Supervisors approve memorandum with Ackerman Construction
SIBLEY, Iowa -- The Osceola County Board of Supervisors met Tuesday morning to discuss economic development, public safety and requests from two communities within the county.
SIBLEY, Iowa - The Osceola County Board of Supervisors met Tuesday morning to discuss economic development, public safety and requests from two communities within the county.
Osceola County Economic Development Director Mike Earll reported Tuesday that Tom Ackerman of Ackerman Construction has expressed interest in expanding his business currently housed in the county’s Enterprise Park. The expansion would lead to the purchase of Lot 1, located directly across from Ackerman’s current location.
Earll said that if Ackerman is able to purchase the property, he would like to have the building constructed this fall. Earll also added that Ackerman has a business plan in place for the expansion.
In the memorandum of understanding, Ackerman agreed to have the business operational by November of this year. The company intends to employ two full-time equivalent positions with a projected payroll of approximately $60,000 annually.
Further, the memorandum outlines a purchase price of $13,680 for the property. The purchase would include 1.52 acres of land at a rate of $9,000 per acre. At the time of purchase, the county will give an economic development grant in the amount of the purchase price. If for some reason Ackerman fails to have the building in place and operational by June 1, 2016, the property will revert back to the county.
The memorandum also states that the structure will have a minimum tax assessment of $100,000. Earll noted that Ackerman estimates the building will be worth $125,000 and assessed at that rate. No tax abatements or further rebates are offered in the agreement.
The supervisors approved the memorandum of understanding unanimously along with a resolution setting a public hearing on the sale at 8:50 a.m. July 28.
Public safety allocation
The supervisors voted unanimously to pay the county’s allocation of the public safety budget in the full amount of $224,271.
Supervisor Phil Bootsma, who serves as a supervisor representative on the public safety committee, said the request is to allow public safety to have more cash flow.
Historically, the cities in Osceola County that contribute to the public safety budget do so on a monthly payment schedule. Bootsma noted that public safety has paid out $75,000 in legal fees due to an appeal of the entity’s budget. He added that the budget for public safety isn’t changing with this request, and that the department typically comes in under budget.
Harris financial advisor
At a March meeting, Harris Mayor Greg Spaethe made a request to assist the city in establishing an urban renewal district and tax increment financing (TIF) for a required sewer project. The supervisors agreed to partner with the community of 170 people to generate the bonding capacity needed to afford the project.
Bond counsel retained by the county has advised the supervisors to hire a financial advisor to assist with the process. Supervisor Jayson Vande Hoef said the suggestion was made to protect the county’s interests in the partnership and to ensure the city meets all requirements from DNR on the project.
Board Chairman Merlin Sandersfeld and Supervisor Mike Schulte were authorized to speak with financial advisors and return to the board within the next 30 days with recommendations.
Bond counsel has advised that a financial advisor would be needed to assist in Harris. Requirements that the city needs to meet will come from a DNR representative looking at financials with county’s interests in mind.
Osceola County Treasurer Becky Marco presented a request from the city of Melvin for a tax-forfeited property owned by the county to be turned over to the city for cleanup. The city has requested a tax abatement of $282 for the property. The supervisors approved the measure unanimously.