The City of Monticello, Iowa
RESOLUTION #2024-174
Appropriating funds necessary to meet the City’s Obligation to
Frontier Warehousing and Oak Street Commercial Cabinets, Inc
dba Oak Street Manufacturing per Development Agreement,
dated January 3, 2022, as amended November 7, 2022
WHEREAS, The Council approved a Development Agreement with Frontier Warehousing and Oak Street Commercial Cabinets, Inc dba Oak Street Manufacturing with Resolution #2022-1 dated January 3, 2022, and amended agreement by Resolution #2022-128 dated November 7, 2022, 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 two-hundred fifty thousand dollars ($1,250,000), hereafter referenced as the “Minimum Assessed Valuation” as of January 1, 2023, the first valuation date. It is the stated intention of the Developer that the Minimum Assessed Valuation shall be established on the Jones County property tax rolls as of the First Valuation Date regardless of the then-current degree of completion or incompletion of the Project, and
WHEREAS, The Developer’s Agreement includes the “Base Valuation” rate, which is agreed to be $100,000, and
WHEREAS, The agreement provided for two (2) 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 2023-160, appropriated $33,038 to meet the City’s obligations under first year tax rebate provisions, for FY ’25, as set forth within the Development Agreement, said amount being based upon estimated valuations, and
WHEREAS, After final assessments and payment of taxes, the first-year rebate came in at $36,584 resulting in the City’s appropriation being short in the amount of $3,546, this Resolution correcting the estimate to match the actual rebate, increasing the appropriation from $33,038 to $36,584, and
WHEREAS, The Council finds that funds should be appropriated for FY ’26 in the amount necessary to rebate second year estimated taxes amount of $34,754 as set forth in the Development Agreement, for FY ’26, calculated at the rate of 95% of those taxes determined eligible to be rebated according to the terms of the Development Agreement, said estimate being based upon the FY ’24 valuation and consolidated tax rates, with the exact rebate to be determined after the receipt of final assessment numbers and tax payments by the developer, 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 second year, FY ’26, of rebate payments to Frontier Warehousing in the estimated amount of $34,754 and hereby acknowledges the correction of the FY ’25 total rebate by increasing the estimated sum of $33,038 to the actual amount of $36,584.
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 18th day of November, 2024.
Wayne Peach, Mayor
Attest:
Sally Hinrichsen, City Clerk/Treasurer