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HomeMy WebLinkAbout2017-11-06-Resolutions 17-506_117 Land Company - RJ Lawn Service Inc - Development AgrRESOLUTION NO.17-506 RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF WAUKEE,117 LAND COMPANY, LLC,AND RJ LAWN SERVICE,INC. WHEREAS,by Resolution No.17-483,adopted October 16,2017,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 Southwest Business Park Urban Renewal Plan (the "Plan")for the Southwest Business Park Urban Renewal Area (the "Urban Renewal Area"or "Area")described therein,which Plan 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 117 Land Company,LLC (the "Developer")and RJ Lawn Services,Inc.(the "Employer"),in the form of a proposed Development Agreement (the "Agreement")by and among the City,Developer,and Employer pursuant to which Developer and Employer will develop certain property in the Area as defined in the Agreement (the "Development Property");and WHEREAS,the Developer will transfer to McCarthy Brothers,LLC a portion of the Development Property (as defined in the Agreement),which property will then be leased by McCarthy Brothers,LLC to Employer (the "Employer Parcel");and WHEREAS,the Employer will construct certain Minimum Improvements on the Employer Parcel as defined and legally described in the Agreement;and consisting of the construction of a 4,960 square foot first floor office with a 4,300 square foot storage basement, along with a 10,560 square foot separate warehouse building,together with all related site improvements,as outlined in the proposed Development Agreement;and WHEREAS,the Agreement contemplates the Developer will construct Public Improvements described therein on the Development Property to prepare the Development Property for further development;and WHEREAS,the Agreement further proposes that the City will make up to two (2) consecutive annual payments of Economic Development Grants to Employer consisting of 100'to of the Tax Increments derived from the Employer Parcel pursuant to Iowa Code Section 403.19, as well as up to eight (8)consecutive annual payments of Economic Development Grants to Developer consisting of 100'ro of the Tax Increments derived from the Employer Parcel,all such Grants generated by the construction of the Minimum Improvements,under the terms and following satisfaction of the conditions set forth in the Agreement;and WHEREAS,the Agreement also proposes that the City will make up to five (5) consecutive annual payments of Economic Development Grants to Developer consisting of 100%of the Tax Increments pursuant to Iowa Code Section 403.19,derived from those other parcels of the Development Property that are developed,the cumulative total for all payments to Developer not to exceed the lesser of $1,150,000,or the aggregate amount of the costs of the Public Improvements,under the terms and following satisfaction of the conditions set forth in the Agreement;and WHEREAS,one of the obligations of Employer relates to employment retention and/or creation;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 loans and grants to the Developer and the Employer 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 6'day of November,2017 or ATTEST: IAJ ~IP. City Clerk ROLL CALL VOTE Anna Bergman R.Charles Bottenberg Brian Harrison Shelly Hughes Larry R.Lyon AYE X X X X X NAY ABSENT ABSTAIN