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Resolution 17-150

The City of Monticello, Iowa

IN THE NAME AND BY THE AUTHORITY OF THE CITY OF MONTICELLO, IOWA

RESOLUTION #17-150

Resolution Appropriating funds necessary to meet the City’s

 Obligation to Boulders Inn Monticello under the Development Agreement approved by Resolution #15-86 dated October 5, 2015

WHEREAS,     The Council approved a Development Agreement with Boulders Inn Monticello by Resolution #15-86 dated October 5, 2015, and

WHEREAS,     The agreement provided for two Grant payments of $18,400 each related to the land purchase, with both having previously been paid, the first in May, 2016 and the second in May, 2017, and grant payments related to Hotel/Motel Tax Receipts, payable over ten (10) years, at percentages set forth in the agreement; 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,     Based upon estimated completion dates of the Hotel, same being the subject of the Development Agreement, tax rebates were not to begin until FY’ 19, as the first tax rebate is to be made after the property has been fully valued and assessed.  The occupancy permit was issued on May 16, 2016 and the first year of grant payments related to Hotel/Motel Tax receipts, payable over ten (10) years at percentages set forth in the agreement, began in FY ’18, and

WHEREAS,     The City, by way of Resolution #16-118, appropriated $19,710 to meet the City’s obligations under the agreement for FY ’18 based upon estimated valuations sums or made any payments to the developer pursuant to the terms of the Development Agreement, and

WHEREAS,     After final payment of Hotel/Motel Taxes, the first year Hotel/Motel Tax receipts grant payment, which was paid June 2017, totaled $10,933.05, resulting in the City’s total appropriation being long in the amount of $8,776.95, this Resolution correcting the estimate to match the actual rebate, decreasing the appropriation from $19,710 to $10,933.05, which includes the first grant related to the Hotel/Motel Tax receipts, and

WHEREAS,    The Council finds that funds should be appropriated for FY ‘19 in the amount necessary to rebate sums and to meet grant obligations consistent with the Development Agreement in the following estimated amounts:

  1. $32,000 to meet the City’s obligations to related to the collection and payment of Hotel/Motel Taxes by Boulders, with the exact amount of the Hotel/Motel Tax rebate to be determined after the receipt of proof of the collection and payment of said taxes by Boulders to the State of Iowa, and
  • $37,138 to be rebated according to the terms of the Development Agreement, calculated at the rate of 100% of those taxes determined eligible for rebate, said estimate being based upon the FY ’17 valuation and consolidated tax rates, with the exact rebate to be determined after the receipt of final assessment numbers and tax payments made 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 the second year, FY ’19, of Hotel/Motel Tax rebates and first year, FY ’19, of rebate payments to Boulders Inn Monticello in the estimated amount of $69,138, and hereby acknowledges the correction of the FY ’18 total rebate by reducing the previously estimated sum of $19,710 to the actual amount of $10,933.05.

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 20th day of November, 2017.

Dena Himes, Mayor

Attest:

Sally Hinrichsen, Monticello City Clerk