WEDNESDAY, OCT. 21, 2020 | IN THIS ISSUE
• U.S. Bank to close five Corridor branches
• CR council backs $1.4M emergency loan to Kernels
• AMA: Health insurance markets more concentrated
• Uptown Marion receives Main Street Iowa Challenge Grant
• Townsend appointed to veteran's advisory committee
• Corridor events, KCRG-TV9 headlines and First Alert Forecast
|
|
U.S. Bank to close five Corridor branches
|
U.S. Bank plans to close one branch each in Cedar Rapids, Iowa City, Washington, West Branch and Williamsburg after announcing a new round of branch closures.
The holding company for U.S. Bank disclosed plans to close 400 additional branches, or 15% of its branch network, by early 2021, during an Oct. 14 earnings call with analysts. The new round of closings follows plans announced earlier in the year to close 10-15% of all U.S. Bank branches, and are expected to bring total branch closings to about 25% of the bank’s network of 2,800 branches.
“The great majority of these additional closures were branches that were impacted by COVID-19 and they will remain closed,” U.S. Bancorp Chairman, President and CEO Andy Cesare said on the Oct. 14 earnings call. “While physical branches and personal interactions will always be important, we need fewer branches today than we did even a few years ago, and the branches of the future need to be more advice centers and locations where transactions take place.”
Branches at 1117 William St., Iowa City, and 129 16th Ave. SW, Cedar Rapids, which have been temporarily closed, will be permanently closed as of Nov. 1.
Branches set for closing effective Jan. 2, 2021, are at 408 Court St., Williamsburg; 127 Main St., West Branch; and 300 S. Iowa Ave., Washington.
“Although we are closing some branches, we are continuing to open and enhance others, as well as rapidly enhance our digital capabilities,” U.S. Bank spokesman Evan Lapiska said in an email. “We are proud of our history serving customers at these locations, and look forward to continuing to serve the community through our other locations in the area along with our convenient digital and voice offerings.
Mr. Lapiska said affected employees will have the opportunity to apply for other available openings, particularly in areas the mortgage division and customer care centers that have an identified need for additional support with flexibility in work location. Employees will remain in their current role until January unless they elect to move on before that time, he said, and those who elect to leave the bank at the end of their notice period will receive a comprehensive severance package and outplacement services.
|
|
CR council backs $1.4M emergency loan to Kernels |
|
A package of financial support measures to help the Cedar Rapids Kernels stay afloat as the minor league baseball team goes through a 19-month dry spell without revenue due to COVID-19 was approved by the Cedar Rapids City Council on Tuesday.
After hearing no objections at a public hearing, the council agreed to guarantee a $1.4 million loan to the Kernels from Bank Iowa. The five-year loan carries a 4% interest rate, and the Kernels must make monthly payments of at least $27,000 until it is paid off.
The council also agreed to amend the city’s baseball stadium lease agreement with the Cedar Rapids Ball Club to defer stadium lease payments that would have been due from July 1, 2020, through June 30, 2025, until the period from July 1, 2044, until June 30, 2049, to help free cash flow so that the ball club can pay off its BankIowa loan. Lease payments will resume when the loan is paid off.
Cedar Rapids Ball Club CEO Doug Nelson said the city has a good partnership with the city and now needs its help.
“We just can’t overcome the financial challenge of going a year and a half without revenue,” Mr. Nelson said.
Asked by council member Ashley Vanorny what contingency plans the city has if baseball cannot resume in the 2021 season, city Finance Director Casey Drew said the terms were deliberately made for a finite period, and it would have to be brought up again for consideration of extending the lease payments further.
The council unanimously supported the loan guarantee, lease extension and related measures. Mayor Brad Hart said the city is “incredibly lucky to have the Kernels,” especially after the reduction in the number of minor league teams. He said the reduction in teams should help improve business for the Kernels.
|
|
AMA: Health insurance markets more concentrated |
|
Commercial health insurance markets in the United States have become even more concentrated than they were five years ago, according to an annual report released last week by the American Medical Association, the Des Moines Business Record reports. As those markets become increasingly concentrated among a smaller number of insurers, the result is less competition and consumer choice, which can harm patients by keeping premiums high, according to the AMA.
The report, "Competition in Health Insurance: A Comprehensive Study of U.S. Markets," found that between 2014-2019, the share of U.S. markets that were highly concentrated increased from 71% to 74%. Moreover, more than half (52%) of the markets that were highly concentrated in 2014 grew even more concentrated by 2019. The data in the report collected market concentration figures for the HMO, PPO, POS and exchange insurance markets.
"For many of the 70 million Americans who live in highly concentrated health insurance markets, a lack of competition is a problem that keeps getting worse as consumers have more limited health insurance options to choose," Dr. Susan Bailey, the AMA’s president, said in a press release. "The AMA strongly encourages a dialogue among regulators, policymakers, lawmakers, and others about the need for a better, more open and competitive marketplace to benefit patients and the physicians who care for them."
Read the full story here.
|
|
Uptown Marion receives Main Street Iowa Challenge Grant |
|
Uptown Marion – A Main Street Iowa District has been awarded a $75,000 Main Street Iowa Challenge Grant from the Iowa Economic Development Authority (IEDA).
The grant will be used toward the renovation of the Monuments Building, located at 743 10th St. Renovations include a full façade rehabilitation to the font, side and rear of the building as well as an internal build-out for Frydae, a new street food and ice cream shop with a to-go window.
“The Main Street Iowa Challenge grants have been instrumental in revitalizing Iowa’s historic main streets,” said IEDA and Iowa Finance Authority Director Debi Durham. “Reinvesting in our traditional commercial districts is good business. It’s good for our economy and good for our state. These projects will bring new businesses and new residents to our downtown districts.”
The grants are administered through IEDA’s Iowa Downtown Resource Center and Main Street Iowa programs. The funding will be distributed in the form of matching grants to the selected Main Street programs.
Since the first Challenge Grants were awarded in 2002, approximately $11.6 million in state and federal funds have leveraged more than $59 million in private investment. Over the life of the program, 193 projects in 56 Main Street Iowa commercial districts across the state have received funding.
|
|
Townsend appointed to veteran's advisory committee |
|
Beth Townsend, director of Iowa Workforce Development, has been appointed to serve as a member of the Department of Veterans Affairs Advisory Committee on Minority Veterans (ACMV).
“I trust Beth’s judgment and advice on a myriad of issues that impact veterans and minority group members across Iowa, and I have no doubt that she will quickly become a respected voice on the Advisory Committee on Minority Veterans,” said Gov. Kim Reynolds in a statement.
The ACMV advises the Secretary of Veterans Affairs on the effectiveness of the VA in delivering and administering benefits, programs and services to minority veterans. The ACMV also reviews reports and studies pertaining to compensation, health care, rehabilitation, outreach and other benefit programs administered by the Department of Veterans Affairs.
The ACMV focuses its efforts on serving five minority groups, including Asian Americans, African Americans, Hispanic/Latino Americans, Pacific Islander Americans and Native Americans.
Ms. Townsend’s appointment is effective immediately and will continue through June 2022.
IMAGE: Beth Townsend
|
|
Connect with the CBJ
The CBJ’s mission of informing and connecting the Corridor’s business community is more important than ever. Our news operations will continue researching and reporting on the impacts of the COVID-19 pandemic through our multiple distribution channels. Here’s how you can connect with us today and moving forward:
- You can reach our newsroom directly with leads, updates, cancellations, etc. at [email protected].
- Our comprehensive, deep-dive content continues in our weekly CBJ. If you are not a digital subscriber, you can sign up here.
- Our daily news coverage solution is spread throughout the week with our free e-newsletters. If you have not already signed up, you can do so here.
- Updated coronavirus information will also be published on our website, corridorbusiness.com/latest-coronavirus-updates, and through our Facebook, Twitter and LinkedIn channels.
- All of our staff members remain available to assist you. You can find our full contact information at www.corridorbusiness.com/cbj-contact.
Remember: Subscribers can access the digital CBJ anytime and anywhere. Don't remember your password? Please email [email protected] for a password reset.
The CBJ print subscribers can also temporarily have the CBJ mailed to their home. To temporarily switch your address, please send your full temporary mailing address to [email protected]. Please include start and stop dates for the temporary address.
Thank you for your continued support of the Corridor Business Journal.
|
|
Short Term Event Planner
Oct. 22
Thriving Amidst A Pandemic: What Companies Are Doing To Beat The Odds in 2020, by NewBoCo, noon-1 p.m., online. Participants will learn what startups are thriving amidst the pandemic and which markets are growing. Cost: $10. To register, visit bit.ly/351qDfl.
Worth It, by UFG, noon, online. Distracted driving awareness presentation led by Shawn O'Brien which includes startling facts, eye-opening activities and a powerful overview of O’Brien’s own completely preventable and heartbreaking encounter with a distracted driver. To join the virtual Worth It session, email [email protected] with “October 22 presentation” in the subject line for access information.
Oct. 27
Digital Marketing Webinar Series, by Center for Business Growth and Innovation at UNI, 10-11 a.m., online. Comprised of sessions on Oct. 27, Nov. 10 and Nov. 17, this webinar series will focus on building a brand using Facebook, Facebook advertising, blogging and Instagram. Free. To register, visit bit.ly/377DH5A.
Managing Remote Workers, by Healthier Workforce Center of the Midwest and University of Iowa Tippie College of Business, noon-1 p.m., online. This panel discussion will highlight the health and safety concerns of managing employees remotely. Free. To register, visit bit.ly/31aCff3.
Oct. 28
1 Million Cups, by 1MC Cedar Rapids, 8:30 a.m., online. Join for community connections and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit facebook.com/1MCICR.
1 Million Cups, by 1MC Iowa City, 9 a.m., online. Join for community connections and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit facebook.com/1MillionCupsIC.
|
|
These news items are provided by KCRG-TV9
Health care workers from the University of Iowa Hospitals & Clinics called on Iowa’s leaders to “step up” in the fight against COVID-19 by providing personal protective equipment and needed resources. In a joint statement released today in response to record high COVID-19 hospitalizations, the health care workers said leadership is lacking right now. It called on Gov. Kim Reynolds and elected officials to promise they would make Iowa patients with the virus their number-one priority. This also comes after Iowa State Auditor Rob Sand said Gov. Reynolds spent $21 million in federal pandemic relief funds on a new executive branch software system – a move he said was inappropriate use under the law.
The statement from UIHC said healthcare workers need those funds for patients. Read the full story here.
Four months after the Cedar Rapids City Council committed to establishing an independent citizen’s police review board on June 19, the council approved a resolution advancing its creation. The council heard the city staff’s official recommendation for how that board should look at Tuesday’s meeting. City staff recommended what it called a review model. The recommended review model gives the board three key focuses: public engagement, recommending training, policy, and procedure for the Cedar Rapids Police Department and reviewing complaints. “The national movement is regarding systematic racism, and that is a societal issue. Establishing a citizen review board is another proactive step the C.R.P.D. is taking to demonstrate their commitment and ongoing improvement," Jennifer Pratt, community development director, said, at the meeting. Read the full story here.
These news items are provided by KCRG-TV9
|
|
Your KCRG-TV9 First Alert Forecast |
Look for increasing cloud cover and chances for rain again later today and overnight as a warm front passes though the state. Some isolated thunderstorms will be possible as will heavy rainfall at times - some areas could see an inch or more by Thursday morning with rain and storm chances continuing Thursday. Some strong storms are possible. Southerly winds pick up Thursday, gusting to 30 mph and helping most of Eastern Iowa warm well above average into the 70s, cooler to the north. A cold front late Thursday will quickly cool us into the 30s and 40s to end the week and through the weekend. |
|
|
|
|
|
|
