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IEDA Board Minutes - January 2019

Iowa Economic Development Authority

Board Meeting Minutes

January 25, 2019

10:00 a.m.

Board Members Present:

Jennifer Cooper

Lisa Hull

Chris Murray

Mark Kittrell

Linda Crookham-Hansen

Megan McKay

Dan White

Emily Schmitt

Ex-Officio Members Present:

Rob Denson

IEDA Staff Present:

Rita Grimm

Terry Roberson

Debi Durham

Vicky Clinkscales

Alaina Santizo

Kristin Hanks-Bents

Melanie King

Paul Stueckradt

Brian Selinger

Jenny Klein

Maicie Pohlman

Jessica O’Riley

Nichole Hansen

Rick Petersen

Brooke Miller

Others Present:

Dan McDonald, Greater Dubuque Development

David Maahs, GDMP

Kim Norvell, Des Moines Register

Ron Robinson, LSA

Tony Hogan, Kreg Enterprises, Inc.

Dave Eppert, Kreg Enterprises, Inc.

Gregg Fuerstenberg, JLL / NTE

Joe McMullen, Kreg Enterprises, Inc.

Derek Lord, City of Ankeny

Susan Hatten, Holmes Murphy & Assc., Inc.

Jake Heard, Senate Republicans

board chair

  • Welcome and Introductions

Iowa Economic Development Authority Board Chair Jennifer Cooper called to order the meeting of the IEDA Board at 10:00 a.m.

  • Roll Call

A quorum of the Board was established with the following Board members present: Chris Murray, Jennifer Cooper, Lisa Hull, Linda Crookham-Hansen, Dan White, Mark Kittrell, Emily Schmitt and Megan McKay

Ex-Officio member present: Rob Denson

Approval of Minutes – December 21, 20198, IEDA Board Meeting

MOTION: Chris Murray moved that the IEDA Board approve the minutes of the December 21, 2018 IEDA Board meeting, seconded by Dan White. Motion carried unanimously.

Approval of Agenda – January 25, 2019 IEDA Board Meeting

MOTION: Dan White moved that the IEDA Board approve the agenda, seconded by Chris Murray. Motion carried unanimously.

Public Comment PeriodNo comments were made.

Compliance

120 Day Report

3M Company: 60-day extension

Chamness Biodegradables, LLC:  90-day extension

Hormel Foods: 30-day extension

Timberline Manufacturing: 30-day extension

Sioux City Brick & Tile Company: Rescind the award

MOTION: Chris Murray moved that the Iowa Economic Development Authority Board approve

extensions of the contract execution deadlines and contract rescission as recommended by Staff, seconded by Dan White. Motion carried unanimously.

               

COMPLIANCE REPORT

Sioux-Preme Packaging Company: Sioux Center – Request to Amend Budget and Tax Credit Benefits

MOTION: Chris Murray moved that the Economic Development Authority Board approve the request to reduce the budget from $29 million to $27 million, reduce the maximum Sales, Service and Use Tax Refund from $429,000 to $381,000 and reduce the maximum award of Investment Tax Credits from $465,403 to $432,285, seconded by Dan White. Motion carried unanimously.

Bomgaars Supply, Inc.: Sioux City – Request to Amend Maintenance Period

MOTION:  Dan White moved that the Economic Development Authority Board approve the request to extend the Maintenance Period through December 31, 2019, seconded by Chris Murray.  Motion carried unanimously.

CharNor, Inc.: Davenport – Request to Extend Project Completion Date

MOTIONChris Murray moved that the Economic Development Authority Board approve the request to extend the Project Completion Date through November 30, 2019, seconded by Dan White.  Motion carried unanimously.

Design Mill, Inc.: Dubuque – 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 Dan White. Motion carried unanimously.

HF Chlor-Alkali, LLC: Eddyville – Request to Terminate Contract

MOTION: Dan White moved that the Economic Development Authority Board approve the request for mutual termination of the contract, seconded by Chris Murray. Motion carried unanimously. 

Parametric Studio, Inc.: Ames – Request to Amend Contract Terms

MOTION: Chris Murray moved that the Economic Development Authority Board accept the recommendation of the Technology Commercialization Committee to approve the request to exclude grant funds from the revenue totals used to calculate royalty payments, seconded by Mark Kittrell.  Motion carried unanimously. 

iConnect Corporation: Cedar Rapids – Request to Amend Contract Terms

MOTION: Chris Murray moved that the Economic Development Authority Board accept the TCC’s recommendation to approve the request to defer payments to April 1, 2019, seconded by Dan White.  Motion carried unanimously.

Financial Assistance Applications

AWOL Outdoors, Inc. dba CAMP365:  Albia

MOTION: Lisa Hull moved that the Economic Development Authority Board approve a $250,000 forgivable loan, a $250,000 5-year loan at 0% interest, and a maximum award of $177,300 in Investment Tax Credits and $37,500 in Sales, Service and Use Tax Refund, provided that, prior to disbursement, the business must provide documentation that it offers a qualified employee benefit plan, seconded by Chris Murray. Roll Call was taken. Motion carried unanimously.

RACOM Corporation: Marshalltown

MOTION: Chris Murray moved that the Economic Development Authority Board approve a maximum award of $22,000 in Investment Tax Credits and $168,000 in Sales, Service and Use Tax Refund, seconded by Dan White. Roll Call was taken.  Motion carried unanimously.

Sammons Financial Group and its Subsidiaries Midland National Life Insurance Group and North American Company for Life and Health Insurance: West Des Moines

MOTION: Megan McKay moved that the Economic Development Authority Board approve a maximum award of $2,440,000 in Insurance Premium Tax Credits and $1,380,000 in Sales, Service and Use Tax Refund, seconded by Chris Murray. Roll Call was taken.  Motion carried unanimously.

ADOPTION OF REVISED SUFFICIENT BENEFITS REQUIREMENTS FOR PROGRAM ELIGIBILITY

MOTION:  Chris Murray moved that the Economic Development Authority Board accept Staff’s recommendation for revisions to the employee benefits requirements that businesses must meet to be eligible for assistance through the High-Quality Jobs Program, seconded by Dan White.  Motion carried unanimously.

IOWA RIVER LANDING REINVESTMENT DISTRICT REQUEST DEADLINE EXTENSION

MOTION: Chris Murray moved that the Economic Development Authority Board approve extending the deadline from June 20, 2018 to January 11, 2019 for the City of Coralville to provide documentation that the City has closed on financing for the Arena, Iowa Fitness & Sports Performance Institute and Retail/Museum projects and that is has secured financing for the remaining projects in the District, seconded by Dan White. Motion carried unanimously.

TCC RECOMMENDATIONS

SBIR/STTR Program Outreach

MOTION: Chris Murray moved that the Economic Development Authority Board accept the recommendation of the TCC to approve up to $50,000 in financial assistance to each of the businesses listed, $25,000 upon receipt of an SBIR or STTR award and $25,000 upon submission of a Phase II proposal, seconded by Dan White.  Motion carried unanimously.

Firefly Photonics, LLC – Iowa City

MOTION: Dan White moved that the Economic Development Authority Board accept the recommendation of the TCC to approve a $25,000 Proof of Commercial Relevance (POCR) Award to be repaid through royalties under the following terms:  repayment amount is the award amount paid back at a royalty rate of 3% of total gross revenue for the calendar year with each payment due June 1 of the following calendar year, seconded by Chris Murray. Motion carried unanimously.

Shaking Earth Digital – West Liberty

MOTION: Chris Murray moved that the Economic Development Authority Board accept the TCC’s recommendation to deny the request for POCR Award, seconded by Dan White. Motion carried unanimously.

ECR Logic, LLC – Iowa City

MOTION: Chris Murray moved that the Economic Development Authority Board accept the TCC’s recommendation to approve a $100,000 Demonstration Fund Award under the following terms:  repayment amount is 1.33 times the award amount paid back at a royalty rate of 3% of total gross revenue for the calendar year with each payment due June 1 of the following calendar year, seconded by Dan White.  Motion carried unanimously.

Ag Manufacturing and Technology - Prole

MOTION: Chris Murray moved that the Economic Development Authority Board accept the TCC’s recommendation deny the application for a $250,000 Innovation Acceleration-Propel Award, seconded by Dan White. Motion carried unanimously.

APPOINTMENT OF TECHNOLOGY COMMERCIALIZATION COMMITTEE MEMBER

MOTION:  Due to the incapacity of a member of the TCC whose term ends December 31, 2020, Chris Murray moved that the Economic Development Authority Board appoint Hank Norem to complete the term,  seconded by Dan White.  Motion carried unanimously.    

BROWNFIELDS AND GRAYFIELDS REDEVELOPMENT TAX CREDIT PROGRAM

GLD Properties, LLC

MOTION: Chris Murray moved that the Economic Development Authority Board accept the recommendation of the Brownfield Advisory Council to approve amending Contract 16-BTC-03 to extend the project completion period from 39 to 43 months and to decline to entertain additional requests for extensions, seconded by Dan White. Motion carried unanimously.

J Development Company, LLC

MOTION: Chris Murray moved that the Economic Development Authority Board approve the request by J Development Company, LLC, to assign Contract 18-BTC-09 to Motor Mark, LLC, seconded by Dan White.  Motion carried unanimously.

MOTION:  Dan White moved that the Economic Development Authority Board approve the request by J Development Company to assign Contract 18-BTC-10 to Historic Hospital, LLC, seconded by Mark Kittrell.  Motion carried unanimously.

AMENDMENT TO RENEWABLE CHEMICAL PRODUCTION TAX CREDIT RULES

MOTION: Chris Murray moved that the Economic Development Authority Board authorize IEDA Staff to file Notice of Intended Action for Amendment to Renewable Chemical Tax Credit Rules, seconded by Dan White.  Motion carried unanimously.

                    

INNOVATION FUND INVESTMENT TAX CREDIT

MOTION: Chris Murray moved that the Economic Development Authority Board approve the issuance of six Tax Credit Certificates as recommended by IEDA Staff, seconded by Dan White.  Motion carried unanimously.

AMEND ENERGY CONTRACT WITH THE ENERGY GROUP TO INCREASE BUDGET

MOTION: Chris Murray moved that the Economic Development Authority Board approve amending the contract with The Energy Group to increase the budget from $36,650 to $63,650 to expand the Industrial Energy Pilot Project from 3 industrial companies to 5 such companies, seconded by Dan White. Motion carried unanimously.

VENDOR AND CONTRACT AMOUNT APPROVAL – ENDOW IOWA PROGRAM

MOTION: Chris Murray moved that the Economic Development Authority Board approve entering into a contract with the Iowa Council of Foundations per the term listed in the request for proposal entitled “State of Iowa’s Endow Iowa Program” issued for general release on September 27, 2018, seconded by Dan White.  Motion carried unanimously.

Other Business

The next IEDA Board meeting will be held on Friday, January 18, 2019 @ 9:30 a.m.

Adjournment

There being no further business at the meeting of the Iowa Economic Development Authority Board,

MOTION: Dan White moved that the IEDA Board adjourn, seconded by Chris Murray. Motion carried unanimously. Meeting adjourned at 10:55 a.m.

Melanie King                                                     Jennifer Cooper

Board Administrator                                       IEDA Board Chair

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