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IEDA Board Minutes - April 2020

Iowa Economic Development Authority
Telephonic Board Meeting Minutes
April 17, 2020 9:15 a.m.


Board Members Present by telephone Lisa Shimkat Tom Townsend Emily Schmitt Pankaj Monga Jennifer Cooper Linda Crookham-Hansen Mark Kittrell Chris Murray Lisa Hull Megan McKay

Ex-Officio Members Present by telephone: Jackie Smith David Barker Kenan Judge Brian Lohse Rob Denson Mark Lofgren

IEDA Staff Present by telephone: Debi Durham Rita Grimm Rick Peterson Rob Christensen Vicky Clinkscales Lisa Connell Melissa Harshbarger Jill Lippincott Alaina Santizo Jessica O’Riley Melanie King Maicie Pohlman Kanan Kappelman Paul Stueckradt Katie Rockey Jenny Klein Emily Hawkins

Others Present by telephone: Paula Hazlewood, Advance SWI Corporation Cindy Harris, Iowa Finance Authority Rick Dickinson, Greater Dubuque Brenda Dryer, Ames Chamber of Commerce Aaron DeJong, City of Urbandale Sue Foecke, Iowa Democrats

BOARD CHAIR
Welcome and Introductions
Iowa Economic Development Authority (IEDA) Board Chair Chris Murray called to order the meeting of the IEDA Board at 9:32 a.m.

Roll Call
A quorum of the IEDA Board was established with the following members present: Megan McKay, Jennifer Cooper, Mark Kittrell, Chris Murray, Linda Crookham-Hansen, Lisa Hull, Emily Schmitt, Tom Townsend, Pankaj Monga and Lisa Shimkat Ex-officio members present: David Barker, Jackie Smith, Kenan Judge, Rob Denson and Brian Lohse

Approval of Minutes – February 21, 2020 IEDA Board Meeting
MOTION: Linda Crookham-Hansen moved that the IEDA Board approve the minutes of the February 21, 2020 IEDA Board meeting, seconded by Megan McKay.

Approval of Minutes – March 25, 2020 IEDA Board Meeting
MOTION: Megan McKay moved that the IEDA Board approve the minutes of the March 25, 2020 IEDA Board meeting, seconded by Mark Kittrell. Motion carried unanimously.

Approval of Agenda – April 17, 2020 IEDA Board Meeting
MOTION: Lisa Shimkat moved that the IEDA Board approve the agenda for the April 17, 2020 IEDA Board meeting, seconded by Emily Schmitt. Motion carried unanimously.

PUBLIC COMMENT PERIOD
No comments were made

CONSENT AGENDA

120 Day Report
Arconic, Inc. – 90-day extension
Cargill Inc. – 60-day extension
Fidelity and Guaranty Life Business Services – 60-day extension
Helena Industries – 90-day extension
Hormel Foods Corporation, Progressive Processing, LLC – 60-day extension
Lincoln Savings Bank – 60-day extension
Lopez Foods Inc. – 60-day extension
Vertex Software, LLC – 6-month extension
Worley Warehousing – 60-day extension
Wright Service Corp. – 90-day extension

Compliance Report
Beth Bruening PC dba Bruening Eye Specialists: Sioux City – Request to Extend Project Completion Date
Helena Industries, LLC – Request to Delay ITC Amortization Period
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board accept the recommendations of the DDC regarding items on the Consent Agenda, seconded by Lisa Shimkat. Motion carried unanimously.

TCC AMENDMENT REQUESTS
Compliance
L8NT, LLC: Iowa City
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendation of the TCC to approve the business’ request to defer loan payments for 6 months, seconded by Megan McKay. Motion carried unanimously.

Terpenoid Therapeutics Incorporated: Coralville
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board accept the recommendation of the TCC to approve the request to consent to the sale of 51% or more of the company and not require immediate repayment as required by contract and instead increase the royalty rate from 3% to 90% with all funds received by the business, including capital raises,subject to the royalty calculation, seconded by Mark Kittrell. Motion carried unanimously.

Foundations in Learning, Inc.: Iowa City
MOTION: Lisa Shimkat moved that the Iowa Economic Development Authority Board accept the recommendation of the TCC to defer the balloon payment for 12 months, provided that the business must continue to make monthly payments, seconded by Emily Schmitt. Motion carried unanimously.

Skroot Laboratory, Inc.: Ames
MOTION: Lisa Hull moved that the Iowa Economic Development Authority Board accept the recommendation of the TCC to modify the royalty payment terms by excluding grant funds received by the business from the revenue amount on which the royalty payment calculation is based, seconded by Linda Crookham-Hansen. Motion carried unanimously.

FINANCIAL ASSISTANCE APPLICATION
Brenda Dryer of the Ames Chamber of Commerce spoke in support of Amcor Rigid Packaging’s application for financial assistance. Amcor Rigid Packaging: Ames
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award a maximum of $123,451 in Investment Tax Credits and a maximum of $49,140 in Sales, Service and Use Tax Refund, seconded by Lisa Shimkat. Roll Call vote was taken. Motion carried unanimously.

Applichem, Inc.: Council Bluffs
MOTION: Lisa Hull moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award a maximum $75,000 Targeted Jobs Withholding Credit, seconded by Megan McKay. Roll Call vote was taken. Motion carried unanimously.

Iowa Bankers Insurance and Services, Inc.: Urbandale
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award a maximum of $352,000 in Investment Tax Credits and a maximum of $358,800 in Sales, Service and Use Tax Refund, seconded by Emily Schmitt. Roll Call vote was taken. Motion carried unanimously.

TCC RECOMMENDATIONS
SBIR/STTR Outreach Program
DNP123 – DOD Project DNP123 – DOE Project MTI Biotech Juggernaut Life Sciences, LLC Shaking Earth Digital
MOTION: Pankaj Monga moved that the Iowa Economic Development Authority Board approve the Recommendation of the TCC to award up to $50,000 to each of the businesses listed above, $25,000 upon receipt of a SBIR or STTR award and $25,000 upon submission of a Phase II proposal during the 12-month period after the date of IEDA Board approval, seconded by Mark Kittrell. Motion carried unanimously.

Optical Operations/NXGenCare: Roland
MOTION: Pankaj Monga moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve a $25,000 Proof of Commercial Relevance loan with terms as follows: repayment amount is 1 times the award amount paid back at a royalty rate of 3% of total gross revenue for a calendar year with each payment due on June 1 of the following year, seconded by Lisa Shimkat. Motion carried unanimously.

Apollo Technologies: Iowa City
MOTION: Pankaj Monga moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve a $25,000 Proof of Commercial Relevance loan with terms as follows: repayment amount is 1 times the award amount paid back at a royalty rate of 3% of total gross revenue for a calendar year with each payment due on June 1 of the following year, seconded by Emily Schmitt. Motion carried unanimously.

TradeLabs: Iowa City
MOTION: Pankaj Monga moved, seconded by Lisa Shimkat, that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve a $25,000 Proof of Commercial 4 Relevance loan with terms as follows: repayment amount is 1 times the award amount paid back at a royalty rate of 3% of total gross revenue for a calendar year with each payment due on June 1 of the following year with a requirement that TradeLabs apply $21,000 of the funding for software development and legal expenses to investigate FINRA compliance issues. Motion carried unanimously.

Member MarketPlace/ShopWhereILive: Iowa City
MOTION: Pankaj Monga moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve a $25,000 Proof of Commercial Relevance loan with terms as follows: repayment amount is 1 times the award amount paid back at a royalty rate of 3% of total gross revenue for a calendar year with each payment due on June 1 of the following year, seconded by Megan McKay. Motion carried unanimously.

Eagle’s Catch: Ellsworth
MOTION: Pankaj Monga moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve a $100,000 Demonstration Fund loan with loan terms of 3% rate of interest, a 5-year loan term and a 6-month deferral of the first payment, seconded by Lisa Shimkat. Motion carried unanimously.

BROWNFIELD AND GRAYFIELD REDEVELOPMENT TAX CREDIT PROGRAM
Wilson Lofts, LP 17-BTC-01
MOTION: Lisa Shimkat moved that the Iowa Economic Development Authority Board approve amending Contract 17-BTC-01 to extend the project completion date from 30 to 63 months, seconded by Linda Crookham-Hansen. Motion carried unanimously.

Reallocation Award Recommendations – FY2020
MOTION: Emily Schmitt moved that the Iowa Economic Development Authority Board approve the Brownfield Advisory Council recommendations for reallocation of remaining FY 20 Redevelopment Tax Credits, seconded by Megan McKay. Motion carried unanimously.

INNOVATION FUND TAX CREDIT PROGRAM MOTION
Mark Kittrell moved that the Iowa Economic Development Authority Board approve applications for issuance of 48 tax credit certificates, seconded by Lisa Shimkat. Motion carried unanimously.

ELECTION OF OFFICERS AND COMMITTEES APPOINTMENTS
Election of IEDA Board Chair and Vice Chair
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board reelect Chris Murray to serve as Board Chair and Jennifer Cooper to serve as Board Vice-Chair effective upon adjournment of this meeting through the April 2021 Board Meeting, seconded by Emily Shimkat. Motion carried unanimously.

Reappointment of Due Diligence Committee
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board reappoint Mark Kittrell, Jennifer Cooper, Linda Crookham-Hansen, Lisa Hull, Megan McKay and Chris Murray to a six-person DDC through the April 2021 Board meeting, seconded by Lisa Shimkat. Motion carried unanimously.

Reappoint Technology Commercialization Committee and Brownfield Redevelopment Advisory Committee
MOTION: Lisa Shimkat moved that the Iowa Economic Development Authority Board reappoint Pankaj Monga to serve on the TCC and Emily Schmitt to serve on the Brownfield Redevelopment Advisory Council, both through the April 2021 Board Meeting, seconded by Mark Kittrell. Motion carried unanimously.

Reappointment Finance Committee and Rules Review
MOTION: Emily Schmitt moved that the Iowa Economic Development Authority Board reappoint Lisa Shimkat and Tom Townsend to a two-person Finance Committee and Linda Crookham-Hansen to Rules Review, through the April 2021 Board Meeting, seconded by Mark Kittrell. Motion carried unanimously.

OTHER BUSINESS
The next Iowa Economic Development Authority Board meeting will be held telephonically on Friday, May 22, 2020 at 9:30 a.m. at 1963 Bell Avenue, Des Moines, IA 50315.

ADJOURNMENT
There being no further business at the meeting of the Iowa Economic Development Authority Board, MOTION: Mark Kittrell moved that the IEDA Board adjourn, seconded by Jennifer Cooper. Motion carried unanimously. Meeting adjourned at 10:25 a.m.

Melanie King, Board Administrator; Chris Murray, IEDA Board Chair

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