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Prudential Insurance CompanyMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Prudential TIF Rebate DATE: December 13, 2011 Dubuque knerd All-America City 1 2007 Economic Development Director Dave Heiar recommends City Council approval of the final TIF payment in the amount of $338,219.90 to Prudential Insurance Company, as provided in the 1999 Development Agreement. I concur with the recommendation and respectfully request Mayor and City Council approval. dtir)144 Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David J. Heiar Economic Development Director Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: David J Heiar, Economic Development Director SUBJECT: Prudential TIF Rebate DATE: December 13, 2011 Dubuque AI- America City '1 1 1 II 2007 PURPOSE The intent of this memorandum is to seek Council authorization to approve the final TIF payments to Prudential BACKGROUND On October 18, 1999, the City Council approved a Development Agreement with Prudential Insurance Company to encourage the Company to locate in downtown Dubuque The expansion project was a $10,000,000 investment that created 200 new positions The Company already had 320 positions in Dubuque At the time of the agreement, the Company had 9 years remaining on its base lease The City Council agreed to rebate the property taxes during this lease period, and to extend the rebate for another year if the Company provided a copy of a lease extension beyond this initial lease period Last week, the Company submitted a copy of the lease extension to the City Since the City did not have notice of this lease extension, the tenth year of the rebate was not included in the current fiscal year budget Therefore, the City Council will need to authorize payment of the rebate as was previously agreed to in the Development Agreement BUDGET IMPACT The annual property rebate of $338,219 90 will be funded from TIF revenue from the Greater Downtown Urban Renewal District ACTION STEP To have the City Council approve payment of a property tax rebate of $338,219 90 to Prudential as stated in the 1999 Development Agreement F SLISERSSEcon Dev \Prudentialt20111213 Prudential TIF Rebate memo doc