2017 ADDITION (Amendment #2) TO THE MONTICELLO URBAN RENEWAL AREA DESIGNATION AND AMENDMENT TO URBAN RENEWAL PLAN HEARING
Monticello, Iowa
October 02, 2017
The City Council of the City of Monticello, Iowa, met on October 02, 2017, at 6:00 o’clock, p.m., at the Mary Lovell LeVan, Monticello Renaissance Center, Community Media Center, 220 East First Street, Monticello, Iowa for the purpose of conducting a public hearing on a proposed amendment to the Monticello Urban Renewal Area and the Monticello Urban Renewal Plan that would designate additional grounds or areas to become subject to the terms and provisions of the Monticello Urban Renewal Plan and would specifically add the B & J Hauling and Excavation project at 218 W. 1st Street to the plan. The Mayor presided and the roll being called the following members of the Council were present and/or absent:
Present: Dave Goedken, Brian Wolken, Rob Paulson, Johnny Russ, Chris Lux and Tom Yeoman.
Absent: None.
The City Council investigated and found that notice of the intention of the Council to conduct a public hearing on the proposed amendment to the Monticello Urban Renewal Area and the Monticello Urban Renewal Plan that would designate additional grounds or areas to become subject to the terms and provisions of the Monticello Urban Renewal Plan and would specifically add the B & J Hauling and Excavation project at 218 W. 1st Street to the plan 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 City 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:
None.
There being no further objections, comments, or
evidence offered, the Mayor announced the hearing closed.
Council Member Goedken moved the adoption of a resolution entitled “A Resolution to Declare Necessity and Establish an Urban Renewal Area, by amending the current Urban Renewal Area, pursuant to Section 403.4 of the Code of Iowa and to approve the 2017 Addition (Amendment #2) to the Monticello Urban Renewal Area, adding the B & J Hauling and Excavation project at 218 W 1st Street to the plan, seconded by Council Member Yeoman. After due consideration, the Mayor put the question on the motion and the roll being called, the following named Council Members voted:
Ayes: Goedken, Yeoman, Lux, Wolken, Paulson and Russ.
Nays: None.
Whereupon, the Mayor declared the resolution duly
adopted and signed approval thereto.
RESOLUTION NO. 17-110
A resolution to declare necessity and establish an urban renewal area by amending the current Urban Renewal Area, pursuant to Section 403.4 of the Code of Iowa, and to approve the 2017 Addition (Amendment #2) to the Monticello Urban Renewal Area, adding the B & J Hauling and Excavation project at 218 W. 1st Street to the 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 development 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, the City Council (the “Council”) of the City of Monticello (the “City”) has previously created the Monticello Urban Renewal Area (the “Urban Renewal Area”); and
WHEREAS, a proposal has been made which shows the desirability of expanding the Urban Renewal Area to add and include all the property within the following legal description:
B & J Hauling & Excavation property located at 218 W. 1st Street, Monticello, Iowa legally described as follows: Lot 429; and that part of LOT 430 lying South and West of a line commencing at the Southeast corner thereof, and running thence Northwesterly to a point on the West line thereof 25 feet South of the Northwest corner thereof; ALL IN RAILROAD ADDITION TO MONTICELLO, IOWA. EXCEPTING FROM ALL OF THE ABOVE THE FOLLOWING: Commencing at the Southeast corner of Lot 429 of Railroad Addition to the City of Monticello, Iowa, thence Westerly along the South line of said lot 50 feet; thence north at a right angle to a point on a line in Lot 430 of Railroad Addition, said line being described as commencing at the Northeast corner of Lot 429 Railroad Addition thence running Westerly to a point on the West line of Lot 430, 25 feet South of the Northwest corner thereof; thence Easterly from said point to the Northeast corner of said Lot 429; thence Southerly along the East line of said Lot to point of beginning.
-and-
WHEREAS, the proposal demonstrates that sufficient need exists to warrant the finding that the area described above is a blighted area and an area prime for economic development; and that the development of such area is necessary and in the interest of the public health, safety or welfare of the residents of the municipality
WHEREAS, notice of a public hearing by the City Council of the City on the question of establishing said area as an urban renewal area and on a proposed urban renewal plan amendment for the 2017 Addition, Amendment #2, to the Monticello Urban Renewal Area, adding the B & J Hauling and Excavation project at 218 W. 1st Street to the plan, 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 Planning and Zoning Commission of the City has reviewed and commented on the proposed urban renewal plan amendment; 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 through the County Auditor and the Monticello Community School District through the School District Superintendent; the consultation meeting was held on the 27th day of September, 2017; and responses to any comments or recommendations received following the consultation meeting were made as required by law;
NOW, THEREFORE, It Is Resolved by the City Council of the City of Monticello, Iowa, as follows:
Section 1. An economic development area as defined in Chapter 403 of the Code of Iowa, is found to exist in the City of Monticello within the boundaries of the property, the legal description of same being set out previously within the body of this Resolution.
Section 2. The area identified in Section 1 hereof is hereby declared to be an urban renewal area, in conformance with the requirements of Chapter 403 of the Code of Iowa, and is hereby designated the 2017 Addition, Amendment #2, to the Monticello Urban Renewal Area.
Section 3. The development of this area is necessary in the interest of the public health, safety or welfare of the residents of the City.
Section 4. The amendment to the urban renewal plan for the Monticello Urban Renewal Area, adding the B & J Hauling and Excavation project at 218 W. 1st Street to the plan, a copy of said Amendment being attached hereto and made a part hereof, is hereby in all respects approved.
Section 5. All resolutions or parts thereof in conflict herewith are hereby repealed, to the extent of such conflict.
Passed and approved October 02, 2017.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, City Clerk
• • • •
Upon motion and vote, the meeting adjourned.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, City Clerk
STATE OF IOWA )
COUNTY OF JONES )§
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 designating an urban renewal area and approving the urban renewal plan amendment for the 2017 Addition, Amendment #2, to the Monticello Urban Renewal Area in the City.
WITNESS MY HAND and the seal of the City hereto affixed this 3rd day of October, 2017.
Sally Hinrichsen, City Clerk
(Seal)
(Please attach to this certificate a copy of the minutes or a resolution of the Planning and Zoning Board showing the consideration of the proposed amendments by the Board.)
CITY OF MONTICELLO
2017 Amendment Number 2
to the
MONTICELLO URBAN RENEWAL PLAN
Approved by Resolution No. 17-110
October 2, 2017
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.
- 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: 218 W. 1st Street Commercial Redevelopment Project, an Urban Renewal and Economic Development Project.
Name of Urban Renewal Area: Monticello Urban Renewal Area
Year of Establishment of Urban Renewal Area: 1992 as amended in 1996, 2000, 2001, 2007, 2010, 2011, 2015, and 2017
Date of Council Approval of Project: October 2, 2017
Location and Description of Economic Development Project: The project is proposed to include the demolition of existing structures located on 218 W. 1st Street, said building having been the subject of Nuisance, Dangerous Building, and Building Maintenance Code violations and being in a general state of disrepair and decay, and the construction of a one story steel frame with brick front commercial building, same to house three individual storefronts.
Description of Use of TIF: The City has preliminarily approved the use of incentives to facilitate this project, including a grant to the Developer and tax rebates to the owner of each of the three units.
Grant: The City has preliminarily agreed to pay the developer the sum of $5,000 upon demolition of the existing structures and $15,000 upon the final construction of the building, which shall not include interior build out that will be the responsibility of the purchaser of each unit.
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: 85%, 80%, 75%, 70%, 65%, 60%, 55%, 50%, 45% and 40%. 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 $343,452, based solely on estimated construction costs, with a 10% tax rollback, and a consistent millage rate of $35.18460, with no reduction in value associated with 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: $37,500 (It is estimated, based upon the same assumptions noted above, that tax receipts over said ten (10) year period would total $70,000)
The maximum economic development grant totals $20,000 and the total rebates are estimated to not exceed $37,500, a total of $57,500 between the grant and rebates.
- 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: $11,426,224
Outstanding general obligation debt of the City[1]: $ 4,685,000
Proposed debt to be incurred in connection with this
Amendment[2]: $
57,500
[1] After June 1, 2017 principal payments the General Obligation Debt of the City equals $4,535,000. Rebate agreement payments due in FY ’18 total approximately $ 150,000. Those two obligations together total $4,685,000.
[2] The debt incurred herein shall be subject to annual appropriation by the City Council.