RESOLUTION #10-18
Approving Development Agreement with Innovative Ag Services Co., Authorizing Annual Appropriation Tax Increment Payments and Pledging Certain Tax Increment Revenues to the Payment of the Agreement
WHEREAS, the City of Monticello, Iowa (the “City”), pursuant to and in strict compliance with all laws applicable to the City, and in particular the provisions of Chapter 403 of the Code of Iowa, has adopted an Urban Renewal Plan for the Monticello Urban Renewal Area (the “Urban Renewal Area”); and
WHEREAS, this City Council has adopted an ordinance providing for the division of taxes levied on taxable property in the Urban Renewal Area pursuant to Section 403.19 of the Code of Iowa and establishing the fund referred to in Subsection 2 of Section 403.19 of the Code of Iowa (the “Urban Renewal Tax Revenue Fund”), which fund and the portion of taxes referred to in that subsection may be irrevocably pledged by the City for the payment of the principal and interest on indebtedness incurred under the authority of Section 403.9 of the Code of Iowa to finance or refinance in whole or in part projects in the Urban Renewal Area; and
WHEREAS, an agreement between the City and Innovative Ag Services Co. has been prepared (the “Agreement”), pursuant to which Innovative Ag Services Co. would construct a new facility for use as the Company’s headquarters in the Urban Renewal Area (the “Innovative Ag Services Co. Project”) and the City would provide annual appropriation tax increment payments in a total amount not exceeding $75,000; and
WHEREAS, this City Council, pursuant to Section 403.9 of the Code of Iowa, has published notice, has held a public hearing on the Agreement on February 15, 2010, and has otherwise complied with statutory requirements for the approval of the Agreement; and
WHEREAS, Chapter 15A of the Code of Iowa (“Chapter 15A”) declares that economic development is a public purpose for which a City may provide grants, loans, tax incentives, guarantees and other financial assistance to or for the benefit of private persons; and
WHEREAS, Chapter 15A requires that before public funds are used for grants, loans, tax incentives or other financial assistance, a City Council must determine that a public purpose will reasonably be accomplished by the spending or use of those funds; and
WHEREAS, Chapter 15A requires that in determining whether funds should be spent, a City Council must consider any or all of a series of factors;
NOW, THEREFORE, It Is Resolved by the City Council of the City of Monticello, Iowa, as follows:
Section 1. Pursuant to the factors listed in Chapter 15A, the Council hereby finds that:
(a) The Innovative Ag Services Co. Project will add diversity and generate new opportunities for the Monticello and Iowa economies;
(b) The Innovative Ag Services Co. Project will generate public gains and benefits, particularly in the creation of new jobs, which are warranted in comparison to the amount of the proposed financial incentives.
Section 2. The City Council further finds that a public purpose will reasonably be accomplished by entering into the Agreement and providing the incremental property tax payments to Innovative Ag Services Co..
Section 3. The Agreement is hereby approved and the Mayor and City Clerk are hereby authorized and directed to execute and deliver the Agreement on behalf of the City, in substantially the form and content in which the Agreement has been presented to this City Council, and such officers are also authorized to make such changes, modifications, additions or deletions as they, with the advice of bond counsel, may believe to be necessary, and to take such actions as may be necessary to carry out the provisions of the Agreement.
Section 4. All payments by the City under the Agreement shall be subject to annual appropriation by the City Council, in the manner set out in the Agreement. As provided and required by Chapter 403 of the Code of Iowa, the City’s obligations under the Agreement shall be payable solely from a subfund (the “Innovative Ag Services Co. Subfund”), which is hereby established, into which shall be paid that portion of the income and proceeds of the Urban Renewal Tax Revenue Fund attributable to property taxes derived from the property described as follows:
Certain real property in the City of Monticello, County of Jones, State of Iowa more particularly described as follows:
That portion of the SE ¼ of SECTION 33, TOWNSHIP 86, NORTH, RANGE 3, West of the 5th P.M., Jones County, Iowa, described as Commencing at a point 573.1 feet North of the Southeast corner of said Section 33; thence South 8935’ West 986.0 feet to the Easterly right of way line of former U.S. Highway No. 151; thence North 4754’ East 1,328.8 feet along said right of way line to the East line of the NE ¼ SE ¼ of said Section 33; thence South 883.7 feet along the East line of said Section 33 to the point of beginning. The East line of said Section 33 is assumed to bear due North and South.
Section 5. The City hereby pledges to the payment of the Agreement the Innovative Ag Services Co. Subfund and the taxes referred to in Subsection 2 of Section 403.19 of the Code of Iowa to be paid into such Subfund, provided, however, that no payment will be made under the Agreement unless and until monies from the Innovative Ag Services Co. Subfund are appropriated for such purpose by the City Council.
Section 6. After its adoption, a copy of this resolution shall be filed in the office of the County Auditor of Jones County to evidence the continuing pledging of the Innovative Ag Services Co. Subfund and the portion of taxes to be paid into such Subfund and, pursuant to the direction of Section 403.19 of the Code of Iowa, the Auditor shall allocate the taxes in accordance therewith and in accordance with the tax allocation ordinance referred to in the preamble hereof.

Section 7. All resolutions or parts thereof in conflict herewith are hereby repealed.
Passed and approved this 15th day of February, 2010.