ANKENY CITY COUNCIL

City Council Agenda

May 1, 2023
5 : 30 PM
Mark Holm, Mayor
Bobbi Bentz, Mayor Pro tem
Council Members: Jeff Perry, Joe Ruddy, Todd Shafer, Kelly Stearns
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ORIGINATING DEPARTMENT: COUNCIL GOAL:
Economic Development Ensure Economic Vitality
ACTION REQUESTED:
Resolution
LEGAL:
No Review Required
SUBJECT:
Proposed Iowa Economic Development Authority High Quality Jobs Program Application for SPAL-USA, Inc.
EXECUTIVE SUMMARY:

SPAL - USA, Inc. is proposing to construct an approximately 215,000 square foot facility on 25 acres in the Crosswinds Business Park.  The proposed project includes office, manufacturing, warehouse and distribution space, which will allow SPAL, Inc. to begin manufacturing their high performance engine components in the United States.  SPAL has committed to creating 39 new jobs as a result of this project and is applying for incentives through the Iowa Economic Development Authority's High Quality Jobs Program.  The project is eligible for State of Iowa income tax credits, direct financial assistance and sales and use tax refund on construction materials.

 

IEDA requires local governments to sponsor applications from companies applying for High Quality Jobs incentives and to provide local financial support.  Cities are also signatories to the contract for awards between the company and IEDA.  This contract will be brought before the Council following IEDA approval, which is expected to be early summer.
FISCAL IMPACT: Yes
IEDA will consider providing tax credits, direct financial assistance and sales and use tax refund for this project at their May 12th Board meeting.  IEDA requires a local match for projects creating tax base and receiving state assistance.  The terms of the proposed development agreement between the City and SPAL will satisfy this match. City tax increment financing rebates will not exceed $1,200,000 over five years.
CITY MANAGER'S RECOMMENDATIONS:
To approve resolution as presented.
PREVIOUS COUNCIL/COMMISSION/BOARD ACTION(S):
A public hearing on the development agreement was set on April 17, 2023.
PUBLIC OUTREACH EFFORTS:
A public hearing on the development agreement will be held on May 1, 2023.
ACTION REQUESTED:

Action: Consider motion to adopt <strong>RESOLUTION</strong> of the City Council of the City of Ankeny, Iowa approving the application of SPAL-USA, Inc. to the Iowa Economic Development Authority High Quality Jobs Program.
ADDITIONAL INFORMATION:
Please send me a copy of the signed resolution and I will forward to IEDA following the meeting.  I will provide a signed IEDA HQJ application prior to the meeting for the Mayor's signature.  Please return the signed application to me and I will get to IEDA.
ATTACHMENTS:
Click to download
Spal USA HQJ Resolution