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HomeMy WebLinkAbout2024-02-20 I09 Waukee Towne Center_Pond Deed and Quality of Life ImprovementsAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: February 20, 2024 AGENDA ITEM:Consideration of approval of a resolution accepting the dedication of the phase one quality of life improvements and Outlot Y in Waukee Towne Center Plat 3 FORMAT:Resolution SYNOPSIS INCLUDING PRO & CON: As a part of the Development Agreement for the Waukee Towne Center Development located south of E Hickman Road and west of SE Alice’s Road, the City agreed to incentivize the developer by purchasing the approximately 9 acre pond that has been constructed as a part of the development as well as other site amenities including a walking trail, lighting, pedestrian bridge, amphitheater pad and landscaping. The improvements are now complete subject to the landscaping which will be completed in the Spring as well as minor punch list items. The proposed resolution provides for the acceptance of the improvements, the transaction of the property from the Developer to the City and the payment by the City for the property. Additionally, there will be an escrow account established for the remaining landscaping to be completed in the Spring and a temporary easement for the future amphitheater improvements that will be completed by the Developer. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve the resolution. ATTACHMENTS: I. Proposed Resolution II. Warranty Deed for Property III. Escrow Agreement IV. Temporary Access Agreement PREPARED BY: Brad Deets, City Administrator REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: I9 THE CITY OF WAUKEE, IOWA RESOLUTION 2024- RESOLUTION ACCEPTING THE DEDICATION OF THE PHASE ONE QUALITY OF LIFE IMPROVEMENTS AND OUTLOT Y IN WAUKEE TOWNE CENTER PLAT 3 AND AUTHORIZING OTHER ACTION PURSUANT TO THE AGREEMENT WITH WAUKEE TOWNE CENTER, LLC. 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 entered into an Amended and Restated Agreement for Private Development with Waukee Towne Center, LLC (“WTC”) and Waukee Towne Center II, LLC (“WTC II”) dated September 18, 2023 (hereinafter referred to as “Agreement”); and WHEREAS, pursuant to Section 3.3(b) of the Agreement, WTC has submitted a request to dedicate the Phase One Quality of Life Improvements and Outlot Y in Waukee Towne Center Plat 3, an Official Plat, now in and forming a part of the City of Waukee, Dallas County, Iowa (“Dedication”) together with an escrow agreement securing the completion of landscape elements that have not yet been completed due to the existing winter season; and WHEREAS, the City is willing to accept the Dedication free of any and liens and encumbrances in accordance with the Agreement, subject to completion of the remaining landscaping in accordance with the escrow agreement and the deposit of funds securing completion; and WHEREAS, pursuant to Section 8.2(a) of the Agreement, subject to Developer being and remaining in compliance with the Agreement, a payment of $2,100,000.00 dollars is to be made by the City to WTC within 30 days of the dedication of Outlot Y and the Phase One Quality of Life Improvements. NOW THEREFORE, IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF WAUKEE, IOWA that the City hereby accepts the Dedication, free of any and liens and encumbrances, in accordance with the Agreement, subject to completion of the remaining landscaping in accordance with the escrow agreement and the deposit of funds securing completion which is hereby approved. BE IT FURTHER RESOLVED, that the temporary access agreement to Waukee Towne Center, LLC to access the dedicated property for the purposes of constructing and installing Phase Two Quality of Life Improvements and other infrastructure as provided in the Agreement is hereby approved. BE IT FURTHER RESOLVED, that following recordation of the conveyance documents for the Dedication with the Dallas County Recorder and the deposit of the funds contemplated by the escrow agreement, the City is authorized to make the payment contemplated in Section 8.2(a) of the Agreement. The funds may be released and dispersed as directed by Waukee Towne Center, LLC. Passed and adopted this 20th day of February, 2024. Courtney Clarke, Mayor Attest: Rebecca D. Schuett, City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN R. Charles Bottenberg Chris Crone Rob Grove Anna Bergman Pierce Ben Sinclair WARRANTY DEED Recorder’s Cover Sheet Preparer Information: Nathan J. Barber Belin McCormick, P.C. 666 Walnut Street, Suite 2000 Des Moines, IA 50309 Phone: 515-243-7100 Taxpayer Information: City of Waukee 230 W. Hickman Road Waukee, IA 50263 Return Document To: City of Waukee 230 W. Hickman Road Waukee, IA 50263 Grantor: Waukee Towne Center, LLC Grantee: City of Waukee Legal Description: See Page 2 Document or instrument number of previously recorded documents: N/A WARRANTY DEED For the consideration of One Dollar ($1.00) and other valuable consideration, Waukee Towne Center, LLC, an Iowa limited liability company, does hereby Convey and Warrant to the City of Waukee, the following described real estate in Dallas County, Iowa: Outlot Y in Waukee Towne Center Plat 3, an Official Plat, now included in and forming a part of the City of Waukee, Dallas County, Iowa. Subject to easements, covenants and restrictions of record. No transfer tax, groundwater hazard statement or declaration of value required. Iowa Code section 428A.2(6). There is no known private burial site, well, solid waste disposal site, underground storage tank, hazardous waste, or private sewage disposal system on the property as described in Iowa Code Section 558.69, and therefore the transaction is exempt from the requirement to submit a groundwater hazard statement. Grantor does Hereby Covenant with Grantee, and successors in interest, that Grantor holds the real estate by title in fee simple; that it has good and lawful authority to sell and convey the real estate; that the real estate is free and clear of all liens and encumbrances except as may be above stated; and Grantor Covenants to Warrant and Defend the real estate against the lawful claims of all persons except as may be above stated. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, and as masculine or feminine gender, according to the context. Dated: ____________________, 2024. [One (1) Signature Page Follows] Signature Page – Warranty Deed WAUKEE TOWNE CENTER, LLC, an Iowa limited liability company, _______________________________________ Nick Pierson, Manager STATE OF IOWA ) ) ss: COUNTY OF ____________) This record was acknowledged before me on ________________________, 2024 by Nick Pierson as Manager for Waukee Towne Center, LLC. ____________________________________ Notary Public in and for said State of Iowa (4337293.1).docx ESCROW AGREEMENT This Escrow Agreement (the “Agreement”) is entered into as of the ____ day of February, 2024, by and among Waukee Towne Center, LLC (“WTC”), and City of Waukee (“City”). All capitalized terms not otherwise defined herein, shall have the meaning ascribed to them in the Development Agreement (as hereinafter defined). WHEREAS, WTC and Waukee Towne Center II, LLC, collectively as Developers, and City entered into an Amended and Restated Agreement for Private Development dated September 18, 2023 (as amended, the “Development Agreement”), concerning the development of the Waukee Towne Center in Waukee, Iowa. WHEREAS, the Development Agreement in part requires WTC to make certain improvements (the “Outlot Improvements”) to Outlot Y (as defined in the Development Agreement) and, upon completion of the Outlot Improvements, to dedicate Outlot Y to the City ;and WHEREAS, the Development Agreement provides that within 30 days following the dedication of Outlot Y to the City the City shall pay WTC $2,100,000 (the “Payment”); WHEREAS, WTC has completed the Outlot Improvements except for the landscaping and the completion of seeding and mulching of all disturbed areas (the “Incomplete Items”), and the estimated cost to complete the Incomplete Items is $134,000.00; WHEREAS, City and WTC have agreed to complete the dedication of Outlot Y provided WTC agrees to escrow $154,100.00 (the “Escrow Funds”) with Brick Gentry, P.C. (the “Escrow Agent”), to be used to ensure the completion of the Incomplete Items as more specifically provide herein; and WHEREAS, the Escrow Agent has agreed to serve as Escrow Agent, subject to the terms of this Agreement. NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1.Incorporation of Recitals. The above and foregoing Recitals, including all defined terms set forth therein, are incorporated into this Agreement. Any initially capitalized terms which are used, but not otherwise expressly defined in this Agreement will have the meanings specified in the Contract. 2.WTC agrees to complete the Incomplete Items as soon as practicable following the commencement of planting season, but in no event later than 180 days from the deposit of Escrow Funds with the Escrow Agent. 3.Deposit of the Escrow Funds. Concurrently with the dedication of Outlot Y, WTC agrees to deposit the Escrow Funds with the Escrow Agent and that the Escrow Funds so deposited are to be held and disbursed to WTC and/or City, as applicable, by the Escrow Agent strictly in accordance with the terms and provisions of this Agreement. The Escrow Funds will not be held in escrow in an interest bearing account. 4.Disbursement of Escrow Funds. The Escrow Funds shall remain in escrow for a period of one hundred and eighty (180) days from date of this Agreement (the “Term”). During the Term, the Escrow Funds shall be released to WTC upon completion of the Incomplete Items. Upon completion and acceptance WTC shall provide to City reasonable substantiating proof of completion and acceptance of the Incomplete Items. In the event City does not object to said disbursement within five (5) calendar days from the date such request is delivered (or first rejected), then Escrow Agent shall be and is hereby authorized and directed to release the Escrow Funds to WTC. In the event WTC fails to complete the Incomplete Items during the Term, then such portions of the Escrow Funds necessary to complete the remaining Incomplete Items, plus 15%, shall be released to City to be used to pay for the completion of the Incomplete Items. 5.Dispute. If there is a disagreement between WTC and City concerning the Escrow Funds, Escrow Agent may refuse to comply with the parties' claims or demands so long as the disagreement continues. In so refusing Escrow Agent shall make no delivery or other disposition of the Escrow Funds, shall be liable to no one for such refusal, and shall be entitled to continue to refrain from acting until (i) the right of the adverse claimants shall have been finally adjudicated in a court of competent jurisdiction or an action for interpleader has been commenced in which case Escrow Agent may pay the Escrow Funds to the Court and be released from further liability for the Escrow Funds, or (ii) WTC and City have notified Escrow Agent in writing that they have settled their differences. 6.Notices. The parties agree that all notices and other communications which may be or are required to be given hereunder shall be in writing and shall be deemed to have been properly given and received on the date: (i)delivered by electronic mail (e.g. email), with acknowledgement, (ii) delivered in person, (iii) deposited in the United States mail, registered or certified, return receipt requested, postage prepaid, or (iv) deposited prepaid with a nationally recognized overnight courier, to the addresses set forth in the Development Agreement. Any party may change the address(es) to which they wish notices to be sent by delivering at least ten (10) days’ prior written notice of the change of address to the other parties in accordance with the terms of this Section. 7.Satisfaction of Obligations. In all events, upon the Escrow Agent’s final delivery of the Escrow Funds in accordance with the terms and conditions of this Agreement, the obligations of the parties under this Agreement shall be deemed fully satisfied and completed. 8.Dispute Resolution. In the event of a dispute or conflicting demands for the Escrow Funds or any portion thereof, the Escrow Agent may at its option continue to hold the Escrow Funds until obtaining: (a) a court order directing its payment; or (b) it may tender the Escrow Funds into the court in connection with any appropriate proceeding to determine the rights and obligations of the parties hereunder. Notwithstanding, the parties further agree that the Escrow Agent may, at its option, require the receipt, release and authorization in writing of all parties before paying money or delivering or redelivering documents or property to any party or to third parties. 9.Indemnification of Escrow Agent. The parties jointly and severally agree to indemnify, defend, and hold harmless the Escrow Agent against any and all losses, liabilities, costs (including legal fees), and other expenses in any way incurred by the Escrow Agent in connection with or as a result of any disagreement between the WTC and City under this Agreement, unless caused by the negligence, bad faith, or willful misconduct of the Escrow Agent. 10.Consideration. WTC shall be responsible for any fees of the Escrow Agent for undertaking to perform its obligations hereunder. 11.Counterparts. This Agreement may be executed in counterparts, each of which, when taken together, shall constitute one and the same document. A facsimile signature of any party shall constitute an original signature of such party for all purposes. The parties hereto have executed this Agreement as of the date and year first written above. [EXECUTION ON FOLLOWING PAGE.] SIGNATURE PAGE WAUKEE TOWNE CENTER, LLC, a Iowa limited liability company By: _________________, Manager (SEAL) CITY OF WAUKEE, IOWA By: ________________________________ Mayor ATTEST: By: ____________________________ City Clerk BELIN MCCORMICK, P.C. By: Nathan Barber, Shareholder TEMPORARY CONSTRUCTION AND ACCESS AGREEMENT KNOW ALL PERSONS BY THESE PRESENTS that City of Waukee, Iowa (hereinafter called “Grantor”), as owner of Outlot Y in Waukee Towne Center Plat 3, an Official Plat, now included in and forming a part of the City of Waukee, Dallas County, Iowa (the “Grantor’s Property”), for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, does hereby convey unto Waukee Towne Center, LLC (hereinafter called “Grantee”) a license for temporary construction and access and right-of-way under, over, on, through, across and within the following-described real estate: Access Areas shown in Yellow on Exhibit A hereto (hereinafter called “Access Areas”), for the purpose of allowing Grantee access to the Access Areas during the construction and maintenance of stormwater outlets and amphitheater to be located in part on the Grantor’s Property as contemplated in the Amended and Restated Agreement for Private Development between the parties dated September 18, 2023 (the “Improvements”). This Agreement shall be subject to the following terms and conditions: 1.INDEMNITY. Grantee shall 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, and access, contemplated by virtue of this Agreement, including but not limited to attorney’s fees and expenses incurred by the City in defending itself with regard any such claims, demands, suits or liability. 2. DURATION OF AGREEMENT. The rights of Grantee hereunder shall commence after the submission, review and approval by the City of the plans and specifications for the Improvements and the issuance of any and all required permits and shall expire without further action of the parties on the first to occur of Grantee’s completion of the Improvements or May 1, 2028. 3. CHANGE OF GRADE. Grantor and its successors and assigns shall not change the grade, elevation or contour of any part of the Access Areas. 4. OBSTRUCTIONS PROHIBITED. Grantor and its successors and assigns shall not cause or permit any obstruction, planting or material to be placed under, over, on, through, across or within the Access Areas which could obstruct, impede, or otherwise interfere with the usage of the Access Areas. 5. OBLIGATIONS OF GRANTEE. Grantee shall be responsible for all costs and expenses in any way associated with the completion of the Improvements. Grantee shall promptly pay for any and all labor and materials used in completing the Improvements and shall not allow or otherwise permit any mechanics or other liens to be asserted or otherwise effect any property owned by Grantor, including but not limited to the Access Areas. 6.INSURANCE REQUIREMENTS. Grantee will provide and maintain or cause to be maintained at all times during the process of Improvements in the Access Areas: i.Builder's risk insurance, written on the so-called "Builder's Risk-Completed Value Basis," in an amount equal to one hundred percent (100%) of the insurable 2 value of the Improvements at the date of completion, and with coverage available in non-reporting form on the so- called "all risk" form of policy. ii.Comprehensive general liability insurance (including operations, contingent liability, operations of contractors and subcontractors, completed operations, and contractual liability insurance) with limits against bodily injury and property damage of at least $1,000,000 for each occurrence. The City shall be named as an additional insured for the City's liability or loss arising out of or in any way associated with the project and arising out of any act, error, or omission of Grantee, its directors, officers, shareholders, contractors, and subcontractors or anyone else for whose acts the City may be held responsible (with coverage to the City at least as broad as that which is provided to Developer and not lessened or avoided by endorsement). The policy shall contain a "severability of interests" clause and provide primary insurance over any other insurance maintained by the City. iii.Workers' compensation insurance with at least statutory coverage. iv.Grantee shall assure that any and all contractors or subcontractors performing work or providing materials in the Access Areas have and maintain the insurance required in sections 6(ii) &(iii) that meet or exceed the required limits. “Grantor” City of Waukee, Iowa By: Courtney Clarke, Mayor Address: 230 W. Hickman Road, Waukee, IA 50263 “Grantee” Waukee Towne Center, LLC By: Print Name Print Title ` Address: 3 Exhibit A - Access Areas