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HomeMy WebLinkAbout2021-01-04-J01H IEDA - Apple Contract Amendment 1 AGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: January 4, 2021 AGENDA ITEM: Consideration of approval of a resolution approving Contract Amendment No. 1 between Iowa Economic Development Authority; Apple, Inc.; and the City of Waukee [Economic Development Assistance Contract No. 18-TC-008] FORMAT: Resolution SYNOPSIS INCLUDING PRO & CON: The City entered into an agreement with the Iowa Economic Development Authority and Apple, Inc. in 2018 related to the High Quality Jobs Program for the proposed Apple Development. Apple requested and the Iowa Economic Development Authority agreed to an amendment to the original contract as it relates to the project completion and maintenance period dates. The Iowa Economic Development Authority is requesting that the City approve the proposed Amendment No. 1 to the Contract. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: Staff would recommend approval of the resolution. RECOMMENDATION: Approve the resolution ATTACHMENTS: I. Proposed Resolution II. Contract Amendment PREPARED BY: Brad Deets, Development Services Director REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: J1H THE CITY OF WAUKEE, IOWA RESOLUTION 2021- APPROVING CONTRACT AMENDMENT BETWEEN IOWA ECONOMIC DEVELOPMENT AUTHORITY; APPLE, INC.: AND THE CITY OF WAUKEE [ECONOMIC DEVELOPMENT ASSISTANCE CONTRACT NO. 18-TC-008] IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal Organization; AND, WHEREAS, in 2018, the City entered into an Economic Development Assistance Contract with the Iowa Economic Development Authority (IEDA) and Apple, Inc. (IEDA Contract Number 18-TC-008); AND, WHEREAS, Apple, Inc. has requested approval of an amendment to the original contract pertaining to the project completion and project maintenance dates; AND, WHEREAS, the IEDA Board has approved an extension of the project completion and project maintenance dates and requests the City of Waukee’s consent and approval. NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council that the Contract Amendment between Iowa Economic Development Authority; Apple, Inc.; and the City of Waukee [Economic Development Assistance Contract No. 18-TC-008] is hereby approved and that the Mayor is authorized to execute the same on behalf of the City. Passed by the City Council of the City of Waukee, Iowa, and approved this the 4th day of January 2021. ____________________________ Courtney Clarke, Mayor Attest: ___________________________________ Rebecca D. Schuett, City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN Anna Bergman R. Charles Bottenberg Chris Crone Larry R. Lyon Ben Sinclair EXHIBIT D – JOB OBLIGATIONS Revised December 2019 Recipient: Apple Inc. Community: City of Waukee Contract Number: 18-TC-008 This Project has been awarded Tax Incentives from the High Quality Jobs Program (HQJP) – Tax Credit Component. The chart below outline the contractual Job Obligations related to this Project. Data in the “Employment Base” column has been verified by IEDA and reflects the employment characteristics of the facility receiving funding before this award was made. Jobs to be retained as a part of this Project must be included in these calculations. Data in the “Jobs To Be Created” column outlines the new full-time jobs (including their wage characteristics) that must be added to the employment base at the Project as a result of this award. At the Project Completion Date and through the Maintenance Period Completion Date, the Recipient must achieve, at a minimum, the numbers found in the “Total Job Obligations” column. HQJP JOB OBLIGATIONS Employment Jobs Total Project Completion Date: August 31, 2022* August 31, 2027* Base To Be Created Job Maintenance Period Completion Date: August 31, 2024 August 31, 2029 Obligations Total employment at project location 0 50 50 Average wage of total employment at project location N/A Qualifying Laborshed Wage threshold requirement (per hr) $29.12 Number of jobs at or above qualifying wage 0 50 50 Average Wage of jobs at or above qualifying wage N/A Notes re: Job Obligations 1. When determining the number of jobs at or above the qualifying wage, wages will include only the regular hourly rate that serves as the base level of compensation. The wage will not include nonregular forms of compensation such as bonuses, unusual overtime pay, commissions, stock options, pension, retirement or death benefits, unemployment benefits or other insurance, or other fringe benefits. 2. Employment Base includes 0 “Retained Jobs”. If the Recipient uses or proposes to use a non-standard work week (8 hours a day, 5 days a week, 52 weeks a year including holidays, vacation and other paid leave), check the box below and describe that alternative schedule. The alternative schedule must meet the requirements of 261 IAC 173.2. If the box is not checked or if no alternative schedule is provided, IEDA will consider “Full-time Equivalent (FTE) Job” to mean the employment of one person for 8 hours per day for a 5-day, 40-hour work week for 52 weeks per year, including paid holidays, vacations and other paid leave. X The Recipient shall use an alternative work week for purposes of its employees described in the Contract. The alternative work week is as follows: [description]. Certain employees may elect to work 10 hours per day for a 4-day, 40-hour work week for 52 weeks per year, including paid holidays, vacations, and other paid leave. *Company has requested a 5 10-year performance period Sufficient Benefits Deductible Requirements Recipient shall provide Sufficient Benefits with a maximum deductible of $1,250 for single coverage or $2,500 for family coverage.