HomeMy WebLinkAboutGreater Cedar Valley Alliance-10/14/2013Mayor
BUCK
CLARK
COUNCIL
MEMBERS
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DAVID
JONES
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COLE
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GETTY
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HART
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WELPER
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BOB
GREENWOOD
At -Large
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SCHMITT
At -Large
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COMMUNITY PLANNING AND DEVELOPMENT
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715 Mti b rry S,reet o Waterloo, Iowa 50703-5783 (' i 1;, 2'1:1-4:2_.:66 Fax (319) 291-4262 .
NOEL C. ANDERSON, Co;rmtunity Planning ti D ::' _r %?= ,t Director
CITY OF WATERLOO
Council Communication
City Council Meeting: June 11, 2012
Prepared: June 8, 2012
Dept. Head Signature: Noel Anderson, Community Planning & Development [rector
# of Attachments: 1
SUBJECT: Resolution approving the FY 2014 and FY 2015 Economic
Development Grant to Greater Cedar Valley Alliance for work towards economic
development, in the amount of $28,500 base amount with $56,500 in potential
incentive funds
Submitted by: Noel Anderson, Community Planning and Development Director
Recommended City Council Action: Approval of Economic Development Grant
and authorize Mayor and City Clerk to sign and fully execute the document.
Summary Statement: Council has previously approved similar agreements with
Greater Cedar Valley Alliance, at different amounts over the years since about
1996. This agreement is same as last year's, with some slight changes to the
requirements of reporting activities for Greater Cedar Valley Alliance. Note — we
are requesting to approve the next two years of agreements, due to new
reporting laws and timelines per TIF standards for the State of Iowa.
The Greater Cedar Valley Alliance serves as the State of Iowa's single point of
contact for larger project leads, and then works with city officials and staff for
work to try and bring such projects here. This partnership has helped to bring
such companies as Ferguson Enterprises, Con Agra Foods, and helped other
local industries expand like Deere and Company, Hydrite Chemical, A -Line,
Advanced Heat Treat, and others. This grant agreement would continue that
relationship, to continue the City Council's main priority of economic development
to the community through the provision of jobs, infrastructure, businesses, etc.
Note — this agreement is for this current fiscal year of 2014, and the upcoming
2015 fiscal year.
The agreement calls for a payment of $28,500 — in two payments of $14,250 at
December and June — for the following work efforts:
Business expansion and recruitment
Fncouraging startup of businesses
CITY WEBSITE: www.ci.waterloo.ia.us
WE'RE WORKING FOR YOU!
An Equal Opportunity/Affirmative Action Employer
Workforce recruitment and coordination
Advocacy in Des Moines and Washington DC
Improving the "Brand" through marketing, promotions, web presence, and
attendance at major conferences
There is also a potential $56,500 in additional incentives for work towards
acres of new development
amounts of taxable value
- new full times jobs created
All documented through a report and potential presentation to city and at end of
agreement period.
Expenditure Required: $28,500 with $56,500 in potential additional expense
Source of Funds: bonds and TIF cash
Policy Issue: NA
Alternative: NA
Background Information: The City of Waterloo has had a partnership for
economic development efforts with Greater Cedar Valley Alliance in one form or
another since about 1996. This partnership has worked to create many projects
throughout the Waterloo community, and has helped in the marketing of area and
reinvestment by existing businesses as well. It has also given the City the ability
to connect better with many of its private industry leaders as the City moves
ahead.
FY2015 ECONOMIC DEVELOPMENT GRANT
AGREEMENT TO SUPPORT "FULFILLING THE VISION" CAMPAIGN
FOR ECONOMIC VITALITY
OF
THE GREAT CEDAR VALLEY ALLIANCE
pp
This Agreement is entered into as of �� lJ"� V Lfd
Cedar Valley Alliance ("GCVA"), and the City of Waterloo, Iowa ("City").
by and between the Greater
WHEREAS, the GCVA has proposed to the City the "Innovation and Technology Led Economic
Development in the Cedar Valley" project, whereby the Alliance will engage in economic development
activities to benefit the City of Waterloo; and
WHEREAS, the "Fulfilling the Vision" Campaign for Economic Vitality is explained in GCVA's
application filed with the City, a copy of which is attached hereto, marked Exhibit "A", and by this
reference made a part hereof; and
WHEREAS, through the adoption of the FY2015 budget, the City Council of City has agreed in
principle to provide certain funding for said project on certain terms and conditions, including execution
of a formal agreement outlining the duties and responsibilities of the GCVA and the City; and
WHEREAS, GCVA and City have reached agreement on the precise terms and conditions under
which the project will be undertaken and the funding provided, and now desire to reduce their agreement
to writing.
NOW, THEREFORE, in consideration of the mutual covenants exchanged herein, the parties
agree as follows:
1. Recipient Status. GCVA affirms that it is a private, non-profit corporation organized and existing
under Iowa law. GCVA shall provide proof of tax-exempt status under the Internal Revenue Service
Revenue Code prior to receiving funding. GCVA has also provided City with a copy of its mission
statement and a detailed summary from an officer or board member that specifies GCVA's use of the
funds, consistent with the concept of "public purpose" as described in Iowa Code § 15A.1(2), (5) or
otherwise by addendum to this Agreement.
2. Recipient Documentation. Prior to receiving funding, GCVA shall provide the following
documentation to City:
a. Proof of business entity status, including a copy of by-laws and articles of incorporation
if applicable;
b. Complete information on the source and amount of funding received from all other
sources, including but not limited to non-governmental agencies, membership dues and
fees, and private contributions;
c. Names and addresses of directors and /or officers;
d. Line item budget for current fiscal year;
e. List of any additional pending applications for funding to include funding source and
dollar amount requested.
3. Description of Project. In consideration for the funding provided to GCVA by the City, GCVA
shall represent and advocate for the interests of business, industry and institutions operating in the City of
Waterloo. Failure to abide by this requirement shall result in a return of funds pursuant to Paragraph 9 of
this Agreement. GCVA agrees to undertake and complete the Innovation and Technology Led Economic
Development in the Cedar Valley project (the "Project"), to engage in the following economic
development activities:
a. Business expansion and recruitment.
1) Executing the Targeted Industry Analysis: Renewable
Energy/Biotechnology, Information Solutions, Advanced
Manufacturing, and Logistics. Business types included in these
sectors include data centers, software and creative production
facilities; fmancial services; bio- materials, wind and alternative
generation equipment; specialty machinery; and distribution
centers.
2) The Alliance & Chamber is designing and will execute an
initiative focused on marketing large blocks of available office
space. This initiative will feature Tower Park, The Green @
TechWorks Campus and other industrial parks and other office
space. The Alliance, Economic Development offices, and the
property owners and brokers are collaborating to accelerate
absorption of the space by high quality tenants from the targeted
groups.
3) Identify and manage expansion programs.
4) Prepare and negotiate incentive applications.
5) Maintain relevant information databases, such as LOIS, which are
publicly available to site selectors and business managers.
6) Populate and maintain the online business intelligence data base
(data portal). Opportunities for the city to have a seamless link to
this database on the city's web site with relevant statistics on
Waterloo, Black Hawk County, Metropolitan Statistical Information
and Regional (7 county aggregate data) will be offered.
b. Encouraging targeted business expansion and business growth in the Cedar
Valley through Cedar Valley Business Connect programming, including
implementation of Advance Cedar Valley - an Economic Gardening program.
c. Workforce recruitment and coordination.
1) Implementation of the Workforce and Talent Plan, including:
a) Wage Surveys
b) Leader Valley Initiative
c) Cedar Valley Skilled Iowa Community
d) Diversity & Inclusion Initiative
e) Work the Valley Initiative
2) The second career concept will be further developed
through continued partnerships with IPI and similar agencies.
3) Execute a strategic marketing and advertising initiative with the
goal of attracting movement of talent outside of the area to the
Cedar Valley to build the local talent pool and increase the general
population of the Cedar Valley.
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4) Coordinate job fairs and employer roundtables addressing
current employment needs. Advise investors and industry partners about
what wages, benefits, and environments are most likely to attract new talent.
d. Government Relations.
1) Government affairs advocacy for Cedar Valley legislative and
regulatory priorities in Des Moines and Washington DC.
e. Telling the Cedar Valley Story - Improving the "Brand".
1) Increase the knowledge internally and externally and enhance the
perception of the Cedar Valley Quality of Life — including
diversity, institutions and culture, and various community
amenities.
2) Continue and expand retail & service promotions, such as the Home for
the Holidays in the Cedar Valley public relations and promotions
program.
3) Continue to upgrade strategic communications vehicles, including
the Economic Development site, in content, function and design in
order to build the "one stop" presence for anything related to
the Cedar Valley economy.
4. Funding. The City agrees to provide funding in an amount not in excess of $85,000 in order to
support implementation of the Project, upon Request for Payment as provided in Paragraph 7, and upon
receipt of the Accounting required in Paragraph 5, as follows:
a. An amount not to exceed $28,500 to be paid in two separate payments of
$14,250 each on December 31, 2014, and on or before June 30, 2015; and
b. An amount not in excess of $56,500 in potential incentive funds, if
earned, as follows:
1) $1,000 per acre of new development in an area of Waterloo
officially designated by City during the term of this Agreement as
an urban renewal area, TIF district, or other area in which City is
willing by written contract to provide development incentives for
a specific transaction (each of such areas is a "Development
Area"), provided that each acre must contain 10,000 sq. ft. of
building structure on average, and/or
2) $1,000 per $250,000 of new taxable value added to a
Development Area, and/or
3) $2,500 per new and/or retained FTE jobs created in a
Development Area, provided the jobs have an hourly starting
wage of at least $15.21, and/or
4) GCVA will provide the following information in writing to the
City on a quarterly basis to show all efforts made to promote
Waterloo, broken down into categories for (a) companies solicited
by GCVA to locate in a Development Area, (b) companies GCVA
contacted to expand operations in a Development Area, and (c)
inquiries received by GCVA from companies for marketing
materials or about available sites or buildings: number of initial
calls, contacts, leads, prospects, conferences attended to present
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marketing about Waterloo, databases organized and/or posted on
websites for providing relevant information about Waterloo, other
efforts made to network, form relationships and/or subscribe to
services, and material responses to requests for information.
Based on the documentation submitted by GCVA, the City, at its
sole discretion, can evaluate the quarterly performance of GCVA
and may provide Quarterly Performance Payments up to $5,000
to GCVA, with a total maximum not to exceed to $20,000.
Quarterly means the periods June through August 2014;
September through November 2014; December 2014 through
February 2015; and March 2015 through May 2015, in order to
allow program evaluation and payment to occur on or before June
30, 2015.
The incentive payments identified in Paragraph 4.b will be provided only if GCVA can establish a casual
relationship between its activities and the economic development for which it proposes to be paid the
incentive funds. The incentive payments, if earned, shall be paid on or about December 31, 2014 and
June 30, 2015, subject to Paragraph 7 below.
Actual expenditures may exceed the amount budgeted for each major line item provided such costs are
otherwise reasonable and allocable to the approved project scope of work. Total expenditures may not
exceed the total funding amount authorized in this Paragraph.
5. Documentation Regarding Accounting of Expenditure of City Funds. The GCVA shall provide
the City with a detailed accounting of the expenditure of City funds and a written report outlining the
GCVA's performance and accomplishments within the scope of work outlined in its application, upon
submitting Requests for Payment pursuant to Paragraph 7.
6. Salaries. A portion of the City's grant, as outlined in Paragraph 4, may provide funding for a
portion of the salaries and employee benefits described in Exhibit "A". City payment of a portion of the
program's salary and benefit expenses shall not make the City responsible or liable for any employee. All
employment-related claims of any type or nature whatsoever that are made by a GCVA employee or
against a GCVA employee by others will be the sole responsibility of GCVA.
7. Request for Payment. All requests for payment or reimbursement shall be submitted by GCVA to
City on a semi-annual basis, specifically, no later than December 1, 2014, and June 1, 2015. All
payments or reimbursements are contingent upon receipt of the documentation required in Paragraph 5
above, and upon receipt of the Report on Project Results required in Paragraph 8. City shall have a period
of up to thirty (30) days from date of receipt of each request for payment and all necessary
documentation, within which to make payment or reimbursement under the Agreement.
8. Report on Project Results. GCVA agrees to provide the City with a written summary
documenting the results of the Project on a semi-annual basis, specifically no later than November 1,
2014, and May 1, 2015. Such report shall include without limitation:
a. Details of external marketing efforts, including, but not limited to: the number of initial
calls, contacts, leads, prospects and material responses to request for information;
b. The number of acres of new development in all Development Areas, grouped by
Development Area (each acre must contain 10,000 sq. ft. of building structure on
average);
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c. The amount of new taxable value added to all Development Areas, grouped by
Development Area; and
d. The number of new FTE jobs created in all Development Areas, grouped by
Development Area (each FTE job must have an hourly starting wage of at least $15.21).
9. Return of Funds. In the event GCVA does not use funds for the intended purpose(s) or in the
event GCVA does not comply with the reporting requirements of Paragraph 8 above, the funds or any
portion thereof shall be returned to the City prior to the end of the current fiscal year, which is June 30,
2015.
10. Time Limitation of Funding. The parties hereby acknowledge that the City is not committed or
obligated to provide funds beyond the terms and conditions of this Agreement, and that any future project
or program requires a separate request and is subject to City Council approval and execution of a separate
written agreement. However, this Agreement however does not prohibit GCVA from requesting
additional financial support from the City for other activities associated with the Project in the Cedar
Valley.
11. Recipient Board. The GCVA Board of Directors will be charged with planning for the
appropriate expenditure of City grant funds in accordance with this Agreement. The Mayor or his/her
designee will represent City on the Board.
12. Termination. Either party may terminate this Agreement at any time if:
a. The other party materially breaches the terms of this Agreement; provided that the non -
breaching party shall have given the breaching party written notice of such breach and the
breaching party shall have failed to cure the same within (30) days after receipt of such
notice;
b. There is the loss or departure of key personnel that would jeopardize both the quality and
time of performance or would make performance impractical with respect to the budget
contemplated for this Agreement, and a mutually acceptable replacement cannot be
found; or
c. Performance of any part of this Agreement by a party is prevented or delayed due to a
factor beyond the reasonable control of the party and cannot be overcome by reasonable
diligence to the satisfaction of either party.
d. The party desiring termination delivers no less than 60 days' advance written notice of
termination to the other party.
In addition, the parties may terminate this Agreement at any time by mutual written consent or in the
event that all other government entities to which GCVA provides services substantially similar to those
GCVA provides to City choose to terminate any grant, funding or other agreement that provides
incentive -based funding to GCVA. In the latter instance, the parties agree to enter into a new written
agreement providing for funding to GCVA that is a flat payment -for -services arrangement, in an amount
mutually agreeable to the parties.
In the event of termination, immediate written notice shall be given by the authorized official of the party
requesting termination to the other party which should specify both the reason for and the effective date
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of termination. Such notice shall be delivered by certified mail or in person to the authorized official of
the other party who executed this Agreement.
13. Liability. GCVA and City agree that each party shall be responsible for its acts or omissions and
the acts or omissions of its employees, officers, directors, agents or volunteers, to the extent allowed by
law. Nothing contained in this Agreement shall vary or modify in any manner any governmental
immunity which any party to this Agreement, or its officers, directors, employees, agents or volunteers,
may enjoy under any statute or rule of law, except to the extent provided in Iowa Code § 670.7, with
respect to the procurement of insurance, and then only to the extent stated in the insurance policy and
only as to those exceptions contained in Iowa Code § 670.4.
14. Legal Expenses. GCVA agrees that all legal expenses incurred by the City in connection with the
defense of any claim made or brought against the City that is directly related to GCVA's performance, or
the performance of GCVA's employees, officers, directors, agents or volunteers, under this Agreement
shall be the sole responsibility of the GCVA.
15. Terms of Agreement Control. The parties acknowledge that the provisions of this Agreement are
controlling and shall define the duties, responsibilities and conditions under which the Project shall be
completed. Any and all provisions of Exhibit "A", the GCVA's Application describing the Project,
which is inconsistent with the provisions of this Agreement, shall be ineffective. All persons who meet
the eligibility requirements as defined in this Agreement shall be entitled to participate in the Project,
regardless of race, color, creed, religion, national origin, sex, age, disability, sexual orientation, gender
identity, or any other criteria which by applicable law constitutes unlawful discrimination.
16. Entire Agreement. This Agreement, together with the Application attached hereto as Exhibit
"A", to the extent not inconsistent with the terms hereof, constitutes the entire agreement between the
parties with respect to the subject matter hereof. There are no other oral or written promises or
understandings except as expressly provided herein. This Agreement may be amended only by a written
agreement signed by the parties hereto.
17. Term of Agreement. This Agreement covers the period from July 1, 2014 through and
including June 30, 2015.
IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized
representatives as of the date stated above.
GREATER CEDAR VALLEY ALLIANCE
By:
Steven J. Dust, Presideht
CITY OF WATERLOO, IOWA
By: `2
Ernest G. Clar
c.
Mayor
Attes
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a Al
Suzy S •\Iares, City Clerk