HEARING ON 2015 AMENDMENT NUMBER 1 TO THE MONTICELLO URBAN RENEWAL PLAN
Monticello, Iowa
October 5, 2015
The City Council of the City of Monticello, Iowa, met on October 5, 2015, at 6:00 o’clock, p.m., during a regularly scheduled City Council meeting in the Council Chambers for the purpose of conducting a public hearing on a proposed urban renewal plan amendment. The Mayor presided and the roll being called the following members of the Council were present and absent:
Present: Dave Goedken, Bill Meyer, Rob Paulson, Chris Lux, Tom Yeoman and Johnny Russ.
Absent: None.
The Council investigated and found that notice of the intention of the City Council to conduct a public hearing on the urban renewal plan amendment had been published according to law and as directed by the Council and that this is the time and place at which the Council shall receive oral or written objections from any resident or property owner of the City. All written objections, statements, and evidence heretofore filed were reported to the Council, and all oral objections, statements, and all other exhibits presented were considered.
The following named persons presented oral objections, statements, or evidence as summarized below; filed written objections or statements, copies of which are attached hereto; or presented other exhibits, copies of which are attached hereto:
(Here list all persons presenting written or oral statements or evidence and summarize each presentation.) None.
There being no further objections, comments, or evidence offered, the Mayor announced the hearing closed.
Council Member Lux moved the adoption of a resolution entitled “A resolution approving the 2015 Amendment Number 1 to City of Monticello Urban Renewal Plan”, seconded by Council Member Paulson. After due consideration, the Mayor put the question to a roll call vote, with the following votes cast:
Ayes: Lux, Paulson, Meyer, Russ and Goedken.
Nays: None.
Abstained: Yeoman.
Whereupon, the Mayor declared the resolution duly adopted and signed approval thereto.
RESOLUTION NO. 15-87
Resolution approving 2015 Amendment Number 1 to the City of Monticello
Urban Renewal Plan
WHEREAS, as a preliminary step to exercising the authority conferred upon Iowa cities by Chapter 403 of the Code of Iowa (the “Urban Renewal Law”), a municipality must adopt a resolution finding that one or more slums, blighted or economic development areas exist in the municipality and that the rehabilitation, conservation, redevelopment, development or a combination thereof, of such area or areas is necessary in the interest of the public health, safety or welfare of the residents of the municipality; and
WHEREAS, this Council has previously created the Monticello Urban Renewal Area (the “Urban Renewal Area”); and
WHEREAS, 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, and
WHEREAS, notice of a Public Hearing to be held before the City Council on the proposed urban renewal plan amendment for the Monticello Urban Renewal Area was heretofore given in strict compliance with the provisions of Chapter 403 of the Code of Iowa, and the Council has conducted said hearing; and
WHEREAS, the proposed urban renewal plan amendment was previously submitted to the planning and zoning commission of the City of Monticello for review and comment; and
WHEREAS, copies of the urban renewal plan amendment, notice of public hearing and notice of a consultation meeting with respect to the urban renewal plan amendment were mailed to the Jones County Board of Supervisors and the Monticello Community School District; the consultation meeting being held on the 30th day of September, 2015; no comments in opposition to the amendment or recommendations related thereto were received.
NOW, THEREFORE, be it Resolved by the City Council of the City of Monticello, Iowa, as follows:
Section 1. The proposed amendment to the urban renewal plan for the Monticello Urban Renewal Area, attached hereto and made a part hereof by this reference as if set forth fully verbatim herein, is hereby approved in all respects;
Section 2. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
Passed and approved October 5, 2015.
__________________________
Attest: Dena Himes, Mayor
____________________________
Sally Hinrichsen, City Clerk
• • • •
Upon motion and vote, the meeting adjourned.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, City Clerk
CITY OF MONTICELLO
2015 Amendment Number 1
to the
MONTICELLO URBAN RENEWAL PLAN
Approved by Resolution No. 15-87
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 of 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 news 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 City : $ 5,192,721
Proposed debt to be incurred in connection with this
Amendment : $ 583,900
STATE OF IOWA
COUNTY OF JONES SS:
CITY OF MONTICELLO
I, the undersigned, do hereby certify that I am the duly appointed, qualified and acting City Clerk of the City aforementioned, and 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 approving the urban renewal plan amendment for the Monticello Urban Renewal Area in the City of Monticello, Iowa.
WITNESS MY HAND and the seal of the City hereto affixed this ______ day of ______________________, 2014.
Sally Hinrichsen, City Clerk
(Seal)