(Atlantic) The Atlantic City Council will act Wednesday on Resolution #48-26, authorizing a development agreement with Mudslayer Manufacturing, LLC and providing for economic development assistance.
Jim LaPorte is constructing a 13,920-square-foot building that will serve as an assembly site for parts produced at two other facilities in Iowa.
The project is expected to create between five and 10 new jobs.
The construction site is located west of Sunnyside Lane, east of SW 7th Street, and behind Hoffman’s new veterinary care center. The tentative address is 1501 West 15th Street.
The 3.20-acre property is currently owned by Nick and Sue Hunt. The Hunts have an agreement with Mr. LaPorte, who has provided earnest money for the property. The sale will be completed when the contract and abstract are delivered.
Construction of the facility is contingent on a development and minimum assessment agreement. The agreement will finance the extension of 15th Street, along with stormwater improvements and extensions of the sanitary sewer and water systems.
The street currently provides access to the Tolton building, the school district building, and the Mediacom shed.
The resolution, along with economic development and minimum assessment agreements, would establish the structure for using tax increment financing, or TIF, to help cover the cost of public improvements associated with the new Mudslayer Manufacturing facility.
The goal is to ensure the development generates enough new property tax revenue to cover the costs of those improvements, rather than placing the financial burden on existing taxpayers.
The City of Atlantic’s TIF policy requires at least one million dollars in new assessed property value to be added to the tax rolls to justify the costs of TIF financing.
The agreement also includes a forgivable loan component. City officials say the provision would ensure that costs associated with improvements supporting the value of the real estate could ultimately be shouldered by the current or future property owner.
Officials describe the forgivable loan provision as an insurance policy rather than something they expect to use. However, there is precedent for the City using similar documents.
Atlantic has previously used TIF to support the former Atlantic-based business Skyjack. Under the final agreement, Skyjack did not remain in Atlantic and was required to repay the tax benefits it had received.
The City Council will consider Resolution #48-26 during its Wednesday m
