Agenda - 11/1/2012 - Special Meeting

November 1, 2012 — SPECIAL MEETING OF THE WOODBURY COUNTY BOARD OF SUPERVISORS
The Board of Supervisors met on Thursday, November 1, 2012 at 3:05 p.m. Board members present were Clausen, Monson, Smith, Tripp, and Boykin.  Staff members present were Karen James, Board Administrative Coordinator, Joshua Widman, Assistant County Attorney and Patrick F. Gill, Auditor/Clerk to the Board.
Meeting was called to order.
Motion by Clausen second by Monson to approve and authorize the Chairman to sign a Resolution Approving the Formalization of a Development Agreement in Connection with Project X.  Carried 5-0.

RESOLUTION # 10,983
FORMALIZATION OF A DEVELOPMENT
AGREEMENT IN CONNECTION WITH PROJECT X

WHEREAS, it is a governmental function of Woodbury County to facilitate economic development in Woodbury County, and within it purview to consider offering economic development incentives that are fair to both the citizens of Woodbury County and to a prospective business opportunity;

WHEREAS, Woodbury County is a duly recognized political subdivision of the State of Iowa acting under the laws of the State of Iowa; and
WHEREAS, the Board of Supervisors is the duly elected governing body of Woodbury County, Iowa; and
WHEREAS, Woodbury County was contacted by the Siouxland Chamber of Commerce regarding a planned substantial expansion of CF Industries, Inc. (hereinafter referred to as “Company”), and was requested to propose a package of economic development incentives to said Company that would be fair both to the citizens of Woodbury County and to said Company;
WHEREAS, the Company has requested substantial assistance from the State of Iowa, and, state law authorizes the County to grant an exemption from property taxation for up to 20 years for the amount of new taxable valuation that is added by reason of the development;
WHEREAS, the Board of Supervisors have been informed by Company that it plans on making a $1.7 Billion investment in an unincorporated portion of Woodbury County, with 35% of said total investment ($595 Million) being new assessable tax value to Woodbury County; and
WHEREAS, the Board of Supervisors requested the Woodbury County Rural Economic Development to make a recommendation for a fair and acceptable incentive package to said Company in order to facilitate the initiation of the said expansion opportunity within the unincorporated portion of Woodbury County; and
WHEREAS, the Board of Supervisors hereby desire to formalize, through a written Development Agreement, the terms of a proposed economic incentive development package, that will provide Woodbury County with an approximate $50 Million in new tax revenue over a 20-year period, as follows:
IT IS HEREBY RESOLVED by the Board of Supervisors of Woodbury County, Iowa, as follows:
1. Woodbury County hereby directs that a formal Development Agreement be drafted, which shall be presented, at a later date, to the Woodbury County Board of Supervisors for public hearing and vote thereon, that shall include a economic development incentive package with terms and conditions set forth below:

a. Total Company Investment shall be $1.7 Billion, with 35% (or $595 Million) being minimum taxable value;
b. Woodbury County to provide a 20-year tax abatement schedule, beginning with the 2016 assessment year, with 100% tax abatement related to the full minimum taxable value for that year, with a 4.4% reduction in the abatement percentage each year thereafter until the 21st year at which time the reduction equals 0%;
c. Company shall bear all costs associated with the installation of proposed rail infrastructure improvements;
d. Woodbury County will assume the $5 Million projected cost associated with the construction of an access road, conditioned upon Woodbury County successfully procuring a $4.2 Million RISE grant; and
e. County will return only its portion of the Natural Gas Replacement Tax over the 20-year term of the tax abatement schedule.

SO RESOLVED this 1st day of November 2012.
WOODBURY COUNTY BOARD OF SUPERVISORS
Copy filed.
Meeting Adjorned.