Green Industrial Supply, Inc._Amending State Contract Copyright 2014
City of Dubuque Consent Items # 8.
ITEM TITLE: Green Industrial Supply, Inc. - Amending State Contract
SUMMARY: City Manager recommending approval of an amendment to a contract with
the Iowa Economic Development Authority for Iowa Values Funds
Financial Assistance benefits on behalf of Green Industrial Supply, Inc.
RESOLUTION Approving an Amendment to the Economic Development
Financial Assistance Contract by and among Green Industrial Supply, Inc.,
the City of Dubuque, and the Iowa Department of Economic Development
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s)
ATTACHMENTS:
Description Type
❑ Green Industrial Supply-Amend State Contract-MVM Memo City Manager Memo
❑ Staff Memo Staff Memo
❑ Contract Amendment Supporting Documentation
❑ Resolution Resolutions
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amendment to State of Iowa Direct Financial Assistance Contract for
Green Industrial Supply, Inc.
DATE: March 11, 2015
Economic Development Director Maurice Jones recommends City Council approval of
an amendment to a contract with the Iowa Economic Development Authority for Iowa
Values Funds Financial Assistance benefits on behalf of Green Industrial Supply, Inc.
The amendment extends the time period for job creation, which consequently extends
the maintenance period of those jobs.
The project completion date has been extended from August 31, 2014 to August 31,
2015. The Maintenance Period Completion Date has been extended from August 31,
2016 to August 31, 2017. All other terms, provisions, and conditions of the contract
remain unchanged.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael 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
Dubuque Economic Development Department
THE CITY OF 50 West 13th Street
All-AmericaCitY Dubuque,Iowa 52001-4864
DUB36kE1 ' Office(563)589-4393
TTY(563)690-6678
® http://www.cityofdubuque.org
Masterpiece on the Mississippi 200.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Amendment to State of Iowa Direct Financial Assistance Contract for
Green Industrial Supply, Inc.
DATE: March 5, 2015
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing an
amendment to a contract with the Iowa Economic Development Authority (IEDA) for Iowa
Values Funds (IVF) Financial Assistance benefits on behalf of Green Industrial Supply, Inc.
The original contract is attached.
BACKGROUND
Green Industrial Supply, Inc. constructed a 140,000 square foot office/distribution and
light manufacturing facility in the Dubuque Industrial Center West. The site is on
Innovation Drive across the street from IWI Motor Parts.
In August 2011, the City Council authorized submittal of an application to IEDA for
financial assistance from the Iowa Values Fund for the High Quality Jobs Program
(130% of median county income). The state approved an award of funds on August 18,
2011. The attached is an amendment to this contract.
DISCUSSION
At the request of the Company, the State has agreed to extend the time period for job
creation, which consequently also extends the maintenance period of those jobs.
The project completion date has been extended from August 31, 2014 to August 31,
2015. The maintenance Period Completion Date has been extended from August 31,
2016 to August 31, 2017. All other terms, provision, and conditions of the contract
remain unchanged.
RECOMMENDATION/ ACTION STEP
I recommend the City Council adopt the attached resolution, approving the financial
assistance contract amendment between IEDA and Green Industrial Supply, Inc.
RESOLUTION NO. 78-15
APPROVING AN AMENDMENT TO THE ECONOMIC DEVELOPMENT FINANCIAL
ASSISTANCE CONTRACT BY AND AMONG GREEN INDUSTRIAL SUPPLY,
INC., THE CITY OF DUBUQUE, AND THE IOWA DEPARTMENT OF ECONOMIC
DEVELOPMENT
Whereas, Green Industrial Supply, Inc. (Green Industrial) and the City of
Dubuque (City) entered into an Economic Development Financial Assistance Contract
(the Contract) with the Iowa Economic Development Authority (IEDA) for the expansion
of Green Industrial's operations in Dubuque, Iowa; and
Whereas, Green Industrial has requested an extension of the Project Completion
Date in the Contract from August 31, 2014 to August 31, 2015 and
Whereas, the IEDA Board approved an extension of the Project Completion Date
to August 31, 2015; and
Whereas, the parties now desire to amend the Contract as set forth in the
attached Contract Amendment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Contract Amendment is hereby approved.
Section 2. The Mayor is hereby authorized and directed to execute and the City
Manager is hereby directed to submit the Contract Amendment to the Iowa Economic
Development Authority together with such other documents as may be required.
Passed, approved, and adopted this 16th day of March, 2
Attest:
Trish L. Gleason, Assistant City Clerk
Roy D. Buol, Mayor
CONTRACT AMENDMENT
RECIPIENT: Green Industrial Supply, Inc.
CONTRACT NUMBER: 12-IVF/TC-011
AMENDMENT NUMBER: One
EFFECTIVE DATE: January 16, 2015
THIS CONTRACT AMENDMENT is made by and between the IOWA ECONOMIC
DEVELOPMENT AUTHORITY f/k/a IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT,
(hereafter "IEDA"), 200 East Grand Avenue, Des Moines, Iowa 50309, an agency of the State of
Iowa, Green Industrial Supply, Inc. ("Recipient"), 10467 Hwy. 52 N, Dubuque, IA 52001, and
the City of Dubuque ("Community"), City Hall, 50 West 13th St., Dubuque, IA 52001.
WHEREAS, the Recipient requested an extension of the Project Completion Date, and
WHEREAS, the IEDA BOARD approved the Recipients' request, effective as of the
Effective Date stated above, and
NOW, THEREFORE, the Contract referenced above is amended as follows:
1. REVISION ARTICLE 2 "DEFINITIONS."
"Project Completion Date" means the date as stated in Exhibit D, Job Obliqations-3
years from the Award Date by which the Recipient must complete the Project.
2. REVISION OF EXHIBIT D, "JOB OBLIGATIONS." Exhibit D is amended as follows
to revise the Project Completion and Project Maintenance Dates. Details of this
change are reflected in the attached Revised Exhibit D which is hereby incorporated
by this reference and made a part of this Contract Amendment.
Except as otherwise revised above, the terms, provisions, and conditions of Contract Number
12-IVF/TC-011 remain unchanged and are in full force and effect:
FOR RECIPIENT: FOR IEDA:
SIGNATURE, Dtelittits-----
V, T. S�.)es
Deborah V. Durham, Director
PRINT NAME, TITLE Date
FOR COMMUNITY:
SIGNATU{' E, Date
Roy D. Buol, Mayor
PRINT NAME, TITLE
EXHIBIT D — JOB OBLIGATIONS
REVISED January 2015
Recipient: Green Industrial Supply, Inc.
Community: City of Dubuque
Contract Number: 12-IVF/TC-011
This Project has been awarded benefits from the 130% Component and the High Quality Jobs (HQJP) tax credit program. The
charts below outline the contractual job obligations related to this Project.
Data in the "Employment Base" column has been verified by the Department and reflects the employment characteristics of the
facility receiving funding before this award was made. Jobs to be retained as a part of this Project must be included in these
calculations.
Data in the "Jobs To Be Created" column outlines the new full-time jobs (including their wage characteristics) that must be added to
the employment base and, if applicable, statewide employment base as a result of this award.
At the Project Completion Date and through the Maintenance Period Completion Date, the Business must achieve (at a minimum)
the numbers found in the "Total Job Obligations" column.
mIJOB ® M I S F
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Total employment at project location
30
16
46
Average Wage of total employment at project location
$16.57
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Qualifying wage threshold requirement (per hr)
$20.52
Sufficient Benefits Credit per hr)
$2.05
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Number of jobs at or above qualifying wage w/benefits
8
11
19
Average wage of jobs at or above qualifying wage
w/benefits
$27.98
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Notes re: Qualifying Wages
1. If the Sufficient Benefits Credit was added to the base wage to meet program wage threshold
eligibility requirements, then any reduction in Sufficient Benefits Credit during the life of the
Contract must be compensated for with salary to ensure that the Qualifying Wage rates are met.
2. Bonus or commission payments are not included when calculating the Qualifying Wage rate.
3. If the Recipient uses or proposes to use a non-standard work week (8 hours a day, 5 days a
week, 52 weeks a year including liolidays, vacation and other paid leave), check the box below
and describe that alternative schedule. The alternative schedule must meet the requirements of
261 IAC 173.2.) By not checking the box and not providing the alternative schedule, IDED
will consider "Full-time Equivalent (FTE) Job" to mean the employment of one person for 8
hours per day for a 5 -day, 40 -hour workweek for 52 weeks per year, including paid holidays,
vacations and other paid leave.
❑ The Recipient shall use an alternative work week for purposes of its employees described in
the Contract. The alternative work week is as follows: [description].
Fmt. Approved 11/09