The City of Monticello, Iowa
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF MONTICELLO, IOWA
RESOLUTION #16-117
Resolution Appropriating funds necessary to meet the City’s
Obligation to Karde’s Inc. per Development Agreement
dated March 17, 2014
WHEREAS, The Council approved a Development Agreement with Karde’s Inc by Resolution #14-31 dated March 17, 2014, and
WHEREAS, The agreement provided for six Grant payments of $20,000 each, in addition to property tax rebates on the improvements over a period of ten (10) years, at percentages set forth in the agreement, and
WHEREAS, The City, by way of Resolution #15-105, appropriated $54,304 to meet the City’s obligations for third grant payment and first tax rebate payments in FY ’17 based upon estimated valuations, and
WHEREAS, After final assessments and payment of taxes, the first year rebate came in at $33,492, resulting in the City’s appropriation being long in the amount of $812, and it is necessary to correct the past Resolution decreasing the appropriation from $54,304 to $53,492, which includes the 3rd grant payment, and
WHEREAS, The Council finds that funds should be appropriated in the amount necessary to make the fourth grant payment of $20,000 in addition to the amount necessary to rebate second year taxes to Karde’s Inc as set forth in the Development Agreement, for FY ’18, calculated at the rate of 90% of those taxes determined eligible to be rebated according to the terms of the Development Agreement, in the estimated total amount of $30,142, said estimate being based upon the FY ’16 valuation and consolidated tax rates, with the exact rebate to be determined after the receipt of final assessment numbers and tax payments by the developer.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Monticello does hereby formally appropriate funds necessary to meet the City’s obligation to pay FY ’18 of fourth grant and second rebate payments to Karde’s Inc in the estimated amount of $50,142 as previously set forth herein, and does also hereby acknowledge the correction of the FY ’17 total rebate by reducing the estimate of $54,304 to the actual payment of $53,492, as explained above.
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 21st day of November, 2016.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, Monticello City Clerk