Loading...
HomeMy WebLinkAboutIowa Economic Development Authority - 11/18/2019economic development Debi V. Durham, Director Iowa Economic Development Authority Business Financial Assistance Application Business Finance - Business Development Division Iowa Economic Development Authority 200 East Grand Avenue Des Moines, Iowa 50309-1819 iowaeconomicdevelopment.com Telephone: 515.348.6153 Email: businessfinance aniowaeda.com Application Instructions To Complete Electronic Form: Click on TEXT BOX to add text. Double click on YES/NO boxes and select "Checked". 1. All applicants must complete the Business Financial Assistance Application and attach only those additional sections for the components to which the applicant is applying. STATE of IOWA — Financial Assistance Program High Quality Jobs Program (HQJ) ® Tax Credits ❑ Direct Financial Assistance 2. Before filling out this application form, please read all applicable sections of the Iowa Code and Iowa Administrative Code (rules). https://www.legis.iowa.gov/law/administrativeRules 3. Only typed or computer -generated applications will be accepted and reviewed. Any material change to the format, questions, or wording of questions presented in this application will render the application invalid and it will not be accepted. 4. Complete the applicable sections of the application fully. If questions are left unanswered or required attachments are not submitted, an explanation must be included. 5. Use clear and concise language. Attachments should only be used when requested or as supporting documentation. 6. Any inaccurate information of a significant nature may disqualify the application from consideration. 7. The following must be submitted to Business Finance at IEDA to initiate the review process: • One original, signed application form and all required attachments • One electronic copy of the application form and all required attachments Facsimile copies will not be accepted. Applications must be submitted to IEDA Business Finance before 4:00 p.m. on the fourth Monday of the month. Applications will be reviewed by the IEDA Board on the third Friday of the following month. v.1.28.19 Public Records Policies During the application process, the information submitted by you to IEDA is exempt from disclosure under the "industrial prospects" exemption found in Section 22.7(8). However, once you receive an award, the industrial prospects exemption no longer applies and all documents submitted and generated during the application and negotiation process become public records under Iowa's Open Records Law (Iowa Code, Chapter 22), unless 1) The information belongs to one of the classes of records automatically treated as confidential; or 2) You have applied for and received written notice that your information will be treated as confidential. Automatically Confidential Records IEDA automatically treats the following records as confidential and will withhold them from public inspection even without a request for confidential treatment: • Tax Records and Tax Liability Information • Quarterly Iowa Employer's Contribution and Payroll Report prepared for the Iowa Workforce Development Department • Payroll Registers • Business Financial Statements and Projections (unless those statements are already publicly available elsewhere, e.g., 10-K filings) • Personal Financial Statements Exemptions to the Open Records Law If you wish to have additional information treated as confidential, you must fill out the confidential treatment request form. This form is available by request. Under the Open Records Law, IEDA may lawfully treat certain information as confidential if that information falls within an exemption to the Open Records Law. The following exemptions represent records which may lawfully be treated as confidential under the Open Records law and which are most often applicable to the information submitted to IEDA: • Release of information would give an unfair advantage to competitors — Iowa Code Sec. 15.118 • Trade secrets — See Iowa Code section 22.7(3), see also Iowa Code Ch. 550 • Information on an industrial prospect with which the IEDA is currently negotiating — See Iowa Code section 22.7(8) • Communications not required by law, rule or regulation made to IEDA by persons outside the government to the extent that IEDA could reasonably believe that those persons would be discouraged from making them to IEDA if they were made available for general public examination — Iowa Code section 22.7(18) Non -Confidential Information Information that is submitted to IEDA as part of the application process or that is contained in a contract for program benefits is generally considered material to the eligibility requirements of the program or to the amount of incentives or assistance to be provided. Such information is generally not given confidential treatment. Such information includes but is not limited to, the number and type of jobs incented, the wage levels for the incented jobs, your company's employee benefit information, and your project budget. Additional Information Available. Copies of Iowa's Open Record law and IEDA's administrative rules relating to public records are available from the IEDA upon request. IEDA — Business Financial Assistance Application 2 v.1.28.19 SECTION A Applicant Information Date Application Submitted: 10/24/2019 1. Name of Business: Warren Transport, Inc. and Subsidiaries 2. Entity Name(s) for contracting (please include all that are involved in proposed project): Warren Transport, Inc. 3. Address: 210 Beck Avenue 4. City, State & Zip Code: Waterloo, IA, 50704 5. Contact Person: Keith Grimes Title: Controller 6. Phone: 319-833-2545 Fax: 319-236-3027 Email: kg ri mes(c�warrentransport. com scottfu(a�ATS-I NC. com 7. FEIN: 42-0734521 8. Please indicate your tax period end date: 12/31 9. NAICS Code for primary business operations: 484121 10. US DOT Number: 1896 11. Does the Business file a consolidated tax return under a different tax ID number? ❑ Yes (If yes, please also provide that tax ID number) ® No a. Is the contact person listed above authorized to obligate the Business? ❑ Yes No If no, please provide the name and title of a company officer authorized to obligate the Business: Scott Fuller, VP of Finance 12. If the application was prepared by someone other than the contact person listed above, please complete the following: Name of Business: Address: City, State & Zip Code: Contact Person: Title: Phone: Fax: Email: Sponsor Information (A sponsor organization is a city or county) 13. Sponsor Organization: City of Waterloo Official Contact: Quentin Hart Title: Mayor 14. Address: 715 Mulberry Street 15. City, State & Zip Code: Waterloo, IA, 50703 16. Phone: 319-291-4301 Email: mayor@waterloo-ia.org 17. If IEDA needs to contact the sponsor organization with questions, should we contact the person listed above? ❑ Yes ® No, please contact the following person: Name: Noel Anderson Title: Community Planning & Development Director City, State & Zip Code: Waterloo, IA, 50703 Phone: 319-291-4366 Email: noel.anderson@waterloo-ia.org If necessary, please list information on additional sponsors in an attachment. IEDA — Business Financial Assistance Application 3 v.1.28.19 SECTION B Business Information 1. Provide a brief description and history of the Business. Include information about the Business' products or services and its markets and/or customers. Warren Transport, Inc. is an over the road trucking operation shipping products across the US, Canada, Mexico. Warren Transport, Inc. also operates Warren Specialized Logistics, Inc. and Iowa Loading Services as subsidiaries of Warren Transport, Inc. 2. Business Structure: ❑ Cooperative ® Corporation ❑ Limited Liability Company ❑ Partnership ❑ S-Corporation ❑ Sole Proprietorship 3. State of Incorporation: Nebraska 4. Identify the Business' owners and percent ownership: BSA Worldwide Holdings, LLC 100% 5. Does a woman, minority, or person with a disability own the Business? ❑ Yes 6. List the Business' Iowa locations and the most current number of employees at each location. ® No Waterloo, Beck Avenue (Hqrts) - 80 Waterloo — University Ave (Leased) -15 7. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and other affiliated entities in this figure.) 138 Project Information 8. Project Street Address: U.S. Highway 63 & Athens Drive Project City & Zip Code: Waterloo 50701 Project County: Black Hawk 9. Type of Business Project: ❑ Startup ® Expansion of Iowa Company ❑ New Location in Iowa 10. Does the project site qualify as a "Brownfield" or "Grayfield" site? If yes, please explain and document as Attachment A6. ❑ Yes ® No 11. Describe the proposed project for which assistance is being sought. (Include project timeline with dates, facility size, infrastructure improvements, proposed products/services, any new markets, etc.) Purchase and construction of a new corporate headquarters with additional office space to support Warren Transport, Inc. growth. 12. Project Timeline (add additional rows as needed) Beginning Activity Date Activity Completion Date Purchase Land Currently Within 45 days Construct Facility Fall 2019 or Spring 2020 Mid/late year 2020 13. Has any part of the project started*? ❑ Yes ® No If yes, please explain. Signed agreed to purchase agreement on the land has been executed and is awaiting finalization. * For IEDA's purposes, starting the project includes: the start of construction or rehabilitation, the purchase of a building, the execution of a lease, or the installation of equipment to be used in the project. 14. Identify the Business' competitors. If any of these competitors have Iowa locations, please explain the nature of the competition (e.g. competitive business segment, estimated market share, etc.) and explain what impact the proposed project may have on the Iowa competitor. List Iowa headquarter competitors here: Minimal impact on competitors due to the highly competitive market within Iowa. Competitors in Iowa are West Side Transport, Corker)/ Transport, Gray Transportation, and CRST. 15. Will any of the current Iowa employees lose their jobs if this project does not proceed? ❑ Yes ® No IEDA — Business Financial Assistance Application 4 v.1.28.19 If yes, please explain why and identify those jobs as "retained jobs" in the Project Jobs Section E. 16. Is the Business actively considering locations outside of Iowa? If yes, where and what assistance is being offered? ❑ Yes ® No 17. Please identify the company project management for the project location and experience. Controller, Warren Transport, Waterloo, IA and Vice President of Finance, Anderson Trucking Services, St. Cloud, MN SECTION C Applicant's Project Budget 1. Does the Business plan to lease the facility? n Yes ® No If yes, please provide the Annual Base Rent Payment (lease payment minus property taxes, insurance, and operating/maintenance expenses) for three years in the budget below, and only major renovation costs your company expects to incur. Administrative rules require that the lease be in place for a minimum of five years. 2. Please complete the budget below. Include only costs the company plans to incur directly. Use of Funds Cost Source A Source B Source C Source D Source E Source F Base Rent (3 years) Tenant Improvements Land Acquisition 1,900,000 1,900,000 Site Preparation Building Acquisition Building Construction 6,000,000 6,000,000 Building Remodeling Mfg. Machinery & Equip. Other Machinery & Equip. Racking, Shelving, etc.1 Computer Hardware Computer Software Furniture & Fixtures 750,000 750,000 Working Capital Research & Development Other TOTAL $8,650,000 $ $ $8,650,000 $ $ $ ' Racking, shelving and conveyor equipment used in distribution center projects only 3. Please complete the chart below with proposed financing for the project (tax benefits should be reflected as indirect financing under #5 below): PROPOSED FINANCING Source of Funds Amount Form of Funds Rate and Term Commitment Status Conditions/Additional Information Add additional lines as needed (Loan, Grant, In- Kind, Donation, etc.) Include when funds will be disbursed; If loan, whether payments are a level term, balloon, etc Source A: IEDA (see #4 below) $ Source B: Local Government $ Source C: Business $8,650,000 Company Source D: Other Source $ Source E: Other Source $ Source F: Other Source $ TOTAL $8,650,000 4. Direct financial assistance (loans/forgivable loans) must be secured with acceptable collateral. Please select the type of collateral your company will pledge to secure the IEDA financing, and document its value in Attachment A5. * IEDA — Business Financial Assistance Application 5 v.1.28.19 No collateral, funding disbursed at the end of the 5-year contract ■ Explain: Not Applicable for this project Irrevocable letter of credit • Not Applicable for this project Dedicated certificate of deposit (CD) • Not Applicable for this project * The IEDA Board has the final discretion on what collateral will be accepted. 5. Please complete the chart below with tax credits and other indirect financing expected for the project: TAX CREDITS AND INDIRECT FINANCING Source of Funds Amount Description Investment Tax Credit n/a Sales, Service & Use Tax Refund $77,400 Reimburse sales tax on construction material for office portion of new construction Research Activities Credit (3%/10%) n/a Local Property Tax Exemption n/a Tax Increment Financing $1,002,000 Rebatement: Years 1-11 — 80% annually; Year 12 — 30%. 260E Job Training Funds TBD In -kind Contribution n/a Other n/a TOTAL $1,079,400 6. There are three justifiable reasons for providing assistance. Check the box next to the reason why assistance is needed to complete this project. X Financing Gap - A gap exists between the financing required and the financing on -hand and the provision of tax incentives or assistance is necessary to fill the gap. ❑ Rate of Return Gap —The likely returns of the project are inadequate to motivate a company decision maker to proceed with the project even if sufficient debt or equity can be raised to finance the project, and the project's risks outweigh its rewards, making the provision of tax incentives or assistance necessary to reduce the project's risks. ❑ Location Disadvantage (Incentive) —The business is deciding between a site in Iowa ("Iowa site") and a site in another state ("out-of-state site") for its project and the cost of completing the project at the out-of-state site is demonstrably lower, making tax incentives or assistance necessary to equalize the cost differential between the two sites. Note: The authority will attempt to quantify the cost differential between the sites. 7. Please provide a brief explanation of the need for assistance. Multiple older building locations don't offer operational efficiencies for continued growth of Warren Transport Inc. Construction of a single headquarter location will allow Warren to continue providing quality service to their existing and growing customers across the United States, Mexico, and Canada. This facility will provide the ability to continue growing support staff needed as Warren's business and revenue grows. Over 50% of Warren's sales is outside the State of Iowa. Warren prides itself with collaborating with University of Northern Iowa (UNI), and other area universities, to create internships at the company in the last three years Warren has had 9 interns from UNI with a 50% retention rate staying with the company, in Waterloo and State of Iowa. SECTION D Employee Benefits IEDA — Business Financial Assistance Application 6 v.1.28.19 There are three options to meeting the sufficient benefit requirement. These options are detailed in the chart below. Please complete questions 1-3. If your company meets Option 1 or 2, no additional information is required. If you would like to utilize Option 3, please also complete questions 4-6. 1. Total Number of Employees in US Option 1 70% single Coverage Pay 70% of premium costs for a standard medical plan, single coverage. Option 2 60% Family coverage Pay 60% of premium costs for a standard medical plan, family coverage. 201+ $1700 maximum deductible $3750 maximum deductible 50-200 $2500 maximum deductible $5250 maximum deductible 0-49 $3000 maximum deductible $6000 Maximum deductible In addition, the IEDA will assess the affordability of plans that are qualified under the deductible and premium percentage paid by the employer criteria. Plans that are not offered at a reasonable cost to employees will be deemed not qualified and the business is not eligible for benefits under the High Quality Jobs Program. Option 3 Monetary Equivalent Provide medical and pay the monetary equivalent of Option 1 or Option 2 in supplemental employee benefits. Benefits Counted Toward Monetary Equivalent: Medical coverage, Dental coverage, Vision insurance, Life insurance, Pension, 401(k) (company's Average contribution, Short/long-term disability insurance, Child care services, Other nonwage compensation How many full-time, permanent employees does your company currently employ within the U.S.? 138 2. What is the total premium cost for a standard medical plan for single employee coverage? $12,648/vear a. What portion of this cost is paid by the business? $9,831 b. What is the deductible associated with this plan? $ $3,000 3. What is the total premium cost for a standard medical plan for family coverage? $ 31,620 a. What portion of this cost is paid by the business? $2,112 b. What is the deductible associated with this plan? $ 3,000 No additional information required, in this section, if your company meets the requirement for Option 1 or Option 2 4. Does your company provide additional benefits to full time employees? ®Yes ❑No If yes please provide the annual amount offered by the business, per employee in the chart below: Benefit Annual amount paid by the business (per employee): Dental Insurance — Single plan $373.20 Dental Insurance — Family plan $1,372.32 Pension (Use 3-year average calculated below) $ Retirement Plan - i.e. 401(k) (Use 3-year average calculated below) $ Profit Sharing Plan (Use 3-year average calculated below) $ Childcare Services $ Life Insurance coverage $129.00 Disability Insurance coverage $ Health Savings Account (HSA) contribution $ TOTAL $ 5. Does the Business offer a pension plan, 401(k) plan, and/or retirement -plan? ® Yes ❑ No If yes, please indicate the amount contributed on a per employee basis by the Business to the plan for the last three years. For 401(k) plans, please provide information on the company match and indicate the average annual match per employ Year Ending Average Actual Match per Employee ($) 2018 $3,229 2017 $4,049 2016 $4,198 Three-year Average: $3,825 IEDA — Business Financial Assistance Application 7 v.1.28.19 6. Does the Business offer a profit-sharing plan? ❑ Yes ® No If yes, please indicate total amount paid out each year for the past three years and then, determine the average annual bonus or contribution per employee for that three year period. Year Ending Average Actual Share per Employee ($) $ $ $ Three-year Average: $ Notes: 1. A qualified plan must be offered to all full-time permanent employees. 2. If you have multiple health insurance plans, please provide information on each plan. 3. SECTION E Project Jobs 1. List the jobs that will be created and/or retained as the result of this project. (A retained job is an existing job that would be eliminated or moved to another state if the project does not proceed in Iowa.) For jobs to be created, include the starting and final hourly wage rate. For retained jobs, include the current hourly wage rate. Full -Time CREATED Jobs (Add additional rows as needed) Job Title Number of CREATED Jobs Starting Hourly Wage Wage at 36 months following the award National Sales Representative 4 18.49 18.49 Total Full -Time CREATED Jobs 4 18.49 18.49 Full -Time RETAINED Jobs Job Title (AT -RISK jobs only) (Add additional rows as needed) Number of RETAINED Jobs Current Hourly Wage n/a n/a n/a IEDA — Business Financial Assistance Application 8 v.1.28.19 Total Full -Time RETAINED Jobs 2. Is the hourly wage rate based on a 40 hour work week, 52 weeks per year? ® Yes ❑ No If no please explain: SECTION F Business Taxes IEDA is required to calculate the return on state and local government investments in this project. Data from other parts of the application will be combined with the estimates requested below to calculate the required return on investment information. Please read the following directions carefully: • IEDA is asking for a best estimate on the increase in taxes associated with this project. • Estimates should only include the expected increase in tax liability resulting from this project. • At minimum, IEDA needs estimates for the first three years of the project. • Show data as if no tax abatements or tax credits awarded for this project were taken. • For partnership forms of ownership (e.g. limited partnerships, s-corporations, LLC, etc.), please estimate the partners' increase in Iowa tax liability due to this project. • Sales and use taxes refer to the taxes paid on materials, etc. that the Business purchases, not taxes you collect from sales to your customers. • Applicants will not be held to these numbers with respect to any award from or contract with IEDA. • This page of the application will automatically be treated as confidential. Increase in Tax Collections Associated with this Project State Business Taxes Year 1 Year 2 Year 3 Year 4 Year 5 State Corporate Income Tax* $20,000 $20,000 $20,000 $20,000 $20,000 State Business Sales and Use Tax $1,000 $1,000 $1,000 $1,000 $1,000 * Insurance Companies: Provide State Insurance Premium Tax Local Business Taxes Year 1 Year 2 Year 3 Year 4 Year 5 Local Real Estate Property Tax $125,868 $125,868 $125,868 $125,868 $125,868 Local Option Sales Tax unknown unknown unknown unknown unknown CONFIDENTIAL IEDA — Business Financial Assistance Application 9 v.1.28.19 SECTION G Attachments Please attach the following documents: Al Project Plan Please provide an executive summary for your project. This information should include, at a minimum, expanded information about the company's products and services and any other project related information that has not already been described in the application for financial assistance. Please note, a traditional business plan, including an executive summary, market analysis, organization and management structure, marketing and sales management, service and product line narrative, financial projections, feasibility study and patent status, as well as any other relevant information, may be requested by the Iowa Economic Development Authority to evaluate the feasibility of this project. A2 Payroll Information (Confidential) • Copies of the Business' Quarterly Iowa Employer's Contribution and Payroll Report for the past year. This report should include the monthly employment totals. • A copy of the most recent payroll report for one pay period. The copy of the most recent payroll report for one pay period must be in Excel format and include the following information: o Company name, date of payroll and source of payroll information o Employee name and/or employee identification number o Current hourly wage - do not include bonuses or other benefit values o Indicate if the employee is full time (40 hours per week, 52 weeks per year) or part time. o A sample Excel spreadsheet can be provided by IEDA staff A3 Affidavit that states the Business has not, within the last five years, violated state or federal statutes, rules, and regulations, including environmental, worker safety regulations and antitrust laws, or, if such violations have occurred, that there were mitigating circumstances or such violations did not seriously affect public health or safety or the environment. A sample affidavit can be provided by IEDA staff. A4 Financial Information (Confidential, unless already publicly available) (Existing Businesses Only) • Profit and loss statements and balance sheets for past three year -ends; • Current YTD profit and loss statement and balance sheet; • Schedule of aged accounts receivable; • Schedule of aged accounts payable; and • Schedule of other debts. A5 Collateral documentation (If requesting direct financial assistance only) — Not applicable A6 Brownfield or Grayfield site documentation (if applicable) — Not applicable IEDA — Business Financial Assistance Application 10 v.1.28.19 SECTION H Certification & Release of Information 1. Are there any judgments or court actions completed or pending against the applicant entity, or any current or prospective officer, principal, director, or owner? ❑ Yes ® No 2. Has any current or prospective officer, principal, director, or owner been accused or convicted of any wrongdoing or crime, other than a simple misdemeanor? El Yes ® No 3. Have there been any current or past bankruptcies on the part of the applicant entity (or predecessor entities), or on the part of any current (or prospective) officer, principal, owner or in any business dealings of current (or prospective) officers, principals, or owners of the applicant entity? ❑ Yes ® No 4. In the last five years have there been, or are there currently any investigations of potential violations of public health, safety (including workplace safety) or environmental laws by the applicant entity, or any current or prospective officer, principal, director, or owner? ❑ Yes ® No 5. In the last five years have there been, or are there currently any violations of antitrust laws by the applicant entity, or any current or prospective officer, principal, director, or owner? El Yes ® No 6. If yes to any of the above, please provide additional explanation: I hereby give permission to the Iowa Economic Development Authority (IEDA) to research the Business' history, make credit checks, contact the Business' financial institutions, insurance carriers, and perform other related activities necessary for reasonable evaluation of this application. I also hereby authorize the Iowa Department of Revenue to provide to IEDA state tax information pertinent to the Business' state income tax, sales and use tax, and state tax credits claimed. I understand that all information submitted to IEDA related to this application is subject to Iowa's Open Record Law (Iowa Code, Chapter 22), unless specifically marked as confidential section. I understand that IEDA reserves the right to negotiate the financial assistance. I understand this application is subject to final approval by IEDA and the Project may not be initiated until final approval is secured. Furthermore, I am aware that funds will not be disbursed until a contract has been executed and the appropriate terms have been met. I understand that upon execution of the contract and prior to the issuance of a tax credit number or the disbursement of Award Funds, a recipient shall pay IEDA a one-time compliance cost fee in the amount of $500. In addition, if tax benefits are greater than $100,000, the Recipient shall remit to IEDA a compliance cost fee 0.5% of the value of the Tax Incentives claimed pursuant to the contract. The fee will be due and payable upon filing the Recipient's annual tax return for each tax year in which tax credits are claimed under the contract. I hereby certify that all representations, warranties, or statements made or furnished to IEDA in connection with this application are true and correct in all material respect. I understand that it is a criminal violation under Iowa law to engage in deception and knowingly make, or cause to be made, directly or indirectly, a false statement in writing for the purpose of procuring economic development assistance from a state agency or subdivision. For the Business: For the Sponsor(s): Y.t ignature late Signature 6Roncs - Cord irollCr \)'Tj 0 Name and Title (typed or printed) Name and Title (typed or printed) 3 Date IEDA will not provide assistance in situations where it is determined that any representation, warranty, or statement made in connection with this application is incorrect, false, misleading or erroneous in any material respect. If assistance has already been provided prior to discovery of the incorrect, false, or misleading representation, IEDA may initiate legal action to recover incentives and assistance awarded to the Business.