RESOLUTION #09-138
Approving Development Agreement with Tom Bagge, Authorizing Tax Increment Payments and Pledging Certain Tax Increment Revenues to the Payment of the Agreement
WHEREAS, the City of Monticello, Iowa (the “City”), pursuant to and in strict compliance with all laws applicable to the City, and in particular the provisions of Chapter 403 of the Code of Iowa, has adopted an Urban Renewal Plan for the Monticello Urban Renewal Area (the “Urban Renewal Area”); and
WHEREAS, this City Council has adopted an ordinance providing for the division of taxes levied on taxable property in the Urban Renewal Area pursuant to Section 403.19 of the Code of Iowa and establishing the fund referred to in Subsection 2 of Section 403.19 of the Code of Iowa (the “Urban Renewal Tax Revenue Fund”), which fund and the portion of taxes referred to in that subsection may be irrevocably pledged by the City for the payment of the principal and interest on indebtedness incurred under the authority of Section 403.9 of the Code of Iowa to finance or refinance in whole or in part projects in the Urban Renewal Area; and
WHEREAS, an agreement between the City and Tom Bagge has been prepared (the “Agreement”), pursuant to which Tom Bagge has agreed to the acquisition of land and the construction of office and warehousing facilities in the Urban Renewal Area (the “Tom Bagge Project”) and the City has agreed to provide tax increment payments in a total amount not exceeding $377,000; and
WHEREAS, this City Council, pursuant to Section 403.9 of the Code of Iowa, has published notice, has held a public hearing on the Agreement on October 19, 2009, and has otherwise complied with statutory requirements for the approval of the Agreement; and
WHEREAS, Chapter 15A of the Code of Iowa (“Chapter 15A”) declares that economic development is a public purpose for which a City may provide grants, loans, tax incentives, guarantees and other financial assistance to or for the benefit of private persons; and
WHEREAS, Chapter 15A requires that before public funds are used for grants, loans, tax incentives or other financial assistance, a City Council must determine that a public purpose will reasonably be accomplished by the spending or use of those funds; and
WHEREAS, Chapter 15A requires that in determining whether funds should be spent, a City Council must consider any or all of a series of factors;
NOW, THEREFORE, It Is Resolved by the City Council of the City of Monticello, Iowa, as follows:
Section 1. Pursuant to the factors listed in Chapter 15A, the Council hereby finds that:
(a) The Tom Bagge Project will add diversity and generate new opportunities for the Monticello and Iowa economies;
(b) The Tom Bagge Project will generate public gains and benefits, particularly in the creation of new jobs, which are warranted in comparison to the amount of the proposed financial incentives.
Section 2. The City Council further finds that a public purpose will reasonably be accomplished by entering into the Agreement and providing the incremental property tax payments to Tom Bagge.
Section 3. The Agreement is hereby approved and the Mayor and City Clerk are hereby authorized and directed to execute and deliver the Agreement on behalf of the City, in substantially the form and content in which the Agreement has been presented to this City Council, and such officers are also authorized to make such changes, modifications, additions or deletions as they, with the advice of bond counsel, may believe to be necessary, and to take such actions as may be necessary to carry out the provisions of the Agreement.
Section 4. As provided and required by Chapter 403 of the Code of Iowa, the City’s obligations under the Agreement shall be payable solely from a subfund (the “Tom Bagge Subfund”) which is hereby established, into which shall be paid that portion of the income and proceeds of the Urban Renewal Tax Revenue Fund attributable to property taxes derived from the property described as follows:
Lot 7, Welter’s First Addition to the City of Monticello, County of Jones,
State of Iowa.
Section 5. The City hereby pledges to the payment of the Agreement the Tom Bagge Subfund and the taxes referred to in Subsection 2 of Section 403.19 of the Code of Iowa to be paid into such Subfund.
Section 6. After its adoption, a copy of this resolution shall be filed in the office of the County Auditor of Jones County to evidence the continuing pledging of the Tom Bagge Subfund and the portion of taxes to be paid into such Subfund and, pursuant to the direction of Section 403.19 of the Code of Iowa, the Auditor shall allocate the taxes in accordance therewith and in accordance with the tax allocation ordinance referred to in the preamble hereof.
Section 7. All resolutions or parts thereof in conflict herewith are hereby repealed.
Passed and approved this 19th day of October, 2009.