Cottingham & Butler, Inc., Amendments to CEBA and EZ AgreementsMasterpiece on the Mississippi
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution of Support for Cottingham & Butler CEBA & EZ Amendments
DATE: November 14, 2011
Economic Development Director Dave Heiar recommends City Council approval of an
amendment to a CEBA and Enterprise Zone agreement with the Iowa Economic
Development Authority and Cottingham & Butler, Inc. This amendment will extend the
job certificate date from October 31, 2010 to December 31, 2012.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
havs4 4-1,145,v,
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
Masterpiece an the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director C?- ;t,4 -�
SUBJECT: Resolution of support for Cottingham & Butler CEBA & EZ Amendments
DATE: November 14, 2011
Dubuque
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INTRODUCTION
This resolution is to approve an amendment to a CEBA and Enterprise Zone agreement
with the Iowa Economic Development Authority and Cottingham & Butler, Inc.
BACKGROUND
On May 7, 2007, the City Council approved Agreement Number 07- CEBA -13 with the
Iowa Economic Development Authority and Cottingham & Butler to provide Community
Economic Betterment funds for the expansion of Cottingham & Butler's Dubuque
operations. The project also is receiving Enterprise Zone benefits from Agreement
number 07 -EZ -021.
The amendment is needed to extend the job certification date from October 31, 2010 to
December 31, 2012. Additional time was needed for Cottingham & Butler to achieve
their job creation requirements for the CEBA and EZ funds. The City Council previously
approved a similar time extension with Cottingham & Butler for our Development
Agreement incentives.
RECOMMENDATION
The recommendation is to approve the attached resolution to authorize the Mayor to
sign the Agreement Amendment.
ACTION STEP
The action step is for the City Council to adopt the attached resolution, which approves
the amendment to the CEBA and EZ agreements with Cottingham & Butler.
F: \USERS \Econ Dev \Cottingham & Butler \CEBA 2006\20111115_ Council Memo for amendment CEBA - EZ.doc
RESOLUTION NO. 382 -11
A RESOLUTION AUTHORIZING THE APPROVAL OF AN AMENDMENT
TO THE CEBA AND ENTERPRISE ZONE AGREEMENTS WITH
COTTINGHAM & BUTLER, INC.
Whereas, the Iowa Economic Development Authority's Community Economic
Betterment Account (CEBA) was designed to assist in the economic development
efforts of local jurisdictions; and
Whereas, The Iowa Economic Development Authority approved Agreement
Number 07- CEBA -13 with the City of Dubuque and Cottingham & Butler on May 7,
2007 for the expenditure of Community Economic Betterment funds; and
Whereas, The Iowa Economic Development Authority approved Agreement
Number 07 -EZ -021 with the City of Dubuque and Cottingham & Butler for the project to
receive Enterprise Zone funds; and
Whereas, Cottingham & Butler desire to amend the agreements and have
requested to extend the job certification date to December 31, 2012.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the amendment to extend the job certification date to December
31, 2012 for the Community Economic Betterment Account program and Enterprise
Zone program on behalf of Cottingham & Butler, Inc. is hereby approved.
Section 3. That the Mayor is hereby authorized to execute the amendment and the
City Manager is hereby directed to submit said amendment to the Iowa Economic
Development Authority together with such documents as may be required.
Passed, approved, and adopted this 21st day of November, 2011.
Roy D
Attest:
Key' . Firnstahl, City C erk
DLJ
, Mayor
F: \USERS \Econ Dev \Cottingham & Butler \CEBA 2006\20111114_ Amendment 1 reso 07- CEBA- 13.doc
CONTRACT AMENDMENT
BUSINESS:
MASTER CONTRACT #:
FUNDING AGREEMENT #s:
AMENDMENT #:
EFFECTIVE DATE:
Cottingham & Butler, Inc.
P0606M01054
07- CEBAIVFGF -013.& 07 -EZ -021
Three
October 20, 2011
THIS CONTRACT AMENDMENT is made by and between the IOWA ECONOMIC
DEVELOPMENT AUTHORITY, (hereafter "IEDA "), 200 East Grand Avenue, Des Moines, Iowa
50309, an agency of the State of Iowa and Cottingham & Butler, Inc. an Iowa S- corporation
( "Business "), 151 West 8t ", 300 Security Building, Dubuque, Iowa 52001.
WHEREAS, Business, by correspondence dated September 29, 2011 requested that the
Project Completion Date be extended to December 31, 2012.
WHEREAS, the IEDA BOARD approved the Business's request, effective as of the
Effective Date stated above, and
NOW, THEREFORE, the Contract referenced above is amended as follows:
1. REVISION OF EXHIBIT D, "JOB OBLIGATIONS." Exhibit D is amended to extend the
Project Completion Dates and Maintenance Dates for a 26 month period. Details of the
changes are reflected in the attached Revised Exhibit D which is hereby incorporated by
this reference and made a part of this Contract Amendment.
Except as otherwise revised above, the terms, provisions, and conditions of Contract
Number P0606M01054 remain unchanged and are in full force and effect:
FOR BUSINESS:
SIGNATURE
FOR IEDA:
SIGNATURE
f ,t, e
PRINT/TYPE NAME, TITLE Deborah V. Durham, Director
Roy D. Buol, Mayor
PRINT/TYPE NAME, TITLE
Fmt. Approved 7/08
EXHIBIT D — JOB OBLIGATIONS
Cottingham & Butler, Inc.
07 -CEBA -013 and 07 -EZ -021
This Project has been awarded benefits from the Community Economic Betterment Account (CEBA) and Enterprise Zone (EZ)
programs. The charts below outline the contractual job obligations related to this Project.
Data in the "Employment Base" column has been verified by the Department and reflects the employment characteristics of the
facility receiving funding before this award was made. Jobs to be retained as a part of this Project must be included in these
calculations.
Data in the "Jobs To Be Created" column outlines the new full -time jobs (including their wage characteristics) that must be added
to the employment base and, if applicable, statewide employment base as a result of this award.
At the Project Completion Date and through the Project Maintenance Date, the Business must achieve (at a minimum) the
numbers found in the "Total Job Obligations" column.
CEBA JOB OBLIGATIONS
Project Completion Date: October 31, 2010
Employment
Base
Jobs
To Be Created
Total
Job
Obligations
December 31, 2012
Project Maintenance Date: October 31, 2012
December 31, 2014
Total employment at project location
306
90
396
Average Wage of total employment at project location
$25.36
Qualifying wage threshold requirement (per hr)
$20.36
Benefit value (per hr)
$3.70
Number of jobs at or above qualifying wage
NA
NA
NA
Average Wage of jobs at or above qualifying wage
NA
Number of jobs at or above qualifying wage w /benefits
169
56
225
Average wage of jobs at or above qualifying wage
w /benefits
$35.80
_
EZ JOB OBLIGATIONS
Project Completion Date: October 31, 2010
Employment
Base
Jobs
To Be Created
Total
Job
Obligations
December 31, 2012
Project Maintenance Date: October 31, 2020
December 31, 2022
Total employment at project location
306
90
396
Average Wage of total employment at project location
$25.36
Qualifying wage (per hr)
$12.41
Benefit value (per hr)
NA
Number of jobs at or above qualifying wage
236
83
319
Average Wage of jobs at or above qualifying wage
$29.72
Number of jobs at or above qualifying wage w /benefits
NA
NA
NA
Average wage of jobs at or above qualifying wage
w /benefits
NA
Revised 8/07
Notes re: Qualifying Wages
1. If the Benefit Value was added to the base wage to meet program wage threshold eligibility
requirements, then any reduction in the Benefit Value during the life of the Contract must be
compensated for with salary to ensure that the Qualifying Wage rates are met.
2. Bonus or commission payments are not included when calculating the Qualifying Wage rate.
Revised 8/07