During its meeting Tuesday evening, Creston City Council approved the first reading of two ordinances – Nos. 21-197 and 21-198 – which would grant Interstate Power and Light Company the ability to continue operating and distributing power in Creston.
In a phone call following the meeting, Creston Mayor Gabe Carroll explained that the current agreements with IPL are set to expire. A 25 year agreement, which is the maximum length, allow them to plan for expenditures and apply for loans.
The council unanimously voted to commit funds, not in excess of $17,100, to WMZ Ventures, LLC, so that it may qualify for a Community Catalyst Building Remediation Program grant from the State of Iowa Economic Development Authority.
“As part of that application process, it is required to have some sort of that local match from the city,” said Carroll. “What we’ve decided to do a a city is, we can use tax increment financing (TIF), which basically just means that this area, in the downtown, any tax money that is collected here can be put to use to pay off debt that the city incurs in this area.”Assistance by the city is also based on the condition that WMZ Ventures, LLC, raises remaining funds to successfully complete the project as proposed and maintains ownership of the property for a minimum of 10 years. The funds will be made payable in FY 2021-22.