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HomeMy WebLinkAbout~Master - Authorizing Release of Security for Flood Mitigation Improvements Required Deery Subdivision RESOLUTION NO. 18-400 RESOLUTION AUTHORIZING RELEASE OF SECURITY FOR FLOOD MITIGATION IMPROVEMENTS REQUIRED FOR DEERY SUBDIVISION FOR THE CITY OF AMES,IOWA BE IT RESOLVED,by the City Council of the City of Ames, Iowa: Section One. The City of Ames and Decry, Decry, and Decry, LLC. ("Decry"), entered into an Agreement Pertaining to the Development of Land in the City of Ames Called Decry Subdivision (the "Agreement"), dated October 23, 2012, filed in the office of the Story County Recorder on November 28, 2012, as Instrument 12-14224; and WHEREAS, in said Agreement, Decry was granted a 100% abatement of property taxes contingent upon Decry making certain flood mitigation improvements and providing security in the form of a $300,000 Letter of Credit (the "Security") to be released at the end of the third abatement year subject to verification that the City's share of abated taxes does not exceed the cost of the improvements. Section Two. The Agreement specifically provides that, "[t]he Security shall be released by the City only upon a determination made in writing by the City Finance Director, after the end of the third full assessment year in which exemption was claimed for Lot-1, that no Disqualifying Condition has occurred or that all Clawback Payments due as to Lot-I have been received;" and, WHEREAS, the third fiscal year ends on June 30, 2019; and, WHEREAS, by a letter to the City Clerk dated May 22, 2018, Decry has requested and consented to the early full release of the Security. Section Three. Based on property tax rates and valuations set for the 2018-2019 fiscal year, the City Finance Director has determined that the City portion of abated taxes is less than the cost of the flood mitigation improvements and, moreover, that the City will have no claim available to it against the Security under the Agreement for either a"Disqualifying Condition" or a"Clawback Payment." Section Four. Notwithstanding the limitations of the Agreement on releasing the Security in full before June 30, 2019, the City and Decry are in agreement that the required flood mitigation improvements are completed, that the City has no claim against the Security, and that the Security should be now be released in full. Section Five. The Security in the amount of $300,000 given to secure performance of Decry under the Agreement is hereby released, and the City Clerk is authorized to return it to Decry. ADOPTED THIS 26`'day of June, 2018. Diane R. Voss, City Clerk John . Haila, Mayor Introduced by: Beatty-Hansen Seconded by: Betcher Voting aye: Beatty-Hansen, Betcher, Gartin, Martin,Nelson Voting nay: None Absent: Corrieri Resolution declared adopted and signed by the Mayor this 26' day of June, 2018.