HomeMy WebLinkAbout2000-509-09.11.2000 This Resolution prepared by Nancy Eckert, City Clerk, 715 Mulberry
Street, Waterloo, Iowa.
RESOLUTION NO. 2000-508
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 THAT BECOME EFFECTIVE AS OF JULY 1, 1996,
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 amendment of
City Resolution No. 1997-155 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 within 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 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 consisting of
between $34-63 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 four (4) years after the first full year upon which
tax assessment is based solely on the completed value of the
Project.
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 .
Resolution No. 2000-508
Page 2
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
I .
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 I .
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
of 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:
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":
Resolution No. 2000-508
Page 3
WHEREAS, ConAgra Grocery Products Company has indicated they
will:
1 . Provide coverage options where they will pay at least 800 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 72 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 122
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 172 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 rates 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:
b. That the amended New Jobs and Income Program application
for ConAgra Grocery Products Company be approved.
c. That the abatement benefits described above for ConAgra
Grocery Products Company, as amended, be approved subject to the
agreement and approval of the Iowa Department of Economic
Development.
AMENDMENT PASSED AND ADOPTED this 11th day of September, 2000.
4,4101 ,st
John R. R.off, Mayor '
ATTEST:
1;aQ
Nancy Ec prt, City Clerk
This Resolution prepared by Nancy Eckert, City Clerk, 715 Mulberry
Street, Waterloo, Iowa.
RESOLUTION NO. 2000-509
RESOLUTION AUTHORIZING MAIN STREET WATERLOO TO
EXTEND LOAN AGREEMENT WITH COMMUNITY NATIONAL
BANK.
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA,
that the request of Main Street Waterloo to extend loan agreement
with Community National Bank to the amount of $900, 000. 00 for the
development of property located at 210-214 East 4th Street, be and
the same is hereby approved.
BE IT FURTHER RESOLVED, that this is a short-term loan which
will be guaranteed by Gilmore & Doyle, with $260, 000. 00 to be
repaid by an EDA grant, and the loan does not obligate the City of
Waterloo.
PASSED AND ADOPTED this 11th day of September, 2000 .
John R. Ro ff, Mayor
ATTEST:
Nancy Ecker0 City Clerk