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HomeMy WebLinkAbout2017-08-24-Resolutions 17-411_Apple Inc - Development Agr - Public Improvement AgrRESOLUTION NO.17-411 RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF AN AGREEMENT FOR PRIVATE DEVELOPMENT AND A PUBLIC IMPROVEMENT AGREEMENT AND FUND BY AND BETWEEN THE CITY OF WAUKEE AND APPLE,INC.("DEVELOPER"). WHEREAS,it is expected that on September 25,2017,this Council will find and determine that certain areas located within the City are eligible and should be designated as an urban renewal area under Iowa law,and will approve and adopt the Urban Renewal Plan (the "Plan")for the Waukee West Urban Renewal Area (the "Waukee West Urban Renewal Area"or "Area")described therein,which Plan will be 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's obligations under the proposed Agreement for Private Development ("Development Agreement")are expressly conditioned upon the City approving the Plan which authorizes the Development Agreement as an urban renewal project;and WHEREAS,Developer has been awarded incentives from the State of Iowa under the High Quality Jobs Program ("HQJP"),Iowa Code Chapter 15,Part 13,in exchange for the construction of certain Data Center and Support Buildings and creation jobs on portions of the proposed Waukee West Urban Renewal Area as defined and legally described in the Development Agreement ("Development Property");and WHEREAS,provided the Developer enters into an agreement with the Iowa Economic Development Authority for the Initial Project under the High Quality Jobs Program (the "Program"),the incentives set forth in the Development Agreement would serve as the local match under the Program in support of the Initial Project;and WHEREAS,the Development Agreement would allow the Developer to construct Data Center and Support Buildings in multiple Projects (as defined in the Development Agreement) on the Development Property,to be used in its data center business operations,together with all related site improvements,under the terms set forth in the Agreement;and WHEREAS,pursuant to the Development Agreement,the Developer would execute a Minimum Assessment Agreement for each Project pursuant to Iowa Code Section 403.6(19) whereby Developer,the holder of any Mortgage,and all prior lienholders would agree to a minimum assessed value for each Data Center Building to be constructed on the Development Property (building value only)of not less than $200,000,000 for the Initial Project and not less than $909 per square foot for each subsequent Project,commencing upon completion of each Data Center Building and continuing until the earlier of the end of the last fiscal year the City can legally collect incremental taxes based upon the construction of that defined building under Iowa Code 403.19(2)or first fiscal year the Data Center Building is no longer eligible to receive the Economic Development Abatement described in the Development Agreement;and WHEREAS,Developer would fttrther agree in the Development Agreement to employ,at the Qualifying Wage Threshold,at least fifty (50)Full Time Equivalent Jobs for the Initial Project,and at least thirty one (31)Full Time Equivalent Jobs for each subsequent Project,upon the completion of each Project,as more particularly defined in the Development Agreement;and WHEREAS,in exchange,and subject to the terms and conditions set forth in the Development Agreement,the City would exempt,pursuant to Iowa Code Section 15.332 (the "Economic Development Abatement"),up to 71.30556'lo of the value added by the Data Center and Support Buildings (building value only)from property taxes for a period of up to twenty (20) years;and WHEREAS,as an additional economic development incentive,if the City were to adopt a franchise fee under Iowa Code sections 364.2(4)(f)and 384.3A,the City would rebate 100'lo of the franchise fees actually paid by Developer and received by the City with respect to Developer's operation of the Data Center and Support Buildings and related operations on the Development Property,subject to the terms and conditions of the Development Agreement;and WHEREAS,Developer has requested the City install certain Public Improvements on an expedited basis in order to facilitate its development of the Development Property,and in consideration of the City's agreement to complete those Public Improvements as set forth in the Development Agreement,and consistent with the Parties'mutual interest in advancing the development of the community,the City and Developer propose to enter into a separate Public Improvement Agreement and Fund ("PIF Agreement");and WHEREAS,pursuant to the terms of the PIF Agreement,the Developer agrees to contribute $500,000 per Data Center Building constructed on the Development Property each year until certain maximum contributions to the Public Improvement Fund are made,and the City agrees to utilize the Fund to advance the completion of improvements for the benefit of the community as set forth in the PIF Agreement;and WHEREAS,the Council has determined that the Development Agreement and the PIF Agreement are 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 WHEREAS,Iowa Code Chapters 15,15A,364,384,and 403,authorize cities to make grants or abate taxes to advance economic development activities and in furtherance of the objectives of an urban renewal project,to appropriate such funds and make such expenditures as may be necessary to carry out the purposes of said Chapters,to levy taxes and assessments for such purposes,and to enter into agreements to provide services with owners of tax exempt property;and WHEREAS,the Council has determined that the Development Agreement and the City's performance thereunder are in furtherance of appropriate economic development activities and objectives of the City within the meaning of Chapters 15,15A and 403 of the Iowa Code taking into account any or all of the factors set forth in Chapter 15A,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. 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 Development Agreement and has considered the extent of objections received from residents or property owners as to said proposed Development 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 Development Agreement,including but not limited to making of grants or abatement of property taxes in connection with the development of the Development Property under the terms set forth in the Development 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 Development 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 15,15A and 403 of the Iowa Code,taking into account the factors set forth therein. Section 2.That the form and content of the Development Agreement and the PIF 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 Development Agreement the PIF 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 Development Agreement and PIP Agreement as executed. PASSED AND APPROVED this 24'"day of August,2017. ayor ATTEST: City Clerk ROLL CALL VOTE Anna Bergman R.Charles Bottenberg Brian Harrison Shelly Hughes Larry R.Lyon AYE X X X X NAY ABSENT ABSTAIN X