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