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Resolution 22-129

The City of Monticello, Iowa

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

                                     RESOLUTION #2022-129

Resolution Appropriating funds necessary to meet the City’s Obligation to Mike Beck and Ken McDermott, known as Royal Flush Truck Wash, Inc per Development Agreement, dated March 17, 2014, and as amended, dated June 3, 2019

WHEREAS, The Council approved a Development Agreement with Mike Beck and Ken McDermott, known as Royal Flush Truck Wash, Inc Resolution #17-35 dated March 17, 2014, and amended by Resolution #19-77, dated June 3, 2019 and by Resolution #2020-74, dated June 15, 2020

WHEREAS, The agreement provided for seven (7) 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 #2021-130, appropriated $50,756 to meet the City’s obligations for fourth grant payment and second year tax rebate payment in FY ‘23, and

WHEREAS, After final assessments and payment of taxes, the second year rebate came in at $30,878.00, resulting in the City’s appropriation being short in the amount of $122.00, this Resolution correcting the estimate to match the actual rebate, increasing the appropriation from $30,756 to $30,878, and

WHEREAS, The Council finds that funds should be appropriated for FY ‘24 in the amount necessary to rebate sums and to meet grant obligations consistent with the Development Agreement in the following estimated amounts:

  1. $20,000 to meet the City’s fifth year grant payment, and
  • $26,770.14 to meet the first water/sewer grant for sewer charges July 2021 to June 2022 billings, based on the sewer rate increase that exceeded 5% over the prior year period, and
  • $29,162 to be rebated according to the terms of the Development Agreement for third year property tax rebate, calculated at the rate of 85% of those taxes determined eligible for rebate in FY ‘24, said estimate being based upon the FY ’22 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 fifth year grant payment, first water/sewer grant payment for FY ‘23 and third year of rebate payments for FY ’24 to Royal Flush Truck Wash Inc. in the estimated amount of $75,932.14 and hereby acknowledges the correction of the FY ’23 total rebate by increasing the previously estimated sum of $30,756 to the actual payment of $30,878.

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 7th   day of November, 2022

David Goedken, Mayor

Attest:

Sally Hinrichsen, City Clerk/Treasurer