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Keokuk approves settlement with Keokuk Mills LLC requiring repayment of roughly $29,645
Summary
Council approved a settlement mirroring state terms for Keokuk Mills LLC: 62% forgiveness of a $100,000 forgivable loan equates to $62,000 forgiven and leaves about $29,645 due after prior partial payments.
The Keokuk City Council approved a settlement agreement with Keokuk Mills LLC that mirrors a state settlement tied to job-creation conditions in the company's development agreement.
City staff told the council the original state package included a $500,000 loan and a $500,000 forgivable loan subject to job-creation benchmarks; Keokuk Mills met 62% of the state job targets and the state's settlement provided 62% forgiveness. The city's original agreement comprised a $200,000 package with a $100,000 forgivable loan; under the settlement the city would forgive 62% (approximately $62,000) of the forgivable portion, leaving the remaining 38% to be repaid to the city.
Staff reported Keokuk Mills had already repaid $8,355 of the outstanding amount, leaving about $29,645 still due under the proposed settlement terms. Once the company makes the remaining payment staff will take steps to release liens tied to the property per the settlement terms.
Council approved the settlement by motion after staff summarized the background and the relation to the state's prior agreement.
