The City of Monticello, Iowa
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF MONTICELLO, IOWA
RESOLUTION #2022-137
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, by way of Resolution 2021-139, appropriated $40,000 to meet the City’s obligations for first and second grant payments.
The City did not appropriate or make any rebates to the Developer during FY ’23 due to the fact that the property was not substantially completed or assessed at that time.
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 Developer’s Agreement includes the “Base Valuation” rate, which is agreed to be $100,000, and
WHEREAS, The Council finds that funds should be appropriated in the amount necessary to make the third grant payment of $20,000 in addition to the amount necessary to rebate first year taxes to BR3 Development LLC as set forth in the Development Agreement, for FY ’24, calculated at the rate of 100% of those taxes determined eligible to be rebated according to the terms of the Development Agreement, in the estimated total amount of $48,732, said estimate being based upon the FY ’22 valuation and consolidated tax rates, with the exact rebate to be determined after the receipt of final assessment numbers and tax payments by the developer, 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 FY ’24 of third grant and first rebate payments to BR3 Development LLC in the estimated amount of $68,732 as previously set forth herein.
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 7th day of November, 2022.
David Goedken, Mayor
Attest:
Sally Hinrichsen, City Clerk/Treasurer