HomeMy WebLinkAbout2025-11-03 H05 Development Agreement_Kettlestone Lakes LLC, AP GPP LCAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: November 3, 2025
AGENDA ITEM:Consideration of approval of a resolution approving and authorizing
execution of a Development Agreement by and among the City of
Waukee; Kettlestone Lakes, LLC; and AP GPP, LC
FORMAT:Resolution
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 new 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:
H5
STAFF REVIEW AND COMMENT:
RECOMMENDATION: Staff recommends approving the Resolution authorizing the execution
of development agreement with Kettlestone Lakes, LLC, and AP GPP,
LC
ATTACHMENTS: I. Kettlestone Lakes, LLC, and AP GPP, LCDevelopment
Agreement
III. Resolution
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 DEVELOPMENT AGREEMENT BY AND
AMONG THE CITY OF WAUKEE, KETTLESTONE LAKES,
LLC, AND AP GPP, L.C.
WHEREAS, by Resolution adopted November 3, 2025, this Council found and determined
that certain areas located within the City are eligible and should be designated as an urban renewal
area under Iowa law, and approved and adopted the Kettlestone Lakes District One Urban Renewal
Plan (the "Urban Renewal Plan" or "Plan") for the Kettlestone Lakes District One Urban Renewal
Area (the "Urban Renewal Area" or "Area") described therein, which Plan 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 has received a proposal from Kettlestone Lakes, LLC (the
"Kettlestone Developer") and AP GPP, L.C. (the "AP Developer"), collectively the Kettlestone
Developer and AP Developer shall be referred to as "Developers", in the form of a proposed
Development Agreement (the "Agreement") concerning the development of certain real property
located within the Urban Renewal Area; and
WHEREAS, JJ & KJ Properties, LLC ("Property Owner") owns certain real property
located in the Urban Renewal referred to as the "JJ Property", Kettlestone Developer owns certain
real property located in the Urban Renewal referred to as the "Kettlestone Development Property",
and AP Developer owns certain real property referred to as the "AP Development Property"; and
WHEREAS, the JJ Property, the Kettlestone Development Property, and the AP
Development collectively are referred to as the "Development Property" (as defined and legally
described in the Agreement); and
WHEREAS, pursuant to the Agreement, among other things, the Developers would agree
to construct certain Kettlestone Minimum Improvements, AP Minimum Improvements, and
Infrastructure Improvements on the Development Property (as those terms are defined in the
Agreement), and otherwise prepare the Development Property for the construction of private
commercial development and related improvements thereon; and
WHEREAS, 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;
and
WHEREAS, the Agreement further proposes that the City will 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; and
WHEREAS, the Agreement further proposes that the City will 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; 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 Agreement 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 Agreement 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 Agreement and
has considered the extent of objections received from residents or property owners as to said
proposed Agreement; 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,
including but not limited to making of grants to the Developer in connection with the development
of the Development Property under the terms set forth in the Agreement, 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 Agreement 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 Agreement, 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 Agreement 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 Agreement, 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 executed.
PASSED AND APPROVED this 3rd day of November, 2025.
Mayor
ATTEST:
City Clerk