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HomeMy WebLinkAbout2003-06-02-Resolutions 03-135_Legacy Pointe - Development AgrTHE CITY OF WAUKEE,IOWA RESOLUTION 03-135 APPROVING DEVELOPMENT AGREEMENT FOR LEGACY POINTE IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE,IOWA WHEREAS,Ewing Land Development &Services,L.L.C.has requested the City of Waukee enter into a Development Agreement for development on about 74 acres of property;the development of which will consist of senior housing,senior care and retail facilities;AND, WHEREAS,Ewing Land Development &Services,L.L.C.has requested the City provide an economic development assistance package as provided in a resolution adopted November 6,2000;AND, WHEREAS,the Ewing Land Development &Services,L.L.C.Development Agreement has been reviewed and approved by city staff;AND, WHEREAS,said Development Agreement is attached hereto and made a part hereof. NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council in session this 2nd day of June 2003 that it hereby approves the Development Agreement with the Ewing Land Development &Services,L.L.C. Attest: ark J.Arentse,ity Administrator/Clerk ROLL CALL OTE Nicholas C.Gruber Donald L.Bailey,JI. Bill Peard Mike Watts Council Seat Vacant AYE X X X X NAY ABSENT EWING LAND DEVELOPMENT &SERVICES,L.L.C. DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement")is entered into between the City of Waukee,Iowa (The "City")and EWING LAND DEVELOPMENT &SERVICES,L.L.C.,(the "Company")as of June 3,2003 WHEREAS,the Company requests the City enter into a development agreement for development on certain property more particularly described on Exhibit A hereto,which is located within the City (The "Property")and within the Waukee Urban Renewal Area,which area is described in the Urban Renewal Plan and subsequent amendments approved for such area by resolution no.00- 226 on the 18,of December 2000;and WHEREAS,the Company will cause development to occur on about seventy-four (74tacres consisting of senior housing,senior care and retail facilities (the "Project")in accordance with this Agreement and as set forth in a manner outlined in the land use plan described in Exhibit B hereto;and WHEREAS,Chapter 403 of the Code ofIowa authorizes cities to establish urban renewal areas and to undertake economic development projects;and WHEREAS,Chapter 15A ofthe Code ofIowa authorizes cities to provide grants,loans, guarantees,tax incentives and other financial assistance to or for the benefit of private persons;and WHEREAS,the Company has requested that the City provide an economic development assistance package from the City through a method of rebating to the Company certain property taxes generated from the project which will be paid with respect to the Project;and WHEREAS,the City adopted a resolution in November 6,2000,which established a policy with respect to the use of economic development incentives such as tax rebate and tax increment financing;and NOW,THEREFORE,in consideration of the mutual obligations contained in this Agreement, the parties hereto agree as follows: 1.Agreements by Company,The Company agrees to the following conditions: a.Company shall have a site plan approved by the Waukee City Council no later than July 30, 2003. b.The Company will begin construction of the Project no later than December 31,2003, and to substantially complete construction no later than June 30,2006 ,subject to any delays beyond the reasonable control of the Company.The project is described in greater detail in Exhibit C. e.Company agrees to submit receipts of eligible expenses as described in Exhibit D for certification by the City not to exceed $1,250,000.00 For purposes of Paragraph l(b)and I (c)of this Agreement,if a temporary or permanent certificate of occupancy has been issued for the Property,it shall be deemed to be substantially complete. I 1 j 2.Tax Rebate by City.In recognition of the Company's commitments set out in Paragraph 1,the City agrees to make semi-annual economic development tax rebate payments to the Company in each fiscal year during the term of this Agreement,pursuant to Chapters 15A and 403 of the Code ofIowa,in amounts which are equal to sixty-three percent (63%)of the incremental property taxes generated by the Project provided that no payments shall be made more than fifteen (15) years after the date of the first payment. 3.Economic Development Grants.The City agrees to use the incremental property taxes from the Property as follows: a.Rebate payments equal to sixty-three percent (63%)ofthe incremental property taxes generated by the Project shall be made payable to the Company on June 1 and December I of each fiscal year. b.The remaining thirty-seven percent (37%)ofthe incremental property taxes shall be retained by the City and used to satisfy the Low to Moderate Income housing assistances requirement identified in Chapter 403.22 of the Iowa Code. c.City agrees to certify as eligible expenses the costs associated with the construction of internal improvements outlined in Exhibit D. d.The City agrees to rebate incremental property taxes generated from the Project not to exceed $1,250,000.00. The tax rebate payments shall not constitute general obligations of the City,but shall be payable solely and only from incremental property taxes generated by the Project.The Payments to the Company are subject to annual approval and appropriation by the City Council.,and are subject to the conditions set forth in Section 4 hereinafter. 4.Conditions.The tax increment rebate payments are subject to the following conditions: a.Completion of the construction of the project no later than June 30,2006,and in accordance with the Company's obligations hereunder and submission of the Certificate of Completion as set forth in Exhibit E attached hereto and incorporated herein by this reference. b.Timely payment of property taxes generated by the Project when due and submission to the City of evidence of each tax payment. The above-matters set forth in subsection b shall be submitted as part of a semiannual certification submitted by the Company to the City on June 1 and November 1 each year which shall be in the form attached hereto as Exhibit F incorporated herein by this reference. Provided that the Company's semiannual certification is made pursuant to this Agreement,the City shall certify to the County prior to December 1 ofthat year its request for the available tax increments resulting from the assessments imposed by the County as of January 1 of that year, to be collected by the City as taxes paid during the following fiscal year and which shall thereafter be disbursed to the Company on June 1 and December 1 of that fiscal year. Failure of the company to meet the eligibility requirements for anyone tax rebate payment shall not subject the Company to any penalty with respect to prior payments and shall not operate in any manner to restrict the Company's eligibility for future payments. 2 5.Amendment/Assignment.This Agreement may not be amended or assigned by either party without the express permission of the other party.However,the City hereby gives its permission that the Company's rights to receive the economic development tax rebate payments hereunder may be assigned by the Company to a private lender,as security,without further action on the part of the City.The City agrees,further,not to unreasonably withhold its permission upon receipt of a request from the Company for assignment of all or any portion of its rights and obligations hereunder to any other party,provided that the assignment shall be consistent with the original purposes of this Agreement to provide for a commercial facility.The City shall either approve or deny such request within sixty days after receipt of such request by the City Administrator for the City of Waukee. 6.Binding Effect.This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. 7.Counterparts.This Agreement may be executed in any number of counterparts,each of which shall constitute one and the same instrument. 8.Governing Law.This Agreement shall be deemed to be a contract made under the laws of the State ofIowa and for all purposes shall be governed by and construed in accordance with laws of the State ofIowa. 9.Entire Agreement.This Agreement and the exhibits attached hereto reflect the entire agreement between the parties regarding the subject matter hereof,and supersedes and replaces all prior agreements,negotiations or discussions,whether oral or written.This Agreement may not be amended except by a subsequent writing signed by all parties hereto. 10.Recording.This Agreement shall be recorded with the Dallas County,Iowa,Recorder. The City and the Company have caused this Agreement to be signed,and the City's seal to be affixed,in their names on their behalf by their duly authorized officers,all as of the day and date written above. [Signature Page Follows.] 3 I j CITY OF WAUKEE,IOWA Seal STATE OF IOWA ) )ss. COUNTY OF DALLAS ) On this __day of June,2003,before me,the undersigned,a Notary Public in and for the State ofIowa,personally appeared Tony Oberman and Mark J.Arentsen,to me personally known,and who,being by me duly sworn,did say that they are the Mayor and City Clerk, respectively,of the City of Waukee,Iowa;that the seal affixed to the foregoing instrument is the corporate seal of the corporation,and that the instrument was signed and sealed on behalf of the corporation,by authority of its City Council,as contained in the Resolution No.03-135 adopted by the City Council on the 2nd day of June,2003,and that Tony Oberman and Mark J. Arentsen acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the corporation,by it voluntarily executed. Notary Public in and for the State of Iowa Ewing Land Development &Services,L.L.C. By:_ Jeff Ewing,President 4 EXHIBIT A Legal Description A part of the West One-Half of the Northeast Quarter of Section 35- Township 79 North -Range 26 West ofthe 5th P.M.,City of Waukee,Dallas County,Iowa more particularly described as follows: Connnencing at the NW corner of said West Yz -NE Y.;thence S 0°03'55"W 60.00 feet along the West line thereof to the South Right-of-Way line of U.S. Highway 6 (Hickman Road)and the Point of Beginning;thence S 89°45'40"E 724.51 feet along said South R.O.W.line to the West line of a certain tract of land described in Deed Book 633 at page 618,Dallas County Records;thence S 0°06'45"W 345.00 feet to the SW corner thereof;thence S 89°45'40"E 600.00 feet to the SE corner thereof and the East line of said West Yz -NE 'I.; thence S 0°06'45"W 2,232.00 feet to the SE comer of said West Yz -NE Y.; thence N 89°52'42"W 1,322.38 feet to the SW corner thereof;thence N 0°03' 55"E 2,579.73 feet to the Point of Beginoing containing 73.58 acres subject to any and all easements,recorded or non-recorded. The West line of said West Yz -NE 'I.is assumed to bear N 0°03'55"E for purposes of this description. I 5 ExhibitB Land Use Plan EXHIBITC Description of Project Upon entering into a development agreement with the City of Waukee,EWING LAND DEVELOPMENT &SERVICES,L.L.C.agrees to develop a senior living campus consisting of approximately: Independent Living:75 Units Assisted Living:42 Units Townhomes:108 Units Residential:80 Lots The land fronting Highway 6 consisting of approximately 10 acres will develop as commercial. 7 ] ] I Preliminary Cost Estimates Waukee Development Waukee,Iowa Phase I Item Description Sanitary Sewer 8"Sanitary Sewer Sanitary Sewer Manholes Wye Connections Sewer Service Pipe EXHIBITD Unit Quantity Unit Price Price LF 3,520 32.00 $112,640.00 EA 15 2000.00 $30,000.00 EA 20 100.00 $2,000.00 LF 1,000 25.00 $25,000.00 Subtotal $169,640.00 LF 3,800 25.00 $95,000.00 EA 11 2000.00 $22,000.00 EA 15 500.00 $7,500.00 EA 20 200.00 $4,000.00 LF 1,000 15.00 $15,000.00 Snbtotal $143,500.00 LF 3,600 40.00 $144,000.00 EA 25 2,000.00 $50,000.00 LF 2,500 8.00 $20,000.00 CY 15,000 4.00 $60,000.00 SY 14,050 3.00 $42,150.00 SY 8600 28.00 $337,500.00 Subtotal $653,650,00 Total Construction Cost $996,790.00 Contingencies (10%)$96,679,00 Engineering (15%)$159,500.00 Construction Total $1,222,969.00 Water Main 8"Water Main Pipe Fire Hydrant Assembly 8"Gate Valves Service Connections Water Service Pipe Storm Sewer &Paving Storm Sewer Pipe Storm Sewer Structures Secondary Storm Sewer Excavation For Paving Sub grade Preparation Concrete Pavement 7" 8 EXHIBITE CERTIFICATE OF COMPLETION WHEREAS,the City of Waukee,Iowa (the "City"and EWlNG LAND DEVELOPMENT AND SERVICES (the "Company")did on or about the day of ,2003,make execute and deliver,each to the other,a Development Agreement (the "Agreement"),wherein and whereby the Company agreed,in accordance with the terms of the Agreement and the Urban Renewal Plan (the "Plan"),to develop certain real property owned by the Company and located within the City and within the City of Waukee Urban Renewal Plan (the "Plan"),to develop certain real property owned by the Company and located within the City and within the City of Waukee Urban Renewal Project Area and more particularly described as follows: (Legal Description) (THE "Property");and WHEREAS,the Agreement incorporated and contained certain covenants and restrictions with respect to the development of the Property,and obligated the Company to construct certain Minimum Improvements (as defined therein)in accordance with the Agreement;and WHEREAS,the Company has to the present date performed said covenants and conditions insofar as they relate to the construction of said Minimum Improvements in a manner deemed sufficient by the City to permit the execution and recording of this certification. 1NOW,THEREFORE,pursuant to the Agreement,this is to certify that all covenants and conditions of the Agreement with respect to the obligations of the Company,and its successors and assigns,relative to construction of the improvements on the Property have been satisfactorily completed. All other provisions of the Agreement shall otherwise remain in full force and effect until termination as provided therein. (SEAL) ATTEST: By: 9 EXHIBITF SEMIANNUAL CERTIFICATION This fonnmust be completed and submitted to the City Clerk of the City of Waukee on May I and November 1 of each year that EWING LAND DEVELOPMENT AND SERVICES requests financial incentives as per the Development Agreement dated,_ 1.Name ofCompany _ 2.Address,Phone _ 3.Contact Person _ 4.Have you attached copies of your property tax statement marked "paid"? Return all of the above information to the Waukee City Clerk at 230 Highway 6,Waukee,Iowa,50325 as set out in the Development Agreement. 10