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HomeMy WebLinkAbout2023-06-05 G08 Caliber Land Company LLC, Kettlestone Central LC, IYAF Development Agreement_PHAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: June 5, 2023 AGENDA ITEM:Public Hearing a proposal to enter into a Development Agreement with Caliber Land Company, LLC; Kettlestone Central, LC; and Iowa Youth Athletic Foundation FORMAT:Public Hearing SYNOPSIS INCLUDING PRO & CON: Caliber Land Company, LLC; Kettlestone Central, LC; and Iowa Youth Athletic Foundation are proposing to develop approximately 100 Acres located east of Grand Prairie Parkway and south of SE Pleasant View Drive. The development consists of a sports complex with two (2) buildings, 12 courts and a minimum of 102,000 sf (under roof). The sports complex will require a $40M investment. Additionally, the development includes four phases of commercial development totaling a minimum investment of $80M. The sports complex will be constructed in Phase 1 with a completion date of June 1, 2025. The proposed agreement provides economic development grants to the Iowa Youth Athletic Foundation for up to 20 consecutive payments at 85% of the tax increment for each Phase of development. The maximum amount of economic development grants will not exceed $39,487,00 The development agreement also includes court time for the City. Specifically, the City will receive four (4) hours of gym time per day on six (6) courts for 52 days per year upon completion of the gym and continuing for twenty (20) years. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: The project will bring over $120M in new commercial investment as well as a new sports complex to the City of Waukee. The gym time for the City is equal to $149,760/year. If the City needs more court time IYAF will rent at 50% market rate ($60 in 2025) COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: Staff recommends City Council holding a public hearing to discuss a proposed development agreement with Caliber Land Company, LLC; Kettlestone Central, LC; and Iowa Youth Athletic Foundation RECOMMENDATION: Hold Public Hearing G8 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 CALIBER LAND COMPANY, LLC, KETTLESTONE CENTRAL, L.C., AND IOWA YOUTH ATHLETIC FOUNDATION, 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 Caliber Land Company, LLC (the "Caliber"), Kettlestone Central, L.C. (the "Kettlestone Central"), and Iowa Youth Athletic Foundation (the "IYAF"). The Agreement would obligate Caliber to construct certain "Phase 2 Commercial Improvements"; Kettlestone Central to construct certain "Phase 1 Commercial Improvements", "Phase 3 Commercial Improvements", and "Phase 4 Commercial Improvements"; and IYAF to construct certain "Arena Improvements" on certain real property within four proposed urban renewal areas within the City (planned to be considered for adoption on June 5, 2023). The Agreement would require Caliber, Kettlestone Central, and IYAF to use commercially reasonable efforts to attract commercial businesses employing individuals in their operations to locate their business operations within the Phase 1 Commercial Improvements, Phase 2 Commercial Improvements, Phase 3 Commercial Improvements, and Phase 4 Commercial Improvements. Further, the Agreement would require IYAF to operate the Arena Improvements, regularly hold athletic competitions in the Arena Improvements, and grant the City access to use basketball courts constructed as part of the Arena Improvements for a minimum number of hours at no cost to the City, permitting the City to rent additional court time at a 50% discount. In exchange for these obligations, the Agreement provides that the City would make Economic Development Grants to IYAF, using incremental tax revenues from the commercial improvements collected pursuant to Iowa Code Section 403.19, under the terms and conditions set forth in the Agreement, including: (a)Up to 20 consecutive annual payments consisting of 85% of the Phase 1 Tax Increments generated by construction of the Phase 1 Commercial Improvements. (b)Up to 20 consecutive annual payments consisting of 85% of the Phase 2 Tax Increments generated by construction of the Phase 2 Commercial Improvements. (c)Up to 20 consecutive annual payments consisting of 85% of the Phase 3 Tax Increments generated by construction of the Phase 3 Commercial Improvements. (d)Up to 20 consecutive annual payments consisting of 85% of the Phase 4 Tax Increments generated by construction of the Phase 4 Commercial Improvements. The cumulative total for all such payments shall not to exceed the lesser of $39,487,500, or the amount accrued under the formulas 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. 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) 02198763-1\21938-292