HomeMy Public PortalAboutResolutions-2012-77RESOLUTION NO 2012 -77
AUTHORIZING INTERNAL ADVANCE FOR FUNDING
ECONOMIC DEVELOPMENT GRANT TO PR BUILDERS,
INC. /IPL DEVELOPMENT, INC.
WHEREAS, Chapter 15A of the Code of Iowa ( "Chapter 15A ") declares that
economic development is a public purpose for which a city may provide grants, Grants,
guarantees and other financial assistance to or for the benefit of private persons; and
WHEREAS, Chapter 15A requires that before public funds are used for grants, Grants or
other financial assistance, a city council must determine that a public purpose will reasonably be
accomplished by the spending or use of those funds; and
WHEREAS, Chapter 15A requires that, in determining whether funds should be spent, a
city council must consider any or all of a series of factors; and
WHEREAS, the City of Tiffin, Iowa (the "City "), has previously established the Tiffin
Urban Renewal Area (the "Urban Renewal Area ") and has established the Tiffin Urban Renewal
Area Tax Increment Revenue Fund (the "Tax Increment Fund ") in connection therewith; and
WHEREAS, the City has undertaken an urban renewal project consisting of funding an
economic development Grant (the "Grant ") to PR Builders, Inc. /IPL Development, Inc. (the
"Company "). as an incentive in connection with the Company's past and future commercial
business activity in the Urban Renewal Area (the "Project "); and
WHEREAS, in order to make the City's costs of funding the Grant eligible to be paid
from future incremental property tax revenues, it is necessary to facilitate an internal advance of
funds in the amount of $165,731; and
NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of Tiffin, Iowa,
as follows:
Section 1. It is hereby directed that an amount not to exceed One Hundred Sixty -Five
Thousand, Seven Hundred and Thirty One Dollars ($165,731) be advanced to the funding of the
Grant from the City's General Fund (the "Advance "). The Advance shall be repaid to the
General Fund, without interest, out of incremental property tax revenues received into the Tax
Increment Fund.
It is intended that the Advance, plus accrued interest thereon, shall be repaid by no later
than June 1, 2014, provided however that repayment of the Advance is subject to the
determination of future City Councils that there are incremental property tax revenues available
for such purpose which have been allocated to or accrued in the Tax Increment Fund relative to
the Advance, and the City Council reserves the right to appropriate funds, or to withhold such
appropriation, at its discretion.
Section 2. Pursuant to the factors listed in Chapter 15A, the City Council hereby
finds that:
a) The Project will add diversity and generate new opportunities for the
Tiffin and Iowa economies;
b) The Project will generate public gains and benefits, which are warranted in
comparison to the amount of the proposed Grant;
Section 4. The City Council further finds that a public purpose will reasonably be
accomplished by making the Grant in connection with the Project.
Section 5. The Grant in an amount not to exceed $165,731, is hereby approved.
Proceeds of the Grant shall be disbursed periodically to the Company in accordance with the
terms set forth in a Grant Agreement. The City Administrator, with advice from the City
Attorney and Bond Counsel, is hereby authorized and directed to take such actions and prepare
such documents, including the Grant Agreement, as may be necessary to carry out the purposes
of this Resolution, and the Mayor and the City Clerk are hereby authorized to execute such
documents as may be necessary to implement the Grant approved herein.
Section 6. All resolutions or parts thereof in conflict herewith, are hereby repealed, to
the extent of such conflict.
On the 28th day of November, 2012, at a regular meeting of the Tiffin City Council, Tiffin, Iowa,
Councilperson Kahler introduced Resolution No. 2012 -77 AUTHORIZING INTERNAL
ADVANCE FOR FUNDING ECONOMIC DEVELOPMENT GRANT TO PR
BUILDINERS, INC /IPL DEVELOPMENT INC. and made a motion for approval. Motion
seconded by Councilperson Ryan.
Ayes: Kahler, Ryan, Bartels, Upton
Nays: None
Absent: Phillips
Whereupon four Council members were present and voted approval and Mayor Berner
declared that the Resolution No. 2012 -77, AUTHORIZING INTERNAL ADVANCE FOR
FUNDING EXONOMIC DEVELOPMENT GRANT TO PR BUILDERS, INC /IPL
DEVELOPMENT INC. to be adopted and signified his approval of the same by affixing his
signature thereto.
PASSED AND APPROVED this 28th day of November, 2012.
Steven L. Berner, Mayor
Attest:
Michon Jacks , City Administrator /Clerk