http://www.governor.iowa.gov/index.php/newsroom/press_releases/ Press Releases from the Office of Governor Culver and Lt. Governor Judge of Iowa en darcy.pech@iowa.gov Copyright 2009 2009-11-20T17:54:26+00:00 http://www.governor.iowa.gov/index.php/press_releases/single/nov_20_1_09/ http://www.governor.iowa.gov/index.php/press_releases/single/nov_20_1_09/#When:17:54:26Z DES MOINES – First Lady Mari Culver on Monday will deliver Thanksgiving meals, including turkeys, to four Des Moines shelters serving women and youth in need. She will visit Youth Emergency Shelter Services, Iowa Homeless Youth Center, Beacon of Life, and New Directions Shelter. The Iowa Turkey Federation donated two turkeys for each shelter and staff at the Governor’s Office donated other food for the Thanksgiving meals. “The Thanksgiving holiday is a time for sharing our blessings and at this special time of year it’s important to remember our fellow Iowans in need,” the First Lady said. “The gift of food is a small way to let women and children in shelters know that they are in our thoughts this holiday season.” The First Lady will begin the day with a tour and media availability at Youth Emergency Shelter Services, which has received $248,609 from the Culver/Judge I-JOBS initiative for shelter renovations. Below is the schedule of the First Lady’s shelter visits on Monday. MONDAY, NOVEMBER 23, 2009 WHAT:    First Lady Mari Culver will deliver Thanksgiving meals to four Des Moines shelters. 11:30 a.m.        Youth Emergency Shelter Services 918 SE 11th Street Tour and media availability 12:15 p.m.        Iowa Homeless Youth Center – Lighthouse Host Home 1216 MLK Jr. Pkwy 1:00 p.m.  Beacon of Life 1:45 p.m.  New Directions Shelter 3001 Grand Avenue   2009-11-20T17:54:26+00:00 http://www.governor.iowa.gov/index.php/press_releases/single/nov_19_2_09/ http://www.governor.iowa.gov/index.php/press_releases/single/nov_19_2_09/#When:21:42:52Z DES MOINES – Governor Chet Culver today ordered a comprehensive review of each of the state’s 30 tax credit programs. He asked the Directors of the six state agencies that oversee the tax credit programs to submit a review of their respective department’s tax credit programs. Those Directors will then serve on a panel to review the programs and submit a report to the Governor addressing oversight, accountability, transparency, public reporting, cost-benefit, and which programs should be continued, curtailed, and or eliminated. The Governor named Iowa Department of Management Director (IDOM) Dick Oshlo to chair the panel. The review will be due to IDOM at the close of business on Dec. 4, 2009. The panel will hold two public meetings to discuss the review in Des Moines and Cedar Rapids the week of Dec. 7, 2009. Dates and locations of the public meetings are yet to be determined. The following letter was sent to agency directors today: Dick Oshlo                                           Iowa Department of Management                   State Capitol                                         Room G13                                           Des Moines, IA 50319                               Fred Hubbell                                         Iowa Department of Economic Development     200 East Grand Avenue                             Des Moines, IA 50309                               Jeff Ward Iowa Agricultural Development Authority                                                   505 Fifth Avenue, Suite 327                                 Des Moines, IA 50309-2322 Bret Mills Iowa Finance Authority 2015 Grand Ave. Des Moines, Iowa 50312 Cyndi Pederson Iowa Department of Cultural Affairs 600 East Locust Street Des Moines, IA 50319 Mark Schuling Iowa Department of Revenue Hoover State Office Building 1305 East Walnut Des Moines, IA 50319 Rob Berntsen Iowa Utilities Board 350 Maple Street, Des Moines, Iowa 50319 Dear Agency Directors: During recent months the Culver-Judge Administration has worked to address the budget challenges facing the State of Iowa. In preparation for submitting my budget to the general assembly in January, we are reviewing all areas of state spending, including annual state investments in the form of tax credits. It is essential that we evaluate the expense and effectiveness of each tax credit program to ensure that Iowans are receiving an appropriate return on our investment. Today I am announcing the creation of a tax credit review panel to be headed by Department of Management Director Dick Oshlo.  As Directors of tax credit administering agencies, you will also serve on the panel. The panel is to prepare a report to the Governor with recommendations for each tax credit program, including oversight, accountability, transparency, public reporting, cost-benefit, and which programs should be continued, curtailed, and or eliminated. There are many stakeholders in the state tax credit programs and we need to hear from each of them.  The panel will meet once in Des Moines and once in Cedar Rapids during the week of December 7th to allow the tax credit program participants as well as the general public to voice their opinions and concerns. To assist the panel with their work, I am asking you to submit information on your respective departments’ tax credits to the Iowa Department of Management by close of business December 4, 2009. Submissions should include the following information for each tax credit program administered by your agency: General description of the purpose of the tax credit Minimum, maximum and average value of tax credits issued Contingency liability for each tax credit Number of tax credits issued each year Number of individuals and/or businesses served by the tax credit Whether the tax credit is transferable and, if so, how many times Whether the tax credit is refundable Processes for oversight and regulation of the tax credit The Return on Investment for the tax credit Data on the fiscal impact of the tax credit for the past ten years, if available A description of what information is currently made available to the public for the tax credit(s) administered by each agency If you have any questions, please contact Dick Oshlo at 515-281-5201.Thank you for assistance in this important matter. Sincerely, Chester J. Culver Governor of Iowa 2009-11-19T21:42:52+00:00 http://www.governor.iowa.gov/index.php/press_releases/single/nov_19_1_09/ http://www.governor.iowa.gov/index.php/press_releases/single/nov_19_1_09/#When:20:15:44Z DES MOINES – Governor Chet Culver today announced actions from the Iowa Economic Development Board that “play to our strengths” as the state of Iowa aggressively competes for new investments and quality jobs. “When manufacturers and other businesses look at Iowa, they see a very competitive business climate and a workforce that’s better than you’ll find anywhere else,” said Governor Culver. “With these investments, we will soon see new growth in our communities, and new jobs for Iowans at a time when we need them the most.” Major growth in Davenport Kraft Foods Global Inc., one of the Quad Cities’ largest employers, is considering a $25 million expansion of meat processing and slicing at the Davenport facility. If Davenport is selected, the expansion would create 45 jobs over the next two years. Consumer demand for Kraft products is increasing and the company is looking at expanding the capabilities of the Davenport facility to meet the increase in product demand. The Economic Development Board awarded Enterprise Zone tax benefits to compete for the project. Von Maur, a department store chain headquartered in Davenport and operating in nine Midwestern states, is planning to construct an $8.6 million building in Davenport to handle rapid growth of Internet fashion retailing. The new office-warehouse-distribution facility is scheduled to open in the fall of 2010. The Economic Development Board today approved the project for Enterprise Zone tax benefits to support the creation of two jobs and the retention of eight jobs. Online business will extend the Von Maur’s reach to new customers outside of the Midwest and in rural areas. Expansion in Postville Agri Star Meat & Poultry LLC is investing $6.7 million to complete the upgrade and modernization of the kosher processing facility in Postville by the end of the year. Fryers and ovens will be installed to begin production of oven-baked beef and poultry as new lines at the plant. To support the expansion and improvements, the Economic Development Board today approved $600,000 from the value-added agricultural component of the Grow Iowa Values Financial Assistance Program (GIVFAP). The project was also approved for Enterprise Zone tax benefits to create 168 jobs and retain 140 jobs in Postville. Seeking a breakthrough in Coralville Cellular Engineering Technologies (CET) seeks to develop a more efficient technology platform to manufacture adult stem cells for use in medical research, drug development and clinical therapy. The Economic Development Board awarded $50,000 from the Iowa Demonstration Fund for the Coralville firm to seek proof of the concept. The award was recommended by the Technology and Commercialization Committee of IDED’s Innovation & Commercialization Division.  CET Inc. is Iowa’s only regenerative medicine company and a leading supplier of commercial adult stem cells and tissue culture media. Printing services expansion in Des Moines Gannett Satellite Information Services (GANSAT) was awarded tax benefits from the Enterprise Zone program to expand the Regional Toning Center in Des Moines which provides prepress services to the Des Moines Register and other Gannett newspapers. The application approved by the Economic Development Board pledges to create 20 jobs and retain 6 jobs in the expanded center by March of 2011. Flood recovery awards in Linn county Sign Productions of Linn county was awarded $385,000 to relocate to a new building and acquire new manufacturing equipment as a part of business recovery from the 2008 flood, retaining 74 jobs. Stamats Communications of Cedar Rapids was awarded $500,000 toward its flood recovery costs, retaining 93 jobs. The Economic Development Board approved both awards today from the disaster recovery component of the Grow Iowa Values Financial Assistance Program (GIVFAP). Revolving loan funds to east central Iowa The Economic Development Board approved a request from East Central Intergovernmental Association (ECIA) to recapitalize a revolving loan fund for local business assistance in Cedar, Clinton, Delaware, Dubuque and Jackson counties. The board awarded $133,000 to ECIA from the opportunities & threats component of the Grow Iowa Values Financial Assistance Program (GIVFAP). Supporting success in targeted industries Other applications pending review by the Director carry awards for information technology training, internship programs and networking events.  Recommended by the Innovation & Commercialization Division are the following awards: A total of $40,300 from the Targeted Industries Internship Program for five companies to hire interns: ESCO Electric-Safety, Marion (3 interns); ESCO Energy, Marion (2 interns); Automation Control Systems, Marion (3 interns); Brownells, Inc., Montezuma (3 interns) and ILNorplex, Postville (2 interns). An award of $5,158 from the Information Technology Training Program for TeamQuest Corporation, Clear Lake to upgrade the skills of 15 employees. And two Targeted Industries Networking Program awards: $5,000 for a workshop of the Bioeconomy Institute at Iowa State University and $1,827 to the Entrepreneurial Development Center, Cedar Rapids for the “Navigating the Shark Tank of Investors” event. Small Business financing Two Targeted Small Business (TSB) program applications were also recommended for IDED Director approval by the Targeted Small business Loan Review Board for businesses in Fort Dodge and Iowa City. 2009-11-19T20:15:44+00:00 http://www.governor.iowa.gov/index.php/press_releases/single/nov_18_2_09/ http://www.governor.iowa.gov/index.php/press_releases/single/nov_18_2_09/#When:21:47:31Z DES MOINES – Below are details on public events on Thursday and Friday for Governor Chet Culver and First Lady Mari Culver. THURSDAY, NOVEMBER 19, 2009 Governor Chet Culver WHAT:    Governor Chet Culver will speak at the Iowa Association of School Boards annual convention. WHERE:  Hy-Vee Hall 730 Third Street Des Moines, IA WHEN:    11:30 a.m. First Lady Mari Culver WHAT:    The First Lady will highlight renovation projects at three Mason City shelters that received I-JOBS Public Service Shelter Grants: Northern Lights Alliance for the Homeless ($200,000), Francis Lauer Youth Services ($140,000), and NIAD Center for Human Development, a domestic violence shelter ($96,000). WHERE:  Northern Lights Homeless Shelter 307 N. Monroe Mason City, IA WHEN:    1:45 p.m. FRIDAY, NOVEMBER 20, 2009 Governor Chet Culver WHAT:    Governor Culver will participate in a press conference announcing the “Innovate Iowa” initiative, an extension of efforts by the Council for American Medical Innovation. This partnership is aimed at urging Congress to adopt a national policy agenda on medical innovation. WHERE:  Pappajohn Center, Room 208 (2nd floor) 1200 Grand Avenue Des Moines, IA WHEN: 11:30 a.m. WHAT: Governor Culver will sign a proclamation for Adoption Month (November) and Adoption Day (Nov. 21) in Iowa. In attendance will be staff and volunteers from the Iowa Foster and Adoptive Parents Association, foster and adoptive families, and adoption advocates. WHERE: Governor’s formal office State Capitol, 1st floor Des Moines, IA WHEN: 1:30 p.m. WHAT: Governor Culver, First Lady Mari Culver and their children will participate in a Thanksgiving “turkey pardon” ceremony. WHERE:  State Capitol Grounds Des Moines, IA WHEN:    2:45 p.m. 2009-11-18T21:47:31+00:00 http://www.governor.iowa.gov/index.php/press_releases/single/nov_18_1_09/ http://www.governor.iowa.gov/index.php/press_releases/single/nov_18_1_09/#When:20:23:48Z DES MOINES – Governor Chet Culver announced today that Iowa is receiving $1.1 million under the American Recovery and Reinvestment Act of 2009 (ARRA) to study the “green” jobs market. Under ARRA, the federal government created a series of competitive grants to promote economic growth and assist in the development of new technologies. Iowa will use its grant to gather information on the labor supply and demand involved in growing a green economy. “As Governor, I am committed to growing our economy in all sectors – especially renewable energy,” said Governor Culver. “These funds will help us identify new and innovative ways to grow this important industry and create more green-collar jobs of the future. I want to thank the Obama Administration for recognizing our strength in renewable energy and helping us build Iowa’s future.” The U.S. Department of Labor selected the Iowa State Labor Market Information Improvement Grant to receive $1,172,614. The project is a partnership between the Governor’s Office, Iowa Workforce Development, Iowa Central Community College, MidAmerican Energy and the University of Northern Iowa Institute for Decision Making. The funds will be used to study Iowa’s labor supply and demand within the green economy, and study the state’s need to build deconstruction and recycling capacities and develop a human capital inventory. A partnership between the workforce agencies in Iowa, Montana, Nebraska, North Dakota, South Dakota, Utah and Wyoming also received $3,877,949 to research the green economy’s impact across the states, develop a consortium for improvement processes and enhance the labor exchange process between the states. Governor Culver and Lt. Governor Patty Judge have been tireless advocates for renewable energy in Iowa. Their signature energy independence initiative, the Iowa Power Fund, is a $100- million research and development fund that will discover the future of renewable energy and reduce our use of fossil fuels. They created the Office of Energy Independence, a statewide office that is helping to reduce our state’s energy use. In addition, they have worked hard to bring new green energy companies into Iowa.  As a result of their work, Iowa is home to several major wind energy manufacturers, and will soon be home to one of the first cellulosic ethanol plants in the nation. 2009-11-18T20:23:48+00:00 http://www.governor.iowa.gov/index.php/press_releases/single/nov_17_1_09/ http://www.governor.iowa.gov/index.php/press_releases/single/nov_17_1_09/#When:23:19:14Z DES MOINES—The State of Iowa and the State Police Officers Council (SPOC) have reached an Understanding to protect 43 SPOC state jobs that are targeted for layoffs pursuant to Governor Chet Culver’s 10 percent across the board budget cuts mandated by Executive Order 19.  The 43 positions include 20 state troopers , 20 gaming enforcement officers, one fire inspector and two special agents in the Division of Narcotics Enforcement. This Understanding between the State of Iowa, Executive Branch and SPOC leadership will now be presented to the entire SPOC membership for a vote .  The terms of the agreement will not be implemented unless and until approved by a majority vote of the membership. This Understanding involves the following: Each of the approximately 640 state employees who are covered by the SPOC Master Agreement will be required to take 5 (five) mandatory unpaid days during the remaining 7 months of FY2010 which ends June 30, 2010. 529 Department of Public Safety and 111 Department of Natural Resources employees are members of the Council. This provision will create approximately $847,435 in savings. The deferred compensation program for State Employees will undergo temporary changes to suspend the State’s contribution through June 30, 2010.  The employees’ contribution to the deferred compensation program will remain as currently allowed under the SPOC Master Agreement.  This provision will create approximately $226,232 in savings. The combined savings of approximately $1,073,667 will be used to save 43 SPOC jobs that would otherwise have been laid off in order to satisfy the 10 percent across the board budget reductions mandated under Executive Order 19. In the event the terms of the Understanding are approved by its membership, no SPOC state employee will be laid off between the date of approval and the end of the current fiscal year (June 30, 2010). Through June 30, 2011, the end of the bargaining agreement, employees who are outside the bargaining units and who are being laid off will not be permitted to displace employees who are in the bargaining units covered by the SPOC Master Agreement. Through June 30, 2011, any vacancies of bargaining until members that occur will not be filled by part-time, seasonal or contract employees. Through June 30, 2011, any vacancies of bargaining unit members will be filled by seniority.   Next week , the SPOC Board will submit the understanding to the union members for a full vote. An announcement on the outcome of the vote is expected close to the AFSCME vote on November 25th, 2009. “I want to thank the leadership at SPOC for joining with us to protect essential public safety jobs,” said Governor Culver. “This understanding will help to keep Iowans safe while meeting our obligation to balance the state budget.  I am very pleased by the agreement and I encourage the membership to vote yes on this measure.” “SPOC bargained in good faith with the Governor and his staff to reach this understanding that will now be sent out to our entire membership for them to determine whether or not to approve this understanding”, explained Sue Brown, Executive Director of SPOC.  “Our Board and our membership are interested in any reasonable measures that can help keep our officers on the job, protecting the citizens of this State.”  2009-11-17T23:19:14+00:00 http://www.governor.iowa.gov/index.php/press_releases/single/nov_16_1_09/ http://www.governor.iowa.gov/index.php/press_releases/single/nov_16_1_09/#When:16:36:51Z DES MOINES – Governor Chet Culver today announced promising results from efforts to decrease Iowa’s rates of youth detention, especially for minority youth who are overrepresented in the state’s juvenile justice system. Statewide, Iowa has decreased its overall detention of juveniles by about 15%, especially for low-level juvenile offenders, in each of the last two years, without any impact on public safety. In Black Hawk County, detention rates of minority youth declined by more than 20% for calendar year 2008. In Polk County, minority detention declined by 23.2%, and in Woodbury County minority detention was cut by 5.2%. “I created the Youth, Race and Detention Task Force with one simple goal in mind – to help reduce the overrepresentation of minorities in Iowa’s prison system,” said Governor Culver. “Today, I am proud to announce that these efforts are working. As Governor, I will continue to do everything I can to ensure that not only minorities, but all Iowans, have the tools and resources they need for a brighter future.” Executive Order 5, signed on Oct. 30, 2007, established the Governor’s Youth, Race and Detention Task Force, administered by the Criminal Juvenile and Justice Planning Division of the Iowa Department of Human Rights. Because national studies suggest that detaining low-level juvenile offenders makes them more likely to become involved in the justice system later on, DHR officials solicited assistance from the Casey Foundation in 2007 in an attempt to reduce Iowa’s use of juvenile detention. Three Iowa counties – Black Hawk,  Polk, and Woodbury – have received technical assistance from the Casey Foundation. Two have shown particular progress in making reductions in detention use. Between 2007 and 2008, Black Hawk reduced its average detention population by 31%. Polk reduced its average daily population even more: 40%. Figures for 2009 are expected to show continued reductions. Local officials assert that these decreases have been accomplished without an adverse effect on public safety. With minorities – particularly African-Americans – over-represented in detention facilities, part of the reform effort is directed at reducing referrals of minority youth to detention. While figures so far don’t show a reduction in the percentage of minority youth referred to detention, they show that the reductions seen thus far have been accomplished both among white (-15.7%) and minority (-12.8%) youth. Rep. Wayne Ford (Des Moines) joined Governor Culver in congratulating the Youth, Race and Detention Task Force on their promising initial results. “I also want to applaud Governor Culver’s efforts in appointing this group to look at an issue we have been facing for too long. I appreciate that Governor Culver’s experience as a former teacher and sports coach gives him a different type of sensitivity toward youth, especially minorities,” he added.  2009-11-16T16:36:51+00:00 http://www.governor.iowa.gov/index.php/press_releases/single/nov_13_2_09/ http://www.governor.iowa.gov/index.php/press_releases/single/nov_13_2_09/#When:22:26:10Z DES MOINES – First Lady Mari Culver will highlight the importance of Iowa’s nonprofit organizations in opening remarks Monday at the Iowa Nonprofit Summit. The theme for this year’s summit is “Turning Challenge into Opportunity.” It will focus on nonprofits’ role in rebuilding Iowa communities impacted by the floods and storms of 2008, and recovering from the nationwide recession. These events have placed increased demands on nonprofits, with higher need for services and decreased funding from all revenue sources. Topics for the conference include collaboration among nonprofits, local and state governments, and business; volunteer solutions; and communicating with constituencies to better serve Iowans. Below are details on the First Lady’s appearance. MONDAY, NOVEMBER 16, 2009 WHAT:    First Lady Mari Culver will give opening remarks at the Iowa Nonprofit Summit WHERE:  State Historical Building 600 E. Locust Des Moines, IA WHEN:    9:30 a.m. 2009-11-13T22:26:10+00:00 http://www.governor.iowa.gov/index.php/press_releases/single/nov_13_1_09/ http://www.governor.iowa.gov/index.php/press_releases/single/nov_13_1_09/#When:21:10:47Z DES MOINES – Governor Chet Culver announced today that 11 local highway infrastructure projects worth nearly $13.7 million have been let by the Iowa Department of Transportation (DOT). Ten projects are funded in total or part through the American Recovery and Reinvestment Act of 2009 (Recovery Act). Acceptance of the low-bid proposals and awarding of contracts are contingent upon final approval of the respective parties. Also included in the Oct. 20, 2009, letting was the first I-JOBS project under the Bridge Safety Fund. A $674,550 bid from Peterson Contractors Inc. of Reinbeck was accepted for the replacement of a bridge on U.S. 57 in Black Hawk County over a creek 0.4 miles east of the Grundy County line. “The process of getting shovels into the ground is beginning,” said Governor Culver. “This a very positive step forward in rebuilding Iowa’s infrastructure, putting people to work, and strengthening our economy. I-JOBS and the Recovery Act are essential pieces of our long-term strategy to build Iowa’s future, and I am encouraged by these actions by the Department of Transportation Iowa will receive approximately $358 million for state and local roadway, bridge, trail, and freight rail projects through the Recovery Act. In addition, Governor Culver’s $830 million I-JOBS initiative will provide $115 million for transportation projects throughout the state. I-JOBS was the Culver/Judge Administration’s top legislative priority for the 2009 session. Combined with regular state and federal highway funds and carry-over work from the 2008 construction season, Iowa will set an all-time record for highway and bridge spending in the 2009 construction season. Recovery Act projects announced today are located in the following counties: Carroll, Clinton, Dubuque, Grundy, Johnson, Linn, Plymouth, Polk, and Pottawattamie. As noted above, the I-JOBS project is in Black Hawk County. Below is a list of the 10 projects funded in total or part through the federal Recovery Act: Cedar Rapids Project: Concrete pavement with asphalt resurfacing for Iowa 100 (from Twixt Town Road to Commerce Way and Iowa 922 from 40th Street to Tama Street) Award: $3,206,222.91 Contractor: Peterson Contractors Inc., Reinbeck, IA Plymouth County Project: Concrete pavement replacement for County Road K-22 (from Woodbury County line north to County Road C-60) Award: $2,761,618.33 Contractor: Cedar Valley Corp., Waterloo, IA Johnson County Project: Concrete pavement grading/replacement for Iowa 965 (120th Street northwest to Linn County line) Award: $1,826,568.75 Contractor: Concrete Foundations Inc., New Hampton, IA Project: Concrete pavement overlay (unbonded) for Oak Crest Hill Road (from south city limits of Hills to the Washington County line) Award: $1,845,120.47 Contractor: Metro Pavers Inc., Iowa City, IA Clinton Project: Concrete pavement grading/replacement for 19th Avenue (Mill Creek Parkway to Springdale Drive, phase 1) Award: $815,052.79 Contractor: Wicks Construction Inc., Decorah, IA Carroll Project: Asphalt resurfacing of North Clark Street (Anthony Street to East Seventh Street) Award: $808,257.90 Contractor: OMG d/b/a Tri-State Paving, Estherville, IA Polk County Project: Concrete pavement widening for U.S. 6 (U.S. 6 and NW 111th Street) Award: $586,698.20 Contractor: Concrete Technologies Inc., Urbandale, IA Council Bluffs Project: Transverse joint repair for South 35th Street (Nebraska Avenue to 23rd Street) Award: $492,346.45 Contractor: Bross, Chester Construction./C.B. Equipment, Hannibal, MO Grundy County Project: Asphalt sidewalk/trail around the east side of the Grundy County Lake and from the campground to the existing Grundy County Lake trail Award: $433,008.94 Contractor: Peterson Contractors Inc., Reinbeck, IA Cascade Project: Asphalt resurfacing of Tyler Street (First Avenue East. to U.S. 51) Award: $242,759.29 Contractor: Mathy Construction d/b/a River City Paving, Dubuque, IA For more information on Iowa and the Recovery Act, visit recovery.iowa.gov. Project lists from previous letting results can be found at this link: City street and county road projects. 2009-11-13T21:10:47+00:00 http://www.governor.iowa.gov/index.php/press_releases/single/nov_12_6_09/ http://www.governor.iowa.gov/index.php/press_releases/single/nov_12_6_09/#When:21:43:52Z DES MOINES – Governor Chet Culver today announced four new disaster assistance programs for small businesses and landlords impacted by the 2008 storms and floods, as well as improvements to the duplication of benefits policy for homeowners, at a press conference in Cedar Rapids. The new business assistance programs will be funded by $85 million of the state’s nearly $800 million in Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). “It gives me great pleasure to say we have additional assistance for Iowa’s hard-working small business owners and landlords,” Governor Culver said. “As the state of Iowa continues to recover from one of the largest natural disasters in U.S. history, more help is now available to those trying to keep their doors open for business. We believe the programs announced today will fill a gap that currently exists.” The Iowa Department of Economic Development (IDED) and Rebuild Iowa Office (RIO) worked closely with business leaders and landlords across the state to develop the following programs, which will assist with remaining unmet needs: Business Rental Assistance Program:  This program is for businesses remaining in or locating in rental space that was physically damaged by the 2008 natural disasters. Initially, this program allowed business owners up to $50,000 to help offset building rental lease payments for a maximum of six months. Now in addition to rental payments, recipients will be allowed to use the $50,000 for expenses associated with replacing damaged machinery, office furniture, supplies and other equipment. The maximum award a business can receive through this program is $50,000. Loan Interest Expense Program:  The continued existence of many businesses is threatened by the expense of new debt acquired as a result of the disasters. This program provides funds to business owners to pay for the interest on an SBA or private loan for disaster recovery. Up to a total of $50,000 in funds will be provided to a business, for a maximum of three (3) years. Commercial Rental Income Gap Program:  This program is designed to assist with cash flow for commercial building owners to offset lost revenue from vacant rental space that was physically damaged by the disaster. A maximum of $25,000 for lost rent will be reimbursed to commercial landlords per unit. Residential Landlord Business Support Program:  This program is designed to compensate disaster-impacted residential landlords providing affordable housing for lost rental income. Landlords may receive up to $15,000 per business impacted by the disaster.  One application will be available for all of these programs. Funds will be awarded on a first-come, first-served basis. Small business owners and landlords should apply at their local Council of Government or Entitlement City. Applications will be available by December in most locations.  At today’s press conference, Governor Culver also announced improvements to the housing duplication of benefits policy. When the Jumpstart Housing program was first announced, any type of down payment assistance – or award a homeowner received to purchase a replacement house – was considered a bridge loan, meaning eventually the money had to be repaid after a buyout took place.  After long conversations with the U.S. Department of Housing and Urban Development, the State has finally received approval for Iowans who received state or federal assistance through the Jumpstart program to keep up to $25,000 of their down payment assistance award towards a replacement or newly constructed home. Up to $25,000 of this money will no longer be deducted from a person’s buyout funds. “The average price of a home in a buyout as a result of the 2008 disasters costs much less than the average price of a home sold in Iowa today, leaving people with a gap that we need to help fill,” said Governor Culver. “By allowing homeowners to keep up to $25,000 toward a new home, we can help meet that need.” The Governor also encouraged impacted Iowans who are in a buyout and have identified a replacement home to apply for down payment assistance at their local Council of Government or Entitlement City as soon as possible, if they haven’t done so already. Depending on their income, homeowners may qualify for down payment assistance, which can then be used toward the purchase of a replacement home. For additional information on these programs or for a listing of area Council of Governments or Entitlement Cities, log on to the Rebuild Iowa Office Web site at www.rio.iowa.gov or call (515) 242-5004. 2009-11-12T21:43:52+00:00