Our Agency
IEDA Board Minutes - July 2019
Iowa Economic Development Authority
Board Meeting Minutes
July 19, 2019
9:30 a.m.
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Board Members Present: |
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Jennifer Cooper |
Linda Crookham-Hansen |
Mark Kittrell |
Megan McKay |
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Pankaj Monga |
Tom Townsend |
Doane Chilcoat |
Lisa Shimkat |
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Ex-Officio Members Present: |
David Barker |
Senator Mark Lofgren |
Representative Kenan Judge |
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IEDA Staff Present: |
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Rita Grimm |
Terry Roberson |
Debi Durham |
Vicky Clinkscales |
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Alaina Santizo |
Jessica O’Riley |
Melanie King |
Maicie Pohlman |
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Jacque Matsen |
Paul Stueckradt |
Katie Rockey |
Kristin Hanks-Bents |
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Others Present: |
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Dan McDonald, Greater Dubuque Development |
Mary Lasky, NeXT1, Inc. |
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Ryan Carroll, Greater Des Moines Partnership |
Ron Robinson, LSA |
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Naomi Hamlett, City of Des Moines |
Sue Foecke, Iowa Senate Democrat Staff |
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Jessica Flannery, Iowa House Democrats |
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BOARD VICE chair
- Welcome and Introductions
Iowa Economic Development Authority Board Vice Chair Jennifer Cooper called to order the meeting of the IEDA Board at 9:34 a.m.
- Roll Call
A quorum of the IEDA Board with the following members present: Jennifer Cooper, Linda Crookham-Hansen, Mark Kittrell, Megan McKay Tom Townsend, Doane Chilcoat, Lisa Shimkat and Pankaj Monga
Ex-officio present: David Barker, Kenan Judge and Mark Lofgren
Approval of Minutes – June 21, 2019 IEDA Board Meeting
MOTION: Jennifer Cooper moved that the IEDA Board approve the minutes of the June 21, 2019 Iowa Economic Development Authority Board meeting, seconded by Linda Crookham-Hansen. Motion carried unanimously.
Approval of Agenda – July 19, 2019 Iowa Economic Development Authority Meeting
MOTION: Linda Crookham-Hansen moved that the IEDA Board approve the agenda for the July 19, 2019 Iowa Economic Development Authority Board meeting, seconded by Jennifer Cooper. Motion carried unanimously.
Public Comment Period: No comments were made.
Compliance
120 Day Report
Chamness Biodegradables, LLC: 90-day extension and, if not received within this period, rescind award
Iowa Fluid Power/EHA Blaire’s Buildings: 30-day extension
Vertex Software, LLC: 30-day extension
Northern Tool & Equipment Company: 120-day extension
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board approve the extensions of the contract execution deadlines as recommended by the DDC, seconded by Lisa Shimkat. Jennifer Cooper abstained from voting regarding the extension of Northern Tool & Equipment Company’s deadline to return a signed contract to IEDA. Motion carried.
Compliance Report
Nationwide Mutual Insurance Company: Des Moines – Request for Negotiated Settlement
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board approve the request for contract termination, provided that the business will repay $2,932,455 in tax credits and it can claim no additional tax credits, seconded by Megan McKay. Motion carried unanimously.
Spencer NF, Inc.: Spencer - Request Negotiated Settlement
MOTION: Lisa Shimkat moved that the Iowa Economic Development Authority Board approve the request for a negotiated settlement with terms as follows: proportionate reduction of the award of Investment Tax Credit and Research Activities Credit; the business may retain the Sales, Service and Use Tax Refund awarded, all of which has been claimed; it will claim no additional credits; the Project Completion Date is amended to July 31, 2019; and the business will maintain the 6 qualified jobs it has created through a two-year maintenance period ending July 31, 2021, seconded by Linda Crookham-Hansen. Motion carried unanimously.
Glycerin Group, LLC dba KemX Global: Boone – Contract Termination
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board approve the request for a mutual termination of the contract, seconded by Tom Townsend. Motion carried unanimously.
TCC Amendment Requests
ECR Logic, LLC: Iowa City – Request to Amend Contract Terms
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to modify the royalty calculation terms as requested by the business, seconded by Megan McKay. Motion carried unanimously.
IAM AgTech, LLC: Ottumwa – Request to Amend Contract Terms
MOTION: Megan McKay moved that the Economic Development Authority Board approve the recommendation of the TCC to modify the royalty calculations as requested by the business, seconded by Lisa Shimkat. Motion carried unanimously.
Blue-9, LLC: Maquoketa – Request to Amend Contract Terms
MOTION: Linda Crookham-Hansen moved that the Economic Development Authority Board approve the recommendation of the TCC to approve the request to subordinate IEDA’s position to Premier Bank for an additional $50,0000 line of credit, seconded by Pankaj Monga. Motion carried unanimously.
Military Cost Cutters, LLC: Davenport – Request to Amend Contract Terms
MOTION: Lisa Shimkat moved, seconded by Linda Crookham-Hanson, that the Economic Development Authority Board approve the recommendation by the TCC to approve the request to amortize the balloon payment over 18 months, with payments of $1,000 per month for 12 months and 6 payments of $1,869/month. Motion carried unanimously.
Finkle & Sons d/b/a/ the Oh Ball: West Des Moines – Request to Amend Contract Terms
MOTION: Megan McKay moved that the Economic Development Authority Board approve the recommendation of the TCC to approve the request for payment deferral through December 31, 2019, seconded by Linda Crookham-Hansen. Motion carried unanimously.
Viewpoint Molecular Targeting, LLC: Coralville – Request to Amend Contract Terms
MOTION: Linda Crookham Hansen moved that the Economic Development Authority Board approve the recommendation by the TCC to convert the royalty to a loan with terms as follows: a 36 month loan term with interest at 3%, seconded by Megan McKay. Motion carried unanimously.
Financial Assistance Applications
Crown Holdings, Inc. and Subsidiaries / Crown Cork & Seals USA, Inc.: Dubuque
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board approve awarding a maximum of $250,000 in a forgivable loan, a maximum of $187,297 in Investment Tax Credits; and a maximum of $52,271 in Sales, Service and Use Tax Refund, seconded by Pankaj Monga. Roll Call vote was taken. Motion carried unanimously.
Grip-Tite Manufacturing Company, LLC: Winterset
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board approve awarding a maximum forgivable loan of $100,000 and a maximum 5 year, 0% interest Loan of $100,000, seconded by Tom Townsend. Roll Call vote was taken. Motion carried unanimously.
Helena Industries, LLC: Des Moines
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board approve awarding a maximum of $370,000 in Investment Tax Credits and a maximum of $750,000 in Sales, Service and Use Tax Refund, seconded by Pankaj Monga. Roll Call vote was taken. Motion carried unanimously.
NeXT1, Inc.: Des Moines
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board approve awarding a maximum forgivable loan of $100,000 and a maximum 5 year, 0% loan of $100,000, contingent upon approval by the City of Des Moines of a sufficient match, seconded by Lisa Shimkat. Roll Call vote was taken. Motion carried unanimously.
Mark Kittrell left the meeting at 9:50 a.m.
TCC RECOMMENDATIONS
SBIR/STTR Outreach Program
Sublime Stericeuticals Corporation
VerdiLife, LLC
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board approve an award up to $50,000 to each of the businesses listed above, $25,000 upon receipt of SBIR/STTR award and $25,000 upon submission of Phase II proposal during the 12-month period after the date of the IEDA Board approval as recommended by the TCC, seconded by Lisa Shimkat. Motion carried unanimously.
Home Painter, LLC: Altoona
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to award a $25,000 Proof of Commercial Relevance (POCR) award to be repaid through royalty payments of 3% of total gross revenue for a calendar year with each payment due June 1 of the following calendar year, seconded by Megan McKay. Motion carried unanimously.
Trigger Interactive, LLC: LeClaire
MOTION: Lisa Shimkat moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to award a $25,000 Proof of Commercial Relevance (POCR) award to be repaid through royalty payments of 3% of total gross revenue for a calendar year with each payment due June 1 of the following calendar year, seconded by Linda Crookham-Hansen. Motion carried unanimously.
MakUSafe Corporation: West Des Moines
MOTION: Linda Crookham Hansen moved, seconded by Pankaj Monga, that the Iowa Economic Development Authority Board approve the recommendation by the TCC that the $100,000 Demonstration Fund award be repaid through royalty payments with these terms: Repayment amount is 1.33 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 1st of the following calendar year. Motion carried unanimously.
Rantizo, Inc.: Iowa City
MOTION: Tom Townsend moved, seconded by Lisa Shimkat, that the Iowa Economic Development Authority Board approve the recommendation by the TCC to award a $100,000 Demonstration Fund loan to be repaid through royalty payments with these terms: repayment amount is 1.33 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 1st of the following calendar year. Motion carried unanimously.
WorkHound, Inc.: Des Moines
MOTION: Lisa Shimkat moved, seconded by Linda Crookham-Hansen, that the Iowa Economic Development Authority Board follow the recommendation of the TCC to deny the application for a $250,000 Innovation Acceleration Propel Loan. Motion carried unanimously.
LenderClose, Inc.: West Des Moines
MOTION: Tom Townsend moved, seconded by Linda Crookham-Hansen, that the Iowa Economic Development Authority Board approve the recommendation by the TCC to award a $250,000 Innovation Acceleration Propel award be repaid through royalty payments with these terms: repayment amount is 1.33 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 1st of the following calendar year. Motion carried unanimously.
Pursuant to Iowa Code section 15.106, Pankaj Monga disclosed a conflict of interest and exited the meeting at 9:57 a.m. He did not participate in discussion or action regarding Higher Learning Technologies, Inc. See the attached copy of written notice of the conflict.
Higher Learning Technologies, Inc.: Coralville
MOTION: Megan McKay moved, seconded by Tom Townsend, that the Iowa Economic Development Authority Board follow the recommendation by the TCC to deny the application for a $400,000 Innovation Acceleration Expansion award. Motion carried unanimously.
Pankaj Monga rejoined the meeting at 9:58 a.m.
Other Business
The next IEDA Board meeting will be held on Friday, August 16, 2019 at 9:30 a.m.
Adjournment
There being no further business at the meeting of the IEDA Board,
MOTION: Lisa Shimkat moved that the Iowa Economic Development Authority Board adjourn, seconded by Linda Crookham-Hansen. Motion carried unanimously. Meeting adjourned at
10:11 a.m.
Melanie King Jennifer Cooper
Board Administrator IEDA Board Vice Chair