FY 17 Annual Report

Special Revenue Funds

2017

CITY OF SPENCER, IOWA

TAX INCREMENT FINANCING

D & T Office, LLC

The City entered into a Development Agreement with D & T Office, LLC on December 16th, 2013. Pursuant to the Development Agreement, the City will rebate a maximum amount of $160,000 in property taxes over a ten year period beginning December 1, 2016 and continuing through June 1, 2026, or until such earlier date upon which total payments equal to $160,000 have been made. The project covered by the Development Agreement consists of the construction of a new commercial office building with 4,500 square feet of office space for use in operation of the company's plumbing, heating and fire protection business. The Company agrees to invest not less than $500,000 into capital improvements, including construction work and equipment acquisition. Each payment shall be subject to an annual appropriation by the City Council.

SHINE BROTHERS - R&D CENTER

The City entered into a Development Agreement with Shine Brothers on December 16th, 2013. Pursuant to the Development Agreement, the City will rebate a maximum amount of $165,000 in property taxes over a ten year period beginning December 1, 2016 and continuing through June 1, 2026, or until such earlier date upon which total payments equal to $165,000 have been made. The project covered by the Development Agreement consists of the construction of a research and development center and the installation of equipment therein for use in the company's business operations. The Company agrees to invest not less than $500,000 into capital improvements for the project, including construction work and equipment acquisition. Each payment shall be subject to an annual appropriation by the City Council. In FY17, the City rebated $8,064.20 in property taxes paid by Shine Brothers. As of June 30, 2017, the City has rebated a total of $10,527.36 and has a remaining maximum obligation of $319,472.64 until the Development Agreement has been satisfied.

Dollar Tree

The City entered into a Development Agreement with Spencer Development Group, LLC on May 4, 2015. Pursuant to the Development Agreement, the City will rebate a maximum amount of $220,000 in property taxes over a ten year period beginning December 1, 2017 and continuing through June 1, 2026, or until such earlier date upon which total payments equal to $220,000 have been made. The project covered by the Development Agreement consists of the construction of a new commercial retail space for a Dollar Tree store. The Company agrees to invest not less than $900,000 into capital improvements, including construction work and equipment acquisition. Each payment shall be subject to an annual appropriation by the City Council.

SPECIAL REVENUE