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HomeMy WebLinkAbout2024-10-07 H01 AP North DA AmendAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: October 7, 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 between the City of Waukee and AP North, LC FORMAT:Resolution SYNOPSIS INCLUDING PRO & CON: The proposed amendment to the development agreement with AP North, L.C. would adjust the economic development grants to include tax increment revenue from the Central Iowa Hospital Corporation (CIHC) commercial improvements. This amendment proposes up to eleven annual payments, starting in fiscal year 26/27. The first three years would receive 25% of CIHC tax increment, and the remaining eight years would receive 50% of CIHC. AP North, L.C. is developing over 50 acres of land in the Kettlestone Development. As part of this development, they have constructed a regional storm water retention pond, which was dedicated to the City as public improvement. The economic development grant from the original agreement will remain unchanged and includes up to twelve annual payments, with 70% for the first six years and 80% for the remaining six years, with a total grant cap of $2 million. The agreement will terminate if no tax increments are collected by fiscal year 35/36. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: AP North, L.C. constructed a storm water pond to benefit the CIHC development (UnityPoint) and the surrounding area. When the initial agreement was approved, it was assumed that UnityPoint was tax-exempt, but this turned out to be incorrect. The developer had planned to use tax increment from the CIHC to cover the cost of the public improvements. However, due to the unexpected tax status of UnityPoint, the developer committed to new commercial development in Kettlestone to help fund the improvements. The proposed amendment will use CIHC TIF increment to help for public improvements. RECOMMENDATION: Staff recommends approving the resolution H1 ATTACHMENTS: I. Resolution II. First Amendment to the Development Agreement 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 AGREEEMENT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE CITY OF WAUKEE AND AP NORTH, L.C. 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, 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 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 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; 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 Amendment and has considered the extent of objections received from residents or property owners as to said proposed Amendment; 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.That the performance by the City of its obligations under the Agreement, as amended, including but not limited to making of grants to the Developer in connection with the development of the Commercial Improvements and CIHC Improvements under the terms set forth in the Amendment, 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 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 Amendment as executed. PASSED AND APPROVED this 7th day of October, 2024. Mayor ATTEST: City Clerk