Community Economic Betterment Account
IOWA
DEPARTMENT OF
ECONOMIC DEVELOPMENT
Tuesday, April 25, 2000
The Honorable Terry Duggan
Mayor, City of Dubuque
City Hall - 50 W. 13'h Street
Dubuque, Iowa 52001
RE: Community Economic Betterment Account (CEBA)
Contract #95-PRO-13: City of Dubuque/FDL Foods
Dear Mayor Duggan:
On April 20, 1995, the Iowa Department of Economic Development (IDED) awarded CEBA
funds to the Community in the amount of $60,000. Since the funds have not been
requested within 24 months of the award date and the Department has not been informed
of any extenuating circumstances justifying the delay, the Department will recapture the
outstanding CEBA funds for the above project.
We support the Community's economic development activities and understand not all
projects proceed as expected. If you have questions concerning this matter or need
technical assistance, please call me at 515-242-4810.
Sincerely,
91/~,
Kenneth H. Boyd
Program Manager
cc:
Carol Stuart, IDED-Accounting
File
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THOMAS J. VILSACK, GOVERNOR SALLY j, PEDERSON, LT, GOVERNOR
200 East Grand Avenue. Des Moines, Iowa 50309-1834 . 515.242.4700 . Fax: 515.242.4809
info@ided.state.ia.us . TrY: 1.800.735.2942 . www.state.ia.usJided
IOWA
DEI'ARIMENJ OF
ECONOMIC DEVElOPMENT
Wednesday, April 26, 2000
The Honorable Terry Duggan
Mayor, City of Dubuque
City Hall - 50 W. 13th Street
Dubuque, Iowa 52001
RE: Community Economic Betterment Account Program
Contract Number 96-PRO-1O: City of DubuquelFDL Acquisition, Inc.
Dear Mayor Duggan;
On March 31, 1999, the Project Completion Date for the above CEBA Contract expired. Unfortunately, the business
was unable to meet their job attainment goal as set out in the CEBA agreement. The Business pledged to create 1,254
FTE jobs in addition to retaining 400 FTE jobs for a total of 1,654 FTE jobs in the Community. Based on
employment information made available to the Department, we have concluded that the business was able to attain
1,545 ofthe pledged jobs by the Project Completion Date.
According to the CEBA loan agreement, the Business is obligated to pay an interest penalty on the shortfall amount.
The amount of this penalty is $39,600 and is due and payable within 30 days of the date of this letter. Attachment
I details the methodology used to determine the amount owed. If you have any questions regarding this matter,
please contact me at (515) 242-4810.
Sincerely,
Kenneth H. Boyd
CEBA Program Manager
Enc!.
Cc: Mark Baldwin, FDL Acquisition, Inc.
File
ATTACHMENT 1
SHORTFALL AMOUNT CALCULATION
1,654 jobs pledged - 1,545 jobs attained = 109 jobs short
109/1,654 = 6.6% percent of job shortfall
6.6% · $5,000,000 = $330,000 shortfall balance
INTEREST PENALTY:
The CEBA funds were disbursed to the Business on 6/28/96.
Interest penalty = shortfall balance x 6% x number of years from disbursement of funds to project completion date.
[$330,000 · 6% · 2 years ]= $39,600
Net interest penalty = $39,600
IOWA
DEPARTMENT OF
ECONOMIC DEVELOPMENT
Tuesday, April 25, 2000
The Honorable Terry Duggan
Mayor, City of Dubuque
City Hall - 50 W. 13th Street
Dubuque, Iowa 52001
RE: Community Economic Betterment Account (CEBA)
Contract #97-0PP-02: City of Dubuque/HBO and Company
Dear Mayor Duggan:
On June 19,1997, the Iowa Department of Economic Development (lDED) awarded CEBA
funds to the Community in the amount of $60,000. Since the funds have not been
requested within 24 months of the award date and the Department has not been informed
of any extenuating circumstances justifying the delay, the Department will recapture the
outstanding CEBA funds for the above project.
We support the Community's economic development activities and understand not all
projects proceed as expected. If you have questions concerning this matter or need
technical assistance, please call me at 515-242-4810.
Sincerely,
Q~R
Kenneth H. Boyd
Program Manager
cc:
Carol Stuart, IDED-Accounting
File
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THOMAS J. VILSACK. GOVERNOR SALLY J. PEDERSON. LT. GOVERNOR
200 East Grand Avenue. Des Moines, Iowa 50309-1834 . 515.242.4700 . Fax: 515.242.4809
info@ided.state.ia.us . TrY: 1.800.735.2942 . www.stare.ia.us/ided