HomeMy WebLinkAbout2020-07-20-G02 Waukee Consolidated URP Amendment 3_PH AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: July 20, 2020
AGENDA ITEM: Public Hearing on a proposed Urban Renewal Plan for an Amendment
No. 3 of the Waukee Consolidated Urban Renewal Plan in the City of
Waukee, State of Iowa
FORMAT: Public Hearing
SYNOPSIS INCLUDING PRO & CON: The City Council adopted Amendment No. 1 to the
Waukee Consolidated Urban Renewal Plan in early November 2019
followed by Amendment No. 2 in January 2020. The proposed
Amendment No. 3 includes an update to the list of previously approved
projects as well as an update to the list of eligible urban renewal projects.
The amendment adds no new land to the area.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: Staff held a consultation meeting with the County and
the affected school district(s) involved in the Plan area to review the
proposal on June 22, 2020. No one attended the meeting.
RECOMMENDATION: Hold the Public Hearing.
ATTACHMENTS: I. Proposed Amendment No. 3 to Waukee Consolidated Urban
Renewal Plan
PREPARED BY: Brad Deets
REVIEWED BY:
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION: Dallas County News
DATE OF PUBLICATION: July 9, 2020
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AMENDMENT NO. 3
to the
WAUKEE CONSOLIDATED URBAN
RENEWAL PLAN
for the
WAUKEE CONSOLIDATED
URBAN RENEWAL AREA
Gateway Economic Development Urban Renewal Area,
Waukee West Urban Renewal Area, and
Waukee Central Urban Renewal Area
CITY OF WAUKEE, IOWA
Amendment No. 1 – November 2019
Amendment No. 2 – January 2020
Amendment No. 3 – July 2020
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AMENDMENT NO. 3
to
WAUKEE CONSOLIDATED
URBAN RENEWAL PLAN
CITY OF WAUKEE, IOWA
INTRODUCTION
The City of Waukee, Iowa (the “City”) adopted Amendment No. 1 to the Waukee Consolidated
Urban Renewal Plan (“Plan” or “Urban Renewal Plan”) by Resolution No. 19-402 on November
4, 2019, in order to consolidate the City’s previously established Gateway Economic
Development Urban Renewal Area, Waukee West Urban Renewal Area, and Waukee Central
Urban Renewal Area into the Waukee Consolidated Urban Renewal Area (“Area” or “Urban
Renewal Area”).
The Urban Renewal Plan was amended in January 2020 (Amendment No. 2). The Plan is being
further amended by this Amendment No. 3 (“Amendment” or “Amendment No. 3”) to update the
list of previously approved projects and the list of eligible urban renewal projects.
This Amendment adds no new land to the Area.
Except as modified by this Amendment, the provisions of the Urban Renewal Plan, as previously
amended, are hereby ratified, confirmed, and approved and shall remain in full force and effect as
provided herein. In case of any conflict or uncertainty, the terms of this Amendment shall
control. Any subsections in the Plan, as previously amended, not mentioned in this Amendment
shall continue to apply to the Plan, as amended.
DEVELOPMENT PLAN
The City has a general plan for the physical development of the City as a whole outlined in the
Waukee Comprehensive Land Use Plan, adopted by the City in 2019. The goals and objectives
of the Urban Renewal Plan, and this Amendment, including the urban renewal projects described
herein, are in conformity with the 2019 Comprehensive Plan.
The Urban Renewal Plan, as amended, does not in any way replace or modify the City’s current
land use planning or zoning regulation process.
The need for improved traffic, public transportation, public utilities, recreational and community
facilities, or other public improvements within the Urban Renewal Area is set forth in this Plan,
as amended. As the Area develops, the need for public infrastructure extensions and upgrades
will be evaluated and planned for by the City.
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UPDATE TO PREVIOUSLY APPROVED URBAN RENEWAL PROJECTS
Numerous urban renewal projects were authorized prior to the date of this Amendment No. 3 and
are continuing, including but not limited to the following (with updates as applicable):
A. Development Agreement with Midtown Waukee Holdings, LLC: The City previously
approved a development agreement (“Original Agreement”) with Midtown Waukee Holdings,
LLC (“Original Developer”), under the Development Agreements (Future) project authorization
included in Amendment No. 1 to the Plan, which project description was updated in Amendment
No. 2 to the Plan. Pursuant to the Original Agreement, Original Developer agreed to construct six
commercial buildings comprising an approximately 255,000 square feet entertainment district,
together with all related site improvements (the “Original Minimum Improvements”), on certain
real property located within the Urban Renewal Area. In consideration for Original Developer’s
obligations under the Original Agreement, the City agreed to make up to twelve (12) annual
payments to Original Developer, each consisting of 80% of the Tax Increments pursuant to the
Iowa Code Section 403.19 and generated by the construction of the Original Minimum
Improvements, under the terms and following satisfaction of the conditions set forth in the
Original Agreement, up to a cumulative total for all such payments to Original Developer not to
exceed $19,700,000. The City anticipates entering into an Amended and Restated Agreement,
which will replace the Original Agreement. The property subject to the Original Agreement was
transferred to The Quarter at Waukee, L.L.C, which will now be the developer of the project
(“Developer”). The Amended and Restated Agreement is anticipated to include changes to the
parties, description of the Development Property and Minimum Improvements, and to the terms
for construction, assessed value and operation of the Minimum Improvements on the
Development Property. It is anticipated that additional property is being added to the
Development Property to support the project, which additional property will be acquired by
Waukee Prairie Apartments LLC. Subject to the terms and conditions set forth in the anticipated
Amended and Restated Agreement, the City will provide Developer with Economic
Development Grants to incentivize a total of an anticipated eighteen (18) commercial buildings
and related site improvements, with a total investment of approximately $100,000,000. The City
expects to make Economic Development Grants to Developer in the form of rebates of varying
percentages of incremental taxes generated by the separate buildings over a period of twelve (12),
sixteen (16) or twenty (20) years, depending on the nature of the specific commercial building as
described in the Amended and Restated Agreement. The cost of such grants shall not exceed
$32,500,000 and are subject to the terms and conditions of a detailed development agreement.
B. Agreement with Kettleview, L.L.C. Under authority granted by the Gateway Economic
Development Urban Renewal Plan, as previously amended, the City entered into a Development
Agreement (the "Original Agreement") with Kettleview, L.L.C. (the “Developer”), pursuant to
which the Developer agreed to cause certain Minimum Improvements to be constructed on
certain real property located within the Gateway Economic Development Urban Renewal Area
and to use commercially reasonable efforts to obtain tenants or purchasers to employ employees
in the Minimum Improvements. On November 4, 2019, the City approved an Amended and
Restated Agreement which replaced the Original Agreement and made changes to terms relating
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to the description of the Minimum Improvements, the completion dates, the Economic
Development Grant schedules, and the Minimum Assessment Agreement. Pursuant to the
Amended and Restated Agreement, the City agreed to construct certain Public Improvements and
provide Developer with Economic Development Grants for five (5) distinct phases of
development as further described in the Amended and Restated Agreement, with the Grants for
each phase to be made as five (5) consecutive annual payments, each annual payment in the
amount of 100% of the Tax Increment generated by the commercial development in that
particular phase, not to exceed $4,100,000 in the aggregate, under the terms and conditions of the
Amended and Restated Agreement. The aggregate Grant maximum included in the Amended and
Restated Agreement was a reduction from the Original Agreement which included a $5,300,000
maximum. The Amended and Restated Minimum Assessment Agreement established an
aggregate value for the completed Minimum Improvements at $53,900,000. On June 15, 2020,
the City approved an Amendment to the Amended and Restated Agreement, which made changes
to terms relating to: (i) the description of the Minimum Improvements, (ii) the Economic
Development Grant schedules, (iii) the property included as part of the Development Property,
and (iv) the minimum assessed values included in the Amended and Restated Minimum
Assessment Agreement. The Amendment to the Amended and Restated Agreement did not alter
the aggregate maximum Grant payment amount. The Amendment to the Amended and Restated
Minimum Assessment Agreement establishes a minimum aggregate value for the completed
Minimum Improvements, as revised, at $33,200,000.
C.Waukee Crossing, LLC: Under authority granted by Amendment No. 2 to the Plan, the
City entered into a development agreement with Waukee Crossing, LLC (“Developer”), pursuant
to which Developer will construct commercial buildings and related parking and site
improvements on certain real property within the Urban Renewal Area. The commercial
buildings are anticipated to house various commercial and retail businesses. The agreement also
requires the construction of certain public improvements including NW 2nd Street from Hickman
Road through and including its intersection with NW Venture Drive, and the north turning lane
on east bound Hickman Road. Construction is expected to be completed in 2022. The City
expects to make Economic Development Grants to Developer in the form of rebates of
incremental taxes generated by the project, over period of nine (9) years. The cost of such grants
shall not exceed $500,000 and are subject to the terms and conditions of a detailed development
agreement.
ELIGIBLE URBAN RENEWAL PROJECTS
(Amendment No. 3)
Although certain project activities may occur over a period of years, the Eligible Urban Renewal
Projects under this Amendment No. 3 include:
1.Development Agreements:
A. Future Development Agreements: The City expects to consider requests for development
agreements for projects that are consistent with the Plan, in the City’s sole discretion. Such
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agreements are unknown at this time, but based on past history, and dependent on development
opportunities and climate, the City expects to consider incentives as authorized by the Plan,
including but not limited to land, loans, grants, rebates, public infrastructure assistance and other
incentives. The costs of such development agreements will not exceed $15,000,000 -
$20,000,000.
FINANCIAL DATA
1. July 1, 2019, constitutional debt limit: $104,866,529
2. Current outstanding general obligation debt: $75,885,000
3. Proposed amount of indebtedness to be incurred
(Amendment No. 3): A specific amount of debt to be
incurred for the Eligible Urban Renewal Projects
(Amendment No. 3) described in this Amendment has
not yet been determined. This document is for planning
purposes. The estimated project costs in this
Amendment are estimates only and will be incurred
and spent over a number of years. In no event will the
City’s constitutional debt limit be exceeded. The City
Council will consider each project proposal on a case-
by-case basis to determine if it is in the City’s best
interest to participate before approving an urban
renewal project or expense. It is further expected that
such indebtedness, including interest on the same, may
be financed in whole or in part with tax increment
revenues from the Urban Renewal Area. Subject to the
foregoing, it is estimated that the cost of the Eligible
Urban Renewal Projects (Amendment No. 3) as
described above will be approximately:
$15,000,000 –
$20,000,000
This estimate does
not include financing
costs which may be
incurred over the life
of the Plan
REPEALER AND SEVERABILITY
Any parts of the Urban Renewal Plan in conflict with this Amendment No. 3, are hereby
repealed.
In the event one or more provisions contained in the Urban Renewal Plan or this Amendment
No. 3 shall be held for any reason to be invalid, illegal, unauthorized or unenforceable in any
respect, such invalidity, illegality, unauthorization or enforceability shall not affect any other
provision of the Plan or this Amendment No. 3, and the Plan and this Amendment No. 3 shall be
construed and implemented as if such provisions had never been contained herein.
EFFECTIVE PERIOD
This Amendment No. 3 will become effective upon its adoption by the City Council. The Urban
Renewal Plan, as amended, shall remain in effect until repealed by the City Council.
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During the life of the Plan, the City Council may designate by ordinance all or any portion of the
property covered by the Plan as a “tax increment area.” With respect to any property covered by
this Plan which is included in an ordinance which designates that property as a tax increment
area, the use of incremental property tax revenues, or the “division of revenue,” as those words
are used in Chapter 403 of the Code of Iowa, is limited to twenty (20) years from the calendar
year following the calendar year in which the City first certifies to the County Auditor the
amount of any loans, advances, indebtedness, or bonds which qualify for payment from the
incremental property tax revenue attributable to the portion of the Area within the ordinance. It
is anticipated that separate ordinances for separate tax increment areas may be adopted as
development in the Area warrants, in which case each separate tax increment area may have a
separate base and separate sunset. The division of revenues shall continue within any tax
increment area, for the maximum period allowed by law.