Minutes - 11/19/2021
NOVEMBER 19, 2021, SPECIAL MEETING OF THE WOODBURY COUNTY BOARD OF SUPERVISORS
The Board of Supervisors met on Friday, November 19, 2021 at 12:00 p.m. Board members present were Ung, De Witt, and Taylor by phone; Radig and Wright were absent. Staff members present were Melissa Thomas, Human Resources Director, Dennis Butler, Finance Director, and Michelle Skaff, Deputy Auditor/Clerk to the Board.
The meeting was called to order.
Chairman De Witt stated that an in person meeting with the majority of the Board members present was not possible due to one or more person traveling and others with employment obligations so electronic means are being used to obtain a majority for the meeting.
William Burrow, Sioux City, expressed concerns about Woodbury County’s support of the resolution.
Chris McGowan, Siouxland Chamber of Commerce, spoke in favor of Woodbury County’s support of the resolution.
Motion by De Witt second by Ung approve and authorize the Chairperson to sign a Resolution expressing intent to provide economic development support to Ag Processing Inc. Carried 3-0.
RESOLUTION EXPRESSING INTENT TO PROVIDE ECONOMIC DEVELOPMENT SUPPORT TO AG
WHEREAS, the Board of Supervisors of Woodbury County, Iowa (the “County”) by resolution previously established the Grow Woodbury County Urban Renewal Area (the “Urban Renewal Area”) and adopted an urban renewal plan (the “Plan”) for the governance of initiatives and projects therein; and
WHEREAS, Ag Processing Inc (the “Cooperative”) has proposed to undertake the expansion of an existing soybean processing facility (the “Project”) for use in its business operations on certain real property (the “Property”) situated at 2753 Port Neal Circle, Sergeant Bluff, Iowa in the Urban Renewal Area; and
WHEREAS, the Cooperative has requested that the County provide financial support to help to defray the costs of the Project; and
WHEREAS, the Board intends to provide such financial support by entering into a development agreement (the “Development Agreement”) with the Cooperative and thereby making provision for the funding of incremental property tax payments (the “Payments”) to the Cooperative; and
WHEREAS, prior to entering into the Development Agreement, the Board must undertake the statutory process for (1) approving the Project as an urban renewal project under the Plan for the Urban Renewal Area; and (2) authorizing the Development Agreement and the funding of the Payments; but the County desires to convey its intent to pursue these actions to the Cooperative in order to facilitate progress on the development of the Property through the adoption of this Resolution;
NOW, THEREFORE, Be It Resolved by the Board of Supervisors of Woodbury County, Iowa, as follows:
Section 1. The County hereby expresses its intent to support the Project in the future. The County will in good faith negotiate the Development Agreement with respect to the undertaking of the Project, such proposed Agreement to minimally include the following terms:
A) The Cooperative will agree to submit documentation demonstrating the costs (the “Project Costs”) incurred by the Cooperative in the completion of the Project; and
B) In undertaking the Project, the Cooperative intends to make a capital investment in the approximate amount of $70,400,000 and to create not less than two (2) new full time jobs; and
C) The Cooperative will commit to maintaining material compliance with its agreements with the Iowa Economic Development Authority respecting the undertaking of the Project and the workforce to be employed therein; and
D) The Cooperative will commit to entering into a minimum assessment agreement pursuant to Section 403.6 of the Code of Iowa establishing a minimum assessed valuation increase relative to the Project of not less than $11,200,000; and
E) The County will agree to fund five (5) annual Payments to the Cooperative each in the amount of $200,000, provided, however, that such Payments will be payable solely and only from incremental property tax revenues to be derived from the incremental valuation added to the Property by the undertaking of Project.
Section 2. The Board hereby agrees to use its best efforts to complete the statutory requirements of Chapter 403 of the Code of Iowa in order to amend the Plan and to authorize the Development Agreement. The County’s commitments expressed in this Resolution are merely a present statement of intent, and the Board of Supervisors must still exercise its ordinary political discretion in the completion of the statutory processes referenced herein. The County will not be held liable in the event that the Board of Supervisors, through the exercising of its ordinary political discretion, determines to not approve any of the actions outlined herein.
Section 3. Nothing in this Resolution shall prevent the parties from negotiating additional terms, not set forth herein, for inclusion in the Development Agreement.
Section 4. All resolutions and orders or parts thereof in conflict with the provisions of this resolution, to the extent of such conflict, are hereby repealed.
Passed and approved this November 19, 2021.
WOODBURY COUNTY BOARD OF SUPERVISORS
The Board adjourned the meeting.