HomeMy WebLinkAbout~Master - Approving Economic Development Assistance Contract with Berdex USA RESOLUTION NO. 23-022
RESOLUTION APPROVING ECONOMIC DEVELOPMENT ASSISTANCE
CONTRACT WITH BERDEX USA INCLUDING A GRANT
FROM THE HOTEL/MOTEL TAX FUND BALANCE
FOR THE CITY OF AMES,IOWA
WHEREAS, at its February 8, 2022 meeting, the City Council approved the endorsement
of an Iowa Economic Development Authority (IEDA) application for economic development
assistance for Berdex USA. The IEDA assistance package included an $11,420 local match, with
$5,710 of this amount paid by the Ames Economic Development Commission(AEDC)and$5,710
paid by the City; and,
WHEREAS,Berdex is a Netherlands-based company that builds trailers. The Berdex USA
project will include leasing 18,000 square feet of space at the former Caremoli facility to set up
and begin manufacturing three types of livestock trailers for swine and cattle producers. This
facility will also act as the Berdex USA headquarters; and,
WHEREAS, the project includes $1,895,000 in a combination of building remodeling,
capital lease costs, equipment, and other hard costs to remain eligible for the State incentives. The
project requires the addition of 16 manufacturing jobs and four administrative jobs with benefits
and pay rates starting at over 100% of the Story County median labor shed rate which is expected
to exceed 130% after 36 months; and,
WHEREAS, an analysis of the Berdex proposal, utilizing the matrix for industrial and
manufacturing companies, indicates that Berdex would qualify for the City's "best terms" within
36 months of establishing operations. This score is influenced by good wage rates, the number of
jobs, and no requirements for investment in City infrastructure; and,
WHEREAS, the AEDC approved its portion of the local match on February 4, 2022. The
City's portion of the match ($5,710) will be financed from the Hotel/Motel Tax Fund balance,
which is used for economic development projects. The City match will be in the form of a grant
rather than a forgivable loan due to the low dollar amount. Incentives from the state include a
combination of a refund of sales tax, investment tax credits, and research activities credits with an
estimated benefit value of$57,100, awarded as part of the state's High-Quality Jobs Program.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the Economic Development Assistance contract with Berdex USA including a $5,710 grant
from the Hotel/Motel Tax Fund balance is hereby approved.
ADOPTED THIS 171h day of January, 2023.
Renee kall, City Clerk John A. Haila, Mayor
Introduced by: Betcher
Seconded by: Corrieri
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 17th day of January, 2023.