HomeMy WebLinkAbout~Master - Contract for economic development assistance with Barilla America, Inc. and IEDA RESOLUTION NO. 15-431
RESOLUTION APPROVING CONTRACT FOR ECONOMIC DEVELOPMENT
ASSISTANCE WITH BARILLA AMERICA,INC.,AND IOWA ECONOMIC
DEVELOPMENT AUTHORITY WITH LOCAL MATCH TO BE LIMITED TO
INDUSTRIAL PROPERTY TAX ABATEMENT
FOR THE CITY OF AMES,IOWA
WHEREAS,Barilla America,Inc.,(Barilla)is a subsidiary of Barilla,an Italian company that
provides food products to a global market, and Barilla's Ames facility,located east of Interstate 35,
produces dry pasta; and,
WHEREAS,Barilla is initiating an expansion project that will include construction of storage
and production facilities to add a gluten-free pasta products line to the Ames facility, and total
investment expected for the project is over$26 million; and,
WHEREAS,assistance from the State of Iowa will include tax credits totaling approximately
$850,000, and the company expects to grow employment by 23 additional jobs with the expansion;
and,
WHEREAS,the local match will be limited to property tax abatement available through the
City's existing Industrial Property Tax Abatement program, and the estimated incremental value
eligible for abatement is $3,336,000, resulting in a five-year total abatement of around $217,900
across all taxing bodies; and,
WHEREAS, the City Council endorsed an application for assistance to the Iowa Economic
Development Authority(IEDA)at the January 13,2015,meeting,and the application for assistance
was approved and contract awarded by the IEDA; and,
WHEREAS,for the project to continue,Council must authorize entering into the contract for
award, and for Barilla to receive the local match, the company will need to apply for the City's
Industrial Abatement Program and the project must qualify with the terms.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the contract for economic development assistance with Barilla America, Inc., and the Iowa
Economic Development Authority with the local match to be limited to Industrial Property Tax
abatement is hereby approved.
ADOPTED THIS 3rd day of March, 2015.
c��--ykaA.-I A—._ tom•
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Orazem
Seconded by: Corrieri
Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 3'day of March, 2015.