Resolutions-2018-081

RESOLUTION NO. 2018-081 Resolution Approving Disposition of Urban Renewal Property and Approving Minimum Assessment Agreement WHEREAS, the City of Tiffin, Iowa (the “City”) has previously established the Tiffin Urban Renewal Area (the “Urban Renewal Area”); and WHEREAS, one of the City’s objectives for the Urban Renewal Area is to promote the commercial development therein; and WHEREAS, the City is the owner of certain real property (the “Property”) more particularly described on Exhibit A hereto; and WHEREAS, the City intends to convey the Property to a purchaser under conditions that will further the City’s urban renewal objectives for the Urban Renewal Area; and WHEREAS, the City has entered into a certain Development Agreement with Fareway Stores, Inc. (the “Company”) which includes the acquisition and redevelopment (the “Project”) of the Property; and WHEREAS, pursuant to the Development Agreement, the City and the Company have agreed to enter into a minimum assessment agreement (the “Assessment Agreement”) with respect to the Property, and the Company will develop improvements thereon which will generate incremental property tax revenues in an amount equal to the City’s basis in the Property, as provided in Section 403.8(3) of the Code of Iowa, over a period of four tax years; 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; WHEREAS, it is now necessary to take action to approve the disposition of the Property to the Company and the Assessment Agreement; NOW, THEREFORE, Be It Resolved by the City Council of the City of Tiffin, Iowa, as follows: Section 1. The City Council hereby determines that the proposal of the Company represents the best interests of the City with respect to the development of the Property and the undertaking of the Project, and the proposal of the Company is hereby accepted and approved.