The City of Monticello, Iowa
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF MONTICELLO, IOWA
RESOLUTION #15-53
Resolution to approve statement of intention in regard to
Boulders Hotel Development Agreement
WHEREAS, The City Council of Monticello wishes to promote the development and construction of a Boulders Inn & Suites in the Welter Commercial Park, and in support of that desire wishes to set forth the current intention of the Council with regard to a potential Development Agreement, and
WHEREAS, The City of Monticello has entered into many developers agreements over the years, promoting the development of new business, new jobs, and needed and/or desired businesses within the Monticello City limits, and
WHEREAS, The City Council recognized the support for a hotel in the community and finds that the use of Economic Development tools and incentives to promote the project in hopes of making it a reality would be a wise decision and beneficial to the long term success and future growth of the City of Monticello, and
WHEREAS, The City Council finds that the City should offer similar incentives as offered to other enterprises, in addition to a partial rebate of hotel/motel tax receipts, as follows:
1. Rebate Payments. In recognition of the Developers obligations set out above, the City agrees to make 20 semi-annual economic development tax increment payments (the “Rebate Payments”) to the Developer, pursuant to Chapters 15A and 403 of the Code of Iowa and as described below.
Year 1: 100% (Taxes Paid on or about 9/16 and 3/17)
Year 2: 90% (Taxes Paid on or about 9/17 and 3/18)
Year 3: 85% (Taxes Paid on or about 9/18 and 3/19)
Year 4: 80% (Taxes Paid on or about 9/19 and 3/20)
Year 5: 75% (Taxes Paid on or about 9/20 and 3/21)
Year 6: 70% (Taxes Paid on or about 9/21 and 3/22)
Year 7: 65% (Taxes Paid on or about 9/22 and 3/23)
Year 8: 60% (Taxes Paid on or about 9/23 and 3/24)
Year 9: 60% (Taxes Paid on or about 9/24 and 3/25)
Year 10: 60% (Taxes Paid on or about 9/25 and 3/26)
2. Grant Payments. The City further agrees to make a series of economic development grants (the “Grant Payments) in the amount of $20,000 per acre, with the first payment made upon occupancy and subsequent payments on one year intervals thereafter. (It is anticipated that the project will require just under 2 acres.)
3. Hotel/Motel Tax Reimbursement. The City further agrees to rebate a portion of the Hotel/Motel tax receipts as follows:
Year 1: 75%
Year 2: 75%
Year 3: 75%
Year 4: 70%
Year 5: 70%
Year 6: 70%
Year 7: 65%
Year 8: 65%
Year 9: 60%
Year 10: 60%
NOW, THEREFORE, BE IT RESOLVED that the City Council of Monticello, Iowa does hereby approve the above and foregoing resolution setting out their present intent to proceed with the drafting and approval of a Developer’s Agreement that would include the terms set out herein should the Boulders Inn & Suites project move forward, recognizing that this statement of intention and the eventual approval of an agreement including the above terms and provisions would be a critical, and potential deciding factor, in the decision making process of potential local investors.
IN TESTIMONY WHEREOF, I have hereunto subscribed my name and caused the Great Seal of the City of Monticello, Iowa to be affixed hereto. Done this 1st day of June, 2015.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, Monticello City Clerk