The City of Monticello, Iowa
RESOLUTION #2024-172
Appropriating funds necessary to meet
the City’s Obligation to McMATT Properties
per Development Agreement, dated June 21, 2021
WHEREAS, The Council approved a Development Agreement with McMatt Properties that provided tax rebate incentives tied to the development of a 47-unit rental storage facility, with Resolution #2021-68 dated June 21, 2021, and
WHEREAS, The Council finds it appropriate to follow through on the City’s obligation and or agreement set out therein to annually appropriate sums from the incremental taxation to be collected from new value created by the improvement to meet the tax rebate percentage set out therein, and
WHEREAS, The City, by way of Resolution #2023-158, appropriated $6,678 to meet the City’s obligations under second year tax rebate provisions, for FY ’25, as set forth within the Development Agreement, said amount being based upon estimated valuations, and
WHEREAS, After final assessments and payment of taxes, the second year rebate was calculated to be $8,872, resulting in the City’s appropriation being short in the amount of $2,194, this Resolution correcting the estimate to match the actual rebate, increasing the appropriation from $6,678to $8,872, and
WHEREAS, The Council finds that funds should be appropriated for FY ‘26 in the amount of $8,380 to be rebated according to the terms of the Development Agreement for third year property tax rebate, calculated at the rate of 85% of those taxes determined eligible for rebate in FY ‘26, said estimate being based upon the FY ’24 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
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 ’26, of rebate payments to McMATT Properties, as set forth in the Development Agreement in the estimated amount of $8,380 and hereby acknowledge the correction of the FY ’25 total rebate by increasing the previously estimated sum of $6,678 to the actual amount of $8,872.
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 18th day of November, 2024.
Wayne Peach, Mayor
Attest:
Sally Hinrichsen, City Clerk/Treasurer