Medline Industries_CEBA ApplicationTHE CITE' OF
DUB ~ E
Masterpiece on the Mississippi
MEMORANDUM
October 26, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Community Economic Betterment Account (CEBA) Application for
Medline Industries, Inc.
Medline Industries, Inc., a medical supply manufacturer with customer service
operations in Dubuque, has announced its intent to expand its Dubuque operations.
The Company will retain 232 jobs and create 75 new positions as a part of this
expansion process.
Economic Development Director David Heiar recommends City Council approval of a
resolution authorizing the submission of a $480,000 Community Economic Betterment
Account (CEBA) program application to the Iowa Department of Economic Development
on behalf of Medline Industries, Inc. City assistance as public match for the CEBA
application is required, and is proposed to amount to $2,545,800, consisting of a Land
Acquisition Grant ($625,000) and an 8-year TIF rebate ($1.92 million).
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~' V
C~
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
THF.. CITY dF ~"J,..
DT B ~~~ E MEMORANDUM
Masterpiece on the Missi.sstppi
October 24, 2007
TO: Michael Van Milligen, City Manager
FROM: David Heiar, Economic Development Director ,
SUBJECT: Community Economic Betterment Account (CEB )Application for
Medline Industries, Inc.
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing
the submission of a Community Economic Betterment Account (CEBA) program application
to the Iowa Department of Economic Development on behalf of Medline Industries, Inc., a
medical supply manufacturer with customer service operations in Dubuque. The CEBA
application is attached.
BACKGROUND
Medline Industries, Inc. has announced its intent to expand its operations in Dubuque. The
Company will retain 232 jobs and create 75 new positions as a part of this expansion
process.
Medline is a manufacturer and distributor of medical supplies founded in 1966 and
headquartered in Mundelein, Illinois. It is the nation's largest privately held national
manufacturer and distributor of healthcare supplies and services. Medline
manufactures and distributes more than 100,000 medical products. The company has
more than 700 dedicated sales representatives nationwide and ships products from
approximately 30 distribution centers. Medline sells to all types of medical facilities
including hospitals, extended care facilities, surgery centers, commercial laundries,
home care dealers, home care agencies and physician offices.
Medline's project includes construction of a new office building on 10.43 acres in the
Dubuque Industrial Center West, approximately 62,000 square feet in size, which will
be used to provide customer service support to Medline customers and some inside
sales activity. The building is expected to be completed by the end of 2008.
The CEBA application on behalf of the company will provide financial assistance to enable
the company's expansion in Dubuque. As required by the CEBA program, the application
requires a commitment of City funds to the project.
DISCUSSION
Medline Industries, Inc. will commit to employ 75 new employees averaging over $27,000
per year plus benefits. The Company will be investing approximately $8.5 million in
construction, computer equipment, and furniture and fixtures.
To assist this project, Medline Industries, Inc. has requested a forgivable CEBA loan of
$480,000. City assistance as public match for the CEBA application is required, and is
proposed to amount to $2,545,800, consisting of a Land Acquisition Grant ($625,000) and
an 8 year TIF rebate ($1.92 million).
RECOMMENDATION
recommend that the City Council authorize the submission of a CEBA application for a
$480,000 partially forgivable loan on behalf of Medline Industries, Inc. with a
commitment of local matching funds.
This project is consistent with the City's goals to help local businesses expand in the
community, increase the number of good paying jobs and further diversify our economic
base.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
attachments
F:\USERS\DHeiarWledline\CEBA APP memo.doc
RESOLUTION NO. 521-07
A RESOLUTION AUTHORIZING THE FILING OF A COMMUNITY
ECONOMIC BETTERMENT ACCOUNT (CEBA) APPLICATION ON
BEHALF OF MEDLINE INDUSTRIES, INC.
Whereas, Medline Industries, Inc. has proposed the expansion of its operations
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 75 new jobs for area residents; and
Whereas, the Iowa Department of Economic Development's Community
Economic Betterment Account (CEBA) was 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 CEBA
program.
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 Community
Economic Betterment Account program on behalf of Medline Industries, Inc. is hereby
approved.
Section 2. That the local match of identified in the application as $2,545,800
consisting of an acquisition grant and TIF rebates for increased building valuation
estimated at $6.5 million to the company is hereby approved, subject to the CEBA
application approval.
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 5th day of November, 2007.
Roy D. B ol, Mayor
Attest:
Jeanne Schneider, City Clerk
F:\USERS\DHeiarWfedline\Resolution approving CEBA app.doc
i ~~~
Michael Tramontina, Director
~' ~ ~~. ~ c h a n g i n g~ 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. iowalifechan_~g.com
Updated: April 19, 2007
Instructions
1. All applicants shall complete Section A of the Application for Financial Assistance and attach o~ those section(s) for the
program(s) to which the applicant is applying.
Program Download and Complete
Community Economic Bettermeant Account (CEBA) Section B
Enterprise Zone Program (EZ) Section C
High Quality Job Creation Program (HQJC) Section D
Entrepreneurial Ventures Assistance Program (EVA) Section E
Value Added Agricultural Products & Processes
Financial Assistance Program (VAAPFAP) Section F
Economic Development Set-Aside Program (EDSA) Section G
2. Please visit the IDED Web site, httpa/www.iowalifechanging.comlapplications/bus_devlindex.html orcontactIDED 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). httpa//www4.legis.state.ia,us/IAChtmll261.htm
4. Only typed orcomputer-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.
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 IDED:
• 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 a-mail these documents to
businessfinance a(~,iowalifechanging.com in addition to submitting the original plus one copy.
Business Finance Team
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines IA 50309
Application Due Dates
IDED Board Meetin A lication Due Date
A ril 19, 2007 March 26, 2007
Ma 17, 2007 Aril 23, 2007
June 13, 2007 Ma 21, 2007
Jul 19, 2007 June 25, 2007
Au ust 16, 2007 Jul 23, 2007
Se tember 20, 2007 Au ust 27, 2007
October 18, 2007 Se tember 24, 2007
November 15, 2007 October 22, 2007
December 20, 2007 November 26, 2007
* EVA applications will be acted upon every other month starting in March.
Section A -Applicant & Project Information
Public Records Policies
Information Submitted to IDED. The Iowa Department of Economic Development (IDED) is subject to the Open Records law
(Iowa Code, Chapter 22). Treatment of information submitted to IDED 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. IDED 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 IDED 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 IDED:
• Trade secrets [Iowa Code §22.7(3)]
• Reports to governmental agencies which, if released, would give advantage to competitors and serve no public purpose.
[Iowa Code §22.7(6)]
• Information on an industrial prospect with which the IDED is currently negotiating. [Iowa Code §22.7(8)]
• Communications not required by law, rule or regulation made to IDED by persons outside the government to the extent that
IDED 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 §22.7(18)]
Information supplied to IDED as part of this application that is material to the application andlor 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 IDED's administrative rules relating to public
records are available from the Department upon request or at
http~//www.iowalifechanging.com/downloads/chap169openrecords.doc.
Section A -Applicant & Project Information
Applicant Information
1. Name of Business: Medline Industries, Inc
Address: One Medline Place
City, State & Zip Code: Mundelein, Illinois 60060
Contact Person: Alex Liberman Title: General Counsel
Phone: 847 949-3015 Fax: 847 949-2633 Email: aliberman@medline.com
2. SIC or NAICS Code: SIC 3391; NAICS 424990
3. Federal ID Number: 36-2596612
Does the Business file a consolidated tax return under a different tax ID number? ^ Yes ®No
If yes, please also provide that tax ID number:
4. Is the contact person listed above authorized to obligate the Business? ^ Yes ®No
If no, please provide the name and title of a company officer authorized to obligate the Business:
James Abrams, Chief Operating Officer
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
anolied for. more than one soonsor may be necessary.
Program Acceptable Sponsor
CEBA Cit or Count or Communit Colle a in which the Project Site is Located
EZ Local Enter rise Zone Commission
HQJC Cit or Count in which the Project Site is Located
EVA City or County in which the Project Site is Located; Local Development Entity; John Pappajohn Entrepreneurial
Center; a Small Business Development Center; Business Accelerator; or similar entit
VAAPFAP Cit or Count in which the Project Site is Located or Local Develo ment Entit
EDSA Cit or Count in which the Project Site is Located
1. Sponsor Organization: City of Dubuque
Official Contact (e.g. Mayor, Chairperson, etc.): David J. Heiar Title: Economic Development Director
Address: 50 W. 13th Street Dubuque, IA 52001
City, State & ZIP Code:
Phone: 563 589-4393 Fax: 563 589-1733 E-mail: dheiara(~.cityofdubugue.org
2. If IDED needs to contact the sponsor organization with questions, should we contact the person listed above?
® Yes ^ No, please contact the following person:
Name: Title:
Address:
City, State & ZIP Code:
Phone: Fax: E-mail:
If necessary, please list information 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 (IDED) 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 IDED 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 IDED 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 IDED 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 IDED reserves the right to negotiate the financial assistance. Furthermore, 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 IDED 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:
~v-Zz-~~
Signature Date
~~~~ rh~e~'~ua~, ~t°~tP~ C~vks~C
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 Phis if a signature from the local Enterprise
Zone Commission is required in addition to fhe signature from the Mayor of the sponsoring city.)
Signature
Date
Name and Title (typed or printed)
IDED 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, IDED may initiate legal action to recover
incentives and assistance awarded to the Business.
Section A -Applicant & Project Information
Project Information
Provide a brief description and history of the Business, Include information about the Business' products or services
and its markets and/or customers.
Medline is a manufacturer and distributor of medical supplies founded in 1966. It is the nation's largest privately held
national manufacturer and distributor of healthcare supplies and services. Medline manufactures and distributes more
than 100,000 medical products. The company has more than 700 dedicated sales representatives and ships products
from approximately 30 distribution centers. Medline sells to all types of medical facilities including hospitals, extended
care facilities, surgery center, commercial laundries, home care dealers, home care agencies and physician offices.
Business Structure:
^ Cooperative ^ Corporation ^ Limited Liability Company ^ Not for Profit
^ Partnership ®S-Corporation ^ Sole Proprietorship
State of Incorporation: Illinois
3. Identify the Business' owners.
Medline is an S-Corporation ownd by approximately 70 shareholders, most of whom are actively employed at the
company.
Does a woman, minority, or person with a disability own the Business? ^ Yes ®No
If yes, is the business certified as a Targeted Small Business? ^ Yes ®No
4. List the Business' Iowa Locations and the Current Number of Employees at each Location.
4131 Westmark Drive, Dubuque, Iowa 52002 232 employees
5. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and other
affiliated entities in this figure.)
Worldwide employment is approximately 5,500.
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.)
Project includes construction of a new office building, approximately 62,000 sgaure feet in size, which will be used to
provide customer service support to Medline customers and some inside sales activity. We expect the building to be
completed by the end of 2008.
Project Address (Street Address, City, and County):
Lot # 4 Second Addition, Chavenelle Rd. Dubuque, IA Dubuque County
Type of Business Project:
^ Startup ®Expansion of Iowa Company ^ New Location in Iowa
^ Relocation from another State
Please identify the management at the project location and his/her/their experience.
The Medline manager responsible for operations at this facility is Patty Long. She is a long-term Medline employee
and has a great deal of experience managing customer service activity.
Section A -Applicant & Project Information
10. Has any part of the project started? ^ Yes ®No
If yes, please explain.
Section A-Applicant & Project Information
11 Project Budget:
AMOUNT BUDGETED
Use of Funds Gost Source A Source B Source C Source D Source E Source F Source G Source
H
Land Ac uisition 51,251,600 $ $ $625,800 $625,800 $ $ $ $
Site Pre aration 5 $ $ $ $ $ ___ _
~ ___
$ $
Buildin Ac uisition $ $ $ $ $ $ $ $ $
Building Construction $6,500,000 $480,000 $ S $6,020,000 $ $ $ $
Buildin Remodelin $ $ $
_..___ $ $ $ $ $
Mfg_Machinery & Equip. $ $ $ $ ___ $ $ $ $ $
Other Machine & E ui . _........_.....__.......
5
~......._....._ __ _ __ __
_
$
$ __-I
$ _.__.
$
$
-
$
$
$
Rackin , Shelvin , etc. _ _ $__ $ $ _ __ $ $ --
$ $ $ $
Com uler Hardware 552,590 $ $ $
- $52,590
- $ $ _
$ $
Com~uter Software
$25,600
$
$
$
$25,600
$
$ -
$ -
$
Furniture & Fixtures $35U.U00
----- $
------...___...__ $
__
_ S $350,000 $ $ $ $
Workins Ca ital $ $ ~ $ $ $ S $ $
Research & Develo meni $ _ _ $ _ $ $ __ $ $ $ $ $
Job Trainin _
$291,000 $ $200,000 $ S97,000 $ $ $ $
_
TOTAL
=----.._._......._._.__._..._. $8,476,790
__ _1 $480,000
--- _ _ _ __ -_-- $200,000 '
--- -l $625,800"(see
note below
_--- _ _ ~. $7,170,990
-__...---._.......- $
_._._....1 $
-. _
- . $ I
........ .............--------t $
in addition, real estate tax rebates will be received on the property under a 1-IF program. These rebates are expected to total $1,920,000 over the next eight years. The
rebates are an important factor in Medline's decision to undertake this project, since similar tax rebates are also offered on the alternative location in Galena, Illinois (see
Question # 17).
~ Racking, Shelving and Conveyor Equipment used in Warehouse or Distribution Center Projects
Does the Business plan to lease the facility? ^ Yes ®No If yes, please provide the Annual Base Rent Payment (lease payment minus property taxes, insurance, and
operatinglmaintenanceexyenses) and the length of the lease agreement.
PROPOSED FINANCING -
Source of Funds
(List tax benefits separately; not
as a source of funds.) Amount Form of Funds
(Loan, Grant, In-Kind Donation, etc.) Rate Term Conditions (Additional Information
Include when funds will be disbursed; if loan, whether
payments are a level term, balloon, etc.
Source A:
iDED $480,OOU _ Interest free loan, forgiveable loan
_
Source B Other State (e.g.
Communit Colle e, DOT, etc.
S200,000
State training grant __
Source C: Local Government $625,800` (see note
abovei Grant, T1F
Source D: Business ___ $7,170,990 From com any operatin funds
Source E: Other Private Sources
$ _ _
Section A -Applicant & Froject Information
Source F: S
Source G: -_--- ~ -------------
~__~_._
_-~.-
~--
Source H: ~ __
__.- _.~ _. - - - -- - -- ~ _ .._ _- - - __-- -
m --- -
~ -
TOTAL
$8,476,790
~ _ ~ i
_,,,.. r
-~ ~
~
, *. F:
-
- ~; ~.
i. ~ a ~ 3 Vii.. ~s t... :sue td : s ~*
Please list below any tax benefits (e.g. Investment Tax Credit, Sales Tax Refund, R&0'fax Credit, New Jobs Tax Credit, Property Tax ExemptionlAbatement, etc.) that the Business expects
to receive and included the estimated value of each tax benefit:
Section A -Applicant & Project Information
12. Employee Benefits: Please identify all employee benefits provided by and paid for (in full or in part) by the Business.
Employee Benefits Total Annual Cost Portion of Total Plan Provisions
Provided by the (show on a per Annual Cost Paid (Include deductibles, coinsurance %, office visit
Business employee basis) by the Business* co-payments, annual out-of-pocket maximums,
face amounts, etc.)
`~' Em to ee Famil Em to ee Famil i _ ~- `^ ~ '~R ~ `~ ~'~-~
~_ .,
See attached sheets for plan details.
Medical/Health 4,013.92 13,647.40 86% 74%
Insurance
Dentallnsurance 331.32 1,119.56 49% 55%
Vision Insurance 105.24 266.04 0% 0%
Life Insurance 100%
Short Term Disability 100%
(STD)
Long Term Disability 100%
(LTD)
" If the business's plan is self-insured, please use the amount paid by the business for costs associated with employee and family coverage
during the past three years and then, determine the business' average annual contribution per employee for that three year period.
Does the Business offer a pension plan, 401(k) plan, and/or retirement-plan? ® Yes ^ 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 information on the company match and indicate the average annual match per employee (show average as a
percentage of salary).
Average annual salary: $27,788.80
Employee contribution at 6%: 1,667.33
Company match: 1,500.00
Match as percent of salary: 5.40%
Does the Business offer aprofit-sharing plan? ^ Yes ® 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.
Does the Business offer child care services? ^ Yes ® No
Child care services include child care services on-site at the facility in which the project will occur oroff-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 10
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.
This facility will provide administrative support to Medline customers on a national basis. The sales activity that takes
place there will also involve customers all over the U.S. This project should not have any impact on Medline's
competitors located in Iowa.
14. Will any of the current Iowa employees lose theirjobs if this project does not proceed in Iowa?
® Yes ^ No
If yes, please explain why and identify those jobs as "retained jobs" in the following question.
As an alternative to this project, Medline considered a location in Galena, Illinois. While current employees would be
offered employment at the Galena site, it is likely some number of current employees would choose not to accept the
transfer offer.
Section A -Applicant & Project Information
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 startin hourly wage rate.
Job Title Skills, Education, or Experience
Required Number of
Jobs Retained (R) or
Created C Starting or Current Hourly
Wage Rate
Year 1 of the Project
AIR Representative 1 R $ 17.35
A/R Specialist 2 R $ 14.83
A/R Supervisor 1 R $ 22.50
Account Service Rep 4 R $ 14.00
Account Service Rep 4 R $ 15.00
Account Service Rep 4 R $ 16.92
Account Service Rep 1 R $ 17.36
Account Service Rep 6 R $ 17.57
Account Service Rep 8 R $ 17.60
Account Service Rep 1 R $ 17.64
Account Service Rep 1 R $ 18.13
Account Service Rep 2 R $ 18.19
Account Service Rep 3 R $ 18.21
Account Service Rep 1 R $ 18.25
Account Service Rep 1 R $ 18.29
Account Service Rep 1 R $ 18.63
Account Service Rep 1 R $ 18.75
Account Service Rep 1 R $ 18.79
Account Service Rep 1 R $ 18.84
Account Service Rep 2 R $ 18.89
Account Service Rep 2 R $ 18.90
Account Service Rep 1 R $ 18.92
Account Service Rep 1 R $ 19.27
Account Service Rep 1 R $ 19.31
ASR Lead 2 R $ 19.16
CCI Specialist 1 R $ 12.85
CSR Lead 6 R $ 15.76
Customer Service Clerk 2 R $ 16.27
Customer Service Clerk 1 R $ 16.31
Customer Service Clerk 1 R $ 16.32
Customer Service Manager 1 R $ 18.34
Customer Service Manager 1 R $ 40.53
Customer Service Rep 20 R $ 11.40
Customer Service Rep 1 R $ 11.65
Customer Service Rep 1 R $ 11.66
Customer Service Rep 2 R $ 11.68
Customer Service Rep 1 R $ 11.74
Customer Service Rep 4 R $ 11.75
Customer Service Rep 2 R $ 11.76
Customer Service Rep 1 R $ 11.77
Customer Service Rep 1 R $ 11.78
Customer Service Rep 2 R $ 11.82
Customer Service Rep 2 R $ 11.83
Customer Service Rep 2 R $ 11.84
Customer Service Rep 3 R $ 11.87
Customer Service Rep 1 R $ 11.88
Customer Service Rep 2 R $ 11.90
Customer Service Rep 1 R $ 11.92
Section A -Applicant & Project Information 12
Customer Service Rep 1 R $ 11.93
Customer Service Rep 1 R $ 11.94
Customer Service Rep 1 R $ 11.95
Customer Service Rep 1 R $ 11.98
Customer Service Rep 1 R $ 12.25
Customer Service Rep 1 R $ 12.38
Customer Service Rep 1 R $ 13.49
Customer Service Rep 1 R $ 13.55
Customer Service Rep 1 R $ 13.93
Customer Service Rep 1 R $ 16.36
Customer Service Rep 1 R $ 18.00
Customer Service Supv 1 R $ 18.99
Customer Service Supv 1 R $ 19.71
Customer Service Supv 1 R $ 19.90
Customer Service Supv 2 R $ 20.47
Customer Service Supv 2 R $ 22.79
Customer Service Supv 1 R $ 24.20
Customer Service Supv 1 R $ 25.96
Data Entry Clerk 3 R $ 10.50
Data Entry Clerk 1 R $ 10.88
Data Entry Clerk 1 R $ 10.92
Data Entry Clerk 1 R $ 11.04
Data Entry Clerk 1 R $ 11.24
Data Entry Clerk 1 R $ 11.83
Data Entry Clerk 1 R $ 12.10
Data Entry Clerk 1 R $ 12.34
Data Entry Clerk 1 R $ 12.53
Data Entry Clerk 1 R $ 12.92
Data Entry Clerk 1 R $ 13.18
Data Entry Clerk 1 R $ 14.12
Data Entry Clerk 1 R $ 15.82
Dedicated Service Rep 10 R $ 14.93
Dedicated Service Rep 1 R $ 15.56
Dedicated Service Rep 1 R $ 15.58
Dedicated Service Rep 1 R $ 15.59
Dedicated Service Rep 1 R $ 15.62
Dedicated Service Rep 1 R $ 15.63
Dedicated Service Rep 4 R $ 15.64
Dedicated Service Rep 3 R $ 15.65
Dedicated Service Rep 1 R $ 15.67
Dedicated Service Rep 1 R $ 16.32
Dedicated Service Rep 1 R $ 16.33
Dedicated Service Rep 1 R $ 16.58
Dedicated Service Rep 1 R $ 16.95
Dedicated Service Rep 1 R $ 17.07
Dedicated Service Rep 2 R $ 17.37
Dedicated Service Rep 1 R $ 17.73
Dedicated Service Rep 1 R $ 17.87
Dedicated Service Rep 1 R $ 18.08
Dedicated Service Rep 1 R $ 18.55
Dedicated Service Rep 1 R $ 18.60
Director Customer Service 1 R $ 58.65
Dist Account Service M r 1 R $ 14.11
Dist Account Service Mgr 1 R $ 15.00
Distributed Service Mgr 3 R $ 12.98
Section A -Applicant & Project Information 13
Distributed Service Mgr 2 R $ 14.13
Distributed Service Mgr 1 R $ 15.00
Distributed Service Mgr 1 R $ 15.68
Distributed Service Mgr 2 R $ 15.69
Distributed Service Mgr 3 R $ 15.71
DSR Lead 1 R $ 18.54
DSR Lead 1 R $ 19.17
H.R. Representative 1 R $ 24.81
Inside Sales Manager 1 R $ 62.12
Inside Sales Rep 4 R $ 14.08
Inside Sales Rep 3 R $ 14.42
Inside Sales Rep 1 R $ 16.88
Inside Sales Rep 1 R $ 18.42
Inside Sales Rep 1 R $ 18.47
Inside Sales Rep 1 R $ 21.49
Inside Sales Rep 1 R $ 22.37
Inside Sales Rep 1 R $ 23.91
Inside Sales Rep 1 R $ 24.00
Inside Sales Rep 1 R $ 26.74
Inside Sales Rep 1 R $ 28.49
Inside Sales Rep 1 R $ 43.76
Inside Sales Rep 1 R $ 46.89
Inventory Analyst 2 R $ 15.58
DSM Supervisor 1 R $ 23.08
Office Manager 1 R $ 17.19
PC Support I 1 R $ 17.98
QA Clerk 1 R $ 16.50
QA Specialist 2 R $ 15.05
Return Goods Supervisor 1 R $ 18.19
Training Coordinator 1 R $ 18.17
Training Coordinator 1 R $ 18.19
Training Specialist 1 R $ 18.26
Training Specialist 1 R $ 28.35
A/R Representative 1 C $ 15.88
Account Service Rep 4 C $ 16.92
Customer Service Rep 4 C $ 11.40
Dedicated Service Rep 4 C $ 14.93
Dist Account Service Manager 10 C $ 15.00
Inside Sales Rep 2 C $ 23.25
Year 1 Subtotal 257 _
__
Year 2 of the Pro'ect$2,
A/R Representative 1 C $15.88
Account Service Rep 4 C $16.92
Customer Service Rep 4 C $11.40
Dedicated Service Rep 6 C $14.93
Dist Account Service Manager 8 C $15.00
Inside Sales Rep 2 C $23.25
Year 2 Subtotal 25 ~'
; ;, f~: "'
_ ~ _ ' -` .
_
Year 3 of the Project
A/R Representative 1 C $15.88
Account Service Rep 4 C $16.92
Section A -Applicant & Project Information 14
Customer Service Rep 4 C $11.40
Dedicated Service Rep 6 C $14.93
Dist Account Service Manager 8 C $15.00
Inside Sales Rep 2 C $23.25
Year 3 Subtotal 25 , ~:'T : ~;,F ~y:" ~, ':ti;':z~ i
Total Number of Retained Jobs: 232
Total Number of Created Jobs: 75
Section A -Applicant & Project Information 15
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.
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;
c) impact the proposed project will have on current employees, including the potential for increased skills and wages;
and
d) impact the investment will have on the ability of the business to expand, upgrade, or modernize its capabilities.
A) Since January of 2002, the Dubuque metro area has experienced an increase of over 5,100 jobs. In
addition during this same period, new commercial/industrial construction spending has exceeded $200
million. However, despite this progress, the most recent numbers show that Dubuque lost 900 jobs
between June & July 2006 and the unemployment rate stands at 3.2%. Recent business closures in
Dubuque include Regency Thermographers leaving 137 unemployed in January 2007.
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. However,
thanks to a growing interest in this region's financial/insurance/service industry talent, Dubuque's economy
has been resilient. The proposed project from Medline could provide an additional boost for Dubuque.
B) Medline's proposed project, based on 75 new jobs and $2,400,000 annually in new direct payroll by year
3 of the project, would be a positive impact for Dubuque and the entire State of Iowa. This project would
also increase the property tax value by $9,000,000 and increase property taxes by $288,000 per annum.
C) Medline expects to hire at least 75 new employees to meet our business needs. These positions will
provide increased pay and professional growth opportunities for our current employees, as well as new
jobs for the community. Additional training will advance the skill sets for all employees. In addition, this
project will provide the space we need to be able to move more positions from our corporate headquarters
in Mundelein, Illinois to Dubuque. We have not included these transferred jobs in our projection.
D) The new positions will impact the service to our customers greatly as we extend our dedicated staff to
serve more of our customer base. As we expand the responsibilities of these agents, we will take on more
of the administrative duties for our 700 sales representatives in the field.
The addition of the Inside Sales Reps also will also provide an increase in revenue for the company. These
reps will sell by phone to customers all over the U.S. Hiring six new reps will increase sales by
approximately $6 million over three years. Current employees will have the opportunity to apply for these
new positions. That will provide further potential to our current staff for professional growth and increased
earnings.
17. Is the Business actively considering locations outside of Iowa? ®Yes ^ No
If yes, where and what assistance is being offered?
The company has evaluated an alternative location in Galena, Illinois. Incentives available for the Galena site include
property tax abatement, an infrastructure grant and a tax credit under the Illinois EDGE program for job creation. Total
value of incentives could exceed $6,000,000.
18. There are three general justifiable reasons for assistance. Check the box next to the reason why assistance is needed
to complete this project
^ 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.
Section A -Applicant & Project Information 16
^ 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 Business is deciding between a site in Iowa (site A) and a site in
another state (site B) for its project. The Business argues that the project will cost less at site B and will require a
subsidy to equalize costs in order to locate at site A. The objective here is to quantify the cost differential between site
A and site B.
What measures were analyzed to determine the amount and form of assistance needed?
The amount of assistance needed was based on the incentives available for the alternative site in Galena, Illinois, and
the return on investment generated considering those incentives. (See response to Question # 17)
19. What amount of state assistance is requested based on the above-identified need? $3,480,000
What type/form of assistance is preferred (e.g. loans, forgivable loans, tax incentives, etc.)?
Tax incentives, forgivable loans and loans.
20. Please indicate what program(s) the Business is applying to and download and submit those applicable sections:
® CEBA (Complete Section B)
^ EZ (Complete Section C)
^ HQJC (Complete Section D)
^ EVA (Complete Section E)
^ VAAPFAP (Complete Section F)
^ EDSA (Complete Section G)
The Department reserves the right to review this application and determine, based on fhe proposed project and available
program funds, which financial assistance program(s) is best suited for fhe Business' project. The actual program(s) utilized
may vary from the programs indicated above.
Section A -Applicant & Project Information 17
21. Return on Investment Information -Business Taxes
IDED 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 return on investment information.
Instructions for Question 21
- IDED 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, IDED needs estimates for the first three years of the project.
- Show data as if no tax abatements or tax credits awarded for this project 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 IDED.
- This page of the application will automatically be treated as confidential.
Increase in Tax Collections Associated with this Project
Note: The largest increase in tax collections will be from personal income taxes resulting from new positions created.
Most real estate property tax will be returned to Medline under the TIF agreement.
State Business Taxes Year 1 Year 2 Year 3 Year 4 Year 5
State Corporate Income Tax* $ $ $ $ $
State Business Sales and Use Tax $30,000 $5,000 $5,000 $5,000 $5,000
* 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 $ See Note $ $ $ $
Local Option Sales Tax $ $ $ $ $
Section A -Applicant & Project Information 18
Attachments
Please attach the following documents:
Al 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 product/process 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.)
This project does not involve manufacturing or distribution of products. tt is to provide administrative support to
Medline's sales staff. Therefore, the studies listed above are not applicable. See question # 13.
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 -Applicant & Project Information ~g
IOWA
1~~~~~char~n~~~
Application Checklist
For each section the Business is required to submit, please indicate with a `/' that items needed for that section are included when submitting the application to IDED.
If an item listed is not included, please indicate in the corresponding box the date on which IDED can expect to receive it or explain in the space provided below why it has
not been included:
Section A Section B
CEBA. Section C
EZ Section D
HCJC Section E
EVA Section F
VAAPFAP Section G
EDSA
Ori final plus 1 Co
Si ned b the Business N/A N/A N/A N/A NIA N/A -
Si ned b the Sponsors NIA ' • •- NIA ° .N/A: N/A NIA N/A` . '°
Business Plan w/ 3- ear Pro'ections N/A N/A NIA .NIA NIA N/A , °-~
Quarter) Em to er's Contribution and Pa roll Re orts N/A . N/A NIA -
" N/A.<~- NIA ~' N/A "
Current Pa roll Report ` ; N/A° ~ ~ ' - ' NIA; . _' N/A _
_ - 'N/A- - NIA NlA ~_
Affidavit re: Violations NIA :..°' N/A ~ ~N/A "= N/A" ~ `NIA ° .- :N/A--~ • .
P/L statements & Balance Sheets 3 ears N/A ., N/A ;.~ N/A~` := .:.NIA: NIA ... ':N/A~ °`'
Current YTD Financials N/Ar :N/A: ~ --NIA.. ~ = ...NIA . - NIA -N/A : -
A ed Accounts Receivables ,.~N/A. ~ " ,:. NIA ' N/A~... ' - ' . ;N/A N/A ..NIA
A ed Accounts Payable N/A - . ` N/A NIA. N/A` " N/A ~ °N/A`~ °'
Schedule of Other Debts N/A N/A NIA ;NIA. NIA NIA _"
Resolution from Sponsor N/A ; ,:,N/A `` -NIA N/A
Le al Descri tion of Pro'ect Site N/A `' .NIA '-NIA N/A N/A :-
Map N/A NIA ° -NIA N/A
Meetin /Public Hearin Notice NIA NIA NIA N/A NIA
Meetin Minutes N/A N/A ~ NIA.. NlA NIA
Technical Assistance Bud et NIA.:..- -:. - NIA -" - =- NIA. N/A NIA N/A ~-
Bids, Quotes, & Estimates N/A` NIA_= ' - NIA. ':N/A '.N/A NIA
Emplo er Certification Form :NIA. •' N/A NIA ,NIA ,. `NIA 'NIA
Commitment Letters N/A N/A N/A NIA " ' NIA NIA
Comm. Development & Housin Needs Assessment -N/A - ~ y.N/A' NIA NIA N/A NIA
Assurances Pa a N/A NIA' NIA N/A NIA N/A
Applicant/Reci lent Disclosure/Update form N/A N/A N/A. N/A NIA NIA
Explanation for Items Not Included:
Application Checklist
Medline Industries, Inc
Dubuque Project
Executive Summary
Medline proposes to build an office facility of approximately 62,000 square feet in
Dubuque. This facility will be used primarily to provide customer service and sales
support to Medline's 700 person sales force. There will also be some telephone sales
activity at this facility. Phone sales will be made nationally from this location.
As part of the project, Medline will maintain the current 232 positions in Dubuque and
add at least 75 new positions over the next three years. There is the possibility that this
number could be exceeded by transferring additional positions from other Medline
locations. This project will provide the potential for promotional opportunities and
professional growth for current employees..
Construction will begin in early 2008 and Medline plans to occupy the building by the
end of the year.
Affidavit of Alex Liberman
THE STATE OF ILLINOIS )
COUNTY OF LAKE )
BEFORE ME, the undersigned authority, on this day personally appeared, Alex
Liberman, known to me to be the person whose name is subscribed to the following
instrument, and having been by me duly sworn, upon his oath deposes and states as follows:
1. My name is Alex Liberman. I am over the age of eighteen (18), of
sound mind, and fully competent to make this affidavit. I have
personal knowledge of all the facts as stated herein, which are all true
and correct.
2. I am currently General Counsel for Medline Industries, Inc. (herein
after referred to as "Medline").
3. I have personal knowledge about the legal and business affairs of
Medline.
4. Medline has not, within the last five years, violated state or federal
statutes, rules, and regulations, including environmental and worker
safety regulations.
Further affiant says not.
L~~
Alex Liberman
SUBSCRIBED AND SWORN TO BEFORE ME on this 18`" day of October, 2007.
,:'~ ~:,,.='r'~ ~~! TAT'E 0c= ILLINOIS
Notary Public in and for ~''~~':_` ~~a~~I~AiSSION EXPIRES ;-5.240
.~.~.~,..,,.,,~.,,.<<,,,,,~F,.,e,~,.,,,......,~,.
The State of ~ ~~ ~~ ~, , S
My commission expires:
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