HomeMy WebLinkAbout~Master - Contract for economic development assistance for AMCOR Rigid Plastics USA, Inc. RESOLUTION NO. 12-637
RESOLUTION APPROVING CONTRACT FOR ECONOMIC DEVELOPMENT
FINANCIAL ASSISTANCE WITH IOWA ECONOMIC DEVELOPMENT AUTHORITY
AND AMCOR RIGID PLASTICS,
AND AGREEMENT FOR LOCAL MATCH
FOR THE CITY OF AMES,IOWA
WHEREAS, AMCOR is a large, multi-national company with several business lines,
including operation of a plastic beverage container manufacturing plan in Ames (the former Ball
Plastics plant); and,
WHEREAS,the company is retooling the Ames plant to more modern equipment to improve
efficiency, and the Iowa Economic Development Authority (IEDA) has approved an economic
development assistance contract with AMCOR that includes a local match provided by the City of
Ames and the Ames Economic Development Commission(AEDC); and,
WHEREAS, the project will include improvements to the existing building as well as new
production equipment and is expected to retain 150 full-time jobs in Ames; and,
WHEREAS, total investment for the project is over $24 million, including a $175,000
forgivable loan from IEDA as well as various state tax incentives ; and,
WHEREAS, the addition of new equipment may also improve the efficiency of electric
power, and the company may qualify for rebates under the Ames Electric Services demand side
management program; and,
WHEREAS,at the June 12,2012,meeting,the City Council adopted a resolution supporting
the AMCOR application for economic development assistance,including the local match consisting
of a$35,000 forgivable loan to be funded with$17,500 from the City of Ames (from the available
balance in the Economic Development Fund) and$17,500 from the AEDC; and,
WHEREAS, the AEDC Board has authorized its commitment to the local match, and the
final step in this process is to finalize the agreement between AMCOR,IEDA,and the City of Ames
and the local match agreement between AMCOR, AEDC and the City of Ames.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the contract for economic development financial assistance with the Iowa Economic
Development Authority and AMCOR Rigid Plastics USA,Inc., is hereby approved, and a contract
providing the local match in the form of a forgivable loan in the amount of$35,000($17,500 from
the City of Ames from available balance in the Economic Development Fund and$17,500 from the
Ames Economic Development Commission) is hereby further approved.
ADOPTED THIS 18`h day of December, 2012.
c�&�. LodA-11 A.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Goodman
Seconded by: Davis
Voting aye: Davis, Goodman, Larson, Orazem, Szopinski, Wacha
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 18t'day of December, 2012.