Cottingham & Butler CEBA Application
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RESOLUTION NO.~- 99
A RESOLUTION AUTHORIZING THE FILING OF A COMMUNITY
ECONOMIC BETTERMENT ACCOUNT (CEBA) APPLICATION ON
BEHALF OF COTTINGHAM & BUTLER.
Whereas,COTTINGHAM & BUTLER, a local insurance services company, has proposed
the expansion of its existing operations in downtown Dubuque; 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
jobs for area residents; and
Whereas, the Iowa Department of Economic Development's Community Economic
Betterment Account (CEBA) 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 Community
Economic Betterment Account 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 Iowa Community
Economic Betterment Account program on behalf of Cottingham & Butler is approved.
Section 2. That the local match as identified in the application is hereby approved.
Section 3. That the Mayor is hereby authorized and directed to execute and submit said
application to the State of Iowa Economic Development Commission together with such documents
as may be required.
Passed, approved, and adopted this 1st day Of~99.
Attest:
February 26, 1999
F:\USERS\PAMMG\WPDOCS\LOANDOC\SECURITY\CEBAAPP.RES
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CITY OF DUBUQUE, IOWA
MEMORANDUM
February 26, 1999
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Cottingham and Butler - Community Economic Betterment Account
(CEBA) Application
Community and Economic Development Director Jim Burke is recommending submission
of a Community Economic Betterment Account (CEBA) Program application to the Iowa
Department of Economic Development (IDEO) on behalf of Cottingham and Butler.
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Cottingham and Butler, a local insurance services company, has announced an expansion
project involving the renovation of lower level space in the Security Building which was
recently made available by the relocation of Dubuque Data Services to their new facility
on John F. Kennedy Road. The company has decided to expand in its existing office
building which will then be fully occupied. The project is estimated to cost $1 + milliion.
The company is seeking no other public assistance for this project.
Over the next two years, Cottingham and Butler will employ 30 new employees meeting
the CEBA threshold average wage of $9.57 per hour or above. To help fund this
expansion project, Cottingham and Butler has requested a partially forgivable CEBA loan
of $90,000 which represents $3,000 per new job created.
CEBA requires local financial participation in the project. The City will benefit the
company through the planned capital improvements associated with reopening 8th
Street and renovating the Town Clock Plaza.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mi
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MCVM/j
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Jim Burke, Community and Economic Development Director
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CITY OF DUBUQUE, IOWA
MEMORANDUM
February 25, 1999
SUBJECT:
Mtehael v~... Milligen, City Manager
~/fi.' /l--
eFes Burl e, Community & Economic Development Director
COTTINGHAM & BUTLER
Community Economic Betterment Account (CEBA) Application
TO:
FROM:
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing the
submission of a Community Economic Betterment Account (CEBA) program application to the Iowa
Department of Economic Development on behalf of Cottingham & Butler.
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BACKGROUND
Cottingham & Butler, a local insurance services company, has announced an expansion project
involving the renovation of lower level space in the Security Building which was recently made
available by the relocation of Dubuque Data Services to their new facility on JFK Road. The
company has decided to expand in its existing office building which will then be fully occupied. The
project is estimated to cost $1 + million. The company is seeking no other public assistance for this
project.
DISCUSSION
Over the next two years, Cottingham & Butler will employ 30 new employees meeting the CEBA
threshold average starting wage of$9.57 per hour. To help fund this expansion project, Cottingham
& Butler has requested a partially forgivable CEBA loan of $90,000 which represents $3000 per new
job created.
CEBA requires local financial participation in the project. The City will benefit the company through
the planned capital improvements associated with reopening 8th Street and redesigning the Main
Street pedestrian. The estimated direct value of the street and streetscape improvements to the
Security Building is $202,000. The City has previously provided a $300,000 low-interest Downtown
Rehabilitation Loan to the property for window replacement and interior modifications.
RECOMMENDATION
. I recommend that the City Council authorize the submission of a CEBA application for a $90,000
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partially forgivable loan on behalf of Cottingham & Butler with the City's commitment of local
matching funds being the direct costs associated with the planned physical improvements to 8th and
Main Streets abutting the Security Building.
This project will have a positive impact on the revitalization of the city's downtown as an existing
downtown landmark building continues to be rehabilitated and actively reused. The project is
consistent with the City's goals to expand local business, increase the number of higher wage jobs and
further diversify our economic base.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
attachments
Prepared by: Pamela Myhre-Gonyier
Associate Planner
February 26, 1999
F:\USERS\P AMMG\WPDOCS\LOANDOC\SECURlTY\CEBAAPP.MEM