City of Peosta_Agreement for Relocation and Expansioin of TriState Quality MetalsMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
band
AI- America City
1
2007 • 2012 • 2013
SUBJECT: Agreement with City of Peosta for relocation and expansion of TriState
Quality Metals
DATE: August 27, 2013
TriState Quality Metals, a manufacturing company located in Peosta is proposing to
expand its operation. The company is proposing to purchase approximately 5 acres,
with a potential to purchase another 5 acres. Gary Wilming, the owner of the company,
has reviewed options for the expansion in Peosta and Dubuque; however, there are no
ten acre sites available in Peosta.
Property in the Dubuque Industrial Center South will be available for purchase in late
2013.
Negotiations on land and tax increment financing by City staff and TriState Quality
Metals are in the discussion stage. However, because of an amendment to state law in
2012, in order for the City of Dubuque to provide tax increment financing to a company
relocating from another location in Iowa, the affected city must have an agreement in
place. The City of Peosta must approve or the City of Dubuque may not provide Tax
Increment rebates to the company.
Acting Economic Development Director Phil Wagner recommends City Council approval
of an agreement with the City of Peosta concerning the expansion of TriState Quality
Metals, as negotiated by Greater Dubuque Development Corporation Existing Business
Specialist Bill Baum.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Phil Wagner, Acting Economic Development Director
Masterpiece on the Mississippi
Dubuque
bitell
All- America City
1 I
2007 • 2012 • 2013
DATE: August 26, 2013
TO: Michael Van Milligen, City Manager
FROM: Phil Wagner, Acting Economic Development Director
SUBJECT: Agreement with City of Peosta for relocation and expansion of TriState
Quality Metals
INTRODUCTION
The purpose of this memorandum is to request City Council review and approval of an
agreement between the City of Peosta concerning the expansion of TriState Quality
Metals.
BACKGROUND
TriState Quality Metals, a manufacturing company located off of Kapp Drive in Peosta is
proposing to expand its operation. The company currently employs 13 persons and
leases space from two landlords. The Company has no room to expand at its current
location, and is proposing to build a 40,000 square foot facility. Company will add 10 -12
positions with the expansion. Average wages are $15 per hour.
The company is proposing to purchase approximately 5 acres, with a potential to
purchase another 5 acres. Gary Wilming, the owner of the company, has reviewed
options for the expansion in Peosta and Dubuque. However, there are no ten acre sites
available in Peosta.
Meanwhile, the City of Dubuque is in the process of developing the Dubuque Industrial
Center South, along Seippel Road just west of Highway 20. This property will be
available for purchase in late 2013, and a site in this new industrial park is preferred by
the company.
DISCUSSION
Negotiations on land and tax increment financing by City staff and TriState Quality
Metals are in the discussion stage. However, because of an amendment to state law in
2012, in order for the City of Dubuque to provide tax increment financing to a company
relocating from another location in Iowa, the affected cities must have an agreement in
place. In other words, the City of Peosta must approve or the City of Dubuque may not
provide Tax Increment rebates to the company.
With assistance from staff at Greater Dubuque Development Corporation, Bill Noth, the
City's bond counsel, and the City attorney, an agreement has been drafted and
approved on August 13, 2013 by the City Council of Peosta.
RECOMMENDATION
I recommend the City Council approve the attached resolution, authorizing the Mayor to
execute the agreement with the City of Peosta.
Enclosures
Prepared By: Phil Wagner, Acting ED Director City of Dubuque 50 W. 13th St. Dubuque, IA 52001
Return To: Phil Wagner, Acting ED Director City of Dubuque 50 W. 13th St. Dubuque, IA 52001
RESOLUTION NO. 279 -13
A RESOLUTION AUTHORIZING THE APPROVAL AND EXECUTION OF AN
AGREEMENT BETWEEN THE CITY OF PEOSTA, IOWA AND THE CITY. OF
DUBUQUE, IOWA
Whereas, TriState Quality Metals, a Peosta Company, is proposing to expand its
number of employees and size of facility; and
Whereas, the company desires relocation to Dubuque due to insufficient options for
expansion in Peosta; and
Whereas, the company will be requesting Tax Increment Financing (TIF) from the
City of Dubuque; and
Whereas, in order to provide TIF to a relocating Iowa company, the City of Dubuque
and City of Peosta must enter into a mutual agreement; and
Whereas, the City of Peosta signed the agreement on August 13, 2013.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE. IOWA:
Section 1. That the Mayor is hereby authorized to execute the agreement between
the City of Dubuque and City of Peosta.
Section 2. That the City Clerk is directed to remit an original signed agreement to the
City of Peosta and retain an original signed agreement for internal records.
Passed, approved, and adopted this 3rd day of September, 2013.
Attest:
Key' Firnstahl, ity Clerk
D.
Roy Buol, Mayor
AGREEMENT
This AGREEMENT is made this 15th day of August, 2013, by and among the City of Peosta, Iowa, and the
City of Dubuque Iowa.
WITNESSETH:
WHEREAS, TriState Quality Metals, a manufacturing company ( "Company ") currently located in
the City of Peosta is proposing an expansion in employment and facility; and
WHEREAS, the Company has determined that expansion at the existing location is not possible;
and
WHEREAS, the Company has searched for expansion locations in Peosta and Dubuque, and has
determined Peosta does not have any suitable industrial property meeting the Company's needs, and
WHEREAS, the most desirable option for the Company is to relocate and expand in Dubuque;
and
WHEREAS, the Company will be requesting Tax Increment Financing (TIF) from the City of
Dubuque; and
WHEREAS, Section 403.19(9)(a) of the Code of Iowa 2013, prohibits the use of TIF for the
relocation of the Company by the City of Dubuque unless, among other things, the City Councils of both
cities enter into a written agreement concerning the relocation.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. The City of Peosta, Iowa does not object and hereby consents to the expansion and relocation of
the Company to the City of Dubuque.
2. The City of Peosta, Iowa does not object and hereby consents to the City of Dubuque entering
into a Development Agreement and providing TIF to the Company to assist in the expansion and
relocation.
3. Upon approval of this Agreement by the City of Peosta, the City of Dubuque agrees to initiate
discussions with the Company concerning the availability of industrial properties and incentives
in the City of Dubuque.
4. This Agreement is intended to be and shall be construed as a written agreement entered into
under the provisions of Iowa Code Section 403.19(9)(a)(1), authorizing the use of TIF in
connection with the relocation of a commercial or industrial enterprise, and shall be binding
upon the successors and assigns of the respective parties hereto.
CITY OF PEOSTA, IOWA
BY: � ,lr(Jb(I ct;.t,
Dick Avenarius, Mayor
ATTEST:
CITY OF D UQU
BY:
Roy Buo , Mayor
ATTEST]
ren Snyder, City Clerk Kevin Firnstahl, City Clerk