HomeMy WebLinkAbout2024-05-06 H02B Habitat for Humanity Development Agreement and Option to PurchaseAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: May 6, 2024
AGENDA ITEM:Consideration of approval of a resolution making final determination on
potential sale of interest in real property and approving and authorizing
execution of an Option Agreement and Development Agreement by and
between the City of Waukee and Greater Des Moines Habitat for Humanity,
Inc. within the North Waukee Residential Urban Renewal Area
FORMAT:Resolution
SYNOPSIS INCLUDING PRO & CON: Habitat for Humanity of Greater Des Moines has
proposed developing 48 affordable townhome units on the northern half of the parcel near Douglas
Parkway and North Warrior Ln. The negotiated development agreement lays out all of the
requirements for the City and for the developer. Should Habitat abide by the terms in the development
agreement, the option to purchase would allow Habitat to purchase this property for $1.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: The City purchased the entire
13.6 acre parcel for $900,500. This resolution relates to the northern half and
should Habitat for Humanity abide by the terms of the development
agreement, the City has agreed to allow them to purchase that land for $1. The
amended urban renewal plan allows the City of Waukee to provide up to
$500,000 in tax increment rebate incentive for this project.
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT:
RECOMMENDATION: Staff recommends approval
ATTACHMENTS: I. Proposed Resolution
II. Development Agreement
III. Option to Purchase Agreement
PREPARED BY: Nick Osborne
REVIEWED BY: Nick Osborne
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION:
DATE OF PUBLICATION:
H2B
3
RESOLUTION NO. ______
RESOLUTION MAKING FINAL DETERMINATION ON
POTENTIAL SALE OF INTEREST IN REAL PROPERTY AND
APPROVING AND AUTHORIZING EXECUTION OF AN
OPTION AGREEMENT AND A DEVELOPMENT
AGREEMENT BY AND BETWEEN THE CITY OF WAUKEE
AND GREATER DES MOINES HABITAT FOR HUMANITY,
INC. WITHIN THE NORTH WAUKEE RESIDENTIAL URBAN
RENEWAL AREA
WHEREAS, by Resolution No. 2020-429, adopted November 16, 2020, this Council
found and determined that certain areas located within the City are eligible and should be
designated as an urban renewal area under Iowa law, and approved and adopted the North
Waukee Residential Urban Renewal Plan (the "Plan" or "Urban Renewal Plan") for the North
Waukee Residential Urban Renewal Area (the "Area" or "Urban Renewal Area") described
therein, which Plan is on file in the office of the Recorder of Dallas County; and
WHEREAS, the Plan has subsequently been amended by an Amendment No. 1 adopted
in 2023, and is expected to be amended by an Amendment No. 2 on May 6, 2024; and
WHEREAS, it is desirable that properties within the Area be redeveloped as part of the
overall redevelopment area covered by said Plan; and
WHEREAS, such Plan provides for, among other things, the disposition of property for
private development as a proposed urban renewal action; and
WHEREAS, the City of Waukee (the "City") has received a proposal from Greater Des
Moines Habitat for Humanity, Inc. ("Habitat"), in the form of a proposed Option Agreement and
a proposed Development Agreement (collectively the "Agreements") by and between the City
and Habitat, pursuant to which, among other things, the City would agree to sell certain City-
owned real property within the Urban Renewal Area (the "Property") to Habitat for $1.00 and in
consideration of Habitat’s other obligations under the Agreements, which property is legally
described as follows:
Part of Outlots "X" and "Z" in PRAIRIE ROSE PLAT 2, an Official Plat, and part
of Outlot "Z" in PRAIRIE ROSE PLAT 6, an Official Plat, all now included in
and forming a part of the City of Waukee, Dallas County, Iowa, being more
particularly described as follows:
Commencing at the Northeast corner of said Outlot "X" in PRAIRIE ROSE
PLAT 2; thence South 00°(degrees) 22'(minutes) 49"(seconds) West, 241.78 feet
along the East line of said Outlot "X" to the Point of Beginning; thence continuing
South 00°22'49" West, 622.89 feet along the East line of said Outlot "X"; thence
South 45°03'06" West, 35.56 feet along the Southeast line of said Outlot "X";
thence South 89°43'24" West, 262.66 feet along the South lines of said Outlots
"X" and "Z" in PRAIRIE ROSE PLAT 2; thence North 00°16'36" West, 57.22
feet; thence North 42°16'05" West, 144.69 feet; thence North 09°44'56" East,
177.84 feet to and along the West line of said Outlot "X" in PRAIRIE ROSE
PLAT 2; thence North 07°37'40" West, 68.66 feet along the West line of said
Outlot "X"; thence North 18°12'04" East, 80.92 feet along the West line of said
Outlot "X"; thence North 02°38'24" West, 107.23 feet; thence North 23°54'23"
East, 81.25 feet; thence North 45°18'15" East, 66.01 feet to the West line of said
Outlot "X" in PRAIRIE ROSE PLAT 2; thence North 18°12'04" East, 31.51 feet
along the West line of said Outlot "X"; thence South 89°37'11" East, 162.83 feet;
thence South 46°09'35" East, 132.67 feet to the point of beginning.
WHEREAS, because the Property is located within an urban renewal area, the City’s sale
of the Property is subject to the provisions of Iowa Code Section 403.8; and
WHEREAS, by Resolution adopted April 1, 2024, this Council: (i) set forth its proposal
to dispose of interests in the Property; (ii) approved a reasonable competitive bidding procedure
to seek competing bids for the Property; (iii) determined that the Agreements offered “fair value”
for the Property; and (iv) gave notice of its intention to accept the Agreements with Greater Des
Moines Habitat for Humanity, Inc. if no qualified competing proposals were received; and
WHEREAS, the Agreements would require Habitat to construct 48 townhome-style
residential units on the Property to be sold to low and moderate income families, along with
related site improvements (“Project”); and
WHEREAS, by publication of a notice of competitive bidding, the City invited
competing bids for the Property be submitted no later than May 6, 2024 and no qualifying
competing proposals were received prior to this date; and
WHEREAS, Iowa Code Chapter 403 authorizes cities to dispose of property in
furtherance of the objectives of an urban renewal project and to take other actions as may be
necessary to carry out the purposes of said Chapter; and
WHEREAS, the Agreements also contemplate the City providing Habitat annual tax
increment rebates derived from the Project, up to an aggregate amount not to exceed $500,000,
subject to the terms and conditions of the Agreements; and
WHEREAS, the Council has determined that the Agreement are 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 Agreements and the City’s performance thereunder are in
furtherance of appropriate economic development activities and objectives of the City within the
meaning of Chapters 15A and 403 of the Iowa Code taking into account any or all of the factors
set forth in Chapter 15A, 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
Agreements, which includes the potential sale of the Property, and has considered the extent of
objections received from residents or property owners as to said proposed Agreements; 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.The Council finds that disposal of interests in the Property to the Developer as
set forth in the Agreements will benefit the health, safety and welfare of, and is in the best
interests of the residents of the City. The Council further finds that transfer of the Property will
promote economic development in the City and that these benefits, together with the other
consideration provided for in the Agreement, constitute fair value for the disposal of interests in
the Property under Section 403.8, Code of Iowa.
Section 2.The proposal to sell the Property to the Developer pursuant to the terms of the
proposed Agreements is hereby approved.
Section 3.That the performance by the City of its obligations under the Agreements,
including but not limited to selling the Property to the Developer under the terms set forth in the
Agreement and the provision of tax increment rebates, 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 Agreements and the City’s performance thereunder are in furtherance of appropriate
economic development activities and objectives of the City within the meaning of Iowa Code
Chapters 15A and 403, taking into account the factors set forth therein.
Section 4.That the form and content of the Agreements, 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 Agreements 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 Agreements, 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 Agreements
as executed.
PASSED AND APPROVED this 6th day of May, 2024.
Mayor
ATTEST:
City Clerk