UDAG Loan for Medline
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MEMORANDUM
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April 26, 2004
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TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
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SUBJECT: UDAG Loan for Medline
Medline is a relatively new local company and is America's largest privately-held
national manufacturer and distributor of health care supplies and services. The
company employs 103 persons in Dubuque and will expand its local operations at
facilities in the Dubuque Corporate Center. As part of this project, the company has
committed to hiring 41 new full-time equivalent (FTE) employees within the next three
years.
Medline is applying directly to the Iowa Department of Economic Development (IDED)
for an Iowa Values Fund forgivable loan in the amount of $179,000. The City is not
required to approve that application, but is required to provide a local financial
commitment to the project. The City's financial contribution to the project will be a
$62,000 UDAG loan. The proceeds of the State and local funding will be used by the
company for working capital to help finance the estimated $2.6 million expansion
project.
The UDAG loan will be offered to the company at 0% for 5 years subject to job creation
and retention requirements. A corporate guaranty will be required as security. The City
currently has sufficient UDAG funds budgeted and available for job creation economic
development projects to make this loan to Medline.
Economic Development Director Bill Baum is recommending City Council approval of a
$62,000 UDAG Loan Agreement to help support Medline's expansion project in
Dubuque.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Micha'el C. Van Milligen
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
April 26, 2004
TO:
Michael Van Milligen, City Manager
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FROM:
William Baum, Economic Development Director
SUBJECT: UDAG Loan for Medline
INTRODUCTION
This memorandum presents for City Council review and approval a Resolution relating to
approval of a UDAG Loan of $62,000 to Medline as the City's match for the company's
application to the Iowa Department of Economic Development (IDED) for an Iowa Values Fund
forgivable loan.
BACKGROUND
Medline, a relatively new local company, is America's largest privately-held national manufacturer
and distributor of health care supplies and services. Medline manufactures and distributes more
than 100,000 medical products, encompassing medical-surgical items and one of the largest
textile lines in the industry. The company employs 103 persons in Dubuque and will expand its
local operations at facilities in the Dubuque Corporate Center. As part of this project, the
company has committed to hiring 41 new full-time equivalent (FTE) employees within the next
three (3) years. Wages will generally range from $35-40,000 per year.
DISCUSSION
The company is applying directly to the IDED for a $179,000 Iowa Values Fund forgivable loan.
The City is not required to approve that application but is required to provide a local financial
commitment to the project. The City's financial contribution to the project will be a $62,000
UDAG loan. The proceeds of the State and local funding will be used by the company for
working capital to help finance the estimated $2.6 million expansion project.
The UDAG loan will be offered to the company at 0% for 5 years subject to job creation and
retention requirements. A corporate guaranty will be required as security. The City currently has
sufficient UDAG funds budgeted and available for job creation economic development projects to
make this loan to Medline.
RECOMMENDATION
I recommend that the City Council adopt the attached Resolution authorizing the City Manager to
negotiate and execute a UDAG Loan Agreement of $62,000 to support Medline's expansion
project in Dubuque.
ACTION STEP
The Action Step for the City Council is to adopt the attached Resolution.
attachment
F:\USERS\ WBaum \Medline\U DAG .MEM.doc
RESOLUTION NO. 198-04
A RESOLUTION APPROVING A UDAG LOAN OF SIXTY-TWO THOUSAND
DOLLARS ($62,000) TO MEDLINE.
Whereas, the City of Dubuque, Iowa has created an economic development loan
program to assist local job creation efforts and provide matching funds for State
financial assistance programs; and
Whereas, the City desires to assist Medline in its efforts to expand its operations
in Dubuque and create new, permanent employment opportunities for local citizens;
and
Whereas, a UDAG Loan for Sixty-Two Thousand Dollars ($62,000) has been
requested by Medline to match its application for an Iowa Values Fund forgivable loan
for the Iowa Department of Economic Development.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the Mayor and City Council of the City of Dubuque, Iowa,
approve the $62,000 UDAG Loan to Medline.
Section 2. That the City Manager be and he is hereby authorized to negotiate
and execute a UDAG Loan Agreement with Medline.
Passed, approved and adopted this 3rd day of May, 2004.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
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