Our Agency
IEDA Board Minutes - September 2019
Iowa Economic Development Authority Board
Meeting Minutes
September 20, 2019
9:30 a.m.
Board Members Present: |
|||
Jennifer Cooper |
Linda Crookham-Hansen |
Mark Kittrell |
Megan McKay |
Chris Murray |
Lisa Hull |
Pankaj Monga |
Tom Townsend |
Doane Chilcoat |
Lisa Shimkat |
||
Ex-Officio Members Present: |
|||
Representative Kenan Judge |
David Barker |
Rob Denson |
Senator Jackie Smith |
Representative Brian Lohse |
|||
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 |
Ron Robinson, LSA |
||
Jessica Flannery, House Democrats Staff |
|||
BOARD chair
- Welcome and Introductions
Iowa Economic Development Authority (IEDA) Board Chair Chris Murray called to order the meeting of the IEDA Board at 9:35 a.m.
- Roll Call
A quorum of the IEDA Board was established with the following members present: Jennifer Cooper, Linda Crookham-Hansen, Mark Kittrell, Chris Murray, Lisa Hull, Tom Townsend, Doane Chilcoat, Lisa Shimkat, Pankaj Monga and Megan McKay
Ex-officio members present: David Barker, Kenan Judge, Rob Denson, Jackie Smith and Brian Lohse
Approval of Minutes – August 16, 2019 IEDA Board Meeting
MOTION: Linda Crookham-Hansen moved that the Iowa Economic Development Authority Board approve the minutes of the August 16, 2019 IEDA Board meeting, seconded by Jennifer Cooper. Motion carried unanimously.
Approval of Agenda – September 20, 2019 IEDA Board Meeting
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board approve the agenda for the September 20, 2019 IEDA Board meeting, seconded by Tom Townsend. Motion carried unanimously.
Public Comment Period: No comments were made.
Compliance
120 Day Report
Future Line, LLC: 60-day extension
Kraft Heinz Foods Company: 60-day extension
Vertex Software, LLC: 6-month extension
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board approve extensions of the contract execution deadlines as recommended by the Due Diligence Committee (DDC), seconded by Lisa Shimkat. Motion carried unanimously.
Compliance Report
Crossroads Cold Storage LLC: Des Moines – Request to Extend Project Completion Date
MOTION: Linda Crookham-Hansen moved, seconded by Megan McKay, that the Iowa Economic Development Authority Board approve the request for a 17-month extension of the Project Completion Date. Motion carried unanimously.
Express Logistics, Inc.: Waukee – Request to Extend Project Completion Date
MOTION: Jennifer Cooper moved, seconded by Linda Crookham-Hansen, that the Iowa Economic Development Authority Board approve the request for a 3-month extension of the Project Completion Date. Motion carried unanimously.
Iowa Cold Storage LLC: Altoona – Request to Amend and Assign Contract
MOTION: Jennifer Cooper moved, seconded by Mark Kittrell, that the Iowa Economic Development Authority Board approve the request to amend the recipient and assign the contract to Lineage ICS, LLC. Motion carried unanimously.
Pursuant to Iowa Code section 15.106, Chris Murray disclosed a conflict of interest and exited the meeting at 9:40 a.m. He did not participate in discussion or action regarding the Dickten Maasch Plastics, LLC, matter. See the attached copy of written notice of the conflict. Vice Chair Jennifer Cooper presided over discussion and action regarding the matter.
Dickten Maasch Plastics, LLC: Ankeny – Contract Termination
MOTION: Lisa Shimkat moved that the Iowa Economic Development Authority Board approve the request for mutual termination of the contract, seconded by Lisa Hull. Motion carried unanimously.
Chris Murray returned to the meeting at 9:41 a.m. and presided over the remainder of the meeting.
TCC Amendment Requests
Innovative Lighting, LLC: Roland – Request to Amend Contract Terms
MOTION: Linda Crookham-Hansen moved, seconded by Megan McKay, that the Iowa Economic Development Authority Board approve the recommendation of the TCC to deny the request for a 12-month deferral of the balloon payment and approve re-amortizing the amount remaining to be paid over 24 months at 3% interest. Motion carried unanimously.
LenderClose: West Des Moines – Request to Amend Contract Terms
MOTION: Mark Kittrell moved, seconded by Lisa Hull, that the Iowa Economic Development Authority Board approve the recommendation of the TCC to deny the request to reduce the repayment amount from 1.33% of the award and approve the request to cap the annual repayment amount at the lesser of 3% of gross revenue for a calendar year or $23,250 on a semi-annual basis, with all other terms remaining the same. Motion carried unanimously.
L8NT, 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 approve the request for a 6-month deferral of payments, seconded by Tom Townsend. Motion carried unanimously.
Financial Assistance Application
Cargill, Incorporated: Eddyville
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board approve the recommendation of the DDC to award a maximum of $3,400,000 in Investment Tax Credits, a maximum of $360,000 in Sales, Service and Use Tax Refund, and a maximum of $49,500 in Research Activities Credit, seconded by Linda Crookham-Hansen. Roll Call vote was taken. Motion carried unanimously.
Ex-officio member Representative Kenan Judge disclosed a conflict of interest regarding the Hormel Foods Corporation that necessitates recusal. He left the room at 9:45 a.m.
Hormel Foods Corporation and its Subsidiary Progressive Processing, LLC: Dubuque
MOTION: Megan McKay moved that the Iowa Economic Development Authority Board approve the recommendation of the DDC to award a maximum of $500,256 in Investment Tax Credits and a maximum of $75,450 in Sales, Service and Use Tax Refund, seconded by Linda Crookham-Hansen. Roll Call vote was taken. Motion carried unanimously.
Representative Judge returned to the meeting at 9:48 a.m.
Upper Iowa Beef, LLC: Lime Springs
MOTION: Jennifer Cooper moved that the Iowa Economic Development Authority Board approve the recommendation of the DDC to award a maximum of $336,862 in Investment Tax Credits and a maximum of $59,550 in Sales, Service and Use Tax Refund, seconded by Linda Crookham-Hansen. Roll Call vote was taken. Motion carried unanimously.
TCC Recommendations
SBIR/STTR Outreach Program
Geminii Inc.: Iowa City
Gross-Wen Technologies Inc.: Ames
Big Data in a Box: Ames
Parametric Studio Inc.: Ames
Predelix Medical LLC: Iowa City
NeoVaxSyn Inc.: Ames
NeoVaxSyn Inc.: Ames
Cellular Engineering Technologies Inc.: Coralville
SwineTech, Inc.: Cedar Rapids
iotaMotion: Iowa City
Theion Agriculture: Iowa City
Theion Agriculture: Iowa City
MTI Biotech, Inc.: Ames
Viewpoint Molecular Targeting: Iowa City
MOTION: Mark Kittrell 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.
Continuum Ag: Washington
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board approve the recommendation of the TCC to award a $25,000 Proof of Commercial Relevance (POCR) loan with standard POCR royalty terms: repayment amount is 1 times the award amount 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.
Kimle Aquaculture: Ames
MOTION: Linda Crookham-Hansen moved, seconded by Lisa Hull, that the Iowa Economic Development Authority Board approve the recommendation by the TCC to award a $100,000 Demonstration Fund loan be repaid with royalty terms as follows: 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 with release of funds contingent upon providing satisfactory documentation that the business has raised $900,000. Motion carried unanimously.
Original Appearance Manufacturing: Ames
MOTION: Linda Crookham-Hansen moved, seconded by Lisa Hull, that the Iowa Economic Development Authority Board approve the recommendation by the TCC, the $100,000 Demonstration Fund loan with terms as follows: 5-year loan, 3% rate of interest and a 6-month deferral of the first payment. Motion carried unanimously.
JBI Distributing: Red Oak
MOTION: Lisa Shimkat moved, seconded by Linda Crookham-Hansen, that the Iowa Economic Development Authority Board approve the recommendation by the TCC to award a $100,000 Demonstration Fund loan to be repaid with terms as follows: 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.
GKAT Reclamation: Des Moines
MOTION: Mark Kittrell moved, seconded by Lisa Shimkat, that the Iowa Economic Development Authority Board approve the recommendation by the TCC to award a $250,000 Innovation Acceleration Propel Fund award with the terms as follows: 5 year loan, 3% rate of interest, and a 6-month deferral of the first payment with the release of funds contingent upon submission of a revised application with GKat and A TEC as co-applicants and co-recipients responsible for repayment of the loan. Motion carried unanimously.
Amendments to Rules
Renewable Chemical Production Tax Credit Program
MOTION: Mark Kittrell moved, seconded by Lisa Shimkat, to approve filing Notice of Intended Action to amend the administrative rules for the Renewable Chemical Production Tax Credit Program by adding the chemical “ethylene glycol” to the list of approved building block chemicals under 261 Iowa Administrative Code 81.8(15). Motion carried unanimously.
Targeted Jobs Withholding Tax Credit Program
MOTION: Jennifer Cooper moved, seconded by Lisa Hull, to approve filing Notice of Intended Action to amend administrative rules for the Targeted Job Withholding Tax Credit Program by rescinding paragraph 71.4(2)”e”, which pertains to a “sunset date” that is set out in Code. Motion carried unanimously.
Vendor and Contract Maximum Approval
MOTION: Jennifer Cooper moved that the Iowa Economic Development Authority Board approve increasing the maximum amount to be paid to LS2 for FY2020 from $5.2M to $5.6M to include new marketing efforts, seconded by Megan McKay. Motion carried unanimously.
Budget Approval
MOTION: Mark Kittrell moved that the Iowa Economic Development Authority Board approve the budget for FY20 and IEDA’s status quo budget request to the Department of Management for the upcoming 2 fiscal years, FY21 and FY22, seconded by Lisa Hull. Motion carried unanimously.
Other Business
The next IEDA Board meeting will be held on Friday, October 18, 2019 at 9:30 a.m.
Adjournment
There being no further business at the meeting of the Iowa Economic Development Authority Board,
MOTION: Mark Kittrell moved that the IEDA Board adjourn, seconded by Tom Townsend. Motion carried unanimously. Meeting adjourned at 10:13 a.m.
Melanie King Chris Murray
Board Administrator IEDA Board Chair