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HomeMy WebLinkAbout2001-667-12.10.2001 This Resolution prepared by Nancy Eckert, City Clerk, 715 Mulberry Street, Waterloo, Iowa. RESOLUTION NO. 2001-667 AMENDED RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, APPROVING APPLICATION OF CONAGRA GROCERY PRODUCTS COMPANY FORMALLY HUNT-WESSON, INC. FOR THE PURPOSE OF RECEIVING BENEFITS UNDER THE NEW JOBS AND INCOME PROGRAM, AND ALL ELIGIBLE BENEFITS UNDER THIS ACT FOR THE IMPROVEMENTS IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. WHEREAS, the City of Waterloo, Iowa has received a request by ConAgra Grocery Products Company to approve and submit an amendment of City Resolution No. 2000-508 to the State of Iowa (New Jobs and Income Program) , 1997 Iowa Code 15 . 326-15. 337, collectively referred to as the "Act", and WHEREAS, the "Act" was established to promote economic development in the State of Iowa, and WHEREAS, the City Council supports activities which promote and facilitate economic development with the City, and WHEREAS, the City of Waterloo has a certified Community Builder Plan on file with the Iowa Department of Economic Development under Section 15 . 308 of the State Code of Iowa, 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 the 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 ConAgra Grocery Products Company as an eligible business and entry into an agreement with the Iowa Department of Economic Development pursuant to 1997 Iowa Code Section 15 . 332, the City of Waterloo will allow for a three (3) Phase, twenty (20) year schedule of abatement of all local real and personal property taxes on the value added by improvements to the Project for each Phase of the Project during the term of the NJIP Agreement, as follows: Phase 1 - Phase I of the Project is defined as the initial construction of the original manufacturing complex consistent of between $25-$54 million of initial investment (including without limitation of the building, grounds, machinery, engineering, office equipment and supplies) during the period of time following commencement by Business of construction of and investment in the Project until (4 ) years after the first full year upon which tax assessment is based solely on the completed value of the Project . Resolution No. 2001-667 Page 2 For investment during the first Phase of the Project, credit for tax abatement will be based upon the actual accumulated value added by the improvements in each year of Phase I and will be annually abated as follows: 80 percent in the first seven (7 ) years of Phase I . 70 percent in the eighth (8 ) year of Phase I . 60 percent in the ninth ( 9) and tenth (10) years of Phase I . 50 percent in the eleventh (11) year of phase I 40 percent in the twelfth (12) and thirteenth (13) year of Phase 1 . 30 percent in the fourteenth (14) and fifteenth (15) years of Phase I. 25 percent in the sixteenth (16) and seventeenth ( 17 ) years of Phase I . 20 percent in the eighteenth (18 ) and nineteenth (19) years of Phase I 15 percent in the twentieth (20) year of Phase 1 OPTIONAL PHASE II - Phase II of the Project is defined as the construction of an additional processing line and building addition within the Project involving an approximate $15 million to $45 million anticipated additional investment, with actual construction of and investment in improvements to begin either the third (3rd) through seventh (7th) year following execution of the NJIP Agreement . The following Phase II tax abatement schedule shall begin the first year that the taxable property associated with Phase II investment is placed in service or appears on the tax roll, whichever is earlier. For investment during the second Phase of the Project, credit for tax abatement will be based upon the actual accumulated value added by improvements in each year of Phase II and will be annually abated as follows: 90 percent in the first eight (8 ) years of Phase II . 80 percent in the ninth ( 9) and tenth (10) years of phase II . 70 percent in the eleventh (11) , twelfth (12) and thirteenth ( 13) years of Phase II . 60 percent in the fourteenth ( 14 ) , fifteenth (15) and sixteenth (16) years of Phase II . 50 percent in the seventeenth (17) , eighteenth (18) , nineteenth (19) and twentieth (20) years of Phase II . OPTIONAL PHASE III - Phase III of the Project is defined as the construction of an additional processing line and building addition within the Project involving an approximate $15 million to $45 million anticipated additional investment, with actual construction and investment in improvements to begin either the fifth (5th) through twelfth (12th) year following execution of the NJIP Agreement . The following Phase III tax abatement schedule shall begin the first year that the taxable property associated with Phase III investment is placed in service or appears on the tax roll, whichever is earlier. For investment during the third Phase of the Project, credit for tax abatement will be based upon the actual accumulated value added by improvements in each year of Phase III and will be annually abated as follows: Resolution No. 2001-667 Page 3 100 percent in the first (1) year of Phase III . 90 percent in the second (2) , third (3) , fourth (4 ) , fifth (5) , sixth (6) , seventh (7) , eighth (8) , ninth (9) , and tenth (10) years of Phase III . 80 percent of the eleventh (11) , twelfth (12) , thirteenth (13) , fourteenth (14 ) , and fifteenth (15) years of Phase III . 70 percent in the sixteenth (16) , seventeenth (17 ) , eighteenth (18) , nineteenth (19) and twentieth (20) years of Phase III . WHEREAS, the City of Waterloo desire 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 the "Act": WHEREAS, ConAgra Grocery Products Company has indicated they will : 1 . Provide coverage options where they will pay at least 80% of the health and dental insurance plans for all full-time employees at the facility. 2 . Pay a median starting wage of $11 . 88/hr. for full-time equivalent non-managerial production jobs. 3 . Create at least 50 jobs within the first five years from the date the plant becomes fully operational through Phase I construction; provided Phase II is implemented, at least 100 jobs in total combining jobs created in both Phase I and Phase II when Phase II is complete; provided Phase III is implemented, at least 150 jobs in total combining jobs created in Phase I, II, III when Phase III is complete 4 . Offer a retirement plan comprised of a 401K Plan to its full-time employees . 5 . Produce high quality value-added agricultural products in the food industry. 6. Have a productivity and safety improvement plan in place. 7 . Construct a food manufacturing/processing plant of sufficient size to accomplish the foregoing objective. 8 . The business shall make a capital investment of $24 million - $54 million during Phase I of the Project. If implemented the investment for phase II will be an additional $15-$45 million. If Phase III is implemented the investment level will be an additional $15-$45 million. WHEREAS, the City of Waterloo has determined that the ConAgra Grocery Products Company' s starting non-management production wage rate of at least $11 . 88/hr. combined with the higher wage rate for the non-production management positions has exceeded the intent of the "Act", and WHEREAS, it is the City' s intention to exempt from taxation the value added by improvements to real property as a result of the project . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA: a. The following described real estate is declared to be an economic development area: A a.t i4r jl 2001-667 C H Cr CMG tTlt�..7 > r�• d, � C F 1 t `) 4D 171 rrltr. s idPct America Park Plat 1 Lot 10, all in the City of la0-0 OP Black Hawk County, Iowa. H til dH H H OnC � •�? td amended New Jobs and Income Program application O © for ConAgra Grocery Products Company be approved. so -' . ,T ia:t the abatement benefits described above for ConAgra • 71f; }Grocery Products Company, as amended, be approved subject o ctiitQ tthe. agreement and approval of the Iowa Department of �' F? 4--E omi-c Development . f H (x PASSED AO ADOPTED this 10th day of December, 2001 . o 7 ;> 6 . FiC7 00 O 12)tri Cr' SGt�: C) 1-1 CTI1 i John . R ff, Mayor ATTEST: Nancy E rt, City Clerk