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HomeMy WebLinkAbout2024-08-05 I01G_02 Stivers DA_First AmendmentAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: August 5, 2024 AGENDA ITEM:Consideration of approval of a resolution approving and authorizing execution of a First Amendment to the Agreement for Private Development by and among the City of Waukee, Stivers Iowa Real Estate, LLC, and Ed Stivers Ford, Inc FORMAT:Consent SYNOPSIS INCLUDING PRO & CON: Stivers Iowa Real Estate, LLC, and Ed Stivers Ford (employer), Inc. is expanding the existing business at 1300 SE Stone Ridge DR. The proposed $9.5M development includes a new 36,600 square foot Ford Pro Service Center which will focus on upfitting and servicing commercial vehicles. The proposed amendment modifies the minimum improvements as it relates to charging station requirements. The amendment changes the Developer’s obligations related to supplying and operating EV chargers to section 6.10, a new section in the agreement. Section 6.10. requires the developer to install four (4) NEMA chargers for servicing EV vehicles, (ii) one (1) level three fast charger, and (iii) one (1) level two charger. The installation of the chargers shall be completed by May 15, 2025. There are no other changes to incentives or job creation/retention requirements. Additional Information The development agreement includes a Business Retention and Expansion incentive with Ed Stivers Ford, Inc receiving 50 % of the tax increment for three years. The economic development grants will be capped at $330,000. The agreement requires Ed Stivers Ford, Inc. to retain 112 fulltime and 9 part-time jobs and create 15 new full-time jobs no later than August 31, 2024. Ed Stivers Ford must maintain a monthly average of 127 full-time and 9 part-time jobs at operations at 1450 Hickman Rd. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: This project aligns with the City’s policy to support existing businesses expanding in Waukee, especially those businesses investing in target industries like green technology. The incentive is consistent with the City’s recently adopted Business Retention and Expansion policy. COMMISSION/BOARD/COMMITTEE COMMENT: I1G2 STAFF REVIEW AND COMMENT: RECOMMENDATION: Approval of the Resolution ATTACHMENTS: Resolution 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 FIRST AMENDMENT TO THE AGREEMENT FOR PRIVATE DEVELOPMENT BY AND AMONG THE CITY OF WAUKEE, STIVERS IOWA REAL ESTATE, L.L.C., AND ED STIVERS FORD, INC. WHEREAS, the City of Waukee, Iowa ("City"), Stivers Iowa Real Estate, L.L.C. (the "Developer"), and Ed Stivers Ford, Inc. (the "Employer") previously entered into an Agreement for Private Development dated August 21, 2023 ("Agreement"), pursuant to which, among other things, the Developer agreed to construct certain Minimum Improvements (as defined in the Agreement); the Employer agreed to occupy and operate its business on the Development Property (as defined in the Agreement); and the City agreed to provide certain incentives in exchange for Developer’s and Employer’s obligations, under the terms and conditions of the Agreement; and WHEREAS, the City, Developer, and Employer desire to amend the Agreement pursuant to a proposed First Amendment to the Agreement (the "Amendment") to modify the description of the Minimum Improvements to accommodate changes to the Ford EV program requirement; 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 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 in furtherance of the Urban Renewal Law and, further, that the Agreement, as amended by the 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 THE CITY OF WAUKEE IN THE STATE OF IOWA: Section 1.That the performance by the City of its obligations under the Amendment and the Agreement, as amended, be and is hereby declared to be a public undertaking and purpose and in furtherance of the Urban Renewal Law and, further, that the Agreement, as amended by the 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 the factors set forth therein. Section 2.That the form and content of the 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 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 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 Agreement, as amended, and the Amendment as executed. PASSED AND APPROVED this 5th day of August, 2024. Mayor ATTEST: City Clerk 1 Execution Version FIRST AMENDMENT TO THE AGREEMENT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE CITY OF WAUKEE, IOWA AND STIVERS IOWA REAL ESTATE, L.LC. THIS FIRST AMENDMENT (“Amendment”) to that certain Agreement for Private Development by and between the CITY OF WAUKEE, IOWA (“City”), STIVERS IOWA REAL ESTATE, L.L.C., an Iowa limited company (“Developer”), and ED STIVERS FORD INC., an Iowa corporation (“Employer”), dated August 21, 2023 (“Agreement”), is made as of the _____ day of ______________, 2024, by and between the City, Developer, and the Employer. WITNESSETH: WHEREAS, the City, Developer, and Employer previously executed the Agreement and recorded a Memorandum of the Agreement at Book 2023 Page 12459 in the records of the Recorder of Dallas County, Iowa; and WHEREAS, pursuant to the Agreement, the Developer agreed to construct certain Minimum Improvements on certain real property located within the Waukee Consolidated Urban Renewal Area; and WHEREAS, the Employer agreed to occupy and operate its business in the Minimum Improvements, including employing a minimum number of employees in those operations; and WHEREAS, the Developer and Employer have requested that the description of the Minimum Improvements as described in Exhibit B be modified to accommodate changes to the Ford EV program requirement; and WHEREAS, the City, Developer, and Employer desire to amend the Agreement to provide for the foregoing changes, as set forth in this Amendment. NOW THEREFORE, it is agreed by the City, the Developer, and the Employer: 1. Definitions. All capitalized words used herein and not specifically defined shall have the same definitions as in the Agreement. 2. Changes to Exhibit B. The description of the Minimum Improvements described in Exhibit B is hereby replaced in its entirety with the following: Minimum Improvements means the construction of a 36,600 square foot commercial vehicle service center on the Development Property adjacent to Developer’s existing facility. The construction of the Minimum Improvements will 2 Execution Version be completed by August 31, 2024. Construction costs are expected to be approximately $9,500,000. See Exhibit B-1 for preliminary diagrams of the Minimum Improvements. 3. Charger Obligations. In order to accommodate changes to Developer’s obligations related to supplying and operating EV chargers as part of the Project, the following changes are being made to the Agreement: a. The following NEW Section 6.10 is added to the Agreement: Section 6.10. EV Chargers. As part of the Project, Developer shall install on the Development Property: (i) four (4) NEMA chargers for servicing EV vehicles, (ii) one (1) level three fast charger, and (iii) one (1) level two charger. The installation of the chargers shall be completed by May 15, 2025. The level three fast charger and the level two charger shall be operational and made available to customers and the general public at least 72 hours per week. b. The definition of Project in Section 1.1 of the Agreement shall be replaced in its entirety with the following: Project means the construction of the Minimum Improvements and installation of the EV chargers on the Development Property, and the retention and creation of jobs in operations on the Development Property and at 1450 East Hickman, all as set forth in this Agreement. 4. No Further Modifications. Except as modified by this Amendment, all covenants, agreements, terms, and conditions of the Agreement shall remain in full force and effect and are hereby in all respects ratified and affirmed. 5. Counterparts. This Amendment may be executed in two or more counterparts, each of which together shall be deemed an original, but all of which together shall constitute one and the same instrument. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “pdf” signature page were an original thereof. IN WITNESS WHEREOF, the City has caused this Amendment to be duly executed in its name and behalf by its Mayor and its seal to be hereunto duly affixed and attested by its City Clerk, Developer, and Employer have caused this Amendment to be duly executed in its name and behalf by its authorized representatives, all on or as of the day first above written. [Remainder of this page intentionally left blank. Signature pages to follow.] 3 Execution Version (SEAL) CITY OF WAUKEE, IOWA By: __________________________ Courtney Clarke, Mayor ATTEST: By: ________________________ Rebecca D. Schuett, City Clerk STATE OF IOWA ) ) SS COUNTY OF DALLAS ) On this ________ day of ________________________, 2024, before me a Notary Public in and for said State, personally appeared Courtney Clarke and Rebecca D. Schuett, to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Waukee, Iowa, a Municipality created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipality, and that said instrument was signed and sealed on behalf of said Municipality by authority and resolution of its City Council, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipality by it voluntarily executed. ___________________________________ Notary Public in and for the State of Iowa [Signature page to Amendment – City of Waukee]