A slide presentation prepared by Webster City Economic Development in Webster City, Iowa to highlight local, regional and state economic development incentives.

1. Iowa Incentive
Programs
By David Toyer, Economic Developer
Webster City Economic Development
August 2011

3. Who We Are
Webster City Economic Development exists to support expanding and
relocating businesses in Webster City, Iowa.
It’s our goal to help you identify and secure financial incentives for your
project. This document is meant to provide an overview of incentive
programs offered in Iowa at the local, regional and state level.
Read More About Us How To Contact Us
Take A Tour

4. Disclaimers
• All incentives are subject to approval by the program administrator
(city council, board, state agency, administrator)
• Incentive programs and eligibility requirements may change after the
date of publication due to legislative changes or availability of funds
• Please contact your local economic developer to discuss your
project and obtain a more in-depth review of available incentives

5. Table of Contents
• Grow Iowa Values Fund • Rural Economic Development Grant
• Entrepreneurial Component • Community Facilities Loan
• Value-Added Agriculture Component • Hamilton County Revolving Loan Fund
• Enterprise Zone • Rural Business Enterprise Grant
• Economic Development Set Aside • MIDAS Revolving Loan Fund
• Public Facilities Set Aside • Midwest Area Disaster Bonds
• Physical Infrastructure Assistance • Webster City Area Development
Program Revolving Loan Fund
• High Quality Jobs Program • USDA Business & Industry Guaranteed
• Cornbelt Power Fund Loans
• Intermediary Relending Program • Rail Revolving Loan and Grant Program
• Rural Business Opportunity Grant • Railroad Rehabilitation and Improvement
• Rural Economic Development Loan Financing

6. Table of Contents
• Iowa Microloan Program • Urban Renewal Program
• 260E Iowa Industrial New Jobs • Industrial Property Tax Exemption
Training • Municipal Support of Projects
• 260F Iowa Jobs Training • Land Grants
• New Jobs Tax Credit • Local Financial Assistance
• Urban Revitalization Tax Exemption • Municipal Utility Assistance Program

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Grow Iowa Values Fund
• Available As • Eligibility
– Loans or forgivable loans – Must be located in Iowa
– Must create jobs that meet the
130% county wage threshold
• Can Be Applied Towards
– Must have a company capital
– Building construction or
investment into the projects
remodeling
– Must have a demonstrated need
– Land or building acquisition
– Must contribute to employee
– Site preparation
medical coverage
– Machinery and equipment
– Must not start project prior to
purchases
approval of the application for
– Furniture and fixtures funding

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Grow Iowa Values Fund
• Additional Requirements • Application Process
– Must include supplemental – Pre-application required
application for the Entrepreneurial – Completed business assistance
Component, Value-Added Ag form
Component, Enterprise Zone or – If submitted by 4th Monday it will
Economic Development Set Aside be reviewed by the 3rd Thursday
of the next month
• Must Demonstrate
– Financing Gap • Match Requirements
– Rate of Return Gap, or – Local match of 20% required
– Location Disadvantage

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Entrepreneurial Component
• Available as • Eligibility
– Loans, royalty agreement or – In business for 3 or less years
equity for leveraging conventional – Located or planning to locate in
financing, establishing working Iowa
capital or purchasing equipment, – Requires letter of endorsement
machinery or software from an IDED approved business
• Ineligible Projects accelerator or recognized
– Retail Sales entrepreneurial development
organization
– Personal Services
– Must have a thorough business
– Consulting
plan that includes growth strategy,
– Franchises management team, management
– Health Care Services plan, marketing plan, financial
– Distributors (products/services) plan and other standard elements

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Value Added Agriculture Component
• Available as • Evaluation Criteria
– Loans or forgivable loans – Feasibility/viability
– Degree to which Ag commodities
from Iowa will be used
• Purpose
– Location in a rural region
– Financially support projects that
speed the rate of Ag based • Eligibility
innovation, encourage the – Must be located in Iowa
organization of agribusiness – Must have a business plan
entrepreneurs and increase
utilization of Ag commodities – Should have a 3rd party feasibility
study
• Innovative Process & Products
• New Renewable Fuels – Funds can’t be used for farming
• Alternative Energy Production – Must meet wage thresholds
• Organic Products/Emerging Markets
• Product Development

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Enterprise Zone
• Eligibility • Limitations
– Must be located in a designated – Can’t be a retail business whose
Enterprise Zone entry is limited by membership or
– Must make a minimum qualifying coverage card
investment (building, land, – Business can’t close in one part of
machinery, equipment, the state and relocate the same
computers) of $500,000 over 3 business to an Enterprise Zone.
years – Application must be approved by
– Must create or retain 10 full time local Enterprise Zone Commission
jobs over 3 years and maintain for and IDED prior to initiation of the
2 more years project
– Must provide medical and dental
benefits or a monetarily equivalent
package
– Must meet 90% county avg. wage

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Enterprise Zone Benefits
• Property tax exemption of up to 100% for up to 10
years
• Additional funding for new employee training beyond
the new jobs training program
• Refund of state sales, service or use taxes paid to
contractors or sub contractors during construction
• For distribution center projects, a refund of sales,
service and use taxes paid on shelving, racks and
conveyor equipment
• Investment Tax Credit of up to 10% of the qualifying
investment amortized over 5 years. Credit is earned
when the qualifying asset is placed in service and can
be carried forward up to an additional 7 years or until
depleted

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Economic Development Set Aside
• Purpose • Eligibility
– To create jobs for low and – Must be located in Iowa and meet
moderate income individuals county wage thresholds
– Used to leverage other financing – Business must make a capital
investment and demonstrate a need
• Available As
– Advanced manufacturing,
– Loans
biosciences and IT systems targeted
– Forgivable Loans
• Criteria
• Can Be Applied Towards
– Quality of jobs and impact on the
– Land or Building Acquisition community and in-state competitors
– Construction or Reconstruction
• Limitations
– Equipment Purchases
– Special consideration to start ups
– Operating and Maintenance and modernization
Expenses
– Communities less than 50,000
– Site Development population targeted
– Working Capital – $1 million of traditional assistance

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Public Facilities Set Aside
• Type of Assistance • Match Requirements
– Grants – Local match of at least 50%;
higher % of match increases
• Limitations
application score
– Cities less than 50,000 population
– Must be tied to businesses
• Application Process
creating jobs – Funding decisions can be made in
– 51% of persons benefitting must 60 days. If awarded,
be low to moderate income environmental review must be
completed within 30 days
• Can Be Applied Towards:
• Other Information
– Sanitary sewer improvements
– Priority given to projects that
– Water improvements create manufacturing jobs, add
– Street improvements value to Iowa resources and/or
– Storm sewer improvements increase out of state exports

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Physical Infrastructure
Assistance Program (PIAP)
• Available As • Eligibility
– Loans – Iowa cities
– Forgivable Loans – New or Existing Business
– Cost Indemnification Agreements
• Other Requirements
• Can Be Applied Towards
– Must meet applicable wage
– Capital intensive infrastructure thresholds as set by the state
projects that create high quality,
high wage jobs. This includes – Must demonstrate that the project
remediation and redevelopment to will have a statewide impact
create potential opportunities.

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High Quality Jobs Program
• Available As • Type of Incentives
– Tax Credits or Exemptions – Local property tax exemption up
to 100% for up to 20 years
• Can Be Applied Towards
– Refund of state sales, service or
– Cost of locating, expanding or
use taxes paid to contractors and
modernizing an Iowa facility
subs during construction
• Eligibility – Refund of state sales, service and
– Must meet 130% of county use taxes on shelving, racks and
average wage threshold conveyor equipment
– Not applicable to retail or service – Investment tax credit based on %
businesses of qualifying investment over 5
year period
• Evaluation Criteria
– Doubling of the State’s refundable
– Quality of the jobs
research activities credit if
– Level of assistance requested applicable

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Cornbelt Power Fund
• Available As • Evaluation Criteria
– Technical Assistance – Jobs created, diversification of the
– Low Interest Loans local economy, skill development
of the workforce, public
• Can Be Applied Towards infrastructure upgrades
– Financial Assistance
• Acquisition, construction or
• Other Limitations
expansion costs, equipment and – Minimum $50,000, Max $150,000
machinery purchases, start-up – Can not exceed 49% of project
operating costs, and working capital
– Loan terms of 3-10 years
– Technical Assistance
– Interest rates set relative to prime
• Site Selection, Financial Packaging,
Marketing Assistance, Business – Ag, Community Cable Systems
Support Services and Financial Services Ineligible
• Eligibility
– New and expanding business,
local governments, non-profits

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Intermediary Relending Program (IRP)
• Available As • Evaluation Criteria
– Loans for revolving loan – Other funds and programs available
programs at 1% interest – Availability of IRP funds
• Can Be Applied Towards – Median household income served
– Revolving loan fund programs – Local unemployment rate
operated by non-profits that provide – Equity and experience
loans for business facilities and – Community Representation
development in rural areas
• Limitations
• Eligibility – Must be authorized to carry loan, give
– Private non-profit corporations, security, and repay
public agencies, state or local – Proven track record of success
governments, Indian groups and
– Staff expertise and sufficient capital
certain cooperatives
– No delinquent debt to Federal Govt
– 51% of ownership must be US
citizens – $2 million with 25% local match

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Rural Business Opportunity Grant
• Available As • Evaluation Criteria
– Grants – Sustainability
• Can Be Applied Towards – Improvements to quality of
economic activity and commitment
– Money for technical assistance for
of other sources of funding
business and economic
development in rural areas – Natural disaster designation
– Poverty levels, long term population
• Application Deadlines decline, long term job deterioration
– Typically in March or April – A new best practice
• Eligibility • Limitations
– Public bodies – Must be reasonable, be able to be
– Cooperatives measured for success, consistent
– Private, non-profit corporations with local plans and obtainable
within 2 years.
– $50,000 maximum

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Rural Economic Development Loans
• Available As • Evaluation Criteria
– Zero Interest Loans – Type of project and number of jobs to
be created within 3 years
• Can Be Applied Towards
– Supplemental funds
– Start up venture costs
– Per capita personal income
– Business expansions
– Rural location and population decline
– Business incubator
– Loss of major employer, long term
– Technical assistance
unemployment
– Feasibility studies
– Located in disaster area
– Advanced telecom
– Consistency with USDA plan
– Community facilities
• Limitations
• Eligibility
– Nationally competitive process
– Rural Electric/Telephone Borrowers
– Up to $740,000 with 10 year term
– Utility is guarantor
– Monthly payments

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Rural Economic Development Grants
• Available As • Limitations
– Grant – Grant to utility must be lent out to
a non-profit public project with
• Can Be Applied Towards
focus on health or education
– Technical assistance
– $300,000 limit
– Feasibility studies
– 20% local match required
– Advanced telecom
– Grant can be used to fund up to
– Community facilities 80% of a project, but target range
• Eligibility is 5% to 35%
– Rural Electric/Telephone • Terms of Loan
Borrowers – 0% interest
– 10 year term, 2 years deferred

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Community Facilities Loan
• Available As • Limitations
– Loans – Repayment period limited to the
– Loan Guarantees useful life of the facility up to a
max of 40 years
• Can Be Applied Towards
– Interest rates set based on
– Public entities, non-profit and median household income
tribal governments for essential
– Loan guarantees are for up to
community facilities (health care,
90% with eligible lenders
child care, community buildings,
fire stations, equipment, etc..) – Security required
– Must apply with USDA Rural
• Eligibility Development Office
– Population less than 20,000
– Public use
– Financial soundness

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Hamilton County Revolving Loan Fund
• Available As • Evaluation Criteria
– Priority to job creation and
– Low interest loans
– Addition to tax base
• Can Be Applied Towards – Preference to creating the most jobs
– Construction, purchase or with the least amount of assistance
improvements to land and
– Conventional financing must have
buildings
been declined
– Equipment
– Working Capital
• Limitations
– Can not apply to costs incurred
• Eligibility before application
– Non-agricultural, private, for-profit – Refinancing of debt excluded
businesses located or locating in
– Maximum of 30% of project cost
Hamilton County
– Minimum loan of $5,000
– Development Organizations
– 5% interest with 5 year term
– Collateral Required

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Rural Business Enterprise Grant
• Available As • Evaluation Criteria
– Grants – Must support development of
small and emerging business
• Can Be Applied To
enterprises in a rural area of less
– Acquisition, development, than 50,000 population
easements, rights-of-way
– Must be able to show specific
– Construction, conversion, benefit to small business
enlargement, repairs and
– Population, economic conditions,
modernization of buildings
unemployment, applicant’s
– Loans for operating costs experience, commitment of non-
– Technical assistance federal funding sources
• Eligibility – Evidence of a need
– Public bodies – Included in a community plan
– Rural Areas – Size of grant

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MIDAS Revolving Loan Fund
• Available As • Evaluation Criteria
– Gap financing – Need and impact of the project
• Can Be Applied Towards – Ability of the applicant to repay
– Fixed asset financing for land, – Number of jobs per $’s requested
buildings, equipment and – % of other funds in the project
inventory – Quality and completeness of
• Eligibility application materials
– Local business • Limitations
– Must have a primary loan – Amount from $5,000 to $70,000
– Industrial projects preferred – Can not exceed 15% of the project
– Owner must have at least 10%
equity in the project
– Up to 10 year term with fixed rates
not less than 4%, but below prime

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Midwest Area Disaster Bonds
• Available As • Limitations
– Federal Tax Exempt Revenue – Traditional bonding limitations
Bonds – Must be a bankable company/project
• Can Be Applied Towards – Bonds must be issued by January 1,
– Creation or expansion of any 2013
business in Iowa for manufacturing, – $200 million maximum
retail or shopping centers, auto • Liability
dealerships, restaurants, office
buildings, warehouses, storage – Company (Govt entity is only a conduit)
facilities, medical office buildings, • Process
commercial development, and – Find Issuer (Govt Entity)
agricultural facilities and
– Application
improvements
– Inducement Resolution
• Eligibility – Go out for sale of bonds
– Iowa business being created or – Must close bonds in 150 days or less
expanded

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Webster City Area Development
Revolving Loan Fund
• Available As • Limitations
– Low interest loans – Loans average $25,000 but could
be for more depending on the
• Can Be Applied Towards
project and jobs to be created
– Gap financing or equity
investment
– Fixed assets (machinery,
equipment, land, buildings)
• Eligibility
– Must be located in Webster City

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USDA Business &
Industry Guaranteed Loans
• Available As • Evaluation Criteria
– Loan guarantee – Borrower eligibility, repayment
assurance, sufficient collateral &
• Can Be Applied Towards
equity
– Loans by eligible lenders to businesses
– Eligible loan’s purpose
benefitting rural areas less than 50,000
population • Limitations
– Must finance: business or industrial – $25 million maximum
acquisitions, construction, repair, – Pre-approval review required
modernization, development costs, – Fixed loan to value limitations based
equipment, supplies, start up costs, on appraised value of asset
working capital, and etc.
– 10% equity requirement for existing
• Eligibility companies, 20% for new companies
– A legal entity, individual, public or – Personal and corporate guarantees
private organization, or federally required
recognized tribe – Appraisals required

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Rail Revolving Loan
& Grant Program
• Available As • Evaluation Criteria
– Loans or grants – Announced when notice of
funding availability and application
• Can Be Applied Towards
is made by the State
– Building spurs, building or
rebuilding sidings, purchasing or • Limitations
rehabilitating existing rail, other – Limited funding, not funded every
rail development year
• Eligibility – Required local matches of 50% for
grants, 20% for loans
– Targeted job creation projects
– Loans are for 10 years at 0%
– Jobs must be created or retained
interest
within 2 years of the project
– Must meet 100% of county
average wage

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Rail Rehabilitation
and Improvement Financing
• Available As • Evaluation Criteria
– Loans – Must submit an application
• Can Be Applied Towards – NEPA review
– Acquire, improve or rehabilitate – Contact administrator for more
intermodal rail equipment of information
facilities including tracks, track • Limitations
components, bridges, yards, – Applicant with need to provide
buildings and shops loan fees, including any premium
– Refinancing existing debt for and investigative fees
purposes listed above – Direct loans can be for up to
– Developing or establishing new 100% of cost.
intermodal rail facilities – Terms up to 35 years
• Eligibility – Interest based on what it costs the
– State and local government government to borrow money

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Iowa Micro Loan Program
• Available As
– Micro Loan
• Evaluation Criteria
– Contact Craig Downs, Loan
– Technical Assistance
Administrator at 515-212-0182
• Can Be Applied Towards
• Limitations
– Financing of a start up, expansion,
– Total loan must be for less than
or refinancing of micro business in
$35,000
Iowa
– Approvals in ten working days
• Eligibility – Interest rates higher than
– Must be Iowa resident conventional financing, but less
– Must be an Iowa based business than credit cards
– 18 years or older – Grants for technical assistance
– Denied by financial institution are also available of up to $500
– No more than 5 full time per year per client
employees

32. 260E Iowa Industrial
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New Jobs Training
• Available As • Eligibility (Employee)
– Diversion of Iowa withholding tax to – Must be a new position
compensate the community college – Must pay withholding tax
for the training program – Must occupy a position that did not
• Can Be Applied Towards exist 6 months prior to engagement
– Training for new employees • Evaluation Criteria
• Eligibility (Business) – Contact Iowa Central Community
– Must be in or locating to Iowa College
– Must be engaged in interstate • Limitations
commerce (manufacturing, – Depending on wages paid to the
processing, assembling, employees, the company would divert
warehousing, wholesaling or either 1.5% of 3% of their Iowa
conducting research) withholding for each qualifying position
– Service providing businesses must – Cannot have closed one Iowa location
have non-Iowa customers to reopen in another

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260F Iowa Jobs
Training Program
• Available As • Eligibility (Business cont.)
– Reduced or no cost job training – Business must not have reduced
its employment base by more than
• Can Be Applied Towards
20% in the 36 month period prior
– Job training for existing to application
employees
• Eligibility (Employee)
• Eligibility (Business)
– Must be currently employed by the
– Must be located in Iowa and company
engaged in interstate commerce
– Must pay Iowa withholding tax
for manufacturing, processing,
assembling, warehousing, • Additional Information
wholesaling or conducting – Contact Iowa Central Community
research and development College
– Service business must have non-
Iowa customers

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New Jobs Tax Credit
• Available As • Evaluation Criteria
– Per employee tax credit – Contact Iowa Central Community
• Can Be Applied Towards College
– Iowa corporate income tax • Limitations
• Eligibility – One time credit
– Companies that have entered into – Up to $1422 per employee (FY
a New Jobs Training Agreement 2009)
(260E) and expanded their – Unused credits can be carried
employment base by more than forward for up to ten years
10% – Credit depends on wages a
company pays in the year they
first claim the credit

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Urban Revitalization Tax Exemption
• Available As • Limitations
– Property tax exemption in – Owner must separately apply for
accordance with Iowa Code the exemption after the project is
Section 404 completed
• Can Be Applied Towards – Application must be before
February 1 of assessment year in
– New or expanded facilities in
which the exemption will be first
designated “urban revitalization
claimed
areas”
– Full Exemption is 100% for 3
• Process Required years
– Urban revitalization plan must be – Partial Exemption is a sliding
adopted separate from the project scale over 10 years
– Project must be approved as
conforming to plan

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Urban Renewal Program
• Available As • Limitations
– Tax increment financing – Tax increment financing
agreement required
• Can Be Applied Towards
– Council approval needed
– Acquisition and disposition of real
property
– Construction or reconstruction of
public improvements
– Demolition and removal of
buildings
• Eligibility
– Must be in a designated urban
renewal area

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Industrial Property Tax Exemption
• Available As • Exemption Schedule
– Partial property tax exemption for – Year 1: 75%
actual value added to industrial – Year 2: 60%
real estate – Year 3: 45%
• Can Be Applied Towards – Year 4: 30%
– New construction of industrial real – Year 5: 15%
estate, research-service facilities, – Council may adopt a different
warehouses, distribution centers, schedule, but cannot give more
and machinery or equipment (total) than permitted above
assessed as real estate
• Limitations
• Eligibility
– Does not include reconstruction or
– See Iowa Code Section 427B replacement
– Requires public hearing
– Requires City Council approval

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Municipal Support of Projects
• Available As • Eligibility
– To “acquire by construction, – Manufacturing, processing or assembling
purchase, gift or lease and to – Storing, warehousing or distribution
improve and equip one or more – National, regional or division
projects; buy, sell or lease headquarters of a multi-state business
property; enter into loan
agreements; or issue bonds to – Beginning business person with total
finance or retire debt of certain assets of less than $100,000
projects” • Other Information
• Can Be Applied Towards – Equipment included by this section
– Interest in land, building or applies to machinery, HVAC, fixtures,
improvements whether existing utilities and building service equipment
or not • Limitations
– Public hearing must be held before any
bonds can be issued

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Land Grants
• Available As • Evaluation Criteria
– Direct or indirect financial – Review by Economic
assistance Development
• Can Be Applied Towards – Review by City Council
– Property acquisition or • Other Information
assemblage – City can gift, lease or sell property
• Eligibility – City can acquire property on
– Project must create jobs in behalf of a project
Webster City – City can provide financial
– Preference to projects with the assistance to buy down
highest and best use of property, acquisition costs
especial with municipal owned
properties

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Local Financial Assistance
• Available As • Evaluation Criteria
– Grants – Number of jobs to be created
– Loans or forgivable loans – Financial need of the company
• Can Be Applied Towards – Size of the project
– Very flexible, but generally: • Limitations
• Land or building acquisition – Must create jobs within 3 years
• Tenant improvement permits and retain them for another 2
• Equity to leverage other financial years
assistance – Loans require collateral and a 1st
• Job training or shared 1st position is desired
• Eligibility – Company must submit information
– Must create new jobs or retain on its finances, business plan, and
existing jobs in Webster City other items requested for review
– New or existing businesses by City

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Municipal Utility Assistance Program
• Available As • Technical Support
– Technical support – Commercial or industrial rate
• Thermography customer
• Load and demand management – By request
analysis
• Efficiency reviews
• Efficiency Rebates
– Energy efficiency rebates – See program requirements
– Rate credits – Applies to light
• Eligibility • Rate Credits
– Must be a customer of Webster – See program requirements
City’s municipal utility – Applies to new, large and no-
– Must meet program eligibility, agricultural loads only
including any requirements
established by the Cooperative

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Contact Us
Email info@buildwebstercity.com
Phone (515) 832-9151
Address PO Box 217 – 400 Second Street
Webster City, Iowa 50595
Website www.buildwebstercity.com
Blog blog.buildwestercity.com
Twitter @WebsterCityIA
Facebook BuildWebsterCity