City of Monticello, Iowa
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, by way of Resolution #2025-154, appropriated $126,824 to meet the City’s obligations under first year tax rebate provisions, for FY ’27, as set forth within the Development Agreement, said amount being based upon estimated valuations, and
WHEREAS, After final assessments and payment of taxes, the first-year rebate came in at $123,404 resulting in the City’s appropriation being long in the amount of $3,420, this Resolution correcting the estimate to match the actual rebate, decreasing the appropriation from $126,824 to $123,404, and
WHEREAS, The Council finds that funds should be appropriated for FY ‘28 in the amount of $123,404 to be rebated according to the terms of the Development Agreement for second 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 the second year, FY ’28, of rebate payments to Theisen Inc in the estimated amount of $123,404 and hereby acknowledges the correction of the FY ’27 total rebate by decreasing the estimated sum of $126,824 to the actual amount of $123,404.
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