The council approved a plan 6-0 on Tuesday night where the City would install a sewer line costing about $175,000 to the 12th Street NE AADG facility. AADG would cover the cost and the City will reimburse AADG the $175,000.
No Tax Increment Financing (TIF) distrcit exists in the area so the City, working with the North Iowa Corridor, worked out the arrangement with AADG in order to land the new development.
AADG plans to build a “Test Burn Facility” at the location, about a $750,000 investment. This would be the only test facility AADG currently has.
Three new salaried jobs will come to the plant.
The plant is “well-positioned” for future development, City Administrator Brent Trout said, but no more help from the City is forthcoming at this time.
“The City’s investment is sanitary sewer infrastructure here extended represents, as per discussion with the company, the agreed upon exhaustion of city financial resources to any general redevelopment at the complex, should it occur.”
Trout did say that if AADG could offer “significant job creation,” the city “should consider future assistance.”
Watch video of council discussion: