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HomeMy WebLinkAbout2022-12-05 J02A The Quarter at Waukee Development Agreement_Set PHAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: December 5, 2022 AGENDA ITEM:Consideration of approval of a resolution fixing date for a public hearing on the proposal to enter into a Development Agreement with The Quarter at Waukee, LLC FORMAT:Consent Agenda SYNOPSIS INCLUDING PRO & CON: Staff has been working with The Quarter at Waukee, LLC to amend the current development agreement which includes modifications to the KeeTown Loop project. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: Staff recommends City Council holding a public hearing date to discuss a proposed development agreement with The Quarter at Waukee, LLC. RECOMMENDATION: Approve the resolution. ATTACHMENTS: I. Proposed Resolution PREPARED BY:Jennifer Brown REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: J2A RESOLUTION NO. ______ RESOLUTION FIXING DATE FOR A PUBLIC HEARING ON THE PROPOSAL TO ENTER INTO A DEVELOPMENT AGREEMENT WITH THE QUARTER AT WAUKEE, L.L.C., AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF WHEREAS, by resolution adopted November 21, 2022, this Council found and determined that certain areas located within the City are eligible and should be designated as an urban renewal area proposed to be named The Quarter Commercial Urban Renewal Area (the “Urban Renewal Area”), and set a public hearing on the proposed The Quarter Commercial Urban Renewal Plan (the “Plan”) for the proposed Urban Renewal Area described therein; and WHEREAS, this Council proposes to consider, on December 19, 2022, the adoption of the proposed Plan and, if the Plan is adopted and the Urban Renewal Area established, it is desirable that properties within the Urban Renewal Area be developed as part of the overall development covered by the proposed Plan; and WHEREAS, the City and The Quarter at Waukee, L.L.C. (the "Developer") previously entered into a Second Amended and Restated Agreement for Private Development dated January 3, 2022 (the “Second Amended and Restated Agreement”) and a minimum assessment agreement also dated January 3, 2022 (the “Prior Minimum Assessment Agreement”), regarding certain development activities on property then-located within the Waukee Consolidated Urban Renewal Area (the “Development Property”); and WHEREAS, the Development Property is planned to be removed from the Waukee Consolidated Urban Renewal Area and instead included in the proposed Urban Renewal Area; and WHEREAS, the City and the Developer desire to terminate the Second Amended and Restated Agreement and the Prior Minimum Assessment Agreement, and replace those prior agreements with a proposed Agreement for Private Development by and between the City and Developer (the “Agreement”), which Agreement is proposed to be authorized as an urban renewal project in the proposed The Quarter Commercial Urban Renewal Plan; and WHEREAS, the Agreement would provide restated terms for the Developer’s proposed project and would reflect updates and changes to the project, including changes to the description of the “Development Property” and “Minimum Improvements” (as those terms are defined in the Agreement), and changes to the terms for construction, assessed value, and operation of the Minimum Improvements on the Development Property; and WHEREAS, pursuant to the Agreement, the City and the Developer would execute a new minimum assessment agreement to set minimum assessed values on the commercial buildings and the surface parking lot to be included in the Minimum Improvements, as set forth in the Agreement; and WHEREAS, pursuant to the terms of the Agreement, the City would make payments of Economic Development Grants to Developer, with the payment amounts to be calculated based on the Tax Increment generated by the various commercial buildings and the surface parking lot included in the Minimum Improvements and collected by the City under Iowa Code Section 403.19, under the formulas and schedules for the separate buildings set forth in the Agreement, which provide for payments for each building using varying percentages of Tax Increment over a period of twelve (12), sixteen (16) or twenty (20) years, subject to the terms and conditions of the Agreement, including annual maximum payment amounts, with the cumulative maximum amount of all Economic Development Grants under the Agreement not to exceed $34,002,798; and WHEREAS, Chapters 15A and 403, Code of Iowa, (the "Urban Renewal Law") authorize cities to make grants for economic development in furtherance of the objectives of an urban renewal project and to appropriate such funds and make such expenditures as may be necessary to carry out the purposes of said Chapter, and to levy taxes and assessments for such purposes; and WHEREAS, the Council has determined that the Agreement is in the best interests of the City and the residents thereof and that the performance by the City of its obligations thereunder is a public undertaking and purpose and in furtherance of the proposed Plan, if adopted, and also in furtherance of the Urban Renewal Law and, further, that the Agreement and the City's performance thereunder is in furtherance of appropriate economic development activities and objectives of the City within the meaning of Chapters 15A and 403, Code of Iowa, taking into account the factors set forth therein; and WHEREAS, neither the Urban Renewal Law nor any other Code provision sets forth any procedural action required to be taken before said economic development activities can occur under the Agreement, and pursuant to Section 364.6, Code of Iowa, it is deemed sufficient if the action hereinafter described be taken and the City Clerk publish notice of the proposal and of the time and place of the meeting at which the Council proposes to take action thereon and to receive oral and/or written objections from any resident or property owner of said City to such action. NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF WAUKEE IN THE STATE OF IOWA: Section 1.That this Council meet in the Council Chambers, City Hall, 230 West Hickman Road, Waukee, Iowa, at 5:30 P.M. on December 19, 2022, for the purpose of taking action on the matter of the proposal to enter into a Development Agreement with The Quarter at Waukee, L.L.C. Section 2.That the City Clerk is hereby directed to cause at least one publication to be made of a notice of said meeting, in a legal newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in said City, said publication to be not less than four (4) clear days nor more than twenty (20) days before the date of said public meeting. Section 3.The notice of the proposed action shall be in substantially the following form: (One publication required) NOTICE OF PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF WAUKEE IN THE STATE OF IOWA, ON THE MATTER OF THE PROPOSAL TO ENTER INTO A DEVELOPMENT AGREEMENT WITH THE QUARTER AT WAUKEE, L.L.C., AND THE HEARING THEREON PUBLIC NOTICE is hereby given that the Council of the City of Waukee in the State of Iowa, will hold a public hearing on December 19, 2022, at 5:30 P.M. in the Council Chambers, City Hall, 230 West Hickman Road, Waukee, Iowa, at which meeting the Council proposes to take action on the proposal to enter into a Development Agreement (the "Agreement") with The Quarter at Waukee, L.L.C. (the "Developer"). The City and the Developer previously entered into a Second Amended and Restated Agreement for Private Development dated January 3, 2022 (the “Second Amended and Restated Agreement”) and a minimum assessment agreement also dated January 3, 2022 (the “Prior Minimum Assessment Agreement”), regarding certain development activities on property then- located within the Waukee Consolidated Urban Renewal Area (the “Development Property”). The Development Property is planned to be removed from the Waukee Consolidated Urban Renewal Area and instead included in the proposed The Quarter Commercial Urban Renewal Area, pursuant to the proposed The Quarter Commercial Urban Renewal Plan, which is set to be considered for adoption by the Council on December 19, 2022. The City and the Developer desire to terminate the Second Amended and Restated Agreement and the Prior Minimum Assessment Agreement, and replace those prior agreements with a proposed Agreement for Private Development by and between the City and Developer (the “Agreement”). The Agreement would: (i) provide restated terms for the Developer’s proposed project; (ii) reflect updates and changes to the project, including changes to the description of the “Development Property” and “Minimum Improvements” (as those terms are defined in the Agreement), and changes to the terms for construction, assessed value, and operation of the Minimum Improvements on the Development Property; and (iii) require execution of a new minimum assessment agreement to set minimum assessed values on the commercial buildings and the surface parking lot to be included in the Minimum Improvements. Pursuant to the terms of the Agreement, the City would make payments of Economic Development Grants to Developer, with the payment amounts to be calculated based on the Tax Increment generated by the various commercial buildings and the surface parking lot included in the Minimum Improvements and collected by the City under Iowa Code Section 403.19, under the formulas and schedules for the separate buildings set forth in the Agreement, which provide for payments for each building using varying percentages of Tax Increment over a period of twelve (12), sixteen (16) or twenty (20) years, subject to the terms and conditions of the Agreement, including annual maximum payment amounts, with the cumulative maximum amount of all Economic Development Grants under the Agreement not to exceed $34,002,798. A copy of the Agreement is on file for public inspection during regular business hours in the office of the City Clerk, City Hall, City of Waukee, Iowa. At the above meeting the Council shall receive oral or written objections from any resident or property owner of said City, to the proposal to enter into the Agreement with the Developer. After all objections have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action on the proposal or will abandon the proposal to authorize said Agreement. This notice is given by order of the City Council of the City of Waukee in the State of Iowa, as provided by Section 364.6, Code of Iowa. Dated this 5th day of December, 2022. Rebecca D. Schuett City Clerk, City of Waukee in the State of Iowa (End of Notice) PASSED AND APPROVED this 5th day of December, 2022. Mayor ATTEST: City Clerk