City of Monticello, Iowa
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 #2025-152, appropriated $20,000 to meet the City’s obligations related to sixth and final year grant payment and $74,462 to meet the fourth-year tax rebate payments 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 taxes, the fourth-year rebate came in at $72,398 resulting in the City’s appropriation being long in the amount of $2,064, this Resolution correcting the estimate to match the actual rebate, decreasing the appropriation for sixth year grant payment and the fourth-year tax rebate payments from $94,462 to $92,398, and
WHEREAS, The Council finds that funds should be appropriated for FY ‘28 in the amount of $72,398 to be rebated according to the terms of the Development Agreement for fifth year property tax rebate, calculated at the rate of 100% 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, 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 ’28 of fifth rebate payments to BR3 Development LLC in the estimated amount of $72,398 as previously set forth herein, and hereby acknowledges the correction of FY ‘27 grant and FY ’27 rebate by decreasing the previously estimated sum of $94,462 to the actual amount of $92,398.
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