City of Monticello, Iowa
Appropriating funds necessary to meet the City’s Obligation
to Cobblestone Inn & Suites (formerly known as Boulders Inn
Monticello) under the Development Agreement
dated October 5, 2015; as amended November 20, 2017
WHEREAS, The Council approved a Development Agreement with Cobblestone Inn & Suites (formerly known as Boulders Inn Monticello) by Resolution #15-86 dated October 5, 2015, and amended agreement by Resolution #17-137 dated November 20, 2017, and
WHEREAS, The agreement provided for grant payments related to Hotel/ Motel Tax Receipts, payable over eleven (11) years, at percentages set forth in the agreement; as amended, modified the rebate schedule from an annual payment schedule to a bi-annual payment schedule. The schedule will be slightly modified to match the bi-annual rebate periods with the Hotel/Motel Tax reporting periods by Cobblestone and allow Cobblestone to submit their Hotel/Motel tax report to the City, which will create one seven (7) month rebate, from 6/1/2017 through 12/31/2017, after which all rebates will be based upon six (6) month schedules (1/1 through 6/30 and 7/1 through 12/31) but for the last rebate period which will end on May 31, 2026, and
WHEREAS, The agreement also provided for two Grant payments of $18,400 each related to the land purchase, with both having previously been paid, the first in May, 2016 and the second in May, 2017, and the occupancy permit was issued on May 16, 2016 and the grant payments related to Hotel/Motel Tax receipts, payable over eleven (11) years at percentages set forth in the agreement, as amended, began in FY ’17, and
WHEREAS, The City, by way of Resolution #2025-145, appropriated $46,124 to meet the City’s obligations related to tenth year grant payment of Hotel/Motel Taxes in FY ’26, in the amount of $24,000; nineth year tax rebate payments, in the amount of $22,124; in FY ’27 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
WHEREAS, After final assessments and payment of Hotel/Motel tax receipts, the tenth-year grant payments, which was paid in FY ‘26, related to Hotel/Motel Tax receipts came in at $14,907.72, being long $9,092.28 and the nineth-year property tax rebate, came in at $21,470, being long $654, with a total appropriation of $36,377.72 for FY ’27. This Resolution correcting the estimate to match the actual grant and rebate, decreasing the appropriation from $46,124. to $36,377.72, which includes the tenth grant year payment and nineth year property tax rebate, and
WHEREAS, The Council finds that funds should be appropriated for FY ‘28 in the amount necessary to rebate sums and to meet grant obligations consistent with the Development Agreement in the following estimated amounts:
- $15,962.27 to meet the City’s eleventh and final year grant obligations to related to the collection and payment of Hotel/Motel Taxes by Cobblestone Inn from January 1, 2026 to May 31, 2026, which is maximum amount approved and lower than the exact amount of the Hotel/Motel Tax rebate to be determined after the receipt of proof of the collection and payment of said taxes by Cobblestone Inn to the State of Iowa. This grant payment was paid by the City in FY ’27 to Cobblestone, and
- $21,470 to meet the City’s tenth and final year rebate obligation according to the terms of the Development Agreement for the property tax rebate, calculated at the rate of 60% of those taxes determined eligible for rebate in FY ‘28, said estimate being based upon the FY ’26 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 the eleventh and final year, FY ’27, of Hotel/Motel Tax grant and tenth year of rebate payments for FY ’28 to Cobblestone Inn & Suites in the estimated amount of $37,433, and hereby acknowledges the tenth-year grant payments, which was paid in FY ‘26, related to Hotel/Motel Tax receipts came in at $14,907.72, being long $9,092.28 and the nineth-year property tax rebate, came in at $21,470, being long $654, by decreasing the previously estimated sum of $46,124 to the actual amount of $36,377.72, resulting in the City’s overall being long in the amount of $9,746.28.
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 19th day of October, 2026.
Shannon Poe, Mayor
Attest:
Sally Hinrichsen, City Clerk/Treasurer