TIF payments to Kemna, Wendy’s OK’d
Development agreements with Wendy’s and Kemna Properties LLC were approved by the Fort Dodge City Council Monday night.
A payment of $240,000 for Kemna and $20,000 for Wendy’s was approved unanimously. Of Kemna’s payment, $120,000 was for acquisition of land needed for the East Region Storm Sewer Project.
The city will use tax increment financing to aid the businesses with demolition of existing structures and building new ones. Tax increment financing occurs when increased property tax revenue from designated areas is reinvested in those areas.
Kemna is planning to demolish its existing buildings at 10 S. 25th St. and 2504 First Ave. S. and to construct new facilities for Kemna Auto, Auto Smart and Valvoline at the northwest and northeast corners of the intersection of First Avenue South and South 25th Street. A total investment of $5 million will be made into the sites.
“This is a good project here,” said Councilman Mark Taylor. “Kemna is doing a major revitalization of that intersection. It’s really cleaning the intersection up real nicely. They’re going to expand their company across the street and make it even bigger than what it is. It’s going to generate about $111,000 annually, so it’s going to take about 2 1/2 years to recoup the money on this.”
Kemna will be paid $120,000 for land needed for the storm sewer project, and the remaining $240,000 over the next three years using TIF funds.
Wendy’s owners Dennis and Jean Johnson have demolished the existing restaurant at 2313 Fifth Ave. S. and are constructing a new building east of that site. A total investment of $1,176,646 will be made into the new site.
The Johnsons would be paid $20,000 over three years in TIF funds; it is estimated the project will generate approximately $8,800 annually.