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IEDA Board Minutes - October 2019

Iowa Economic Development Authority Board

Meeting Minutes

October 18, 2019

9:30 a.m.

Board Members Present:

Jennifer Cooper

Linda Crookham-Hansen

Mark Kittrell

Megan McKay

Chris Murray

Lisa Hull

Pankaj Monga

Emily Schmitt

Lisa Shimkat

Tom Townsend

Ex-Officio Members Present:

Representative Kenan Judge

David Barker

Rob Denson

Senator Mark Lofgren

IEDA Staff Present:

Rita Grimm

Terry Roberson

Debi Durham

Vicky Clinkscales

Alaina Santizo

Jessica O’Riley

Melanie King

Maicie Pohlman

Jacque Matsen

Paul Stueckradt

Katie Rockey

Jenny Klein

Others Present:

Dan McDonald, Greater Dubuque Development

Steve Schupp, Alliant Energy

Lindsey James, Visit Mason City

Aaron Burnett, City of Mason City

Bob Fisher, KGLO, Mason City

Dalena Barz, Alpha Media

David Rachie, Gatehouse Capital

Mike Lukan, CRMEA

Dustin Ingram, Ames Economic Development

Sue Foecke, Senate Democrats Staff

Jessica Flannery, House Democrats

Kathy Bolten, Business Record

Eric Engelmann, NewBoCo/ISA Ventures

Frank Camp, NewBoCo/ISA Ventures

Drew Larson, BrownWinick, ISA Ventures

Margaret Hibbs, BrownWinick / ISA Ventures

Steven J. Van Steenhuyse, City of Mason City

Bill Schickel, Mayor, Mason City

BOARD chair

  • Welcome and Introductions

Iowa Economic Development Authority (IEDA) Board Chair Chris Murray called to order the meeting of the IEDA Board at 9:56 a.m.

  • Roll Call

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

Ex-officio members present: Mark Lofgren, David Barker, Kenan Judge and Rob Denson

Approval of Minutes – September 20, 2019 IEDA Board Meeting

MOTION: Jennifer Cooper moved that the IEDA Board approve the minutes of the September 20, 2019 IEDA Board meeting, seconded by Megan McKay. Motion carried unanimously.

Approval of Agenda – October 18, 2019 IEDA Board Meeting

MOTION: Lisa Hull moved that the IEDA Board approve the agenda for the October 18, 2019 IEDA Board meeting, seconded by Emily Schmitt. Motion carried unanimously.

Public Comment PeriodSteve Schupp of Alliant Energy advised the Board that he has accepted a different position within Alliant Energy and that he enjoyed the time he has spent working with the Board and IEDA staff through the years.

Compliance

120 Day Report

Arconic, Inc.: 90-day extension

Traffix Devices, Inc.: 60-day extension

Weverskade B.V./Lely North America: 30-day extension

Winnebago Industries, Inc.: 30-day extension

MOTION: Jennifer Cooper moved that the Iowa Economic Development Authority Board approve extensions of the contract execution deadlines as recommended by Staff, seconded by Lisa Hull. Motion carried unanimously. 

Compliance Report

Edge BCC, LLC and LightEdge Solutions, Inc.: Altoona – Request for Negotiated Settlement, to Add Entity to Contract and to Extend Project Completion Date

MOTIONLinda Crookham-Hansen moved, seconded by Lisa Shimkat, that the Iowa Economic Development Authority Board extend the Project Completion Date to November 30, 2019 and approve requests to add Blue Ally Technology Solutions, LLC as a party to the contract and to approve a settlement pursuant to which the businesses will claim no additional incentives and will not be required to repay claimed incentives. Motion carried unanimously.

IP Pathways, LLC: Urbandale – Request for Negotiated Settlement

MOTION:  Jennifer Cooper moved, seconded by Linda Crookham-Hansen, that the Iowa Economic Development Authority Board approve the request for a negotiated settlement pursuant to which the amount due as a result of the job shortfall will be amortized over 12 months.  Motion carried unanimously.

Walsma & Lyons, Inc.: Cedar Rapids – Request to Amend and Assign Contract

MOTION:  Emily Schmitt moved, seconded by Lisa Shimkat, that the Iowa Economic Development Authority Board approve the request to assign the contract to Vine Line Group, LLC and Heeren LLC following a merger and amend the contract accordingly. Motion carried unanimously.

East Penn Manufacturing Company: Oelwein – Request to Extend Project Completion Date

MOTION:  Lisa Hull moved that the Iowa Economic Development Authority Board approve the request to extend the Project Completion Date by 16 months, seconded by Linda Crookham-Hansen.  Motion carried unanimously.

TCC Amendment Requests

            Ag Manufacturing & Technology, LLC:  Prole – Request to Amend Contract Terms

MOTION: Jennifer Cooper moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve the request by the Company to subordinate IEDA’s senior UCC-1 security position to Farmers & Merchants State Bank, seconded by Lisa Shimkat.  Motion carried unanimously.

Igor, Inc.: Johnston – Request to Amend Contract Terms

MOTION: Jennifer Cooper moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to approve the request by the Company to subordinate IEDA’s senior UCC-1 security position to West Bank, seconded by Emily Schmitt.  Motion carried unanimously.

Financial Assistance Application

CellSite Solutions, LLC and Common Ground Capital, LLC: Cedar Rapids

MOTION: Lisa Hull moved that the Iowa Economic Development Authority Board approve awarding a maximum of $100,000 in Investment Tax Credits and a maximum of $120,000 in Sales, Service and Use Tax Refund, seconded by Lisa Shimkat. Roll Call vote was taken. Motion carried unanimously.

Board member Emily Schmitt disclosed a conflict of interest regarding Iowa Spring Manufacturing & Sales Company that necessitates recusal.  See the attachment.  She left the room at 10:11 a.m.

Iowa Spring Manufacturing & Sales Company: Adel

MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board approve awarding a maximum of $50,550 in Sales, Service and Use Tax Refund, seconded by Megan McKay. Roll Call vote was taken. Motion carried unanimously.

Emily Schmitt returned to the meeting at 10:12 a.m.

Midwest Mechanical Industrial Holdings, LLC: Harrison County

MOTION: Jennifer Cooper moved that the Iowa Economic Development Authority Board approve awarding a maximum of $136,250 in Investment Tax Credits and a maximum of $30,750 in Sales, Service and Use Tax Refund, seconded by Lisa Shimkat. Roll Call vote was taken. Motion carried unanimously.

MASON CITY REINVESTMENT DISTRICT AMENDMENTS TO CONTINGENCIES

MOTION:  Jennifer Cooper moved, seconded by Lisa Shimkat, that the Iowa Economic Development Authority Board amend the contingencies to the following: continue to provide weekly updates to IEDA staff until construction has started on the Downtown Hotel project and submit a financing commitment letter and/or other documentation acceptable to the IEDA by March 31, 2020.  Roll Call vote was taken.  Motion carried unanimously.

Board Member Mark Kittrell left the meeting at 10:16 a.m.

AMENDMENT TO RULES

            Rural Innovation Grants

MOTION: Emily Schmitt moved that the Iowa Economic Development Authority Board approve filing Notice of Intended Action for New Chapter of Rules – Rural Innovation Grant Program, seconded by Linda Crookham-Hansen.  Motion carried unanimously.

Rural Housing Assessment Grants

MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board approve filing Notice of Intended Action for New Chapter of Rules – Rural Housing Assessment Grant Program, seconded by Lisa Hull.  Motion carried unanimously.

Innovation fund certification application

MOTION:  Lisa Shimkat moved that the Iowa Economic Development Authority certify ISA Ventures Fund, LLP as an Innovation Fund for the purpose of issuing Innovation Fund tax credits to investors, seconded by Linda Crookham-Hansen. Motion carried unanimously.

Angel investor tax credit program

motion: Lisa Hull moved that the Iowa Economic Development Authority Board approve the issuance of 63 Tax Credit Certificates and deny applications submitted by 6 ineligible applicants, seconded by Linda Crookham-Hansen.  Motion carried unanimously.

Redevelopment tax credit program

            Fiscal Year 2020 Redevelopment Tax Credit Program Allocation

motion: Jennifer Cooper moved that the Iowa Economic Development Authority Board approve the recommendation of the Brownfield Advisory Council to award $9,200,00 in Redevelopment Tax Credits for Brownfields and Grayfields for FY 2020, seconded by Lisa Shimkat.  Motion carried unanimously.

Davenport Development Group, LLC Contract Extension 16-BTC-09

MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board approve amending Contract 16-BTC-11 to extend the project completion date from 30 to 66 months, seconded by Lisa Hull.  Motion carried unanimously.

Other Business

The next IEDA Board meeting will be held on Friday, November 22, 2019 at 9:30 a.m. Iowa Economic Development Authority.

Adjournment

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

MOTION: Emily Schmitt moved that the IEDA Board adjourn, seconded by Megan McKay. Motion carried unanimously. Meeting adjourned at 11:03 a.m.

Melanie King                                          Chris Murray

Board Administrator                               IEDA Board Chair

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