Rousselot Dubuque, Inc. Contract Amendment Copyright 2014
City of Dubuque Consent Items # 13.
ITEM TITLE: Rousselot Dubuque, Inc. Contract Amendment
SUMMARY: City Manager recommending approval of an Amended
Enterprise Zone Contract between Rousselot Dubuque,
Inc., the Iowa Economic Development Authority and the
City of Dubuque, which extends Rousselot's job creation
requirements to December 31, 2016.
RESOLUTION Approving an Amendment to the Economic
Development Assistance Contract by and among
Rousselot Dubuque, Inc., the City of Dubuque, and the
Iowa Economic Development Authority
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Rousselot Amendment to IEDA Enterprise Zone City Manager Memo
Contract-MVM Memo
Staff Memo Staff Memo
I E DA Contract Amendment Supporting Documentation
Resolution of Approval 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 Iowa Economic Development Authority Enterprise Zone
Contract 13-TC-006 with Rousselot Dubuque, Inc.
DATE: March 14, 2016
Economic Development Director Maurice Jones recommends City Council approval of
an Amended Enterprise Zone Contract between Rousselot Dubuque, Inc., the Iowa
Economic Development Authority and the City of Dubuque, which extends Rousselot's
job creation requirements to December 31, 2016.
1 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
AII-AwftlitY Dubuque,Iowa 52001-4864
DUB3 &kE1 I 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 IEDA Enterprise Zone Contract 13-TC-006 with
Rousselot Dubuque, Inc.
DATE: March 11, 2016
INTRODUCTION
The purpose of this memorandum is to present for approval and signature an amended
Enterprise Zone contract between Rousselot Dubuque, Inc. and the Iowa Economic
Development Authority (IEDA).
BACKGROUND
In January 2013, the City of Dubuque entered into a Development Agreement with
Rousselot Dubuque, Inc. in order to provide incentives for their planned $16.3 million
expansion at 2350 Kerper Boulevard. Concurrently, Rousselot applied to the IEDA for
assistance under the Enterprise Zone Program. In April 2013, Rousselot entered into
contract 13-TC-006 for state tax incentives, with the requirement of creating at least 10
jobs by August 31, 2015.
DISCUSSION
When the project started, Rousselot was owned by the Vion Food Group in the
Netherlands. In January 2014, Vion sold its ingredient business, including Rousselot, to
the Darling Company of Dallas. Darling put projects on hold until they got a full
understanding of Rousselot's financial situation. Darling has since recommenced the
project, and is on track to complete the third of three phases of expansion by the end of
2017.
Due to this temporary delay, Rousselot made a request in late 2015 to the IEDA to
extend the job creation dates an additional 16 months. The job creation will now be
certified December 31, 2016. The State is requiring City signature on the amended
contract.
RECOMMENDATION/ ACTION STEP
I recommend the City Council approve the attached resolution authorizing the Mayor to
sign the Amendment to Contract 13-TC-006.
RESOLUTION NO. 94-16
APPROVING AN AMENDMENT TO THE ECONOMIC DEVELOPMENT ASSISTANCE
CONTRACT BY AND AMONG ROUSSELOT DUBUQUE, INC., THE CITY OF DUBUQUE,
AND THE IOWA ECONOMIC DEVELOPMENT AUTHORITY
Whereas, the City of Dubuque entered into a Development Agreement with
Rousselot Dubuque, Inc. in order to provide incentives for its planned $16.3 million
expansion at 2350 Kerper Boulevard; and
Whereas, in connection with the expansion, the Iowa Economic Development
Authority (IEDA) approved Economic Development Assistance Contract 13 -TC -006 (the
Contract) between and among Rousselot, Dubuque Inc., the City of Dubuque and the
IEDA; and
Whereas, Contract Amendment One to the Contract, a copy of which is attached
hereto, was approved by the IEDA on February 19, 2016, reflecting a revision of the
Project Completion Date from August 31, 2015 to December 31, 2016; and
Whereas, the City of Dubuque is required to consent to any amendment to the
Contract; and
Whereas, the City Council finds that consent to the amendment is in the best
interest of the City of Dubuque.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That Contract Amendment One to Contract Number 13 -TC -006 is hereby
approved.
Section 2. That the Mayor is hereby authorized and directed to execute Contract
Amendment One amendment on behalf of the City of Dubuque and forward the executed
copy to the Iowa Economic Development Authority for its approval.
Passed, approved, and adopted this 21st day of Mar , 2016.
Ric W. 4o e , It ayor Pro -Tem
Attest:
Kevin S. Firnstahl, Cite, Jerk
CONTRACT AMENDMENT
BUSINESS: Rousselot Dubuque, Inc.
CONTRACT NUMBER: 13 -TC -006
AMENDMENT NUMBER: One
EFFECTIVE DATE: February 19, 2016
THIS CONTRACT AMENDMENT is made by and between the IOWA ECONOMIC
DEVELOPMENT AUTHORITY (IEDA), 200 East Grand Avenue, Des Moines, IA 50309, and
Rousselot Dubuque, Inc. (Recipient), 2350 Kerper Blvd, Dubuque, IA 52001, and the City of
Dubuque (Community), 50 West 13th Street, Dubuque, IA 52001.
WHEREAS, the Business requested an extension of their Project Completion Date, and
WHEREAS, the IEDA BOARD approved a sixteen (16) month extension, effective as of the
Effective Date stated above, and
NOW, THEREFORE, the Contract referenced above is amended as follows:
1. REVISION OF ARTICLE 2: DEFINITIONS, is amended as follows:
"Project Completion Date"
applicable requirements must be met. The specific date on which the project completion period
ends is identified in Exhibit D is the date by which all Project activities shall be satisfactorily
completed as specified in Exhibit D "Job Obligations."
Except as otherwise revised above, the terms, provisions, and conditions of Contract Number 13 -TC -
006 remain unchanged and are in full force and effect:
ROUSSELOT DUBUQUE, INC.: FOR IEDA:
SIGNATURE
PRINT/TYPE NAME, TITLE
FOR MUNITY:
SIGNATURE
Ric W. Jones, Mayor
PRINT/TYPE NAME, TITLE
Pro -Tem
Deborah V. Durham, Director
1
EXHIBIT D—JOB OBLIGATIONS
Revised.February 19,2016
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Recipient: Rousselot Dubuque, Inc.
Community: City of Dubuque
Contract Number: 13-TC-006
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This Project has been awarded benefits from the Enterprise Zone(EZ)Program. The chart below outline the contractual job
obligations related to this Project.
Data in the`Employment Base"column has been verified by the Authority 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.
ENTERPRI E ZONE JOB OBLIGATIONS Em to merit Jobs Total
� p Y
Protect Completion Date " ^ �+�'� '���D��ernber3l,2Q16 Base To`Be Created Job
Maintenance Resod Cornplefion Date " ^ + �' '^"DecernbeT 31,2018 Obligations`
Total employment at project location 72 10 82
Average Wage of total employment at project location $23.67
Qualifying Laborshed wage threshold requirement(per hr) $14.48 (90%)
Number of jobs at or above qualifying wage 72 1 10 82
Average Wage of jobs at or above qualifying wage $23.67
Notes re: Oualifying Wages
1. Bonus or commission payments are not included when calculating the Qualifying Wage rate.
2. 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 holidays,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,IEDA 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]
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Fmt.Approved 11/09