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HomeMy WebLinkAbout~Master - Development Agreement and Minimum Assessment Agreement with Barilla America, Inc ' Ames419370-59/Dev.Agmt Barilla Hold Hrg- RESOLUTION 18-620 Approving Development Agreement and Minimum Assessment Agreement with Barilla America, Inc., Authorizing Economic .Development Payments and Pledging Certain Tax Increment Revenues to the Payment of the Agreement WHEREAS, the City of Ames, Iowa (the "City"), pursuant to and in strict compliance with all laws applicable to the City, and in particular the provisions of Chapter 403 of the Code of Iowa, has adopted an Urban Renewal Plan for the Barilla Urban Renewal Area (the "Urban Renewal Area"); and WHEREAS, this Council has adopted an ordinance providing for the division of taxes levied on taxable property in the Urban Renewal Area pursuant to Section 403.19 of the Code of Iowa and establishing the fund referred to in Subsection 2 of Section 403.19 of the Code of Iowa (the "Urban Renewal Tax Revenue Fund"), which fund and the portion of taxes referred to in that subsection may be irrevocably pledged by the City for the payment of the principal and interest on indebtedness incurred under the authority of Section 403.9 of the Code of Iowa to finance or refinance in whole or in part projects in the Urban Renewal Area; and WHEREAS, a development agreement and minimum assessment agreement between the City and Barilla America, Inc. (the "Developer") have been prepared (the "Agreements"), pursuant to which the Developer would construct a facility for food production and warehousing in the Urban Renewal Area (the `Barilla Project") and the City would provide economic development payments in a total amount not exceeding $3,000,000; and WHEREAS, this City Council, pursuant to Section 403.9 of the Code of Iowa, has published notice, has held a public hearing on the Agreements, and has otherwise complied with statutory requirements for the approval of the Agreements; and WHEREAS, Chapter 15A of the Code of Iowa ("Chapter 15A") declares that economic development is a public purpose for which a City may provide grants, loans, tax incentives, guarantees and other financial assistance to or for the benefit of private persons; and WHEREAS, Chapter 15A requires that before public funds are used for grants, loans,tax incentives or other financial assistance, a City Council must determine that a public purpose will reasonably be accomplished by the spending or use of those funds; and WHEREAS, Chapter 15A requires that in determining whether funds should be spent, a City Council must consider any or all of a series of factors; NOW, THEREFORE, It Is Resolved by the City Council of the City of Ames, Iowa, as follows: Section 1. Pursuant to the factors listed in Chapter 15A, the Council hereby finds that: -3- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames419370-59/Dev.Agmt Barilla Hold Hrg- (a) The Barilla Project will add diversity and generate new opportunities for the Ames and Iowa economies; (b) The Barilla Project will generate public gains and benefits, particularly in the creation of new jobs and opportunities for commercial activity, which are warranted in comparison to the amount of the proposed property tax incentives. Section 2. The Council further finds that a public purpose will reasonably be accomplished by entering into the Agreements and providing the economic development payments to the Developer. Section 3. The Agreements are hereby approved and the Mayor and City Clerk are hereby authorized and directed to execute and deliver the Agreements on behalf of the City, in substantially the form and content in which the Agreements have been presented to this City Council, and such officers are also authorized to make such changes, modifications, additions or deletions as they, with the advice of the city attorney and bond counsel, may believe to be necessary, and to take such actions as may be necessary to carry out the provisions of the Agreements. Section 4. As provided and required by Chapter 403 of the Code of Iowa, the City's obligations under the Agreements shall be payable solely from the Urban Renewal Tax Revenue Fund for the Barilla Urban Renewal Area that is established in this Resolution. Section 5. The City hereby pledges to the payment of the Agreements the Urban Renewal Tax Revenue Fund and the taxes referred to in Subsection 2 of Section 403.19 of the Code of Iowa to be paid into such Fund. Section 6. After its adoption, a copy of this resolution shall be filed in the office of the County Auditor of Story County to evidence the continuing pledging of the Urban Renewal Tax Revenue Fund, and, pursuant to the direction of Section 403.19 of the Code of Iowa, the Auditor shall allocate the taxes in accordance therewith and in accordance with the tax allocation ordinance referred to in the preamble hereof. Section 7. All resolutions or parts thereof in conflict herewith are hereby repealed. -4- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames419370-59/13ev.Agmt Barilla Hold Hrg- Passed and approved this 13°i day of November, 2018. Mayor Attest: City Clerk -5- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA