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HomeMy WebLinkAbout2023-06-05 G07 Kettlestone Central LC, Caliber Land Company LLC Development Agreement_PHAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: June 5, 2023 AGENDA ITEM:Public hearing on the proposal to enter into a Development Agreement with Kettlestone, LC, and Caliber Land Company, LLC FORMAT:Public Hearing SYNOPSIS INCLUDING PRO & CON: Kettlestone, LC, and Caliber Land Company, LLC are proposing to develop approximately 53 Acres located east of Grand Prairie Parkway and south of SE Pleasant View Drive. Total developer investment is approximately $100M. The developers intend to construct the infrastructure needed to facilitate more housing options in the City of Waukee and provide necessary access to services for the development, while improving the transportation network in Waukee. The infrastructure improvements and associated right-of-way will be dedicated to the City. Infrastructure improvements are expected to cost the developer $10M and include the following: SE Westown Parkway Improvements 98th Street/SE Waco Place Improvements SE Glacier Trail South Trail Improvements SE Tall Grass Street Improvements Developer expects infrastructure construction complete by December 31, 2024. The developers plan to construct additional housing options in the City of Waukee with the construction of (4) 72 plex buildings and (2) 60 plex buildings as well as 160 townhomes and (3) 48 plex buildings. The entire housing development is expected to be completed by 2032. The proposed agreement provides economic development grants in aggregate of $9.72M for construction of the infrastructure improvements. The developers will be required to submit qualified costs and expenses to be eligible for economic development grants. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: The economic development grant will be 73.78% of the incremental taxes for a ten year period; starting the first full year the City receives tax increment. The grant will not exceed the “aggregate qualified expenses” for the infrastructure improvement. More diverse housings options and a stronger transportation network will help retain and attract employers/employees to the City of Waukee. G7 COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: Staff recommends City Council holding a public hearing to discuss a proposed development agreement with Kettlestone, LC, and Caliber Land Company, LLC RECOMMENDATION: Hold the Public Hearing. ATTACHMENTS: I. Notice of Public Hearing II. Proposed Development Agreement PREPARED BY:Jennifer Brown, Director of Economic Development REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: Dallas County News DATE OF PUBLICATION: 05/25/2023 (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 KETTLESTONE CENTRAL, L.C. AND CALIBER LAND COMPANY, LLC, 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 June 5, 2023, 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 Kettlestone Central, L.C. and Caliber Land Company, LLC (collectively the "Developers"). The Agreement would obligate the Developers to prepare lots for multi-family residential development and to construct certain Minimum Improvements (as defined in the Agreement) including Housing Units and certain Infrastructure Improvements to serve the Housing Units including streets, sanitary sewer, and storm sewer, and all related site improvements, on certain real property located within the proposed Kettlestone Residential Urban Renewal Area collectively referred to as the "Development Property", but including distinct project areas referred to as the "Project 1 Property", "Project 2 Property", "Project 3 Property", and "Project 4 Property" as defined and legally described in the Agreement, all as outlined in the proposed Agreement. In consideration of the commitments of the Developers under the Agreement, the City would agree to provide Economic Development Grants to Kettlestone Developer, under the terms and conditions set forth in the Agreement, which Economic Development Grants are proposed to include: (a)Up to 10 consecutive annual payments consisting of 73.78% of the Project 1 Tax Increment generated by construction of the Project 1 Housing Units and collected pursuant to Iowa Code Section 403.19; (b)Up to 10 consecutive annual payments consisting of 73.78% of the Project 2 Tax Increment generated by construction of the Project 2 Housing Units and collected pursuant to Iowa Code Section 403.19; (c)Up to 10 consecutive annual payments consisting of 73.78% of the Project 3 Tax Increment generated by construction of the Project 3 Housing Units and collected pursuant to Iowa Code Section 403.19; and (d)Up to 10 consecutive annual payments consisting of 73.78% of the Project 4 Tax Increment generated by construction of the Project 4 Housing Units and collected pursuant to Iowa Code Section 403.19. The Agreement provides that the cumulative total for all Economic Development Grants payments shall not exceed the lesser of (i) the amount of the Kettlestone Developer’s "Aggregate Qualified Costs" related to construction of the Infrastructure Improvements, (ii) $10,000,000, or (iii) the amount accrued under the formula outlined in the proposed Agreement, under the terms and following satisfaction of the conditions set forth in the Agreement. 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 Developers. 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 15th day of May, 2023. Rebecca D. Schuett City Clerk, City of Waukee in the State of Iowa (End of Notice) 02200018-1\21938-294