TriState Quality Metals LLC Contract Amendment No. 1THE CITY OF
Dui
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
band
AI -America City
r
2007 • 2012 • 2013
SUBJECT: Contract Amendment and Assignment to the State of Iowa Economic
Development Assistance Contract for TriState Quality Metals, LLC
DATE: March 11, 2014
Economic Development Director Maurice Jones recommends City Council approval of a
Contract Amendment and Assignment to the existing Economic Development
Assistance Contract by TriState Quality Metals, LLC, the City of Dubuque, and the Iowa
Economic Development Authority, allowing Wilming Investments, LLC to be included as
a party to the agreement.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
7-
Mic ael C. Van Milligen
1,,i1144 ..,
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
THE CITY OF
DUB
Masterpiece on the Mississippi
TO:
FROM:
SUBJECT:
DATE:
Dubuque
kattel
All -America City
1 r
2007 • 2012 • 2013
Michael Van Milligen, City Manager
Maurice Jones, Economic Development Director
Contract Amendment and Assignment to the State of Iowa Economic
Development Assistance Contract for TriState Quality Metals, LLC.
March 11, 2014
INTRODUCTION
This memorandum presents for City Council review and approval a resolution
authorizing the execution of Contract Amendment and Assignment to the Economic
Development Assistance Contract by TriState Quality Metals, LLC, the City of Dubuque
and the Iowa Economic Development Authority.
BACKGROUND
TriState Quality Metals, LLC is a sheet metal fabrication manufacturer formed in 2010 in
Peosta, Iowa. The company performs laser cutting of sheet metal, as well as plasma
cutting, bending, drilling, tapping, sawing and or/welding to create customized parts.
TriState Quality Metals also provides services including plating, maching, sheering, and
painting that are outsourced to other area manufactures. The company has grown from
a local customer base, to one that is regional, serving manufacturers in eastern Iowa,
northwestern Illinois, and southwestern Wisconsin. The largest customer, Rite Hite,
sells products to worldwide markets. In addition, TriState Quality Metals produces parts
for companies that ultimately sell to international manfacturers such as John Deere,
Caterpillar and Volvo.
The company plans to relocate to the Dubuque Industrial Center South to allow for
expansion of production capacity necessary for continued growth. The City plans to sell
6.903 acres of land to TriState Quality Metals through a development agreement that
will be acted on later in the meeting. The company will receive a land discount and 10
years of tax increment rebates in exchange for adding 10 new employees.
The City Council approved an Economic Development Assistance Contract for the
company to receive state benefits from the Iowa Eocnomic Development Authority on
December 16, 2013. The agreement offered an investment tax credit worth up to
$74,400 and a sales and use tax rebate of up to $72,000 for the construction of the new
facility. The agreement required a local match from the City, which will be the 10 -year
tax increment rebate, valued at approximately $580,000.
DISCUSSION
Representatives of TriState Quality Metals, LLC have requested the Contract
Amendment and Assignment to add Wilming Investments, LLC to the contract. The
Contract Amendment and Assignment states that all references to "Business" will
include TriState Quality Metals, LLC and Wilming Investments, LLC. As stipulated in
the Development Agreement with the City, Wilming Investments will own the building
and land, while TriState Quality Metals will be required to create the jobs.
RECOMMENDATION
I recommend that the City Council authorize the Contract Amendment and Assignment
to the existing Economic Development Assistance Contract by TriState Quality Metals,
LLC, the City of Dubuque, and the Iowa Economic Development Authority, allowing
Wilming Investments, LLC to be included as a party to the agreement.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
attachment
F:\USERS\Econ Dev\Tristate Quality Metals\I EDA assistance\Contract information \20140311 Contract Amendment No. 1
Memo.docx
RESOLUTION NO. 81-14
A RESOLUTION AUTHORIZING THE EXECUTION OF A CONTRACT AMENDMENT
AND ASSIGNMENT TO THE ECONOMIC DEVELOPMENT ASSISTANCE CONTRACT
BY TRISTATE QUALITY METALS, LLC, THE CITY OF DUBUQUE AND THE IOWA
ECONOMIC DEVELOPMENT AUTHORITY
Whereas, TriState Quality Metals, LLC, the Iowa Economic Development Authority, and
the City of Dubuque entered into an Economic Development Assistant Contract with an
award date of October 18, 2013; and
Whereas, TriState Quality Metals has agreed to the creation of additional jobs and a
capital investment through the construction of a new facility in Dubuque, Iowa; and
Whereas, representatives of TriState Quality Metals have requested that Wilming
Investments, LLC be added to the contract as the owner of the property and building where
the construction will take place; and
Whereas, the Iowa Economic Development Authority has prepared a Contract
Amendment and Assignment where all references to the business in the original contract
now include TriState Quality Metals, LLC and Wilming Investments, LLC; and
Whereas, the Iowa Economic Development Authority requires execution of the Contract
Amendment and Assignment by TriState Quality Metals, LLC, Wilming Investments, LLC,
the City of Dubuque, and the Iowa Economic Development Authority.
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 and the City Manager is
hereby directed to submit the Contract Amendment and Assignment to the Economic
Development Assistance Contract to the Iowa Economic Development Authority together
with such documents as may be required.
Passed, approved, and adopted this 17th day of March, 20 f4.
Attest:
Ke n . Firnstahl, CitClerk
441
Roy D. Buol, Mayor
F:\USERS\Econ Dev\TriState Quality Metals\IEDA assistance\Contract information \20140311 Resolution on City Council contract.docx
CONTRACT AMENDMENT AND ASSIGNMENT
BUSINESS:
MASTER CONTRACT #:
FUNDING AGREEMENT#:
AMENDMENT #:
EFFECTIVE DATE:
TriState Quality Metals, LLC
14 -TC -011
14-HQJTC-008
One
February 25, 2014
THIS CONTRACT AMENDMENT is made by and between the Iowa Economic
Development Authority, (hereafter "IEDA"), 200 East Grand Avenue, Des Moines, Iowa 50309,
and TriState Quality Metals, LLC (Recipient), 8673 Kapp Dr., Peosta, IA 52068, and the City of
Dubuque (Community), 50 W. 13th Street, Dubuque; iA 52001-d805
WHEREAS, Business, and IEDA executed Contract # 14 -TC -011 (the "Contract");
WHEREAS, the Business requested to add Wilming Investments LLC, as a party to the
contract;
WHEREAS, on February 25, 2014, the Iowa Economic Development Board approved the
proposed amendment.
NOW, THEREFORE, TriState Quality Metals, LLC, Wilming Investments, LLC and IEDA agree
as follows:
1. Amendments to Contract. The Contract is amended as follows:
a) All references to Business now include TriState Quality Metals, LLC and Wilming
Investments, LLC.
Except as otherwise revised above, the terms, provisions, and conditions of Contract Number
14 -TC -011 remain unchanged and are in full force and effect.
This section intentionally left blank. Signature page follows.
FOR TriState uality Metals, LLC:
BY: Vv
4AN/jr
Sig re
Gary Wilming, Member
Typed Name and Title
Date
FOR WilmiInvestments, LLC:
BY:
Signa, ^.
W
Gary Wilming, Member
Typed Name and Title
Date
FOR City of Du
BY:
ek
Te
Signatur
Roy Buol, Mayor
Typed Name and Title
-6P//
Date
FOR THE IOWA ECONOMIC DEVELOPMENT AUTHORITY:
BY:
Deborah V. Durham, Director
Date
Contract Amendment
Page 2 of 2
March 4, 2014
Phil Wagner
City of Dubuque
50 W. 13th Street
Dubuque, IA 52001
Hi Phil
8673 Kapp Dr
Peosta, IA 52068
(Office) 563-582-7400
(Fax) 563-582-7409
The attached IEDA amendment is to add Wilming Investments, LLC to the state development
agreement between TSQ Metals, the City of Dubuque and the State of Iowa. As you will recall,
Wilming Investments will own the land and building.
Please have Mayor Roy Buol sign this amendment on behalf of the city and forward the original
to the following address. Benton will send back a copy of the amendment with all signatures
after the state signs it.
Iowa Economic Development Authority
Attn.: Benton Quade
200 East Grand Avenue
Des Moines, IA 50309
Thanks
Kenny LeGrand, CPA/MBA
Controller, TriState Quality Metals, LLC
(p) 563-582-7400