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HomeMy WebLinkAbout2023-06-05 H03B Caliber Land Company LLC, Kettlestone Central LC, IYAF Development Agreement-ResolutionAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: June 5, 2023 AGENDA ITEM:Consideration of approval of a resolution approving and authorizing execution of a Development Agreement by and among the City of Waukee; Caliber Land Company, LLC; Kettlestone Central, LC; and Iowa Youth Athletic Foundation FORMAT:Resolution 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 approval of the development agreement by and among the City of Waukee; Caliber Land Company, LLC; Kettlestone Central, LC; and Iowa Youth Athletic Foundation RECOMMENDATION: Approve the Resolution H3B ATTACHMENTS: I. Proposed Resolution II. Proposed Development Agreement PREPARED BY:Jennifer Brown, Director of Economic Development REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: RESOLUTION NO. ______ RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF WAUKEE, CALIBER LAND COMPANY, LLC, KETTLESTONE CENTRAL, L.C., AND IOWA YOUTH ATHLETIC FOUNDATION WHEREAS, by resolutions adopted June 5, 2023, this Council found and determined that certain areas located within the City are eligible and should be designated as urban renewal areas under Iowa law, and approved and adopted the following urban renewal areas, including the (1) Kettlestone Phase 1 Commercial Urban Renewal Plan (the "Phase 1 Plan") for the Kettlestone Phase 1 Commercial Urban Renewal Area (the "Phase 1 Urban Renewal Area") described therein; (2) the Kettlestone Phase 2 Commercial Urban Renewal Plan (the "Phase 2 Plan") for the Kettlestone Phase 2 Commercial Urban Renewal Area (the "Phase 2 Urban Renewal Area") described therein; (3) the Kettlestone Phase 3 Commercial Urban Renewal Plan (the "Phase 3 Plan") for the Kettlestone Phase 3 Commercial Urban Renewal Area (the "Phase 3 Urban Renewal Area") described therein; and (4) the Kettlestone Phase 4 Commercial Urban Renewal Plan (the "Phase 4 Plan") for the Kettlestone Phase 4 Commercial Urban Renewal Area (the "Phase 4 Urban Renewal Area") described therein; and WHEREAS, it is desirable that properties within the respective urban renewal areas be redeveloped as proposed in the Phase 1 Plan, Phase 2 Plan, Phase 3 Plan, and Phase 4 Plan (collectively, the "Urban Renewal Plans"); and WHEREAS, the City has received a proposal from Caliber Land Company, LLC ("Caliber"), Kettlestone Central, L.C. ("Kettlestone Central"), and Iowa Youth Athletic Foundation ("IYAF"), in the form of a proposed Development Agreement (the "Agreement") concerning the development of certain real property located within the Phase 1 Urban Renewal Area, Phase 2 Urban Renewal Area, Phase 3 Urban Renewal Area, and Phase 4 Urban Renewal Area; and WHEREAS, pursuant to the Agreement, among other things, Caliber would agree to construct certain "Phase 2 Commercial Improvements" and Kettlestone Central would agree to construct certain "Phase 1 Commercial Improvements", "Phase 3 Commercial Improvements", and "Phase 4 Commercial Improvements" and, further, IYAF would agree to construct certain "Arena Improvements", all on distinct portions of the "Development Property" (as defined and legally described in the Agreement); and WHEREAS, the Agreement requires 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; and WHEREAS, the Agreement requires 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; and WHEREAS, in consideration of the commitments by Caliber, Kettlestone Central, and IYAF under the Agreement, the City would agree to provide Economic Development Grants to IYAF, under the terms and conditions set forth in the Agreement, which Economic Development Grants are proposed to include: (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 and collected pursuant to Iowa Code Section 403.19; (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 and collected pursuant to Iowa Code Section 403.19; (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 and collected pursuant to Iowa Code Section 403.19; (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 and collected pursuant to Iowa Code Section 403.19; and WHEREAS, the Agreement provides that the cumulative total for all Economic Development Grants payments shall not to exceed the lesser of $39,487,500, or 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; and WHEREAS, Chapters 15A and 403, Code of Iowa, 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 Chapters, 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 Plan and 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 any or all of the factors set forth in Chapter 15A, Code of Iowa, to wit: a. Businesses that add diversity to or generate new opportunities for the Iowa economy should be favored over those that do not. b. Development policies in the dispensing of the funds should attract, retain, or expand businesses that produce exports or import substitutes, or which generate tourism- related activities. c. Development policies in the dispensing or use of the funds should be targeted toward businesses that generate public gains and benefits, which gains and benefits are warranted in comparison to the amount of the funds dispensed. d. Development policies in dispensing the funds should not be used to attract a business presently located within the state to relocate to another portion of the state unless the business is considering in good faith to relocate outside the state or unless the relocation is related to an expansion which will generate significant new job creation. Jobs created as a result of other jobs in similar Iowa businesses being displaced shall not be considered direct jobs for the purpose of dispensing funds; and WHEREAS, pursuant to notice published as required by law, this Council has held a public meeting and hearing upon the proposal to approve and authorize execution of the Agreement and has considered the extent of objections received from residents or property owners as to said proposed Agreement; and, accordingly the following action is now considered to be in the best interests of the City and residents thereof. NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF WAUKEE IN THE STATE OF IOWA: Section 1.That the performance by the City of its obligations under the Agreement, including but not limited to making of grants to the IYAF in connection with the development of the Development Property under the terms set forth in the Agreement, be and is hereby declared to be a public undertaking and purpose and in furtherance of the Plan and 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. Section 2.That the form and content of the Agreement, the provisions of which are incorporated herein by reference, be and the same hereby are in all respects authorized, approved and confirmed, and the Mayor and the City Clerk be and they hereby are authorized, empowered and directed to execute, attest, seal and deliver the Agreement for and on behalf of the City in substantially the form and content now before this meeting, but with such changes, modifications, additions or deletions therein as shall be approved by such officers, and that from and after the execution and delivery of the Agreement, the Mayor and the City Clerk are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Agreement as executed. PASSED AND APPROVED this 5th day of June, 2023. Mayor ATTEST: City Clerk