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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 PeriodNo 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

MOTIONLinda 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

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