Green Industrial Supply, Inc. - IEDA Contract Second Amendment Copyright 2014
City of Dubuque Consent Items # 13.
ITEM TITLE: Green Industrial Supply, Inc. - IEDA Contract Second
Amendment
SUMMARY: City Manager recommending approval of a resolution
authorizing a second amendment to a contract with the Iowa
Economic Development Authority (I EDA)for Iowa Values
Funds Financial Assistance benefits on behalf of Green
Industrial Supply, Inc.
RESOLUTION Approving a Second 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 IEDA Contract 2nd Amendment-MVM City Manager Memo
Memo
Staff Memo Staff Memo
2nd Amendment Supporting Documentation
Resolution of Approval Resolutions
THE CITY OF Dubuque
DUB E i"
Masterpiece on the Mississippi 2007.2012.2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Second Amendment to State of Iowa Direct Financial Assistance Contract
for Green Industrial Supply, Inc.
DATE: September 10, 2016
Economic Development Director Maurice Jones recommends City Council approval of a
resolution authorizing a second amendment to a contract with the Iowa Economic
Development Authority for Iowa Values Funds Financial Assistance benefits on behalf
of Green Industrial Supply, Inc.
At the request of Green Industrial Supply, Inc., the State has agreed to extend the time
period forjob creation, which consequently also extends the maintenance period of
those jobs.
The project completion date will be extended to August 31, 2016, and the maintenance
Period Completion Date will be extended to August 31, 2018.
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: Second Amendment to State of Iowa Direct Financial Assistance
Contract for Green Industrial Supply, Inc.
DATE: September 7, 2016
INTRODUCTION
This memorandum presents for City Council review and approval a resolution authorizing a
second 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 a second 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 was extended from August 31, 2014 to August 31, 2015 in
the 1St Amendment and has been extended to August 31, 2016 in the 2nd Amendment.
The maintenance Period Completion Date was extended from August 31, 2016 to
August 31, 2017 in the 1St Amendment and has been extended to August 31, 2018 in
the 2nd Amendment. 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 second
amendment to financial assistance contract 12-IVF/TC-011 between IEDA and Green
Industrial Supply, Inc.
RESOLUTION NO. 323-16
APPROVING A SECOND 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, in 2011, Green Industrial Supply, Inc. (Green Industrial), the City of
Dubuque (City) and Iowa Economic Development Authority (IEDA) entered into an
Economic Development Financial Assistance Contract (the Contract) for the expansion
of Green Industrial's operations in Dubuque, Iowa; and
WHEREAS, the Contract provided fora Project Completion Date of August'31,
2014; and
WHEREAS, Green Industrial requested and IEDA approved an extension of the
Project Completion Date to August 31, 2015 in the Contract Amendment dated January
16, 2015; and
WHEREAS, Green Industrial has requested a further extension of the Project
Completion Date from August 31, 2015 to August 31, 2016; and
WHEREAS, IEDA has approved the extension of the Project Completion Date to
August 31, 2016; 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 attached hereto 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 19th day of September, 2016.
Attest:
r �
Kevi J. Lynch, Mayor Pro -Tem
Kevin Firnstahl,'Cit ,.Clerk
F:\Users\Laserfiche Legal\Green Industrial Supply\Resolution_Approving2nd Amendment_090716.docx
CONTRACT AMENDMENT
RECIPIENT: Green Industrial Supply, Inc.
CONTRACT NUMBER: 12-IVF/TC-011
AMENDMENT NUMBER: Two
EFFECTIVE DATE: May 20, 2016
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:
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, Date Deborah V. Durham, Director
PRINT NAME, TITLE Date
FOR COMMUNITY:
s A ,x/19/16
SIGNATURE, ate
Kevin J. Lynch, Mayor Pro -Tem
PRINT NAME, TITLE
EXHIBIT D—JOB OBLIGATIONS
REVISED May 2016
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.
130%JOB OBLIGATIONS Employment Jobs
Project Completion Date: August 31, X52016 Base To Be Created Job
Maintenance Period Completion Date: August 31, �Ql 7 2018 Obligations
Total employment at project location 30 16 46
Average Wage of total employment at project location $16.57
Qualifying wage threshold requirement(per hr) $20.52
Sufficient Benefits Credit( per hr) $2.05
Number of jobs at or above qualifying wage w/benefits 8 11 19
Average wage of jobs at or above qualifying wage $27.98
w/benefits
Notes re: Qualifyin2 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 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, 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].