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HomeMy WebLinkAbout2022-12-05 H02 Waukee Towne Center Development Agreement_PHAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: December 5, 2022 AGENDA ITEM:Public hearing on the proposal to enter into a Development Agreement with Waukee Towne Center, LLC FORMAT:Public Hearing SYNOPSIS INCLUDING PRO & CON: Waukee Towne Center, LLC is proposing to develop approximately 48 acres located west of SE Alice’s Road and south of SE Laurel Street. The proposed development consists of at least 270,000 square feet of retail development for a total investment of approximately $90M. The proposed development is planned to be completed in two phases with improvements as follows; Phase One: construction of at least 185,000 square foot retail development, a 7-acre lake, foundation/pad for an amphitheater and a paved trail that connects to the regional system (Outlot Y). Completion in summer 2025. Phase two includes construction of at least 85,000 square feet of retail development with lifestyle amenities including the vertical component of the amphitheater, a water feature, outdoor seating public art, ice rink and playground on development property. Completion at the end of 2029. Similarly, the proposed economic development grants would include two schedules to match the phased development with each schedule including thirteen (13) consecutive payments at 75% of the incremental taxes. The proposed development agreement also includes $2.1M payments in exchange for the Developer completion and dedication of Phase one quality of life improvements and transfer of Outlot Y. An additional $400,000 Outlot Y Payment would be made upon Developer completing and dedicating Phase Two quality of life improvements. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: A market analysis conducted in 2021, defined the Waukee Trade Area as having significant retail demand with over $1.2B in annual non-automotive spending across all retail and dining categories. Commodity retail stores were specifically identified as the biggest opportunity with a retail gap of over $240M annually. Commodity retail is driven by new rooftops and Waukee continues its record growth. Waukee Towne Center retail development is expected to make significant strides in addressing some of these retail gaps in the Waukee H2 Trade Area, not only as source of commodity retail, but also specialty retail and eating establishments. The retail development will provide more retail and restaurant options for residents and visitors alike while bringing more dollars into the local economy. COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: Staff recommends City Council holding a public hearing to discuss a proposed development agreement with Waukee Towne Center, LLC. RECOMMENDATION: Hold the Public Hearing. ATTACHMENTS: I. Proposed Development Agreement PREPARED BY:Jennifer Brown REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: Dallas County News DATE OF PUBLICATION: 12/01/2022