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Eagle Point Software_Community Economic Betterment Account (CEBA)Masterpiece on the Mississippi Dubuque hittil All- Amedca city 1 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: State of Iowa Financial Assistance Application for Eagle Point Software DATE: December 2, 2010 Economic Development Director Dave Heiar is recommending City Council approval fto submit a Community Economic Betterment Account Program Financial Assistance Application to the Iowa Department of Economic Development on behalf of Eagle Point Software Corporation. Eagle Point Software Corporation has been in business since 1983. They are a software development company that is headquartered in Dubuque, Iowa. In addition to their software products, they also provide implementation and support services to world- wide customers. The CEBA program application on behalf of the company will provide financial assistance to enable the company's proposed development in Dubuque. As required by the CEBA program, the application requires a commitment of City funds to the project. This expansion project involves the Company moving their headquarters to 40 Main Street to facilitate the retention of 37 employees and the creation 15 new positions. The total starting annual payroll for the new positions is $750,172, representing an average wage of $50,011 per year. To assist this project, Eagle Point Software has requested the City of Dubuque assist with an application for State of Iowa assistance. The project involves the company relocating to 40 Main Street. City assistance as public match for the application is required, and is estimated at $200,000, which is one -third of the TIF grant to the 40 Main redevelopment project, which will be used by the landlord for buildout expenses. This amount was approved in the 40 Main redevelopment project and is sufficient local match for the entire application. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director / Michael C. Van Milligen Y"1 CJ-10 Masterpiece on the Mississippi Dubuque hitill AII- Ameicaaty 1 2007 TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director SUBJECT: State of Iowa Financial Assistance Application for Eagle Point Software. DATE: December 1, 2010 INTRODUCTION This memorandum presents for City Council review and approval of a resolution authorizing the submission of a Community Economic Betterment Account (CEBA) Program Financial Assistance application to the Iowa Department of Economic Development on behalf of Eagle Point Software Corporation. The application is attached. BACKGROUND Eagle Point Software Corporation has been in business since 1983. They are a software development company that is headquartered in Dubuque, Iowa. In addition to their software products, they also provide implementation and support services to world- wide customers. The CEBA program application on behalf of the company will provide financial assistance to enable the company's proposed development in Dubuque. As required by the CEBA program, the application requires a commitment of City funds to the project. DISCUSSION This expansion project involves the Company moving their headquarters to 40 Main Street to facilitate the retention of 37 employees and the creation 15 new positions. The total starting annual payroll for the new positions is $750,172, representing an average wage of $50,011 per year. To assist this project, Eagle Point Software has requested the City of Dubuque assist with an application for State of Iowa assistance. The project involves the company relocating to 40 Main Street. City assistance as public match for the application is required, and is estimated at $200,000, which is one -third of the TIF grant to the 40 Main redevelopment project, which will be used by the landlord for buildout expenses. This amount was approved in the 40 Main redevelopment project and is sufficient local match for the entire application. The Company will also be applying for Enterprise Zone Benefits for the project. The Company is requesting a 10% investment tax credit on their lease payments for three years, and a sales tax rebate on buildout materials and equipment purchases. The Enterprise Zone Commission is scheduled to review the application. Should the State approve the Enterprise Zone Application, a contract will be forthcoming for City Council approval. RECOMMENDATION I recommend that the City Council authorize the submission of an application for state assistance on behalf of Eagle Point Software with a commitment of local matching funds, which was already approved through the 40 Main redevelopment project. This 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 \Eagle Point Software\CEBA\20101201 Eagle Point IDED application memo.doc RESOLUTION NO. 462 -10 A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR STATE FINANCIAL ASSISTANCE ON BEHALF OF EAGLE POINT SOFTWARE. Whereas, Eagle Point Software Corporation has proposed the relocation and expansion of its operations in Dubuque, 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 15 total jobs; and Whereas, the Iowa Department of Economic Development's Community Economic Betterment Account (CEBA) 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 CEBA 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 CEBA Program on behalf of Eagle Point Software is hereby approved. Section 2. That the local match identified in the application estimated at $200,000 consisting of TIF funding to the Landlord for buildout of the space was approved in the Development Agreement to redevelop the property at 40 Main Street. 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. Passed, approved, and adopted this 6 day of Decer (ber, 2010. Jeanne Schneider, City Clerk F: \USERS \Econ Dev \Eagle Point Software \CEBA\20101206 Resolution Eagle Point Software app approval.doc Roy D. Buol, Mayor Business Finance Business Development Division Iowa Department of Economic Development 200 East Grand Avenue Des Moines, Iowa 50309 www.iowalifechanging.com Telephone: 515.725.3133 Businessfinance @iowa.gov Bret L. Mills, Director Iowa Department of Economic Development Business Financial Assistance Application Components Program Complete Enterprise Zone Program (EZ) Section C Entrepreneurial Component Section E Value -Added Agricultural Component Section F Economic Development Set Zone Program (EDSA) Section G NOTICE TO APPLICANTS — OPEN RECORDS 1. Disposition of Applications. All applications become the property of the State and shall not be returned to the applicant. Once the Iowa Economic Development Board (IDED) acts on the application, the contents of all applications will be in the public domain and be available for inspection by interested parties, except for information for which the applicant properly requests confidential treatment or according to exceptions provided in Iowa Code sections 22.7(2009) and 15.118(2009), or other applicable law. 2. Public Records and Requests for Confidential Treatment. Prior to the Iowa Economic Development Board (Board) acting an any application received, the IDED will afford all information contained in the application as confidential, pursuant to its authority in Iowa Code section 15.118(2009). After the Board acts on an application, the IDED will treat all information submitted by an applicant as a public record, viewable by the public unless the applicant properly requests at submission that specific parts of the application be treated as confidential and the IDED grants that request. The IDED's release of public records is governed by Iowa Code chapter 22(2009), Iowa Code section 15.118(2009) and 261 Iowa Administrative Code chapter 195. Applicants are encouraged to familiarize themselves with these laws before submitting an application. The IDED will copy and produce public records as required to comply with Iowa Code Chapter 22 or other applicable law and according to the limitation imposed therein. Any request for confidential treatment of specific information submitted in the application must be included with the application. In addition, the applicant must enumerate the specific grounds in Iowa Code sections 22.7 (2009) or 15.118(2009) or other applicable law which support treatment of the material as confidential and explain why disclosure is not in the best interest of the public. The request for confidential treatment of information must also include the name, address, and telephone number of the person authorized by the applicant to respond to any inquiries by the IDED concerning the confidential status of the materials. Any application submitted which contains information for which applicant is requesting confidential treatment must be conspicuously marked by the applicant on the application as containing confidential information, and each page upon which confidential information appears must be conspicuously marked as containing confidential information. Failure to properly identify specific information as confidential shall relieve IDED or State personnel from any responsibility if confidential information is viewed by the public or a competitor, or is in any way released. An applicant may not identify its entire application as confidential, even though the entire application will be afforded confidential treatment prior to Board action. Marking a portion of the application as confidential does not automatically confer confidential treatment of the document. In considering requests for confidential treatment, the IDED will narrowly construe the provisions of the law to balance the applicant's need for confidentiality against the public's interest in the information and the IDED's activities related thereto. Factors to be used in this balancing test are described in Iowa Code section 15.118(2009). If the IDED does not grant a request for confidential treatment, the applicant may withdraw the application and any supporting materials; in such an event, the IDED shall not retain any copies of the application or supporting information and such records shall not be subject to public inspection pursuant to Iowa Code chapter 22. If the applicant designates any portion of its application as confidential, the applicant must submit a copy labeled as "Public Copy" from which the confidential information has been excised. The confidential material must be excised in such a way as to allow the public to determine the general nature of the material removed and to allow as much of the application to remain intact as possible. The applicant's failure to request confidential treatment of material submitted as part of the application will be deemed a waiver of any right to confidentiality the applicant may have had. If IDED receives a request for information that specifically includes information the IDED has agreed is subject to confidential treatment under the law, the IDED shall not release the confidential information but shall release, instead, an explanation of why the information was deemed confidential, a summary of the nature of the information withheld, and the reason for withholding it. Notwithstanding anything to the contrary in this section, the IDED will release applications and supporting documents within its possession pursuant to the order of a court of competent jurisdiction at any time in the application process. 3. Copyright Permission. By submitting an application, the applicant agrees that the IDED may copy the application for purposes of facilitating the evaluation of the application or to respond to requests for public records. By submitting an application, the applicant consents to such copying and warrants that such copying will not violate the rights of any third party. 4. Release of Claims. By submitting an application, the applicant agrees that it will not bring any claim or cause of action against the IDED based on any misunderstanding concerning the information provided in the application or concerning the IDED's failure, negligent or otherwise, to provide the applicant with pertinent information in this application. X I have reviewed the Notice to Applicants — Open Records section above, including the list of records already considered confidential. I understand that upon filing this application becomes an open record available for public inspection. Applicant's request to treat information as confidential X No request. The Business has not identified any additional information that it believes meets the legal requirements for confidentiality Yes, there is information in this application for which the business is requesting confidential treatment Company Information 1. Name: Eagle Point Software Corporation Address: 4131 Westmark Drive Address 2: City: Dubuque State /Province /Territory: Iowa Mail Code: 52002 Country: United States Contact Person: Name: Lori Kilburg Title: Vice President Address: 4131 Westmark Drive Address 2: City: Dubuque State /Province /Territory: Iowa Mail Code: 52002 Country: United States Phone: (563) 556 -8392 Fax: Email: 2. Code Title Type Name Industry Cluster 511210 Information Publishing Industries (except Internet) Software Publishers Information Solutions Federal ID Number Please enter a 9 -digit Federal ID with no dashes: Does the Business file a consolidated tax return under a different tax ID number? US DOT Number: Is the contact person listed above authorized to obligate the Business? Was it prepared by the contact person listed above? Please provide a brief description of the company's primary product: Business Structure: Corporation State of Incorporation: Delaware 7. Business Ownership Identify the Business owners and the percentage of their ownership. See attachment 421204819 8. Identify the Business's Competitors No Does a woman, minority, or person with a disability own the business? Yes 3. 4. 5. 6. Company Information Please provide a brief company overview: Eagle Point Software Corporation has been in business since 1983. We are a software development company that is headquartered in Dubuque, Iowa. In addition to our software products, we also provide implementation and support services to our world -wide customers. Our software products and services are developed for and sold to the Architecture/Engineering /Construction (AEC) market. We sell direct throughout the United States and Canada from our Iowa -based headquarters, whereas our competitors have office locations within their selling territories. If the legal name for the contracting party is different than the Applicant Company please attach documents showing the business's structure and the relationship between its legal entities (e.g., wholly owned subsidiaries, divisions, holding companies, affiliates.) Documents Uploaded Company Ownership.pdf No 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 propose project may have on the Iowa competitor Our main competitors are located throughout North America (outside of Iowa) with people located in close proximity to their customers. 9. 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 Business Release We need to relocate our corporate headquarters in order to take advantage of growth opportunities within our market. Highly specialized employees with experience in our market are key to our ability to create new products, grow sales and deliver the high - quality service demanded by our customers. It is difficult to attract these types of individuals to Iowa when competing for employees with companies in places like Manchester, NH or San Rafael, CA. These locations are hotbeds for technology companies who are able to provide creative work environments because of the renovated historic buildings in which they work. The historic nature, architectural character, and visible location of the building at 40 Main Street in Dubuque will help level the playing field when recruiting employees. Additionally, our credibility will be improved by exhibiting forward- looking practices (renovation, sustainability, green, etc.) when hundreds of customers from around the country visit each year. With funding assistance, we will begin hiring in early 2011 in anticipation of moving to the new headquarters in June. No Documents Uploaded 1. Sponsor Information Name Title Type Organization Address Phone Email Certification & Authorization to Release Information - Business On behalf of the Business identified below and in connection with this application for financial assistance, I hereby represent that I have the authority to act on behalf of the Business and represent that all necessary actions of its governing body in connection with this application have been taken. I do hereby authorize the Iowa Department of Economic Development (IDED) to research the Business' history conduct credit checks that include information regarding credit worthiness, credit standing, character, general reputation, credit capacity, contact the Business' financial institutions, insurance carriers, procure a consumer report and/or investigative consumer report and perform other related activities necessary for reasonable evaluation of this application. These activities may include, but are not limited to, securing reports such as credit reports, criminal records checks, civil records, any court records, insurance records and any other records necessary in connection with this application. I authorize all persons, public or private companies, law enforcement agencies, government entities to release such information without restriction or qualification to IDED, and I release them from any liability as a result of such inquiries and disclosures. 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 have read the Notice to Applicants — Public Records section of this application and understand that the contents of this application (other than those confidential sections specifically identified in the Notice to Applicants — Public Records section or other confidential information approved in writing by IDED) is a public record and subject to public inspection and copying. I understand this application is subject to final approval by IDED and the Project may not be initiated until final approval is secured. (High Quality Job Creation Program applications may be submitted up to 12 months following the completion of the project.) The Iowa Code requires applicants to include in this application a statement regarding the intended return on investment, and recipients will be required to submit annually a statement on progress achieved. I understand that our required initial statement consists of the following items which we are supplying in the application: number of jobs to be created or retained, average wage of the created or retained jobs, industry code, capital investment to be made, projection of business taxes to be paid as a result of this project, plus any narrative responses in this application regarding the expected benefits or other effects on the state and local governments. I further understand that our annual progress statements will consist of reporting number of jobs actually created or retained, average wage of the created or retained jobs, capital investment made to date, and any related narrative explanations. 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, under penalty of perjury, 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 (see Iowa Code § 15A.3) 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. I understand that 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. I HAVE READ AND AGREE TO THE ABOVE: X I CERTIFY THAT I HAVE TYPED MY NAME IN THE BOX BELOW, WHICH WILL ACT AS MY ELECTRONIC SIGNATURE, AND BY DOING SO I CERTIFY UNDER PENALTY OF PERJURY THAT I HAVE THE AUTHORITY TO SUBMIT THIS INFORMATION AND THAT ALL OF THE ABOVE AND PRECEEDING STATEMENTS AND ATTACHMENTS ARE TRUE, CORRECT AND ACCURATE. Submitted By: John F. Biver Submission Date: 11/30/2010 Signature: Sponsor Release Certification & Authorization to Release Information — Sponsor (City / County / EZ Commission) On behalf of the Sponsor identified below and in connection with this application for financial assistance, I hereby represent that I have the authority to act on behalf of the Sponsor, and represent that all necessary actions of its governing body in connection with this application have been taken in support of Business's Project. 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 have read the Notice to Applicants — Public Records section of this application and understand that the contents of this application (other than those confidential sections specifically identified in the Notice to Applicants — Public Records section or other confidential information approved in writing by IDED) is a public record and subject to public inspection and copying. I understand this application is subject to final approval by IDED and the Project may not be initiated until final approval is secured. (High Quality Job Creation Program applications may be submitted up to 12 months following the completion of the project.) 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, under penalty of perjury, 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 (see Iowa Code § 15A.3) 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. I understand that 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. I HAVE READ AND AGREE TO THE ABOVE: Not selected Individual Release Certification & Authorization to Release Information — Individual with Significant (15% or more) Ownership Interest In connection with this application for financial assistance, I do hereby authorize the Iowa Department of Economic Development (IDED) to conduct credit checks which may include information regarding my credit worthiness, credit standing, character, general reputation, credit capacity, contact my financial institutions, insurance carriers, procure a consumer report and /or investigative consumer report and perform other related activities necessary for reasonable evaluation of this application. These activities may include, but are not limited to, securing reports such as credit reports, criminal records checks, civil records, any court records, insurance records and any other records necessary in connection with this application. I authorize all persons, public or private companies, law enforcement agencies, government entities to release such information without restriction or qualification to IDED, and I release them from any liability as a result of such inquiries and disclosures. I also hereby authorize the Iowa Department of Revenue to provide to IDED state tax information pertinent to my tax information. I hereby certify, under penalty of perjury, that all representations, warranties, or statements I have 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 (see Iowa Code § 15A.3) 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. I HAVE READ AND AGREE TO THE ABOVE: X For the Individual I CERTIFY THAT I HAVE TYPED MY NAME IN THE BOX BELOW, WHICH WILL ACT AS MY ELECTRONIC SIGNATURE, AND BY DOING SO I CERTIFY UNDER PENALTY OF PERJURY THAT I HAVE THE AUTHORITY TO SUBMIT THIS INFORMATION AND THAT ALL OF THE ABOVE AND PRECEEDING STATEMENTS AND ATTACHMENTS ARE TRUE, CORRECT AND ACCURATE. Submitted By: John F. Biver Submission Date: 11/30/2010 Signature: 1. Project Location Address: 40 Main Street Address 2: City: Dubuque County: Dubuque State: Iowa Mail Code: 52001 2. Type of Business Project Project Information State /Province Country Description New Hampshire United States We are just beginning our investigation with the State of New Hampshire now. Califomia United States We are just beginning our investigation with the State of California now. Iowa Company - Expansion 3. Please identify the management at the project location and his /her /their experience No Documents Uploaded 4. Has any part of the project started? 5. Does the Project involve newly constructed buildings and structures? 6. Is the Business actively considering locations outside of Iowa? - Financing Gap No No Yes 7. There are three general justifiable reasons for assistance. Select 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 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. Locational Disadvantage The Business is deciding between a site A in Iowa and a site B in another state for its (Incentive) 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. What measures were analyzed to determine the amount and form of assistance needed? We are not currently in a position to bear the upfront costs of growing our employment base. However, after two years, when the new employees are ramped to full productivity we will be poised for additional growth. Without assistance we will be forced to remain stagnant. As we said above, it is difficult to attract the employees we need to Iowa. The building that we would like to move into has great potential. Once properly equipped, it will be conducive to attracting the entrepreneurial people that we need. Again, we need assistance with the upfront costs. Here's how we arrived at the requested amount: - $7K each for 15 jobs ($105,000) will help pay for computer hardware, computer software, furniture, fixtures and training Enterprise Zone Benefits: - 5% Sales tax rebate ($7,750) helps to cover the costs of those items on which the sales tax is paid (computer hardware, software, furniture and fixture) - 10% of $1,780,000 ($178,000) 10 -year rent payments will help pay to properly equip and maintain the building 8. What is the total amount of state assistance that is being requested based on the above - identified need? $153,300.00 AMOUNT BUDGETED Use of Funds Cost IDED Other State(Comm College, DOT, etc) Local Government Business Other Private Sources Other Land Acquisition $35,000.00 $35,000.00 Local Optin Sales Tax Site Preparation Building Acquisition Building Construction Local Business Taxes Year 1 Year 2 Year 3 Year 4 Year 5 Local Real Estate Property Tax $35,000.00 $35,000.00 $35,000.00 $35,000.00 $35,000.00 Local Optin Sales Tax State Business Taxes Year 1 Year 2 Year 3 Year 4 Year 5 State Corporate Income Tax* State Business Sales and Use Tax Business Tax Information IDED is required to calculate the return on state and local govemment 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. Instructions 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. The tax information provided in response to this question is treated as confidential and not subject to public disclosure -- Confidential Tax Information Increase in Tax Collections Associated with this Project * Insurance Companies: Provide State Insurance Premium Tax. Project Budget Building Remodeling Source Of Funds Amount Forms of Funds(Loan, Grant, In -Kind Donation, etc) Rate Term(Months) Commitme nt Status Conditions / Additional Information Mfg. Machinery & Equip. $153,300.00 Grant 0 Other State(Comm College, DOT, etc) Other Machinery & Equip. Local Government $200,000.00 Racking, Shelving, etc 0 Committed Tax Increment Financing offered to the project to reduce the lease payment of the company. Business $514,700.00 Other Computer Hardware $47,500.00 $22,500.00 We will finance our part through operational cash flow. $25,000.00 Computer Software $47,500.00 $22,500.00 $25,000.00 Furniture & Fixtures $60,000.00 $45,000.00 $15,000.00 Working Capital Research & Development. Job Training $30,000.00 $15,000.00 $15,000.00 Capital lease $683,000.00 $48,300.00 $200,000.00 $434,700.00 Total $868,000.00 $153,300.00 $200,000.00 $514,700.00 PROPOSED FINANCING Source Of Funds Amount Forms of Funds(Loan, Grant, In -Kind Donation, etc) Rate Term(Months) Commitme nt Status Conditions / Additional Information IDED $153,300.00 Grant 0 Other State(Comm College, DOT, etc) Local Government $200,000.00 Grant 0 Committed Tax Increment Financing offered to the project to reduce the lease payment of the company. Business $514,700.00 Other 0 We will finance our part through operational cash flow. 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(Include deductibles, coinsurance %, office visit co- payments, annual out -of- pocket maximums,face amounts, etc.) Employee Family Employee Family Medical/Health Insurance $3,093.48 $6,695.88 $80.00 $50.00 $15 copay for office visits, 80 %/20% Co- insurance, $2500 single /$7000 family Calendar year maximums, $15 co -pay routine eye exams, $100 co -pay for emergency room, preventative services are paid in full Dental Insurance Vision Insurance Life Insurance rate varies based on age & election Short Term Disablilty (STD) rate varies based on income Long Term Disablility (LTD) rate varies based on income Other Private Source Other Identify the collateral used to secure IDED funds: - Any computer equipment, software, furniture and fixtures that we purchase for the new building and additional people - Personal guarantee from John F. Biver Does the Business plan to lease the facility? Annual Base Rent Payment: Length of the lease agreement: Employee Benefits Please identify all employee benefits provided by and paid for (in full or in part) by the Business. Yes $161,000.00 60 months Does the Business... Offer a pension plan, 401k plan, and /or retirement plan? Year ending Average Actual Match per Employee ( %) 2010: 0 2009: 1 Yes Job Number of Jobs Retained / Created Wage Professionals 3 Created $24.21 Professionals 1 Created $30.74 Sales Office or Clerical 11 Created $23.39 2008: 1 Three -year .67 average: Offer a profit- sharing plan? List the jobs that will be retained and/or created as the result of this project 1. Project Jobs Summary Total Number of Retained Jobs: Total Number of Created Jobs: Total Jobs: Amount: Corporation (include address): From (include address): Project Jobs 0 15 15 No 2. Will any of the current Iowa employees lose their jobs if this project does not proceed in Iowa? No Irrevocable Letter of Credit Corporate Guarantee Details Personal Guarantee Details Mortgage Information 1st position Estimated value: 2nd position Estimated value: 2nd position lien, subordinate only to senior lender Estimated value: Description: Property Description (address): Other collateral Other collateral negotiated (certificate of deposit assignment agreement) Estimated Value: Debt Subordination Will IDED's financial assistance award be subordinate to any other lender? Amount: Amount: No Certification & Authorization to Release Information - Individual Guarantor As a proposed guarantor of this financial assistance application, I do hereby authorize the Iowa Department of Economic Development (IDED) to conduct credit checks which may include information regarding my credit worthiness, credit standing, character, general reputation, credit capacity, contact my financial institutions, insurance carriers, procure a consumer report and/or investigative consumer report and perform other related activities necessary for reasonable evaluation of this application. These activities may include, but are not limited to, securing reports such as credit reports, criminal records checks, civil records, any court records, insurance records and any other records necessary in connection with this application. I authorize all persons, public or private companies, law enforcement agencies, govemment entities to release such information without restriction or qualification to IDED, and I release them from any liability as a result of such inquiries and disclosures. I also hereby authorize the Iowa Department of Revenue to provide to IDED state tax information pertinent to my tax information. I hereby certify, under penalty of perjury, that all representations, warranties, or statements I have 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 (see Iowa Code § 15A.3) 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 Corporation (proposed guarantor): Name and Title 12/1/2010 Enterprise Zone Program (EZ) Total Amount Requested: 1. Enterprise Zone Name: Dubuque Enterprise Zone 1 2. Enterprise Zone Number: 1 3. Size in Acres: 1,774 4. Date Certified: 11/15/2007 5. Please list any additional requirements adopted by the local Enterprise Zone Commission and how the Business will meet each requirement. None as of 11/30/2010 Attachments Please attach the following documents Al Business Plan - marketing study - feasibility study - projected profit and loss statements for three years into the future - project budget - production operations - management structure - marketing study - personnel needs - descriptions of product or process - status of product/process development - patent status (if applicable) No Documents upload o 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) No Documents Uploaded A3 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 No Documents Uploaded A4 Financial Information (Existing Businesses Only) Profit and loss statements and balance sheets for past three year -ends - Current YTD profit and loss statement and balance sheet - Schedule of aged accounts receivable - Schedule of aged accounts payable - Schedule of other debts No Documents Uploaded A5 Business Structure Chart A6 Security Worksheet A7 Confidentiality Request A8 Confidential Documents, if any No Documents Uploaded I CERTIFY THAT I HAVE TYPED MY NAME IN THE BOX BELOW, WHICH WILL ACT AS MY ELECTRONIC SIGNATURE, AND BY DOING SO I CERTIFY UNDER PENALTY OF PERJURY THAT I HAVE THE AUTHORITY TO SUBMIT THIS INFORMATION AND THAT ALL OF THE ABOVE AND PRECEEDING STATEMENTS AND ATTACHMENTS ARE TRUE, CORRECT AND ACCURATE. Not Submitted