Iowa Administrative Code › Agency 261 - Economic Development Authority › Part IV - Business Development Division › Chapter 68 - High Quality Jobs Program (HQJP) › Rule 261-68.3 - Application Process and Review

Current through Register Vol. 47, No. 3, July 24, 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.