| | | | | | | | CITY OF WATERLOO
Council Communication
Resolution approving an Amendment to the Contract with Tyson Fresh Meats, Inc., of Waterloo, Iowa, and the Iowa Economic Development Authority, originally executed November 6, 2017, for High Quality Jobs Program-Tax Credit Component Incentives, to extend the project completion date, and authorizing the Mayor and City Clerk to execute said document.
City Council Meeting: 10/5/2020
Prepared: 9/30/2020 |
| | | | | | | | SUBJECT:
| Resolution approving an Amendment to the Contract with Tyson Fresh Meats, Inc., of Waterloo, Iowa, and the Iowa Economic Development Authority, originally executed November 6, 2017, for High Quality Jobs Program-Tax Credit Component Incentives, to extend the project completion date, and authorizing the Mayor and City Clerk to execute said document. |
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| | | | | | | | Submitted by:
| Submitted By: Noel Anderson, Community Planning and Development Director |
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| | | | | | | | Recommended Action:
| Adopt a resolution to approve the contract amendment. |
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| | | | | | | | Summary Statement:
| The High Quality Jobs program provides qualifying businesses tax credits and direct financial assistance to off-set some of the costs incurred to locate, expand or modernize an Iowa facility. To qualify for this very flexible assistance package that includes loans, forgivable loans, tax credits, exemptions and/ or refunds, eligible businesses must meet certain wage threshold requirements.
Tyson is requesting an extension in their timeline to hire employees for their recent expansion. The extension would be for 8 months.
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| | | | | | | | Expenditure Required:
| None |
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| | | | | | | | Policy Issue:
| Policies 1, 3, and 4 in the Strategic Plan dealing with Economic Development. |
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| | | | | | | | Background Information:
| Eligibility Requirements:
- A business must meet wage thresholds requirements.
- Actual award amounts will be based on the business's level of need; the quality of the jobs; the percentage of created or retained jobs defined as high-quality; and the economic impact of the project.
- Created jobs must pay at least 100 percent of the qualifying wage threshold at the start of the project and 120 percent of the qualifying wage threshold by project completion and through the project maintenance period unless in a distressed area.
- Retained jobs must pay at least 120 percent of the qualifying wage threshold throughout the project completion and maintenance periods.
- The business must provide a sufficient benefits package to all full time employees that includes at least one of the following:
- Business pays 80 percent of medical and dental premiums for single coverage plans, OR
- Business pays 50 percent of medical and dental premiums for family coverage plans, OR
- Business pays for some level of medical and dental coverage and provides the monetary equivalent value through other employee benefits.
Tax Incentives:
- The State's refundable research activities credit may be increased while the business is participating in the program.
- A local property tax exemption of up to 100 percent of the value added to the property to a period not to exceed 20 years may be available.
- An investment tax credit equal to a percentage of the qualifying investment, amortized over five years. This tax credit is earned when the corresponding asset is placed in service and can be carried forward for up to seven additional years or until depleted, whichever occurs first.
- A refund of state sales, service or use taxes paid to contractors or subcontractors during construction.
- For distribution center projects, a refund of sales and use taxes paid on racks, shelving, and conveyor equipment.
- To assure your addition/expansion can benefit from this program, businesses must apply prior to the beginning of the project.
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