HomeMy WebLinkAbout2020-431-06.15.2020Prepared by LeAnn M. Even, Deputy City Clerk, City of Waterloo, 715 Mulberry Street,
Waterloo, IA 50703, (319) 291-4323.
RESOLUTION NO. 2020-431
RESOLUTION APPROVING THE USE OF DOWNTOWN
URBAN RENEWAL AREA TAX INCREMENT FINANCING
DISTRICT FUNDS, IN AN AMOUNT NOT TO EXCEED
$450,000, FOR A GRANT TO MAKENDA, LLC AND ASSIGNS
FOR THE ACQUISITION AND REDEVELOPMENT OF THE
FORMER RAMADA HOTEL PROPERTY.
WHEREAS, the City of Waterloo, Iowa has established the Downtown Urban Renewal
Area (the "Urban Renewal Area") and is undertaking certain projects within the Urban Renewal
Area, including the acquisition of real property and economic development grants to developers
for future development of the Downtown Urban Renewal Area; and
WHEREAS, in furtherance thereof the City Council has heretofore, by Resolution 2019-
788 adopted on October 14, 2019, approved and authorized execution of a development
agreement with Makenda, LLC, including economic development grants of $150,000 to
Makenda LLC and $300,000 to Waterloo Hospitality LLC, a related company, for the
redevelopment of the Ramada Hotel located at 205 West 4th Street located in the Downtown
Urban Renewal Area (the "Project"); and
WHEREAS, in order to advance funds for the cost of the Project, it is necessary to make
certain findings under Chapter 403 of the Code of Iowa; and
WHEREAS, it is the intention of the City to certify the amount of funds so advanced,
together with interest, for reimbursement under Iowa Code Section 403.19; and
WHEREAS, the amount of funds to be advanced for the Project shall not exceed
$450,000, including administrative expenses.
NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of Waterloo,
Iowa, as follows:
Section 1. Pursuant to Ordinance No. 5249 there has been established the Downtown
Urban Renewal Area Tax Increment Revenue Fund (the Tax Increment Fund), into which all
incremental property tax revenues received from the Downtown Urban Renewal Area are
deposited. The Council finds the Project to be an Urban - 2 - Renewal Project as defined in Iowa
Code Chapter 403, and further approves an advance of City funds for said Project.
Section 2. It is hereby directed that amounts not to exceed $450,000 be advanced from
time to time from the Capital Improvements Fund in order to pay the costs of the Project. The
advance shall be treated as an internal loan from the Capital Improvements Fund and shall be
repaid to the Capital Improvements Fund from the Tax Increment Fund at the earliest
opportunity, without interest.
Section 3. The Chief Financial Officer and other City officials having responsibility for
the books and records of the City shall take such actions as are necessary to comply with this
Resolution, including but not limited to inclusion of these amounts in the budget, the advance
and transfer of funds for the Project, and certification for reimbursement under Iowa Code
Section 403.19.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
WATERLOO, IOWA, this this 15th day of June 2020.
Resolution No. 2020-431
Page 2
Quentin Hart
Quentin Hart, Mayor
ATTEST:
Kette# �e(c/cle
Kelley Felchle
City Clerk