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Resolution 23-162

The City of Monticello, Iowa

                                     RESOLUTION #2023-162  

Appropriating funds necessary to meet the City’s Obligation to Mike Beck and Ken McDermott, known as Royal Flush Truck Wash, Inc per Development Agreement, dated March 17, 2014, and as amended, dated June 3, 2019

WHEREAS, The Council approved a Development Agreement with Mike Beck and Ken McDermott, known as Royal Flush Truck Wash, Inc Resolution #17-35 dated March 17, 2014, and amended by Resolution #19-77, dated June 3, 2019 and by Resolution #2020-74, dated June 15, 2020

WHEREAS, The agreement provided for seven (7) Grant payments of $20,000 each, in addition to property tax rebates on the improvements over a period of ten (10) years, at percentages set forth in the agreement, and

WHEREAS, The City, by way of Resolution #2022-129, appropriated $75,932.14 to meet the City’s obligations for fifth grant payment, first year water/sewer grant payment and third year tax rebate payment in FY ‘24, and

WHEREAS, After final assessments and payment of taxes, the third-year rebate came in at $31,040, resulting in the City’s appropriation being short in the amount of $1,878, this Resolution correcting the estimate to match the actual third year tax rebate, increasing the rebate appropriation from $29,162 to $31,040, thus increasing the total appropriation for the fifth grant payment, first year water/sewer grant payment and third year tax rebate payment for FY ’24 from $75,932.14 to $77,810.14, and

WHEREAS, The Council finds that funds should be appropriated for FY ‘25 in the amount necessary to rebate sums and to meet grant obligations consistent with the Development Agreement in the following estimated amounts:

  1. $20,000 to meet the City’s sixth year grant payment, and
  • $29,214 to be rebated according to the terms of the Development Agreement for fourth year property tax rebate, calculated at the rate of 80% of those taxes determined eligible for rebate in FY ‘25, 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 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 sixth year grant payment, and fourth year of rebate payments for FY ’25 to Royal Flush Truck Wash Inc. in the estimated amount of $49,214 and hereby acknowledges the correction of the total appropriation for the fifth grant payment, first year water/sewer grant payment and third year tax rebate payment for FY ’24 by increasing the previously estimated sum of $75,932.14 to the actual payment of $77,810.14.

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