Kunkel, Bounds & Asso relocation assistance
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MEMORANDUM
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April 10, 2006
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Kunkel, Bounds & Associates, Inc.
Iowa Department of Economic Development
Application for Financial Assistance
Kunkel, Bounds & Associates is an insurance consulting firm providing innovative
insurance services to commercial accounts and their employees. The company has
announced its intent to relocate its Wisconsin operation to the Dubuque Technology
Park. The company will create 24 new full-time positions, averaging $22.56 per hour
plus benefits, over a three-year period. The company will be investing over $1.8 million
in land acquisition, new construction of a 10,000 square foot office building, and startup
operational expenses, including computer equipment, furniture and fixtures and job
training costs.
To assist this project, Kunkel, Bounds has requested a partially forgivable loan of
$75,000 from the Iowa Department of Economic Development (IDEO). City financial
assistance, as local match for the State financial assistance, is required, and is
proposed to be a land acquisition grant worth $78,500, representing a 50% reduction in
the price of two acres in the Technology Park. The company has also expressed
interest in optioning an additional 3.22 acres for future expansion. The City will
additionally commit to a 1 O-year tax increment financing (TIF) rebate of actual taxes
paid by the company. This is estimated by the company to be worth approximately
$150,000 as a TIF bond, but could be worth $300,000 if taken as a 10-year rebate.
Economic Development Director Dave Heiar recommends City Council approval of the
submission of an application for financial assistance to the Iowa Department of
Economic Development on behalf of Kunkel, Bounds & Associates, Inc.
CITY OF DUBUQUE, IOWA
MEMORANDUM
April 7, 2006
TO:
FROM:
Michael Van Milligen, City Manager
David Heiar, Economic Development Director ~
Kunkel, Bounds & Associates, Inc.
Iowa Department of Economic Development
Application for Financial Assistance
SUBJECT:
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing
the submission of an application for financial assistance (utilizing Community Economic
Betterment Account (CEBA) and High Quality Job Creation Program funding) to the Iowa
Department of Economic Development on behalf of Kunkel, Bounds & Associates, Inc. The
financial assistance application is attached.
BACKGROUND
Kunkel, Bounds & Associates is an insurance consulting firm providing innovative insurance
services to commercial accounts and their employees. The company has announced its
intent to relocate its Wisconsin operation to the Dubuque Technology Park. The company
will create 24 new full-time positions over a 3 year period.
The application on behalf of the company will provide financial assistance to enable the
company's relocation and expansion in Dubuque. As required by the financial assistance
programs, the application requires a financial commitment from the City to the project.
DISCUSSION
In its application to IDEO, the company has committed to employ 24 new full-time
employees averaging $22.56 per hour plus benefits. The company will be investing over
$1.8 million in land acquisition, new construction of a 10,000 square foot office building, and
startup operational expenses, including computer equipment, furniture and fixtures and job
training costs.
To assist this project, Kunkel, Bounds has requested a partially forgivable loan of $75,000
from IDEO. City financial assistance, as local match for the state financial assistance, is
required and is proposed to be a land acquisition grant worth $78,500 representing a 50%
reduction in the price of 2 acres in the Technology Park. The company has also expressed
interest in optioning an additional 3.22 acres for future expansion. The City will additionally
commit to a 1 O-year tax increment financing (TIF) rebate of actual taxes paid by the
company. This is estimated by the company to be worth approximately $150,000 as a TIF
bond but could be worth $300,000 if taken as a 10-year rebate.
RECOMMENDATION
I recommend that the City Council authorize the submission of an application for state
financial assistance on behalf of Kunkel, Bounds & Associates, Inc. with a commitment
from the City to assist the project with a land discount and TIF tax rebate.
This project is consistent with the City's goals to expand our tax base and increase the
number of good paying jobs for our citizens.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
attachments
F:\USERSIPMyhre\WPDOCS\LOANDOCIKUNKEL,BOUNDS&ASSOC\CEBA APP memo.doc
RESOLUTION NO. 163-06
A RESOLUTION AUTHORIZING THE FILING OF AN IOWA
DEPARTMENT OF ECONOMIC DEVELOPMENT APPLICATION FOR
FINANCIAL ASSISTANCE ON BEHALF OF KUNKEL, BOUNDS &
ASSOCIATES, INC.
Whereas, Kunkel, Bounds & Associates, Inc. has proposed the relocation of its
operations to the Dubuque Technology Park 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 24 new full-time jobs for area residents; and
Whereas, the Iowa Department of Economic Development's financial assistance
programs are 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 state's
financial assistance programs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the filing of an Iowa Department of Economic Development
Application for Financial Assistance on behalf of Kunkel, Bounds & Associates, Inc. is
hereby approved.
Section 2. That the local match identified in the application consisting of a land
discount and a 1 O-year TIF rebate to the company is hereby approved, subject to the Iowa
Department of Economic Development's approval of the application.
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 17th day of April 2006.
Roy D. Buol, Mayor
Attest:
Jeanne Schneider, City Clerk
F:IUSERsIPMyhreIWPDOCSILOANDOCIKUNKEL.BOUNDS&ASSOCICEBA app res.doc
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE FILING OF AN IOWA
DEPARTMENT OF ECONOMIC DEVELOPMENT APPLICATION FOR
FINANCIAL ASSISTANCE ON BEHALF OF KUNKEL, BOUNDS &
ASSOCIATES, INC.
Whereas, Kunkel, Bounds & Associates, Inc. has proposed the relocation of its
operations to the Dubuque Technology Park 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 24 new full-time jobs for area residents; and
Whereas, the Iowa Department of Economic Development's financial assistance
programs are 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 state's
financial assistance programs.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the filing of an Iowa Department of Economic Development
Application for Financial Assistance on behalf of Kunkel, Bounds & Associates, Inc. is
hereby approved.
Section 2. That the local match identified in the application consisting of a land
discount and a 1 O-year TIF rebate to the company is hereby approved, subject to the Iowa
Department of Economic Development's approval of the application.
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 17th day of April 2006.
Roy D. Buol, Mayor
Attest:
Jeanne Schneider, City Clerk
F:IUSERSIPMyhreIWPDOCSILOANDOCIKUNKEL.BOUNDS&ASSOCICEBA app res.doc
IOWA
I I changing'"
Mary Lawyer, Director
Iowa Department of Economic Development
Application for Financial Assistance
Section A - Applicant & Project Information
Business Development Division
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, Iowa 50309
. www.iowalifechanqillg.com
3/17/2006
Instructions
1. All applicants shall complete Section A of the Application for Financial Assistance and attach only those section(s) for the
program(s) to which the applicant is applying.
Prooram
Community Economic Bettermeant Account (CEBA)
Enterprise Zone Program (EZ)
High Quality Job Creation Program (HQJC)
Entrepreneurial Ventures Assistance Program (EVA)
Value Added Agricultural Products & Processes
Financial Assistance Program (VAAPFAP) Section F
Economic Development Set-Aside Program (EDSA) Section G
2. Please visit the IDEO Web site, http://www.iowalifechanoino.com/applications/busdev/index.htmlor contact IDEO at (515)
242-4819 to see if this version of the application is still current.
3. Before filling out this application form, please read all applicable sections of the 2005 Iowa Code and Iowa Administrative
Code (rules). http://www4.1eois.state.ia.us/IAChtml/261.htm
4. Only typed or computer-oenerated applications will be accepted and reviewed. Any material change to the fonnat,
questions, or wording of questions presented in this application, will render the application invalid and it will not be
accepted.
5. Complete the applicable sections of the application fully; if questions are left unanswered or required attachments are not
submitted, an explanation must be included.
6. Use clear and concise language. Attachments should only be used when requested or as supporting documentation.
7. Any inaccurate information of a significant nature may disqualify the application from consideration.
8. Upon completion of the application, please submit the following to the Business Finance Team at IDEO:
. The original, signed application form and all required attachments
. One copy of the application form and all required attachments from which additional copies can easily be made.
If electronic copies of the application and required attachments are available, please e-mail these documents to
businessfinance@iowalifechanoino.com in addition to submitting the original plus one copy.
Business Finance Team
Iowa Department ot Economic Development
200 East Grand Avenue
Des Moines IA 50309
Download and Complete
Section B
Section C
Section 0
Section E
Application Due Dates
IDEO Board Meettn
A ril 20, 2006 March 27, 2006
Ma 18,2006 A ri124, 2006
June 15, 2006 Ma 22, 2006
Jul 20, 2006 June 26, 2006
Au ust 17, 2006 Jul 24, 2006
Se tember 21, 2006 Au ust 28, 2006
October 19, 2006 Se tember 25,2006
November 16, 2006 October 23, 2006
December 21, 2006 November 27, 2006
* EVA applications will be acted upon every other month starting in March.
A lication Due Date
Section A - Applicant & Project Information
2
Public Records Policies
Information Submitted to IDEO. The Iowa Department of Economic Development (IDEO) is subject to the Open Records law
(Iowa Code, Chapter 22). Treatment of information submitted to IDEO in this application is governed by the provisions of the
Open Records law. All public records are available for public inspection. Some public records are considered confidential and
will not be disclosed to the public unless ordered by a court, the lawful custodian of the record, or by another person duly
authorized to release the information.
Confidential Records. IDEO automatically treats the following records as confidential and they are withheld from public
disclosure:
. Tax Records
. Quarterly Iowa Employer's Contribution and Payroll Report prepared for the Iowa Workforce Development Department
. Payroll Registers
. Business Financial Statements and Projections
. Personal Financial Statements
Other information supplied to IDEO as part of this application may be treated as confidential under Iowa Code section 22.7.
Following are the classifications of records which are recognized as confidential under Iowa law and which are most frequently
applicable to business information submitted to IDEO:
. Trade secrets [Iowa Code 922.7(3)]
. Reports to governmental agencies which, if released, would give advantage to competitors and serve no public purpose.
[Iowa Code 922.7(6)]
. Information on an industrial prospect with which the IDEO is currently negotiating. [Iowa Code 922.7(8)]
. Communications not required by law, rule or regulation made to IDEO by persons outside the government to the extent that
IDEO could reasonably believe that those persons would be discouraged from making them to the Department if they were
made available for general public examination. [Iowa Code 922.7(18)]
Information supplied to IDEO as part of this application that is material to the application and/or the state program to
which the applicant is applying including, but not limited to the number and type of jobs to be created, wages for those
jobs, employee benefit Information, and project budget, are considered open records and will not be treated as
confidential.
Additional Information Available. Copies of Iowa's Open Record law and IDEO's administrative rules relating to public
records are available from the Department upon request or at
http://www.iowalifechanQinq.com/downloads/chap1690penrecords.doc.
Section A - Applicant & Project Information
3
Applicant Information
1. Name of Business: Kunkel, Bounds & Associates, Inc.
Address: 203 High Street
City, State & Zip Code: Mineral Point, WI 53565
Contact Person: Timothy J. Kunkel Title: President
Phone: 608-987-1155 Fax: 608-987-2310 Email: tim.kunkel@kunkel-bounds.com
2. SIC or NAICS Code:
3. FederallD Number: 68-0558586
Does the Business file a consolidated tax return under a different tax ID number? 0 Yes [g] No
If yes, please also provide that tax ID number:
4.
Is the contact person listed above authorized to obligate the Business? [g] Yes
If no, please provide the name and title of a company officer authorized to obligate the Business:
ONo
5. If the application was prepared by someone other than the contact person listed above, please complete the following:
Name: Title:
Organization:
Address:
City, State, & ZIP Code:
Phone: Fax: Email:
Sponsor Information
Please review the following table to determine who needs to sponsor this application. Depending on the programs being
applied for, more than one sponsor may be necessary.
Pro ram
CEBA
EZ
HQJC
EVA
VAAPFAP
EDSA
1. Sponsor Organization: City of Dubuque
Official Contact (e.g. Mayor, Chairperson, etc.): Roy D. Buol Title: Mayor
Address: 50 West 13th Street
City, State & ZIP Code: Dubuque, IA 52001
Phone: 563-589-4110 Fax: E-mail:
2. If IDED needs to contact the sponsor organization with questions, should we contact the person listed above?
[g] Yes 0 No, please contact the following person:
Name: David Heiar Title: City of Dubuque Economic Dev. Director
Address: 50 West 13th
City, State & ZIP Code: Dubuque, IA 52001
Phone: 563-589-4393 Fax: 563-589-1733 E-mail: dheiar@cityofdubuque.org
If necessary, please list infomnation on additional sponsors in an attachment.
Section A - Applicant & Project Information
4
Certification & Release of Information
I hereby give permission to the Iowa Department of Economic Development (IDEO) to research the Business' history, make
credit checks, contact the Business' financial institutions, insurance carriers, and perforrr other related activities necessary for
reasonable evaluation of this application. I also hereby authorize the Iowa Department of Revenue to provide to IDEO state tax
inforrration pertinent to the Business' state income tax, sales and use tax, and state tax credits claimed.
I understand that all inforrration submitted to IDEO related to this application is subject to Iowa's Open Record Law (Iowa Code,
Chapter 22).
I understand this application is subject to final approval by IDEO 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 IDEO reserves the right to negotiate the financial assistance. Furtherrrore, I am aware that financial
assistance is not available until an agreement is executed within a reasonable time period following approval.
I hereby certify that all representations, warranties, or statements made or furnished to IDEO in connection with this application
are true and correct in all material respect. I understand that it is a criminal violation under Iowa law 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 the Business:
Signature
Date
Timothy J Kunkel
Name and Title (typed or printed)
For the Sponsor(s):
Signature
Date
Name and Title (typed or printed)
Please use the following if more than one sponsor is required. (For example, use this if a signature from the local Enterprise
Zone Commission is required in addition to the signature from the Mayor of the sponsoring city.)
Signature
Date
Name and Title (typed or printed)
IDEO 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, IDEO may initiate legal action to recover
incentives and assistance awarded to the Business.
Section A - Applicant & Project Information
5
Proiect Information
1. Provide a brief description and history of the Business. Include information about the Business' products or services
and its markets and/or customers.
Kunkel, Bounds and Associates, Inc. is an insurance consulting firm providing innovative insurance services to
commercial accounts and their employees. The company's services are comprised of six areas of operation:
1) Insurance Consulting Services - Kunkel, Bounds & Associates, Inc. works with employers and/or claim
administrators to help reduce their total cost of risk and market their services.
2) Insurance Wholesaler Operations - Kunkel, Bounds & Associates, Inc. works on behalf of claim paying companies and
insurance agents to help them find the best coverages and pricing for their clients.
3) Claim Consultants - Kunkel, Bounds & Associates, Inc. helps employers aggressively manage their claims and track
savings opportunities.
4) Insurance Brokerage & Agency Operation - Kunkel, Bounds & Associates, Inc. acts as an insurance broker/agent by putting
insurance programs in place for its employer clients.
5) Patient Advocate Services - Kunkel, Bounds & Associates, Inc. confidentially helps employees with questions and
concerns they have regarding their medical bills & Medicare items.
6) Real Estate & Maintenance Operations - Kunkel, Bounds & Associates, Inc. subcontracts out handyperson services.
Kunkel, Bounds and Associates, Inc. is led by an experienced management team, with a strong background in providing first
class insurance and risk management analysis. The company brings this expertise to the target client market, with the objective
of assisting employers by providing innovative solutions that impact their bottom line.
The Mission of Kunkel, Bounds and Associates, Inc. is:
. To provide the highest level of consultation and customer service to our clients in assisting them with reducing their
total cost of risk
. To provide an environment of respect, trust, and honesty for our employees while helping them on their journey of
personal growth
. To actively and positively participate in and contribute to the community
. To always work with all of our business partners and associates with the utmost integrity and honor
2.
Business Structure:
o Cooperative
o Partnership
o Corporation
~ S-Corporation
o Limited Liability Company
o Sole Proprietorship
o Not for Profit
State of Incorporation: Wisconsin
3. Identify the Business' owners. Timothy J. Kunkel and Frederick S. Bounds
Does a woman, minority, or person with a disability own the Business?
If yes, is the business certified as a Targeted Small Business?
DYes
DYes
~ No
o No
4. List the Business' Iowa Locations and the Current Number of Employees at each Location.
Currently no locations in Iowa.
5. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and other
affiliated entities in this figure.) Currently one location in Mineral Point, Wisconsin with 11 employees.
Section A - Applicant & Project Information
6
6. 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.)
Kunkel, Bounds & Associates is considering relocating its business. The location being considered is The Technology
Park in Dubuque, Iowa. We would like to put up a 10,000 square foot building, beginning construction approximately
the summer of 2006. We would be bringing eleven high paying jobs to the area right away, with a projection of 24 jobs
within three years.
7. Project Address (Street Address, City, and County):
Kunkel, Bounds & Associates would like to build in The Technology Park, Dubuque, Iowa (Dubuque County). This is
contingent on getting incentives from the state of Iowa.
8. Type of Business Project:
D Startup D Expansion of Iowa Company D New Location in Iowa
[8] Relocation from another State
9. Please identify the management at the project location and his/her/their experience.
Timothy J. Kunkel, President/CEO: Tim has served his entire career in the insurance brokerage
business. On his way to becoming a Senior Vice President and Sales Manager for a large regional
insurance brokerage, (ranked in the top 100 by Business Insurance Magazine) Tim's work experience has
encompassed a wide range of skills and responsibilities. While managing, training, and coaching a large
sales staff, Tim was responsible for the production and maintenance of an annual commission book of
business in excess of $2 million. Tim's contributions helped the company grow at a rate of 10-20% per
year over the last 14 years. He is familiar with many aspects of both the health benefits and property and
casualty sides of the brokerage business, with special expertise in self-funded health benefits, captives,
high-deductible programs, and alternative risk management products. Tim has worked with clients of many
industries, including transportation, healthcare, manufacturing, social services, and construction.
Tim graduated Magna Cum Laude from Loras College in Dubuque, Iowa, with a Bachelor of Arts degree in
Marketing. He holds the Chartered Property Casualty Underwriter (CPCU) designation from the American
Institute for Chartered Property Casualty Underwriters, and has also earned his Associate in Risk
Management (ARM) designation from the Insurance Institute of America.
Frederick S. Bounds, Executive Vice President: Prior to becoming an insurance producer, Fred served
for several years as a manager and Occupational Safety and Health Consultant. His work experience has
included environmental consulting, loss control, industrial hygiene, and risk management for the
healthcare, transportation and manufacturing industries. He has managed several national Workers'
Compensation group programs and spoken on risk management at industry and trade group association
meetings throughout the United States. He has extensive knowledge of both OSHA and DOT compliance.
His insurance career revolves around providing detailed analysis of health benefits and workers'
compensation data, in order to provide consultative solutions to the needs of his clients.
A graduate of the University of Iowa with a Bachelor of Science in Biology, he completed his Master of
Science degree in Toxicology / Industrial Technology at Iowa State University. He has earned his
Associate in Risk Management (ARM) and Associate in Loss Control Management (ALCM) designations
from the Insurance Institute of America. Fred is a member of the American Industrial Hygiene Association,
and also serves as an Adjunct Professor of Undergraduate Studies at Iowa State University.
10.
Has any part of the project started?
If yes, please explain.
DYes
[8] No
Section A - Applicant & Project Information
7
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12. Employee Benefits: Please identify 2!! employee benefits provided by and paid for (in full or in part) by the Business.
Employee Benefits
Provided by the
Business
Portion oITotal
Annual Cost Paid by
the Business'
Employee
Medical/Health
Insurance
Average annual cost tor Group $6.102 per employee
Kunkel. Bounds pays 80% ($4,881.60 per employee)
Dental Insurance
$433.20
EIS $666.52
EIC $1126.56
F $1343.26
$324.90
EIS $649.69
EIC $644.92
F $1007.46
Vision Insurance
Life Insurance
Short Term Disability
(STD)
Long T enm Disability
(LTD)
Monthly premium $9.95 per employee
Kunkel, Bounds pays 100%
Plan Provisions
(Include deductibles, coinsurance %, office visit
co-payments, annual out-ol-pocket maximums,
face amounts, etc.
In-Net.
Deductible $500 I $1500
Coinsurance gO / 10
Coins. Max. $500 I $1000
RX $10 I $20 I $30
Deductible - $50 I $150
Preventive - 100%
Basic - 80%
Maor - 50%
(Medical plan Includes one vision exam per year)
. II the business's plan is sell-insured, please use the amount paid by the business lor costs associated with employee and lamily coverage
during the past three years and then, determine the business' average annual contribution per employee lor that three year period.
Does the Business ofter a pension plan, 401(k) plan, and/or retirement-plan? ~ Yes D No
If yes, please indicate the amount contributed on a per employee basis by the Business to the plan. For 401 (k) plans, please
provide infonmation on the company match and indicate the average annual match per employee (show average as a
percentage of salary).
Kunkel, Bounds match: 50% on the first 4%, 25% on the next 2%
Annual- 2.5% of salary
Does the Business ofter a profit-sharing plan? ~ Yes D No
If yes, please indicate total amount paid out each year for the past three years and then, detenmine the average annual bonus or
contribution per employee for that three year period.
Profit sharing began in 2005. Kunkel, Bounds paid out $18,000 in profit sharing bonuses, or approximately $2,500 per
employee.
Does the Business after child care services? D Yes ~ No
Child care services include child care services on-site at the facility in which the project will occur or oft-site child care
subsidized by the business at the rate of 50% or more of the costs incurred by an employee.
Section A - Applicant & Project Information
9
13. Identify the Business' competitors. 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 proposed
project may have on the Iowa competitor.
Kunkel, Bounds & Associates, Inc. clientele is currently located throughout the Midwest, with about 19% of its
brokerage revenues coming from Iowa clients. There is not a single entity that Kunkel, Bounds & Associates competes
against more than 5% of the time. As a result, we would have only a very minimal impact on any Iowa competitors.
14. Will any of the current Iowa employees lose their jobs if this project does not proceed in Iowa?
o Yes ~ No
If yes, please explain why and identify those jobs as "retained jobs" in the following question.
Section A - Applicant & Project tnformation
10
15. List the jobs that will be retained and/or created as the result of this project. (A retained job is an existing job that
would be eliminated or moved to another state if the project does not proceed in Iowa.) For retained jobs, include the current
hourly wage rate. For jobs to be created, including the startinQ hourly wage rate.
Job Title Skills, Education, or Experience Number of Retained (R) or Starting or Current Hourly
Required Jobs Created IC) Wage Rate
Year 1 of the Proiect - 2006
President 1 C $125,000
Vice President 1 C $ 90,000
Benefits Executive / HR 1 C $ 70,000
Benefits Manaaer 1 C $ 48,500
P&C Account Mana;;E,r 1 C $ 52,500
Sales 1 C $ 29,000
Sales 1 C $ 50.000
Sales - new 2 C $ 50,000
Accountinn Snecialist 1 C $ 33,280
s;;ocial PrOiect Mana.;-er 1 C $ 26,000
Administrative Assistant 1 C $19,110
Administrative AssistanUService 1 C $ 35,000
Year 1 Subtotal 13
Year 2 of the Proiect. 2007
Sales 1 C $ 50,000
Benefit Mananer 1 C $ 50,000
P&C Account Mananer 1 C $ 50,000
Administrative Assistant 1 C $ 28,000
Customer Service 1 C $ 30,000
Sales 1 C $ 35,000
Year 2 Subtotal 6 ,
Year 3 of the prOlect - 2008
Sales 1 C $ 35,000
P&C Account Mananer 1 C $ 50,000
Benefit Mananer 1 C $ 50,000
Sales 1 C $ 40,000
Administrative Assistant 1 C $ 30,000
Year 3 Subtotal 5
Total Number of Retained Jobs:
Total Number of Created Jobs: 24
Section A - Applicant & Project Information 11
16. Discuss each of the following items with respect to the proposed project:
a) the current employment conditions in the community, include any business closures, unemployment rates, etc.
and if applicable, the community's need for assistance in attracting the Business.
Since January of 2003, the Dubuque metro area has experienced an increase of 4,000 jobs. In addition, during
this same period, new commercial/industrial construction spending has exceeded $170 million.
From a broader perspective, Dubuque County has experienced declining manufacturing employment, going from
37% of the total jobs in 1978 to the current level of about 17 percent. Unfortunately, some of the manufacturing
jobs have been replaced with varying types of lower-paying service jobs. During just the past few months, some of
Dubuque's large manufacturers, like Flexsteellndustries, have shed jobs. However, thanks to a growing interest in
this region's financial services/insurance industry talent, Dubuque's economy has been resilient.
The proposed project of Kunkel, Bounds & Assoc. will provide additional employment opportunities in Dubuque,
and state assistance is needed to attract the jobs to Iowa.
b) impact of the proposed project on the community and the state, include projections that reflect the impact on local
and state tax revenue and any additional costs the community will incur as the result of the proposed project;
This proposed project will create 24 new jobs in Dubuque. The proposed expansion will invoive a $1 million addition to
the property tax base, which will provide over $37,000 additional property taxes per year.
c) impact the proposed project will have on current employees, including the potential for increased skills and wages;
All current employees will retain their jobs and be relocated to Iowa
d) impact the investment will have on the ability of the business to expand, upgrade, or modernize its capabilities.
17. Is the Business actively considering locations outside of Iowa? ~ Yes 0 No
If yes, where and what assistance is being offered?
Southwest Wisconsin and East Dubuque, Illinois
Offers include: Tax credit up to $8,000 per job creation, TIF Districts, $2,500 per acre for land, $60,000
forgivable loans plus low interest loans.
18. There are three general justifiable reasons for assistance. Check the box next to the reason why assistance is needed
to complete this project
o 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 federal funds are needed to fill the gap.
o 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 (Incentive) - The Dubuque, Iowa location will cost almost $1.8 million. Therefore,
compared to the company's current location in Wisconsin (no moving, building, expansion costs), there is a
disadvantage for Dubuque.
What measures were analyzed to determine the amount and form of assistance needed?
19.
What amount of state assistance is requested based on the above-identified need?
$75,000 thru IDED
What type/form of assistance is preferred (e.g. loans, forgivable loans, tax incentives, etc.)?
Forgivable Loans & Tax Incentives
75% forgivable loan, 25% zero interest
Section A - Applicant & Project Information
12
20. Please indicate what program(s) the Business is applying to and download and submit those applicable sections:
~
D
~
D
D
D
CEBA
EZ
HQJC
EVA
VAAPFAP
EDSA
(Complete Section B)
(Complete Section C)
(Complete Section D)
(Complete Section E)
(Complete Section F)
(Complete Section G)
The Department reserves the right to review this application and determine, based on the proposed project and available
program funds, which financial assistance program(s) is best suited for the Business' project. The actual program(s) utilized
may vary from the programs indicated above.
Section A - Applicant & Project Information
13
21. Return on Investment Information - Business Taxes
IDEO is required to calculate the return on state and local government investments in this project. Data from other parts of the
application will be combined with the estimates requested below to calculate the required retum on investment information.
Instructions for Question 21
IDEO 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, IDEO needs estimates for the first three years of the project.
Show data as if no tax abatements or tax credits awarded for this proiect 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 IDEO.
This page of the application will automatically be treated as confidential.
Increase in Tax Collections Associated with this Project
State Business Taxes Year 1 Year 2 Year 3 Year 4 Year 5
State Corporate Income Tax' $ 25,827 $ 34,034 $ 44,293 $ 57,116 $ 73,145
State Business Sales and Use Tax $ 94,200 $ 6,325 $ 4,900 $ 5,225 $ 5,500
. Insurance Companies: Provide State Insurance Premium Tax
Local Business Taxes Year 1 Year 2 Year 3 Year 4 Year 5
Local Real Estate Property Tax $ 37,117 $ 37,117 $37,117 $37,117 $ 37,117
Local Option Sales Tax $ 37,680 $ 2,530 $ 1,960 $ 2,090 $ 2,200
Section A - Applicant & Proiect tnformation
14
Attachments
Please attach the following documents:
A 1 Business Plan
At a minimum, include:
. marketing study,
. feasibility study,
. projected profit and loss statements for three years into the future,
. project budget,
. production operations,
. management structure,
. personnel needs,
. descriptions of product or process,
. status of producUprocess development, and
. patent status (if applicable).
(Any information outlined above not included in the business plan should be submitted as supplemental information via
a separate attachment.)
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.
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.
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; and
. Schedule of other debts.
Application Checklist
Section A - Appiicant & Proiect Information
15
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Section B - CEBA
1. Which program component is the Business applying for?
o Small Business Gap Financing
~ New Business Opportunity
o New Product Development
o Modernization Component
2. Funding Information:
Total Amount Requested:
Loan Amount:
Forgivable Loan Amount:
$ 75,000
$18,750
$ 56,250
See Chapter 53, Section 261 in the CEBA Administrative Rules for maximum funding amounts. The CEBA program is
not designed to provide 100% funding for any project and limits assistance based on the type of project submitted.
3. Security:
o
o
o
o Personal Guarantee 0 Other:
All awards secured by Personal Guarantees will require a current financial statement from each of the personal
guarantors, which must be attached to the application.
~
o
o
Corporate Guaranty
UCC Financing Statement
Irrevocable Letter of Credit
Surety Bonds
Mortgage on Real Estate
Escrow Account
4. Does the business certify that at least 10% of the positions to be created will be made available to qualified Promise
Job Participants? ~ Yes 0 No
5. Are underground tanks (whether or not in current use) for the storage of petroleum products, agricultural or other
chemicals, waste oil or other liquid waste or any other inflammable, corrosive, reactive or explosive liquid or gas
located on the project site?
DYes
~ No
If yes, please explain:
Will the Business be storing above-ground, on or about the project site, in tanks or otherwise, any liquid or gas (as
described above) or any inflammable, corrosive, reactive or explosive solid, for any length of time or any purpose?
DYes
~ No
If yes, please specify:
Will the Business be treating, transporting or disposing of any liquid, gas, or solid (described above) either on or about
the project site or at a landfill or other treatment facility or upon any public street or highway, or on any waterway or
body of water, or in any aircraft?
DYes
~ No
If yes, please specify the substance and what the Business will be doing with it.
Section B - CEBA
2/4/2005
6. Does the Business generate solid or hazardous waste? DYes [8] No
If yes, please describe and provide a copy of the Business' solid and hazardous waste reduction plans.
Attachments
Please attach the following documents:
B3 Community resolution authorizing the submission of the application
Section B - CEBA
2/4/2005
2
IOWA
Section D - High Quality
Job Creation Program
I' h '
II Ie angmg"
1. The Business must meet at least 4 of the following required eiements to be eligible for the High Quality Job Creation
Program. Please indicate which 4 required elements the business meets. (If the business is a start-up, please indicate
which 4 required elements the business will meet when its operation commences.)
o
o
[g1
o
o
[g1
The business shall offer a pension or profit sharing plan to all full-time employees. For purposes of this
requirement, a retirement program offered by the business, such as a 401 (k) plan, and to which the business
makes a monetary contribution shall be considered the equivalent of a pension plan.
The business shall produce or manufacture high value-added goods or services or be engaged in one of the
following industries': Insurance and financial services
The business shall provide and pay at least eighty percent of the cost of a standard medical and dental
insurance plan for all full-time employees working at the facility in which the new qualifying investment occurs.
For purposes of this requirement, single or employee-only medical and dental coverage will be what the
deparlment considers in determining if the business meets this required element.
The business shall make child care services available to its employees. The business shall satisfy this
required element if it provides child care services on-site at the facility in which the project will occur or if it
subsidizes 50% or more of off-site child care service costs incurred by an employee.
The business shall invest annually no less than one percent of pretax profits, from the facility located to Iowa
or expanded or modernized under the program, in research and development in Iowa. The business must be
able to demonstrate, using generally accepted accounting principles, the facility's history of pretax profits or a
reasonable expectation of pretax profits from the facility in order to utilize this element.
The business shall invest annually no less than one percent of pretax profits, from the facility located to Iowa
or expanded or modernized under the program, in worker training and skills enhancement. The business
must be able to demonstrate, using generally accepted accounting principles, the facility's history of pretax
profits or a reasonable expectation of pretax profits from the facility in order to utilize this element.
The business shall have an active productivity and safety improvement program(s). The program(s) will
involve both management and workers and have benchmarks for gauging compliance.
The business shall purchase and occupy an existing facility that includes at least one vacant building which is
at least 20,000 square feet.
[g1
[g1
, State's targeted industries include: value-added agricultural products, insurance and financial services, plastics,
metals, printing paper or packaging products, drugs and pharmaceuticals, software development, instruments and
measuring devices and medical instruments, recycling and waste management, telecommunications and trucking and
warehousing.
Attachments
Please attach the following documents:
For projects of $10 million or more, include the following:
D1 Resolution by the sponsoring County Board of SupervisorslCity Council approving this application
For projects of $10 million or more and when a local value-added properlv tax exemption is beina offered. include the following:
D2 Legai description of the project site. Include the size, in acres.
D3 Detailed map (no larger than 8"x14") showing the boundaries of the project site.
Section 0 - HQJC
6/24/2005