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HomeMy WebLinkAbout2017-12-22-Resolutions 17-585_Fridley Theatres - Development AgrRESOLUTION NO.17-585 RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF AN AGREEMENT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE CITY OF WAUKEE AND FRIDLEY THEATRES,LLC ("DEVELOPER") WHEREAS,by Resolution No.13-257,adopted October 21,2013,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 Gateway Urban Renewal Plan (the "Plan")for the Gateway Urban Renewal Area (the "Urban Renewal Area"or "Area") described therein,which Plan,as amended,is 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 has received a proposal from Fridley Theaters,LLC.(the "Developer"),in the form of a proposed Development Agreement (the "Agreement")by and among the City and the Developer,pursuant to which,among other things,the Developer would agree to construct certain Minimum Improvements costing and valued in excess of $10,000,000.00 (as defined in the Agreement)on certain real property located within the Gateway Urban Renewal Area as defined and legally described in the Agreement including,but not limited to,the construction of a 66,000 square foot building.The building shall be constructed for and used as a movie theater including,at least 15 screens as generally depicted on Exhibit B-2 including at the minimum I)one(1)IMAX theater with IMAX Laser GT system and IMAX sound system;2)one(1)wide screen theater;3)Laser projection in all theaters;4) Dolby ATMOS Sound in all theaters;5)Restaurant,bar and food and beverage service in a minimum of two(2)theaters,as outlined in the proposed Development Agreement;and WHEREAS,the Agreement proposes that Developer will dedicate property to the City,at no cost to the City,to be used as right-of-way for certain Public Improvements and Developer shall construct at its sole cost and expense certain street,storm sewer,sanitary sewer and water main Public Improvements in the Urban Renewal Area,as described in the Agreement;and WHEREAS,the Agreement further proposes that the Developer employ each year of the agreement a minimum number of full time employees throughout the term of the agreement as more particularly specified therein;and WHEREAS,the Agreement further proposes that the City will make seven (7) consecutive annual payments of Economic Development Grants to Developer consisting of 100'/0 of the Tax Increments pursuant to Iowa Code Section 403.19 and generated by the construction of the Minimum Improvements but in no event will exceed the amount accrued under the formula outlined in the proposed Development Agreement,under the terms and following satisfaction of the conditions set forth in the Agreement;and WHEREAS,Iowa Code Chapters 15A and 403 authorize cities to make loans and 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 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 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 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 Agreement and has considered the extent of objections received from residents or property owners as to said proposed 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 Agreement, including but not limited to making of grants to the Developer in connection with the development of the Development Property under the terms set forth in the 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 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 15A and 403 of the Iowa Code,taking into account the factors set forth therein. Section 2.That the form and content of the 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 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 Agreement as executed. PASSED AND APPROVED this 22nd day of December,2017. Anna Bergman,Mayor Pro Tem ATTEST: Rebecca D.Schuett,City Clerk ROLL CALL VOTE Anna Bergman R.Charles Bottenberg Brian Harrison Shelly Hughes Larry R.Lyon AYE X X NAY ABSENT ABSTAIN X