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Home My WebLink About2024-09-16 I01G_03 AP North DA_First Amendment_Set PHAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: September 16, 2024 AGENDA ITEM:Consideration of approval of a resolution fixing date for a public hearing on the proposal to enter into a First Amendment to the Agreement for Private Development with AP North, L.C. FORMAT:Consent SYNOPSIS INCLUDING PRO & CON: Staff has been working with AP North, L.C. to amend the existing development agreement which would modify economic development grants to include CIHC tax increment collected by the City with respect to the CIHC commercial improvements. The amendment proposes up to eleven (11) annual consecutive payments beginning in FY 26/27 at 25% for three (3) years and 50% for eight (8) years. The agreement will terminate if no tax increments are received by FY35/36. Background: AP North, LC Development Agreement includes the commercial development of 50+acres in the Kettlestone Development. Public improvements include the design and construction of a regional storm water retention pond to be dedicated to the City as public infrastructure. The pond is intended to provide storm water management for CIHC. The original agreement includes up to twelve (12) annual consecutive payments at 70% for Six years and 80% for the remaining six years with the total grant capped at $2M. The pond is complete and has been dedicated to the city. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Staff recommends holding a public hearing date. ATTACHMENTS: I. Resolution II. First Amendment to the Development Agreement PREPARED BY:Jennifer Brown, Director of Economic Development I1G3 REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: RESOLUTION NO. ______ RESOLUTION FIXING DATE FOR A PUBLIC HEARING ON THE PROPOSAL TO ENTER INTO A FIRST AMENDMENT TO THE AGREEMENT FOR PRIVATE DEVELOPMENT WITH AP NORTH, L.C., AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF WHEREAS, by Resolution No. 19-402, adopted November 4, 2019, the City approved and adopted Amendment No. 1 to the Waukee Consolidated Urban Renewal Plan (the "Plan" or "Urban Renewal Plan"), which unified the existing Gateway Economic Development Urban Renewal Area, Waukee West Urban Renewal Area, and Waukee Central Urban Renewal Area into the Waukee Consolidated Urban Renewal Area (the "Area" or "Urban Renewal Area") described therein, which Plan has been subsequently amended several times, and which Plan, as amended, is on file in the office of the Recorder of Dallas County; 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, the City of Waukee, Iowa ("City") and AP North, L.C. ("Developer") previously entered into an Agreement for Private Development dated July 10, 2023 ("Agreement"), pursuant to which, among other things, the Developer agreed to construct a regional stormwater detention pond ("Public Improvements") on certain real property located within the Waukee Consolidated Urban Renewal Area, and the City agreed to provide the Developer with certain Tax Increments derived from Commercial Improvements in exchange for Developer’s completion of the Public Improvements; and WHEREAS, the Public Improvements were intended to benefit, among other things, commercial development on certain property described in the Agreement as the "Development Property"; and WHEREAS, the Public Improvements will also benefit an office building ("CIHC Improvements") being constructed by Central Iowa Hospital Corporation ("CIHC") on a nearby parcel ("CIHC Parcel"); and WHEREAS, the City and Developer desire to amend the Agreement pursuant to a proposed Amendment (the "Amendment") to provide Developer with certain incremental taxes derived from the completion of the CIHC Improvements to expedite the reimbursement of Developer for the costs of the Public Improvements, pursuant to the terms and conditions of the Amendment; and WHEREAS, Chapters 15A and 403, Code of Iowa, (the "Urban Renewal Law") 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 Chapter, 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 Plan and the Urban Renewal Law and, further, that 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; and WHEREAS, neither the Urban Renewal Law nor any other Code provision sets forth any procedural action required to be taken before said economic development activities can occur under the Amendment, and pursuant to Section 364.6,Code of Iowa, it is deemed sufficient if the action hereinafter described be taken and the City Clerk publish notice of the proposal and of the time and place of the meeting at which the Council proposes to take action thereon and to receive oral and/or written objections from any resident or property owner of said City to such action. NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF WAUKEE IN THE STATE OF IOWA: Section 1.That this Council meet in the Council Chambers, City Hall, 230 West Hickman Road, Waukee, Iowa, at 5:30 P.M. on October 7, 2024, for the purpose of taking action on the matter of the proposal to enter into a First Amendment to the Agreement for Private Development with AP North, L.C. Section 2.That the City Clerk is hereby directed to cause at least one publication to be made of a notice of said meeting, in a legal newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in said City, said publication to be not less than four (4) clear days nor more than twenty (20) days before the date of said public meeting. Section 3.The notice of the proposed action shall be in substantially the following form: (One publication required) NOTICE OF PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF WAUKEE IN THE STATE OF IOWA, ON THE MATTER OF THE PROPOSAL TO ENTER INTO A FIRST AMENDMENT TO THE AGREEMENT FOR PRIVATE DEVELOPMENT WITH AP NORTH, L.C., AND THE HEARING THEREON PUBLIC NOTICE is hereby given that the Council of the City of Waukee in the State of Iowa, will hold a public hearing on October 7, 2024, at 5:30 P.M. in the Council Chambers, City Hall, 230 West Hickman Road, Waukee, Iowa, at which meeting the Council proposes to take action on the proposal to enter into a First Amendment to the Agreement for Private Development (the "Amendment") with AP North, L.C. (the "Developer"). The City and the Developer have previously entered into an Agreement for Private Development dated July 10, 2023 ("Agreement"), pursuant to which, among other things, the Developer agreed to construct a regional stormwater detention pond ("Public Improvements") on certain real property located within the Waukee Consolidated Urban Renewal Area, and the City agreed to provide the Developer with certain Tax Increments derived from Commercial Improvements in exchange for Developer’s completion of the Public Improvements. The Public Improvements were intended to benefit, among other things, commercial development on certain property described in the Agreement as the "Development Property". The Public Improvements will also benefit an office building ("CIHC Improvements") being constructed by Central Iowa Hospital Corporation ("CIHC") on a nearby parcel ("CIHC Parcel"). The Amendment would amend the terms of the Agreement to provide Developer with certain incremental taxes derived from the completion of the CIHC Improvements to expedite the reimbursement of Developer for the costs of the Public Improvements, pursuant to the terms and conditions of the Amendment. A copy of the Amendment is on file for public inspection during regular business hours in the office of the City Clerk, City Hall, City of Waukee, Iowa. At the above meeting the Council shall receive oral or written objections from any resident or property owner of said City, to the proposal to enter into the Amendment with the Developer. After all objections have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action on the proposal or will abandon the proposal to authorize said Amendment. This notice is given by order of the City Council of the City of Waukee in the State of Iowa, as provided by Section 364.6, Code of Iowa. Dated this 16th day of September, 2024. Rebecca D. Schuett City Clerk, City of Waukee in the State of Iowa (End of Notice) PASSED AND APPROVED this 16th day of September, 2024. Mayor ATTEST: City Clerk