Courtesy of Ken Helms, Communications Director City of Monmouth
Hy-Vee foods has approached the City with a request to be included in the new proposed TIF district that is currently being established. An inducement before the formal establishment of the district will allow the developer to begin site acquisition and development without having to wait for the district creation. This request has similar terms to the TIF district that was created in 2019 to bring Fareway Foods to Monmouth.
- This item does not formally establish a TIF district on the parcel but is a good faith agreement that the City will pursue creating one. A public hearing and additional measures will be needed at a later date for the final TIF district and its boundaries
- Hy-Vee agrees to pay the City’s actual legal expenses, up to $15,000, for the creation of the TIF district
- The City will provide Hy-Vee with the benefit of the Enterprise Zone for the exemption of State Sales Tax on the purchase of building materials for the renovation work on this building and the exemption of permit fees or any fee associated to the municipal review process
- The TIF rebate is in lieu of the enterprise zone property tax abatement. No property taxes will be abated during this process
- The City will adopt a TIF Inducement Resolution to provide a rebate of future property tax incremental revenues to reimburse Hy-Vee in an amount not to exceed $1,000,000 for the expenditure of TIF eligible costs. It will include acquisition cost and the cost of replacing the existing roof on this building
- No general fund revenues would be used for any economic incentives associated with this project
