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HomeMy WebLinkAbout2001-014-01.08.2001 This Resolution prepared by Nancy Eckert, City Clerk, 715 Mulberry Street, Waterloo, Iowa. RESOLUTION NO. 2001-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, APPROVING APPLICATION OF DEERE & COMPANY FOR THE PURPOSE OF RECEIVING BENEFITS UNDER 1999 IOWA CODE SECTIONS 15. 326- 15.337 AS AMENDED BY 1999 IOWA ACTS, CHAPTER 172 AND 2000 IOWA ACTS, HOUSE FILE 2540, AND ALL ELIGIBLE BENEFITS UNDER THIS ACT THAT BECOME EFFECTIVE AS OF JANUARY 8, 2001, FOR THE IMPROVEMENTS IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. WHEREAS, the City of Waterloo, Iowa, has received a request by Deere & company to approve and submit an application to the State of Iowa under 1999 Iowa Code Sections 15.326-15. 337 known as the New Jobs and Income Program, as amended by 1999 Iowa Acts, Chapter 172 and 2000 Iowa Acts, House File 2540, and all benefits under this act that become effective as of January 8, 2001, and WHEREAS, 1999 Iowa Code Sections 15.326-15.337 as amended by 1999 Iowa Acts, Chapter 172 and 2000 Iowa Acts, House File 2540 and all eligible benefits under this act become effective as January 8, 2001, was established to promote economic development in the State of Iowa, and WHEREAS, the City Council supports activities which promote and facilitate economic development within the City, and WHEREAS, one of the benefits provided under the New Jobs and Income Program is the commitment by a city to exempt from taxation all or a portion of the actual value added by improvements to real property directly related to new job creation by the location of an eligible business under the program with those new jobs being directly involved in the operations of the eligible business at that location, and WHEREAS, contingent upon approval by the Iowa Department of Economic Development of Deere & Company as an eligible business and entry into an agreement with the Iowa Department of Economic Development pursuant to Iowa Code Section 15.330, the City of Waterloo will allow for a ten (10) year schedule of exemption from property taxes on the value added by improvements to the additional new facilities as follows : Year 1 through Year 10: a one dollar ($1 . 00) per year exemption of actual value added by improvements from the time the property is first assessed, at each site within the economic development area where improvements have been made to real property. WHEREAS, Deere & Company estimates that this project will involve an initial capital investment of at least $130 million, to be made over the next five (5) years, and WHEREAS, the City of Waterloo desires to declare the following site as an "economic development area" subject to designation by the Iowa Department of Economic Development as an "economic development area" pursuant to 1999 Iowa Code Sections 15.326-15.337 as amended by 1999 Iowa Acts, Chapter 172 and 2000 Iowa Acts, House File 2540: Resolution No. 2001-14 Page 2 The John Deere Waterloo Works Westfield Avenue Site and John Deere Waterloo Works Foundry are located on approximately 290 acres of land just to the west of downtown in the City of Waterloo, Iowa. The property boundaries are defined by familiar landmarks as being between Westfield Avenue on the South and River Road on the north. Westfield Avenue and River Road curve to intersect with each other to the east and west-end of the property. Black Hawk Creek runs south to north through the center of the property and is owned by the City of Waterloo. The John Deere Product Engineering Center is located on approximately 796 acres of land lying both in the City of Waterloo and the City of Cedar Falls, Iowa. The property boundaries are defined by familiar landmarks of Ridgeway Avenue to the south and Viking Road to the north and by John Deere Road to the east and a parallel boundary approximately 1 mile to the west of John Deere Road. The John Deere Product Engineering center also owns a small piece of property defined by familiar landmarks of Ridgeway Avenue on the north and relocated Highway 20 on the south and DeWitt Road on the west. This is part of the 796 acres . The John Deere Waterloo Works Donald Street Site is located on approximately 1, 260 acres of land on the northeast edge of the City of Waterloo, Iowa. The property boundaries are defined by familiar landmarks as North Elk Run Road on the east and a parallel boundary to Elk Run Road approximately 2 miles to the west, and then by Newell Street on the south and East Donald Street on the north; and, WHEREAS, Deere & Company has indicated they will : 1) Provide coverage options where they will pay at least 80 percent of the health and dental insurance plans for full-time employees at the facility. 2) Pay a median starting wage of at least $13 . 19 per hour. 3) Create 87 jobs within five years . 4) Offer a pension/retirement plan (401K-type) to its full-time employees. 5) Produce high value-added metal products in the agricultural equipment industry. 6) Have a productivity and safety improvement program in place. 7) Will make a capital investment of more than $132 million which includes construction of a new building of approximately 400, 000 square feet. WHEREAS, the City of Waterloo has determined that the Deere & Company' s starting median wage rate of at least $13. 19 combined with higher wage rates has exceeded the intent of the 1999 Iowa Code Sections 15.326-15. 337 as amended by 1999 Iowa Acts, Chapter 172 and 2000 Iowa Acts, House File 2540 and all eligible benefits under this act. Resolution No . 2001-14 Page 3 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA: a) The following described real estate is declared to be an economic development area: The John Deere Waterloo Works Westfield Avenue Site and John Deere Waterloo Works Foundry are located on approximately 290 acres of land just to the west of downtown in the City of Waterloo, Iowa. The property boundaries are defined by familiar landmarks as being between Westfield Avenue on the South and River Road on the north. Westfield Avenue and River Road curve to intersect with each other to the east and west-end of the property. Black Hawk Creek runs south to north through the center of the property and is owned by the City of Waterloo. The John Deere Product Engineering Center is located on approximately 796 acres of land lying both in the City of Waterloo and the City of Cedar Falls, Iowa. The property boundaries are defined by familiar landmarks of Ridgeway Avenue to the south and Viking Road to the north and by John Deere Road to the east and a parallel boundary approximately 1 mile to the west of John Deere Road. The John Deere Product Engineering center also owns a small piece of property defined by familiar landmarks of Ridgeway Avenue on the north and relocated Highway 20 on the south and DeWitt Road on the west. This is part of the 796 acres. The John Deere Waterloo Works Donald Street Site is located on approximately 1, 260 acres of land on the northeast edge of the City of Waterloo, Iowa. The property boundaries are defined by familiar landmarks as North Elk Run Road on the east and a parallel boundary to Elk Run Road approximately 2 miles to the west, and then by Newell Street on the south and East Donald Street on the north. b) That the 1999 Iowa Code Sections 15.326-15. 337 as amended by 1999 Iowa Acts, Chapter 172 and 2000 Iowa Acts, House File 2540 and all eligible benefits under this act that become effective as of January 8, 2001 for Deere & Company be approved. c) That the exemption benefits described above for Deere & Company be approved subject to the agreement and approval of the Iowa Department of Economic Development. PASSED AND ADOPTED this 8th day of January, 2001 . John ff, Mayor ATTEST: Nancy Eckert City Clerk