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Home My WebLink AboutA023 - Email correspondence from October, 2018 Re: Barilla TIF Agreement W ' Mark Lambert to: Duane R Pitcher 10/18/2018 10:14 AM Cc: Diane R Voss, Emily Johnson,"Robert E.Josten",Steve Schainker Duane, I will prepare a minimum asessment agreement and get it to you for your review later today. Mark CITY OF Ames Mark O. Lambert City Attorney 515.239.5146 main 1515.239.5142 fax mlambert@city.ames.ia.us I City Hall, 515 Clark Avenue Ames, IA 50010 www.CitVofAmes.org ^ Caring People-Quality Programs- Exceptional Service- Duane R Pitcher Bob, We finally received back the Development... 10/18/2018 09:59:48 AM From: Duane R Pitcher/COA To: "Robert E.Josten"<josten.robert@dorsey.com>, Mark Lambert/COA@COA Cc: Diane R Voss/COA@COA,Steve Schainker/COA@COA, Emily Johnson/COA@COA Date: 10/18/2018 09:59 AM Subject: Barilla TIF Agreement Bob, We finally received back the Development Agreement from Barilla and they have recommended some changes that we would like you to review. A little back ground on the process since this has been strung out over a long period of time: February 2017 Council agreed in general terms to provide a local match to state economic development incentives to Barilla in the form of a TIF rebate. July 2017 Council approved the Barilla URA and TIF ordinance. Early 2018 a development agreement was drafted with the assistance of the Dorsey law firm and sent to Barilla in May 2018. Bob, Please review the Barilla suggested edits and provide some guidance on timing for the timing of getting this done by the December 1 TIF filing. We will also need a TIF debt resolution prepared for this agreement. Can we take this to our November 13 along with the TIF debt resolution? We have a meeting next Tuesday and if we can get the agreement turned around by then we can include on the agenda. Mark, I don't see a minimum assessment agreement in my files. Do you have one prepared? I can send you a sample, it should be essentially the same as Kingland but with the terms of the Barilla agreement. Thanks, Duane Duane Pitcher, CPA, CPFO Director of Finance City of Ames 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 Phone (515) 239-5114 [attachment "Barilla-Ames Development Agreement- redline v3 (20181017).docx" deleted by Mark LamberdCOA] Page 1 of 2 RE: Barilla TIF Agreement Josten.Robert to: DPitcher, mlambert 10/30/2018 11:55 AM Cc: DVoss Hide Details From: <Josten.Robert@dorsey.com> To: <DPitcher@city.ames.ia.us>, <mlambert@city.ames.ia.us> Cc: <DVoss@city.ames.ia.us> Duane and Mark, I am back in-t ice and' av i�ble to assist you finish this project. I will prepare a resolution for action by the council bn ovember 13 t approve the Development Agreement and Minimum Assessment Agreement. This resolut on will designa he Agreement as a TIF debt and will pledge incremental taxes from the Company's property to ments on the Agreement. A copy of this resolution will be filed with the County Auditor to evidence the TIF debt, and you will then be able to make a TIF debt certification by December 1. Mark, I can provide a draft Assessment Agreement, if you need one. Please contact me if you have questions. Robert E.Josten Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DORSEY & WHITNEY LLP 801 Grand Suite 4100 Des Moines, IA 50309-8002 P: 515.283.1000 F: 515.283.1060 C: 515.556.8186 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CONFIDENTIAL COMMUNICATION E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited,and may be a violation of law. If you believe that you received this e-mail in error,please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof,and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you. From: Duane R Pitcher<DPitcher@city.ames.ia.us> Sent:Thursday, October 18, 2018 10:00 AM To:Josten, Robert<Josten.Robert@dorsey.com>; Mark Lambert<mlambert@city.ames.ia.us> Cc: Diane R Voss<DVoss@city.ames.ia.us>;Steve Schainker<SSchainker@city.ames.ia.us>; Emily Johnson <ejohnson@city.ames.ia.us> Subject: Barilla TIF Agreement Bob, We finally received back the Development Agreement from Barilla and they have recommended some changes that we would like you to review. A little back ground on the process since this has been strung out over a long period of time: February 2017 Council agreed in general terms to provide a local match to state economic development incentives to Barilla in the form of a TIF rebate. file:///C:/Users/diane.voss/AppData/Local/Temp/notesFFF692/—web 1618.htm 10/30/2018 Page 2 of 2 July 2017 Council approved the Barilla URA and TIF ordinance. Early 2018 a development agreement was drafted with the assistance of the Dorsey law firm and sent to Barilla in May 2018. Bob, Please review the Barilla suggested edits and provide some guidance on timing for the timing of getting this done by the December 1 TIF filing. We will also need a TIF debt resolution prepared for this agreement. Can we take this to our November 13 along with the TIF debt resolution? We have a meeting next Tuesday and if we can get the agreement turned around by then we can include on the agenda. Mark, I don't see a minimum assessment agreement in my files. Do you have one prepared? I can send you a sample, it should be essentially the same as Kingland but with the terms of the Barilla agreement. Thanks, Duane Duane Pitcher, CPA, CPFO Director of Finance City of Ames 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 Phone (515) 239-5114 file:///C:/Users/diane.voss/AppData/Local/Temp/notesFFF692/—web 1618.htm 10/30/2018 RE: Barilla TIF Agreement Duane R Pitcher to: Josten.Robert 10/31/2018 04:25 PM Cc: Mark Lambert, Diane R Voss Bob, Thanks. Glad you are back, John Danos may have updated you but we have some issues with the mark-ups that Barilla provided on the development agreement. The biggest issue was related to additional disclosures they are asking us to provide on the EMMA system. I discussed with PFM also since we contract with them for post issuance disclosure services. I also wanted to confirm some dates with you: In the draft agreement, Barilla is asking that the base year be locked in for January 1, 2017 valuation. I think that means we need to certify some debt by Dec. 1 for the FY 19/20 budget year. The minimum assessment agreement does not go into affect until 1/1/2019 so Barilla will not get the full increment until the FY 20/21 tax year. They also made some other date changes on the agreement that I believe are incorrect. We reviewed with John Danos, but I'ld like to go over a few of the issues with you also. I'm free after 3:00 Thursday and all day Friday. The Barilla redline copy of the agreement is attached. Thanks, Duane Duane Pitcher, CPA, CPFO Director of Finance City of Ames 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 Phone (515) 239-5114 -----<J osten.Robert(d)d orsey.corn>wrote: ----- To: <DPitcher(cDcity.ames.ia.us>, <mlambert(cDcity.ames.ia.us> From: <Josten.Robert(cDdorsey.com> Date: 10/30/2018 11:55AM Cc: <DVoss(cDcity.ames.ia.us> Subject: RE: Barilla TIF Agreement Duane and Mark, I am back in the office and available to assist you finish this project. I will prepare a resolution for action by the council on November 13 to approve the Development Agreement and Minimum Assessment Agreement. This resolution will designate the Agreement as a TIF debt and will pledge incremental taxes from the Company's property to make payments on the Agreement. A copy of this resolution will be filed with the County Auditor to evidence the TIF debt, and you will then be able to make a TIF debt certification by December 1. Mark, I can provide a draft Assessment Agreement, if you need one. Please contact me if you have questions. Robert E.Josten Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DORSEY & WHITNEY LLP 801 Grand Suite 4100 Des Moines, IA 50309-8002 P: 515.283.1000 F: 515.283.1060 C: 515.556.8186 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CONFIDENTIAL COMMUNICATION E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error,please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you. From: Duane R Pitcher<DPitcherC«@city.ames.ia.us> Sent:Thursday, October 18, 2018 10:00 AM To:Josten, Robert<Josten.Robe rt@dorsev.com>; Mark Lambert<mlambert@city.ames.ia.us> Cc: Diane R Voss<DVossCc@city.ames.ia.us>; Steve Schainker<SSchainker@city.ames.ia.us>; Emily Johnson <eiohnsonPcity.ames.ia.us> Subject: Barilla TIF Agreement Bob, We finally received back the Development Agreement from Barilla and they have recommended some changes that we would like you to review. A little back ground on the process since this has been strung out over a long period of time: February 2017 Council agreed in general terms to provide a local match to state economic development incentives to Barilla in the form of a TIF rebate. July 2017 Council approved the Barilla URA and TIF ordinance. Early 2018 a development agreement was drafted with the assistance of the Dorsey law firm and sent to Barilla in May 2018. Bob, Please review the Barilla suggested edits and provide some guidance on timing for the timing of getting this done by the December 1 TIF filing. We will also need a TIF debt L 1 resolution prepared for this agreement. Can we take this to our November 13 along with the TIF debt resolution? We have a meeting next Tuesday and if we can get the agreement turned around by then we can include on the agenda. Mark, I don't see a minimum assessment agreement in my files. Do you have one prepared? I can send you a sample, it should be essentially the same as Kingland but with the terms of the Barilla agreement. Thanks, Duane Duane Pitcher, CPA, CPFO Director of Finance City of Ames 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 Phone (515) 239-5114 Barilla-Ames Development Agreement-redline v3(20181017).docx 3 RE: Barilla TIF Agreement or Josten.Robert to: DPitcher 10/31/2018 04:35 PM Cc: mlambert, DVoss I meant to respond to one of your questions in my prior email. Yes, in order to set January 1, 2017, as the base valuation date the City must certify the Incentive payments under this Agreement to the County Auditor by December 1, 2018. 1 look forward to speaking with you. Robert E.Josten Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DORSEY & WHITNEY LLP 801 Grand Suite 4100 Des Moines, IA 50309-8002 P: 515.283.1000 F: 515,283.1060 C: 515.556.8186 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CONFIDENTIAL COMMUNICATION E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error,please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail,all attachments and any copies thereof. Thank you. From: Duane R Pitcher<DPitcher@city.ames.ia.us> Sent:Wednesday, October 31, 2018 4:25 PM To:Josten, Robert<Josten.Robert@dorsey.com> Cc: Mark Lambert<mlambert@city.ames.ia.us>; Diane R Voss<DVoss@city.ames.ia.us> Subject: RE: Barilla TIF Agreement Bob, Thanks. Glad you are back, John Danos may have updated you but we have some issues with the mark-ups that Barilla provided on the development agreement. The biggest issue was related to additional disclosures they are asking us to provide on the EMMA system. I discussed with PFM also since we contract with them for post issuance disclosure services. I also wanted to confirm some dates with you: In the draft agreement, Barilla is asking that the base year be locked in for January 1, 2017 valuation. I think that means we need to certify some debt by Dec. 1 for the FY 19/20 budget year. The minimum assessment agreement does not go into affect until 1/1/2019 so Barilla will not get the full increment until the FY 20/21 tax year. They also made some other date changes on the agreement that I believe are incorrect. We reviewed with John Danos, but I'ld like to go over a few of the issues with you also. I'm free after 3:00 Thursday and all day Friday. The Barilla redline copy of the agreement is attached. Thanks, Duane Duane Pitcher, CPA, CPFO Director of Finance City of Ames 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 Phone (515) 239-5114 -----<Josten.Robert(a)dorsey.com> wrote: ----- To: <DPitcher@city.ames.ia.us>, <mlambert@city.ames.ia.us> From: <Josten.Robert@dorsey.com> Date: 10/30/2018 11:55AM Cc: <DVoss@city.ames.ia.us> Subject: RE: Barilla TIF Agreement Duane and Mark, I am back in the office and available to assist you finish this project. I will prepare a resolution for action by the council on November 13 to approve the Development Agreement and Minimum Assessment Agreement. This resolution will designate the Agreement as a TIF debt and will pledge incremental taxes from the Company's property to make payments on the Agreement. A copy of this resolution will be filed with the County Auditor to evidence the TIF debt, and you will then be able to make a TIF debt certification by December 1. Mark, I can provide a draft Assessment Agreement, if you need one. Please contact me if you have questions. Robert E.Josten Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DORSEY & WHITNEY LLP 801 Grand Suite 4100 Des Moines, IA 50309-8002 P: 515.283.1000 F: 515.283.1060 C: 515.556.8186 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CONFIDENTIAL COMMUNICATION E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited,and may be a violation of law. If you believe that you received this e-mail in error,please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you. From: Duane R Pitcher<DPitcher@city.ames.ia.us> Sent:Thursday, October 18, 2018 10:00 AM To:Josten, Robert<Josten.Robert@dorsey.com>; Mark Lambert<mlambert@city.ames.ia.us> Cc: Diane R Voss<DVoss@city.ames.ia.us>; Steve Schainker<SSchainker@city.ames.ia.us>; Emily Johnson <eiohnson@citv.ames.ia.us> Subject: Barilla TIF Agreement Bob, We finally received back the Development Agreement from Barilla and they have recommended some changes that we would like you to review. A little back ground on the process since this has been strung out over a long period of time: February 2017 Council agreed in general terms to provide a local match to state economic development incentives to Barilla in the form of a TIF rebate. July 2017 Council approved the Barilla URA and TIF ordinance. Early 2018 a development agreement was drafted with the assistance of the Dorsey law firm and sent to Barilla in May 2018. Bob, Please review the Barilla suggested edits and provide some guidance on timing for the timing of getting this done by the December 1 TIF filing. We will also need a TIF debt resolution prepared for this agreement. Can we take this to our November 13 along with the TIF debt resolution? We have a meeting next Tuesday and if we can get the agreement turned around by then we can include on the agenda. Mark, I don't see a minimum assessment agreement in my files. Do you have one prepared? I can send you a sample, it should be essentially the same as Kingland but with the terms of the Barilla agreement. Thanks, Duane Duane Pitcher, CPA, CPFO Director of Finance City of Ames 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010