The Clinton Herald, Clinton, Iowa

Local News

March 11, 2013

Council to consider incentives

CLINTON — The Clinton City Council on Tuesday night will discuss the local incentives being offered to two businesses that plan to build new facilities in Clinton.

During the City Council meeting, members will consider allowing Mayor Mark Vulich to authorize an application to the Iowa Department of Economic Development for Economic Development Set-Aside funds, which will be used to reimburse RAIL.ONE, a German rail tie manufacturer that plans to build a facility in the Lincolnway Railport, for equipment purchases. The grant would total $248,000.

As part of this, the council will agree to provide the local match of an annual Tax Increment Finance rebate of up to $2 million over the course of 10 years.

More incentives will be considered during the Committee of the Whole meeting immediately following the regular council meeting. The city would build an access road into the railport designed to handle industrial traffic for RAIL.ONE and other future tenants. The estimated cost of this roadway is $400,000, which the city has options to fund including applying for a Revitalize Iowa's Sound Economy grant or general obligation bonding to be paid for with TIF funds.

Council members will also consider hiring outside legal counsel to represent the city in the sale of railport property to RAIL.ONE. Local incentives being offered to Data Dimensions also will be discussed. Officials with Data Dimensions plan to construct a facility in the Lyons Tech Park that will bring 130 new full-time jobs and a $6.2 million investment to the city.

Data Dimensions has requested the city approve and submit an application to the state in order to receive benefits from the Enterprise Zone Program. The city would need to provide a local match in the amount of $1.91 million in property tax abatements over a 10-year period.   

During the COW meeting, council members will also consider a settlement of Iowa Civil Rights Commission and Equal Employment Opportunity Commission complaints. The settlement entails the city paying in total $150,000 to be divided between a number of complainants.  

The City Council meeting will begin at 7 p.m. at City Hall with the COW meeting immediately following.

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