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HomeMy WebLinkAbout2025-06-16 J01G_10 Stivers Development Agreement_Second AmendmentAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: June 16, 2025 AGENDA ITEM:Consideration of approval of a resolution approving and authorizing execution of a Second 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. have expanded their operations at 1300 SE Stone Ridge Drive with a $5 million investment in a new 36,600-square-foot Ford Pro Service Center, dedicated to servicing commercial vehicles. The proposed amendment updates the minimum improvement requirements related to charging stations, specifying that installation must be completed by August 31, 2025. Additional Information The development agreement includes a Business Retention and Expansion incentive, providing Ed Stivers Ford, Inc. with 50% of the tax increment for a period of three years. The total amount of economic development grants will be capped at $330,000. The agreement requires Ed Stivers Ford, Inc. to retain 112 full-time 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 supports the City’s commitment to assisting existing businesses that choose to grow in Waukee. The incentive aligns with the City’s newly adopted Business Retention and Expansion policy. COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve the Resolution ATTACHMENTS: Resolution PREPARED BY:Jennifer Brown, Director of Economic Development REVIEWED BY: J1G10 PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: RESOLUTION NO. ______ RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A SECOND 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 parties previously entered into a First Amendment to the Agreement for Private Development on August 5, 2024 ("First Amendment") to modify the description of the Minimum Improvements to accommodate changes to the Ford EV program requirement; and WHEREAS, the City, Developer, and Employer desire to amend the Agreement pursuant to a proposed Second Amendment to the Agreement (the "Second Amendment") to modify the completion date for the Charger Obligations; 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 in furtherance of the Urban Renewal Law and, further, that the 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 THE 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 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 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 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 Agreement, as amended, and the Second Amendment as executed. PASSED AND APPROVED this 16th day of June, 2025. Mayor ATTEST: City Clerk