City of Monticello, Iowa
RESOLUTION #2026-163
Appropriating funds necessary to meet the City’s Obligation to
Kwik Trip Inc per Development Agreement,
dated January 3, 2022, as amended November 7, 2022
WHEREAS, The Council approved a Development Agreement with Kwik Trip Inc with Resolution #2025-84 dated June 16, 2025, 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 two-million thousand dollars ($2,000,000), hereafter referenced as the “Minimum Assessed Valuation” as of January 1, 2028, 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 $22,400, and
WHEREAS, The agreement provided for five (5) Grant payments of $20,000 each, 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 City, by way of Resolution 2025-156, appropriated $40,000 to meet the City’s obligations for first and second grant payments.
The City did not appropriate or make any rebates to the Developer for FY ’25 due to the fact that the property was not substantially completed or assessed at that time, and
WHEREAS, The Council finds that funds should be appropriated for FY ‘28 in the amount necessary to rebate sum and to meet grant obligations consistent with the Development Agreement in the following estimated amounts:
- $20,000 to meet the City’s third year grant obligations according to the terms of the Development Agreement, and
- $99,526 to meet the City’s first year rebate obligation according to Kwik Trip Inc as set forth in the Development Agreement, for FY ’28, calculated at the rate of 100% of those taxes determined eligible to be rebated according to the terms of the Development Agreement, in the estimated total amount of $99,526, 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 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 third-year grant payment in the amount of $20,000 and the first year of rebate payments for FY ’28 to Kwik Trip Inc in the estimated amount of $99,526, as previously set forth herein.
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