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HomeMy WebLinkAbout2025-11-03 H06 Development Agreement_IYAF First AmendmentAGENDA 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 First Amendment to the Agreement for Private Development by and among the City of Waukee and Caliber Land Company, LLC; Kettlestone Central, LC; and Iowa Youth Athletic Foundation FORMAT:Resolution SYNOPSIS INCLUDING PRO & CON: On May 30, 2023, the City entered into an Agreement for Private Development with Caliber Land Company, LLC, Kettlestone Central, L.C., and the Iowa Youth Athletic Foundation (IYAF). The Agreement outlined the development of commercial improvements across multiple phases within the Kettlestone Urban Renewal Areas, as well as the City’s provision of economic development grants to IYAF upon completion of the required improvements. City will also be considering amendments to several Kettlestone Urban Renewal Plans and adopting a new Kettlestone Phase 5 Commercial Urban Renewal Plan. The Phase 5 plan created a new Urban Renewal Area and reallocated certain parcels previously included in Phases 1 and 2. The proposed First Amendment to the Development Agreement updates the Agreement to reflect the creation of this new Urban Renewal Area, establishes new definitions related to “Phase 5” improvements, and increases the cumulative grant cap. Key updates: 1.Inclusion of Phase 5 Urban Renewal Area 2.New Development Phase: o Defines Phase 5 Commercial Improvements as a 12,300-square-foot commercial building and 102,000 square feet arena to be used for athletic competition, requiring a minimum investment of $40,000,000. o Requires completion of the Phase 5 Commercial Improvements by December 31, 2025. 3.Economic Development Grants: o Establishes a new Phase 5 Economic Development Grant providing up to 20 annual grant payments to IYAF. o Each annual payment equals 100% (gym property) and 85% (dance studio) of property tax increment revenues generated by the Phase 5 Commercial and Arena Improvements. 4.Increased Cumulative Grant Cap: o Raises the total cumulative maximum amount of all grants under the Agreement from prior limits to $55,000,000. 5.Employment and Operation Commitments: H6 o Confirms that IYAF will continue to operate the Arena as an athletic complex hosting regional competitions. o Developers will use commercially reasonable efforts to attract businesses providing ongoing employment within the commercial phases. 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: STAFF REVIEW AND COMMENT: RECOMMENDATION: Staff recommend approval of the resolution authorizing the execution of the First Amendment to the development agreement with Caliber Land Company, LLC; Kettlestone Central, LC; and Iowa Youth Athletic Foundation ATTACHMENTS: I. Proposed First Amendment 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 FIRST AMENDMENT TO THE AGREEEMENT FOR PRIVATE DEVELOPMENT BY AND AMONG THE CITY OF WAUKEE, CALIBER LAND COMPANY, LLC, KETTLESTONE CENTRAL, L.C., AND IOWA YOUTH ATHLETIC FOUNDATION WHEREAS, on June 5, 2023, this Council found that certain areas located within the City are eligible and should be designated as urban renewal areas under Iowa law, and approved and adopted the: (1) Kettlestone Phase 1 Commercial Urban Renewal Plan (the "Phase 1 Plan") for the Kettlestone Phase 1 Commercial Urban Renewal Area (the "Phase 1 Urban Renewal Area") described therein; (2) the Kettlestone Phase 2 Commercial Urban Renewal Plan (the "Phase 2 Plan") for the Kettlestone Phase 2 Commercial Urban Renewal Area (the "Phase 2 Urban Renewal Area") described therein; (3) the Kettlestone Phase 3 Commercial Urban Renewal Plan (the "Phase 3 Plan") for the Kettlestone Phase 3 Commercial Urban Renewal Area (the "Phase 3 Urban Renewal Area") described therein; and (4) the Kettlestone Phase 4 Commercial Urban Renewal Plan (the "Phase 4 Plan") for the Kettlestone Phase 4 Commercial Urban Renewal Area (the "Phase 4 Urban Renewal Area") described therein; and WHEREAS, the City and Caliber Land Company, LLC ("Caliber"), Kettlestone Central, L.C. ("Kettlestone Central"), and Iowa Youth Athletic Foundation ("IYAF") have previously entered into that certain Agreement for Private Development dated May 30, 2023 (the "Agreement"), pursuant to which, Caliber agreed to construct certain "Phase 2 Commercial Improvements" and Kettlestone Central agreed to construct certain "Phase 1 Commercial Improvements", "Phase 3 Commercial Improvements", and "Phase 4 Commercial Improvements" and, further, IYAF agreed to construct certain "Arena Improvements", all on distinct portions of the "Development Property"; and WHEREAS, the City, IYAF, and West Bank ("Bank") executed a Partial Assignment of Development Agreement dated March 4, 2024 ("Bank Assignment"), by which Bank Assignment IYAF assigned its right, title and interest to the Economic Development Grants to the Bank; and WHEREAS, the City has adopted an amendment to the Phase 1 Plan and Phase 2 Plan in order to remove property from the Phase 1 Urban Renewal Area and Phase 2 Urban Renewal Area, respectively, and thereafter placed said property in the Kettlestone Phase 5 Commercial Urban Renewal Area (the "Phase 5 Urban Renewal Area") through the adoption of the Kettlestone Phase 5 Commercial Urban Renewal Plan (the "Phase 5 Plan"); WHEREAS, the City has received a proposal from Caliber, Kettlestone Central, and IYAF, in the form of a proposed First Amendment to the Agreement for Private Development (the "First Amendment") by and between the City, Caliber, Kettlestone Central, and IYAF in order to (i) revise the Agreement terms and exhibits to account for the creation of the Phase 5 Urban Renewal Area; and (ii) increase the Cumulative Maximum Amount of Grants; and WHEREAS, Chapter 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 First 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 First 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 15 and 403, Code of Iowa, after considering the relevant factors set forth in Chapter 15; 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 First Amendment and has considered the extent of objections received from residents or property owners as to said proposed First 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 IYAF under the terms set forth in the Agreement, as amended by the First 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 First 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 15 and 403, Code of Iowa, taking into account the factors set forth therein. Section 2.That the form and content of the First 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 First 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 First 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 First Amendment as executed. PASSED AND APPROVED this 3rd day of November, 2025. Mayor ATTEST: City Clerk