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Perry approves TIFF aid and contracts to secure ADR Axles USA manufacturing project
Summary
Perry City Council approved amendments to the city's urban renewal plan and a package of agreements that add ADR Axles USA as a project, increase tax-increment financing assistance by $100,000 and accept a state economic development contract to support a planned 65,000-square-foot manufacturing facility expected to create 35–50 jobs.
Perry City Council voted unanimously to add ADR Axles USA to the Perry urban renewal plan and authorize tax-increment financing and related contracts to support the company’s planned manufacturing facility in the city’s industrial park.
City Administrator Finn told the council the project is expected to be a roughly $146 million investment and would create an estimated 35 to 50 jobs in a new, about 65,000-square-foot building. "We had agreed to the $900,000 originally as part of tracking them to Perry," Finn said, referring to the amount of TIFF assistance the city will provide. He added that, with the city’s current projections, "it's about three and a half years to pay that $900,000 off," though the development agreement term remains 10 years to allow flexibility.
The council first held two related public hearings: one to amend the urban renewal plan to include the ADR project (a project-specific change, not an expansion of the renewal area), and a second hearing on the development agreement itself. After public comment and staff explanation, the council passed three related resolutions: (1) approving the urban renewal plan amendment to add the ADR Axles project; (2) approving the development agreement and authorizing annual appropriation tax-increment payments and the pledge of tax-increment revenues to repay the agreement; and (3) accepting the economic development assistance contract between ADR Axles USA, the city and the Iowa Economic Development Authority for state high-quality jobs and loan incentives.
Council members emphasized that the plan amendment does not add territory to the urban renewal area, only the specific project to the list of eligible projects. Staff noted the city adjusted the agreement’s minimum assessed valuation in the development agreement from $5 million to $7.5 million and increased the city’s TIFF commitment by $100,000 (from $800,000 to $900,000) under authority of Iowa Code section 403.91.
The council took roll-call votes on the resolutions; each measure passed unanimously. The council also set a separate procedural action to schedule a public hearing on a small voluntary annexation related to tidying up city boundaries at the industrial park; that annexation will be considered at a later meeting with a hearing set for Nov. 3.
The approvals are the next formal steps in a multi-stage process that also includes final contract execution and coordination with state economic development officials. The city noted the timeline for TIFF repayment and the 10-year agreement term may be influenced by future tax law or property-assessment changes.
