Resolutions-2025-085

Tiffin 51 1436989. /Dev Ec Grant RESOLUTION NO. 2025- 085 Resolution Authorizing Economic Development Grant Agreement with Honey Lane Development, LLC and. Authorizing Internal Advance for Funding of Economic Development Grant Thereunder 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, 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 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 proposed to undertake an urban renewal project in the Urban Renewal Area consisting of funding of an economic development grant ( the " Grant") to Honey Lane Development, LLC (" Honey Lane") in connection with construction by Honey Lane of certain public infrastructure improvements necessary to support commercial development ( 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 $125, 000;and NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of Tiffin, Iowa, as follows: Section 1. It is hereby directed that exceed One Hundred Twenty - an amount not to Five Thousand Dollars ($ 000) 125, s General Fund in ( " Advance") be advanced from the City' the order to fund the Grant. The Advance shall be repaid to the General Fund, without interest, out of future incremental property tax revenues received into the Tax Increment Fund. It is intended that the Advance repaid to the General Fund in one or more shall be installments by no later than June 1, 2028, 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. 3- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA 448611 4919- 2559-