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IEDA Board Minutes - November 2019

Iowa Economic Development Authority Board

Meeting Minutes

November 22, 2019

9:30 a.m.

Board Members Present:

Jennifer Cooper

Lisa Hull

Mark Kittrell

Megan McKay

Chris Murray

Lisa Shimkat

Doane Chilcoat

Pankaj Monga

Ex-Officio Members Present:

Kenan Judge

David Barker

Brian Lohse

IEDA Staff Present:

Rita Grimm

Lisa Connell

Jill Lippincott

Vicky Clinkscales

Alaina Santizo

Jessica O’Riley

Melanie King

Maicie Pohlman

Kanan Kappelman

Paul Stueckradt

Katie Rockey

Jenny Klein

Terry Roberson

Matt Rasmussen

Others Present:

Mike Lukan, CRMEA

Stacie LoVan, Greater Des Moines Partnership

Ron Robinson, LSA

Tim Andera, City of Waterloo

Noel Anderson, City of Waterloo

Adrienne Miller, City of Waterloo

Tyler Jett, Des Moines Register

BOARD chair

  • Welcome and Introductions

Iowa Economic Development Authority Board Chair(IEDA) Chris Murray called to order the meeting of the IEDA Board at 9:50 a.m.

  • Roll Call

A quorum of the Board was established with the following members present: Jennifer Cooper, Mark Kittrell, Chris Murray, Lisa Hull, Megan McKay, Doane Chilcoat, Pankaj Monga and Lisa Shimkat

Ex-officio members present: Brian Lohse, David Barker and Kenan Judge

Approval of Minutes – October 18, 2019 IEDA Board Meeting

MOTION: Doane Chilcoat moved that the IEDA Board approve the minutes of the October 18, 2019 IEDA Board meeting, seconded by Lisa Shimkat. Motion carried unanimously.

Approval of Agenda – November 22, 2019 IEDA Board Meeting

MOTION: Jennifer Cooper moved that the IEDA Board approve the agenda for the November 22, 2019 IEDA Board meeting, seconded by Doane Chilcoat. Motion carried unanimously.

Public Comment PeriodNo comments were made.

Compliance

120 Day Report

Helena Industries: 60-day extension

Kraft Heinz Foods Company:  30-day extension

Northern Tool & Equipment Company: 90-day extension

Weverskade B.V./Lely North America: 90-day extension

NeXT1, Inc.: Rescind award

Winnebago Industries, Inc.: Rescind Award

MOTION: Megan McKay moved that the Iowa Economic Development Authority Board approve the recommendations set out above regarding the 120-day signing deadline for the 6 pending contracts as recommended by Staff, seconded by Lisa Shimkat. Motion carried unanimously. 

Compliance Report

Innovative Injection Technologies, Inc.: West Des Moines – Request to Extend Project Completion Date

MOTIONJennifer Cooper moved that the Iowa Economic Development Authority Board approve the request to extend the Project Completion Date for 6-months, seconded by Lisa Hull.  Motion carried unanimously.

TrueNorth Companies, L.C., TrueNorth Real Estate, L.C., and The 550 Building, L.C.: Cedar Rapids – Request to Extend Project Completion Date

MOTION:  Doane Chilcoat moved that the Iowa Economic Development Authority Board approve the request to extend the Project Completion Date for 9-months, seconded by Jennifer Cooper.  Motion carried unanimously.

Hawthorne Direct, LLC: Fairfield – Request Mutual Termination of Contract

MOTION:  Lisa Hull moved that the Iowa Economic Development Authority Board approve the request for mutual termination of the contract, seconded by Jennifer Cooper.  Motion carried unanimously.

TCC Recommendations

                Athena GTX, Inc.: Des Moines

MOTION: Megan McKay moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve the request for a 12-month deferral of the balloon payments and increase the monthly payment amount to $1,449.00, seconded by Lisa Hull. Motion carried unanimously.

                Immortagen, Inc.: Coralville

MOTION: Lisa Hull moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve the request for a 12-month deferral of the balloon payments, seconded by Jennifer Cooper.  Motion carried unanimously.

                Point of Choice, LLC: Fairfield

MOTION: Doane Chilcoat moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve the request for a 6-month deferral of the balloon payments, seconded by Lisa Shimkat.  Motion carried unanimously.

                ScoutPro, Inc.: Urbandale

MOTION: Jennifer Cooper moved that the Iowa Economic Development Authority Board approved the recommendation of the TCC to approve the request for a 12-month deferral of the balloon payments and continue monthly payments, seconded by Lisa Shimkat.  Motion carried unanimously.

Financial Assistance Application

Bio Springer North America Corporation and Its Sister Company Lesaffre Yeast Corporation: Cedar Rapids

MOTION: Lisa Hull moved that the Iowa Economic Development Authority Board approve awarding $290,000 in Investment Tax Credits and $330,000 in Sales, Service and Use Tax Refund, seconded by Doane Chilcoat. Roll Call vote was taken. Motion carried unanimously.

Board member Mark Kittrell disclosed a conflict of interest matter regarding Lincoln Savings Bank that necessitates recusal.  See the attachment.  He left the meeting at 10:02 a.m.

Lincoln Savings Bank: Waterloo

MOTION: Megan McKay moved that the Iowa Economic Development Authority Board approve awarding a maximum of $600,500 in Investment Tax Credit and a maximum of $357,000 in Sales, Service and Use Tax Refund, seconded by Lisa Hull. Roll Call vote was taken. Motion carried unanimously.

Mr. Kittrell returned to the meeting at 10:04 a.m.

                Warren Transport, Inc.: Waterloo

MOTION: Jennifer Cooper moved that the Iowa Economic Development Authority Board approve awarding a maximum of $77,400 in Sales, Service and Use Tax Refund and adding a requirement to  ?  project term, seconded by Doane Chilcoat. Roll Call vote was taken. Motion carried unanimously.

Worley Warehousing, Inc.: Cedar Rapids

MOTION: Doane Chilcoat moved that the Iowa Economic Development Authority Board approve awarding a maximum of $300,000 in Sales, Service and Use Tax Refund and $100,000 in Racking and Shelving, seconded by Pankaj Monga. Roll Call vote was taken. Motion carried unanimously.

Wright Service Corporation: West Des Moines

MOTION: Megan McKay moved that the Iowa Economic Development Authority Board approve awarding a maximum of $661,523 in Sales, Service and Use Tax Refund and the requirement to keep the Headquarters in Iowa for the duration of the contract, seconded by Jennifer Cooper. Roll Call vote was taken. Motion carried unanimously.

TCC AMENDMENT REQUESTS

SBIR/STTR Outreach Program

DNP123

Legov System Group, LLC

Direct Spinal Therapeutics, Inc.

NeoVaxSyn, Inc.

NanoSpy, Inc. – USDA Project

NanoSpy, Inc. – DOD Project

Virtual Paint Products, LLC

MOTION: Lisa Shimkat moved that the Iowa Economic Development Authority Board approve an award up to $25,000 to Virtual Paint Products, LLC and up to $50,000 to each of the other 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 Doane Chilcoat.  Motion carried unanimously.

INSEER, Inc.

MOTION: Pankaj Monga moved, seconded by Doane Chilcoat, that the Iowa Economic Development Authority Board approve a $100,000 Demonstration Fund loan with terms as follow: the award amount paid back at an interest rate of 3%, a 5-year loan term and a 12-month deferral of the first payment, provided that repayment in full is required upon closing one or more funding rounds, the aggregate total of which is $1 million or more.  Motion carried unanimously.

TCC MEMBER REAPPOINTMENTS

MOTION: Lisa Hull moved that the Iowa Economic Development Authority Board approve the staff recommendation to reappoint TCC members, Davin Hills and Rich Hichwa with terms ending December 31, 2022, seconded by Jennifer Cooper.  Motion carried unanimously.

IOWA INNOVATION COUNCIL MEMBER APPOINTMENT

MOTION: Doane Chilcoat moved that the Iowa Economic Development Authority Board approve the recommendation of the IIC Executive Committee to appoint Hank Norem to a 2- year term, ending April 30, 2021, seconded by Lisa Shimkat.  Motion carried unanimously.

Strategic infrastructure program application

MOTION: Doane Chilcoat moved that the Iowa Innovation Council to approve the request by Iowa State University for $1,250,000 for the Cybersecurity Research Institute for Manufacturing, seconded by Lisa Shimkat.  Motion carried unanimously.

PROPOSED AMENDMENTS TO RULES

                Adopt Amendments to Renewable Chemical Production Tax Credit Rules

MOTION: Jennifer Cooper moved, seconded by Lisa Shimkat, that the Iowa Economic Development Authority Board approve to Adopt Amendment to Renewable Chemical Production Tax Credit Rules.  Motion carried unanimously. 

Notice of Intended Action – Amendments to Renewable Chemical Production Tax Credit Rules

MOTION: Megan McKay moved, seconded by Lisa Shimkat, that the Iowa Economic Development Authority Board approve to File Notice of Intended Action for Amendment to Renewable Chemical Tax Credit Rules.  Motion carried unanimously. 

INNOVATION FUND TAX CREDITS

MOTION: Lisa Hull moved that the Iowa Economic Development Authority Board approve issuance of 5 tax credit certificates, seconded by Lisa Shimkat.  Motion carried unanimously.

VENDOR AND CONTRACT MAXIMUM APPROVAL

MOTION:  Lisa Shimkat moved that the Iowa Economic Development Authority Board approve a new contract with the National Main Street Center for $200,000, seconded by Lisa Hull.  Motion carried unanimously.

Other Business

The next IEDA Board meeting will be held on Friday, December 20, 2019 at 9:30 a.m.

Adjournment

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

MOTION: Lisa Hull moved that the IEDA Board adjourn, seconded by Doane Chilcoat. Motion carried unanimously. Meeting adjourned at 10:55 a.m.

Melanie King                                                       Chris Murray

Board Administrator                                         IEDA Board Chair

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