Quebecor Memo & CEBA AppMEMORANDUM
February 27, 2002
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Quebecor World Dubuque, Inc.
Community Economic Betterment Account (CEBA) Application
Quebecor World Dubuque, Inc. is a wholly owned subsidiary of Quebecor World (USA),
Inc., which is the largest commercial printer in the world. Quebecor has outgrown
existing facilities on Kerper Boulevard, and has been exploring options for expansion.
McGraw-Hill Company recently announced their intention to expand their Dubuque
operations, and is currently constructing a 330,000 square foot distribution center at the
Dubuque Industrial Center West. Quebecor would like to expand and occupy the
building to be vacated by McGraw-Hill. Quebecor will increase employment by 109
positions, while retaining their existing 227 employees, invest $4 million in the existing
building, and purchase $20 million in new equipment. The average starting wage of the
new positions is $14.46 per hour.
The Memorandum of Understanding between the City and Quebecor concerning their
expansion in Dubuque outlines Quebecor's plans and details the incentive package
proposed by the City. The incentives include Enterprise Zone benefits, a CEBA
forgivable and repayable loan, job training reimbursements, and rebate of property
taxes on new value added for a period of ten years through tax increment financing.
Economic Development Director Bill Baum is recommending approval of the
Memorandum of Understanding, and is requesting authorization to submit a Community
Economic Betterment Account (CEBA) program application to the Iowa Department of
Economic Development for a $345,000 partially forgivable loan on behalf of Quebecor,
with a commitment of local matching funds subject to State approval.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Bill Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
February 27, 2002
TO:
FROM:
SUBJECT:
Inc.
Michael Van Milligen, City Manager
William J. Baum, Economic Development Director
Proposed Memorandum of Understanding with Quebecor World Dubuque,
INTRODUCTION
The attached resolution provides for the approval of a Memorandum of Understanding
between the City and Quebecor World Dubuque, Inc. concerning an expansion in
Dubuque.
DISCUSSION
Quebecor World Dubuque, Inc. (the Company) is a wholly owned subsidiary of
Quebecor World (USA), Inc. Quebecor World is the largest commercial printer in the
world. The Company specializes in serving the professional and college textbook
markets. The major customers of the Company include McGraw-Hill, Pearson, Sunset
Books, the State of Iowa, and Thomson Learning. Current employment in Dubuque is
227.
The Company has been exploring options nation-wide for an expansion to support new
business. The expansion of McGraw-Hill, with the construction of a 330,000 square foot
distribution center at Dubuque Industrial Center West, has offered the Company an
opportunity to occupy the Kerper Boulevard facility to be vacated by McGraw-Hill this
summer. Therefore, Dubuque has been chosen as the site for the new expansion,
contingent upon approval of State of Iowa and City of Dubuque incentives. The
company plans to employ 109 additional persons, invest $4 million in the existing
building, and purchase $20 million in new equipment. The average starting wage of the
new positions is $14.46 per hour.
The attached Memorandum of Understanding outlines the Company's plans, and details
the incentive package proposed by the City. The incentives include Enterprise Zone
benefits, a CEBA forgivable and repayable loan, job training reimbursements, and a
rebate of property taxes on new value added for a period of ten years.
The implementation of the Memorandum of Understanding will include the following
steps:
The preparation and approval of resolutions, plans, and an ordinance designating
the property to be leased by the Company on Kerper Boulevard an Urban
Renewal District. This designation allows the City to provide a rebate of property
taxes on new value added to the building.
The review and approval of a $345,000 forgivable/repayable loan to the
Company by the State of Iowa through the CEBA program. A proposed
resolution approving the CEBA application is also on the agenda for March 4,
2002.
The preparation and approval of an application for Enterprise Zone Benefits, and
the approval of a contract between the Iowa Department of Economic
Development, the Company, and the City Council.
RECOMMENDATION
I recommend the City Council review, discuss, and approve the Memorandum of
Understanding.
ACTION STEP
The requested action is for the City Council to adopt the attached resolution approving
the Memorandum of Understanding, and instructing the City Manager to prepare the
appropriate documents for City Council approval of the incentive package.
F:\USERS\WBaum\QUEBECOR~J~lemo to mike on MOU.doc
CITY OF DUBUQUE, IOWA
MEMORANDUM
February 25, 2002
TO:
FROM:
SUBJECT:
Michael Van Milligen, City Manager
Bill Baum, Economic Development Director
Quebecor World Dubuque, Inc
Community Economic Betterment Account (CEBA) Application
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 Quebecor World Dubuque,
Inc., a world-wide printing company with a local facility.
BACKGROUND
McGraw-Hill Company recently announced their intention to expand their Dubuque
operations and is under construction of a 330,000 square foot distribution center at the
Dubuque Industrial Center West. Quebecor World Dubuque, Inc. has outgrown existing
facilities on Kerper Boulevard, and plans to expand and occupy the building to be vacated
by McGraw Hill. QuebecorWodd Dubuque, Inc. will increase employment by 109
positions, and retaining their existing 227 employees.
A Memorandum of Understanding has been prepared, subject to final City Council approval
to assist the company on this project. The City has been asked to submit the CEBA
application on behalf of the company. As required by the CEBA program, application
requires a commitment of City funds to the project.
DISCUSSION
Over the next three years, Quebecor World Dubuque will employ 109 new employees
averaging $14.46/hour. To help fund this expansion, the Company has requested a
partially forgivable CEBA loan of $345,000, which represents $3,165 per new job created.
The project is currently estimated to include $4 million in building improvements and $24
million in equipment. The company has requested assistance to the overall project. The
assistance to the company, which will serve as the public match for the CEBA application,
is proposed to be as follows:
· Tax Increment Financing: a TIF rebate of property taxes on the new value
added to the building for a ten-year period.
· A grant from the Northeast Iowa Community College of $554,000 to assist in
the training of new employees.
· Enterprise Zone benefits, including a refund of sales and use tax paid for
materials used in the expansion, and a tax credit on Iowa Corporate income
taxes equal to 10% of the investment.
RECOMMENDATION
I recommend that the City Council authorize the submission of a CEBA application for a
$345,000 partially forgivable loan on behalf of Quebecor World Dubuque, Inc with a
commitment of local matching funds subject to State approval.
From recent discussions with the company, we believe that Quebecor World Dubuque, Inc
will achieve its expansion plans and employment goals with the requested public financial
assistance. This project will have a substantial impact on employment in the city. This
project is consistent with the City's goals to expand local business, increase the number of
higher wage jobs and further diversify our economic base.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
attachment
F:\USERS\WBaum\QUEBECOR'~IEMO ON CEBA APP.doc
RESOLUTION N0.121-02
A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING
WITH QUEBECOR WORLD DUBUQUE, INC FOR AN EXPANSION IN
DUBUQUE
Whereas, Quebecor World Dubuque, Inc is proposing to expand employment in
the City of Dubuque, and
Whereas, the City is encouraging the Company to expand its operations in
Dubuque, and
Whereas, a Memorandum of Understanding has been prepared for said
expansion,
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF DUBUQUE,
IOWA, AS FOLLOWS:
Section 1. The attached Memorandum of Understanding is hereby approved.
Section 2. The City Manager is hereby directed to prepare documents necessary
to implement the Memorandum of Understanding
Passed, approved and adopted this 4th day of March 2002.
ATTEST:
Jeanne F. Schneider, City Clerk
Terrance M. Duggan, Mayor
F:~USERS\WBaum\QUEBECOR'~Resolution on MOU.doc
February 25, 2002
MEMORANDUM OF UNDERSTANDING
Whereas, Quebecor World Dubuque, Inc., (the Company), a printing company currently
located in Dubuque, has determined that an expansion in Dubuque is in the best
interests of the Company; and
Whereas, the Company has made the above determination subject to certain financial
incentives from the State of Iowa and the City of Dubuque (the City); and
Whereas, the City is encouraging the Company to expand in the City, and is willing to
offer incentives for a Dubuque location; and
Whereas, the City and the Company desire to enter into further discussions, and as a
first step in the Company's efforts to initiate the expansion, the parties propose the
following:
The Company will lease existing property owned by the McGraw-Hill Company
on Kerper Boulevard, and will make improvements to such property and equip
the existing buildings. The Company will make a capital investment in building
improvements, equipment, furniture and fixtures of not less than $24,000,000.
The Company will maintain its existing 227 employees in Dubuque, Iowa, and will
create or cause to be created not less than one hundred (100) new full time
equivalent (1820 hours per year) jobs within two (2) years and not less than one
hundred nine (109) jobs within three (3) years.
In consideration for the Company's intentions as described in Paragraphs 1. and
2., and as an incentive for expanding in Dubuque, the City will provide the
following incentive package to the Company:
Enterprise Zone Benefits: Subject to the Company meeting the
requirements of the program, approval by the Dubuque Enterprise Zone
Commission, and State of Iowa approval of the Company's application,
the City will execute a three-party Enterprise Zone Agreement with the
State and the Company, pursuant to which the Company would be eligible
for benefits under the program. These benefits include a refund of sales
and use taxes charged for materials in the renovation of the building, and
an Iowa State tax credit equal to 10% of the Company's investment in the
project.
=
Tax Increment Financing Rebates. The City Council will initiate a process
for the establishment of an Urban Renewal District and Urban Renewal
Plan for the expansion property. If the Urban Renewal District and Urban
Renewal Plan are approved in accordance with the requirements of the
Urban Renewal Act (Chapter 403 of the Code of Iowa), and subject to a
written agreement executed between the Company and the City, the City
will provide a ten-year rebate of property taxes paid by the Company on
the incremental value added to the real estate as a result of the project.
CEBA Loans. The City Council will review, approve, and process an
application for the Community Economic Betterment Account (CEBA) for
approval by the Iowa Department of Economic Development. The City will
propose that the Company be provided a forgivable loan of $172,500 and
a 0% five-year repayable loan of $172,500.
Iowa New Job Traininq Program. The City will encourage the Northeast
Iowa Community College to provide reimbursement for new employee
training as a result of the expansion. The estimate of the amount of
reimbursement is $554,000.
The Company acknowledges that in order for the City to secure such incentives,
certain requirements are imposed upon the Company as specified in the
respective program regulations. The Company agrees to cooperate with the
City, the State of Iowa, and the Northeast Iowa Community College by providing
the information and documents necessary for the approval of the loans and
applications for financial assistance described above.
Notwithstanding any other provisions of this Memorandum of Understanding, the
City shall have no obligation to the Company under this Memorandum of
Understanding until and unless definitive agreements are entered into between
the Company and the City, and approved by the City Council and the Company's
appropriate officers.
Notwithstanding any other provision of this Memorandum of Understanding, the
Company shall have no obligation to fulfill the intentions in Paragraph 1. and 2.
until and unless definitive agreements are entered into between the Company
and the City, and approved by the City Council and the Company's appropriate
officers.
2
Approved this 4th day of March 2002 by and between Quebecor World Dubuque, Inc.,
and the City of Dubuque, Iowa.
Quebecor World Dubuque, Inc.
Title:
City of Dubuque
Tetrrance Duggan
Jeanne F. Schneider, City Clerk
F:\USERS\WBaum\QUEBECOR~Memo of Understanding.doc
3
CEBA APPLICATION FOR BUSINESS FINANCIAL ASSISTANCE PAGE 15 January,
1998
24.
IN WHAT FORM IS THE BUSINESS CONTRIBUTION TO THE PROJECT?
PLEASE EXPLAIN CLEARLY. (i.e. SALE OF STOCK, EQUITY INVESTMENTS,
SUBORDINATED DEBT, ETC.)
Financing through cash contributions from parent company or arranged financing
(Le equipment leasing).
25. IDENTIFY ALL AGENCIES OR INSTITUTIONS INVOLVED IN THE PROJECT, AND WHAT
THEIR INVOLVEMENT IS:
Greater Dubuque Development Corporation: Project Coordinator
City of Dubuque: Will provide property tax rebates through Tax Increment Financing,
Enterprise Zone approval, and CEBA application processing.
Northeast Iowa Community College will provide job-training reimbursements through
the Iowa New Jobs Training Program.
RESOLUTION NO. 122-02
A RESOLUTION AUTHORIZING THE FILING OF A COMMUNITY
ECONOMIC BETTERMENT ACCOUNT (CEBA) APPLICATION ON
BEHALF OF QUEBECOR WORLD DUBUQUE, INC
Whereas, Quebecor World Dubuque, Inc. has proposed the expansion of its
existing operations; 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 over 100 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
Community Economic Betterment Account 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 Iowa
Community Economic Betterment Account program on behalf of Quebecor World
Dubuque, Inc. is approved.
Section 2. That the local match as identified in the application will be considered for
approval in the Urban Renewal/Tax Increment Financing approval process.
Section 3. That the Mayor is hereby authorized to execute, and the City Manager is
hereby directed to submit said application to the State of Iowa Economic Development
Commission together with such documents as may be required.
Passed, approved, and adopted this 4th day of March 2002.
Terrance M. Duggan, Mayor
Attest:
Jeanne Schneider, City Clerk
CEBA APPLICATION FOR BUSINESS FINANCIAL ASSISTANCE ~B.7 January,
1998
APPLICATION FOR FINANCIAL ASSISTANCE
APPLICANT INFORMATION:
1. APPLICATION TYPE (Please Check One):
/ / SMALL BUSINESS GAP FINANCING / x / NEW BUSINESS OPPORTUNITY / / NEW PRODUCT
DEVELOPMENT
/ ! VENTURE PROJECT
2
THE COMMUNITY, CITY OR COUNTY SPONSORING THE APPLICATION
CITY OR COUNTY City of Dubuque~ Iowa
NAME OF MAYOR OR BOARD CHAIR: Terrance Duaaan
ADDRESS 50 W13th Street
CITY/COUNTY CONTACT PERSON
TELEPHONE ( 563} 589-4393
ZIP CODE
Bill Baum
FAX {563_~ 589-1733
52001-4864
TITLE Economic Dev. Director
3. BUSINESS RECEIVING BENEFIT OF FUNDING
BUSINESS QuebecorWorld Dubuque Inc.
NAME OF AUTHORIZED PERSON TO OBLIGATE THE BUSINESS Rich Dunn
BUSINESS ADDRESS 2470 Kerper Boulevard~ Dubuque~lowa ZIP CODE $200t
BUSINESS CONTACT PERSON Rich Dunn TITLE Vice President
TELEPHONE ( 563 ) 589-1380 FAX ( 563)__589-2991 www site: quebecorworld.com
BUSINESS FEDERAL ID # 36-4067254 e-mail: rich.dunn~,quebcorworld.com
CEBA APPLICATION FOR BUSINESS FINANCIAL ASSIST/LNCE G~$ January,
- 1998
RELEASE OF INFORMATION AND CERTIFICATION
NOTE: Please read carefully before signing
I hereby give permission to the Iowa Department of Economic Development (DED) to research the
company's history, make credit checks, contact the company's financial institution, and perform
other related activities necessary for reasonable evaluation of this proposal. I understand that all
information submitted to DED relating to this application is subject to the Open Records Law (1989
Iowa Code, Chapter 22) and that confidentiality may not be guaranteed. I hereby certify that all
representations, warranties or statements made or furnished to the Department in connection
with this application are true and correct in all material respects. 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 political subdivision.
SIGNATURE OF COMPANY OFFICER AUTHORIZED TO OBLIGATE BUSINESS:
SIGNATURE OF MAYOR/BOARD CHAIR AUTHORIZED TO OBLIGATE COMMUNITY:
NOTE DED 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 BY DED PRIOR TO DISCOVERY OF
THE INCORRECT, FALSE OR MISLEADING REPRESENTATION, DED MAY INITIATE LEGAL
ACTION TO RECOVER STATE FUNDS.
CEBA APPLICATION FOR BUSINESS FINANCIAL ASSISTANCE ~.9 January,
t 998
DESCRIBE THE ORGANIZATIONAL STRUCTURE OF THE BUSINESS, INCLUDING ANY
PARENT COMPANIES, SUBSIDIARIES, SISTER COMPANIES, ETC.
Quebecor World Dubuque Inc. is a wholly owned subsidiary of Quebecor World (USA) Inc. and an indirect wholly
owned subsidiary of Quebecor World Inc. There are over 100 entities in the affiliated group.
LIST THE NAMES OF THE BUSINESS OWNERS AND THE PERCENT OF OWNERSHIP HELD BY
EACH.
Quebecor World (USA) Inc. owns 100% of Quebecor World Dubuque Inc.
Quebecor World Inc. is a publiclytraded company.
6. LIST THE BUSINESS' PRIMARYAND SECONDARY STANDARD INDUSTRIAL CODES (SIC) CODES.
#2752
DESCRIPTION AND HISTORY OF BUSINESS: (If complete description is attached, please
summarize here.)
Quebecor World Inc. is the largest commercial pdnter in the world. It is a market leader in most of its major product
categories which include magazines, inserts and circulars, books, catalogs, specialty pdnting and direct mail,
directories, digital pre-media, logistics, mail list technologies and other ~alue added services.
Operation currently known as Quebecor Wodd Dubuque was founded in 1949 and has been a part of the
QWI group since 1996. It has been located at its current site since 1972. The book printing facility specializes in
serving the professional and college textbook markets. Its top customers include McGraw
Hill, Pearson, Sunset Books, the State of Iowa and Thomson Learning.
CEBA APPLICATION FOR BUSINESS FINANCIAL ASSISTANCE ~.]0 January,
1998
DESCRIBE IN DETAIL THE PROPOSED "PROJECT": (e.g. company relocation, plant expansion,
remodeling, new product line, refinancing, etc.) (If complete desc~ption is attached, please
summarize here.)
The company proposes to expand by leasing an additional 142,381 sq.ft, of space now occupied by McGraw Hill,
Inc. McGraw Hill is in the process of constructing a new facility and moving its distribution center to the Dubuque
Industrial Center West. QuebecorWorld of Dubuque will be leasing the existing space, and making improvements
of at least $4 million and making equipment additions ofat least $20 million.
This proposed project is planned to address the increasing demand for books of a specific size, color, and binding
style with the objective of creating a state of the art, hard cover facility focused on the education market with an
asset base that supports elementarystate adoption cycles.
WILL THE PROJECT INVOLVE A TRANSFER OF OPERATIONS OR JOBS FROM ANY OTHER IOWA
FACILITY OR REPLACE OPERATIONS OR JOBS CURRENTLY BEING PROVIDED BY ANOTHER
IOWA COMPANY? IFYES, PLEASE INDICATE THE FACILITY(S)AND/OR COMPANY(S)AFFECTED.
NO
10. WHAT PERCENTAGE OF THE COMPANY'S SALES WILL BE OUTSIDE THE STATE OF IOWA?
Approximately 95%.
11. DESCRIBE THE BUSINESS' ANTICIPATED IN-STATE CUSTOMERS AND THE PRODUCT/SERVICE
THAT WILL BE PROVIDED TO EACH.
McGraw Hill: PRD and Osborne books
State of Iowa: Iowa Conservationist, Iowa Codes and Iowa Codes Supplement
12.
WHAT PERCENTAGE OF THE COMPANY'S TOTAL OPERATING EXPENDITURES (INCLUDING
WAGES AND SALARIES) WILL BE SPENT WITHIN THE STATE OF IOWA?
Quebecor World of Dubuque: 53%
13. WHAT DATE WILL THE PROJECT BEGIN?
By_June of 2002
BE COMPLETED? July of 2004
(NOTE: Funds are not normally distributed to the business until approximately two months after DED's
CEBA APPLICATION FOR BUSINESS FINANCIAL ASSISTANCE (I~Bll January,
1998
t4.
HAS ANY PART OF THE PROJECT BEEN STARTED?
describe:)
YES _x__NO (If ~es, please
15.
HOW MANY EMPLOYEES ARE CURRENTLY EMPLOYED BY THE COMPANY? (Total employment
including all locations, subsidiaries, divisions, etc., worldwide) __40,000+
IF THIS COMPANY CURRENTLY HAS AN IOWA FACILITY, HOW MANY FULL-TIME EMPLOYEES ARE
THERE AT THE FACILITY AFFECTED BY THIS PROPOSAL 227
OTHER IOWA FACILITIES? Location(s) Carroll, and Waukee, Iowa
No. of Employees at each __Carroll--59, Waukee--158
HOW MANY TOTAL INDIVIDUALS HAVE BEEN EMPLOYED BY THE COMPANY AT THESE FAClLITIE~
DURING THE PAST YEAR? 516
16. IF AWARDED FUNDS, HOW MANY NEW, FULL-TIME EMPLOYEES WILL YOU ADD TO THE PAYROLL
WITHIN 12 to 36 MONTHS OF THE AWARD DATE? The business acknowledges if it fails to crate
the jobs pledged below by the end of the project period (usually 36 months from the date of the CEBA
award), it will reimburse CEBA funds for the employment shortfall. The preparer of this application
should ensure that the business is aware of this provision before asking the business to sign
the application form.
FULL-TIME:
PART-TIME:
MONTHS__75 12
Cumulative
MONTHS
Cumulative
FULL-TIME:
PART-TIME:
24 MONTHS __ 100 24 MONTHS
Cumulative Cumulative
FULL-TIME:
36 MONTHS
PART-TIME:
109 36 MONTHS
Cumulative Cumulative
17.
WHAT IS THE ESTIMATED ANNUAL PAYROLL FOR THE NEW EMPLOYEES RESULTING FROM THIS
PROJECT?
Approximately $3.6 Million
CEBA APPLICATION FOR BUSINESS FINANCIAL ASSISTANCE ¢~12 January,
998
18.
WHAT IS THE STARTING HOURLY WAGE RATE (NOT INCLUDING FRINGE BENEFITS)
PROJECTED TO BE FOR THE NEW EMPLOYEES? $14.46
AVERAGE WAGE FOR EXISTING EMPLOYEES9 $13 68
195
LIST OF POSITIONS AND STARTING HOURLY RATES FOR EACH JOB CLASSIFICATION TO BE
CREATED AND RETAINED.
See next page. An example is typed in the first line.
See Attachment
HOW MANY OF THE BUSINESS' CURRENT EMPLOYEES ARE EARNING AN HOURLY WAGE,
EXCLUDING BENEFITS, OF AT LEAST THE COUNTY THRESHOLD WAGE?
(CONTACT A CEBA PROJECT MANAGER AT IDED FOR CURRENT FIGURES.)
, or_85.9%__
of the current employees are earning at least $10.01 per hour.
FOR PROJECTS REQUESTING GREATER THAN $500,000:
WHAT IS THE MEDIAN WAGE FOR ALL PROJECT POSITIONS? _$14.46
(REQUESTS OF GREATER THAN $500,000 REQUIRE A MEDIAN WAGE OF AT LEAST t30%
OF THE AVERAGE COUNTY WAGE.)
CEBAAPPLICATIONFORBUSINESS FINANCIAL ASSISTANCE G~.13 January,
1998
18, Cont.
LIST OF POSITIONS AND STARTING HOURLY RATE
POSITIONS Additional Sheets if Needed
Number Number
of of
Created Retained
4
9
9
9
9
3
2
12
6
6
3
6
3
3
3
3
6
2
3
2
2
4
Position Title
Preflighters
Operators
Press Operators
Operators
Bundlers
Roll TendedPress Utility
Supervisors
Signature Feeders
Collator Operators
Binder Operators
Sewer Operators
Casing-In Operators
Boxing/Palletizers
Casemaking Operators
Casemaking Palletizers
End-Sheet Operators
Material Movers
Supervision
__ Shipping/VVarehouse
Accounting
Customer Service
Maintenance
FOR CREATED AND RETAINED
No. Hours Sta~ing Hourly
PerWeek Rate of Pay
40 $16.17
40 $17.95
40 $16.17
40 $15,13
40 $15.13
40 $8.50
40 $19.23
40 $10.93
40 $12.70
40 $15.13
40 $15.13
40 $15.13
40 $11.98
40 $15.13
40 $11.98
40 $15.13
40 $11.98
40 $19.23
40 $12.70
40 $12.00
40 $16.82
40 $16.17
CEBAAPPLICATION FORBUS]NESS FINANCIAL ASSISTANCE ~.14 January,
1998
19.
WILL ANY OF THE CURRENT EMPLOYEES LOSE THEIR JOBS IF THE PROJECT DOES NOT
PROCEED?
YES x NO
20. IF YES, HOW MANY? N/A
EXPLAIN WHY:
WHAT IOWA COMPANIES DO YOU EXPECT TO SELL TO WHICH CURRENTLY BUY FROM NON-IOWA
COMPANIES? WHAT PERCENTAGE OF YOUR SALES WILL FALL INTO THIS CATEGORY?
None
22. WHAT OTHER IOWA COMPANIES COULD BE CONSIDERED TO BE YOUR COMPETITORS?
To the Company's knowledge none of its major competitors have production facilities in Iowa.
23. HOW WILL THIS PROJECT BENEFIT THE CITY/COUNTY, ETC.
This project will result in the creation of 109 good paying jobs for the Dubuque area. These jobs,
and the benefits that come with the employment will have an immediate positive impact on the
entire community. Last year, a major employer closed its doors resulting in layoffs of 1300 persons.
Many of these dislocated workers continue to remain unemployed. These new jobs will assist in improving the
opportunities for employment of those and other unemployed and underemployed
persons.
C~BA APp~.ICATION FOR BUSINESS FINANCIAL ASSISTANCE PAGE ]5 January,
,'1998
24.
IN WHAT FORM IS THE BUSINESS CONTRIBUTION TO THE PROJECT?
PLEASE EXPLAIN CLEARLY. (i.e. SALE OF STOCK, EQUITY INVESTMENTS,
SUBORDINATED DEBT, ETC.)
Financing through cash contributions from parent company or arranged financing
(i.e equipment leasing).
25.
IDENTIFY ALL AGENCIES OR INSTITUTIONS INVOLVED IN THE PROJECT, AND WHAT
THEIR INVOLVEMENT IS:
Greater Dubuque Development Corporation: Project Coordinator
City of Dubuque: Will provide property tax rebates through Tax Increment Financing,
Enterprise Zone approval, and CEBA application processing.
Northeast Iowa Community College will provide job-training reimbursements through
the Iowa New Jobs Training Program.
CEBA APPLICATION FOR BUSINESS FINANCIAL ASSISTANCE ~17 January,
998
SUMMARY OF PRO3ECT COSTS AND PROPOSED
FINANCING SOURCES
26.
USE OF FUNDS SOURCES
(Summarize All Sources from questions 27)
A~TY COST SOURCE A SOURCE B SOURCE C SOURCE D SOURCE E SOURCE F
Z. Land
Acquisition $
2. Site
PreparaUon $
3. Building
Acquisition $
4. Building
Construction $
5. Building 4,000,000
Remodeling $ 4,000,000
6. Hachinery & 345,000 19,655,000
Equipment $20,000,000
7. Furniture &
Fixtures $
8. Permanent $554,000
Working Capital i
(Detail:)
3ob Training
g. Other:
10. Other: $
$23,655,000
TOTAL: $24,554,000 $345,000 $554r000 $ $
TERMS OF PROPOSED FINANCING
27.
Source A: STATE ASSISTANCE (CEBA) $345,000 FL + DL FI and 0% 5 years
Source B: * City of Dubuque: Ten year property tax rebate
Source C: Quebecor World $23,655,00, Equity
Source D: Northeast Towa Community College $ 554,000 Grant
Source E:
Source F:
I TOTAL: $24,5S4,00,
*The City of Dubuque is proposing to provide a rebate of annual property taxes on the new value added to the building for a ten year period.
CEBA APPLICATION FOR BUSINESS FINANCIAL ASSISTANCE ~B.I? Janua~,
1998
28. EXPLAIN WHY ASSISTANCE IS NEEDED FROM THE STATE, AND WHY IT CANNOT BE OBTAINED
ELSEWHERE. SPECIFIC SUPPORTING DOCUMENTATION EVIDENCED BY CASH FLOWSTATEMENTS,
INCOME STATEMENTS, ETC. IS REQUESTED.
The incentive package is necessaryto entice the companyto expand in Iowa, and specifically in Dubuque.
The company has had options and opportunities in other states, specifcally the company's book
group operates facilities in a number of states including Kentucky,
Pennsylvania, Tennessee and Massachusetts. As a result the companyhas
various options for accommodating the workload necessitating this expansion.
Comparable incentives are available from the various states.
29.
EXPLAIN THE NEED FOR SPECIFIC TYPE OF ASSISTANCE (LOCATIONAL OR FINANCIAL OR RATE OF
RETURN). CAN CONVENTIONAL FINANCING BE OBTAINED FOR ALL PROJECT COSTS? IF CEBA
PROVIDED A MARKET RATE LOAN COULD THE PROJECT PROCEED? LOWOR NO INTEREST
LOAN? IF NOT, WHY NOT?
As stated above, the combination of forgivable and repayable 0% loan is a necessary part of the
incentive package offered to the company. The company would prefer a total forgivable loan, if possible.
30. ANY RECIPIENT OF CEBA FUNDS IS EXPECTED TO PROVIDE SECURITY TO THE STATE. THE
SECURITY WILL BE EXERCISED, WHEN NECESSARY, DUE TO NON-PERFORMANCE AND/OR NON-
PAYMENT ON THE PART OF THE BUSINESS. IN ADDITION TO A LIEN AND/OR MORTGAGE, PERSONAL
GUARANTEES ARE EXPECTED FOR BUSINESSES NOT PUBLICLY TRADED, AND CORPORATE
GUARANTEES ARE EXPECTED WHEN THE BUSINESS RECIPIENT HAS A PARENT (OR HOLDING)
COMPANY. PLEASE CHECK BELOWTHE SECURITY OFFERED IN THIS PROJECT.
MORTGAGE $
WHAT SENIORITY OR POSITION?
LIEN ON .$.
WHAT SENIORITY OR POSITION?
PERSONAL GUARANTEE .$.
CORPORATE GUARANTEE_x $ 345,000
OTHER $
(IF ADEQUATE SECURITY IS NOT OFFERED, THE STATE MAY REQUIRE THE BUSINESS TO
DEMONSTRATE PERFORMANCE (E.G. JOB CREATION, INVESTMENTS, ETC.) PRIOR TO RELEASE OF
CEBA FUNDS.)
31.
GENERALLY A DECISION BY THE IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT ON THIS
APPLICATION CAN BE EXPECTED WITHIN 30 DAYS OF RECEIPT OF THE APPLICATION. IS THERE AN
URGENT NEED FOR A MORE IMMEDIATE DECISION (I.E, I - 2 WEEKS) ON THIS APPLICATION?
X YES NO
IF SO, WHY? The training of new employees is anticipated to take up to six months and in order
to meet project timelines the Company will need to start recruiting new employees as soon as
possible once the a decision is made to proceed.
CEBA APPLICATION FOR BUSINESS FINANCIAL ASSISTANCE ~.18 January,
998
32.
DOES THE BUSINESS CERTIFY THAT HIRING PREFERENCE WILL BE MADE TO IOWA RESIDENTS?
x YES NO.
33.
DOES THE BUSINESS CERTIFY THAT HIRING PREFERENCE WILL BE MADE TO FORMER
EMPLOYEES OF ANY BUSINESS MERGED OR ACQUIRED BY THE COMPANY WITHIN THE
LAST THREE YEARS? x YES NO
34.
DOES THE BUSINESS CERTIFY THAT AT LEAST TEN (10%) PERCENT OF THE POSITIONS TO BE
CREATED WILL BE MADE AVAILABLE TO QUALIFIED PROMISE JOB PARTICIPANTS?
x__ YES NO.
35.
HAS THE BUSINESS BEEN CITED OR CONVICTED FOR VIOLATIONS OF ANY FEDERAL OR STATE
LAWS OR REGULATIONS WITHIN THE LAST FIVE YEARS (INCLUDING ENVIRONMENTAL OR SAFETY
REGULATIONS)?.__ YES x NO. IF YES, PLEASE EXPLAIN THE CIRCUMSTANCES OF THE
VIOLATION(S).
36.
WILL YOUR BUSINESS BE UTILIZING, OR BE LOCATED ON PROPERTY ON WHICH IS LOCATED,
UNDERGROUND TANKS (WHETHER OR NOT IN CURRENT USE) FOR THE STORAGE OF PETROLEUM
PRODUCTS, AGRICULTURAL OR OTHER CHEMICALS, WASTE OIL OR OTHER LIQUID WASTE, OR
ANY OTHER INFLAMMABLE, CORROSIVE, REACTIVE OR EXPLOSIVE LIQUID OR GAS?
YES x__NO IF YES, PLEASE SPECIFY.
37.
38.
WILL YOU BE STORING ABOVE-GROUND ON OR ABOUT YOUR BUSINESS PREMISES, IN TANKS
OR OTHERWISE, FOR ANY LENGTH OF TIME OR FOR ANY PURPOSE, ANY LIQUID OR GAS
INCLUDED IN QUESTION 36 ABOVE, OR ANY INFLAMMABLE, CORROSIVE, REACTIVE OR
EXPLOSIVE SOLID, EXCLUDING ORDINABY REFUSE?
YES x__NO IF YES, PLEASE SPECIFY.
WILL YOU BE YOU TREATING, TRANSPORTING OR DISPOSING OF/~NY LIQUID, GAS OR SOLID
INCLUDED IN QUESTIONS 36 OR 37 ABOVE, EITHER ON OR ABOUT YOUR BUSINESS PREMISES
OR AT A LANDFILL OR OTHER TREATMENT FACILITY, OR UPON ANY PUBLIC STREET OR
HIGHWAY, OR ON ANY WATERWAY OR BODY OF WATER, OR IN ANY AIRCRAFT?
YES x NO
IF YES, PLEASE SPECIFY THE SUBSTANCE AND WHAT YOU WILL BE DOING WITH IT.
39.
IF THE BUSINESS GENERATES SOLID OR HAZARDOUS WASTE, IT IS REQUIRED TO SUBMIT AN
AUDIT AND MANAGEMENT PLAN TO REDUCE THE AMOUNT OF THE WASTE AND TO SAFELY
DISPOSE OF THE WASTE. FOR THE PURPOSES OF MEETING THIS REQUIREMENT, THE BUSINESS IN
LIEU OF PROVIDING IN-HOUSE AUDITS, MAY SUBMIT AUDITS COMPLETED BY EITHER THE WASTE
MANAGEMENT AUTHORITY OF THE DEPARTMENT OF NATURAL RESOURCES OR THE IOWAWASTE
REDUCTION CENTER AT THE UNIVERSITY OF NORTHERN IOWA. IF AN AUDIT AND MANAGEMENT
PLAN IS NOT SUBMITTED, THE DEPARTMENT SHALL NOT PROVIDE ASSISTANCE UNTIL IT IS
SUBMITTED.
CEBA APPLICATION FOR BUSINESS FINANCIAL ASSIST/~NCE ~B.]9 January,
1998
40.
41.
42.
43.
X
X
X
X
X
WILL ANY PART OF THE PROJECT TAKE PLACE IN A t00 YEAR FLOOD PLAIN? YES x NO
DOES THE BUSINESS PROVIDE AT LEAST 80% OF STANDARD MEDICAL AND DENTAL INSURANCE
FOR FULL-TIME EMPLOYEES? X YES NO.
DO YOU HAVE A COMMUNITY PLAN IN PLACE? x YES NO
REQUIRED ATTACHMENTS. CHECK OFF EACH ONE SUBMITTED. IF NOT SUBMITTED, EXPLAIN
WHY IT IS NOT SUBMITTED.
x COMMUNITY RESOLUTION AUTHORIZING THE APPLICATION (ATTACHMENT A)
BUSINESS PLAN (IF NEW BUSINESS) (ATTACHMENT B)--Not new business
x PROFIT AND LOSS STATEMENTS (3 YEAR HISTORICAL AND 2 YEAR PROJECTIONS)
(ATTACHMENT C) Financial Statements will be provided directly to the state.
X
BALANCE SHEETS (3 YEAR HISTORICAL AND 2 YEAR PROJECTIONS INCLUDING AGED
ACCOUNT RECEIVABLE SCHEDULE, AGED ACCOUNTS PAYABLE SCHEDULE AND A
SCHEDULE OF OTHER DEBT) (ATTACHMENT D)
A/R, A/P and third partydebt not material.
Financial statements will be provided directly to the state
X LE'I-FERS OF COMMITMENT OF PROJECT FUNDS, (FROM BANKS, APPLICANT, ETC.)
(/I~'TACHMENT E)
x DESCRIPTION OF FRINGE BENEFITS PROVIDED TO EMPLOYEES (ATTACHMENT F)
COPIES OF THE COMPANY'S QUARTERLY IOWA "EMPLOYER'S CONTRIBUTION AND PAYROLL
REPORT" FOR THE PAST YEAR AND A COPY OF THE MOST RECENT MONTHLY PAYROLL
REGISTER. (ATTACMENT G) 4~h Qtr. 2001 payroll register included.
__ MAP INDICATING THE LOCATION OF THE PROJECT. (ATTACHMENT H)
__ ATTACH COST ESTIMATES FOR CONSTRUCTION, MACHINERY/EQUIPMENT, PERMANENT
WORKING CAPITAL AND PURCHASES. (ATTACHMENT I)
CERTIFICATE OF GOOD STANDING FROM THE IOWA SECRETARY OF STATE OR AN
AUTHORIZATION TO CONDUCT BUSINESS IN IOWA. (ATTACHMENT J)
__ CERTIFICATE OF INCUMBENCY LISTING THE CURRENT BOARD OF DIRECTORS AND CURRENT
OFFICERS IF A CORPORATION OR A LISTING OF THE GENERAL PARTNERS IF A PARTNERSHIP.
(ATTACHMENT K)
X
X
__ _ CORPORATE RESOLUTION AUTHORIZING THE APPLICATION FOR CEBA FUNDS. (ATTACHMENT
L)
__ _ CORPORATE SIGNATORY AUTHORIZATION NAMING AN OFFICER TO EXECUTE THE CEBA
APPLICATION AND CEBA LOAN DOCUMENTS, IF APPROVED. (ATTACHMENT M)
OTHER
CEBA APPLICATION FOR BUSINESS FINANCIAL ASSISTANCE (~L~20 January,
'1998
44. EXPLANATION/OTHER COMMENTS: