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HomeMy WebLinkAboutIEDA - HQJ Application - 1.21.2025Economic Development Debi Durham, Director Iowa Economic Development Authority nies Hrmnciiafl ; sNmNticance AjpjpHHcMllcrr Business Finance - Business Development Division Iowa Economic Development Authority 1963 Bell Avenue, Suite 200 Des Moines, IA 50315 iowaeda.com Email: businessfinanceiowaeda.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) ►1 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 changes 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 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 Iowa Economic Development Authority (IEDA) to initiate the review process: One signed application form and all required attachments submitted electronically to the project manager. 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. International Paper - Highly Restricted v.8.2024 Public Records Policies During the application process, the information submitted to IEDA is exempt from disclosure under the "industrial prospects" exemption found in Section 22.7(8). However, once an award is received, 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 the 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 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 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, the company's employee benefit information and the 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 inancial ssistance Application 2 v.8.2024 International Paper -HigilRestricted SECTION A Applicant Information Date Application Submitted: 12/23/24 1. Name of Business: International Paper Company 2. Entity Name(s) for contracting (please include all that are involved in proposed project): International Paper Company 3. Address: 6400 Poplar Avenue 4. City, State and Zip Code: Memphis, TN 38197 5. Contact Person: James Baumer Title: Project Manager 6. Phone: 513-659-4286 Fax: Email: james.baumer@ipaper.com 7. FEIN: 13-0872805 8. Please indicate your tax period end date: 12/31 9. NAICS Code for primary business operations: 322211 10. US DOT Number: 297334 11. Does the Business file a consolidated tax return under a different tax ID number? Yes (If yes, please also provide the tax ID number) ►1 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: 12. If the application was prepared by someone other than the contact person listed above, please complete the following: N ame of Business McGuire Woods Consulting LLC Address: 800 East Canal Street City, State and Zip Code: Richmond, VA 23219 Contact Person: Chris Lloyd Title: Senior Vice President, Infrastructure & Economic Development P hone: 804-775-1902 Fax: 804-775-1061 Email: clloyd@mwcllc.com Sponsor Information (A sponsor organization is a city or county) 13. Sponsor Organization: City of Waterloo 14. Official Contact (e.g. Mayor, Chairperson, etc.): Quentin Hart Title: Mayor 15. Address: 715 Mulberry Street 16. City, State & Zip Code: Waterloo, IA 50703 17. Phone: 319-291-4301 Fax: 319-291-4286 Email: mayor@waterloo-ia.org 18. If IEDA needs to contact the sponsor organization with questions, should we contact the person listed above? ►1 Yes No, please contact the following person: N ame: Address: City, State and Zip Code: P hone: Fax: Email: Title: If necessary, please list information on additional sponsors in an attachment. IFDA — ari . s f inancial Assistance Application 3 v.8.2024 t InternatiInonal Paper - ig iiy Restricted 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. International Paper is one of the world's leading producers of renewable corrugated packaging and cellulose fibers with manufacturing operations in North America, Latin America, Europe and North Africa. We are a New York corporation, incorporated in 1941 as the successor to the New York Corporation of the same name organized in 1898. We are laser -focused on building a better future for people, our customers and our company while creating profits for our shareholders. In Iowa, our manufacturing locations create material for fiber -based packaging products that promote goods, enable worldwide commerce and help keep consumers safe. The key segments we serve include e-Commerce, processed food and beverage, fruit and vegetables, protein, distribution and durable/non-durable goods. 2. Business Structure: ❑ Cooperative Corporation n Partnership ■ S-Corporation ■ Sole Proprietorship 3. State of Incorporation: New York 4. Identify the Business' owners, where business owners are domiciled, and percent ownership: (NYSE:IP) 5. Does a woman, minority, or person with a disability own the Business? ■ Yes /1 No List the Business' Iowa locations and the most current number of employees at each location. • Cedar River Mill — 250 • Cedar Rapids Box —179 • Waterloo Box —129 • Des Moines Recycle — 20 • Other Statewide - 12 6. What is the Business' total Iowa employment for each of the last four quarters? Q4 2023: 585 Q1 2024: 597 Q2 2024: 594 Q3 2024: 594 All figures are period -end as employment can fluctuate slightly throughout the period. Official Q4 2024 period -end reporting is not available at this time; however, the totals listed in #6 have been verified. 7. What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries and other affiliated entities in this figure.) 39,000 ■ Limited Liability Company Project Information 8. Project Street Address: 3230 Leversee Road Project City and Zip Code: Waterloo, 50703 Project County: Black Hawk Certified Site Name, if applicable: N/A Does the Business currently own the project site? ❑ Yes ►I No 9. Type of Business Project: ❑ Startup Expansion of Iowa Company 0 New Location in Iowa 10. Does the project site qualify as a "Brownfield" or "Grayfield" site? ❑ Yes ® No If yes, please explain and document as Attachment A6. 11. Does the project provide a licensed child care facility for use by the business's employees? ❑ Yes No If yes, please explain 12. Describe the proposed capital investment planned for the project for which assistance is being sought. (Include project timeline with dates, facility size, infrastructure improvements, proposed products/services, any new markets, etc.) Acquisition of land as part of land swap with City to be improved with site improved with roadways, railroad spur, and 900K building to house new state-of-the-art corrugated products manufacturing plant. Estimate start date April 1, 2025. I DA—Bi floss s inancial ssislance Application 4 v.8.2024 International Paper- g�ilyRestricted Project Timeline (add additional rows as needed) Beginning Activity Date Activity Completion Date Land Acquisition January 2025 January 2025 Site Preparation April 2025 May 2025 Building Construction May 2025 January 2026 Equipment Installation January 2026 September 2026 13. Has any part of the project started*? ■ Yes No If yes, please explain. For IEDA's purposes, starting the project includes: the start of construction or rehabilitation, the purchase ofa building, execution of a lease, or 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. Corrugated container manufacturers: PCA — Marshalltown, IA; West Rock — Cedar Rapids, IA 15. Will any of the current Iowa employees lose their jobs if this project does not proceed? Yes 3 No 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? ❑ Yes No If yes, where and what assistance is being offered? All company facilities must compete internally for capital investment from limited company funds. Demonstration of a public private partnership is important to corporate leadership in prioritizing the allocation of these funds. 17. Please identify the company project management for the project location and experience. The company has assembled an internal project team with significant experience in the development of corrugated manufacturing facilities. 1DA—B MSS Financial Assistance Application 5 v.8.2024 International rPaper-`Highily Res acted 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 not already been described in the application for financial assistance. This strategic investment aims to position International Paper for sustained success in the region: leveraging cutting -edge technology and a focused operational strategy to meet market demands and drive growth. The objective is to establish a new greenfield box plant in Waterloo, Iowa to address capacity constraints and enhance production efficiency with in thew region. Key goals are as follows: 1) alleviate capacity stress by reducing the burden on other International Paper plants in the region which are currently operating at or near capacity limits 2) optimize production by rationalizing operations into the new facility, thereby improving production efficiencies 3) enhance flexibility by increasing the availability of production capacity to better meet market demands and accommodate future growth 4) Increase volume transfer by transferring internal protein volume to the new facility to capitalize on production efficiencies and streamline operations. As one of the largest suppliers to Tyson Foods, Amazon, and JBS, and other major customers in the region, the Project will better address their long-term needs. 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) • 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, overtime or other benefit values • 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 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; A6 Brownfield or Grayfield site documentation (if applicable) DA — Bjn s Financial Assistance Application International Paper - Flighty Restricted 11 v.8.2024 SECTION H Certification & Release of Information Business Name: International Paper Company FEIN: 13-0872805 Business Address: 6400 Poplar Avenue,Memphis, TN 38197 Sales Tax Permit #: 157955798 For the purposes of this Certification & Release of Information, "principals" includes any current or prospective officer, director, or owner. 1. Have there been any current or past bankruptcies on the part of the applicant entity (or predecessor entities), or on the part of any principal or in any business dealings of any principals of the applicant entity? Has the applicant entity ever been subject to foreclosure? ❑ Yes No If yes, please provide the date and a description of the outcome of any bankruptcy or foreclosure: 2. Is the applicant entity or principal currently delinquent in the payment of state or local taxes or otherwise in substantial noncompliance with Iowa tax law? Yes ►4 No ■ If yes, please provide the date and amount of the delinquency: 3. Has the applicant entity or any principal been debarred by the federal government? ❑ Yes No If yes, please explain the explain the circumstances of the debarment. In the last five years: 1. Are there any judgments or court actions currently pending or completed against the applicant entity or any principal? Yes ►/ No ■ If yes, please provide the date and a description of each judgment or court action: 2. Has any principal been accused or convicted of any wrongdoing or felony? Yes ® No ■ If yes, please provide the date and a description of each charge or conviction: 3. 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 principal? n Yes No If yes, please provide the date and a description of each investigation or violation: 4. Have there been, or are there currently any violations of antitrust laws by the applicant entity or any principal? ❑ Yes ®No If yes, please provide the date and a description of each violation: IEDA — Business EEinancial Assistance Application 12 v.8.2024 International Paper - Nighty Restricted The undersigned representative of the Applicant gives permission to the Iowa Economic Development Authority (IEDA) to research the Applicant, make credit checks, contact the Applicant's financial institutions, insurance carriers, and perform other related activities necessary for reasonable evaluation of this application. The undersigned authorizes the Iowa Department of Revenue (IDR) to provide to IEDA state tax information pertinent to the Applicant's standing with IDR, including but not limited to information related to state income tax, safes and use tax, state withholding, and state tax credits claimed. The undersigned representative of the applicant further authorizes the IDR to access tax incentive information pertinent to the responsibilities of IDR, including but not limited to information IDR is required to report to the Iowa General Assembly and information required to process tax incentive claims. The undersigned authorizes other state entities to provide IEDA information pertinent to the application and standing, including but not limited to, the Iowa Department of Natural Resources, the Iowa Department of Public Safety, Iowa Attorney General, and Iowa Workforce Development. f understand that all information submitted to IEDA related to this application is subject to Iowa's Open Record Law (Iowa Code, Chapter 22). I understand this application is not an award or promise of tax incentives. I understand this application is subject to approval by IEDA. Furthermore, I am aware that tax incentives will not be disbursed until a contract has been executed by the principal officer of the Applicant and the Director of IEDA and all terms, conditions, and requirements of Iowa Code for this program, all applicable administrative rules, and the contract have been satisfied. I understand that IEDA reserves the right to negotiate the financial assistance and to request additional information to determine eligibility or the appropriate program benefits. 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): 9.041, i9¢7, Signs re 1/6/2025 62uerc-arc fir( 1 /21 /2025 Date Signature Date John D. Berry, Vice President North America Packaging Quentin Hart, Mayor Name and Title (typed or printed) Name and Title (typed or printed) 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. IEDA — Business inancial Assistance Application 13 v.8.2024 International Paper -Htgn y Restricted