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HomeMy WebLinkAbout2024-03-18 Resolution 2024-125_Second Amendment and Assignment of Development Agreement, Kettleview LLCRESOLUTION NO. 2024-125 RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A SECOND AMENDMENT TO AND ASSIGNMENT OF AMENDED AND RESTATED AGREEMENT FOR PRIVATE, DEVELOPMENT BY AND BETWEEN THE CITY OF WAUKF,F, AND KEfTLEVIEW, L.L.C. WHEREAS, the City of Waukee, Iowa ("City") and Kettleview, L.L.C. ("Original Developer") previously entered into an Agreemcnt for Private Development dated May 20, 2019 ("Original Agreement") regarding the development of certain property within the Consolidated Urban Renewal Area ("Development Property"), which Original Agreement was replaced in its entirety by an Amended and Restated Agreement between the City and Developer dated November 4, 2019 ("Amended and Restated Agreement")-, and WIIEREAS, the Amended and Restated Agreement included an Amended and Restated Minimum Assessment Agreement between the City, Original Developer, and Lush Properties, LLC ("Lush") also dated November 4, 2019 ("Amended and Restated Minimum Assessment Agreement"), which replaced the minimum assessment agreement executed in connection with the Original Agreement in its entirety; and WHEREAS, the City and Original Developer executed an Amendment to the Amended and Restated Agreement ("First Amendment") dated .Lune 15, 2020, pursuant to which the parties made a number of changes to the terms of the Amended and Restated Agreement and to the terms of the Amended and Restated Minimum Assessment Agreement; and WHEREAS, Farmers State Bank ("Bank") has claimed an interest in the Economic Development Grants to be paid under the Amended and Restated Agreement, as previously amended, pursuant to certain loan documents as described in a Petition for Foreclosure filed in the Iowa District Court for Dallas County on .Tune 23, 2023 ("Foreclosure Petition"); and WHEREAS, the parties now desire to amend the Amended and Restated Agreement pursuant to a proposed Second Amendment to and Assignment of Amended and Restated Agreement (the "Second Amendment") to make additional changes to the Amended and Restated Agreement, terminate the Amended and Restated Minimum Assessment Agreement, and assign Original Developer's rights and obligations under the Amended and Restated Agreement to the Bank; and WHEREAS, Knapp Properties, L.C., as Receiver, has the authority to enter into the Second Amendment on behalf of the Original Developer as set out in the Order Appointing Receiver dated June 23, 2023 filed in the Foreclosure Petition, 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 Second Amendment 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, further, that the Amended and Restated Agreement, as amended by the Second Amendment, 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. NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF TI IE CITY OF WAUKEE IN THE STATE OF IOWA: Section 1. That the performance by the City of its obligations under the Second Amendment and the Amended and Restated Agreement, as amended, be and is hereby declared to be a public undertaking and purpose and, further, that the Second Amendment, the Amended and Restated Agreement, as amended, 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 Second Amendment, 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 Second Amendment 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 Second Amendment, 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 Amended and Restated Agreement, as amended, and the Second Amendment as executed. PASSED AND APPROVED this 181h day of March, 2024. ATTEST: //A/&" 0! AAmt�- City Clerk RESULTS OF VOTE: AYE R. Charles Bottenberg X Chris Crone X Rob Grove X Anna Bergman Pierce X Ben Sinclair X Mayo NAY ABSENT ABSTAIN