The City of Monticello, Iowa
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF MONTICELLO, IOWA
RESOLUTION #18-134
Resolution Appropriating funds necessary to meet the City’s Obligation to Boulders Inn Monticello under the Development Agreement dated October 5, 2015; as amended November 20, 2017.
WHEREAS, The Council approved a Development Agreement with Boulders Inn Monticello by Resolution #15-86 dated October 5, 2015, and amended agreement by Resolution #17-137 dated November 20, 2017, and
WHEREAS, The agreement provided for two Grant payments of $18,400 each related to the land purchase, with both having previously been paid, the first in May, 2016 and the second in May, 2017, and
WHEREAS, The agreement provided for grant payments related to Hotel/ Motel Tax Receipts, payable over eleven (11) years, at percentages set forth in the agreement; as amended, modified the rebate schedule from an annual payment schedule to a bi-annual payment schedule the schedule will be slightly modified to match the bi-annual rebate periods with the Hotel/Motel Tax reporting periods by Boulders and allow Boulders to submit their Hotel/Motel tax report to the City, which will create one seven (7) month rebate, from 6/1/2017 through 12/31/2017, after which all rebates will be based upon six (6) month schedules (1/1 through 6/30 and 7/1 through 12/31) but for the last rebate period which will end on May 31, 2026, and
WHEREAS, In addition, the agreement provided for to property tax rebates on the improvements over a period of ten (10) years at percentages set forth in the agreement, and
WHEREAS, Based upon estimated completion dates of the Hotel, same being the subject of the Development Agreement, tax rebates were not to begin until FY’ 19, as the first tax rebate is to be made after the property has been fully valued and assessed. The occupancy permit was issued on May 16, 2016 and the first year of grant payments related to Hotel/Motel Tax receipts, payable over eleven (11) years at percentages set forth in the agreement, as amended, began in FY ’17, and
WHEREAS, The City, by way of Resolution #17-150, appropriated $69,138.00 to meet the City’s obligations related to the second year grant payment of Hotel/Motel Taxes in FY ‘18 and first year tax rebate payments in FY ’19 based upon the FY ’17 valuation and consolidated tax rates, with the exact rebate to be determined after the receipt of final assessment numbers and tax payments made by the developer, and
WHEREAS, After final payment of Hotel/Motel Taxes, the second year Hotel/Motel Tax grant payment, which was paid January 2018 totaled $9,233.13 for period June 1, 2017 to December 31, 2017, resulting in the City’s total appropriation being long in the amount of $17,543.49, for FY ’18. In addition, after final assessments and payment of taxes, the first year tax rebate, totaled $33,224.00 resulting in the City’s total appropriation being long in the amount of $26,680.87, for FY ’19. This Resolution corrects the estimated appropriation for FY ‘19 to match the actual FY ‘18 grant payment and FY ’19 rebate payments, decreasing the appropriation from $69,138 to $42,457.13, and
WHEREAS, The Council finds that funds should be appropriated for FY ‘20 in the amount necessary to rebate sums and to meet grant obligations consistent with the Development Agreement in the following estimated amounts:
- $32,000 to meet the City’s third year obligations to related to the collection and payment of Hotel/Motel Taxes by Boulders from January 1, 2018 to December 31, 2019, with the exact amount of the Hotel/Motel Tax rebate to be determined after the receipt of proof of the collection and payment of said taxes by Boulders to the State of Iowa, and
- $33,224 to be rebated according to the terms of the Development Agreement, calculated at the rate of 90% of those taxes determined eligible for rebate, said estimate being based upon the FY ’18 valuation and consolidated tax rates, with the exact rebate to be determined after the receipt of final assessment numbers and tax payments made by the developer.
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 third year, FY ’19, of Hotel/Motel Tax grant and second year of rebate payments for FY ’20 to Boulders Inn Monticello in the estimated amount of $65,224, and hereby acknowledges the correction of the FY ’18 total grant and FY ’19 rebate by reducing the previously estimated sum of $69,138 to the actual amount of $42,457.13.
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 19th day of November, 2018.
Brian Wolken, Mayor
Attest:
Sally Hinrichsen, Monticello City Clerk