Famo Feed, Inc. tax abatement default

September 16, 2013 – EDA Meeting Minutes

The regular meeting of the Freeport EDA Board was called to order by President Matt Worms at 12:00 P.M. with members Carrie Goebel, Mason Schirmer, Jim Hemker, Bud Heidgerken and Andy Welle present.

APPROVAL OF THE AGENDA
Hemker moved and Goebel seconded a motion to approve the agenda. Motion carried 5-0.

APPROVAL OF THE MINUTES
Goebel moved and Welle seconded a motion to approve the August 26, 2013 minutes. Motion carried 5-0.

OLD BUSINESS
Community Survey Update
Schirmer said that in an effort to reduce costs and maximize the number of people reached, the survey will be redeveloped into an advertisement and published in area newspapers. The advertisement would emphasize that lots are available and ideas for business in Freeport are welcome.

Industrial Lots for Sale
Schirmer said he is working closely with the city’s accounting consultant Joe Rigdon (KDV) to determine total debt outstanding from the creation of the industrial lots and the minimum sale price which can be offered. Schirmer said he would have more information available at the next meeting.

NEW BUSINESS
Carr’s Tree Service Inquiry
Schirmer said he was recently contacted by Skip from Carr’s Tree Service in Freeport, inquiring about available land for sale. Skip said the company is considering building a building. Schirmer informed him of the Industrial Lots. Skip said he is forwarding the information to Bradley Carr and that the City should expect a call.

Famo Feed, Inc. Tax Abatement Default
Worms said Famo Feed, Inc. had made an agreement with the City in 2010 for tax abatement; however, the Company’s new improvements did not meet the minimum established within the agreement and are now in Default. Worms said his business did construction work for the Company and that he was abstaining from discussion and voting. Worms left the room.

Heidgerken expressed his dissatisfaction with the tax abatement agreement. Hemker moved and Heidgerken seconded a motion to recommend to the City of Freeport that the tax abatement agreement with Famo Feed, Inc. be terminated. Motion carried 4-0. Worms returned to the room.

Hemker said he was concerned about the lack of policy and procedures involved in applying for tax abatement. Hemker said applications for tax abatement should include three (3) years of financial records, current year-to-date financials, a statement of position from an independent financial analysis, and should satisfy criteria of hardship, employment, and valuation. Hemker moved and Heidgerken seconded a motion to draft a tax abatement policy. Motion carried 5-0.