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IEDA Board Minutes - July 2020

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


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

Ex-Officio Members Present by telephone: Brian Lohse Rob Denson David Barker

IEDA Staff Present by telephone: Debi Durham Rita Grimm Rick Peterson Staci Hupp Ballard Vicky Clinkscales Lisa Connell Melissa Harshbarger Terry Roberson Alaina Santizo Rob Christensen Melanie King Betty Hessing Kanan Kappelman Paul Stueckradt Katie Rockey Jill Lippincott Maicie Pohlman Emily Hawkins

Others Present by telephone: Cindy Harris, Iowa Finance Authority Ron Robinson, Iowa Legislative Services Agency

BOARD CHAIR
Welcome
Iowa Economic Development Authority Board Chair Chris Murray called to order the meeting of the IEDA Board meeting at 9:30 a.m.

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

Approval of Minutes – June 19, 2020 IEDA Meeting
MOTION: Megan McKay moved that the IEDA Board approve the minutes of the June 19, 2020 IEDA Board meeting, seconded by Lisa Shimkat. Motion carried unanimously.

Approval of Agenda – July 17, 2020 IEDA Meeting
MOTION: Emily Schmitt moved that the IEDA Board approve the agenda for the July 17, 2020 IEDA Board meeting, seconded by Linda Crookham-Hansen. Motion carried unanimously.

PUBLIC COMMENT PERIOD: No comments were made.

COMPLIANCE - CONSENT AGENDA
120 Day Report Compliance Report
Lathum Pool Products, Inc. – Extend Project Completion date to June 30, 2020.
CharNor, Inc. – Request for contract termination.
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendations of the DDC regarding the items on the Consent Agenda, seconded by Linda Crookham-Hansen. Motion carried unanimously.

COMPLIANCE – TCC Recommendations
Point of Choice, LLC: Fairfield
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendation of the TCC to defer payments to June 2021, seconded by Lisa Shimkat. Motion carried unanimously.

ECR Logic, LLC: Iowa City – Proof of Commercial Relevance Loan
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendation of the TCC to defer the due date of the payment due July 1, 2020 to June 1, 2021, seconded by Emily Schmitt. Motion carried unanimously.

ECR Logic, LLC: Iowa City – Demo Fund Loan
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board accept the recommendation of the TCC to defer the due date of the first payment to June 1, 2021, seconded by Lisa Shimkat. Motion carried unanimously.

FINANCIAL ASSISTANCE APPLICATIONS
Cambrex Charles City, Inc.: Charles City
MOTION: Lisa Hull moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award $250,000 in direct financial assistance; a maximum of $225,000 in Sales, Service and Use Tax Refund; and a maximum of $19,275 in Research Activities Credit, seconded by Mark Kittrell. Roll Call vote was taken. Motion carried unanimously.

Claim DOC: West Des Moines
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award with a maximum of $210,300 in Investment Tax Credits; a maximum of $75,000 in Sales, Service and Use Tax Refund; and a maximum of $12,500 in Research Activities Credit, seconded by Lisa Hull. Roll Call vote was taken. Motion carried unanimously.

JRS Pharma LP: Cedar Rapids
MOTION: Jenny Cooper moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award a maximum of $720,000 in Investment Tax Credits; a maximum of $109,500 in Sales, Service and Use Tax Refund; and a maximum of $15,000 in Research Activities Credit, seconded by Linda Crookham-Hansen. Roll Call vote was taken. Motion carried unanimously.

ICE Manufacturing, Inc.: Oelwein
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award $250,000 in Direct Financial Assistance; $125,000 in a Forgivable Loan and $125,000 in a 5-year, 0% Loan; a maximum of $83,150 in Investment Tax Credits; a maximum of $4,200 in Sales, Service and Use Tax Refund; and a maximum of $15,000 in Research Activities Credit, seconded by Emily Schmitt. Roll Call vote was taken. Motion carried unanimously.

Jennifer Cooper disclosed a conflict of interest that necessitates recusal from consideration of and action on the request for assistance by BAE Systems Information and Electronic Systems Integration, Inc. See the attached email exchange. She left the meeting at 9:45 a.m.

BAE Systems Information and Electronic Systems Integration, Inc.: Cedar Rapids
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award a maximum of $5,750,000 in Investment Tax Credits; a maximum of $1,650,000 in Sales, Service and Use Tax Refund; and a maximum of $135,000 in Research Activities Credit, seconded by Megan McKay. Roll Call vote was taken. Motion carried unanimously.

Jennifer Cooper returned to the meeting.

TCC RECOMMENDATIONS
SBIR/STTR Outreach Program:
Oscillavent, Inc.;
Percev, LLC;
ETALYC, Inc. – Phase 2 Request ($25,000) Only;
InfraLytiks (InfoDrone, LLC dba InfraLytiks)
MOTION: Lisa Shimkat 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.

VEMTOWA dba Super Bio
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve a $25,000 Investigative Proof of Commercial Relevance loan with standard POCR royalty terms: 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 1st of the following calendar year, seconded by Mark Kittrell. Motion carried unanimously.

3D Health Solutions
MOTION: Linda Crookham-Hansen 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 standard POCR royalty terms: 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 1st of the following calendar year, seconded by Jennifer Cooper. Motion carried unanimously.

Armorloy
MOTION: Jennifer Cooper 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 standard POCR royalty terms: 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 1st of the following calendar year, seconded by Lisa Shimkat. Motion carried unanimously.

Aeroseeder
MOTION: Emily Schmitt 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 standard POCR royalty terms: 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 1st of the following calendar year, seconded by Megan McKay. Motion carried unanimously.

Mark Kittrell disclosed a conflict of interest that necessitates recusal from consideration of and action on the request for assistance by Stratafolio. See the attached email exchange. He left the meeting at 9:53 a.m.

Stratafolio MOTION: Lisa Hull moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve a $100,000 Demonstration Fund award with loan terms of 3% rate of interest, a 5-year loan term and a 6-month deferral, provided that no funds will be released until the business documents $100,000 in matching funds, seconded by Megan McKay. Motion carried unanimously.

Mark Kittrell returned to the meeting.

GrossWen Technologies
MOTION: Lisa Shimkat moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve a $250,000 Innovation Acceleration Propel fund award with loan terms of 3% rate of interest, a 5-year loan term and a 6-month deferral, award contingent on the repayment of the balance of the POCR and Demonstration Fund loans within 60 days of the award date, seconded by Megan McKay. Motion carried unanimously.

Pankaj Monga disclosed a conflict of interest that necessitates recusal from consideration of and action on the request for assistance by Higher Learning Technologies. See the attached email exchange. He left the meeting at 9:56 a.m.

Higher Learning Technologies
MOTION: Emily Schmitt moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve a $400,000 Innovation Acceleration Expansion Fund award with loan terms of 3% rate of interest, a 5-year loan term, 6-month deferral, and repayment in full required upon closing a funding round subsequent to Board approval, contingent upon repayment of Propel loan balance within 60 days of award date, seconded by Megan McKay. Motion carried unanimously.

AMENDMENTS TO RULES
Renewable Chemical Production Tax Credit Program
MOTION: Lisa Shimkat moved that the Iowa Economic Development Authority Board adopt amendments to the Renewable Chemical Production Tax Credit Rules, 261 Iowa Administrative Code Chapter 81, seconded by Jennifer Cooper. Motion carried unanimously.

Welcome Centers
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board adopt amendments to the Welcome Center Rules, 261 Iowa Administrative Code Chapter 34, seconded by Lisa Shimkat. Motion carried unanimously.

Workforce Housing Tax Incentives Program
MOTION: Lisa Shimkat moved that the Iowa Economic Development Authority Board adopt amendments to the Workforce Housing Tax Incentives Program Rules, 261 Iowa Administrative Code Chapter 48, seconded by Linda Crookham-Hansen. Motion carried unanimously.

INNOVATION FUND INVESTMENT TAX CREDIT PROGRAM
MOTION: Lisa Shimkat moved that the Iowa Economic Development Authority Board approve applications for issuance of 2 Tax Credit Certificates, seconded by Mark Kittrell. Motion carried unanimously.

OTHER BUSINESS
The next IEDA Board meeting will be held telephonically on Friday, August 21, 2020 at 9:15 a.m.

ADJOURNMENT
There being no further business at the meeting of the Iowa Economic Development Authority Board, MOTION: Megan McKay moved that the IEDA Board adjourn, seconded by Lisa Shimkat. Motion carried unanimously. Meeting adjourned at 10:24 a.m.

Betty Hessing, Interim Board Administrator; Chris Murray, IEDA Board Chair

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