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HomeMy WebLinkAboutGROW Cedar Valley - FY2020 Economic Dev Grant Agment - 1/21/2020FY2020 ECONOMIC DEVELOPMENT GRANT PROFESSIONAL SERVICE AGREEMENT WITH GROW CEDAR VALLEY This Agreement is entered into as of /Z\ 2020, by and between Grow Cedar Valley ("GCV"), and the City of Waterloo, Iowa ("City"). WHEREAS, the GCV provides technical and professional service to elevate the economic vitality of our businesses and communities in the Cedar Valley and whereby GCV has and will continue to engage in economic development activity to directly benefit the City of Waterloo; and WHEREAS, through the adoption of the FY2020 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 GCV and the City; and WHEREAS, GCV and City have reached agreement on the precise terms and conditions under which these services 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. GCV affirms that it is a private, non-profit corporation organized and existing under Iowa law. GCV shall provide proof of tax-exempt status under the Intemal Revenue Service Revenue Code prior to receiving funding. GCV has also provided City with a copy of its mission statement and a detailed summary from an officer or board member that specifies GCV'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, GCV 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 GCV by the City, GCV 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. GCV agrees to undertake and complete in the Cedar Valley project (the "Project"), to engage in the following economic development activities: a. Business expansion and recruitment. 1. Execute business recruitment initiatives that will help Waterloo to compete in the site selection process by highlighting location differentials with an emphasis on Waterloo's robust infrastructure. 2. Execute initiatives relevant to the recruitment of the area's targeted industries: information solutions, advanced manufacturing, renewable energy/biotechnology, financial services, data centers, 3D printing and logistics; 3. Continue to lead initiatives to promote tenants to the TechWorks Campus Ti Building and industrial outlets. Including representing the City -owned industrial parks. 4• Identify and manage expansion and recruitment projects with the intent is to encourage new developments; 5. Prepare and be an advocate for funding businesses who wish to access state incentive programs; 6. Maintain and provide economic data for the use of existing businesses and site selectors considering the area. b. Encouraging targeted business expansion in the Cedar Valley through providing staff support. In addition, partnering with Advance Iowa and Institute for Decision Making at the University of Northern Iowa; Center for Industrial Research and Services and Iowa State University; and the Iowa Economic Development Authority to retain and support existing businesses. c. Industry Insights — Regional existing business surveying of primary businesses focused on high value/high growth that are at risk or have opportunity to grow in Waterloo. d. Live the Valley- Workforce Recruitment and Development. GCV will execute programming to recruit and retain talent in Waterloo including continued advocacy of diversity and inclusion initiatives that will connect hiring businesses with the workforce. e. Government Relations -Advocate for the following: 1. Tax Reform: Corporate and personal income tax reductions, continue to advocate for fair and equitable property tax system, maintain TIF as an economic development tool, and support legislation that would allow cities and counties to self -fund general obligation bond debt. 2. Workforce and Education: Education, recruitment and retention of workers; support community attraction and quality of life programs as a workforce attraction and retention tool, support funding to expand the Job Training and Iowa Apprenticeship programs, increased funding for UNI, continue to emphasize STEM skills, evaluate immigration & diversity policies to increase the number of workers, and advocate for standards and accountability in our pre-K-12 education system. 2 3. Economic Development: Support current funding for IEDA incentives, strengthen opportunities for entrepreneurs, and explore and establish economic development programs that attract quality jobs and foster innovation. 4. Infrastructure, Transportation, and Communications: Expand Broadband/Connect Every Iowan program, explore new or alternative methods for funding transportation infrastructure construction and repair, explore a special state fund for sanitary system and water quality control, and support the continuation of air service subsidies. f. Improving the "Brand". 1. A continuing priority is to communicate a brand message that positions Waterloo and the the Cedar Valley as an economy driven by technology and innovation led businesses, as well as a superior Midwest quality of life. 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 by January 31, 2020, and on or before June 30, 2020; 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 $15.94 for FY20, and/or GCV will provide the following information in writing to the City on a semiannual basis to show all efforts made to promote Waterloo, broken down into categories for (a) companies solicited by GCV to locate in a Development Area, (b) companies GCV contacted to expand operations in a Development Area, and (c) inquiries received by GCV from companies for marketing materials or about available sites or buildings: number of initial calls, contacts, leads, prospects, conferences attended to present 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 4) 3 for information. Based on the documentation submitted by GCV, the City, at its sole discretion, can evaluate the semiannual performance of GCV and may provide Semiannual Performance Payments up to $5,000 to GCV, with a total maximum not to exceed to $20,000. Semiannual means the periods June through November 2019; December through May 2020, in order to allow program evaluation and payment to occur on or before June 30, 2020. The incentive payments identified in Paragraph 4.b will be provided only if GCV can establish a causal 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 before June 30, 2020, 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. Grow Cedar Valley shall provide the City with a detailed accounting of the expenditure of City funds and a written report outlining the GCV'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. 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 GCV employee or against a GCV employee by others will be the sole responsibility of GCV. 7. Request for Payment. All requests for payment or reimbursement shall be submitted by GCV to City on a semi-annual basis, specifically, no later than January 31, 2020, and June 1, 2020. 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. GCV agrees to provide the City with a written summary documenting the results of the Project on a semi-annual basis, specifically no later than December 1, 2019, and June 1, 2020. 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) as applicable to GCV's project involvement; 4 c. 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 $15.94) as applicable to GCV's project involvement. 9. Return of Funds. In the event GCV does not use funds for the intended purpose(s) or in the event GCV 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, 2020. 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 GCV from requesting additional financial support from the City for other activities associated with supporting the City of Waterloo. 11. Recipient Board. The GCV 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. b. c. 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; 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 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 GCV provides services substantially similar to those GCV provides to City choose to terminate any grant, funding or other agreement that provides incentive - based funding to GCV. In the latter instance, the parties agree to enter into a new written agreement providing for funding to GCV 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 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. 5 13. Liability. GCV 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. Grow Cedar Valley 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 GCV's performance, or the performance of GCV's employees, officers, directors, agents or volunteers, under this Agreement shall be the sole responsibility of GCV. 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 GCV's technical and profesional services shall be completed. Any and all provisions of Exhibit "A", describing detail technical and professional services, 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, 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 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, 2019 through and including June 30, 2020. IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized representatives as of the date stated above. GROW CEDAR VALLEY By: CITY OF WATERLOO, IOWA By: 5 ry Darrah, CEO Quentin Hart, Mayor Attest: 6 Kelley Fe1 die, City Clerk Attachment "A" 1. Mission of Grow Cedar Valley Mission: Elevate the economic vitality of our businesses and communities. Vision: We will prioritize — • Talent Development — Recruitment & Retention - Create Cedar Valley Employer Toolkit - Expand Economic Inclusion - Workforce Preparation - Live The Valley (social and digital media platform to attract & retain workforce) • Business Retention & Expansion - Continue Supporting Existing Business through Growth and Retention - Assist with Innovation & Technology Processes - Continue to Provide Economic Data & Research - Collaborate with our Partners in Economic Development: Cities, Regionally and State. 2. How long has the organization been in existence? Grow Cedar Valley was rebranded in March 2019. Organizations within the Grow Cedar Valley have been a part of the Cedar Valley economy for over 75 years. 3. Grow Cedar Valley staff members would directly utilize these funds. Lisa Skubal, VP Economic Development Aaron Jarnagin, Digital Marketing Specialist — Live The Valley & Placemaking Will Frost, Director of Talent Development — Economic Inclusion Aubree Taylor, Communications Specialist 5. Description of Program(s): Economic Development: ❖ Business expansion and recruitment, specifically to: o Execute initiatives relevant to the recruitment of the area's highest value targeted industries: information solutions, advanced manufacturing, logistics and foreign direct investment; o Create and maintain relationships with site selection consultants and influences through regular engagement; o Identify and manage expansion and recruitment projects with the intent to encourage new developments that encourages new capital investment and quality jobs; o Prepare and be an advocate for funding businesses who wish to access state incentive programs; o Execute an existing business program that will deliver real time information to economic development officials; o Invite City's Economic Development Staff along for existing business visits; o Maintain the data portal for the use of existing businesses & site selectors considering the area. 11Page o Attend Select USA Trade Show that promotes foreign direct investment into the United States. Representing Waterloo and Cedar Valley through pre -scheduled meetings and collaborating by co -exhibit at the Iowa Economic Development Authority trade show booth. Show attracts 3,100 attendees from 79 international markets and 49 U.S. states and territories. June 1-3, 2020 in Washington DC. ❖ Industry Insights describes our regional existing business surveying of primary businesses focused on high value/high growth that are at risk or have opportunity to grow in Waterloo and the Cedar Valley. Grow Cedar Valley will lead the creation of an aggregate survey report to help direct future local, regional and organizational programing that affects nearly everything we do to make Waterloo and the Cedar Valley grow. ❖ Advocate and support efforts to grow the entrepreneurial and innovation ecosystems in the Cedar Valley. ❖ Business Retention & Expansion through Innovation (BRED — Grow Cedar Valley will continue to partner with the University of Northern Iowa under a grant UNI received from the Economic Development Administration. Purpose is identify existing businesses and individuals that can foster innovation and technology, research and development with targeted manufactures. This will be done in collaboration with sectors already providing business support including Red Cedar, UNI, Hawkeye Community College, Iowa State University, Cedar Valley Techworks and Iowa Economic Development Authority among other entities. ❖ Continue to be a partner with Red Cedar to support entrepreneurs in Waterloo and the Cedar Valley including collaboration on initiatives important to Red Cedar and Grow Cedar Valley. ❖ Create an Economic Development Advisory Council to guide the economic development efforts of Grow Cedar Valley. Workforce & Talent: ❖ Execute the Live the Valley Campaign through electronic and social media to recruit and retain talent in the City of Waterloo and the Cedar Valley Region. Execute on specific social media strategies and other initiatives to continue to increase engagement. ❖ Promote Waterloo and Cedar Valley career opportunities through the Grow Cedar Valley's job board, social media platforms, traditional media platforms outside the Cedar Valley. ❖ Provide investors and industry partners with quantitative wages, benefit and other workforce demographics to assist with retention and expansion of the workforce including the maintenance of a recruitment toolkit for employers' through the Live the Valley website. ❖ GCV's Economic Inclusion Partnership, composed of private sector employers, will continue to provide support to existing Cedar Valley businesses on the best practices for diversity and inclusion in the workplace by producing an annual Summit, presenting awards to those businesses incorporating inclusion practices, creating an enhanced Inclusion website, and updating the toolkit. .•. Create a comprehensive Employer Toolkit for Live the Valley to support companies with resources to recruit and retain their workforce. 2IPage ❖ Leverage relationships with UNI, HCC, Wartburg, and Allen College and other higher education institutions to design and extend student retention efforts. ❖ Continue to advance partnerships with other workforce initiatives such as Future Ready Iowa, The Iowan Project, Home Base Cedar Valley, and others. ❖ Grow Cedar Valley collaborates with appropriate entities to remove employment barriers such as access to childcare, transportation, and others. ❖ This year, Grow Cedar Valley will begin hosting networking events optimized for the African American Community and other diversity groups. Cedar Valley employers will be invited to attend these meetups to link talent with employment. ❖ Monthly talent workshops are also being planned to educate employers on how to connect with various segments of potential workforce. Government Affairs: ❖ Advocacy for Cedar Valley legislative and regulatory priorities in Des Moines and Washington DC. The priorities created and submitted by the Government Relations Committee to GCV's Board of Directors and approved by GCV Board on 11/19/2019 and are: • Talent Development, Attraction, and Education o Promote smart and comprehensive investment to develop, attract and retain world -class talent and workforce through full funding of the Future Ready Iowa Initiative. o Address barriers to entry for employees to reenter the workforce or find employment such as availability of childcare and transportation o Consider the multi -faceted nature of creating attractive places for Iowans to work and live including providing tools for communities to leverage local assets. o Support high -quality education at all levels from pre-school through post -secondary education that prepares graduates with career ready skills. • Economic Development o Ensure consistency in state and local policies that provide return on investment for taxpayers. o Maintain valuable existing, flexible economic development and housing tax credits and incentive programs. o Provide a climate for business growth through fiscal prudence across all levels of government and a predictable regulatory environment. ■ Transportation, Infrastructure and Connectivity o Support long-term infrastructure planning and mindful allocation of resources to fund these critical, capital -intensive projects reliably into the future. 3IPage