The City of Monticello, Iowa
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF MONTICELLO, IOWA
RESOLUTION #15-105
Resolution Appropriating funds necessary to meet the City’s
Obligation to Karde’s Inc. per Development Agreement
dated March 17, 2014
WHEREAS, The Council approved a Development Agreement with Karde’s Inc by Resolution #14-31 dated March 17, 2014, and
WHEREAS, The agreement provided for six 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 did not appropriate or make any rebates to the Developer during FY ’16 due to the fact that the property was not substantially completed or assessed at that time. Council finds that funds should be appropriated in the amount necessary to make the 1st & 2nd grant payments for FY ’15 and FY ’16 due Karde’s Inc in the amount of $20,000 each, totaling $40,000.
WHEREAS, The City finds that the improvements were deemed substantially complete on January 1, 2015 and has been, therefore, valued for tax purposes near 100%, resulting in the commencement of the Rebate Schedule in FY ’17, and
WHEREAS, The Council finds that funds should be appropriated in the amount necessary to make the 3rd grant payment of $20,000 in addition to the estimated amount of $34,304, same representing the estimated tax rebate due the developer in FY ’17, same being based upon estimated valuation and consolidated tax rates, with the exact rebate to be determined after the receipt of actual final assessment numbers and payment of taxes by the owner.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Monticello does hereby formally appropriate $60,000 to meet the City’s obligation to pay the 1st, 2nd, and 3rd Grant payments and $34,304 to cover the agreed upon rebate due the developers, same representing the 1st year that a rebate will be paid on this project under the agreement.
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 16th day of November, 2015.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, Monticello City Clerk