Current through Register Vol. 47, No. 6, September 18, 2024
(1)
Application. Businesses
applying for the program shall utilize a standardized application developed by
the authority. A signature from an official authorized to represent the
affected local community is required to indicate that the community supports
the project. For a project with a qualifying investment of $10 million or more,
the application shall include an ordinance or resolution of the community's
governing body approving the project.
(2)
Applicability of wage
requirements. The qualifying wage threshold applicable to a project is
the threshold in effect on the date the fully completed project application is
received by the authority. If such an application is received but not acted
upon by the board before the qualifying wage thresholds are updated, the
thresholds in effect on the date the application was received will remain in
effect for a period of three months after the month the thresholds were
updated. The authority shall have sole discretion to determine whether an
application is fully completed. Qualifying wage thresholds will be calculated
and applied as described in rule 261-68.8(15).
(3)
Job requirements. The
created job and retained job requirements applicable to a project, identified
as described in rule 261-68.7(15), will be established at the time of
application. Job requirements will be based on the base employment level as of
the date the application was fully completed and submitted to the authority and
eligible business's job projections and will be utilized to determine the
amount of tax incentives and assistance.
(4)
Investment requirements.
The investment requirements applicable to a project, identified as described in
rule 261-68.9(15), will be established at the time of application. Investment
requirements are based on an eligible business's estimates of project costs and
will be utilized to determine the amount of tax incentives and
assistance.
(5)
Negotiations. Authority staff may negotiate with the applicant
concerning dollar amounts, terms, collateral, conditions of award, or any other
elements of the proposed award. All forms of tax incentives and assistance
available under the program are subject to negotiations. The authority shall
consider all of the following factors in negotiating with the business:
a.
Level of need. The
following factors will determine the authority's assessment of need:
(1) Whether the business can raise only a
portion of the debt and equity necessary to complete the project. The existence
of a gap between the financing required and the committed financing indicates
that tax incentives or assistance may be needed to fill the gap.
(2) Whether the likely returns of the project
are inadequate to motivate a company decision maker to proceed with the project
even if sufficient debt or equity can be raised to finance the project. The
existence of such a condition indicates that the project's risks may outweigh
its rewards and that tax incentives or assistance may be needed to reduce the
project's risks.
(3) Whether the
business is deciding between an Iowa site and a site in another state for its
project and the cost of completing the project at the out-of-state site is
demonstrably lower. Such a condition indicates that tax incentives or
assistance may be needed to equalize the cost differential between the two
sites. The authority will attempt to quantify the cost differential between the
sites.
b.
Quality of the jobs. The authority shall place greater
emphasis on projects involving created or retained jobs rated as higher quality
jobs pursuant to the factors listed in Iowa Code section
15.329(3)
"a."
c.
Percentage of created jobs defined as high quality jobs. The
authority will consider the number of high quality jobs to be created in
proportion to the total number of created jobs in determining what amount of
tax incentives and assistance to offer the business.
d.
Economic impact. In
measuring the economic impact to this state, the authority shall place greater
emphasis on projects that demonstrate the factors listed in Iowa Code section
15.329(3)
"c."
(6)
Board approval and
notice.
a. Authority staff will
review applications to ensure program eligibility requirements are satisfied.
Authority staff may request additional information from the business or may use
other resources to obtain the needed information.
b. Complete and eligible applications and
supporting documentation will be submitted to the board for its consideration.
Authority staff will generate and submit to the board a report that summarizes
the project and provide a recommendation on the amount of tax incentives and
assistance to be offered to the business. Staff may provide to the board
additional information or documentation as determined by staff. The board may
offer an award in a lesser amount or that is structured in a manner different
from that requested or recommended by authority staff. Meeting eligibility
requirements does not guarantee that assistance will be offered or provided in
the manner sought by the applicant.
c. The due diligence committee of the board
established pursuant to 261-subrule 1.3(7) will review applications and make
recommendations regarding the size and conditions of awards. The board may
accept or reject recommendations from the due diligence committee.
d. If the board approves an award, an
applicant will be notified in writing, including any conditions and terms of
the approval.
