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IEDA Board Minutes - February 2019

Iowa Economic Development Authority

Board Meeting Minutes

February 22, 2019

10:09 a.m.

Board Members Present:

Jennifer Cooper

Lisa Hull

Chris Murray

Megan McKay

Linda Crookham-Hansen

David Bernstein

Mark Kittrell

Dan White

Doane Chilcoat

Ex-Officio Members Present:

Representative Brian Lohse

IEDA Staff Present:

Rita Grimm

Terry Roberson

Debi Durham

Vicky Clinkscales

Alaina Santizo

Kristin Hanks-Bents

Melanie King

Paul Stueckradt

Maicie Pohlman

Jenny Klein

Others Present:

Dan McDonald, Greater Dubuque Development

Steve Shupp, Alliant Energy

Kevin Hardy, Des Moines Register

Ron Robinson, LSA

Charles Brettell, Prosody Consulting, LLC

Brenda Dryer, Ames EDC

Tami Petsche, Quad Cities Economic Dev.

Dan Culhane, Ames EDC

Susanne Knutsen, City of Davenport

Beth Bilyeu, Forest City ED

board chair

  • Welcome and Introductions

Iowa Economic Development Board Chair Jennifer Cooper called to order the meeting of the IEDA Board at 10:09 a.m.

  • Roll Call

A quorum of the Board was established with the following Committee members present: Chris Murray, David Bernstein, Jennifer Cooper, Lisa Hull, Linda Crookham-Hansen, Mark Kittrell, Doane Chilcoat, Mark Kittrell and Megan McKay

Ex-Officio member present:  Representative Brian Lohse

Approval of Minutes – January 25, 2019 IEDA Board Meeting

MOTION: Chris Murray moved that the Iowa Economic Development Board approve the minutes of the January 25, 2019 IEDA Board meeting, seconded by Lisa Hull. Motion carried unanimously.

Approval of Agenda – February 22, 2019 IEDA Board Meeting

MOTION: Chris Murray moved that the Economic Development Authority Board approve the February 22, 2019 agenda, seconded by Mark Kittrell. Motion carried unanimously.

Public Comment PeriodTami Petsche of Quad Cities Economic Development thanked the Board for assistance to the Quad Cities area.

Compliance

120 Day Report

Hormel Foods Corporation: 60-day extension

Smart Ag, Inc.: 30-day extension

MOTION: Chris Murray moved that the Iowa Economic Development Authority Board approve extensions of the contract execution deadlines for Hormel Foods Corporation and Smart Ag, Inc., as recommended by Staff, seconded by Megan McKay. Motion carried unanimously.

Compliance Report

Gavilon Ingredients, LLC: Council Bluffs – Request for Contract Termination and Negotiated Settlement

MOTION: Chris Murray moved that the Economic Development Authority Board approve the request to take into consideration the fact that the amount of tax incentives for which the business would have qualified based on the creation of 3 qualified jobs is more than the amount of tax incentives claimed to date and agree to waive repayment of tax incentives claimed to date and terminate the contract, seconded by Lisa Hull. Motion carried unanimously.

Superior Industrial Mechanical, Inc.: Sioux City – Request to Add Contracting Entity

MOTION:  Lisa Hull moved that the Economic Development Authority Board approve the request to amend the award to add Rohan Properties, LLC as a recipient and contracting entity, seconded by Linda Crookham-Hansen.  Motion carried unanimously.

American Packaging Corporation: Story City – Request to Extend Project Completion Date

MOTIONDan White moved that the Economic Development Authority Board approve the request to extend the Project Completion Date twelve months to allow additional time to meet the job and wage requirements set forth in the contract, seconded by Chris Murray.  Motion carried unanimously.

JEDA Polymers, LLC: Dyersville – Request to Extend Project Completion Date

MOTION: Chris Murray moved that the Economic Development Authority Board approve the request for a third 12-month extension of the Project Completion Date and to direct staff to notify the Business that no further requests for extensions will be entertained, seconded by Linda Crookham-Hansen. Motion carried unanimously.

Financial Assistance Applications

Carleton Life Support dba Cobham Mission Systems: Davenport

MOTION: Linda Crookham-Hansen moved that the Economic Development Authority Board approve awarding a $400,000 Forgivable Loan; a maximum of $400,000 in Investment Tax Credits; a maximum of $124,875 in Sales, Service and Use Tax Refund; and a maximum of $569,935 in Research Activities Credit, seconded by Chris Murray. Roll Call was taken. Motion carried unanimously.

Dupaco Voices LLC; Dupaco RE Management LLC; Dupaco Holding, LLC; and Dupaco Community Credit Union:  Dubuque

MOTION: Chris Murray moved that the Economic Development Authority Board approve awarding a maximum of $750,000 in Sales, Service and Use Tax Refund, seconded by Linda Crookham-Hansen. Roll Call was taken.  Motion carried unanimously.

ReadiFuels-Iowa, LLC:  Sioux County

MOTION: Megan McKay moved that the Economic Development Authority Board approve awarding a maximum of $2,377,500 in Investment Tax Credits and a maximum of $429,000 in Sales, Service and Use Tax Refund, seconded by Dan White. Roll Call was taken.  Motion carried unanimously.

Vertex Software, LLC:  Ames

MOTION: Chris Murray moved that the Economic Development Authority Board approve awarding a $750,000 Forgivable Loan; a $750,000 loan; a maximum of $75,000 in Investment Tax Credits; a maximum of $600,000 in Sales, Service and Use Tax Refund; and a maximum of $1,250,000 in Research Activities Credit, seconded by Doane Chilcoat. Roll Call was taken.  Motion carried unanimously.

Winnebago Industries, Inc.:  Forest City

MOTION: Chris Murray moved that the Economic Development Authority Board approve awarding a maximum of $265,000 in Investment Tax Credits and a maximum of $96,000 in Sales, Service and Use Tax Refund, seconded by Lisa Hull. Roll Call was taken.  Motion carried unanimously.

RULES AMENDMENTS

Iowa Export Trade Assistance Program

MOTION: Chris Murray moved that the Economic Development Authority Board approve filing adopted amendments to 261 IAC Chapter 72, Iowa Export Trade Assistance Program, seconded by Mark Kittrell.  Motion carried unanimously.

Workforce Housing Tax Incentives Program

MOTION: Chris Murray moved that the Economic Development Authority Board approve filing Notice of Intended Action for amendments to 261 IAC Chapter 48, Workforce Housing Tax Incentives Program, seconded by Dan White.  Motion carried unanimously.

Targeted Jobs Withholding Tax Credit Program and Innovation Fund Investment Tax Credit Program

MOTION: Mark Kittrell moved that the Economic Development Authority Board approve filing a Notice of Intended Action for amendments to the Targeted Jobs Withholding Tax Credit Program rules and the Innovation Fund Investment Tax Credit Program rules, seconded by Linda Crookham-Hansen.  Motion carried unanimously.

Regional Sports Authority District

MOTION:  Chris Murray moved that the Economic Development Authority Board approve filing a Notice of Intended Action for amendments to Regional Sports Authority District Rules, seconded by Lisa Hull.  Motion carried unanimously.

INNOVATION FUND INVESTMENT TAX CREDIT CERTIFICATES

MOTION: Chris Murray moved that the Economic Development Authority Board approve issuance of 8 tax credit certificates, seconded by Megan McKay.  Motion carried unanimously.

ANGEL INVESTOR TAX CREDIT PROGRAM

            A.  Amend Award Due to Error in Investment Amount Used to Calculate Award

MOTION: Chris Murray moved that the Economic Development Authority Board approve amending the award amount from $3,502 to $1,409 and approve issuing a tax credit certificate to the investor for that amount, seconded by Linda Crookham-Hansen.  Motion carried unanimously.

B.  Amend Award Due to Rounding Error

MOTION: Chris Murray moved that the Economic Development Authority Board approve amending awards to 33 Angel Investors in Accelerated Ag Technologies from $1,408 per investor to $1,409 per investor and approve issuing a tax credit certificate to each investor for that amount, seconded by David Bernstein.  Motion carried unanimously.

C.  Rescind Awards to Comply with Calendar Year Tax Credit Cap on Awards to Investors in a Single Qualifying Business

MOTION:  Chris Murray moved that the Economic Development Authority Board rescind approvals made in 2018 awarding a total of $281,299 in Angel Investor Tax Credits for investments in Accelerated Ag Technologies and rescind approvals to issue 18 tax credit certificates for those investments, seconded by Linda Crookham-Hansen.  Motion carried unanimously.

D.  Amend Award to Investor in Web Care Health Due to Previous Amendments and Rescission Resulting in Availability of Tax Credits under the FY19 Cap

MOTION: David Bernstein moved that the Economic Development Authority Board approve amending the award of tax credits to one investor in Web Care Health from $3,819 to $13,012 and approve issuance of a tax credit certificate to the investor for that amount, seconded by Chris Murray.  Motion carried unanimously.

E.  Award Tax Credits to Investors Due to Previous Amendments/Rescission Resulting in Availability of Tax Credits under the FY19 Cap

MOTION: David Bernstein moved that the Economic Development Authority Board approve awards totaling $274,166 in tax credits for investments in Qualified Businesses made by 19 investors and approve issuance of 19 tax credit certificates to the investors, seconded by Mark Kittrell.  Motion carried unanimously.

F.  Awards to Investors in Accelerated Ag Technologies Whose Awards Were Rescinded and Place Investors on Waiting List for FY20

MOTION:  Chris Murray moved that the Economic Development Authority Board approve awarding a total of $281,299 in Angel Investor Tax Credits to 18 investors in Accelerated Ag Technologies and approve placing the investors on a waiting list for issuance of tax credit certificates on or after July 1, 2019, seconded by David Bernstein.  Motion carried unanimously.

Other Business

The next IEDA Board meeting will be held on Friday, March 29, 2019 at 9:30 a.m.

Adjournment

There being no further business at the meeting of the IEDA Board,

MOTION: Chris Murray moved that the IEDA Board adjourn, seconded by Dan White. Motion carried unanimously. Meeting adjourned at 11:18 a.m.

Melanie King                                          Jennifer Cooper

Board Administrator                                   IEDA Board Chair

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