jobs program participants. Also, the
Thomas J. Vilsack, Governor Sally J. Pederson, Lieutenant Governor Michael-~ Blouin, Director
200 East Grand Avenue, Des Moines, Iowa 50309 Phone: 515.242.4700 Fax: 515.242.4809 wvcw.iowa~mar tid ea.co rn
business must provide to these agencies a list of positions to be created
including job descriptions and qualifications.
Documentation shall be submitted to the Iowa Department of Economic Development
indicating funding in the project from the following sources:
Source Type Amount
Shepherd Incorporated Equity $207,000
Community College Job Training $167,000
City of Dubuque TIF $150,000
The security/collateral required in this project is: Personal Guarantees and
Blanket UCC-I. CEBA funds will not be disbursed until Shepherd Inc. has repaid
the loans to the city of East Dubuque and the consortium of banks identified in
the application and has completed their relocation to Dubuque. Executed security
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.
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 39 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's
compensation, workplace safety and unemployment insurance. Your local Iowa Workforce
Development Office will be notified of your award and wil~ 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/ldr
Enclosure
CC:
Governor Vilsack/Lt. Governor Pederson
Dirk Voetberg, Shepherd Incorporated
Senator Mike Connolly
Representative Pat Murphy
Russ Trimble, Legislative Fiscal Bureau
Brian Tormey, Department of Natural Resources
Tony Dietsch, Iowa Workforce Development
SOURCES OF TECHNICAL ASSISTANCE
Energy Efficiency Design and Management
Department of Natural Resoumes
Energy and Geological Resources Division
Larry Bean, Administrator
900 East Grand
Des Moines, IA 50319
515/281-4308
Iowa State University Extension
Center for Industrial Reseamh and Service
ISU Research Park Suite 500
2501 North Loop Drive
Ames, IA 50010
515/294-3420
with regional offices in Cedar Rapids, Council Bluffs, Davenport, Des Moines, Storm Lake, and
Waterloo
Local utility company
Private energy management engineering and conservation consultants
Waste Reduction Design and Management
Department of Natural Resources
Waste Management Assistance Division
Scott Vander Hart, Pollution Prevention Manager
900 East Grand
Des Moines, IA 50319
515/281-6275
University of Northern Iowa
Iowa Waste Reduction Center
John Konefes, Director
1005 Technology Parkway
Cedar Fails, IA 50613
319/273-8905
Iowa State University Extension
Center for Industrial Research and Service
Lloyd Anderson, Interim Director
ISU Research Park Suite 500
2501 North Loop Drive
Ames, IA 50010
515/294-3420
with regional offices in Cedar Rapids, Council Bluffs, Davenport,
Des Moines, Storm Lake, and Waterloo
4. Private environmental engineering consultants.
CEBA
Name of Recipient:
Program Year:
City of Dubuque/Shepherd Inc.
04-CEBA-05
03/04
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 04
Building Remodeling Created 39 $100,000 $97,000 $197,000
.R.e_t__a!_n_~ ................. 9. .....
TOTAL 43
. .A.c.t! .v!ty..2.:. ........................................... Created/retained positions
Machinery and Equipment must have a starting wage $60,00(~ $60,000
of at least $10.41/hr. and
an average wage of at least
$14.01/hr.
59.~y!ty..3.:. ...........................................
Furniture and Fixtures $5,000 $5,000
~.c. tj¥!ty..4.:. ...........................................
Working Capital $15,000 $167,000 $182,000
(CC)
.a.c.t!¥!ty..% ...........................................
Relocation $30,000 $30,000
.A.c.t! .v!ty..6. :. ...........................................
lax Increment $150,000 $150,000
TOTAL AMOUNT OF ALL FUNDS BUDGETED $100,000 $'150,000 $207,000 $'167,000 $624,000
ATTACHMENT B
CEBA
Name of Recipient: City of Dubuque/Shepherd Incorporated
04-CEBA-05
IOWA CEBA RECIPIENT PROGRAM SCHEDULE
2003
PROJECT ACTIVITY: Loan to the City of Dubuque 1s` Qtr. 2"a Qtr. 3m Qtr. 4TM Qtr.
for Shepherd Incorporated
O N D J F M A M J J A S
Milestones: // I // II // II/
1. Building Remodeling
2. Machinery and Equipment
3. Furniture and Fixtures
4. Working Capital
5. Relocation
6. Tax Increment
7.
2004
PROJECT ACTIVITY: Loan to the City of Dubuque 5~ Qtr. 6th Qtr. 7th Qtr. 8th Qtr.
for Shepherd Incorporated
O N D J F M A M J J A S
Milestones: / I/ I ///I / ///
1. Building Remodeling
2. Machinery and Equipment
3. Furniture and Fixtures
4. Working Capital
5. Relocation
6. Tax Increment
7.
ATTACHMENT B
CEBA
Name of Recipient: City of Dubuque/Shepherd Incorporated
04-CEBA-05
IOWA CEBA RECIPIENT PROGRAM SCHEDULE
2005
PROJECT ACTIVITY: Loan to the City of Dubuque 9th Qtr. 10th Qtr. 11th Qtr. 12TM Qtr.
for Shepherd Incorporated
O N D JF M A M J J A S
Milestones: // I / /1/I I // /
1. Building Remodeling
2. Machinery and Equipment
3. Furniture and Fixtures
4. Working Capital
5. Relocation
6. Tax Increment
7.