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HomeMy WebLinkAbout~Master - IEDA High-Quality Jobs Program Contract for Boehringer Ingelheim Vetmedica, Inc. RESOLUTION NO. 15-133 RESOLUTION APPROVING IOWA ECONOMIC DEVELOPMENT AUTHORITY HIGH-QUALITY JOBS PROGRAM CONTRACT FOR FINANCIAL ASSISTANCE FOR BOEHRINGER INGELHEIM VETMEDICA, INC., FOR THE CITY OF AMES,IOWA WHEREAS, Boehringer Ingelheim Vetmedica, Inc., (BIVI) is a subsidiary of Boehringer Ingelheim USA based in Ridgefield, Connecticut, and part of the German Boehringer Ingelheim Group, a global pharmaceutical company; and, WHEREAS,BIVI develops,manufactures,and markets veterinary pharmaceutical products, and the Ames facility, located in the ISU Research Park, operates a health management center, diagnostic laboratory, and conducts biological research; and, WHEREAS,the company also operates a large manufacturing facility in Fort Dodge and has smaller operations in Sioux Center and Riverside; and, WHEREAS,the company has selected its Ames and Fort Dodge locations for expansion and has applied for economic development assistance from the Iowa Economic Development Authority (IEDA)with a local match provided by the City of Ames,limited to our existing Industrial Property Tax Abatement Program; and, WHEREAS, the City Council endorsed an application for assistance to the IEDA at the December 9,2014,meeting, and the application for assistance was approved and contract awarded by the IEDA; and, WHEREAS, the contract award covers both the Ames and Fort Dodge expansion projects, and will include construction of lab and office space in the ISU Research Park and manufacturing expansion in Fort Dodge; and, WHEREAS,total investment expected for the project is approximately$112,000,000,with just under$12,000,000 in Ames, and the IEDA is providing High-Quality Job Program tax credits and other tax incentives totaling$2,130,381; and, WHEREAS,though the company is committing only one additional job with the expansion, the expectation is that there will be several new jobs in Ames, in addition to the 54 at the current facility; and, WHEREAS,the IEDA has an open economic development incentive project approved late in 2010 with state-wide employment requirements,and BIVI intends to use the employment growth generated by the current proposed project to meet the requirements of the earlier agreement; and, WHEREAS,the City of Ames is a small part of the 2010 incentive agreement that included large expansions by BIVI in Fort Dodge and Sioux Center; and, WHEREAS, for BlVI to receive the local match, the company will need to apply for the City's Industrial Abatement Program and the project must qualify with the terms; and, WHEREAS,the IEDA is estimating an abatement amount for Ames at$1,184,446 across all taxing bodies; and, WHEREAS, this would indicate a value of improvements greater than the $12,000,000 in the contract and application since this amount was based on four years of lease payments,equipment, furniture and fixtures, and research and development expenses. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the contract for economic development assistance with Boehringer Ingelheim Vetmedica,Inc., the Iowa Economic Development Authority, and the City of Fort Dodge with local match to be limited to Industrial Property Tax Abatement is hereby approved. ADOPTED THIS 3'day of March, 2015. / , �R C�A —Y A. x. 67----AAaJ Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Corrieri Seconded by: Nelson Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 3rd day of March, 2015.