FY 17 Annual Report

Special Revenue Funds

2016

CITY OF SPENCER, IOWA

TAX INCREMENT FINANCING

Shine Brothers - Metal Recycling

The City entered into a Development Agreement with Shine Brothers Corp. on October 19, 2015. Pursuant to the Development Agreement, the City will rebate a maximum amount of $350,000 in property taxes over a ten year period beginning December 1, 2017 and continuing through June 1, 2027, or until such earlier date upon which total payments equal to $350,000 have been made. The Company agrees to invest not less than $1,750,000 into capital improvements, including construction work and equipment acquisition. The proejct to be undertaken as part of this Development Agreement includes the construction of four additional buildings for use in the Company's metal recycling business. The Company further agrees to execute an assessment agreement establishing a minimum addition of assessed valuation for the Property above and beyond the Base Valuation in the amount of $1,275,150 as of Januay 1, 2016. Each payment shall be subject to an annual appropriation by the City Council.

Merrill Company

The City entered into a Development Agreement with Merrill Company on November 2, 2015. Pursuant to the Development Agreement, the City will rebate a maximum amount of $1,080,600 in property taxes over a ten year period beginning December 1, 2018 and continuing through June 1, 2028, or until such earlier date upon which total payments equal to $1,080,600 have been made. The Company agrees to invest not less than $4,000,000 into capital improvements, including construction work and equipment acquisition. The project to be undertaken as part of this Development Agreement includes the construction of new warehousing and office space facilites. Each payment shall be subject to an annual appropriation by the City Council.

Quality Refrigerated Services

The City entered into a Development Agreement with Quality Refrigerated Services on November 2, 2015. Pursuant to the Development Agreement, the City will rebate a maximum amount of $1,614,600 in property taxes over a thirteen year period beginning December 1, 2017 and continuing through June 1, 2030, or until such earlier date upon which total payments equal to $1,614,600 have been made. The Company agrees to invest not less than $4,600,000 into capital improvements, including construction work and equipment acquisition. The project to be undertaken as part of this Development Agreement includes the construction of new warehousing facilites. Each payment shall be subject to an annual appropriation by the City Council.

SPECIAL REVENUE