Progressive Processing, LLC / Hormel State Assistance ApplicationMasterpiece on the Mississippi
Dubuque
band
AI- America City
1
2007 • 2012 • 2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: State of Iowa Business Financial Assistance Application for Progressive
Processing, LLC
DATE: October 29, 2013
Economic Development Director Maurice Jones recommends City Council approval of
the submission of a Business Financial Assistance Application to the Iowa Economic
Development Authority on behalf of Progressive Processing, LLC, a subsidiary of
Hormel Foods Corporation.
Progressive Processing has proposed expansion within the Dubuque facility to increase
capacity for two additional products existing within the company. Product No. 1 is
currently manufactured by a third party on Hormel's behalf at a facility outside of Iowa.
The proposal would relocate the entire production to Dubuque. Product No. 2 is
currently made at two domestic production facilities outside of Dubuque and the
company is exploring growing the line by adding capacity. Both projects would
collectively require an estimated $31.4 million in machinery and building improvements,
although the taxable value increase associated with the improvements at the facility,
located at 1205 Chavenelle Court, will likely be minimal. The proposed project would
add 91 jobs and promote the City's goals of growing existing businesses and further
diversifying the economic base.
The application on behalf of the company will provide State financial assistance to
enable the two proposed expansions in Dubuque. Progressive Processing, LLC has
applied for up to $1,842,000 in investment tax credits, $114,000 in research and
activities tax credits, and a $495,000 sales and use tax refund pending IEDA approval.
Additionally, the company has applied for a $160,000 loan from the State, of which
$80,000 is forgivable. Northeast Iowa Community College will be providing a 260E job
training grant of $450,173. Local sponsorship of the application is required for approval.
Due to the minimal increase of assessed value associated with the improvements, the
proposed local match is an additional five years of tax increment financing rebates. This
will amount to $1,342,000 in property tax rebates paid to the company at $268,400 a
year over a five -year period. This is approximately 40% of the increment that the
original Hormel project generates. If Hormel elects to proceed with the two projects in
Dubuque, the City Council will need to amend the existing Development Agreement with
the company to memorialize the incentive.
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
Maurice Jones, Economic Development Director
Jennifer Larson, Budget Director
2
THE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
kattil
All- America City
11111 r
2007 • 2012 • 2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: State of Iowa Business Financial Assistance Application for Progressive
Processing, LLC.
DATE: October 29, 2013
INTRODUCTION
This memorandum presents for City Council review and approval a resolution
authorizing the submission of a Business Financial Assistance Application to the Iowa
Economic Development Authority (IEDA) on behalf of Progressive Processing, LLC a
subsidiary of Hormel Foods Corporation.
BACKGROUND
Progressive Processing, LLC, (a wholly owned subsidiary of Hormel Foods Corporation)
located in the Dubuque Industrial Center West. The plant officially opened on January
25, 2010 when it processed its first line of Hormel Compleates ® microwave meals.
Additionally, the plant also processes canned chicken. Hormel Foods Corporation is a
multi - national manufacturer and marketer of consumer - branded meat and food
products. The company sells to consumers, retail grocers, foodservice and industrial
customers in 50 states and more than 40 countries. The headquarters for Hormel
Foods is located in Austin, Minnesota with its research and development division and
flagship plant. The company also has domestic plants in Georgia, Kansas, Illinois,
Wisconsin, Nebraska, and California to go along with six other locations in Iowa.
The company has proposed expansion of the Dubuque facility to increase capacity for
two additional products existing within the company. Product No. 1 is currently
manufactured by a third party on Hormel's behalf at a facility outside of Iowa. The
proposal would relocate the entire production to Dubuque. Product No. 2 is currently
made at two domestic production facilities outside of Dubuque and the company is
exploring growing the line by adding capacity locally. Both projects would collectively
require an estimated $31.4 million in machinery and building improvements, although
the taxable value increase associated with the improvements at the facility, located at
1205 Chavenelle Court, will likely be minimal.
Significant competition exists for both products. Hormel is considering negotiating
improvements and installing new equipment outside of Dubuque for this project.
Product No. 2 has significant growth projections outside of the United States and the
company is considering the creation of a new facility abroad, most likely in Asia or
South America. Additionally, expansions to existing domestic locations outside of Iowa
remain a possibility. Collectively, the projects would add an estimated 91 jobs to the
community.
DISCUSSION
The application on behalf of the company will provide State financial assistance to
enable the two proposed expansions in Dubuque. Progressive Processing, LLC has
applied for up to $1,842,000 in investment tax credits, $114,000 in research and
activities tax credits, and a $495,000 sales and use tax refund pending IEDA approval.
Additionally, the company has applied for a $160,000 loan from the State, of which
$80,000 is forgivable. Northeast Iowa Community College will be providing a 260E job
training grant estimated at $450,173. Local sponsorship of the application is required
for approval. Due to the minimal increase of assessed value associated with the
improvements, the proposed local match is an additional five years of tax increment
financing rebates. This will amount to $1,342,000 in property tax rebates paid to the
company at $268,400 a year over a five -year period. If Hormel elects to proceed with
the two projects in Dubuque, the City Council will need to amend the existing
Development Agreement with the company to memorialize the incentive.
RECOMMENDATION
I recommend that the City Council authorize the submission of a State of Iowa Business
Financial Assistance Application on behalf of Progressive Processing, LLC for the
proposed investment of $31.4 million for new machinery and building remodeling at their
location on 1205 Chavenelle Court. The proposed project would add 91 jobs and
promote the City's goals of growing existing businesses and further diversifying the
economic base.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
attachment
F: \USERS \Econ Dev \Hormel\20131029 IEDA application Council memo.docx
RESOLUTION NO. 319-13
A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR STATE
BUSINESS FINANCIAL ASSISTANCE ON BEHALF OF PROGRESSIVE PROCESSING,
LLC.
Whereas, Progressive Processing, LLC, a subsidiary of Hormel Foods Corporation, has
proposed making a $31.4 million investment as part of an expansion at their facility 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 in Dubuque
through the creation of 91 jobs; and
Whereas, financial assistance from the Iowa Economic Development Authority is
designed to assist in the economic development efforts of local jurisdictions; and
Whereas, the City of Dubuque, Iowa must provide local sponsorship on behalf of
Progressive Processing, LLC for their Business Financial Assistance Application with the
Iowa Economic Development Authority.
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 Economic
Development Authority's Financial Assistance Program on behalf of Progressive
Processing, LLC is hereby approved.
Section 2. That a five year tax increment financing rebate of $268,400 per year will be
provided as required local match, subject to further action by the City Council.
Section 3. That the Mayor is hereby authorized to execute and the City Manager is
hereby directed to submit said application to the Iowa Economic Development Authority
together with such documents as may be required.
Passed, approved, and adopted this 4th day of November, 20
F: \USERS \Econ Dev \Hormel\20131029 Resolution IEDA App Approval.docx
Roy D. Buol, Mayor
WA
Debi V. Durham, Director
Iowa Economic Development Authority
Business Financial Assis ance °cation
Business Finance - Business Development Division
Iowa Economic Development Authority
200 East Grand Avenue
Des °Ines, Iowa 50309-1819
WWW.lowaeconomialgvelo ment,com
Telephone: 515.7253134 Erna business ance@io a, ov
Application Instructions
To Complete Electronic Form: Click on TEXT BOX to add text. Double click on YES/NO boxes and select "Checked".
1. All applicants must complete the Business Financial Assistance Application and attach only those
additional sections for the components to which the applicant is applying.
STATE of IOWA -
Ei Enterprise Zone Program (EZ)
Supplemental info required—
Section G - EZ Supplement
Financial Assistance Programs
High Quality Jobs Program (HQJP)
Tax Credits
Direct Financial Assistance
2. Before filling out this application form, please read all applicable sections of the Iowa Code and Iowa
Administrative Code (rules). w.legis.stateja.us/lowaLaw.html
3. Only typed or computer-generated applications will be accepted and reviewed. Any material change to
the format, questions, or wording of questions presented in this application will render the application
invalid and it will not be accepted.
4. Complete the applicable sections of the application fully. If questions are left unanswered or required
attachments are not submitted, an explanation must be included.
5. Use clear and concise language. Attachments should only be used when requested or as supporting
documentation.
6. Any inaccurate information of a significant nature may disqualify the application from consideration.
7. The following must be submitted to Business Finance at IEDA in order to initiate the review process:
One original, signed application form and all required attachments
One electronic copy of the application form and all required attachments
Facsimile copies will not be accepted.
Applications must be submitted to IEDA Business Finance before 4:00pm on the fourth Monday of the month.
Applications will be reviewed by the IEDA Board on the third Friday of the following month.
Public Records Policies
During the application process, the information submitted by you to IEDA is exempt from disclosure under
the "industrial prospects" exemption found in Section 22.7(8). However, once you receive an award, the
industrial prospects exemption no longer applies and all documents submitted and generated during the
application and negotiation process become public records under Iowa's Open Records Law (Iowa Code,
Chapter 22), unless
1) The information belongs to one of the classes of records automatically treated as confidential; or
2) You have applied for and received written notice, that your information will be treated as confidential.
Automatically Confidential Records
I EDA automatically treats the following records as confidential and will hhold them from public inspection
even without a request for confidential treatment:
• Tax Records and Tax Liability Information
• Quarterly Iowa Employer's Contribution and Payroll Report prepared for the Iowa Workforce
Development Department
Payroll Registers
Business Financial Statements and Projections (unless those statements are already publicly
available elsewhere, e.g., 10-K filings)
Personal Financial Statements
Exemptions to the Open Records Law
If you wish to have additional information treated as confidential, you must fill out the confidential treatment
request form. Under the Open Records Law, IEDA may lawfully treat certain information as confidential if
that information falls within an exemption to the Open Records Law. The following exemptions represent
records which may lawfully be treated as confidential under the Open Records law and which are most often
applicable to the information submitted to IEDA:
Release of information would give an unfair advantage to competitors — Iowa Code Sec. 15.118
Trade secrets — See Iowa Code section 22.7(3), see also Iowa Code Ch. 550
Information on an industrial prospect with which the IEDA is currently negotiating — See Iowa Code
section 22/(8)
Communications not required by law, rule or regulation made to IEDA by persons outside the
government to the extent that I EDA could reasonably believe that those persons would be
discouraged from making them to I EDA if they were made available for general public examination —
Iowa Code section 22.7(18)
Non-Confidential Information
Information that is submitted to IEDA as part of the application process or that is contained in a contract for
program benefits is generally considered material to the eligibility requirements of the program or to the
amount of incentives or assistance to be provided. Such information is generally not given confidential
treatment. Such information includes but is not limited to, the number and type of jobs incented, the wage
levels for the incented jobs, your company's employee benefit information, and your project budget.
Additional Information Available. Copies of Iowa's Open Record law and IEDA's administrative rules
relating to public records are available from the IEDA upon request.
'EDF\ — BuSiness Financial Assistance Application
2 v„2.1.2013
SECTION A
Applicant Information
1. Name of Business: Hormel Foods Corporation
2. Entity Name (for contracting purposes):Progressive Processin , LLC
3. Address: 1 Hormel Place
4. City, State & Zip Code: Austin, MN 55912
5. Contact Person: Angela DeMorett Title: Tax Manager
6. Phone: 507-437-5435 Fax: 507-434-6731
amdemorett@hormel.com
7. FEIN: 41-0319970
8. NAICS Code for primary business operations: 311611,
9. US DOT Number:
Date Application Submitted:
Email:
10. Does the Business file a consolidated tax return under a different tax ID number?
111 Yes (If yes, please also provide that tax ID number) i1 No
a. Is the contact person listed above authorized to obligate the Business?
[1] Yes No If no, please provide the name and title of a company officer authorized to obligate
the Business: Roland G. Gentzler, VP Finance & Treasurer
11. If the application was prepared by someone other than the contact person listed above, please
complete the following:
Name of Business:
Address:
City, State & Zip Code:
Contact Person: Title:
Phone: Fax: Email:
Sponsor Information (A sponsor organization is a city or county)
12.
13.
14.
15.
16.
Sponsor Organization: City of Dubuque, Iowa
Official Contact (e.g. Mayor, Chairperson, etc Roy D. Buol
Title: Mayor
Address: 50 W. 13th St.
City, State & Zip Code: Dubuque, Iowa 52001
Phone 563-589-4100 Fax 563-589-0890
Email:
17. If IEDA needs to contact the sponsor organization with questions, should we contact the person
listed above?
LI Yes C4 No, please contact the following person:
Name: Maurice Jones Title: Economic Development Director
Address: 50 W. 13th St.
City, State & Zip Code: Dubuque, Iowa 52001
Phone: 563-589-4393
miones @cityofdubuclue.orci
Fax: 563-589-1733 Email:
If necessary, please list information on additional sponsors in an attachment.
LEDA ---- Business Financial Ass is lianc3,-3. A pprication
v , 2 1 201 3
SECTION B
Business 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.
Progressive Processing, LLC, is a wholly owned subsidiary of Hormel Foods Corporation, located in Dubuque,
owa. The plant officially opened on January 25, 2010, when it produced its first run of Hormel® Compleates®
microwave meals. Along with microwave meals, the plant also runs a line of canned chunk chicken.
Hormel Foods Corporation is a multinational manufacturer and marketer of consumer - branded meat and food
• roducts man of which are amon • the best known and trusted in the food indust The com an en'o s a stron •
reputation among consumers, retail grocers, and foodservice and industrial customers for products highly regarded for
quality, taste, nutrition, convenience, and value.
Hormel Foods and its' subsidiaries sells products in all 50 states through a direct sales force assigned to offices in,
major cities throughout the United States. Their efforts are supported by sales brokers and distributors. Hormel Foods
International (HFIC), a wholly owned subsidiary in Austin, has established numerous joint venture and license,
agreements internationally that include Australia, China, Denmark, England, Japan, Korea, Mexico, Panama, Canada,
the Philippines, Spain and other nations. HFIC exports products to more than forty countries.
The headquarters for Hormel Foods is in Austin Minnesota along with its research and development division and,
flagship plant. Company facilities that manufacture meat and food products are located in Algona, Knoxville, Osceola,
Nevada, Fort Dodge, Dubuque, and Bondurant Iowa; Atlanta, Savannah and Bremen Georgia; Wichita and Alma
Kansas; Aurora and Rochelle Illinois; Beloit, New Berlin, Baron and Sparta Wisconsin; Fremont Nebraska; Stockton,
Turlock, San Leandro, Chino, Visalia, and Vernon California. Custom manufacturing of selected Hormel Foods
products is performed by various companies that adhere to stringent corporate guidelines and quality standards. ,
With more than 19,700 employees, Hormel Foods is owned by approximately 11,400 shareholders of record.
Hormel Foods common stock is listed on the New York Stock Exchange under the ticker symbol HRL.
2. Business Structure:
0 Cooperative ri Corporation E Limited Liability Company
El Partnership 0 S- Corporation LI Sole Proprietorship
3. State of Incorporation: Delaware
4. Identify the Business' owners and percent ownership: Hormel Foods is a publicly traded corporation with,
approximately 11,500 shareholders of record.
5. Does a woman, minority, or person with a disability own the Business? El Yes No
6. List the Business' Iowa locations and the most current number of employees at each location. Progressive
Processing currently has 201 employees located in Dubuque, Iowa.,
7. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and
other affiliated entities in this figure.) Hormel Foods and subsidiaries employ approximately 19,700 employees
worldwide.
Project Information
8. Project Street Address: 1205 Chavenelle Court
Project City & Zip Code: Dubuque, 52002, Project County: Dubuque County
9. Type of Business Project:
❑ Startup
Expansion of Iowa Company
LI New Location in Iowa
10. 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.)
Hormel Foods Cor• oration 'Hormel': Pro ressive Processin s parent cam an ; no oses to expand utilization of
the Dubu
ue faciii to add caacit to manufacture two additional •roducts at the faciiit . Product 1 is an ems *n
oduct that is currentl manufactured b a 3rd •art on Hormel's behalf at a facilt in Minnesota. The aro
osal is to
relocate production of Product #1 to the Dubuque facility. Product #2 is an existing product that is currently made at
Hormel facilities in Minnesota and Nebraska. The proposal is to expand manufacturing capacity for Product #2 by
expanding production of the product to the Dubuque facility.
11.
Project Timeline (add additional ro s as needed)
Add capacity to
anufacture product #1
Add capacity to manufacture product #2
Beginning Activity Date
December 2013
December 2013
Activity Completion Date
July 2014
June 2015 (full capacity by
2017)
12. Has any part of he project started*? E] Yes
If yes, please explain.
04.4
No
* For IEDA's purposes, starting the project includes: the start of construction or rehabilitation, the purchase of a building, the execution of a lease, or
the installation of equipment to be used in the project.
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. Hormel Foods and subsidiaries compete domestically and
internationally with various companies including but not limited to ConAgra Foods, Kraft Foods, Smithfield Foods,
Oscar Mayer Foods, Cargill Inc., and Tyson Foods.
14. Will any of the current Iowa employees lose their jobs if this project does not
proceed? El Yes No
If yes, please explain why and identify those jobs as "retained jobs" in the Project Jobs Section E.
15. Is the Business actively considering
locations outside of Iowa? Yes E] No
If yes, where and what assistance is being offered? Hormel is considering negotiating improvements and installing
new equipment at the 3rd party manufacturing facility in Minnesota for Product #1. Product #2 is sold both domestically
in the US as well as throughout the world, including a very large growth in demand in the Asian market. Sales growth
projections indicate that non-US sales growth will continue to outpace US sales growth. Hormel is considering multiple
locations including possible expansion in Minnesota or Nebraska as well as opening a new facility outside the US, most
likely China, to expand manufacturing capacity for Product #2.,
16. Please identify the company project management for the project location and experience.
Mike Devine is the VP of Grocery Products Operations for Hormel Foods and has 32 years of experience with
Hormel in the food manufacturing industry. Mark Zelle is plant manager of Progressive Processing and has over
30 years of experience with Hormel. He has been the plant manager in Dubuque for the past four years and has
over 30 years of experience with Hormel.
IEDA E3Li;Eilni-3,z5s n a ti tan A pp hca
Applicant's Project Budget
1.
2.
SECTION C,
Does the Business plan to lease the facility.
Yes 1No
If yes, please provide the Annual Base Rent Payment (lease payment minus property taxes, insurance, and
operating/maintenance expenses) for three years in the budget below, and only major renovation costs your
company expects to incur. Administrative rules require that the lease be in place for a minimum of five years.
Please complete the budget below. Include only costs the company plans to incur directly:
Use of Funds Cost
Base Rent (3 years)
Tenant Improvements
Land Acquisition
•
Site Preparation
Building_ Acquisition
Building Construction
Source A
Building Remodeling $11,200,000 160,000
Mfg. Machinery & Equip. • $19,400,000
Other Machinery & Equip $800,000
Racking, Shelving, etc.
Computer Hardware
Computer Software
Furniture & Fixtures
Working Capital
Research & Development
Other
TOTAL $31,400,000
$160,000
Source B
Source C
11,040,000
Source
19,400,000
$800,000
$31,240,000
Racking, shelving and conveyor equipment used in distribution center projects only
. Please complete the chart below with proposed financing for the project (tax benefits should be reflected as indirect
financing under #5 below):
Source E
Source F
PROPOSED FINANCING
Source of Funds
Amount
Add additional lines as needed
Form of Funds
(Loan, Grant, In-
Kind, Donation, etc.
Rate and
Term
Commitment
Status
Conditions/Additional
Information
Include when funds will be
disbursed; If loan, whether
payments are a level term,
balloon, etc
Source A: IEDA (see #4 below) $160,000
Loan
0°10
50% Forgivable/50%
Repayable
Source B: Local Government $
Source C: Business $31,240,000
Source D: Other Source
Source E Other Source
$31,400,000
Source F: Other Source
TOTAL
1
4. Direct financial assistance (loans/forgivable loans) must be secured with acceptable collateral. Please
select the type of collateral your company will pledge to secure the IEDA financing, and document its value
in Attachment A5.
No collateral, funding disbursed at the end o
evocable letter of credi
Dedicated certificate of deposit
Surety bond
Mort.a.e on real estate
he 5-year contract
Explain:
Issued b Hormel Foods Cow atlon
Personal •uarantee
* The IEDA Board has the final discretion on what collateral will be accepted.
IEDA — Buliiiness Firlanc3ial AssistanCe „ApplICatiOn
5. Please complete the chart below with tax credits and other indirect financing expected for the project:
TAX CREDITS AND INDIRECT FINANCING
Source of Funds
Investment Tax Credit
Sales, Service & Use Tax Refund
Research Activities Credit (3%/10%)
Local Property Tax Exemption
Tax Increment Financing
260E Job Training Funds
In-kind Contribution
Other
TOTAL
Amount
1,842,000
495,000
114,000
1,342,000
450,173
$4,243,173
Description
6% of $30,700,000
3°. Supplemental Credit up to 5 years
paid over 5 years
job training reimbursements from the
Community College
6. There are three justifiable reasons for providing assistance. Check the box next to the reason why
assistance is needed to complete this project.
Financing Gap - A gap exists between the financing required and the financing on-hand and the provision of
tax incentives or assistance is necessary to fill the gap.
Ej Rate of Return Gap —The likely returns of the project are inadequate to motivate a company decision maker to
proceed with the project even if sufficient debt or equity can be raised to finance the project, and the project's
risks outweigh its rewards, making the provision of tax incentives or assistance necessary to reduce the
project's risks.
Location Disadvantage (Incentive) —The business is deciding between a site in Iowa ("Iowa site") and a site
in another state ("out-of-state site") for its project and the cost of completing the project at the out-of-state site
is demonstrably lower, making tax incentives or assistance necessary to equalize the cost differential between
the two sites. Note: The authority will attempt to quantify the cost differential between the sites.
7. Please provide a brief explanation of the need for assistance.
If Product #1 stays at the existing co-packer's facility in Minnesota, Hormel would have to upgrade the co-packer's
manufacturing process and facility. Hormel's analysis indicates the improvments would cost approximately $4.6M
versus $9.7M to relocate the production of Product #1 to Progressive Processing in Iowa.
Product #2 is sold both domesticaly in the US as well as throughout the world. Sales growth projections indicate
that non-US sales growth will continue to outpace US sales growth, with a very large growth in demand in the Asian
market. Hormel's analysis shows manufacturing Product #2 in China would lower shipping costs to China and the rest
of the Asian markets compared to shipping the product from the US. Approximately 2-3 years ago, for a period of time,
China did not allow product manufactured outside of China to be sold within the country. Manufacturing in China would
eliminate the risk of China imposing a shipping stoppage of Product #2.
Hormel's analysis shows the cost of production per unit for Product #2 is estimated to be 12.6% higher
manufactured in Iowa at Pro essive Processin versus the Minnesota and Nebraska facilities currentl manufacturin
the product.
E-TvA Ar-bancal ,A.35,fsistiance Appiication
Employee Benefits
SECTION D
There are three options to meeting the sufficient benefit requirement. These options are detailed in the chart
below. Please complete questions 1-3. If your company meets Option 1 or 2, no additional information is
required. If you would like to utilize Option 3, please also complete questions 4-6.
Option 3
Total Number of
Employees in
Iowa
Option 1
80% single Coverage
Option 2
50% Family coverage
Monetary Equivalent
Pay 80% of premium costs
for a standard medical plan,
single coverage.
Pay 50% of premium costs for
a standard medical plan,
family coverage.
250+
$750 maximum deductible
$1,500 maximum deductible
50-249
0-50
$1250 maximum deductible
$2500 maximum deductible
$1750 maximum deductible
$3500 Maximum deductible
Provide medical and pay the
monetary equivalent of Option
1 or Option 2 in supplemental
employee benefits.
Benefits Counted Toward
Monetary Equivalent: Medical
coverage, Dental coverage,
Vision insurance, Life
insurance, Pension, 401(k)
(company's Average
contribution, Short-/long-term
disability insurance, Child care
services, Other nonwage
compensation
. How many full-time, permanent employees does your company currently employ within the State of Iowa?
Progressive Processing, a subsidiary of Hormel Foods Corporation, currently employs 201 employees in Iowa.
2. What is the total premium cost for a standard medical plan for single employee coverage? $6,103 or $4,343
depending on the employee's election.
a. What portion of this cost is paid by the business? 84.66% or 85.03%,
b. What is the deductible associated with this plan? $400 or $1,000
What is the total premium cost for a standard medical plan for family coverage?
on the employee's election.
a. What portion of this cost is paid by the business? 83.68% or 88.33%,
b. What is the deductible associated with this plan? $800 or $2,000
4,023 or $11,581 depending
No additional information required, in this section, if your company meets the requirement for Option 1 or Option 2,
4.
benefits to full time employees?
If es, please provide the annual a
Benefit
ount offered by the business,
Dental Insurance — Family plan
Pension (Use 3-year average calculated below)
Does your company provide additional
Li Yes El N o
er employee in the chart belo
Annual amount paid by the
business •e em to
ee
Retirement Plan - i.e. 401(k) (Use 3-year average calculated below)
Profit Sharing Plan (Use 3-year average calculated below
Childcare Services
e Insurance coverage
Disability Insurance coverage
Health Savings Account (HSA) contribution
TOTAL
Business Financial Assistance Appiicatiori
8 v.212013
5.
Does the Business offer a pension
plan, 401(k) plan, and/or retirement-plan? E] Yes No
If yes, please indicate the amount contributed on a per employee basis by the Business to the plan for the last
three years. For 401(k) plans, please provide information on the company match and indicate the average annual
match per employee.
Year Ending
Average Actual Match per
Employee ($)
Three-year Average:
6. Does the Business offer a profit-sharing plan? El Yes EI
No
If yes, please indicate total amount paid out each year for the past three years and then, determine the average
annual bonus or contribution per employee for that three year period.
Year Ending
Average Actual Share per
Employee ($)
Three-year Average:
Notes:
1. A qualified plan must be offered to all full-time permanent employees.
2. If you have multiple health insurance plans, please provide information on each plan.
Hriaricial ik36tance Application
,11 2(1)1 3
Project Jobs
SECTION E
1. List the jobs that will be created and/or retained 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 jobs to be created,
include the starting and final, hourly wage rate. For retained jobs, include the current hourly wage rate.
Full-Time CREATED Jobs
Job Title
(Add additional o s as needed)
Number of
CREATED Jobs
Starting
Hourly Wage
Wage at 36 months
following the award
Maintenance Planner/Scheduler
Maintenance Engineers
Production Supervisors
Mechanics/Electricians
42.25
46.17
2
37.25
40.70
7
23.25
25.41
14
21.41
23.40
Quality Control Auditors
Accounting Clerks
8
15.30
16.72
2
14.62
15.98
Production Laborers
57
13.58
14.84
Total Full-Time CREATED Jobs
Fu Time RETAINED Jobs
91
Add additional o s as needed
Number of
RETAINED
Jobs
Current Hourly
Wage
2. Is the hourly wage rate based on a 40 hour work week, 52 weeks per year? Yes El No
If no please explain:
iESIJA — Business Ismiianiciati Assistance Appiication
u vii2ci 2013
SECTION G
Attachments
Please attach the following documents:
Al Project Plan
Please provide an executive summary for your project. This information should include, at a minimum,
expanded information about the company's products and services and any other project related information
that has not already been described in the application for financial assistance.
Please note, a traditional business plan, including an executive summary, market analysis, organization and
management structure, marketing and sales management, service and product line narrative, financial
projections, feasibility study and patent status, as well as any other relevant information, may be requested by
the Iowa Economic Development Authority to evaluate the feasibility of this project.
A2 Payroll Information (Confidential)
• Copies of the Business' Quarterly Iowa Employer's Contribution and Payroll Report for the past
year. This report should include the monthly employment totals.
A copy of the most recent payroll report for one pay period. The copy of the most recent payroll
report for one pay period must be in Excel format and include the following information:
O Company name, date of payroll and source of payroll information
O Employee name and/or employee identification number
O Current hourly wage - do not include bonuses or other benefit values
O Indicate if the employee is full time (40 hours per week, 52 weeks per year) or part time.
O A sample Excel spreadsheet can be found at
htt ://www.iowaeconom icdevelo ent.com/userdocs/docu ents/ieda/AttachmentA2-
PayrollTemplate.xls
A3 Affidavit that states the Business has not, within the last five years, violated state or federal statutes, rules,
and regulations, including environmental, worker safety regulations and antitrust laws, 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. A sample affidavit can be found at
http://www.iovvaeconomicdevelopment.com/userdocs/documents/ieda/AttachmentA3-Affidavit.doc
A4 Financial Information (Confidential, unless already publicly available) (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.
A5 Collateral documentation Of requesting direct financial assistance only)
Enterprise Zone Supplement —
EZ -1 Application Supplement for Enterprise Zone applications only
1. Enterprise Zone detail:
a. In which Enterprise Zone will this project occur (include the zone's name, number, size in acres,
and date certified)?
b. Please list any additional requirements adopted by the local Enterprise Zone Commission and
how the Business will meet each requirement
2. The following documentation must also be submitted:,
a. Legal description of the business site on which the project will occur
b. Detailed map (no larger than 11"x17") showing the business site in relation to the boundaries of the
certified Enterprise Zone
c. Proof that the local Enterprise Zone Commission meeting, during which this application was approved,
was open to the public (Le. public notice which was published and/or posted)
lEitatik — ausiniess Finianciall Assistance Application
12 i _2013
d. Meeting minutes from the local Enterprise Zone Commission meeting, during which this application was
approved
e. Resolution by the local Enterprise Zone Commission approving this application
SECTION H
Certification & Release of Information
1.
2.
3.
4.
5.
6.
Are there any judgments or court act ions
completed or pending against the applicant entity, or any current or prospective officer, principal, director, or
owner? ❑ Yes ® No
Has any current or prospective officer,
principal, director, or owner been accused or convicted of any wrongdoing or crime, other than a simple
misdemeanor? ❑ Yes ® No
Have there been any current or past
bankruptcies on the part of the applicant entity (or predecessor entities), or on the part of any current (or
prospective) officer, principal, owner or in any business dealings of current (or prospective) officers, principals, or
owners of the applicant entity? ❑ Yes ® No
In the last five years have there been, or are
there currently any investigations of potential violations of public health, safety (including workplace safety) or
environmental laws by the applicant entity, or any current or prospective officer, principal, director, or owner? ❑
Yes ® No
In the last five years have there been, or are
there currently any violations of antitrust laws by the applicant entity, or any current or prospective officer, principal,
director, or owner? ❑ Yes ® No
If yes to any of the above, please provide
additional explanation:
I hereby give permission to the Iowa Economic Development Authority (IEDA) to research the Business' history, make credit checks,
contact the Business' financial institutions, insurance carriers, and perform other related activities necessary for reasonable
evaluation of this application. I also hereby authorize the Iowa Department of Revenue to provide to IEDA state tax information
pertinent to the Business' state income tax, sales and use tax, and state tax credits claimed.
I understand that all information submitted to IEDA related to this application is subject to Iowa's Open Record Law (Iowa Code,
Chapter 22), unless specifically marked as confidential section.
I understand that IEDA reserves the right to negotiate the financial assistance.
I understand this application is subject to final approval by IEDA and the Project may not be initiated until final approval is secured.
Furthermore, I am aware that funds will not be disbursed until a contract has been executed and the appropriate terms have been
met.
I hereby certify that all representations, warranties, or statements made or furnished to IEDA 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:
"44i
For the Sponsor(s):
Signature Q n Date Signatur
i0.,�
Cye+ite v - Vice 1)(61c/ten-1- Roy D. Buol, Mayor
/1 11/4/13
Name and Title (typed or printed)
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.)
IEDA — Business Financial Assistance Application
13 v.2.1.2013
Signature
Date Name and Title (typed or printed)
IEDA 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, IEDA may initiate legal action
to recover incentives and assistance awarded to the Business.
IEE)A BusineF6 Financiai Assi:staf-ice AppliCatial v,2,41. ;2013