(Atlantic, Iowa) – A Special Meeting of the Atlantic City Council will take place at 5:15-p.m. on Tuesday, Nov. 26th, in the Council’s Chambers at City Hall. On the agenda, is action on passing a resolution “Obligating funds from the Southeast Urban Renewal Area Revenue Fund, for appropriation to the payment of annual appropriation Tax Increment Financed (TIF) obligations which shall come due in the next succeeding fiscal year.”

City Administrator John Lund says “This is bureaucratic red tape relating to TIF for the Redwood Subdivision. The City did not borrow money for the infrastructure for this development.” Lund says the City “Did an internal loan [through ARPA funds] and are using TIF to recover [the City’s] investment, so the City can be smarter in planning for new housing in Atlantic.” Lund added, “Part of the annual appropriation process is the announcement [by] formal resolution, we [the City] will utilize TIF [funds] to repay our own internal debt.” A nearly identical resolution was approved during the Council’s regular meeting on Nov. 15, 2023.

The Council will also act on passing a resolution “Obligating funds from the Hotel Whitney Urban Renewal Area Revenue Fund for appropriation to the payment of annual appropriation TIF obligations which [are coming] due in the next fiscal year.”  A TIF agreement with the Whitney Group for improvements to the Whitney Inn was passed in 2016, which includes an annual appropriation. Lund says “This will be the sixth year the City has been eligible to capture the taxes paid by the Whitney Group using TIF.” It will continue to be an annual feature on the Council’s agenda until the City either pay’s off the $750,000 maximum payment, or 20-years expires – whichever come first. The Council adopted an identical resolution during their meeting in November, 2023.

The Atlantic City Council will also act on Orders approving an Annual Urban Renewal report (as required by Iowa Code), and the 2023 Road Use Tax report, which is also required under the Code of Iowa.