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HomeMy WebLinkAbout2023-05-15 I10 Development Agr_SE Tallgrass Ln AGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: May 15, 2023 AGENDA ITEM: Consideration of approval of a resolution approving a Development Agreement with Caliber Land Company, LLC and AP North, L.C. (SE Tallgrass Lane) FORMAT: Resolution SYNOPSIS INCLUDING PRO & CON: Caliber Land Company, LLC and AP North, L.C., desire to develop property adjacent to each other and intend to jointly construct a public street, SE Tallgrass Lane, as part of the development of their respective properties. A portion of the proposed public street extension crosses property that was previously deeded to the City for public street right-of-way. The agreement outlines the responsibilities of the parties. The City will not be constructing the road nor will there be any cost-share between the City and the developers for the construction of the road. All costs for the road construction will be shared between the two developers. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: Staff would recommend approval of the development agreement. RECOMMENDATION: Approve the resolution ATTACHMENTS: I. Proposed Resolution II. Development Agreement PREPARED BY: Andy Kass, Community Development Director I10 THE CITY OF WAUKEE, IOWA RESOLUTION 2023- APPROVING DEVELOPER’S AGREEMENT WITH CALIBER LAND COMPANY, LLC & AP NORTH, L.C. [SE TALLGRASS LANE] IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal Organization; AND, WHEREAS, the City Council has previously approved the rezoning of the Caliber Land Company, LLC, property (Ordinance 3052) and the rezoning of the AP North, L.C., property (Ordinance 2807) for development; AND, WHEREAS, the City has been in discussion with the, Caliber Land Company, LLC, and AP North, L.C., regarding certain obligations for the development of their respective properties and the developer related to public improvements and requirements of the subdivision; AND, WHEREAS, the discussions have resulted in a development agreement that the City Staff believes are in the best interest of the City to approve. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Waukee, Iowa, that the Developer’s Agreement with Caliber Land Company, LLC, and AP North, L.C., is hereby approved. BE IT FURTHER RESOLVED that the Mayor is authorized to execute any and all documents to effectuate the development agreement, and that the City Clerk shall cause the originals of the agreement to be recorded upon the properties by submitting the original to the Dallas County Recorder with the appropriate recording fees. Passed by the City Council of the City of Waukee, Iowa, and approved this the 15th day of May, 2023. ____________________________ Courtney Clarke, Mayor Attest: ___________________________________ Rebecca D. Schuett, City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN Anna Bergman Pierce R. Charles Bottenberg Chris Crone Larry R. Lyon Ben Sinclair 1 Prepared by: Stuart A. Ruddy, 5000 Westown Parkway Suite 400, West Des Moines, Iowa 50266 (515) 223-4000 Return to: Stuart Ruddy, 5000 Westown Parkway, Suite 400, West Des Moines, Iowa 50266 (515) 223-4000 DEVELOPMENT AGREEMENT This Development Agreement (this “Agreement”), entered into by and among Caliber Land Company, LLC an Iowa limited liability company with its principal place of business at 3611 NE Otterview Circle, #42, Ankeny, Iowa 50021 (hereinafter referred to as "Caliber"), AP North, L.C., an Iowa limited liability company with its principal place of business at 5000 Westown Parkway, Suite 400, West Des Moines, Iowa, 50266 (hereinafter referred to as "AP North")(Caliber and AP North may also be identified herein individually as a “Private Party” or collectively as "Private Parties") and the City of Waukee, Iowa, a municipal corporation duly formed and existing pursuant to the laws of the State of Iowa (herein referred to as “City”). WHEREAS, Caliber owns real property legally described as: SEE EXHIBIT “A” and seeks to develop the same (hereinafter referred to as the “Caliber Property”); WHEREAS, AP North owns real property legally described as: SEE EXHIBIT “B” and seeks to develop the same (hereinafter referred to as the “AP North Property”); WHEREAS, the Caliber Property and the AP North Property are located directly adjacent to Grand Prairie Parkway and the Private Parties seek to develop the Caliber Property and the AP North Property but require the development of a road and intersection at Grand Prairie Parkway to be known as SE Tallgrass Lane for access into the Caliber Property and the AP North Property and, seek to construct said intersection, at their cost, in accordance with applicable design standards and development requirements of the City; WHEREAS, as part of their development of the Caliber Property and the AP North Property, the Private Parties are responsible pursuant to applicable development rules and regulations for the initial construction of SE Tallgrass Lane adjacent to their property which shall include a minimum of a thirty-one (31) foot wide, two (2) lane street, including a left turn lane and a right turn lane at the intersection of SE Tallgrass Lane and Grand Prairie Parkway; 2 WHEREAS, AP North is preparing to undertake the development of the AP North Property and is preparing to undertake the platting and site plan process as well as complete the public improvements required as part of the development of the AP North Property; WHEREAS, Caliber is preparing to undertake the development of the Caliber Property and is preparing to undertake the platting and site plan process as well as complete the public improvements required as part of the development of the Caliber Property; WHEREAS, Caliber has consulted with the City about the requirements associated with development of the Caliber Property and Caliber has indicated a desire to participate with AP North on the SE Tallgrass Lane improvements set forth in Exhibit C (the “Improvements”) attached hereto and incorporated herein by reference and to complete a portion of the anticipated plat and site plan requirements for the Caliber Property; WHEREAS, Caliber and AP North acknowledge and agree that the approximate cost of the Improvements are estimated, as of the date of this Agreement, to be as shown on Exhibit D attached hereto and incorporated herein by reference (the “Proposed Improvement Costs”). However, the Private Parties acknowledge and agree that final costs shall only be known once the final bids have been accepted by the Private Parties, which is expected to occur on or about May 1, 2023. At the time such final bids are accepted by the Private Parties, then this Agreement shall be amended by deleting Exhibit D and replacing it with the final fixed bid costs for the Improvements as the new Exhibit D (the “Final Improvement Costs”). WHEREAS, the Private Parties have negotiated a method of completing the Improvements efficiently to help facilitate their development of the Caliber Property and the AP North Property; and WHEREAS, the Private Parties intend to agree upon their respective obligations regarding the Improvements. NOW, THEREFORE, in consideration of the Recitals, which are a part of this Agreement, and the mutual covenants and Agreements herein contained, the Private Parties hereby agree as follows: 1. Improvements. The Private Parties understand and agree that this Agreement only addresses the Improvements. The Private Parties have other obligations associated with the platting, site plan and development of the Caliber Property and the AP North Property, respectively, and this Agreement does not in any way effect the obligations of the Private Parties to satisfy the obligations imposed by federal, state and local laws and regulations. The Improvements shall allow for a full access drive onto the Improvements from both the Caliber Property and the AP North Property. 2. Property Dedication. As part of final plat and site plan approval, and acceptance of improvements by the City, AP North will dedicate to the City, free and clear of any encumbrances or liens, the property legally described on the approved final plat and site plan approved by the City and as provided on Exhibit E attached hereto 3 and incorporated herein by reference. As part of the dedication process, AP North will provide all necessary documents including, but not limited to, general warranty deed, Groundwater Hazard Statement and Declaration of Value for the purpose of effectuating the dedication to the City. As soon as reasonably possible after the execution of this Agreement, Caliber will dedicate and convey unto the City, free of any encumbrances and liens, the property legally described as provided on Exhibit F, which is attached hereto and incorporated by reference via a general warranty deed, with all other necessary documents including, but not limited to, a Groundwater Hazard Statement and Declaration of Value for the purpose of effectuating the dedication to the City. In addition, all required maintenance bonds for the Improvements shall be provided to the City by Caliber. 3. Private Party Roadway Improvements for Tallgrass Lane A. The Private Parties agree to undertake and finance in a cooperative effort the Improvements in accordance with the plans and specifications, and construction drawings approved by the City and requirements imposed by applicable federal, state and local authorities. Notwithstanding anything to the contrary contained herein, any trails and sidewalks shown or described on the plans and specifications and construction drawings shall be completed by the Private Parties when the Caliber Property or the AP North Property are developed and shall not be constructed as part of the Improvements under this Agreement. B. Prior to undertaking the Improvements, the Private Party constructing such Improvements shall obtain at least two estimates for the construction of the Improvements, or each separate portion of the Improvements, in a form that identifies each “Item”; “Total”; “Unit”; and “Unit Price”, which the Private Parties are responsible for financing and undertaking as set forth on Exhibit D. The estimates received by the Private Party shall be submitted to the other Private Party for approval and the reviewing Private Party shall have five (5) days to approve or reject the lowest estimate submitted by the constructing Private Party. C. Caliber agrees to cause to undertake the Improvements, weather permitting so as to not incur additional winter costs. Caliber shall commence construction of the Improvements on or before May 1, 2023 and Caliber shall diligently pursue completion of the Improvements after such work has been commenced. Caliber shall not cease performance unless such performance has been delayed due to a Force Majeure Event (as defined herein). Once completed by Caliber, the Improvements shall be approved by the City Council. Barring a Force Majeure Event, the Improvements shall be completed in a manner that will allow for traffic on SE Tallgrass Lane on or before October 15, 2023, barring any punch list items that are 4 not required for such Improvements to be open for the public use. Should the Improvements not be completed in such a manner on or before October 15, 2023, AP North shall have the right to complete the Improvements pursuant to Section 8 below. For purposes of this Agreement, Caliber shall not be considered in breach of or in default of the obligations set forth herein in the event of enforced delay in the performance of or inability to perform such obligations due to any Force Majeure Event (as defined herein), it being the intent of this paragraph that in the event of the occurrence of any such Force Majeure Event, the time or times for performance of the obligations of a party with respect to this paragraph shall be extended for the period of the Force Majeure Event. For purposes of this Agreement, the term, “Force Majeure Event” shall mean events or causes that are beyond a party’s reasonable control (such as, but not limited to, strikes, shortage of labor, work stoppages, labor disputes, inability for third-parties to deliver necessary materials, acts of God, judicial orders, war, riot, civil commotion, or governmental delays in permitting or inspecting work), but shall not include the financial inability to perform its obligations as herein described. D. The initial cost of the Improvements undertaken by the Private Parties hereunder shall be borne by Caliber. As invoices are received for the Final Improvement Costs and are paid by Caliber, copies of the same shall be submitted to AP North within seven (7) days of receipt and in no event shall any such payment exceed the cost of the quote received and approved by AP North to be eligible for reimbursement by AP North in the manner set forth below. AP North shall be required to reimburse Caliber for a portion of the Final Improvement Costs as shown on Exhibit D, in the time and manner set forth herein. All reimbursements made by AP North to Caliber shall be based on the actual costs incurred by Caliber and shall include all costs related to the design and construction of the Improvements. As invoices are received for the Improvements hereunder and are paid by Caliber, copies of the same shall be submitted to AP North within seven (7) days of receipt. If AP North objects to such reimbursement, then within the seven (7) day review period referenced above AP North shall provide Caliber with written notice of such objection and the reason for AP North’s objection. Thereafter Caliber and AP North shall reach a mutual agreement in writing regarding the amount to be reimbursed by AP North to Caliber. Caliber agrees that it shall provide to AP North all invoices and receipts related to such work within thirty (30) days of receipt. The costs to be reimbursed by AP North shall be paid in partial payments, as the Improvements are undertaken and paid for by Caliber. 4. Construction Plans. Caliber agrees to submit all plans, specifications and construction drawings to facilitate the planning, construction, and installation of the Improvements to AP North and the City for approval prior to commencing the Improvements and warrants to AP North that all work to complete the Improvements will be undertaken in accordance with the same and applicable 5 federal, state, and local laws and regulations. Any changes to the plans, specifications or construction drawings must be done with the consent of AP North and approved by the City. 5. Estimate of Costs. The Private Parties agree that Exhibit D represents the Proposed Improvement Costs and said Exhibit D will be replaced with a new Exhibit D showing the Final Improvement Costs. The costs identified in Exhibit D qualifying for reimbursement under this Agreement are made part of this Agreement and shall be utilized by the Private Parties in determining the reimbursement amount when applied to the actual cost of construction. 6. Liens. Both Private Parties represent and warrant that there is no mortgage lien on its property as of the date this Agreement recorded in the records of the Dallas County, Iowa Recorder, or, if there is a mortgage lien on any property, that Private Party shall have its lender execute a Mortgagee’s Consent to Development Agreement in substantially the form of Exhibit G attached hereto and incorporated herein by reference. Any lender with a mortgage lien as of the date of this Agreement agrees by its consent to this Agreement that it shall file a partial release of that mortgage to release their interest in that portion of the property described in Section 2 above, as requested by the City as part of the platting and conveyance process described therein. 7. Property Dedication and Acceptance of Completed Improvements by the City. A portion of the Improvements being undertaken by the Private Parties pursuant to this Agreement are being undertaken on property the Private Parties already dedicated to the City as part of final plat approval and as otherwise provided in this Agreement. In furtherance of the development of their properties, the Private Parties are required, and otherwise authorized to undertake the Improvements within the land dedicated for SE Tallgrass Lane in accordance with the plans and specifications approved by the City. The Private Parties agree to indemnify and hold harmless the City for any and all claims, demands, suits, damages or liability that may arise by virtue of their undertaking the Improvements contemplated by virtue of this Agreement, including but not limited to reasonable attorney’s fees and expenses incurred by the City in defending itself with regard to any such matters. Upon completion of said Improvements the Private Parties will certify completion the Improvements to the City and present evidence that the Final Improvement Costs have been paid by the Private Parties together with all required maintenance bonds, and request that the City accept the dedication of the completed Improvements. After City inspection of the same to assure adherence to the City approved plans and specifications and applicable federal, state, and local laws and regulations, together with all required maintenance bonds, the City will accept the Improvements and assume ownership and maintenance obligations associated with said Improvements subject to the requirements of the associated bonds. 8. Defaults and Remedies. In the event either Caliber or AP North (the “Claimant”) reasonably believes the other Private Party (the “Respondent”) is in violation of any of the terms of this Agreement, the Claimant shall provide notice of such 6 default to the Respondent with written notice of the specific terms and conditions of the violation and the specific requirements to remedy such violation. (a) Upon receipt of notice of an alleged violation, the Respondent shall have (i) in the case of monetary violations ten (10) days from the date of receipt of the notice, and (ii) in the case of non-monetary violations thirty (30) days from the date of receipt of such notice, to (A) remedy the alleged violation by taking appropriate actions, or (B) serve a written response to the Claimant denying the allegations of any violation and providing reasons and rationale for the denial of the allegations of any violation made by Claimant, provided any such written response must be delivered within fourteen (14) days following receipt of notice of an alleged violation. In the event the Respondent fails to reasonably cure an alleged violation of this Development Agreement within the cure period set out above, or denies the allegations without any reasons or rationale, the violation shall be deemed a “Default” hereunder. Notwithstanding the foregoing, if Respondent has timely commenced curing any alleged violation and is diligently prosecuting the same, and completion of the cure shall require more than thirty (30) days, then the cure period will be extended for an amount of time reasonably necessary for Respondent to cure the same. (b) In the event of a Default the Claimant shall have the right to seek all legal and/or equitable remedies (including the right to obtain specific performance without the necessity of posting a bond) against the Respondent for the Default as described in the original notice of violation set out above. Notwithstanding the foregoing, in the event Caliber is in Default, then AP North shall have the right to (i) complete the Improvements at Caliber’s cost, it being acknowledged that the costs thereof shall be a lien upon the Caliber Property from the time any such lien is filed of record until paid in full and (ii) to the extent necessary, cause Caliber to assign all permits, plans and specifications and the construction contract for the Improvements to AP North. (c) The obligations of the Private Parties to the City hereunder shall constitute a lien upon the Caliber Property and AP North Property. Upon final acceptance of the completed Improvements by the City as contemplated in paragraph 8, the City will release said lien in favor of the City. 9. Power and Authority. Each party to this Agreement represents and warrants that the execution, delivery, and performance of this Agreement has been duly authorized by all required corporation, LLC, or regulatory authority, and when executed and delivered, this Agreement constitutes the valid and binding obligation of such party, enforceable in accordance with its terms. 10. Jurisdiction. The parties agree that this Agreement and amendments hereto, if any, shall be governed by the laws of the State of Iowa. The parties consent and agree that the proper venue and jurisdiction relative to the enforcement of the terms, 7 conditions and provisions of this Agreement and amendments hereto, if any, is the Iowa District Court in and for Dallas County, Iowa. 11. Running of the Benefits and Burdens. The terms and conditions of this Agreement are binding upon AP North and Caliber, and any future owners, lenders, developers, lessees, or occupants. All provisions of this Agreement, including benefits and burdens, run with the land and are binding upon and inure to the benefit of the heirs, assigns, successors, tenants and personal representatives of the Private Parties hereto. [See Signatures on Following Pages] 8 Dated: ____________________________, 2023 CALIBER LAND COMPANY, LLC an Iowa limited liability company By: Name (Print): Its: ACKNOWLEDGEMENTS STATE OF ______________) )ss. COUNTY OF ____________) This record was acknowledged before me on_______________, 2023, by ______________________________as ____________________ of Caliber Land Company, LLC, an Iowa limited liability company. __________________________________________ Notary Public in and for the State of ____________ 9 AP NORTH, L.C., an Iowa limited liability company By: Gerard D. Neugent, Manager ACKNOWLEDGEMENTS STATE OF IOWA ) )ss. COUNTY OF POLK ) On this _____ day of _______________, 2023, before me, the undersigned, a Notary Public in and for said County and State personally appeared Gerard D. Neugent, Manager of AP North, L.C., an Iowa limited liability company, to me personally known, who being by me duly sworn, did say that they executed the within and foregoing instrument as their voluntary act and deed. __________________________________________ Notary Public in and for the State of Iowa 10 CITY OF WAUKEE ____________________________ Courtney Clarke, Mayor Attest: ____________________________ Rebecca D. Schuett, City Clerk STATE OF IOWA ) ) SS COUNTY OF DALLAS ) On this _____ day of __________________, 2023, before me, the undersigned, a Notary Public in and for said County and the State of Iowa, personally appeared Courtney Clarke and Rebecca D. Schuett, to me personally known, who being by me duly sworn, did say that they are the Mayor and City Clerk of the City of Waukee, Iowa, a municipal corporation, executing the within and foregoing instrument and acknowledged that they executed the same as their voluntary act and deed of the City of Waukee, by it and by them voluntarily executed. ______________________________ Notary Public in and for the State of Iowa 11 EXHIBIT A LEGAL DESCRIPTION OF THE CALIBER PROPERTY PARCEL 21-96, BEING A PART OF GOVERNMENT LOT 12 IN SECTION 3 AND A PART OF GOVERNMENT LOT 16 IN SECTION 4, ALL BEING IN TOWNSHIP 78 NORTH, RANGE 26 WEST OF THE FIFTH PRINCIPAL MERIDIAN IN THE CITY OF WAUKEE, DALLAS COUNTY, IOWA AS DESCRIBED AND DEPICTED IN THE PLAT OF SURVEY RECORDED IN BOOK 2021, PAGE 31554 IN THE OFFICE OF THE DALLAS COUNTY IOWA RECORDER 12 EXHIBIT B AP NORTH PROPERTY Outlot ‘Z’ of Ashworth North Plat 1, an Official Plat now included in and forming a part of the City of Waukee, Dallas County, Iowa. 13 EXHIBIT C PROPOSED IMPROVEMENTS See Following Pages 23 24 25 26 27 28 29 30 31 32 33 EXHIBIT D PROPOSED IMPROVEMENTS COST 34 EXHIBIT E AP NORTH RIGHT OF WAY LEGAL DESCRIPTION Lot “A” of Ashworth North Plat 2, an Official Plat now included in and forming a part of the City of Waukee, Dallas County, Iowa. and Lot “A” of Ashworth North Plat 3, a Preliminary Plat to be included in and forming a part of the City of Waukee, Dallas County, Iowa. 35 EXHIBIT F CALIBER RIGHT OF WAY LEGAL DESCRIPTION A PART OF PARCEL 21-96 AS SHOWN ON THE PLAT OF SURVEY RECORDED IN BK 2021 PG 31554, BEING A PART OF SECTIONS 3 AND 4, TOWNSHIP 78 NORTH, RANGE 26 WEST OF THE FIFTH PRINCIPAL MERIDIAN, DALLAS COUNTY, IOWA AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID PARCEL 21-96; THENCE NORTH 00°27'16" EAST ALONG THE WESTERLY LINE OF SAID PARCEL 21-96, A DISTANCE OF 58.33 FEET; THENCE SOUTH 51°03'50" EAST, 25.38 FEET; THENCE NORTH 83°56'10" EAST, 148.38 FEET; THENCE NORTH 89°28'40" EAST, 51.78 FEET; THENCE NORTH 83°56'10" EAST, 326.90 FEET; THENCE SOUTH 06°07'23" EAST, 35.00 FEET TO THE SOUTHERLY LINE OF SAID PARCEL 21-96; THENCE SOUTH 83°56'10" WEST ALONG SAID SOUTHERLY LINE, 551.42 FEET TO THE POINT OF BEGINNING AND CONTAINING 0.47 ACRES (20,381 SQUARE FEET). and A PART OF PARCEL 21-96 AS SHOWN ON THE PLAT OF SURVEY RECORDED IN BOOK 2021, PAGE 31554 BEING A PART OF GOVERNMENT LOT 12 IN SECTION 3 AND A PART OF GOVERNMENT LOT 16 IN SECTION 4, ALL BEING IN TOWNSHIP 78 NORTH, RANGE 26 WEST OF THE FIFTH PRINCIPAL MERIDIAN IN THE CITY OF WAUKEE, DALLAS COUNTY, IOWA AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID PARCEL 21-96; THENCE NORTH 83°56'10" EAST ALONG THE SOUTHERLY LINE OF SAID PARCEL 21-96, A DISTANCE OF 551.42 FEET TO THE POINT OF BEGINNING; THENCE NORTH 06°07'23" WEST, 35.00 FEET; THENCE NORTH 83°56'10" EAST, 221.16 FEET; THENCE NORTH 80°28'07" EAST, 82.67 FEET; THENCE NORTH 83°56'10" EAST, 133.71 FEET; THENCE NORTH 42°11'43" EAST, 27.03 FEET; THENCE SOUTH 89°32'44" EAST, 78.33 FEET; THENCE SOUTH 03°00'50" EAST, 13.77 FEET; THENCE SOUTH 00°27'16" WEST, 35.58 FEET TO SAID SOUTHERLY LINE; THENCE SOUTH 83°56'10" WEST ALONG SAID SOUTHERLY LINE, 530.58 FEET TO THE POINT OF BEGINNING AND CONTAINING 0.49 ACRES (21,236 SQUARE FEET). 36 EXHIBIT G MORTGAGEE’S CONSENT TO DEVELOPMENT AGREEMENT The undersigned is the holder of a Mortgage dated _______________________, and recorded _______________________ in Book ________________, on Page _________________ of the Dallas County records (the “Mortgage”). By consenting to this Development Agreement (“Agreement”), the undersigned, its successors and assigns, consents to the terms and conditions found in the attached Agreement, as well as actions, rights, liabilities, or obligations required hereunder. [BANK NAME] By: By: [Print name and title under signature.] ACKNOWLEDGEMENT STATE OF _______________ ) ) SS COUNTY OF _______________ ) This record was acknowledged before me on this ______ of _________________, 2023 by ________________________ and ___________________ as _________________ and _________________ respectively of ___________________ Bank. __________________________________________ Notary Public in and for the State of Iowa 12393637