Resolutions-2012-77

RESOLUTION NO 2012 - 77 AUTHORIZING INTERNAL ADVANCE FOR FUNDING ECONOMIC DEVELOPMENT GRANT TO PR BUILDERS, INC. /IPL DEVELOPMENT, INC. 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, Grants, 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, Grants 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; and WHEREAS, the City of Tiffin, Iowa ( the " City "), has previously established the Tiffin Urban Renewal Area ( the " Urban Renewal Area ") and has established the Tiffin Urban Renewal Area Tax Increment Revenue Fund ( the " Tax Increment Fund ") in connection therewith; and WHEREAS, the City has undertaken an urban renewal project consisting of funding an economic development Grant ( the " Grant ") to PR Builders, Inc. /IPL Development, Inc. ( the Company "). as an incentive in connection with the Company' s past and future commercial business activity in the Urban Renewal Area ( the " Project "); and WHEREAS, in order to make the City' s costs of funding the Grant eligible to be paid from future incremental property tax revenues, it is necessary to facilitate an internal advance of funds in the amount of $165, 731; and NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of Tiffin, Iowa, as follows: Section 1. It is hereby directed that an amount not to exceed One Hundred Sixty -Five Thousand, Seven Hundred and Thirty One Dollars ($ 165, 731) be advanced to the funding of the Grant from the City' s General Fund ( the " Advance "). The Advance shall be repaid to the General Fund, without interest, out of incremental property tax revenues received into the Tax Increment Fund. It is intended that the Advance, plus accrued interest thereon, shall be repaid by no later than June 1, 2014, provided however that repayment of the Advance is subject to the determination of future City Councils that there are incremental property tax revenues available for such purpose which have been allocated to or accrued in the Tax Increment Fund relative to the Advance, and the City Council reserves the right to appropriate funds, or to withhold such appropriation, at its discretion. Section 2. Pursuant to the factors listed in Chapter 15A, the City Council hereby finds that: