Subject to change as finalized by the City Clerk. For a final official copy, contact the City
Clerk's Office, (319) 753-8124.
MINUTES OF THE PROCEEDINGS OF
THE BURLINGTON, IOWA, CITY COUNCIL
Special Meeting No. 40
October 13, 1997
The Burlington City Council met in special session October 13, 1997 at 4:15 p.m. with Mayor
Sandell, Council Members Heland, Henry, Scott and Thomas, present.
SPECIAL MEETING NOTICE ACKNOWLEDGED
RESOLUTION:
1. Resolution Authorizing Application for City Enterprise Zone Certification with the Iowa
Department of Economic Development (IDED) and Establishing an Enterprise Zone
Commission
DISCUSSION: The Interim City Manager stated that the City received a request from J.I. Case Corporation for the creation of an enterprise zone around the Case Corporation plant north of Burlington. He stated that the Iowa legislature approved legislation which become effective July, 1997 which allows cities to create an enterprise zone around blighted areas that meet certain criteria. He stated that the City would be giving Case Corporation a $1.00 tax abatement. He stated that the reason for the special meeting was that the State needs to receive the application by October 16, 1997. The Development Director stated that Tom Adrians, Case Comptroller, and Jayne Cornish, Human Resources Director was present should Council have any questions. He stated that Case Corporation contacted the City to create an enterprise zone. He stated that he has met with Case Corporation on two occasions in regard to the issue. He stated that the benefits within the zone were property tax abatement, investment tax credits, refund of sales or service taxes paid to contractors during construction, and double the income tax withholding credit for community college job training programs. He stated that the proposed zone encompasses 143 acres of actual plant property at 1930 Des Moines Avenue and additional residential, commercial, industrial, and vacant land to the south and west of the plant. He stated that the enterprise zone would encourage new business in Burlington. He stated that the Council would be able to recommend nine people to serve on the enterprise zone commission, however, five of the commission members would have to come from certain areas of the community. Tom Adrians, J.I. Case Comptroller, stated that the enterprise zone would allow Case to include capital improvements or add more jobs sooner than it anticipated in its five year plan. Council Member Thomas stated that since 1982 forty states have entered into an enterprise zone. He stated that the enterprise zone was new to Iowa. Council Member Heland stated that personally he was not against approving an enterprise zone for Case Corporation, but was against creating the enterprise zone for the entire neighborhood. He stated that there were many unanswered questions. Mayor Sandell also stated his concern that the zone was so large. The Development Director stated that the enterprise zone had to meet State criteria, which was why the zone encompassed an area larger than Case Corporation. Council Member Scott questioned if the Council would lose their zoning capabilities in the enterprise zone. The Development Director stated that the City Council would not lose their zoning capabilities. The Interim City Manager stated that BADCO supports the enterprise zone for Case Corporation. Mike Edwards of 1317 North 8th Street stated that the workforce at Case Corporation has been downsized in the last ten years. He questioned if the new jobs would remain at the current Case Corporation wages. Tom Adrian, Case Comptroller, stated that the jobs would be a combination of hourly and salary, and would follow union policy. Council Member Scott stated that Case was wanting to take advantage of an opportunity offered by the State. He stated that the enterprise zone was a huge benefit for Burlington as additional employees would be hired by Case, and building contractors would also be hired. Council Member Henry stated that it bothered him that the Council was giving up control of a tax base to an appointed commission. The Interim City Manager stated that upon notice of the enterprise zone certification by the IDED Board, the City may begin to identify enterprise zone commission members who meet the requirements of Iowa Acts, House File 724, Section 5. He further stated that the Flint Ridge Business Park would not be able to meet State requirements to create an enterprise zone. Council Member Heland stated that he would like to see Council pass a Resolution stating that it was not the City's intent to undercut existing jobs. All present had opportunity to speak and nothing additional was filed in the office of the City Clerk.
(VOTE: 5 - "AYES") ADOPTED
ADJOURNMENT 5:04 p.m. APPROVED: October 20, 1997
Kathleen P. Salisbury John K. Sandell
City Clerk CMC Mayor
(See tape on file in the office of the City Clerk for complete discussion and documentation.)