City of Monticello, Iowa
RESOLUTION #2026-165
Appropriating funds necessary to meet the City’s Obligation to
Robert E Johnson per Development Agreement,
WHEREAS, The Council approved a Development Agreement with Robert E Johnson (Minntex/Eastern Iowa Indoor Sports Facility) with Resolution #2026-17 dated February 17, 2026, 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 three-hundred fifty thousand dollars ($350,000), hereafter referenced as the “Minimum Assessed Valuation” as of January 1, 2027, 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 $1,033,240, and
WHEREAS, The agreement provided for property tax rebates on the improvements over a period of five (5) years, at percentages set forth in the agreement, and
WHEREAS, The City did not appropriate or make any rebates to the Developer for FY ’27 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 in the amount necessary to make the first rebate payment to Robert E Johnson, 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 $25,042, 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, 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 rebate payment to Robert E Johnson in the estimated amount of $25,042, 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