County approves Ingenus agreement

Jan 14, 2010 — Ottumwa Courier

Cindy Toopes

Jan. 14, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- OTTUMWA -- The vote was no surprise. The Wapello County Board of Supervisors approved the proposed agreement with Ingenus of Iowa, LLC, with a 2-1 vote on Wednesday.

Due to a scheduling snafu earlier this week, Supervisor Steve Siegel hadn't included the general agreement on Tuesday's agenda. The board discussed the matter Tuesday but couldn't vote on it until Wednesday.

The 2-1 vote meant the board approved a resolution for a 28E agreement with Ingenus for financing infrastructure at the proposed Rippling Waters Casino.

During the public hearing on the 28E agreement, Ottumwa Councilman Keith Caviness said the parties involved had "discussed in good faith" not utilizing tax increment financing (TIF) dollars beyond the current level.

"The only exception would be an emergency that can't be foreseen now," Caviness added.

Supervisor Jerry Parker said the city sent him a letter concerning the Westgate TIF District.

The Courier obtained a copy of the letter, which wasn't on city letterhead. Mayor Dale Uehling's name was on the document, which did not feature a signature or a date.

The letter stated the city "will make every effort to keep the Westgate TIF at 25 percent of total TIF revenues provided the city can make its obligation regarding the Ingenus lease and there are no significant unforeseen events such as a large box culvert breaking or levee repair requirements to maintain levee certification for flood insurance requirements."

"If the intent is not to use TIF, why can't they put that in the agreement -- that each party agrees not to use TIF?" Parker said.

Also, Parker said he thought TIF wouldn't be used on casino development, but "that seems to be the intention." The letter "means nothing," he added.

Siegel said the city evidently "isn't willing" to commit to not using the Westgate TIF.

Parker wanted to know why.

Siegel said he believed there was some miscommunication in conversations between the city and Ingenus about taxes and rent money.

"I've heard Ingenus believed there was a $4 million grant to assist with the parking ramp," he said. "Also, Ingenus was under the impression they wouldn't pay property taxes because [the land] is city property. That's wrong."

Parker insists the county will lose money if the city decides to take TIF funds to pay part of Ingenus' property tax amount.

When the city pays a dollar out of property taxes, Parker said it costs the city 50 cents; the county, 20 cents; and the school district, 30 cents.

"The schools can raise your taxes for what they lose through TIF," Parker said Wednesday.

Parker estimated the county's loss from the Westgate TIF would be $38,000.

After the casino is up and running, Siegel said the annual casino payment from Ingenus could be $1,473,333, which would mean $857,000 for the city, $505,000 for the county and $215,000 for the school district.

Supervisor Greg Kenning, now the board chairman, said his concern was there was "a possibility of making more than $500,000 vs. losing $38,000."

"We need to look out for the people of Wapello County," he said.

Cindy Toopes can be reached at (641) 683-5376 or via e-mail at cindy@ottumwacourier.com.

Newstex ID: KRTB-0395-41228932