The City of Monticello, Iowa
RESOLUTION #2024-175
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, 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. The Certificate of Occupancy and Compliance is dated October 28, 2024, and
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 two 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, by way of Resolution #2023-161, appropriated $170,000 to meet the City’s obligations related to the Environmental Remediation/Demolition Grant payment, to be paid in FY ’24, and
WHEREAS, After final bill was submitted for the Environmental Remediation/ Demolition Grant, the amount paid to Theisen Inc on January 4, 2024, was $161,875 resulting in the City’s appropriation being long in the amount of $8,125, this Resolution correcting the estimate to match the actual payment, decreasing the appropriation for the Environmental Remediation/ Demolition Grant payment from $170,000 to $161,875, and
WHEREAS, The City did not appropriate or make any property tax rebates to the Developer during FY ’25 due to the fact that the property was not substantially completed or assessed at that time. The Council finds that funds should be appropriated for the Property Tax Rebate Grant payment for, due to Theisen Real Estate LLC, in the estimated amount of $1,272, 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 Property Tax Rebate Grant payment as set out above due under the Development Agreement in the amount of $1,272, and hereby acknowledges the correction of FY ‘24 Environmental Remediation/ Demolition Grant decreasing the previously estimated sum of $170,000 to the actual amount of $161,875.
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