FY 17 Annual Report

Special Revenue Funds

2017

CITY OF SPENCER, IOWA

TAX INCREMENT FINANCING

CHL - Spencer Ag Center

The City entered into a Development Agreement with CHL, LLC on March 14, 2016. Pursuant to the Development Agreement, the City will rebate a maximum amount of $500,000 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 $500,000 have been made. The project covered by the Development Agreement consists of the construction of a new warehousing and retail facilites for use in its business operations. The Company agrees to invest not less than $1,800,000 into capital improvements, including construction work and equipment acquisition. 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 $1,200,000 as of Januay 1, 2017. Each payment shall be subject to an annual appropriation by the City Council.

William J. Muller Revocable Trust

The City entered into a Development Agreement with the William J. Muller Revocable Trust on March 14, 2016. Pursuant to the Development Agreement, the City will rebate a maximum amount of $150,000 in property taxes over a seven year period beginning December 1, 2018 and continuing through June 1, 2025, or until such earlier date upon which total payments equal to $150,000 have been made. The project covered by the Development Agreement consists of the demolition of existing buildings and site prparation and development of new commercial facilites. The Company agrees to invest not less than $700,000 into capital improvements, including construction work and equipment acquisition. Each payment shall be subject to an annual appropriation by the City Council.

SPECIAL REVENUE