The City of Monticello, Iowa
RESOLUTION #2023-161
Appropriating funds necessary to meet the City’s Obligation to Theisen Real Estate LLC per Development Agreement, dated September 15, 2023
WHEREAS, The Council approved a Development Agreement with Theisen Real Estate LLC with Resolution #2023-107 dated August 7, 2023.
WHEREAS, The agreement provides for an Environmental Remediation/Demolition Grant, the total sum of $170,000.00 for expenses incurred relating to asbestos removal, and a Property Tax Rebate Grant for total amount of all property taxes paid and/or accrued with regard to the property between the date on which Theisen takes title to the property and the date on which Theisen receives an occupancy permit. These tow grants are 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 did not appropriate or make any rebates to the Developer during FY ’23 due to the fact that the property was not substantially completed or assessed at that time. Council finds that funds should be appropriated in the amount necessary to make the Environmental Remediation/Demolition Grant payment for, due to Theisen Real Estate LLC, in the amount of $170,000, and
WHEREAS, The Developer entered into an “Assessment Agreement”, pursuant to §403.6 of the Iowa Code fixing the minimum assessed valuation of the Property, in contemplation of the value to be added by the proposed project, at not less than one-million seven-hundred fifty thousand dollars ($1,750,000), hereafter referenced as the “Minimum Assessed Valuation” as of January 1st of the year following the completion of the Project and receipt of an Occupancy Permit from the City of Monticello, or January 1, 2027, whichever occurs first, and
WHEREAS, The City has not, prior hereto, appropriated any sums or made any payments to the developer pursuant to the terms of the Development Agreement, and
WHEREAS, The Council finds that funds should be appropriated the Environmental Remediation/Demolition Grant payment in the amount of $170,000, and
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 Environmental Remediation/ Demolition Grant payment as set out above due under the Development Agreement in the amount of $170,000.
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 6th day of November, 2023.
David Goedken, Mayor
Attest:
Sally Hinrichsen, City Clerk/Treasurer