SET DATE FOR HEARING ON EXPANDED URBAN RENEWAL AREA DESIGNATION AND URBAN RENEWAL PLAN AMENDMENT
Monticello, Iowa
September 21, 2015
The Council of the City of Monticello, Iowa, met on September 21, 2015, at 6:00 o’clock, p.m., at the Mary Lovell LeVan, Monticello Renaissance Center, Community Media Center, 220 East First Street, in the City, for the purpose of setting a date for a public hearing on the designation of an expanded urban renewal area and the addition of a specific project to the urban renewal plan. The Mayor Dena Himes presided and the roll being called, the following members of the Council were present and absent:
Present: Dave Goedken, Bill Meyer, Rob Paulson, Johnny Russ, Chris Lux, and Tom Yeoman
Absent: None.
The Mayor announced that an amendment to the Monticello Urban Renewal Plan had been prepared and that it was now necessary to set a date for a public hearing on the proposed amended area. Accordingly, Council Member Meyer moved the adoption of the following resolution entitled “Resolution Setting a Public Hearing on the proposed Urban Renewal Plan Amendment,” and the motion was seconded by Council Member Goedken. Following due consideration, the Mayor put the question on the motion and the roll being called, the following named Council Members voted:
Ayes: Meyer, Goedken, Paulson, Russ and Lux
Nays: None
Abstained: Yeoman
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 15-81
Setting a Public Hearing on the proposed Urban Renewal Plan Amendment, same to provide tax incentives by way of Grants and Tax Rebates to developers to promote the construction of a new Boulders Inn and Suites (hotel) within the City limits of the City of Monticello
WHEREAS, this Council by resolution previously created the Monticello Urban Renewal Plan (the “Urban Renewal Plan”); and
WHEREAS, a proposal has been made which shows the an amendment to the Urban Renewal Plan has been prepared to specify a project that the City Council intends to utilize tax increment financing dollars to finance as set out in Exhibit A; and
WHEREAS, this Council is desirous of obtaining as much information as possible from the residents of the City before making this decision and it is now necessary that a date be set for a public hearing on the proposed amendment plan.;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Monticello, Iowa, as follows:
Section 1. This Council will meet at the Mary Lovell LeVan, Monticello Renaissance Center, Community Media Center, 220 East First Street, Monticello, Iowa, on the 5th day of October, 2015, at 6:00 o’clock p.m., at which time and place it will hold a public hearing on the proposed Urban Renewal Plan Amendment described in the preamble hereof.
Section 2. The City Clerk shall publish notice of said hearing, the same being in the form attached hereto, which publication shall be made in a legal newspaper of general circulation in Monticello, which publication shall be not less than four (4) nor more than twenty (20) days before the date set for hearing.
Section 3. Pursuant to Section 403.5 of the Code of Iowa, the City Clerk and the City Administrator are hereby designated as the City’s representatives in connection with the consultation process which is required under that section of the urban renewal law.
Section 4. The proposed urban renewal plan amendment is hereby submitted to the City’s Planning and Zoning Commission for review and recommendations, as required by Section 403.5, Code of Iowa.
Passed and approved September 21, 2015.
________________________
Dena Himes, Mayor
Attest:
_______________________________
Sally Hinrichsen, City Clerk
NOTICE OF PUBLIC HEARING ON PROPOSED URBAN RENEWAL PLAN AMENDMENT
Notice Is Hereby Given: That at 6:00 o’clock p.m., at the Monticello City Council Chambers, located in the Media Center of the Mary Lovell LeVan Renaissance Center at 202 E. 1st Street, Monticello, Iowa, on the 5th day of October, 2015, the City Council of the City of Monticello, Iowa, will hold a public hearing on the question of amending the urban renewal plan for the Monticello Urban Renewal Area to facilitate the undertaking of an economic development project, whereby the City would utilize tax increment financing to provide tax incentives by way of Grants and Tax Rebates to developers to promote the construction of a new Boulders Inn and Suites (hotel) within the City limits of the City of Monticello, same to be constructed on an approximate two (2) acre parcel adjacent to Kirkwood Community College in Welter’s First Addition to Monticello. A copy of the amendment is on file for public inspection in the office of the City Clerk.
At said hearing any interested person may file written objections or comments and may be heard orally with respect to the subject matters of the hearing.
Sally Hinrichsen
City Clerk
• • • • •
On motion and vote the meeting adjourned.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, City Clerk
STATE OF IOWA )
CITY OF MONTICELLO )§
COUNTY OF JONES )
I, the undersigned, City Clerk of the aforementioned City, does hereby certify that pursuant to the Resolution of its Council fixing a date of public hearing on the question of the proposed Urban Renewal Plan Amendment for the City, the notice, of which the printed slip attached to the publisher’s affidavit hereto attached is a true and complete copy, was published on the date and in the newspaper specified in such affidavit, which newspaper has a general circulation in the City, and copies were sent to the county, school district and community college.
WITNESS my hand and the seal of the aforementioned City hereto affixed this ____ day of ______________________, 2015.
City Clerk
(Seal)
(Attach here publisher’s affidavit of publication of notice.)
(PLEASE NOTE: This certificate must not be dated until the publication has been made and you have reviewed it to be sure that the notice was published on the date indicated in the attached affidavit.)
STATE OF IOWA )
CITY OF MONTICELLO ) §
COUNTY OF JONES )
I, the undersigned, City Clerk of the aforementioned City, do hereby certify that as such I have in my possession or have access to the complete corporate records of the City and of its officers; and that I have carefully compared the transcript hereto attached with the aforesaid records and that the attached is a true, correct and complete copy of the corporate records relating to the action taken by the Council preliminary to and in connection with setting a date for public hearing on the question of the proposed Urban Renewal Plan Amendment for the City.
WITNESS my hand and the seal of the aforementioned City hereto affixed this ___ day of ______________________, 2015.
City Clerk
(Seal)
Exhibit A
CITY OF MONTICELLO
2015 Amendment Number 1
to the
MONTICELLO URBAN RENEWAL PLAN
Approved by Resolution No. 15-__
October 5, 2015
The Urban Renewal Plan (the “Plan”), for the Monticello Urban Renewal Area (the “Area”), is being amended for the purpose of identifying a new urban renewal project to be undertaken therein.
1) Identification of Projects.
By virtue of this amendment, the list of authorized urban renewal projects in the Plan is hereby amended to include the following project description:
Name of Project: Boulders Inn & Suites a/k/a Boulders Inn Monticello, L.L.C. Economic Development Project.
Name of Urban Renewal Area: Monticello Urban Renewal Area
Year of Establishment of Urban Renewal Area: 1992 as amended in 2001
Date of Council Approval of Project: October 05, 2015
Location and Description of Economic Development Project: The project is proposed to include the construction of a thirty-two (32) room hotel on approximately two (2) acres on property, identified as Parcel 2015-61, same being a part of Welter’s First Addition to Monticello, Iowa. Ownership of the project lies in the shareholders of the L.L.C., most of which are Monticello or Jones County investors.
Description of Use of TIF: The City has approved a Developer’s Agreement providing specific economic incentives to the Developers in return for their acquisition and development of the subject property consistent with the provisions of said developer’s agreement.
Tax Rebates: Tax rebates are tied to the taxable valuation of finished improvements and are, therefore, hard to estimate at this time. However, the rebates are based upon the following ten-year schedule: 100%, 90%, 85%, 80%, 75%, 70%, 65%, 60%, 60% and 60%. Under this provision, the new taxes created by the development reduced by the debt service levies of all taxing jurisdictions, the school physical plant and equipment levy, and the other protected levies, if any, will be rebated to the developer consistent with the above schedule and percentage. The rebated sums will be paid from tax increment received by the City and deposited into the City TIF fund. The following estimated total rebates assume a taxable value of $1,614,135, with a 10% tax rollback, and a consistent millage rate of $32.35; not reduced by the commercial property tax credit that currently exists, protected portions of the tax levy, value of the property prior to the construction of the improvement, or any increases in valuation that may occur over the ten year rebate period. Based upon those assumptions the tax rebates would total approximately: $350,000.00. (It is estimated, based upon the same assumptions noted above, that total tax receipts over said ten (10)year period will total $470,000)
TIF Grant: The City also proposes to provide a TIF grant in the amount of $20,000 per acre payable in two installments, the first to be paid at the issuance of the occupancy permit and the second payment to be made at the one year anniversary of occupancy. The site has been surveyed to include 1.84 acres, therefore, the total rebate would be $36,800 to be paid as set forth above in two equal installments of $18,400.
TIF Grant: The City also proposes to provide a TIF grant that will be calculated based upon the Hotel/Motel tax receipts received by the City of Monticello, resulting from occupancy at the Monticello Boulders Inn & Suites. Hotel/Motel tax receipts will be calculated on an annual basis, with the first year’s receipts to include the month during which the occupancy permit is received and the first full twelve months following the issuance of the occupancy permit. Thereafter, the annual receipts will be calculated on a twelve month schedule. The City proposes to rebate hotel/motel tax by way of a TIF grant over ten (10) years as follows: 75%, 75%, 75%, 70%, 70%, 70%, 65%, 65%, 65% and 60%. Calculation of estimated Hotel/Motel Tax receipts: If 32 rooms, at 50% occupancy, at $90.00 per room, over 365 days per year, with application of a 5% hotel/motel tax, annual Hotel/Motel tax receipts come in at $26,280. Based upon the above and foregoing calculations, the rebate associated with the estimated Hotel/Motel tax receipts is $197,100. During this same time, if estimates are accurate, total hotel/motel tax receipts will be $262,800.
The maximum economic development grant is estimated to not exceed $583,900.
2) Required Financial Information. The following information is provided in accordance with the requirements of Section 403.17 of the Code of Iowa:
Constitutional debt limit of the City: $10,462,523
Outstanding general obligation debt of the City¹: $5,192,721
Proposed debt to be incurred in connection with this
Amendment²: $583,900
¹ After June 1, 2015 principal payments the General Obligation Debt of the City equals $4,800,000. Rebate agreement payments due in FY ’15 equal $392,721. Those two obligations together total $5,192,721.
² The debt incurred herein shall be subject to annual appropriation by the City Council.