City of Monticello, Iowa
RESOLUTION #2025-154
Appropriating funds necessary to meet the City’s Obligation to
Theisen Inc per Development Agreement, dated September 15, 2023
WHEREAS, The Council approved a Development Agreement with Theisen Real Estate LLC with Resolution #2023-107 dated August 7, 2023, and
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 seven-hundred fifty thousand dollars ($1,750,000), hereafter referenced as the “Minimum Assessed Valuation” as of January 1st of the year following the completion of the Project and receipt of an Occupancy Permit from the City of Monticello, or January 1, 2027, whichever occurs first. The Certificate of Occupancy and Compliance is dated October 28, 2024, and
WHEREAS, The agreement provides for an Environmental Remediation/Demolition Grant, the total sum of $170,000.00 for expenses incurred relating to asbestos removal, and a Property Tax Rebate Grant for total amount of all property taxes paid and/or accrued with regard to the property between the date on which Theisen takes title to the property and the date on which Theisen receives an occupancy permit. These two grants are 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 final bill was submitted for the Environmental Remediation/ Demolition Grant, the amount paid to Theisen Inc on January 4, 2024, was $161,875, and
WHEREAS, The City did not appropriate or make any property tax rebates to the Developer during FY ’26 due to the fact that the property was not substantially completed or assessed at that time. The Council did appropriate fund for the Property Tax Rebate Grant payment for, due to Theisen Inc, in the estimated amount of $1,272, and
WHEREAS, The Council finds that funds should be appropriated for FY ‘27 in the amount of $126,824 to be rebated according to the terms of the Development Agreement for first year property tax rebate, calculated at the rate of 100% of those taxes determined eligible for rebate in FY ‘27, said estimate being based upon the FY ’25 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 first year, FY ’27, of rebate payments to Theisen Inc, as set forth in the Development Agreement in the estimated amount of $126,824.
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 3rd day of November, 2025.
Wayne Peach, Mayor
Attest:
Sally Hinrichsen, City Clerk/Treasurer