HomeMy WebLinkAbout~Master - Settlement Agreement and Contract Modification for State Financial Assistance on behalf of BIVI RESOLUTION NO. 16-053
RESOLUTION APPROVING SETTLEMENT AGREEMENT AND CONTRACT
MODIFICATION FOR ECONOMIC DEVELOPMENT FINANCIAL ASSISTANCE ON
BEHALF OF BOEHRINGER INGELHEIM VETMEDICA, INC.,
FOR THE CITY OF AMES
WHEREAS, in July 2011, Council approved and entered into an economic development
assistance agreement with Boehringer Ingelheim Vetmedica, Inc., (BIVI), the Iowa Economic
Development Authority(IEDA), and the cities of Fort Dodge and Sioux Center; and,
WHEREAS, the agreement was related to the acquisition of Fort Dodge Animal Health by
BIVI and an expansion of Iowa-based operations, including the BIVI Health Management Center
located in the ISU Research Park; and,
WHEREAS, at the Ames location, the company promised to retain 41 jobs and create an
additional 15 jobs; and,
WHEREAS, the City provided a loan of$61,000 as a local match for its expansion project
in Ames, which is to be forgiven if the job requirements are met; and,
WHEREAS,the overall project also included expansion of existing facilities in Fort Dodge
and Sioux Center; and,
WHEREAS, though the company has met employment requirements of the agreement in
Ames, it has not in other locations, and because of this, the IEDA has initiated a settlement
agreement reducing incentives and modification of the contract for the maintenance period; and,
WHEREAS,all parties will need to sign off on the settlement and modification since all were
part of the original agreement; and,
WHEREAS,the settlement agreement only provides adjustment to the IEDA incentives,and
the City of Ames and BIVI will settle on the local match in April 2016 per the terms of separate
agreement for the local match; and,
WHEREAS, BIVI has met the requirements of the local match agreement with the City of
Ames, and it is expected that the agreement will be closed in April with BIVI, meeting all terms;
and,
WHEREAS, this incentive agreement was separate from and prior to the agreement that
included the construction of the new BIVI facility at the ISU Research Park
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the settlement agreement and contract modification for economic development with the Iowa
Economic Development Authority and Boehringer Ingelheim Vetmedica, Inc., and the cities of
Ames, Fort Dodge, and Sioux Center, are hereby approved.
ADOPTED THIS 9`'day of February, 2016.
lij.& A. tom• ���
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Nelson
Seconded by: Corrieri
Voting aye: Betcher, Beatty-Hansen, Corrieri, Gartin,Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 9t' day of February, 2016.