HEARING ON 2014 AMENDMENT NUMBER 1 TO THE MONTICELLO URBAN RENEWAL PLAN
Monticello, Iowa
April 21, 2014
The City Council of the City of Monticello, Iowa, met on April 21, 2014, at 6:00 o’clock, p.m., during a regularly scheduled City Council meeting in the Council Chambers for the purpose of conducting a public hearing on a proposed urban renewal plan amendment. The Mayor presided and the roll being called the following members of the Council were present and absent:
Present: Bill Meyer, Frank Yanda, John Sauser and Chris Lux.
Absent: Dave Goedken and Tom Yeoman.
The Council investigated and found that notice of the intention of the City Council to conduct a public hearing on the urban renewal plan amendment had been published according to law and as directed by the Council and that this is the time and place at which the Council shall receive oral or written objections from any resident or property owner of the City. All written objections, statements, and evidence heretofore filed were reported to the Council, and all oral objections, statements, and all other exhibits presented were considered.
The following named persons presented oral objections, statements, or evidence as summarized below; filed written objections or statements, copies of which are attached hereto; or presented other exhibits, copies of which are attached hereto:
(Here list all persons presenting written or oral statements or evidence and summarize each presentation.) None.
There being no further objections, comments, or evidence offered, the Mayor announced the hearing closed.
Council Member Meyer moved the adoption of a resolution entitled “A resolution approving the 2014 Amendment Number 1 to City of Monticello Urban Renewal Plan”, seconded by Council Member Lux. After due consideration, the Mayor put the question to a roll call vote, with the following votes cast:
Ayes: Meyer, Lux, Sauser, and Yanda.
Nays: None.
Whereupon, the Mayor declared the resolution duly adopted and signed approval thereto.
RESOLUTION NO. 14-48
Resolution approving the 2014 Amendment Number 1 to the City of Monticello
Urban Renewal Plan
WHEREAS, as a preliminary step to exercising the authority conferred upon Iowa cities by Chapter 403 of the Code of Iowa (the “Urban Renewal Law”), a municipality must adopt a resolution finding that one or more slums, blighted or economic development areas exist in the municipality and that the rehabilitation, conservation, redevelopment, development or a combination thereof, of such area or areas is necessary in the interest of the public health, safety or welfare of the residents of the municipality; and
WHEREAS, this Council has previously created the Monticello Urban Renewal Area (the “Urban Renewal Area”); and
WHEREAS, an amendment to the Urban Renewal Plan has been prepared to specify a project that the City Council intends to utilize tax increment financing dollars to finance, and
WHEREAS, notice of a Public Hearing to be held before the City Council on the proposed urban renewal plan amendment for the Monticello Urban Renewal Area was heretofore given in strict compliance with the provisions of Chapter 403 of the Code of Iowa, and the Council has conducted said hearing; and
WHEREAS, the proposed urban renewal plan amendment was previously submitted to the planning and zoning commission of the City of Monticello for review and comment; and
WHEREAS, copies of the urban renewal plan amendment, notice of public hearing and notice of a consultation meeting with respect to the urban renewal plan amendment were mailed to the Jones County Board of Supervisors and the Monticello Community School District; the consultation meeting being held on the 2nd day of April, 2014; no comments in opposition to the amendment or recommendations related thereto were received.
NOW, THEREFORE, be it Resolved by the City Council of the City of Monticello, Iowa, as follows:
Section 1. The proposed amendment to the urban renewal plan for the Monticello Urban Renewal Area, attached hereto and made a part hereof by this reference as if set forth fully verbatim herein, is hereby approved in all respects;
Section 2. All resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
Passed and approved April 21, 2014.
__________________________
Attest: Dena Himes, Mayor
____________________________
Sally Hinrichsen, City Clerk
• • • •
Upon motion and vote, the meeting adjourned.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, City Clerk
STATE OF IOWA
COUNTY OF JONES SS:
CITY OF MONTICELLO
I, the undersigned, do hereby certify that I am the duly appointed, qualified and acting City Clerk of the City aforementioned, and that as such I have in my possession or have access to the complete corporate records of the City and of its officers; and that I have carefully compared the transcript hereto attached with the aforesaid records and that the attached is a true, correct and complete copy of the corporate records relating to the action taken by the Council preliminary to and in connection with approving the urban renewal plan amendment for the Monticello Urban Renewal Area in the City of Monticello, Iowa.
WITNESS MY HAND and the seal of the City hereto affixed this ______ day of ______________________, 2014.
Sally Hinrichsen, City Clerk
(Seal)
CITY OF MONTICELLO
2014 Amendment Number 1
to the
MONTICELLO URBAN RENEWAL PLAN
Approved by Resolution No. 14-48
April 21, 2014
The Urban Renewal Plan (the “Plan”), for the Monticello Urban Renewal Area (the “Area”), is being amended for the purpose of identifying a new urban renewal project to be undertaken therein.
1) Identification of Projects.
By virtue of this amendment, the list of authorized urban renewal projects in the Plan is hereby amended to include the following project description:
Name of Project: Karde’s Inc., Beck Construction, Inc., and McDermott Limited partnership, LLP Economic Development Project
Name of Urban Renewal Area: Monticello Urban Renewal Area
Year of Establishment of Urban Renewal Area: 1992 as amended in 2001
Date of Council Approval of Project: March 17, 2014
Location and Description of Economic Development Project: The project is proposed to include the acquisition of approximately 13 acres of property by the developers, Karde’s Inc., Beck Construction, Inc., and McDermott Limited partnership, LLP (thereinafter referred to as the Developers) within the City limits of Monticello near Innovative Ag. Services on Monticello’s south side. The approximate 13 acres is being divided into three separate parcels, with 6 acres to be owned by Karde’s Inc., 2 acres by McDermott Limited Partnership with the balance of just under 5 acres to be owned by Beck Construction, Inc.
Karde’s Inc., is in the planning stages towards the construction of a facility best described as a gas station / truck stop /convenience store. Beck Construction, Inc., has plans, not yet fully determined, to construct a building/facility for commercial purposes on the land in the next two years, and McDermott Limited Partnership has not yet identified a commercial use for their property. The project also includes the extension of sanitary sewer by the City to serve all three lots and the installation of water service lines from the north side of 190th Street to the South side, to be installed if and when needed by a developer. A water service line has already been extended to what will be the Karde’s lot.
Description of Use of TIF: The City has approved a Developer’s Agreement providing specific economic incentives to the Developers in return for their acquisition and development of the subject property consistent with the provisions of said developer’s agreement. The agreement will not provide incentives to any developer who does not develop the property within specific time parameters set out within the agreement. Tax increment financing will be utilized by the City to meet its’ obligations under the Developer’s Agreement, including both TIF Grants and Tax Rebates. The City may also use TIF to pay for the cost of the sanitary and water infrastructure improvements set out in the agreement as being the responsibility of the City. The maximum economic development grant would not exceed $260,000 if all three lots met eligibility standards. The City investment in water and sewer infrastructure is estimated to come in at approximately $80,000, therefore, with engineering services, it is estimated that the total sanitary and water infrastructure should not exceed $100,000. Tax rebates are tied to the taxable valuation of finished improvements and are, therefore, hard to estimate at this time. However, the rebates are based upon the following ten-year schedule: 100%, 90%, 85%, 80%, 75%, 70%, 65%, 60%, 60% and 60%. Under this provision, the news taxes created by the development reduced by the debt service levies of all taxing jurisdictions, the school physical plant and equipment levy, and the other protected levies, if any, will be rebated to the developer consistent with the above schedule and percentage. The rebated sums will be paid from tax increment received by the City and deposited into the City TIF fund.
2) Required Financial Information. The following information is provided in accordance with the requirements of Section 403.17 of the Code of Iowa:
Constitutional debt limit of the City: $9,582,865
Outstanding general obligation debt of the City: $5,125,000
Proposed debt to be incurred in connection with this
Amendment* $450,000
*It is anticipated that some or all of the debt incurred hereunder will be subject to annual appropriation by the City Council with a substantial portion of the above debt not being immediately undertaken, the incentives related thereto being subject to developers meeting specific obligations.