The City of Monticello, Iowa
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF MONTICELLO, IOWA
RESOLUTION #2021-139
Resolution Appropriating funds necessary to meet the City’s Obligation to BR3 Development LLC per Development Agreement, dated March 1, 2021
WHEREAS, The Council approved a Development Agreement with BR3 Development LLC with Resolution #2021-28 dated March 1, 2021.
WHEREAS, The agreement provided for six (6) Grant payments of $20,000 each, in addition to property tax rebates on the improvements over a period of fifteen (15) years, at percentages set forth in the agreement, and
WHEREAS, The City did not appropriate or make any rebates to the Developer during FY ’22 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 first and second grant payments for FY ’22 and FY ’23 due to BR3 Development LLC, in the amount of $20,000 each, totaling $40,000.
WHEREAS, The Developer entered into an “Assessment Agreement”, pursuant to §403.6 of the Iowa Code fixing the minimum assessed valuation of the Property, in contemplation of the value to be added by the proposed project, at not less than one-million two-hundred fifty thousand dollars ($1,250,000), hereafter referenced as the “Minimum Assessed Valuation” as of January 1, 2022, the first valuation date. It is the stated intention of the Developer that the Minimum Assessed Valuation shall be established on the Jones County property tax rolls as of the First Valuation Date regardless of the then-current degree of completion or incompletion of the Project, and
WHEREAS, The City has not, prior hereto, appropriated any sums or made any payments to the developer pursuant to the terms of the Development Agreement, and
WHEREAS, The Council finds that funds should be appropriated in the amount necessary to make the first and second grant payments of $20,000 each, and
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 first two grant payments as set out above due under the Development Agreement in the amount of $40,000.
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 15th day of November, 2021.
Brian Wolken, Mayor
Attest:
Sally Hinrichsen, City Clerk