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HomeMy WebLinkAbout~Master - NJIP Agreement with 3M Corporation RESOLUTION NO. 01-387 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AMES, IOWA, APPROVING AN AMENDMENT TO NEW JOBS AND INCOME PROGRAM AGREEMENT 97-03 WITH 3M CORPORATION FOR THE PURPOSE OF RECEIVING ADDITIONAL BENEFITS UNDER 1999 IOWA CODE SECTION 15.326-15.337 FOR IMPROVEMENTS IN THE CITY OF AMES WHEREAS,the city of Ames,Iowa,has received a request from 3M Corporation to approve and submit an amendment to the state of Iowa to the New Jobs and Income Program Agreement 97- 03; and, WHEREAS, 3M Corporation wishes to undertake a project involving a $9,400,000 expansion of their manufacturing process and products and the creation of ten full-time-equivalent manufacturing positions at a median wage of$16.39; and, WHEREAS, the New Jobs and Income Program was established to promote economic development in the state of Iowa; and, WHEREAS, the City Council of the City of Ames supports activities that promote and facilitate economic development within the City; and, WHEREAS, the City of Ames and 3M Corporation have a New Jobs and Income Program Agreement with the state of Iowa Department of Economic Development for the initial project;and, WHEREAS,the City of Ames has determined that the 3M Corporation expansion meets the eligibility criteria for the New Jobs and Income Program; and, WHEREAS,the City of Ames will allow for a five-year schedule of exemption of taxes on the value added by the construction of the manufacturing/warehousing building as follows: 75%in the first year of tax exemption,60%in the second year,45%in the third year,30%in the fourth year, and 15%in the fifth year of tax exemption on the value added by the construction of an additional manufacturing line by the 3M Corporation; and, WHEREAS, the City of Ames has determined that the 3M Corporation's median non- management production wage rate of at least$16.39 has exceeded the requirements of the New Jobs and Income Program, as described in Iowa Code Section 15.326-15.337 and all eligible benefits under this Act,and is reflective of 130%of the average wage in Story County for new jobs; and the City has determined that 3M Corporation is an eligible business, and it is the City's intention to exempt from taxation the value added by improvements to real property as a result of the project; and, WHEREAS, the City of Ames has previously declared the following site as an"economic development area"subject to designation by the Iowa Department of Economic Development as a "economic development area"pursuant to Iowa Code Section 15.326-15.337: The NW 1/4 except the east 97 rods and except track 290'x 776;also the SW 1/4 lying north of the Union Pacific railroad, except the east 97 rods. All is Section 6, T83N, R23W of the 5th P.M., Ames, Story County, Iowa WHEREAS,the City staff has reviewed and recommends the approval and submittal of the New Jobs and Income Program amendment; and, WHEREAS, the City of Ames concurs with 3M Corporation's amendment request. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa: a. That the amendment to the New Jobs and Income Program application and contract be approved and submitted to the state of Iowa. Passed this 28th day of August, 2001. R� �f Diane R.Voss,City Clerk Ted Tedesco,Mayor Introduced by: Hoffman Seconded by: Quirmbach Voting aye: Cross, Hoffman, Quirmbach, Wirth Voting nay: None Absent: Campbell, Goodhue Resolution declared adopted and signed by the Mayor this 28th day of August, 2001.