SPAL Automotive, Srl., headquartered in Correggio, Italy, is a global market leader in the design, manufacture, sales and distribution of high performance axial fans, centrifugal blowers and fluid pumps for cars, buses, off-road vehicles, construction machines, ag equipment, trucks, powersports and industrial equipment. SPAL's U.S. division, SPAL-USA, Inc. is proposing construction of an approximately $25 million, 215,000 square foot U.S. headquarters and production facility on 25 acres located at the northeast corner of SE 77th Street and SE Convenience Blvd. in the Crosswinds Business Park on the City's southeast side.  SPAL currently imports products manufactured at their Italian facility to their 40,000 square foot distribution center in Ankeny for distribution to Spal's U.S. customers.  This project includes manufacturing and assembly of their fans and blowers for their North American customers. The total project cost is expected to exceed $35 million, which includes approximately 30,000 square feet of office space, injection molding equipment and other technology.

Staff has negotiated a development agreement with SPAL-USA, Inc. for five (5) years of property tax rebates equal to 100% of the TIF eligible amount of property taxes paid on this new facility.  The maximum amount of TIF rebates over the five year term will not exceed $1,200,000.  This investment is also expected to qualify for industrial property tax exemption. The terms of this agreement requires construction to commence within twelve months of approval of this agreement and requires SPAL to create no less than 39 net new jobs at specific wages outlined in the development agreement.  Standard claw back provisions for all 39 new positions are included in the agreement. Construction is expected to begin this fall and be completed by early 2025. 

Upon project completion, this project is expected to increase the taxable valuation of the property by approximately $23 million.  The terms of the proposed development agreement include 5 years of TIF rebates equal to 100% of the TIF eligible amount on the new valuation.  TIF payments will not exceed $1,200,000 over the five year term of the agreement.  During this time, approximately $955,000 of net new tax revenues will be collected from the project.  After the terms of the development agreement have been satisfied and the project is no longer eligible for industrial property tax exemption, the total amount of new tax revenues (to all taxing entities) generated as a result of this project will be approximately $720,000 annually.

Action: Consider motion to&nbsp;adopt <strong>RESOLUTION</strong> approving&nbsp;a development agreement between the City of Ankeny and SPAL-USA, Inc.