The City of Monticello, Iowa
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF MONTICELLO, IOWA
RESOLUTION #15-86
Resolution to approve Development Agreement between the City of Monticello and Boulders Inn Monticello, L.L.C.
WHEREAS, The City Council of Monticello wishes to promote the development and construction of a Boulders Inn & Suites in the Welter Commercial Park, and in support of that desire has negotiated the terms of a Development Agreement with the local Boulders ownership, and
WHEREAS, The City of Monticello has entered into many developers agreements over the years, promoting the development of new business, new jobs, and needed and/or desired businesses within the Monticello City limits, and
WHEREAS, The City Council recognized the support for a hotel in the community and finds that the use of Economic Development tools and incentives to promote the project would be a wise decision and beneficial to the long term success and future growth of the City of Monticello, and
WHEREAS, The City Council finds that the City should offer similar incentives as offered to other enterprises, in addition to a partial rebate of hotel/motel tax receipts, as follows:
1. Rebate Payments. In recognition of the Developers obligations set out above, the City agrees to make 20 semi-annual economic development tax increment payments (the “Rebate Payments”) to the Developer, pursuant to Chapters 15A and 403 of the Code of Iowa and as described below.
Year 1: 100%
Year 2: 90%
Year 3: 85%
Year 4: 80%
Year 5: 75%
Year 6: 70%
Year 7: 65%
Year 8: 60%
Year 9: 60%
Year 10: 60%
2. Grant Payments. The City further agrees to make a series of economic development grants (the “Grant Payments) in the amount of $20,000 per acre, with the first payment made upon occupancy and subsequent payments on one year intervals thereafter. (The project requires 1.84 acres, therefore, the grant will total $36,800.)
3. Hotel/Motel Tax Reimbursement. The City further agrees to rebate a portion of the Hotel/Motel tax receipts as follows:
Year 1: 75%
Year 2: 75%
Year 3: 75%
Year 4: 70%
Year 5: 70%
Year 6: 70%
Year 7: 65%
Year 8: 65%
Year 9: 60%
Year 10: 60%
NOW, THEREFORE, BE IT RESOLVED that the City Council of Monticello, Iowa does hereby approve the proposed Development Agreement between the City of Monticello and Boulders Inn Monticello, L.L.C.
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 5th day of October, 2015.
Dena Himes, Mayor
Attest:
Sally Hinrichsen, Monticello City Clerk