The City of Monticello, Iowa
RESOLUTION #2023-159
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 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 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 #2022-137, appropriated $20,000 to meet the City’s obligations related to third year grant payment and $48,732 to meet the first-year tax rebate payments in FY ’24 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 made by the developer, and
WHEREAS, After final assessments and payment of taxes, the first-year rebate came in at $40,144 resulting in the City’s appropriation being long in the amount of $8,588, this Resolution correcting the estimate to match the actual rebate, decreasing the appropriation for third year grant payment and the first-year tax rebate payments from $68,732 to $60,144, and
WHEREAS, The Council finds that funds should be appropriated in the amount necessary to make the fourth grant payment of $20,000 in addition to the amount necessary to rebate second year taxes to BR3 Development LLC as set forth in the Development Agreement, for FY ’25, 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 $40,144, said estimate being based upon the FY ’23 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 fourth grant and second rebate payments to BR3 Development LLC in the estimated amount of $60,144 as previously set forth herein, and hereby acknowledges the FY ‘24 grant and FY ’24 rebate by decreasing the previously estimated sum of $68,732 to the actual amount of $60,144.
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 6th day of November, 2023.
David Goedken, Mayor
Attest:
Sally Hinrichsen, City Clerk/Treasurer