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HomeMy WebLinkAbout2025-10-06 I01G_01 3rd Amendment to Development Agreement_KettleviewAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: October 6, 2025 AGENDA ITEM:Consideration of approval of a resolution approving and authorizing execution of a Third Amendment to Amended and Restated Agreement for Private Development by and between the City of Waukee, Iowa and Farmers State Bank FORMAT:Resolution SYNOPSIS INCLUDING PRO & CON: The City had previously entered into an agreement with Kettleview LLC related to the Kettleview development located at the southwest corner of the intersection of SE Tallgrass Lane and Grand Prairie Parkway. The original developer went into default and a portion of the development including SE Encompass Drive (a private street) went back to the bank. The City has agreed to take over public ownership of the street, however, due to some issues associated with the title, the City was required to proceed through a condemnation process. The proposed amendment obligates Farmers State Bank to pay for the costs associated with the right of way acquisition related to the condemnation process. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve the Resolution ATTACHMENTS: I. Proposed Resolution II. Third Amendment to Development Agreement PREPARED BY:Brad Deets, City Administrator REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: I1G1 THE CITY OF WAUKEE, IOWA RESOLUTION 2025- RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A THIRD AMENDMENT TO AND RESTATED AGREEMENT FOR PRIVATE DEVELOPMENT BY AND BETWEEN CITY OF WAUKEE AND FARMERS STATE BANK WHEREAS, the City and Kettleview, L.L.C. ("Original Developer") previously executed an Agreement for Private Development dated May 20, 2019 ("Original Agreement"), a Memorandum of which is recorded with the County Recorder of Dallas County, Iowa in Book 2019 at Page 10540, which Original Agreement was replaced in its entirety by the Amended and Restated Agreement; and WHEREAS, a Memorandum of the Amended and Restated Agreement was recorded with the County Recorder of Dallas County, Iowa in Book 2019 at Page 22770; and WHEREAS, the City and Original Developer executed an Amendment to the Amended and Restated Agreement ("First Amendment") dated June 15, 2020, recorded with the County Recorder of Dallas County, Iowa in Book 2020 at Page 20550, pursuant to which the parties made a number of changes to the terms of the Amended and Restated Agreement; and WHEREAS, the City, Original Developer, and Bank executed a Second Amendment to and Assignment of the Amended and Restated Agreement ("Second Amendment") dated March 21, 2024, pursuant to which the parties made a number of changes to the terms of the Amended and Restated Agreement and assigned the Original Developer's rights and obligations under the Amended and Restated Agreement to the Bank; and WHEREAS, a Second Amendment to Memorandum of Agreement for Private Development referencing the Second Amendment was recorded with the County Recorder of Dallas County, Iowa in Book 2024 at Page 03964; and WHEREAS, the parties desire to make additional changes to the Amended and Restated Agreement pursuant to this Third Amendment. NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF WAUKEE IN THE STATE OF IOWA: Section 1. Definitions. All capitalized words used herein and not specifically defined shall have the same definitions as in the Agreement, as previously amended. Section 2. Condemnation Cost Reimbursement. Pursuant to the Agreement, as amended, the Developer is obligated to dedicate to the City the completed "Southeast Encompass Drive Improvements". Due to title defects on the Southeast Encompass Drive Improvements property, the Developer is unable to complete the required dedication and the City has initiated condemnation proceedings to acquire the Southeast Encompass Drive Improvements. As such, the Developer hereby acknowledges and agrees that it shall reimburse the costs and expenses incurred by the City in acquiring the Southeast Encompass Drive Improvements through condemnation, including but not limited to any attorneys fees, court costs, and fair value payments. The City shall provide the Developer with an itemization of all such costs and expenses following completion of the condemnation process and the Developer shall remit payment within thirty (30) days after receipt of such itemization. If such payment is not timely remitted to the City from the Developer, the City shall deduct any unpaid amounts from any and all Economic Development Grants otherwise payable to Developer under the Amended and Restated Agreement. If the City is unable to complete the condemnation process for any reason, then the City may treat Developer's failure to dedicate the Southeast Encompass Drive Improvements to the City as an Event of Default under the Agreement. PASSED AND APPROVED this 6th day of October, 2025. Mayor ATTEST: City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN R. Charles Bottenberg Chris Crone Rob Grove Anna Bergman Pierce Ben Sinclair