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Home My WebLink About2026-05-18 H04 Bluestem Village LLC_Option and Development AgreementAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: May 18, 2026 AGENDA ITEM:Consideration of approval of a resolution making final determination on potential sale of interest in real property and approving and authorizing execution of an Option Agreement and Development Agreement by and between the City of Waukee and Bluestem Village LLC within the North Waukee Residential Urban Renewal Area FORMAT:Resolution SYNOPSIS INCLUDING PRO & CON: FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: The total funding gap is estimated to be $1.75 million. The City has committed to contributing $970,000 in tax increment incentives and Habitat plans to apply for approximately $780,000 in Workforce Housing Tax Credits. COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve the resolution. ATTACHMENTS: I. Proposed Resolution PREPARED BY: City Clerk Becky Schuett REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: H4 3 RESOLUTION NO. ______ RESOLUTION MAKING FINAL DETERMINATION ON POTENTIAL SALE OF INTEREST IN REAL PROPERTY AND APPROVING AND AUTHORIZING EXECUTION OF AN OPTION AGREEMENT AND A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF WAUKEE AND BLUESTEM VILLAGE LLC WITHIN THE NORTH WAUKEE RESIDENTIAL URBAN RENEWAL AREA WHEREAS, by Resolution No. 2020-429, adopted November 16, 2020, 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 North Waukee Residential Urban Renewal Plan (the "Plan" or "Urban Renewal Plan") for the North Waukee Residential Urban Renewal Area (the "Area" or "Urban Renewal Area") described therein, which Plan is on file in the office of the Recorder of Dallas County; and WHEREAS, the Plan has subsequently been amended by an Amendment No. 1 adopted in 2023, and by an Amendment No. 2 adopted in 2024; 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, such Plan provides for, among other things, the disposition of property for private development as a proposed urban renewal action; and WHEREAS, the City of Waukee (the "City") has received a proposal from Bluestem Village LLC ("Developer"), in the form of a proposed Option Agreement and a proposed Development Agreement (collectively the "Agreement") by and between the City and Developer, pursuant to which, among other things, the City would agree to sell certain City-owned real property within the Urban Renewal Area (the "Property") to the Developer for $1.00 and in consideration of Developer’s other obligations under the Agreement, which property is legally described as follows: All of Outlot “Y” in Prairie Rose Plat 2, an Official Plat, now included in and forming a part of the City of Waukee, Dallas County, Iowa; and WHEREAS, because the Property is located within an urban renewal area, the City’s sale of the Property is subject to the provisions of Iowa Code Section 403.8; and WHEREAS, by Resolution adopted April 6, 2026, this Council: (i) set forth its proposal to dispose of interests in the Property; (ii) approved a reasonable competitive bidding procedure to seek competing bids for the Property; (iii) determined that the Agreements offered "fair value" for the Property; and (iv) gave notice of its intention to accept the Agreements with Bluestem Village LLC if no qualified competing proposals were received; and WHEREAS, the Agreements would require the Developer to: (A) cause Greater Des Moines Habitat for Humanity, Inc. ("Habitat") and Home Opportunities Made Easy, Inc. ("HOME, Inc. ") to construct 52 owner occupied residential units on the Property ("Housing Units"), at least 36 of which shall be sold to low and moderate income families; and (B) complete Public Infrastructure to serve the Housing Units (collectively, the "Project"); and WHEREAS, by publication of a notice of competitive bidding, the City invited competing bids for the Property be submitted no later than May 18, 2026 and no qualifying competing proposals were received prior to this date; and WHEREAS, Iowa Code Chapter 403 authorizes cities to dispose of property in furtherance of the objectives of an urban renewal project and to take other actions as may be necessary to carry out the purposes of said Chapter; and WHEREAS, the Agreements also contemplate the City providing the Developer annual tax increment rebates derived from the Project, up to an aggregate amount not to exceed $970,000, subject to the terms and conditions of the Agreements; 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 Agreements and the City’s performance thereunder are in furtherance of appropriate economic development activities and objectives of the City within the meaning of Chapter 403 of the Iowa Code; 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 Agreements, which includes the potential sale of the Property, and has considered the extent of objections received from residents or property owners as to said proposed Agreements; 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.The Council finds that disposal of interests in the Property to the Developer as set forth in the Agreements will benefit the health, safety and welfare of, and is in the best interests of the residents of the City. The Council further finds that transfer of the Property will promote economic development in the City and that these benefits, together with the other consideration provided for in the Agreement, constitute fair value for the disposal of interests in the Property under Section 403.8, Code of Iowa. Section 2.The proposal to sell the Property to the Developer pursuant to the terms of the proposed Agreements is hereby approved. Section 3.That the performance by the City of its obligations under the Agreements, including but not limited to selling the Property to the Developer under the terms set forth in the Agreement and the provision of tax increment rebates, 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 Agreements and the City’s performance thereunder are in furtherance of appropriate economic development activities and objectives of the City within the meaning of Iowa Code Chapter 403. Section 4.That the form and content of the Agreements, 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 Agreements 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 Agreements, 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 Agreements as executed. PASSED AND APPROVED this 18th day of May, 2026. Mayor ATTEST: City Clerk