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HomeMy WebLinkAbout2003-07-07-Resolutions 03-156_Hawthorne Plaza - Development AgrRESOLUTION 03-156 ITHECITYOFWAUKEE,IOWA APPROVING DEVELOPMENT AGREEMENT WITH STEPHEN R.GRUBB FOR HATHORNE PLAZA DEVELOPMENT IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE,IOWA WHEREAS,Stephen R.Grubb has requested the City of Waukee enter into a Development Agreement to provide incentive for construction of a commercial building in the vicinity of the intersection of University Avenue and Boone Drive to be known as Hawthorne Plaza;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 establish urban renewal areas and to undertake economic development projects;AND, WHEREAS,the City adopted a resolution in November 2000,which established a policy with respect to the use of economic development incentives such as tax rebate and tax increment financing;AND, WHEREAS,said Development Agreement -06-24-03 is attached hereto and made a part hereof.I NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council in session this ih day of July 2003 that it hereby approves the Development Agreement with Stephen R.Grubb for Hawthorne Plaza Development with the stipulation that the site plan be brought before the City Council within 30 days ofthe approval ofthis resolution. Attest: ROLL CALL VOTE AYE NAY ABSENT Nicholas C.Gruber X IDonaldL.Bailey,JI.X Bill Peard X Mike Watts X Darlene Stanton X DEVELOPMENT AGREEMENT -6-24-03 This Development Agreement (the "Agreement")is entered into between the City of Waukee,Iowa (The "City")and Stephen R.Grubb ("Grubb")as of the day of _ 2003. WHEREAS,Grubb requests the City enter into a development agreement for development on certain property more particularly described in 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 ;and WHEREAS,Grubb will causes a commercial building known as Hawthorne Plaza to be constructed consisting of up to 36,795 square feet of retail and office space in such facility (the "Project")in accordance with this Agreement and as represented 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 l5A of the Code of Iowa authorizes cities to provide grants,loan guarantees,tax incentives and other financial assistance to or for the benefit of private persons;and WHEREAS,Grubb has requested that the City provide an economic development assistance package from the City through a method of rebating to Grubb certain property taxes which will be paid with respect to the Project;and WHEREAS,the City adopted a resolution in November -'2000,which established a policy with respect to the use of economic development incentives such as tax rebate and tax increment fmancing;and NOW,THEREFORE,in consideration of the mutual obligations contained in this Agreement, the parties hereto agree as follows: 1.Agreements by Company,Grubb agrees: a.Site plan must be approved by City Council b.To begin construction of the Project no later than three months after approval of the site plan by the City as submitted by Grubb and to substantially complete construction no later than one year after construction begins,subject to any delays beyond the reasonable control of Grubb.Substantial completion is defined as substantial completion of the requirements of the site plan,which is the external part of the building.The internal part of the building will be completed as the space is leased to tenants. c.If Grubb does not complete the improvements as contemplated herein,this Agreement shall be deemed null and void and neither party shall have any further responsibility to the other. 2.Tax Rebate by City.In recognition of Grubb's commitments set out in Paragraph 1,the City agrees to make twelve (12)consecutive semi-annual economic development tax rebate payments to Grubb in each fiscal year during the term of this Agreement,pursuant to Chapters 15A and 403 of the Code of Iowa,in amounts which are equal to fifty percent (50%)of the incremental property taxes paid by Grubb as represented in Exhibit C. 3.Economic Development Grants.The City agrees to use the incremental property taxes from the Property as follows: a.Rebate payments equal to fifty percent (50%)of the incremental property taxes paid by Grubb shall be made payable to Grubb semi-annually each fiscal year,beginning with the first tax payment that includes an assessment for the improvements contemplated herein,and continuing through and including the sixth year period contemplated herein. b.The remaining portion of the incremental property taxes shall be retained by the City. c.Rebate payments shall be paid to Grubb within thirty (30)days after payment by Grubb. 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 (provided, however,that the City's obligation to make the payments in Paragraph 4(b)of this Agreement shall also be payable from funds received by the City from payments made by Grubb.) 4.Conditions.The tax rebate payments are subject to the following conditions: a.Completion of construction of the facility,in accordance with Grubb's obligations hereunder and submission of the Certificate of Completion as set forth in Exhibit D attached hereto and incorporated herein by this reference. b.Timely payment of property taxes by Grubb when due and submission to the City of a receipt or canceled check as evidence of each tax payment. The above-matters set forth in subsection b shall be submitted as part of a semi-annual certification submitted by Grubb for each year which shall be in the form attached hereto as Exhibit E incorporated herein by this reference. Failure of Grubb to meet the eligibility requirements for anyone tax rebate payment shall not subject Grubb to any penalty with respect to prior payments and shall not operate in any manner to restrict Grubb's eligibility for future payments. 5.The parties agree that Grubb mayor may not erect the Project in its entirety and mayor may not erect the Project in increments or parts.Grubb shall be entitled to receive the rebate as outlined herein for each increment or part of the Project that it erects with the payments called for hereunder to be paid according to the terms and payment schedule set forth in this Agreement. Grubb agrees that if the project is done in phases that he will commence the second phase ofthe project within one year from completion of the first phase to be eligible for the tax abatement on the second phase.Completion of the first phase shall be determined by issuance of a certificate of occupancy.If Grubb does not commence additional phases of the project within the one year period,this Agreement will be null and void as to any part of the project which is J not connnenced within the one year period.This provision shall not in any way affect the right of Grubb to receive the benefits of this Agreement for the first phase of the project. 6.The City agrees that in consideration for this agreement and other valuable consideration it will not attempt to assess Grubb for any signalization or traffic signals at the intersection of Boone and University Avenue. 7.The parties agree that Grubb will construct a left entrance lane and a deceleration lane at its cost as shown by the shaded area of the attached Exhibit F The City agrees that in consideration for this agreement by Grubb and other valuable consideration the City will not attempt to assess Grubb for any other tum lanes or deceleration lanes in conjunction with this Projector on Boone and University Avenue. In consideration for Grubb's agreement in this paragraph,the City agrees and insures that it will provide "full movement access"to the driveway from Boone Drive and University Avenue and will not place a median on Boone Drive or University Avenue to limit access to the driveway. 8.Amendment/Assigmnent.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 Grubb's rights to receive the economic development tax rebate payments hereunder may be assigned by Grubb 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 Grubb 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 connnercial facility.The City shall either approve or deny such request within thirty (30)days after receipt of such request by the City Administrator of the City. 9.Binding Effect.This Agreement shall mure to the benefit of and be binding upon the successors and assigns of the parties. 10.Counterparts.This Agreement may be executed in any number of counterparts,each of which shall constitute one and the same instrument. 11.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. 12.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. 13.Recording.This Agreement shall be recorded with the Dallas County,Iowa,Recorder.The City and Grubb 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.] CITY OF WAUKEE,IOWA IBy:_ ,Mayor Attest: Mark Arentsen,City Clerk Seal By:,_ Stephen R.Grubb STA1E OF IOWA,COUNTY OF POLK,ss: On this day of ,2002,before me,the undersigned,a Notary Public in and for the State ofIowa,personally appeared and ,to me personally know,and who,being by me duly 1 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.adopted by the City Council on the day of ,2003,and that and __________________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 ofIowa STATE OF IOWA,POLK COUNTY,ss: On this ,before me,the undersigned,a Notary Public in and for said State,personally appeared Stephen R.Grubb ,a single person,to me known to be the identical person named in and who executed the foregoing instrument and acknowledged that they executed the same as their voluntary act and deed. Notary Public in and for the State ofIowa I EXHIBIT A Legal Description Lot 1 Hawthorne Ridge 1 An a.p.in the City of Waukee,Dallas County,Iowa EXHIBITB 1 Project Rendering I EXHIBITC PERCENT OF PERCENT OF YEAR INCREMENTAL INCREMENTAL TAXES RETAINED TAXES RETAINED BY THE BY THE CITY DEVELOPER 1 50%50% 2 50%50% 3 50%50% 4 50%50% 5 50%50% 6 50%50% EXHIBITD I CERTIFICATE OF COMPLETION WHEREAS,the City of Waukee,Iowa (the "City")and Stephen R.Grubb (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 Grubb agreed,in accordance with the terms of the Agreement and the Urban Renewal Plan (the "Plan"),to develop certain real property owned by Grubb and located within the City and within the City of Waukee Urban Renewal Plan (the "Plan"),to develop certain real property owned by Grubb 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 Grubb to construct certain Minimum Improvements (as defmed therein)in accordance with the Agreement;and WHEREAS,Grubb 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 J City to permit the execution and recording of this certification. NOW,THEREFORE,pursuant to the Agreement,this is to certify that all covenants and conditions of the Agreement with respect to the obligations of Grubb,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)CITY OF WAUKEE,IOWA By:_ Mayor ATTEST: By:_ City Clerk I EXHIBITE SEMI-ANNUAL CERTIFICATION This form must be completed and submitted to the City Clerk of the City of Waukee on May 1 and November 1 of each year that Stephen R.Gmbb requests financial incentives as per the Development Agreement dated,_ 1.Name of Company _ 2.Address,Phone _ 3.Contact Person _ 4.Have you attached copies of your property tax statement marked "p aid"? 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. EXHIBITF ACCELERATION/DECELERATION LANE DRAWING ] Currently Being Developed ] I