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Resolution 19-77

The City of Monticello, Iowa

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

RESOLUTION #19-77

Resolution to approve Development Agreement between the City of Monticello and Mike Beck a/k/a Beck Construction

WHEREAS,     The City Council of Monticello wishes to promote urban revitalization and economic development and finds that the proposed construction of a Livestock Truck Washing facility near Kardes 151 would further those goals and be in the best interests of the community, and

WHEREAS,     The City of Monticello has entered into many development agreements over the years, promoting the development of new business, new jobs, and needed and/or desired businesses within the Monticello City limits, and

WHEREAS,     The City Council finds that the City should offer similar incentives as offered to other enterprises, in addition to a couple other incentives unique to this proposed project, as follows:

  1. Rebate Payments.      In recognition of the Developers obligations set out above, the City agrees to make 20 semi-annual economic development tax increment payments (the “Rebate Payments”) to the Developer, pursuant to Chapters 15A and 403 of the Code of Iowa and as described below.

Year 1:  100%
            Year 2:  90%  
            Year 3:  85%  
            Year 4:  80%  
            Year 5:  75%  
            Year 6:  70%  
            Year 7:  65%  
            Year 8:  60%  
            Year 9:  60%  
            Year 10: 60% 

2.         Grant Payments.       The City further agrees to make a series of economic development grants (the “Grant Payments) in the amount of $20,000 per acre, with the first payment made upon occupancy and subsequent payments on one-year intervals thereafter. The $20,000 per acre rebate being subject to overall property and improvement valuation of at least $100,000 per acre. If the overall valuation is less than $100,000 per acre the rebate will be reduced proportionally.

  • Sanitary Sewer Composite Sampler Grant Payment.  The City further agrees to rebate an amount equal to the cost of a Sanitary Sewer Composite Sampler plus 10% to cover miscellaneous costs related to the installation and maintenance of said system. This payment shall be made within thirty days of the issuance of an occupancy permit by the City. Once installed it shall be the sole obligation of the Developer to maintain, repair and replace, if necessary, the composite sampler.
  • Water/Sewer Services Grant. The City will, as spelled out in the agreement, provide a TIF Grant once per year for a period of ten years, to the Developer to offset any increase in water or sewer rates that exceed 5% over the prior year, generally. See the agreement for the specific terms.

NOW, THEREFORE, BE IT RESOLVED that the City Council of Monticello, Iowa does hereby approve the proposed Development Agreement between the City of Monticello and Mike Beck a/k/a Beck Construction.

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 3rd day of June, 2019.

Brian Wolken, Mayor

Attest:

Sally Hinrichsen, Monticello City Clerk