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| ORIGINATING DEPARTMENT: |
COUNCIL GOAL: |
| Economic Development |
Ankeny as a Successful Business Center |
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ACTION REQUESTED:
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| Resolution |
| LEGAL: |
| No Review Required |
| SUBJECT: |
| Consider motion to adopt RESOLUTION authorizing the City of Ankeny to enter into a contract with the Iowa Economic Development Authority and Kreg Enterprises, Inc. |
| EXECUTIVE SUMMARY: |
| Kreg Enterprises, Inc., has secured State of Iowa sales, service and use tax refund totaling $738,000 from IEDA as part of their approx $34 million investment in Ankeny. A contract between IEDA, Kreg Enterprises, Inc., and the City is required for Kreg to receive this incentive. The City's only obligations as a party to this contract are to notify IEDA if we become aware of changes to Kreg's expansion plans and to provide Kreg the incentives outlined in the City's development agreement with Kreg. The full contract is available for review in the City Clerk's office. |
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FISCAL IMPACT:
Yes |
| This project is growing the tax base in Ankeny; therefore a local match is required for Kreg Enterprises, Inc., to receive incentives from IEDA. Through the previously approved development agreement between the City and Kreg, the City has committed to providing Kreg with TIF rebates valued at approx. $1.1 million over five years. |
| CITY MANAGER'S RECOMMENDATIONS: |
| To approve the resolution to enter into a contract with Kreg Enterprises, Inc., and the Iowa Economic Development Authority. |
| PREVIOUS COUNCIL/COMMISSION/BOARD ACTION(S): |
| The City Council approved Kreg Enterprises, Inc.'s application for financial assistance through IEDA's High Quality Jobs Program and approved a development agreement with Kreg at its December 17, 2018 meeting. |
| PUBLIC OUTREACH EFFORTS: |
| A public hearing on the development agreement was held December 17, 2018. |
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