The City of Monticello, Iowa
RESOLUTION #2023-97
Re-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 and paying the City of Monticello for Royal Flush Truck Wash, Inc’s delinquent Pre-Treatment Agreement fines prior to all future payments
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, and
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 #2022-129, appropriated $75,932.14 to meet the City’s obligations for fifth year grant payment, first water/sewer grant payment for FY ‘23 and third year of rebate payments for FY ’24, and 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, and
WHEREAS, The City has a Pre-Treatment Agreement with Royal Flush Truck Wash to discharge waste to the City Sewers, that was executed on June 14, 2019. The City has worked with royal Flush Truck Wash to obtain compliance with the pre-treatment agreement, which throughout the past four years Royal Flush has failed to provide consistent compliance, and
WHEREAS, Royal Flush personnel, Iowa DNR staff and City staff met on June 22, 2022 and revised the pre-treatment agreement changing the ways levels are measured and other conditions as stated in the letter to Royal Flush Truck Wash and attached hereto as Exhibit A, and
WHEREAS, the City has only paid the first tax rebate in FY ’23, as staff was advised they would pay the fines, once they received that payment, which the fines were never paid. As of May 31, 2023, Royal Flush Truck Wash fines total is $40,000.00, and
WHEREAS, Prior to funding any future Development Agreement payments to Royal Flush Truck Wash, the City will first withhold from the Incremental Property Tax revenues payable, an amount equal to the total of all Municipal Infraction penalties and fines due to the City of Monticello, as were agreed to in Exhibit A; thus reducing the amount owed to Royal Flush per the Development Agreement, and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Monticello does hereby formally approves that prior to funding any future Development Agreement payments to Royal Flush Truck Wash, the City will first withhold from the Incremental Property Tax revenues payable, an amount equal to the total of all Municipal Infraction penalties and fines due to the City of Monticello, as were agreed to in Exhibit A and paying the balance, if any, to be paid to Royal Truck Flush Truck Wash for the remainder of the Developer’s Agreement, including payments that were due in Fiscal Year 2023.
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 July, 2023
David Goedken, Mayor
Attest:
Sally Hinrichsen, City Clerk/Treasurer