Forgivable Loan from Clear Lake Business Owner
The agreement provides for a period of five years property tax rebate. According to Clear Lake City Administrator Scott Flory, under the agreement the city agreed to rebate back to the company annual property tax paid on the project for a period not exceeding five years. Flory estimate of the expected return on the city for its actual costs in five years. The general contractor for the project will be Dean Snyder Construction of Clear Lake.
The refund does not include debt service charges of the various taxing entities of Cerro Gordo County, including the school district the physical plant and equipment levy. The city agrees to reimburse the developer for the costs of extending water and sanitary sewer service to the building.
After 10 years, provided that the company has met all the agreed performance standards, the cost of property acquisition by the city will be forgiven. If the company does not meet the performance conditions meet before then, the cost of land acquisition shall be reimbursed to the city by the company on a pro rata basis at the rate of 10 percent for each remaining year of the original 10 years. The cost of the 80-by-120-foot building is estimated at $ 625,000.