Author Archives: Greater Cedar Valley Alliance & Chamber

National Small Business Week June 16-22

Every year since 1963, the U.S. Small Business Administration takes the opportunity to highlight through National Small Business Week the impact of outstanding entrepreneurs, small business owners, and others from all 50 states and U.S. territories. Small business owners can participate in online-only panel discussions on hot topics like social media and business financing starting daily at 4pm ET. All events, in-person and online, will be streamed live on www.sba.gov/smallbusinessweek . Also visit this site for a full schedule of events and additional information.

The Greater Cedar Valley Alliance & Chamber salutes our small business investors and our partnering organization including Main Street Waterloo, Cedar Falls Community Main Street and many neighborhood and business districts who help create and maintain a business friendly environment. The Cedar Valley economy was built by small business owners and entrepreneurs. They are equally vital today and essential to building our future.

The importance of supporting small business is illustrated in this infographic.

Please mark your calendars for our Small Business Expo in partnership with UNI’s Small Business Development Center, November 7, 2013.

KWWL Building to Undergo Major Renovation

Remodeling project points facility toward the future with a nod to the past

6 June 2013 – KWWL today announced plans to renovate the historic KWWL building in downtown Waterloo. The building, located at 500 East 4^th Street, has been the home of KWWL since 1958. The announcement stems from an exhaustive review conducted by the company over the past year to assess the facilities and the feasibility of renovation or relocation to another site. It was determined that the present and future needs of the company could be satisfied in the current location.

The station and building are owned by Quincy Newspapers, Inc., a private, family-owned company that operates 12 television stations, two radio stations and two newspapers. Quincy acquired KWWL in 2006.

This decision will launch an extensive, multi-million dollar two-phased rehabilitation and modernization program. The building is a four-story structure comprising 55,000 square feet and is considered an historic landmark of downtown Waterloo.

Phase One plans will include restoration of the building’s exterior, including the first-floor glass façade. Concurrently, the existing facilities of the television station will be brought up to contemporary broadcasting requirements. These plans call for first- and second-floor interior renovation. Phase Two of the project will involve renovation of the building’s third and fourth floor. The exact details of the Phase Two renovation are still in the planning stage.

The building, originally called the Overland Hanson Building, was built in 1914 and was a car dealership noted for its four floors of automobiles and service. The building still contains the oversized freight elevator used for transporting automobiles from floor to floor. Later, the building was known as the Insurance Building before becoming the KWWL Building in 1958.

Quincy is seeking federal and state historic designation for the property along with local support from the city of Waterloo. The company will begin the project upon successful completion of the historic tax credit application.

“KWWL is a Waterloo institution and the decision to remain in our building and in the city of Waterloo is important for the city and for us,” said KWWL Vice President and General Manager Jim McKernan. “KWWL covers a 21-county area encompassing

Contact: Jim McKernan , V.P. General Manager, Phone: 319-291-1200.

Economic Indicators Steady Iowa Business Council Releases Second Quarter Results

DES MOINES, IOWA – June 3, 2013. Expectations in sales, capital spending, and employment for Iowa’s largest employers over the coming six months moved very little as business leaders continue to express a positive, though cautious, economic outlook. The 2013Q2 Iowa Business Council (IBC) Overall Economic Outlook Survey Index (OSI) remained at 64 – the same as three months ago (64) but four points lower than this time last year (68). The 2013Q2 survey was completed by the corporate members of the Iowa Business Council during the second half of May, the results of which were released today.

The 2013Q2 Sales OSI is 70, one point lower than last quarter (71) and three points behind one year ago (73). All of the CEOs expect steady or increased sales over the next six months – substantially higher (5%), higher (67%), or no change (29%). None of the survey respondents expect sales levels to decrease – lower (0%) or substantially lower (0%).

The 2013Q2 Capital Spending OSI is 64, which is three points ahead of last quarter (61) but five points below the 2012Q2 survey (69). Ninety-five percent of IBC corporate members expect steady or increased capital spending levels through November 2013 – substantially higher (14%), higher (33%), or no change (48%). Five percent of survey respondents expect capital spending, i.e., investments in facilities and equipment, to decrease – lower (5%) or substantially lower (0%).

The 2013Q2 Employment OSI is 58, two points lower than three months ago (60) and five points behind this time last year (63). Eighty-six percent expect hiring levels for the next six months to remain steady or grow – substantially higher (0%), higher (43%), or no change (43%). Fourteen percent expect employment needs to decrease – lower (14%) or substantially lower (0%).

“Business leaders remain optimistic but guarded in their assessment of the economy,” said Stan Askren, the Chairman, President, and CEO of HNI Corporation in Muscatine and 2013 Chair of the Iowa Business Council.

NOTE: Rounding may cause the addition of percentages in a measure to equal more or less than 100%.

VIEW THE PDF TRENDS CHART HERE

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The quarterly Iowa Business Council Economic Outlook Survey incorporates a diffusion index, wherein each survey response falls on a 100-point scale. Using weighted averages, an index number is then calculated that measures the sentiment of IBC executives projecting business activity six months into the future. An Outlook Survey Index (OSI) of 50 indicates that the business sentiment of all survey participants is average; an OSI above 50, the sentiment is positive; below 50, the sentiment is negative. This index generates a numeric measure going forward that attempts to more precisely estimate the economic condition of business activity in Iowa.

The Economic Outlook Survey is conducted quarterly by the Iowa Business Council to inform Iowa businesses and Iowans about projected trends in the state’s economy, which may prove useful for business and economic planning purposes.

Iowa Leading Indicators Index held steady for four consecutive months

The Iowa Leading Indicators Index held steady at 106.1 in April for a fourth consecutive month after remaining at 106.0 from October through December of 2012. The monthly diffusion index increased to 62.5 after holding steady at 56.3 for the two previous months reflecting widespread gains that were offset by large drops in just two components. The six-month annualized change in the index continued to be positive (0.2%) for the fifteenth consecutive month but dropped closer to zero while the six-month diffusion index fell to 56.3. The non-farm employment index increased for the 31st consecutive month, but the increase fell below 0.1 percent in April for the fourth time in the last 22 months. The ILII’s recent stability suggests that Iowa employment growth may continue to slow, but levels should remain steady through summer.

The two most positive contributors in April were building permits and the new orders index. The most positive contributor in April was building permits, with the 12-month moving average rising to the highest level since March 2008. In April 2013, the 12-month moving average for building permits increased 1.9 percent to 840 from 824 in March but remained 27.3 percent below the historical average for April (1998-2008). The new orders index was a positive contributor for the first time in six months, exceeding the value of 69.0 from one year ago. The monthly index value jumped to 77.9 from the March value of 69.5 after slowly rising from the low of 53.5 in November 2012.

The two largest negative contributors were the agricultural futures profits index and the national yield spread. The agricultural futures profits index was a negative contributor for the fifteenth consecutive month. The 12-month moving averages of expected profits for livestock fell again this month, while expected profits for both crop components also decreased. The last time that expected profits fell for all of the components in the same month was May 2012. Expected profits for corn fell in April for the first time in nine months while expected profits for hogs dropped for a tenth consecutive month. Although near futures cattle prices were up 6.1 percent over last year, expected cattle profits have been falling for the last two years. The national yield spread decreased to 1.70 in April from 1.87 in March as the long-term rate fell 20 basis points and the short-term rate fell 3 basis points. Long-term rates dropped throughout April after a disappointing national employment report raised concerns the economy was slowing.

Unemployment insurance claims, the Iowa stock market index, and manufacturing hours were all positive contributors in April. Unemployment insurance claims decreased in April for the 41st time in 42 months. Claims were 7.8 percent below the number of claims made in April 2012, but were 3.5 percent above the historical monthly average for April (1987-2008). Of the 34 stocks included in the Iowa stock market index, 17 had positive gains in the month of April, including 7 of the 11 financial-sector companies. On average, Iowa stock prices rose 1.8 percent in April. The monthly value of manufacturing hours increased to 41.5 hours which was 0.6 hours above the March 2013 level and 0.2 hours above the level reported for April 2012. Recent jumps in hours brought the monthly value from over an hour below historical levels in February to 0.4 hours over historical April levels (1996-2008).

The only other negative contributor in April was diesel fuel consumption. The 12-month moving average decreased to 55.34 from 55.37 in March after four months of increases.

The Department of Revenue Iowa Leading Indicators Index April 2013 Report is available on the Web: http://www.iowa.gov/tax/taxlaw/econindicators.html. Please contact Victoria Daniels at (515) 281-8450 or Victoria.Daniels@iowa.gov if you have any questions about the report.

Investor Kaplan University’s Cedar Falls Campus Receives Blue Zones Designation

CEDAR FALLS, Iowa, June 10, 2013—The Kaplan University-Cedar Falls campus has been designated a Blue Zones worksite by the Cedar Falls Blue Zones Project, a community wellness initiative that recognizes the steps taken by local employers to create healthier and happier work environments for employees. In a ceremony held Monday at the school’s campus, Kaplan University-Cedar Falls Campus President Gwen Bramlet-Hecker was presented with an official certificate of the designation.

“Kaplan University-Cedar Falls is honored to be a Blue Zones worksite,” said Bramlet-Hecker. “Because the Blue Zones principles are in alignment with our own values, we feel that the designation is a great opportunity for us to expand on existing efforts to help our employees have a more fulfilling work experience.”

The Blue Zones designation requires both employer and employee participation in activities that promote overall physical, emotional and social health. Employers implement a series of “well-being actions” that enhance work environments, while employees make personal pledges to commit to at least one of them.

In keeping with the Blue Zones commitment, the staff at Kaplan University-Cedar Falls has formed an internal wellness committee that schedules monthly wellness activities for employees. The committee also promotes events such as nutritional potlucks and community walk/run marathons.

Sponsored by Healthways, the Blue Zones Project was developed based on principles devised by Dan Buettner, National Geographic explorer and author of the book, “The Blue Zones: Lessons for Living Longer From the People Who’ve Lived the Longest.”

Amanda Goodman Joins KWWL Family

Amanda Goodman will join Ron Steele next month as co-anchor of the KWWL News at Five, Six and Ten.

A native of Pennsylvania, Goodman has worked as a reporter and anchor for more than 10 years at stations in Texas and North Carolina. She also served as a journalism instructor at West Texas A&M University.

As an anchor and mother, Amanda is very much in tune with issues facing both parents and children. Her AnchorMOM blog, along with numerous stories she has produced over the past few years, focused on important matters for both groups. Goodman’s most significant effort has been “The Bully Project,” a social media- fueled initiative that gave voice to the victims, and held accountable those responsible. “Giving kids who are bullied a voice is the number one priority for me. No child should ever be afraid to ride a school bus, go to school or go out on the playground.”

Goodman looks forward to bringing her passion for news to the Midwest. “I’m incredibly excited to come to Eastern Iowa and be a part of a station and region with such rich history,” said Goodman. “I have been nothing but impressed by the quality and caliber of the people in this organization.”

“It’s not an easy position to fill,” said Dan Schillinger, KWWL News Director. “But Amanda has the skills and the qualities we look for in a lead anchor. Her style and stories fit well with what we do here.”

A mother of two, Amanda and her husband enjoy spending their free time playing sports in the backyard and coming together on Sunday for special family meals. An avid football fan, Goodman closely follows Notre Dame and the Philadelphia Eagles. “Both of my children were baptized wearing Fighting Irish booties. I look forward to having debates with Mark Schnackenberg about his Steelers.”

“Amanda is an excellent fit for our viewers.” Said Jim McKernan, V.P. and General Manager at KWWL. “She has a solid journalistic background and a level of dedication to causes that matter to so many in our viewing area.”

“As a mom, I have a “vision” of the ideal place my children would grow up in.” Goodman added. “I never truly thought it existed until coming to Eastern Iowa. The moment I stepped off the plane, it felt like home.”

Goodman begins at KWWL on July 8, and will take her place on the anchor desk on July 31.

QNI is a privately held family owned company with roots in the newspaper business dating back to 1835. Quincy Newspapers, Inc. was formed in 1926 with the merger of The Quincy Herald and The Quincy Whig-Journal.

The company owns and operates NBC affiliates in Quincy and Rockford Illinois, Waterloo and Sioux City, Iowa, Rochester, Minnesota and Bluefield, West Virginia. QNI also operates ABC affiliates in Madison, La Crosse, Eau Claire, Wausau and Eagle River, Wisconsin and a FOX affiliate in South Bend, Indiana. QNI operates another FOX affiliate in Rochester, Minnesota under a shared services agreement. QNI also owns and operates an AM-FM radio combination in Quincy and daily/Sunday newspapers in Quincy, Illinois and Newton, New Jersey.

Iowa Property Taxes Reduced for Commercial & Industiral Tax Payers

The persistence of Iowa commercial and industrial property owners finally paid dividends in a reduction in your property tax burden! After several tries over the last decade, the legislature and Governor came to agreement on the start to property tax reform, and provided modest tax reduction at the same time.
We appreciate those of you who contacted your legislators, encouraging them to finally act on an inequity in the tax system that has persisted – and has been an impediment to economic growth – for far too long.

While not all was achieved that we were looking for – the rate of rollback is much less than the original proposal – it is a start. Beyond this, it may provide the motivation for a reform of the entire system in years to come.

The Greater Cedar Valley Alliance & Chamber, through its Government Relations Committee and our director of governmental relations Steve Firman, collaborated with a coalition that included the Iowa Chamber Alliance, Iowa Association of Business & Industry, Professional Developers of Iowa, and Iowa Taxpayers Association to continually impress upon our elected officials the need for this change.

Conference Committee Report for SF 295 – Property Tax

Division I—Business Property Tax Credit (“Senate Plan” element)

Creates a Business Property Tax Credit for property taxes due and payable in fiscal year 2015.
$50 million is appropriated in fiscal year 2015 to the Business Property Tax Credit Fund
$100 million is appropriated in fiscal year 2016
$125 million is appropriated in fiscal year 2017
$125 million every year thereafter
Each person who wishes to file a claim will obtain a form from the County Assessor.
The form does not have to be filed again until the property is sold or transferred.
The state will use the money appropriated into the Business Property Tax Credit Fund to reimburse local governments the amount of credits issued.
When fully phased in, at least $145,000 of property value on every business would be equal to the residential rollback
Total Fiscal impact to local governments is $16 million when fully phased in.

Division II —Property Tax Assessment Limitation and Replacement (“House Plan” element)

Assessment growth limitation moves from 4% to 3% on Ag and residential immediately.
Commercial and Industrial will assessed at 95% of valuation starting January 1, 2013; at 90% starting January 1, 2014; and is frozen at 90% thereafter.
The State will appropriate money for replacement of the lost revenue. Payments will be made by IDR to county treasurers:

FY 15 $78.8 million (includes multi-residential)

FY 16 $162.8 million (includes multi-residential)

FY 17 $154.1 million (does not include multi-residential and capped at this level

going forward)

Division III—Multi-residential Property Classification

Creates a new property classification: Multi-residential
Multi-residential will include apartments, nursing homes, assisted living facilities , and certain other rental property
The existing classifications are Residential, Agricultural, Commercial, Industrial
Multi-residential properties will eventually equal the residential rollback after 10 years.
Total fiscal impact to local governments is $85.3 million when fully phased in.

Assessment Year 2013 95%

Assessment Year 2014 90%

Assessment Year 2015 86%

Assessment Year 2016 82%

Assessment Year 2017 78%

Assessment Year 2018 75%

Assessment Year 2019 71%

Assessment year 2020 67%

Assessment year 2021 63%

Assessment year 2022 and thereafter: Residential rate

Division IV —Telecommunications Property

Determining the taxable value of each company stays the same
Each telephone company will receive a partial exemption from taxation on the value of the company’s property. This is phased in, with half in assessment year 2013 (FY 15), and the remainder being added in assessment year 2014 (FY 16)
Department of Revenue is directed to complete a comprehensive study of the telecommunications industry and report recommendations for change to the General Assembly

Assessed value $0-$20M $20-$55M $55-$500M >$500M

Exemption 40% 35% 25% 20%

Division V – Iowa Taxpayers Trust Fund Tax Credit

Each year, beginning July 1, 2014, the balance of the Taxpayers Trust Fund exceeds $30 million a tax credit will be issued to Iowa taxpayers
The tax credit will be issued to Iowans with a tax liability
$60 million is the maximum amount that can flow into the taxpayer trust fund each year
$60 million equals a $27 credit per filer. $120 million would equal $54

Division VI -Property Assessment Appeal Board

Five year sunset – July 1, 2018, lower salaries, adding another appraiser to the board (replacing the finance profession with state and local tax policy experience, allowing for a speedier hearing process.)

Division VII—Earned Income Tax Credit

Increases the Earned Income Tax Credit from 7% to 14% in tax year 2013; 15% in tax year 2014
The credit remains refundable.
The increase is effective retroactively to January 1, 2013.
Fiscal impact: $30.8 million in FY 14 , increasing to $34.5 in FY 15

Advanced Manufacturing Hub Step Closer with State Funding

The Cedar Valley TechWorks is one step closer to becoming the physical location of an Advanced Manufacturing Hub for the region and state thanks to legislation adopted this week. Nearly $4 million was included in Iowa Economic Development Authority appropriations for the project.

The IEDA’s Iowa Invocation Council, which will administer the funds, has been working closely with the Cedar Valley TechWorks and Greater Cedar Valley Alliance & Chamber to establish the Campus as the designated site for the Hub.

The bulk of the funds will construct improvements in the Tech 1 building on the Campus. A portion of the funds will be used for the University of Northern Iowa to purchase a 3-dimensional (3D) printer to fabricate on-demand molds for cast components to support advanced manufacturing , in collaboration with TechWorks.

“With this funding, we can make the capital and infrastructure improvements to the Tech 1 building needed to attract more technology and bio-products related industrial operations and partners to the campus. The investment in building improvements and equipment will prepare space for new businesses and educational programs, and bring tremendous momentum and excitement to the Campus as these projects move forward alongside the previously announced anchor projects,” states Cary Darrah, General Manager of the Cedar Valley TechWorks Campus. “ We are grateful to the entire Cedar Valley legislative delegation for its bi-partisan advocacy for this funding, especially Senator Bill Dotzler who really went to bat for the Cedar Valley and the TechWorks Campus. His work for this and other economic development issues this year is recognized by legislators from both sides of the isle.”

Jerry Thiel, Director of UNI’s Metal Casting Center is also optimistic about the impact of the collaboration on the industry statewide, “The capabilities of having technology like this will undoubtedly increase the overall competitiveness of Iowa manufacturers by allowing them to deliver products to the market at an unprecedented rate.”

Randy Pilkington, Executive Director, UNI Business and Community Services adds,
“This is a substantial investment in advanced manufacturing not just for the Cedar Valley, but for the entire state of Iowa. It also shows UNI’s commitment to advanced manufacturing statewide.”

What this means to the Cedar Valley

“The Cedar Valley is known as Iowa’s center of Advanced Manufacturing,” states Steve Dust, CEO of the Greater Cedar Valley Alliance & Chamber. “With the high concentration of manufacturing in our economic area, and the manufacturing technology -related resources of UNI and our higher education partners, the Cedar Valley is the prime location to establish the state’s hub of leading edge applied manufacturing technologies. As businesses and entrepreneurs from all over the Midwest access our equipment and facilities to improve and produce innovative products, we take another step in innovation led economic development in the Cedar Valley economy, and toward fulfilling the original vision for the Campus. We’re proud to be known as the Advanced Manufacturing Hub,” concludes Dust.

The Governor is expected to sign the bill into law before the end of June.

The Cedar Valley TechWorks is a 30-acre advanced manufacturing and biotechnology research, development and education center, and business and manufacturing cluster. The campus is located in downtown Waterloo, Iowa adjacent to the John Deere operations. The Cedar Valley TechWorks is owned and managed by the Greater Cedar Valley Alliance & Chamber.

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Alliance & Chamber Investor, Banno, unveils marketing tool Kernel

Banno, a provider of data-enriched Web and transaction marketing services for financial institutions, introduced Kernel today at FinovateSpring.

Kernel powers interactions between financial institutions and customers to deliver the best product offering based on interest, across any channel. It helps financial institutions to deliver relevant content and enhance lead generation.

According to Aite, financial institutions will increasingly rely on predictive modeling and other analytical techniques for making marketing decisions. Kernel delivers a true one-to-one marketing experience in real time by exposing a modern Web API for integration across any channel. Kernel adjusts advertisement delivery between mobile, online banking, and other experiences based on users’ interest and interaction with each channel. As a result, banks and credit unions can cultivate stronger leads and actionable opportunities for their products and services.

Banno CEO Wade Arnold explained, “Consumers interact with a multitude of self-service banking channels across an ever-expanding array of devices. Kernel simplifies the collection and analysis of these interactions to expose an individual’s intent and changing interests. Automatic campaign ad delivery allows institutions to set and track their campaigns as well as visually explore their success. Now, banks and credit unions can address a consumer’s needs with purpose and accuracy, delivering the right product message over multiple channels.”

Kernel’s ability to automatically deliver advertising campaigns is based on the best performing promotions; new website visitors will see ads that have gained the highest click-through rates. Additionally, it tracks leads through a real-time dashboard that distinctly shows what users are viewing on an institution’s website, what they click through and which advertisement is displayed at that time. This gives the financial institution actionable insights to further engage consumers.

Grow Cedar Valley