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IEDA Board Minutes - November 2020
Iowa Economic Development Authority Telephonic and Teams Board Meeting Meeting Minutes
November 20, 2020
9:15 a.m.
BOARD CHAIR
Welcome
Iowa Economic Development Authority Board Chair Chris Murray called to order the meeting of the IEDA Board at 9:27 a.m.
Roll Call and Introductions
A quorum of the IEDA Board was established with the following Board members present: Chris Murray, Megan McKay, Jennifer Cooper, Linda Crookham-Hansen, Pankaj Monga, Thomas Townsend, Mark Kittrell, Doane Chilcoat, Lisa Hull and Lisa Shimkat
Ex-officio members present: David Barker, Rob Denson and Representative Kenan Judge
Approval of Minutes – October 16, 2020 IEDA Board Meeting
MOTION: Mark Kittrell moved that the IEDA Board approve the minutes of the October 16, 2020 IEDA Board meeting, seconded by Linda Crookham-Hansen. Motion carried unanimously.
Approval of Agenda – November 20, 2020 IEDA Board Meeting
MOTION: Megan McKay moved that the IEDA Board approve the agenda for the November 20, 2020 IEDA Board meeting, seconded by Jennifer Cooper. Motion carried unanimously.
PUBLIC COMMENT PERIOD: On behalf of the Greater Clinton Region and the City of Clinton, Erin Cole, President/CEO of Clinton Regional Development Corporation, expressed appreciation for IEDA’s work in connection with the Spiber America LLC project on today’s agenda.
November 20, 2020
9:15 a.m.
| Board Members Present by telephone, via Teams or in-person: | |||
| Chris Murray, Board Chair | Lisa Shimkat | Doane Chilcoat | Pankaj Monga |
| Thomas Townsend | Jennifer Cooper | Megan McKay | Linda Crookham-Hansen |
| Mark Kittrell | |||
| Ex-Officio Members Present by telephone or via Teams: | |||
| Representative Kenan Judge | Senator Mark Lofgren | David Barker | |
| IEDA Staff Present by telephone, via Teams or in-person: | |||
| Debi Durham | Rita Grimm | Rick Peterson | Staci Hupp Ballard |
| Vicky Clinkscales | Lisa Connell | Jill Lippincott | Kristin Hanks Bents |
| Alaina Santizo | Rob Christensen | Betty Hessing | Melissa Harshbarger |
| Kanan Kappelman | Paul Stueckradt | Katie Rockey | Terry Roberson |
| Emily Hockins | Maicie Pohlman | Amy Zeigler | |
| Others Present by telephone or Teams: | |||
| Cindy Harris, Iowa Finance Authority Rick Dickinson, Greater Dubuque Development Corp. Brenda Dryer, Ames Chamber of Commerce Mike Lukan, Cedar Rapids Metro Economic Alliance Erin Cole, President/CEO, Clinton Regional Development Corp. Andy Sokolovich, VP of Economic Development, Clinton Regional Development Corporation |
|||
BOARD CHAIR
Welcome
Iowa Economic Development Authority Board Chair Chris Murray called to order the meeting of the IEDA Board at 9:27 a.m.
Roll Call and Introductions
A quorum of the IEDA Board was established with the following Board members present: Chris Murray, Megan McKay, Jennifer Cooper, Linda Crookham-Hansen, Pankaj Monga, Thomas Townsend, Mark Kittrell, Doane Chilcoat, Lisa Hull and Lisa Shimkat
Ex-officio members present: David Barker, Rob Denson and Representative Kenan Judge
Approval of Minutes – October 16, 2020 IEDA Board Meeting
MOTION: Mark Kittrell moved that the IEDA Board approve the minutes of the October 16, 2020 IEDA Board meeting, seconded by Linda Crookham-Hansen. Motion carried unanimously.
Approval of Agenda – November 20, 2020 IEDA Board Meeting
MOTION: Megan McKay moved that the IEDA Board approve the agenda for the November 20, 2020 IEDA Board meeting, seconded by Jennifer Cooper. Motion carried unanimously.
PUBLIC COMMENT PERIOD: On behalf of the Greater Clinton Region and the City of Clinton, Erin Cole, President/CEO of Clinton Regional Development Corporation, expressed appreciation for IEDA’s work in connection with the Spiber America LLC project on today’s agenda.
COMPLIANCE - CONSENT AGENDA
120 Day Report
Compliance Report
MCF Operating LLC dba Mrs. Clark’s Foods - Request to Amend Award to Add Entity to Contract. Mid-States Material Handling and Fabrication – Request to Amend Award to Add Entity to Contract. ICE Manufacturing, Inc. – Request to Amend Award Budget and Tax Incentives.
Latham Pool Products, Inc. – Request to Extend Project Completion Date.
Lomont Molding, LLC - Request to Extend Project Completion Date.
Clow Valve Company, Division of McWane, Inc. - Request to Extend Project Completion Date.
Microsoft Corporation - Request to Extend Project Completion Date.
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendations of the DDC regarding items A and B on the Consent Agenda, seconded by Linda Crookham-Hansen. Motion carried unanimously. Jennifer Cooper abstained from voting on the recommendation in item A to extend the deadline to execute the BAE Systems Information and Electronic Systems Integration, Inc. contract by 60 days.
COMPLIANCE – TCC RECOMMENDATIONS
Innovative Lighting, LLC: Roland
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendation of the TCC to approve the business’s request to subordinate IEDA’s UCC-1 filing to new lender as a condition of refinancing debt remaining after the sale of a portion of the business, seconded by Megan McKay. Motion carried unanimously.
FINANCIAL ASSISTANCE APPLICATIONS
Bull Moose Heavy Hall Inc. dba XL Specialized Trailers: Manchester
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award a maximum of $336,000 in Investment Tax Credits and a maximum of $171,000 in Sales, Service and Use Tax Refund, seconded by Jennifer Cooper. Roll Call vote was taken. Motion carried unanimously.
Norman Scott Co. Inc. dba In Tolerance Contract Manufacturing: Cedar Rapids
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award a maximum of $102,750 in Investment Tax Credits and a maximum of $57,750 in Sales, Service Use Tax Refund, contingent upon approval of local match by the City of Cedar Rapids, seconded by Linda Crookham-Hansen. Roll Call vote was taken. Motion carried unanimously.
Spiber America LLC: Clinton
MOTION: Jennifer Cooper moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award $1,000,000 in direct financial assistance as a Forgivable Loan to be disbursed at the end of the contract period if all requirements have been satisfied, seconded by Linda Crookham-Hansen. Roll Call vote was taken. Motion carried unanimously.
TCC RECOMMENDATIONS
SBIR/STTR Outreach Program:
Power Pollen DBA Accelerated Ag Technologies ReEnvision Ag, LLC
Superior Statistical Research Time ReDesigned NeoVaxSyn
Big Data in a Box NanoSpy, Inc.
Pani Clean Curiosity Labs, Inc.
120 Day Report
Compliance Report
MCF Operating LLC dba Mrs. Clark’s Foods - Request to Amend Award to Add Entity to Contract. Mid-States Material Handling and Fabrication – Request to Amend Award to Add Entity to Contract. ICE Manufacturing, Inc. – Request to Amend Award Budget and Tax Incentives.
Latham Pool Products, Inc. – Request to Extend Project Completion Date.
Lomont Molding, LLC - Request to Extend Project Completion Date.
Clow Valve Company, Division of McWane, Inc. - Request to Extend Project Completion Date.
Microsoft Corporation - Request to Extend Project Completion Date.
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendations of the DDC regarding items A and B on the Consent Agenda, seconded by Linda Crookham-Hansen. Motion carried unanimously. Jennifer Cooper abstained from voting on the recommendation in item A to extend the deadline to execute the BAE Systems Information and Electronic Systems Integration, Inc. contract by 60 days.
COMPLIANCE – TCC RECOMMENDATIONS
Innovative Lighting, LLC: Roland
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendation of the TCC to approve the business’s request to subordinate IEDA’s UCC-1 filing to new lender as a condition of refinancing debt remaining after the sale of a portion of the business, seconded by Megan McKay. Motion carried unanimously.
FINANCIAL ASSISTANCE APPLICATIONS
Bull Moose Heavy Hall Inc. dba XL Specialized Trailers: Manchester
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award a maximum of $336,000 in Investment Tax Credits and a maximum of $171,000 in Sales, Service and Use Tax Refund, seconded by Jennifer Cooper. Roll Call vote was taken. Motion carried unanimously.
Norman Scott Co. Inc. dba In Tolerance Contract Manufacturing: Cedar Rapids
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award a maximum of $102,750 in Investment Tax Credits and a maximum of $57,750 in Sales, Service Use Tax Refund, contingent upon approval of local match by the City of Cedar Rapids, seconded by Linda Crookham-Hansen. Roll Call vote was taken. Motion carried unanimously.
Spiber America LLC: Clinton
MOTION: Jennifer Cooper moved that the Iowa Economic Development Authority Board accept the recommendation of the DDC to award $1,000,000 in direct financial assistance as a Forgivable Loan to be disbursed at the end of the contract period if all requirements have been satisfied, seconded by Linda Crookham-Hansen. Roll Call vote was taken. Motion carried unanimously.
TCC RECOMMENDATIONS
SBIR/STTR Outreach Program:
Power Pollen DBA Accelerated Ag Technologies ReEnvision Ag, LLC
Superior Statistical Research Time ReDesigned NeoVaxSyn
Big Data in a Box NanoSpy, Inc.
Pani Clean Curiosity Labs, Inc.
Wise Critical
DSTI – Phase 2 Request ($25,000)
MOTION: Pankaj Monga moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to award up to $25,000 to DSTI upon submission of a Phase II proposal during the 12-month period after the date of IEDA Board approval and up to $50,000 to each of the other businesses listed above, $25,000 upon receipt of an 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, provided that the award to Time ReDesigned is contingent upon confirmation company is current on Innovation Fund loan payments, seconded by Linda Crookham-Hansen. Motion carried unanimously.
CartilaGen
MOTION: Pankaj Monga moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to deny the application for a Demo Fund award and approve a $25,000 Investigative Proof of Commercial Relevance loan with standard IPOCR royalty terms: repayment amount is 1 times the award amount paid back at a royalty rate of 3% of total gross revenue, which does not include grant funds, for a calendar year, with each payment due on June 1st of the following calendar year, seconded by Mark Kittrell. Motion carried unanimously.
Paragon Learning Research Group LLC dba Qi Learning
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to deny the application for a Demo Fund award and 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, which does not include grant funds, for a calendar year, with each payment due on June 1st of the following calendar year, seconded by Pankaj Monga. Motion carried unanimously.
TapOnIt
Mark Kittrell disclosed a conflict of interest that necessitates recusal from consideration of and action on the request for assistance by TapOnIt. See the attached email exchange. He left the meeting at 9:53 a.m.
MOTION: Pankaj Monga 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 approval contingent on the repayment of the balance of the Demonstration Fund loan within 60 days of the award date, and with loan terms as follows: 3% rate of interest, a 5-year loan term and a 6-month deferral and repayment in full upon closing a funding round of $2 million or more, seconded by Megan McKay. Motion carried unanimously.
Mark Kittrell rejoined the meeting at 9:55 a.m.
Tractor Zoom
MOTION: Pankaj Monga 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 approval contingent on repayment of the balances of the POCR and Demonstration Fund loans within 60 days of the award date, and with loan terms of 3% rate of interest, a 5-year loan term and a 6-month deferral and repayment in full upon closing a funding round of $2 million or more, seconded by Megan McKay. Motion carried unanimously.
MC4L dba Tuition Fit
Pankaj Monga disclosed a conflict of interest that necessitates recusal from consideration of and action on the request for assistance by MC4L dba Tuition Fit. See the attached email exchange. He left the meeting at 9:57 a.m.
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendation of the TCC to approve a $100,000 Demonstration Fund loan with standard loan terms of 3% rate of interest, a 5-year loan term and a 6-month deferral, seconded by Megan McKay. Motion
DSTI – Phase 2 Request ($25,000)
MOTION: Pankaj Monga moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to award up to $25,000 to DSTI upon submission of a Phase II proposal during the 12-month period after the date of IEDA Board approval and up to $50,000 to each of the other businesses listed above, $25,000 upon receipt of an 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, provided that the award to Time ReDesigned is contingent upon confirmation company is current on Innovation Fund loan payments, seconded by Linda Crookham-Hansen. Motion carried unanimously.
CartilaGen
MOTION: Pankaj Monga moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to deny the application for a Demo Fund award and approve a $25,000 Investigative Proof of Commercial Relevance loan with standard IPOCR royalty terms: repayment amount is 1 times the award amount paid back at a royalty rate of 3% of total gross revenue, which does not include grant funds, for a calendar year, with each payment due on June 1st of the following calendar year, seconded by Mark Kittrell. Motion carried unanimously.
Paragon Learning Research Group LLC dba Qi Learning
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to deny the application for a Demo Fund award and 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, which does not include grant funds, for a calendar year, with each payment due on June 1st of the following calendar year, seconded by Pankaj Monga. Motion carried unanimously.
TapOnIt
Mark Kittrell disclosed a conflict of interest that necessitates recusal from consideration of and action on the request for assistance by TapOnIt. See the attached email exchange. He left the meeting at 9:53 a.m.
MOTION: Pankaj Monga 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 approval contingent on the repayment of the balance of the Demonstration Fund loan within 60 days of the award date, and with loan terms as follows: 3% rate of interest, a 5-year loan term and a 6-month deferral and repayment in full upon closing a funding round of $2 million or more, seconded by Megan McKay. Motion carried unanimously.
Mark Kittrell rejoined the meeting at 9:55 a.m.
Tractor Zoom
MOTION: Pankaj Monga 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 approval contingent on repayment of the balances of the POCR and Demonstration Fund loans within 60 days of the award date, and with loan terms of 3% rate of interest, a 5-year loan term and a 6-month deferral and repayment in full upon closing a funding round of $2 million or more, seconded by Megan McKay. Motion carried unanimously.
MC4L dba Tuition Fit
Pankaj Monga disclosed a conflict of interest that necessitates recusal from consideration of and action on the request for assistance by MC4L dba Tuition Fit. See the attached email exchange. He left the meeting at 9:57 a.m.
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board accept the recommendation of the TCC to approve a $100,000 Demonstration Fund loan with standard loan terms of 3% rate of interest, a 5-year loan term and a 6-month deferral, seconded by Megan McKay. Motion
carried unanimously.
Pankaj Monga rejoined the meeting at 9:59 a.m.
AMENDMENTS TO RULES
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board adopt amendments to Reinvestment Districts Program Rules, 261 Iowa Administrative Code Chapter 200, seconded by Linda Crookham-Hansen. Motion carried unanimously.
INNOVATION FUND INVESTMENT TAX CREDIT PROGRAM
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board approve 1 Application for Issuance of Tax Credit Certificate, seconded by Doane Chilcoat. Motion carried unanimously.
ANGEL INVESTOR TAX CREDIT PROGRAM
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board approve applications for Issuance of 79 Tax Credit Certificates, deny 4 applications submitted by investors in a business that is no longer a qualified business, and deny applications for 4 ineligible investors, seconded by Megan McKay. Motion carried unanimously.
AMY ZEIGLER WITH IEDA’S COMMUNICATIONS TEAM MADE A PRESENTATION REGARDING THE IMPROVEMENTS TO IEDA’S WEBSITE.
OTHER BUSINESS
The next IEDA Board meeting will be held on Friday, December 18, 2020 at 9:15 a.m.
ADJOURNMENT
There being no further business at the meeting of the Iowa Economic Development Authority Board, MOTION: Linda Crookham-Hansen moved to adjourn the meeting, seconded by Mark Kittrell. Motion carried unanimously. Meeting adjourned at 10:41 a.m.
Betty Hessing Chris Murray
Interim Board Administrator IEDA Board Chair
Pankaj Monga rejoined the meeting at 9:59 a.m.
AMENDMENTS TO RULES
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board adopt amendments to Reinvestment Districts Program Rules, 261 Iowa Administrative Code Chapter 200, seconded by Linda Crookham-Hansen. Motion carried unanimously.
INNOVATION FUND INVESTMENT TAX CREDIT PROGRAM
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board approve 1 Application for Issuance of Tax Credit Certificate, seconded by Doane Chilcoat. Motion carried unanimously.
ANGEL INVESTOR TAX CREDIT PROGRAM
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board approve applications for Issuance of 79 Tax Credit Certificates, deny 4 applications submitted by investors in a business that is no longer a qualified business, and deny applications for 4 ineligible investors, seconded by Megan McKay. Motion carried unanimously.
AMY ZEIGLER WITH IEDA’S COMMUNICATIONS TEAM MADE A PRESENTATION REGARDING THE IMPROVEMENTS TO IEDA’S WEBSITE.
OTHER BUSINESS
The next IEDA Board meeting will be held on Friday, December 18, 2020 at 9:15 a.m.
ADJOURNMENT
There being no further business at the meeting of the Iowa Economic Development Authority Board, MOTION: Linda Crookham-Hansen moved to adjourn the meeting, seconded by Mark Kittrell. Motion carried unanimously. Meeting adjourned at 10:41 a.m.
Betty Hessing Chris Murray
Interim Board Administrator IEDA Board Chair
Betty Hessing
From: Sent: To:
Cc:
Subject:
Rita Grimm
Friday, November 20, 2020 10.12 AM Mark Kittrell
Betty Hessing
RE Tap on It Recusal
Cc:
Subject:
Rita Grimm
Friday, November 20, 2020 10.12 AM Mark Kittrell
Betty Hessing
RE Tap on It Recusal
Thanks, Mark. I am cc'ing in Betty so that she can attach this email exchange to minutes.
Rita C Grimm I Chief Legal Counsel
IOWA ECONOMIC DEVELOPMENT AUTHORITY/IOWA FINANCE AUTHORITY
1963 Bell Avenue, Suite 200 I Des Moines, Iowa 50315
PH· 515 348 6142
CELL: 515 897-8413
FAX: 877-631-7575
Rita.Grimm@lowaEDA.com 1owaeconom1cdevelopment.com
This email and any files transmitted with it are confidential and intended solely for the designated recipient. Any other use of this email is prohibited. If you have received this email in error please notify the sender.
-----Original Message-----
From: Mark Kittrell <mark k1ttrell@eagleviewpartners.com> Sent: Friday, November 20, 2020 9:57 AM
To: Rita Grimm <Rita Grimm@lowaEDA.com> Subject: Tap on It Recusal
Rita:
This message confirms my recusal related to the IEDA Propel application to this company. As an investor in the "Red Cedar Accelerator Fund" based in Cedar Falls, 1t is important that I recuse myself.
Thank you,
MK
Sent from my IPad
Betty Hessing
From: Sent: To:
Cc:
Subject:
Rita Grimm
Friday, November 20, 2020 10 13 AM Pankaj Monga
Betty Hessing, Kerri Yost; Jill Lippincott RE· Recusal
Cc:
Subject:
Rita Grimm
Friday, November 20, 2020 10 13 AM Pankaj Monga
Betty Hessing, Kerri Yost; Jill Lippincott RE· Recusal
Thank you, Pankaj. I am copying in Betty, Kerri, and Jill so that they can attach this email exchange to minutes for the Board meeting and the TCC meeting.
Rita C. Grimm I Chief Legal Counsel
IOWA ECONOMIC DEVELOPMENT AUTHORITY/IOWA FINANCE AUTHORITY
1963 Bell Avenue, Suite 200 I Des Moines, Iowa 50315
PH: 515.348.6142
CELL: 515.897.8413
FAX: 877.631.7575
Rita.Grimm@lowaEDA.com
iowaeconomicdevelopment.com
This email and any files transmitted with it are confidential and intended solely for the designated recipient. Any other use of this email is prohibited. If you have received this email in error, please notify the sender.
From: Pankaj Monga <pmonga@channel-fusion.com>
Sent: Friday, November 20, 2020 10:03 AM To: Rita Grimm <Rita.Grimm@lowaEDA.com> Subject: Recusal.
Hi Rita,
I need to recuse myself from the MCAL dba Tu1t1on Fit discussion and decision as I am an investor in a fund that invests in them.
Thanks!
Pankaj
Pankaj Monga President/CEO Channel Fusion
Tel 319-294-5660 (Direct)
Fax 319-294-8013
www.channel-fusion.com
IJU fill El