HomeMy WebLinkAbout2021-06-07-J01S Termination of Agreement_OneNeck AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: June 7, 2021
AGENDA ITEM: Consideration of approval of a resolution terminating development
agreement (Oneneck Data Center Holdings, LLC).
FORMAT: Resolution
SYNOPSIS INCLUDING PRO & CON: The City approved a site plan for the OneNeck Data
Center located along Alice’s Road in 2008. The building was designed
to allow for future expansion to the west. Because the building was
designed to be expanded, the developer requested and received approval
to install what was considered to be a temporary exterior finished wall
along the west elevation. At the time, the site plan ordinance required
that the permanent wall be brick. The developer was required to post a
bond for the future finished wall which is required to be renewed on an
annual basis.
Since the time the original site plan was approved, the site plan
ordinance was revised. If the building were constructed today, the
current “temporary” west wall would be in compliance with the existing
site plan ordinance. While there are still plans for future expansion of
the existing building, there is no timeline for that expansion.
The property owner has requested consideration to terminate the existing
development agreement related to the western elevation of the building.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: Staff is supportive of the proposed termination.
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
II. Termination of Development Agreement
PREPARED BY: Brad Deets, Development Services Director
REVIEWED BY:
PUBLIC NOTICE INFORMATION –
J1S
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THE CITY OF WAUKEE, IOWA
RESOLUTION 2021-
APPROVING TERMINATION OF DEVELOPMENT AGREEMENT – ONENECK
DATA CENTER HOLDINGS, LLC
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA
WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized
Municipal Organization; AND,
WHEREAS, OneNeck Data Center Holdings, LLC as assignee to TEAM Des Moines
Partners, LLC, a Delaware Limited Liability Company, as successor in interest to TEAM
Technologies, LLC, as successor-in-interest to TEAM Technologies, L.L.C. (“Developer”)
and the City entered into that certain Developers Agreement recorded on November 16, 2008
in the public records of Dallas County, State of Iowa at Book 2008, Page 15674 (the “Original
Agreement”) regarding Developer’s improvement of the real property legally described as
follows (the “Property”):
Lot 1 of The Crossing at Alice’s Road Plat 3, an Official Plat within the City
of Waukee, Dallas County, Iowa; AND
WHEREAS, Developer completed construction of phase 1 of the Property; AND
WHEREAS, Developer and the City entered into an Amended and Restated Developers
Agreement recorded on December 27, 2010 (the “2010 Amended Agreement”) in the public
records of Dallas County, State of Iowa at Book 2010, Page 18226 which Amended
Agreement substituted the Original Agreement and provided an extension of time for the
completion of Phase 2 and 3 as more particularly described therein; AND
WHEREAS, Developer and the City entered into an Amended and Restated Developers
Agreement recorded on April 12, 2012 (the “2012 Amended Agreement”) in the records of
the Dallas County Recorder at Book 2012, Page 5669 which Amended and Substituted the
2010 Amended Agreement which allowed Developer to combine the phase 2 and 3
improvements (now collectively referred to as ”Phase 2”) and extended the time for
completion of the same as set forth therein; AND
WHEREAS, Developer and the City entered into an Amended and Restated Developers
Agreement recorded on October 20, 2014 (the “2014 Amended Agreement”) in the records of
the Dallas County Recorder at Book 2014, Page 14152 which Amended and Substituted the
2012 Amended Agreement which extended the time for completion of the Phase 2
improvements; AND
WHEREAS, the City has, since 2014, amended its site plan ordinance and as a result the
western elevation of the Developer’s existing structure that is the subject of the 2014
Amended Agreement is now in compliance with the City site plan requirements; AND
2
WHEREAS, Developer has not elected to proceed with the Phase 2 improvements
contemplated in the 2014 Amended Agreement and the parties desire to terminate the
agreement as set forth herein.
NOW THEREFORE BE IT RESOLVED, the Developer and the City, in consideration of
the foregoing and other good and valuable consideration agree that 2014 Amended
Agreement should be terminated consistant with the termination of developers agreement
attached hereto as Exhibit A.
Passed by the City Council of the City of Waukee, Iowa, and approved this the 7th day of
June 2021.
____________________________
Anna Bergman, Presiding Officer
Attest:
___________________________________
Rebecca D. Schuett, City Clerk
ROLL CALL VOTE AYE NAY ABSENT ABSTAIN
Anna Bergman Pierce
R. Charles Bottenberg
Chris Crone
Larry R. Lyon
Ben Sinclair
Prepared by: Steve Brick, Brick Gentry Law Firm, 6701 Westown Pkwy, West Des Moines, IA 50263 (515) 274-1450
Return to: Rebecca Schuett, City Clerk, City of Waukee, 230 W Hickman Road, Waukee, IA 50263 (515) 978 -7904
TERMINATION OF DEVELOPERS AGREEMENT
This Termination of Developers Agreement (this “Agreement”) is made and entered into
by and between OneNeck Data Center Holdings, LLC as assignee to TEAM Des Moines
Partners, LLC, a Delaware Limited Liability Company, as successor in interest to TEAM
Technologies, LLC, as successor-in-interest to TEAM Technologies, L.L.C. (“Developer”), and
the City of Waukee, Iowa (“City”).
WITNESSETH:
WHEREAS, Developer and the City entered into that certain Developers Agreement
recorded on November 16, 2008 in the public records of Dallas County, State of Iowa at Book
2008, Page 15674 (the “Original Agreement”) regarding Developer’s improvement of the real
property legally described as follows (the “Property”):
Lot 1 of The Crossing at Alice’s Road Plat 3, an Official Plat within the City of
Waukee, Dallas County, Iowa; AND
WHEREAS, Developer completed construction of phase 1 of the Property; AND
WHEREAS, Developer and the City entered into an Amended and Restated Developers
Agreement recorded on December 27, 2010 (the “2010 Amended Agreement”) in the public
records of Dallas County, State of Iowa at Book 2010, Page 18226 which Amended Agreement
substituted the Original Agreement and provided an extension of time for the completion of
Phase 2 and 3 as more particularly described therein; AND
WHEREAS, Developer and the City entered into an Amended and Restated Developers
Agreement recorded on April 12, 2012 (the “2012 Amended Agreement”) in the records of the
Dallas County Recorder at Book 2012, Page 5669 which Amended and Substituted the 2010
Amended Agreement which allowed Developer to combine the phase 2 and 3 improvements
(now collectively referred to as ”Phase 2”) and extended the time for completion of the same as
set forth therein; AND
WHEREAS, Developer and the City entered into an Amended and Restated Developers
Agreement recorded on October 20, 2014 (the “2014 Amended Agreement”) in the records of
the Dallas County Recorder at Book 2014, Page 14152 which Amended and Substituted the 2012
Amended Agreement which extended the time for completion of the Phase 2 improvements;
AND
2
WHEREAS, the City has, since 2014, amended its site plan ordinance and as a result the
western elevation of the Developer’s existing structure that is the subject of the 2014 Amended
Agreement is now in compliance with the City site plan requirements; AND
WHEREAS, Developer has not elected to proceed with the Phase 2 improvements
contemplated in the 2014 Amended Agreement and the parties desire to terminate the agreement
as set forth herein.
THEREFORE, the Developer and the City, in consideration of the foregoing and other
good and valuable consideration agree that 2014 Amended Agreement should be terminated as
follows:
1. Developer has informed the City that at this time it does not intend to complete
the Phase 2 improvements contemplated in the 2014 Amended Agreement but may request
completion of Phase 2 in the future. The City acknowledges that the exterior on the west
elevation of the proposed Phase 1 improvements (the “Phase 1 Temporary Exterior”) is in
compliance with the City’s current site plan ordinance, as amended, and will proceed to issue a
permanent certificate of occupancy for the Phase 1 improvements.
2. City hereby releases the Developer from the bond requirements required by the
2014 Amended Agreement.
3. This Agreement terminates in its entirety the 2014 Amended Agreement, and
upon termination, the 2014 Amended Agreement shall be of no further effect , and both parties
shall be released and forever discharged from their rights and responsibilities under said
agreement.
[Signature page follows.]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates set
forth in the notary blocks included below.
THE CITY OF WAUKEE, IOWA ONENECK DATA CENTER
HOLDINGS, LLC AS ASSIGNEE
TO TEAM DES MOINES
PARTNERS, LLC, A
DELAWARE LIMITED
LIABILITY COMPANY
By:_____________________
By: _____________________
Courtney Clarke, Mayor Hank Koch
ATTEST:
By:______________________
Rebecca D. Schuett, City Clerk
STATE OF MICHIGAN
)
) ss.
COUNTY OF ONTONAGON )
On this ____ day of ______________, 2021, before me, the undersigned, a Notary Public
in and for the State of Michigan, personally appeared Hank Koch, to me personally known, who
being by me duly sworn, did say that the person is officer of OneNeck Data Center Holdings as
assignee to TEAM Des Moines Partners, LLC, a Delaware Limited Liability Company, and that
the instrument was signed on behalf of said company by authority of its members; and that said
person acknowledged the execution of the foregoing instrument to be the voluntary act and deed
of the company by it voluntarily executed.
___________________________________
Notary Public in and for the State of Iowa
My Commission expires ____________
4
STATE OF IOWA
) SS.
COUNTY OF DALLAS )
On this ____ day of ______________, 2021 before me, the undersigned, a Notary Public
in and for the State of Iowa, personally appeared Courtney Clarke and Rebecca D. Schuett, 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 official seal of said City, and that the instrument was signed and sealed on behalf of the
City, by authority of its City Council, and that Courtney Clarke and Rebecca D. Schuett
acknowledged the execution of the instrument to be their voluntary act and deed and the
voluntary act and deed of the City, by it and them voluntarily executed.
___________________________________
Notary Public in and for the State of Iowa
My Commission expires ____________