HomeMy WebLinkAbout~Master - Development Agreement with Barilla America, Inc. RESOLUTION NO. 18-577
RESOLUTION SETTING DATE OF PUBLIC HEARING ON DEVELOPMENT
AGREEMENT WITH BARILLA AMERICA, INC.
FOR THE CITY OF AMES
WHEREAS, in February 2017, the City Council approved proceeding with economic
development assistance for the expansion of Barilla manufacturing facilities in Ames, as a local
match for Iowa Economic Development Authority(IEDA) incentives; and,
WHEREAS,in July 2017,the City Council approved the establishment of the Barilla Urban
Renewal Area and Tax Increment District to provide for the local match in the form of a rebate of
incremental taxes; and,
WHEREAS, the project includes: 1) a building expansion of 71,374 sq. ft. to house two
additional processing lines and associated packaging/feeding equipment,2)a rail yard expansion to
accommodate a larger number of train cards, and 3) six new silos to store wheat; and,
WHEREAS,the total investment in this proj ect is estimated to be approximately$62 million,
and when completed,the assessed value of the expansion project is estimated to be$16,320,000 and
add 41 new jobs at the Ames site; and,
WHEREAS, the Iowa Economic Development incentive package totals $1,591,000,
consisting of. 1) $375,000 in the form of a Forgivable Loan if the 41 jobs are created in a timely
manner, 2) $400,000 in Investment Tax Credits, and 3) $816,000 in State Sales Tax Credits; and,
WHEREAS,the City local match consists of a rebate of incremental propertytaxes generated
by the new valuation for the facility expansion for a period of ten years or a total of$3,000,000,
whichever comes first, and in return, the company will agree to a minimum assessment of
$16,320,000 for the expanded facility and a requirement for job creation to continue to receive the
full rebate.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that a public hearing will be held at the November 13,2018 City Council meeting on a Development
Agreement with Barilla America, Inc, with tax increment rebate incentives in an amount not to
exceed$3,000,000 and project development requirements.
ADOPTED THIS 23rd day of October, 2018.
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Diane R. Voss, City Clerk John . Haila, Mayor
Introduced by: Betcher
Seconded by: Corrieri
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Martin,Nelson
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 23`d day of October, 2018.