R2024-04 Resolution Authorizing Amendment Innovafeed Development Agreement

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MEMO DATE: January 16, 2024 TO: Mayor Julie Moore Wolfe and City Council Members FROM: Scot Wrighton, City Manager Jon Kindseth, Deputy City Manager SUBJECT: Resolution Authorizing Amendment to the InnovaFeed Redevelopment Agreement RECOMMENDATION: It is recommended by staff that this amendment to the InnovaFeed RDA, providing for an extension along with other minor changes,be approved. BACKGROUND: The City of Decatur approved a redevelopment agreement with InnovaFeed in 2020 for their first North American protein plant. The project ultimately has multiple phases, each one bigger than the previous. They have just recently completed the $10 Million Dollar pilot plant to begin to assimilate the animals to their new Illinois climate and environment. From this first phase they will go into the bigger plant for commercial production. In the redevelopment agreement InnovaFeed committed to spending$50 Million dollars for their multiple phases. They have already spent$10M for the pilot and the projected cost for Phase 1 is now $100M and Phase 2 is still unknown. All of this to say their investment in Decatur continues to grow. This proposed amendment allows them more time to complete Phase 1. The original agreement required them to be completed with Phase 1 in 2024, whereas the amendment will allow them until 2027 to complete Phase 1. Phase 2 is expected within 5 years of Phase 1 in order for them to realize some of the State incentives offered to them. In addition to the time extension,we have cleaned up a few other things in the RDA with this amendment, such as lowering our water allocation being held for them,removing an unnecessary bond requirement, and other minor things. No additional incentives are being provided with this amendment. STAFF REFERENCE: For any questions, City Council may contact City Manager Scot Wrighton or Deputy City Manager Jon Kindseth.