HomeMy WebLinkAbout2025-11-03 G12 Development Agreement_Kettlestone Lakes LLC, AP GPP LC_PHAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: November 3, 2025
AGENDA ITEM:On the proposal to enter into a Development Agreement with Kettlestone
Lakes, LLC, and AP GPP, LC
FORMAT:Public Hearing
SYNOPSIS INCLUDING PRO & CON: The proposed Development Agreement between the
City of Waukee, Kettlestone Lakes, LLC and AP GPP, L.C. is for the private commercial
improvements and construction of public infrastructure within the Kettlestone Lakes District One
Urban Renewal Area. The key terms of the agreement are included below.
Public Infrastructure Improvements:
Construction of SE Parkview Crossing Drive and SE Kettlestone Boulevard (including
utilities, grading, and drainage).
o Estimated cost: $10 million
o Infrastructure completion target: December 31, 2025
Commercial (Private) Improvements:
o Both developers will construct commercial buildings on their respective sites by
December 31, 2026 for a total minimum investment of $12M.
Maintenance & Dedication:
Upon City inspection and acceptance, all infrastructure will be dedicated to and
maintained by the City.
Economic Development Grants (TIF Rebates)
The City will provide up to 12 annual Economic Development Grants funded by
property tax increment revenues (TIF) generated by the new improvements, contingent
on compliance with the agreement.
Kettlestone Developer:
o Annual grants equal to 50% of tax increment from the Kettlestone and JJ
properties.
o Maximum grant not to exceed $7.85M.
o Payments begin June 1, 2029, through June 1, 2040.
AP Developer:
o Annual grants equal to 50% of tax increment from the AP property.
o Maximum grant not to exceed $2.1M.
o Same 12-year term and performance conditions.
o Payments begin June 1, 2029.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: The City’s obligation to
make Economic Development Grant payments is limited to the
availability of incremental property tax revenues generated by the
respective improvements.
COMMISSION/BOARD/COMMITTEE COMMENT:
G12
STAFF REVIEW AND COMMENT: Staff recommends City Council holding a public
hearing to discuss a proposed development agreement with Kettlestone
Lakes, LLC, and AP GPP, LC
RECOMMENDATION: Hold the Public Hearing.
ATTACHMENTS: I. Proposed First Amendment
II Hearing Notice
III. Resolution
PREPARED BY:Jennifer Brown, Director of Economic Development
REVIEWED BY:
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION: Dallas County News
DATE OF PUBLICATION: October 30, 2025
(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
DEVELOPMENT AGREEMENT WITH KETTLESTONE
LAKES, LLC AND AP GPP, 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 November 3, 2025, 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 Development Agreement (the "Agreement") with Kettlestone
Lakes, LLC (the "Kettlestone Developer") and AP GPP, L.C. (the "AP Developer"), collectively
the "Developers".
The Agreement would obligate the Developers to construct certain Kettlestone Minimum
Improvements, AP Minimum Improvements, and Infrastructure Improvements (as those terms are
defined in the Agreement) on certain real property located within the Kettlestone Lakes District
One Urban Renewal Area as defined and legally described in the Agreement, under the terms and
following satisfaction of the conditions set forth in the Agreement. The Agreement requires
Developers to use commercially reasonable efforts to attract commercial businesses employing
individuals in their operations to locate their business operations within the Kettlestone Minimum
Improvements and the AP Minimum Improvements.
The Agreement would further obligate the City to make up to twelve (12) consecutive
annual payments of Kettlestone Economic Development Grants to Kettlestone Developer
consisting of 50% of the Kettlestone Tax Increments pursuant to Section 403.19, Code of Iowa,
and generated by the construction of the Kettlestone Minimum Improvements, the cumulative total
for all such payments not to exceed the lesser of $7,850,000, the amount Kettlestone Developer
contributes to the Infrastructure Improvements, or the amount accrued under the formula outlined
in the proposed Agreement, under the terms and following satisfaction of the conditions set forth
in the Agreement.
The Agreement also obligates the City to make up to twelve (12) consecutive annual
payments of AP Economic Development Grants to Developer consisting of 50% of the AP Tax
Increments pursuant to Section 403.19, Code of Iowa, and generated by the construction of the AP
Minimum Improvements, the cumulative total for all such payments not to exceed the lesser of
$2,150,000, the amount AP Developer contributes to the Infrastructure Improvements, or the
amount accrued under the formula outlined in the proposed Agreement, under the terms and
following satisfaction of the conditions set forth in the Agreement.
A copy of the Agreement 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 Agreement 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 Agreement.
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 20th day of October, 2025.
Rebecca D. Schuett
City Clerk, City of Waukee, State of Iowa
(End of Notice)
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