HomeMy WebLinkAbout~Master - Payment to IDOT for repayment of RISE grant for VisionAire RESOLUTION NO. 02-412
RESOLUTION APPROVING FIRST INSTALLMENT TO
THE IOWA DEPARTMENT OF TRANSPORTATION FOR
REPAYMENT OF RISE GRANT FOR VISIONAIRE PROJECT
FOR THE CITY OF AMES
WHEREAS, on April 2, 2002, the Iowa Department of Transportation (IDOT) declared the
City of Ames to be in default of our RISE agreement for failure of the VisionAire Corporation to create
151 jobs within three years of the completion of the South Riverside Street Improvement Project;and,
WHEREAS,IDOT officials indicated that the City was liable for$244,850 that could be paid
in four annual payments beginning July 30, 2002; and,
WHEREAS, in accordance with our developer's agreement, the VisionAire Corporation is
obligated to pay the City for any amount owed the State for failure to meet the obligations of the RISE
grant; and,
WHEREAS, on April 23, 2002, the City Council approved a new agreement with the
VisionAire Corporation wherein they agreed to a repayment plan to the City; and,
WHEREAS, the initial deadline of June 20, 2002, has passed, and VisionAire has not made
its first payment to the City; as a result, the City Attorney will initiate the appropriate legal action to
compel VisionAire to abide by their installment payment agreement; and,
WHEREAS, even though VisionAire has failed to meet its financial obligation to the City as
it had promised,the City is still obligated to make a first installment of$61,212.50 to the IDOT by July
30, 2002.
NOW,THEREFORE,BE IT RESOLVED by the City Council ofthe City of Ames,Iowa, that
authorization of the payment of$61,212.50 from the available balance in the Economic Development
Fund as the first installment for the repayment of RISE funds to the Iowa Department of Transportation
is hereby approved.
ADOPTED THIS 23rd day of July, 2002.
Diane R. Voss, City Clerk Ted Tedesco, Mayor
Introduced by: Quirmbach
Seconded by: Cross
Voting aye: Cross, Goodhue, Quirmbach, Vegge, Wirth
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 23rd day of July, 2002.