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Home My WebLink About06-10-2008 Council Economic Development CommitteeAGENDA City of Iowa City City Council Economic Development Committee Tuesday, June 10, 2008 7:00 a.m. Lobby Conference Room Iowa City City Hall 1. Call to Order 2. Consider application for CEBA funds - Kleffman North America Inc. 3. Staff time 4. Committee time 5. Adjournment r CITY OF IOWA CITY MEMORANDUM Date: June 6, 2008 To: Economic Development Committee From: Wendy Ford, Economic Development Coordinator Re: Kleffmann North America. Inc. Kleffmann North America, Inc. (KNA) has been working with ICADG (Iowa City Area Development Group) to prepare an application for CEBA (Community Economic Betterment Account) funds through the IDED (Iowa Department of Economic Development). KNA is requesting support for a $300,000 expansion project, including a $40,000 Community Economic Betterment Account (CEBA) forgivable loan from the Iowa Department of Economic Development (IDED) Board of Directors and $15,000 from the City of Iowa City. Contingent upon approval, KNA will remodel its current office, lease approximately 1,700 square feet of new space, purchase new computer software and equipment, and coordinate a new jobs training program with Kirkwood Community College. Expansion and staff recruitment are expected to begin later this summer. KNA plans to employ nine salaried professionals and six hourly interviewers in the next three years with a combined annual payroll of more than $650,000. Once the proposed expansion is complete, KNA will continue to invest resources to grow its market research operations as well as its Amis® seed program. The Amis® system, a Kleffmann Group proprietary system, is the first database to provide a link between global market analysis and basic research data for the crop protection and seed industries. By adding this function to the Iowa City location, KNA can give its clients a rapid assessment of the most important target crops and markets in North America. About Kleffmann Group Since its establishment in 1990, the Kleffmann Group has developed into a leading international agricultural market research institute. The company is headquartered in Lodinghausen, Germany, and has offices in 18 countries worldwide. The Kleffmann Group expanded its business activities into the United States in 2000, and established its Kleffmann North America (KNA) in Iowa City, Iowa, in February 2006. The Kleffmann Group offers a portfolio of market research products, including data collection, data processing and analysis, and online data archiving. The company conducts approximately 300,000 interviews annually and provides its services to global and regional businesses in agribusiness, crop protection, seed, machinery, animal health, as well as the food and feed industry. To date, the Kleffmann Group has conducted market research in more than 30 countries. To learn more, see the Kleffmann Group website at www.kleffmann.com. enc.: CEBA Application APPLICATION FOR ECONOMIC DEVELOPMENT SUPPORT PROJECTS CITY OF IOWA CITY Economic Development Division 2008 Application for Financial Assistance for Economic Development Support Projects INSTRUCTIONS An "Application for Economic Development Support Projects" should be completed for projects and programs that support economic development activities such as micro - business enterprise training programs, area business development programs, or specific area fagade renovation programs. An "Application for Business Financial Assistance Projects" should be completed when requesting financial assistance to directly assist a private business. • Prior to completing an application, an applicant is strongly encouraged to contact the City's Economic Development Coordinator to discuss the project for which they are requesting funding. (See contact information at bottom of this page). • If this application is reproduced, it must remain in the original format and order in its entirety, or the application may be returned for correction. An electronic copy of the application is available in Microsoft Word. • Fill out the application completely. If any questions are left unanswered or required attachments are not submitted, an explanation for the omission must be included. • Only typed applications will be accepted and reviewed. ■ Application Deadlines: The City Council Economic Development Committee meets the third Thursday of the month. Completed applications for Economic Development Support Projects should be submitted to the Economic Development Coordinator two weeks prior to the meeting at which the applicant wishes to have the Committee review the application. • Submit completed applications, with attachments to: Wendy Ford Economic Development Coordinator City of Iowa City 410 E. Washington Street Iowa City, IA 52240 Phone: (319) 356-5248 Fax: (319) 356-5217 cAdocuments and settingsWord\local settings\temporary internet fi1es\o1k76\k1effman is finasstapp (2).doc City of Iowa City Application For Economic Development Support Projects Organization Requesting Financial Assistance Organization Name: Kleffmann North America Name of Authorized Person to Obligate the Organization: Dan Abbott Organization Address: 221 E. College St. Organization Contact Person: Dan Abbott Title: COO Telephone:319-354-4185 Fax:319-354-5051 E-mail Address: daniel.abbottCa)kleffman.us Date of Application Submittal: June 3, 2008 Release of Information and Certification NOTE: Please read carefully before signing I hereby give permission to the City of Iowa City (the City) to research the organization's history, make credit checks, contact the organization's financial institution, and perform other related activities necessary for reasonable evaluation of this proposal. I understand that all information submitted to the City relating to this application is subject to the Open Records Law (1994 Iowa Code, Chapter 22) and that confidentiality may not be guaranteed. I hereby certify that all repre- sentations, warranties or statements made or furnished to the City in connection with this application are true and correct in all material respects. 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 political subdivision. SIGNATURE OF ORGANIZATION OFFICER AUTHORIZED TO OBLIGATE ORGANIZATION: NOTE: The City will not provide assistance in situations where it is determined that any repre- sentation, 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 by the City prior to discovery of the incorrect, false or misleading representation, the City may initiate legal action to recover City funds. cAdocuments and settingsWord\local settings\temporary internet files\o1k7ftleffman is finasstapp (2).doc 2 Section 1: Description of Organization and Proposed Project 1.1. Describe in detail the proposed "project". Please see question 6 in State Application 1.2. Describe why the proposed project is needed, the goals of the project, and the strategy to achieve these goals (include information from studies/research or other supporting documentation.) Please see question 6 in State Application 1.3. Describe how the proposed project supports one of the following economic development goals of the City 1. Foster the retention and expansion of primary sector existing business and attract new business to Iowa City. 2. Support the Development of Downtown to ensure a healthy mix of retail, services, entertainment, office, residential, lodging, and nightlife 3. Assist in the development of Entrepreneurial Businesses in Iowa City 4. Workforce Development With Kleffmann's proposed expansion, this will solidify the retention of the business' Iowa City office and also attract new elements to the business segment of agricultural -based marketing research, which has never existed in Iowa City prior to 2006. This expansion will also continue developing the Downtown business district by attracting more business office professionals and encourage recent graduates in both marketing and agriculture to remain in the community. 1.4. Provide a description and history of the sponsoring organization and the project, if it is an existing project. Please see question 1 in State Application 1.5. Provide evidence of your organization's capacity and experience to undertake and complete the proposed project within an established timetable and budget. Since Kleffmann North America's inception in 2006, the Business has succeeded in all revenue and progress goals set by it's CEO, Burkhard Kleffmann. KNA is staffed with highly experienced professionals with an average of 5-10 years direct business -related experience. In 1-2 years, KNA is proposing to increase it's staff count from 3 to 15 full time positions and expanding both it's agricultural contact center and research office. The three year budget for the proposed expansion is $300,000, comprised of state -funded loans, grants, tax credits, and business revenue. For details, please see questions 6 and 11 in State Application. 1.6. List the names of the organization owners or board of directors, if a not -for -profit organization. cAdocuments and settingsWord\local settings\temporary internet files\o1k7ftleffman is finasstapp (2).doc 3 Not Applicable 1.7. What date will the project begin? Target 7/1/2008 Be completed? T" or 2nd Quarter 2009 1.8. Has any part of the project been started? No. If yes, please describe. Section 2: Financial Contributions to the Proposed Project 2.1. What type and amount of financial assistance are you requesting from the City (for example, grant, forgivable loan, loan, etc.)? $15,000 5 year, no interest loan, as a required match (at least 20%) for requested State Funds of $60,000. 2.1a. If Community Development Block Grant Funds are being requested, please describe how the proposed project addresses the priorities, strategies, and goals cited in CITY STEPS 2006-2010. Not applicable 2.2. Explain why assistance is needed from the City, and why it cannot be obtained elsewhere. Please provide specific supporting documentation (e.g. grant or loan denial). If the City did not provide financial assistance, could the project proceed? Required to match State Funding 2.3. In what form is the organization's contribution to the project (e.g. cash, in -kind, etc.)? Please explain clearly. Cash - $145,000 2.4. Identify all agencies or institutions involved in the project (financial and otherwise) and describe their involvement. Please see question 11 in State Application 2.5. Summary of Project Costs and Proposed Financing Sources cAdocuments and settingsWord\local settings\temporary internet fi1es\o1k76\k1effman is finasstapp (2).doc 4 Please see question 11 in State Application 2.6. Terms of Proposed Financing Please see question 11 in State Application Section 3: Economic Impact 3.1 How will this project benefit the City/County? The proposed expansion of operations will provide a long term benefit by attracting more international businesses to Iowa City and Johnson County. 3.2 How could this project lead to the growth of the Iowa City property tax base? By using the existing available office space in Downtown Iowa City, this promotes future opportunities for development of new business areas and space in the Downtown community after existing space is no longer available. Section 4: Community Involvement; Compliance with Law; Repayment Agreement 4.1 Please describe your organization's history of contributing to the community through volunteer work, financial contributions, or other means. If a new organization, please describe commitment to becoming involved in the community. Based on the Business' short time thus far in Iowa City, it has not had enough time to become actively involved in the community, but is interested in determining ways it can volunteer time and finances to help support the local community. 4.2 Has the organization been cited or convicted for violations of any federal or state laws or regulations within the last five years (including environmental regulations, Occupational Safety And Health laws, Fair Labor Standards, the National Labor Relations Act, the Americans With Disabilities Act)? If yes, please explain the circumstances of the violation(s). No 4.3 Financial assistance from the City of Iowa City may require a repayment clause in the agreement with the City. The repayment clause requires a prorated repayment of the financial assistance if the organization does not meet its obligations of this agreement. Is the organization willing to enter into an agreement that contains a repayment clause? Yes cAdocuments and settingsWord\local settings\temporary internet files\o1k7ftleffman is finasstapp (2).doc 5 Section 5: Required Attachments Check off each attachment submitted. If not submitted, explain why. ❑ Organization/project plan (if new organization/project) Not applicable ❑ Profit and loss statements (3 year historical and 2 year projections) ❑ Balance sheets (3 year historical and 2 year projections) ❑ Letters of commitment of project funds (from banks, applicant, etc.) Irrevocable letter of credit ❑ Map or street address indicating the location of the project within the community ❑ Cost estimates for construction, machinery/equipment, furniture & fixtures, and operating expenses. See state application question 11 ❑ Authorization to conduct business in Iowa. Upon review of a submitted application, the City reserves the right to request additional information in order to assist the City with its evaluation of an application. cAdocuments and settingsWord\local settings\temporary internet files\o1k7ftleffman is finasstapp (2).doc 6 IOWA lif: I changings Michael L.Tramontina, Director Iowa Department of Economic Development Application for Financial Assistance Section A —Applicant &Project Information Business Development Division Iowa Department of Economic Development 200 East Grand Avenue Des Moines, Iowa 50309 www.iowalifechanging.com Updated: January 16, 2008 Instructions 1. All applicants shall complete Section A of the Application for Financial Assistance and attach only those section(s) for the program(s) to which the applicant is applying. Program Download and Complete Community Economic Bettermeant Account (CEBA) Section B Enterprise Zone Program (EZ) Section C High Quality Job Creation Program (HQJC) Section D Entrepreneurial Ventures Assistance Program (EVA) Section E Value Added Agricultural Products & Processes Financial Assistance Program (VAAPFAP) Section F Economic Development Set -Aside Program (EDSA) Section G 2. Please visit the IDED Web site, http://www.iowalifechanging.com/applications/bus_dev/index.html or contact IDED at (515) 242-4819 to see if this version of the application is still current. 3. Before filling out this application form, please read all applicable sections of the 2005 Iowa Code and Iowa Administrative Code (rules). http://www4.legis.state.ia.us/IAChtml/261.htm 4. 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. 5. Complete the applicable sections of the application fully; if questions are left unanswered or required attachments are not submitted, an explanation must be included. 6. Use clear and concise language. Attachments should only be used when requested or as supporting documentation. 7. Any inaccurate information of a significant nature may disqualify the application from consideration. 8. Upon completion of the application, please submit the following to the Business Finance Team at IDED: • The original, signed application form and all required attachments • One copy of the application form and all required attachments from which additional copies can easily be made. If electronic copies of the application and required attachments are available, please e-mail these documents to businessfinanceta7.iowalifechanging.com in addition to submitting the original plus one copy. Business Finance Team Iowa Department of Economic Development 200 East Grand Avenue Des Moines IA 50309 Application Due Dates IDED Board Meeting Application Due Date February 21, 2008 January 28, 2008 March 20, 2008 February 25, 2008 April 17, 2008 March 24, 2008 May 15, 2008 A ril 21, 2008 June 19, 2008 May 27, 2008 July 17, 2008 June 23, 2008 August 21, 2008 July 28, 2008 September 18, 2008 August 25, 2008 October 16, 2008 September 22, 2008 November 20, 2008 October 27, 2008 December 18, 2008 November 24, 2008 Section A — Applicant & Project Information Public Records Policies Information Submitted to IDED. The Iowa Department of Economic Development (IDED) is subject to the Open Records law (Iowa Code, Chapter 22). Treatment of information submitted to IDED in this application is governed by the provisions of the Open Records law. All public records are available for public inspection. Some public records are considered confidential and will not be disclosed to the public unless ordered by a court, the lawful custodian of the record, or by another person duly authorized to release the information. Confidential Records. IDED automatically treats the following records as confidential and they are withheld from public disclosure: • Tax Records • Quarterly Iowa Employer's Contribution and Payroll Report prepared for the Iowa Workforce Development Department • Payroll Registers • Business Financial Statements and Projections • Personal Financial Statements Other information supplied to IDED as part of this application may be treated as confidential under Iowa Code section 22.7. Following are the classifications of records which are recognized as confidential under Iowa law and which are most frequently applicable to business information submitted to IDED: • Trade secrets [Iowa Code §22.7(3)] • Reports to governmental agencies which, if released, would give advantage to competitors and serve no public purpose. [Iowa Code §22.7(6)] • Information on an industrial prospect with which the IDED is currently negotiating. [Iowa Code §22.7(8)] • Communications not required by law, rule or regulation made to IDED by persons outside the government to the extent that IDED could reasonably believe that those persons would be discouraged from making them to the Department if they were made available for general public examination. [Iowa Code §22.7(18)] Any requests for confidentiality beyond the items listed above may cause your application to be put on hold until those requests are resolved. Information supplied to IDED as part of this application that is material to the application and/or the state program to which the applicant is applying including, but not limited to the number and type of jobs to be created, wages for those jobs, employee benefit information, and project budget, are considered open records and will not be treated as confidential. Additional Information Available. Copies of Iowa's Open Record law and IDED's administrative rules relating to public records are available from the Department upon request. Section A — Applicant & Project Information 3 Applicant Information Name of Business: Kleffmann North America Inc. Address: 221 E College Street, Suite 212 City, State & Zip Code: Iowa City, Iowa, 52240 Contact Person: Daniel Abbott Title: COO Phone: 319-354-4185 x202 Fax: 319-354-5051 Email: daniel.abbott@kleffmann.us SIC or NAICS Code: 541910 Federal ID Number: 71-0995004 State of Incorporation: IA Does the Business file a consolidated tax return under a different tax ID number? ❑ Yes X No If yes, please also provide that tax ID number: 4. Is the contact person listed above authorized to obligate the Business? X Yes ❑No If no, please provide the name and title of a company officer authorized to obligate the Business: 5. If the application was prepared by someone other than the contact person listed above, please complete the following: Name: Title: Organization: Address: City, State, & ZIP Code: Phone: Fax: Email: Sponsor Information Please review the following table to determine who needs to sponsor this application. Depending on the programs being applied for, more than one sponsor may be necessary. Program Acceptable Sponsor CEBA City or County or Community College in which the Project Site is Located EZ Local Enterprise Zone Commission HQJC City or County in which the Project Site is Located EVA City or County in which the Project Site is Located; John Pappajohn Entrepreneurial Center; a Small Business Development Center; Business Accelerator; or an equivalent organization recognized by the IDED VAAPFAP City or County in which the Project Site is Located or Local Development Entity EDSA City or County in which the Project Site is Located Sponsor Organization: City of Iowa City Official Contact (e.g. Mayor, Chairperson, etc.): Regenia Bailey Title: Mayor Address: 410 E. Washington Street City, State & ZIP Code: Iowa City, Iowa, 52240 Phone: 319-351-2068 Fax: E-mail: regenia-bailey@iowa-city.org If IDED needs to contact the sponsor organization with questions, should we contact the person listed above? ❑ Yes X No, please contact the following person: Name: Wendy Ford Title: Economic Development Coordinator Address: 410 E. Washington Street City, State & ZIP Code: Iowa City, Iowa, 52240 Phone: 319-356-5248 Fax: E-mail: wendy-ford@iowa-city.org If necessary, please list information on additional sponsors in an attachment. Section A -Applicant & Project Information Certification & Release of Information I hereby give permission to the Iowa Department of Economic Development (IDED) 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 IDED 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 IDED related to this application is subject to Iowa's Open Record Law (Iowa Code, Chapter 22). 1 understand this application is subject to final approval by IDED and the Project may not be initiated until final approval is secured. (High Quality Job Creation Program applications may be submitted up to 12 months following the completion of the project.) I understand that IDED reserves the right to negotiate the financial assistance. Furthermore, I am aware that financial assistance is not available until an agreement is executed within a reasonable time period following approval. I hereby certify that all representations, warranties, or statements made or furnished to IDED 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: _5/27/2008 Signature Date Daniel J. Abbott Name and Title (typed or printed) For the Sponsor(s): Signature Date Name and Title (typed or printed) Please use the following if more than one sponsor is required. (For example, use this if a signature from the local Enterprise Zone Commission is required in addition to the signature from the Mayor of the sponsoring city.) Signature Name and Title (typed or printed) Date IDED 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, IDED may initiate legal action to recover incentives and assistance awarded to the Business. Section A — Applicant & Project Information Project Information Provide a brief description and history of the Business. Include information about the Business' products or services and its markets and/or customers. Kleffmann North America (KNA) is a North American branch of the Kleffmann Group, an international market research agency which has been operating in agricultural market research for more than 18 years. Currently the Group is represented in 18 countries and conducts its business in more than 30 countries around the world. We provide market research services to the largest global and smaller local players in agribusiness, crop protection, seed, machinery, animal health, food and feed industries. North American operation was set up in Iowa in early 2006 and as of today KNA is a fully -functional market research firm with our own capacities for all kinds of qualitative and quantitative research. KNA is capable of providing the highest level of the market research expertise and being able to support our work with the best known technical resources, both in terms of the data collection and their analyses. During 2007 and 2008, Kleffmann North America provided research services to leaders in the agricultural industry located across the United States, with such projects as gaining more in-depth knowledge of the planting and harvesting seasons during 2007 from farmers using specific equipment and other manufacturer's machinery and obtaining invaluable feedback on a potential major modification to equipment prior to the expense of full development in it's design. KNA spoke with farmers in 2007 and 2008 about their common chemical treatment processes during planting to help clients in developing more effective and safer products to protect agriculture and promote crop yield. 2. Business Structure: ❑ Cooperative X Corporation ❑ Limited Liability Company ❑ Not for Profit ❑ Partnership ❑ S-Corporation ❑ Sole Proprietorship State of Incorporation: IA 3. Identify the Business' owners. Burkhard Kleffmann, CEO Does a woman, minority, or person with a disability own over 50% of the Business? ❑ Yes X No If yes, is the business certified as a Targeted Small Business? ❑ Yes ❑ No 4. List the Business' Iowa Locations and the Current Number of Employees at each Location. 221 E College St, Suite 212, Iowa City, Iowa, 52240 - 3 full-time, 10 free-lance/contract What is the Business' worldwide employment? (Please include employees of parent company, subsidiaries, and other affiliated entities in this figure.) Germany —150 Brazil — 100 Argentina, Australia, Bulgaria, Columbia, Czech Rep, France, Great Britan, Hungary — est. 5 each Mexico, Poland, Romania, Russia, Singapore, Turkey, Ukraine — est. 5 each 6. Briefly 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.) Section A — Applicant & Project Information 6 Business expansion. KNA was set up in 2006 and currently employs 3 full -staff, 1 part-time staff, and 10 free-lance interviewers. It is planned that over the next 3 years the company will grow into a 15 full-time staff operation with an annual gross revenue of 2.2mi1 USD. KNA will need to expand its current office space and an additional 1,700 sq. feet of office space will be rented for expansion of the Research and Marketing Offices (currently 7 workstations; projected - 15). 2Q-3Q08 - KNA desires to expand to the proposed new office space. Also during this quarter, employee count will grow by 3-4. This growth in space and staff will allow a potential 25-50% client base gain. 4Q08 - Estimated expansion of 1-2 employees to assist and enhance client activity. More anticipated client base gain. 1Q09 - An additional 5-6 research/contact staff will be necessary, to interface with the target base respondents and obtain data/feedback for research. With this desired expansion, KNA can begin investing resources into both Business Intelligence and Kleffmann's own amis® seed program. Business Intelligence, the use of an organization's data to provide meaningful information and analysis to employees, customers, suppliers, and partners, will allow KNA to make more effective business decisions as it applies to agricultural market research. The Amis® system, designed by Kleffmann Group, is the first database in crop protection and seeds industries that provides a link between global market analysis and basic research data. By adding this function to the Iowa City, U.S. location, we provide support of seed data from the North America region and can give clients a rapid assessment of the most important target crop and country markets in North America. 7. Project Address (Street Address, City, and County): Currently under negotiations to lease space at 103 E. College St, Suite 102, Iowa City, Iowa, 52240, Johnson County. Type of Business Project: ❑ Startup X Expansion of Iowa Company ❑ New Location in Iowa ❑ Relocation from another State Please identify the management at the project location and his/her/their experience. Daniel Abbott — C00 — Bachelors of Arts, Computer Science, I.T., Customer Services, 10+ yrs. Experience. Thomas Klobucar — Account Director — PhD Market Research, 15+ yrs experience Natasha Ivanova — Account Director — 5 yrs. hands-on market research experience. 10. Has any part of the project started? ❑ Yes X No If yes, please explain. Section A — Applicant & Project Information N rn m A) f a x O co b4 ER to EH b4 EA 69 ER 69 69 b4 EA 69 b4 �N 69..:fA.. 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M V 6R C a) � C E .0 CD o a ao O C:)C O C)O N oo c c E � -- O K L 3 O UO m o.Ca 0 O 1 ) C o O � d a E �z 2 o d a00' O "f d ccu dCU H Z O � C Y O a) J o Z 0 L � Y o� Y w a d CD co = � cLi U m a`6i O f; m E d U U O o R 0 E 3 a+ Y++ C y Y E 0 .L. m M, 3 r d o C - .y. V O C m Y C C m c d a ..>- _N V ca ` e cen $ cn a)ca y c O N in O L dCD L y C N d = N CL m 5 co 12. Employee Benefits: Please identify all employee benefits provided by and paid for (in full or in part) by the Business. Employee Benefits Total Annual Cost Portion of Total Plan Provisions Provided by the (show on a per Annual Cost Paid (Include deductibles, coinsurance %, office visit Business employee basis) by the Business* co -payments, annual out-of-pocket maximums, face amounts, etc. Employee Family Employee Family 7,800 14,400 85% 55% $500/1,500 deductible, $15/25 Copay, 80/20 Medical/Health coinsurance. Insurance Dental Insurance Vision Insurance Life Insurance Short Term Disability (STD) Long Term Disability (LTD) * If the business's plan is self -insured, please use the amount paid by the business for costs associated with employee and family coverage during the past three years and then, determine the business' average annual contribution per employee for that three year period. Does the Business offer a pension plan, 401(k) plan, and/or retirement plan? X Yes ❑ No If pension plan: Average annual benefit per employee: If 401(k) Plan: Company match offered as a percentage of salary: 0%, select employees are offered 5% company contribution as incentive for employment. Average annual match paid as a percentage of salary: 0% If other retirement plans: Type of plan: Average annual benefit per employee: Does the Business offer a profit-sharing plan? ❑ Yes X No If yes, please indicate the total amount paid out each year for the past three year and then, determine the average annual bonus or contribution per employee for that three year period. Does the Business offer child care services? ❑ Yes X No Section A — Applicant & Project Information 13. 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. KNA's major competitors include DMRKynetec located in St. Louis, MO, IPSOS/Forward Research located in IL, OH, NC, MN, MO CA, and NY, and Agdata Directions located in Walla Walla, WA. 14. Will any of the current Iowa employees lose their jobs if this project does not proceed in Iowa? ❑ Yes X No If yes, please explain why and identify those jobs as "retained jobs" in the following question. "However, not growing the Iowa operation will hinder future opportunities to take on additional business that the capacity of a larger staff can address. Section A — Applicant & Project Information 10 15. List the jobs that will be retained and/or created 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 retained jobs, include the current hourly wage rate. For jobs to be created, including the startin hourly wage rate. Job Title Skills, Education, or Experience Number of Retained (R) or Starting or Current Hourly Required Jobs Created C Wage Rate Year 1 of the Project Marketing Services, Project Experience -- Project 1 C $70,000.00 Manager Management, Statistical Analysis, Market Research and / or Agriculture; Level of education -- BA or higher; Skills -- Word, Power Point, SPSS; personal presentations; client interaction Marketing Services, Assistant Experience -- Project 1 C $40,000.00 Project Manager Management, Market Research; Education -- BA or higher; Skills -- attention to detail, PC literate, organized, self-starter Personal Assistant to Experience -- Administrative; 1 C $40,000.00 Managing Director Level of education -- BA Skills -- logistics, administrative, communication, data base maintenance, PC/Word applications literate AMIS Division, Project Experience -- AMIS 1 C $60,000.00 Manager Coordination Level of education -- BA in Agriculture Skills -- Data base, Project (Panel) management coo Experience - IT, Customer Relations, 1 R $70,000.00 Project Management, Financial Level of education - BA in C.S. Skills - Project Management, IT, Staff Management Key Account Director Experience -- Project 2 R $80,000.00 Management, Statistical Analysis, Market Research and / or Agriculture; Level of education -- BA or higher; Skills -- Word, Power Point, SPSS; personal presentations; client interaction Year 1 Subtotal 7 Year 2 of the Project AMIS Division, Head Experience -- Agriculture (Crop, 1 C $70,000.00 Crop Protection areas); Education -- BA or higher; Skills -- Data base, Word, Power Section A - Applicant & Project Information Point; client interaction AMIS Division, Assistant Project Manager Experience -- Data base management, Agriculture (Crop, Crop Protection areas); Education -- BA in Agriculture; Skills -- data base, project management 1 C $50,000.00 Year 2 Subtotal 2 Year 3 of the Project Research Interviewer Experience -- phone, personal interviewing; Education -- HS and higher; Skills -- personal interaction, interviewing skills 6 C $17.00 Year 3 Subtotal 6 Total Number of Retained Jobs: 3 Total Number of Created Jobs: 12 Section A - Applicant & Project Information 12 16. Discuss each of the following items with respect to the proposed project: a) the current employment conditions in the community, include any business closures, unemployment rates, etc. and if applicable, the community's need for assistance in attracting the Business. The Business' current conditions are all stable, but as explained, limited based on it's current location. By providing the Business with the expansion needed, it retains a business type, agricultural market research, that has never existed in the Iowa City community and can only further the ability for Iowa City and the University of Iowa to attract agricultural -related students and residents. Area employment conditions remain stable to slightly growing, though there was a recent announcement of the bankruptcy of Victor Plastics in the region, along with some small layoffs at Pearson. The general condition of the national economy has been felt throughout our region in that growth expectations of area primary sector companies is down from last year. b) impact of the proposed project on the community and the state, include projections that reflect the impact on local and state tax revenue and any additional costs the community will incur as the result of the proposed project; Projected payroll increases of this project are nearly $550,000 annually once all twelve new employees are working. An average 5% tax burden would generate $27,500 in additional employee income taxes to the state, not to mention corporate taxes and sales taxes. It is reasonable to assume that these taxes alone would provide back to the state revenue in excess of the business assistance in less than two years. The expansion will take place in downtown Iowa City and no additional infrastructure requirements on the city's part will be required. With an average wage for the new positions of $21.72, excusing benefits, these new jobs will generate a fair amount of disposable income that will be used to purchase taxable items in the area and state, thus generating more revenue for local and state government. c) impact the proposed project will have on current employees, including the potential for increased skills and wages; and If the proposed project is successful, it will allow the Business to expand 3x to 4x. This will give all current employees the opportunity for much greater responsibility as client base will dramatically increase along with subordinate staff count. This increase in responsibility and revenue potential has a possibility of increasing current employee wage by 25-50% and require additional skill sets that must be obtained through local educational resources such as Kirkwood, New Horizons Learning Center, or the University of Iowa. d) impact the investment will have on the ability of the business to expand, upgrade, or modernize its capabilities. This investment in the Business will allow staff and client growth by 3x to 4x. The Business already utilizes some of the most modern equipment and software, but is drastically limited by physical space and staff count. With the proposed expansion, the Business will gain the physical space needed to increase staff count of both analysts and management so it can expand client base and bring business to Iowa City, Iowa. 17. Is the Business actively considering locations outside of Iowa? ❑ Yes X No If yes, where and what assistance is being offered? 18. There are three general justifiable reasons for assistance. Check the box next to the reason why assistance is needed to complete this project X Financing Gap - The Business can only raise a portion of the debt and equity necessary to complete the project. A gap between sources and uses exists and state and/or federal funds are needed to fill the gap. ❑ Rate of Return Gap — The Business can raise sufficient debt and equity to complete the project, but the returns are inadequate to motivate an "economic person" to proceed with the project. Project risks outweigh the rewards. ❑ Locational Disadvantage (Incentive) — The Business is deciding between a site in Iowa (site A) and a site in another state (site B) for its project. The Business argues that the project will cost less at site B and will require a subsidy to equalize costs in order to locate at site A. The objective here is to quantify the cost differential between site A and site B. Section A —Applicant & Project Information 13 What measures were analyzed to determine the amount and form of assistance needed? Actual cost of hardware, software, equipment, and space were estimated based on current fair market value. Kleffmann Group, the global parent company of Kleffmann North America, has since it's inception designed a business structure that expects each region to support itself with their own resources with very limited assistance from it's corporate offices in Germany. Kleffmann Group corporate has had to provide some funding support in the past and will continue to do so to get the KNA company division fully staffed and operational at it's most efficient level, but there are limits to these outside sources of funds and state aid is needed to fill this financial gap. 19. What amount of state assistance is requested based on the above -identified need? KNA is requesting direct assistance of $40,000 from the Iowa Department of Economic Development; state job training funds through Kirkwood Community College; and new job tax credits What type/form of assistance is preferred (e.g. loans, forgivable loans, tax incentives, etc.)? forgivable loans, zero interest loans, and tax incentives. A 50% forgivable loan and 50% loan is requested 20. Please indicate what program(s) the Business is applying to and download and submit those applicable sections: X CEBA (Complete Section B) ❑ EZ (Complete Section C) ❑ HQJC (Complete Section D) ❑ EVA (Complete Section E) ❑ VAAPFAP (Complete Section F) ❑ EDSA (Complete Section G) The Department reserves the right to review this application and determine, based on the proposed project and available program funds, which financial assistance program(s) is best suited for the Business' project. The actual program(s) utilized may vary from the programs indicated above. Section A — Applicant & Project Information 14 21. Fiscal Impact Ratio Information — Business Taxes IDED is required to calculate the fiscal impact 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. Instructions for Question 21 - IDED 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, IDED 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 IDED. - 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* $40,000 $60,000 $75,000 $ $ State Business Sales and Use Tax $2,100 $2,400 $0 $ $ * 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 $0 $0. $0 $ $ Local Option Sales Tax $0 $0 $0 $ $ Section A — Applicant & Project Information 15 Attachments Please attach the following documents: Al Business Plan At a minimum, include: • marketing study, • feasibility study, • projected profit and loss statements for three years into the future, • project budget, • production operations, • management structure, • personnel needs, • descriptions of product or process, • status of product/process development, and • patent status (if applicable). (Any information outlined above not included in the business plan should be submitted as supplemental information via a separate attachment.) A2 Copies of the Business' Quarterly Iowa Employer's Contribution and Payroll Report Summary Page (Page 1) for the past year and 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: • company name, date of payroll and source of payroll information • employee name and/or employee identification number • current hourly wage - do not include bonuses or other benefit values • indicate if the employee is full time (40 hours per week, 52 weeks per year) or part time. A sample Excel spreadsheet can be found at http://www.iowalifechanging.com/applications/bus dev/payroll template.xls A3 Affidavit that states the Business has not, within the last five years, violated state or federal statutes, rules, and regulations, including environmental and worker safety regulations, 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 found at http://www.iowalifechanging.com/applications/bus dev/sampleaffidavit.doc. A4 Financial Information (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. Application Checklist Section A — Applicant & Project Information 16 is C- W >-% 0 O O O N U � 0- CC:)-6 , > O � SZ -�--� N � U C Ca cn E O cn O � s? N L O U '— C N fU 0 O cn W CU }+ C L cu O U 00 ED cn U E c- N � cuO CD cu C N � c U "0 O .� sz cn (n N (u a)OU CL cn cu O U c- cn cu 2 N cn �. c .n c m .— C/) z C < 0 C < U) s CU � .s C l� � i CD OV)� �... -.. �. �., -�,. �... °-.. ""„, 0 .., Z �... Z a Z'Z �... -•.. ^�,. .Z 'Z Z Z Z Z Z Z Z Z W LL Q O ¢ Z Z Z Z'Z Z Z Z Z Z Z Z Z Z z Z Z Z 'Z Z Z U d W pa Z Z Z Z Z Z Z Z'Z Z :Z Z Z Z Z Z Z Z Z Z Z Z W N o T ¢ z ¢ Z ¢ Z ¢ Z ¢ Z ¢ Z ¢ ¢ z Z ¢ .iG... Z ¢ Z ¢ Z Z ¢ Z ¢ Z ¢ Z ¢ Z ¢ z ¢ Z ¢ Z V / U pN Z Z Z Z z z;-7 z Z Z Z Z Z Z Z Z Z Z V) m v LLI Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z V Q O--... -., --. -.. •-.. �,. --.. -.. --.. --. Z -, Z -. Z Z Z Z Z Z Z Z Z Z v O CO OCL C N cn cn O 0)0 cn N C cn O N C CU M Z � C p N =3 cn O 05 O C :D cn O � CL c p Cn cn O N U n O .4--0 N O O Z Ncn 'o � ♦., 0 U- O O U cn cn O ca U O to �0 cn C cn > cu ' N 0 s, N cn C a- C m p ca E C0 06 }' cn 0 U O a M O ca O CU C!3 C = ca W U � O N 7 () O _a c L O U _ cp � 4-- N C- cz Q 3 cn .� o CL 111 Ca p O �— O O O O o C V 0- ' C cn Q_ CD U O N N s�cn �- ._, �> a� U as c ¢ U ¢ °� o a� 0 C C -c � a� � ca C cu C N N C C' C '� p N c6 ti`'. ca a N i N N M- O CCf N O N C U 'a _O C- E E U Q = . C 00v)m0C)<(LU¢¢cnCK-ii __ C= C cF = V O N N --mwUU¢¢ O O cn Q IOWA life I changing° Which program component is the Business applying for? X Small Business Gap Financing ❑ New Business Opportunity ❑ New Product Development ❑ Modernization Component 2. Funding Information: Total Amount Requested: $ 40,000 Loan Amount: $ 20,000 Forgivable Loan Amount: $ 20,000 Section B - CEBA See Chapter 53, Section 261 in the CEBA Administrative Rules for maximum funding amounts. The CEBA program is not designed to provide 100% funding for any project and limits assistance based on the type of project submitted. 3. Security: 4. Does the business certify that at least 10% of the positions to be created will be made available to qualified Promise Job Participants? ❑ Yes X No 5. Are underground tanks (whether or not in current use) for the storage of petroleum products, agricultural or other chemicals, waste oil or other liquid waste or any other inflammable, corrosive, reactive or explosive liquid or gas located on the project site? ❑ Yes X No If yes, please explain: Will the Business be storing above -ground, on or about the project site, in tanks or otherwise, any liquid or gas (as described above) or any inflammable, corrosive, reactive or explosive solid, for any length of time or any purpose? ❑ Yes X No If yes, please specify: Will the Business be treating, transporting or disposing of any liquid, gas, or solid (described above) either on or about the project site or at a landfill or other treatment facility or upon any public street or highway, or on any waterway or body of water, or in any aircraft? ❑ Yes X No If yes, please specify the substance and what the Business will be doing with it. Section B — CEBA 12/21/2006 6. Does the Business generate solid or hazardous waste? ❑ Yes X No If yes, please describe and provide a copy of the Business' solid and hazardous waste reduction plans. Does the project include the initial construction of any building or facility? ❑ Yes X No If yes, does the local jurisdiction have a local building code in place which it enforces through a system of plan reviews and inspections? ❑ Yes ❑ No Attachments Please attach the following documents: B3 Community resolution authorizing the submission of the application Section B — CEBA 12/21 /2006 IOWA 4fe I changings Which program component is the Business applying for? X Small Business Gap Financing ❑ New Business Opportunity ❑ New Product Development ❑ Modernization Component 2. Funding Information: Total Amount Requested: $ 40,000 Loan Amount: $ 20,000 Forgivable Loan Amount: $ 20,000 Section B - CEBA See Chapter 53, Section 261 in the CEBA Administrative Rules for maximum funding amounts. The CEBA program is not designed to provide 100 % funding for any project and limits assistance based on the type of project submitted. 3. Security: personal Does the business certify that at least 10% of the positions to be created will be made available to qualified Promise Job Participants? ❑ Yes X No 5. Are underground tanks (whether or not in current use) for the storage of petroleum products, agricultural or other chemicals, waste oil or other liquid waste or any other inflammable, corrosive, reactive or explosive liquid or gas located on the project site? ❑ Yes X No If yes, please explain: Will the Business be storing above -ground, on or about the project site, in tanks or otherwise, any liquid or gas (as described above) or any inflammable, corrosive, reactive or explosive solid, for any length of time or any purpose? ❑ Yes X No If yes, please specify: Will the Business be treating, transporting or disposing of any liquid, gas, or solid (described above) either on or about the project site or at a landfill or other treatment facility or upon any public street or highway, or on any waterway or body of water, or in any aircraft? ❑ Yes X No If yes, please specify the substance and what the Business will be doing with it. Section B — CEBA 12/21/2006 6. Does the Business generate solid or hazardous waste? ❑ Yes X No If yes, please describe and provide a copy of the Business' solid and hazardous waste reduction plans. 7. Does the project include the initial construction of any building or facility? ❑ Yes X No If yes, does the local jurisdiction have a local building code in place which it enforces through a system of plan reviews and inspections? ❑ Yes ❑ No Attachments Please attach the following documents: B3 Community resolution authorizing the submission of the application Section B — CEBA 12/21/2006