Spencer, IA (KICD)–The Spencer City Council was split on a proposed agreement with Shine Brothers on Monday night.
Shine Brothers has extended the City the opportunity to submit a proposal to compete for an expansion to their existing business. The expansion would call for the need for an approximate 50,000 square foot building as well as the potential for an additional 10 jobs. Monday night’s proposed amendment changed the percentage of yearly adjustments from 3% to 2%.
Councilmember Steve Bomgaars voted against the proposal noting he would like to see language instituting a five year solid waste residential rate freeze for Spencer citizens.
Councilmember George Kruger sided with Bomgaars on the issue.
Councilmember Ed Krebs was disappointed to see the pact go below 3% but voted in favor of the proposal with the possible loss of jobs looming.
Councilmember Ron Hanson, who voted in favor of the agreement, felt that the city has put the option out there with no guarantees.
Mayor Reynold Peterson noted that city staff believes that no rate increases would need to occur if this agreement comes to be.
It is believed that the TIF rebate would be for roughly $27,000 annually for 10 years. The agreement calls for Shine Brothers to pay $14.50 for each ton of shredder “fluff” that they bring to the landfill with a 2% annual increase. Councilmember Dave Scott also voted against the pact with Randy Swanson, and RIch Prentice voting in favor. The council approved the measure by a 4-3 split vote.