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HomeMy WebLinkAbout2019-01-21-J01G PIF Agreement Amendment 1AGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: January 21, 2019 AGENDA ITEM:Consideration of approval of a resolution approving Public Improvement Fund (PIF) Agreement Amendment No. 1 FORMAT:Consent Agenda SYNOPSIS INCLUDING PRO & CON: The original Public Improvement Fund (PIF) agreement between the City of Waukee and Apple Inc. was structured that payments to the fund would be made as Apple pulled building permits for data center buildings. The payments would be made to the PIF in the January after the building permits were issued for data center buildings. For example if a building permit for a data center building was issued in 2019 a payment to the PIF would be made in January 2020. Over the last several months, we have been working with Apple to amend the PIF agreement so that the first PIF payment of $500,000 would be made in the January following the issuance of grading approval for all or part of the development property. The grading approval was granted in late 2018 so Apple has agreed to make the first PIF payment of $500,000 in January 2019. It is anticipated that Apple will be issued a building permit for a data center building in 2019 that would trigger another PIF payment in January 2020 and each January thereafter until the maximum PIF payments per data center building reaches $10,000,000. The $500,000 payment being made in January 2019 would count against the maximum of $10,000,000 for the first data center building. If for some reason no data center building permits are issued in 2019 then no additional PIF payments would be made until should time as a building permit is issued and the PIF payments would follow the schedule in the PIF agreement. Other than this one change, the PIF agreement will remain unchanged. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve the resolution. ATTACHMENTS: I. Proposed Resolution II. Amended Public Improvement Agreement and Fund PREPARED BY:Dan Dutcher J1G REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: THE CITY OF WAUKEE, IOWA RESOLUTION 19- APPROVING PUBLIC IMPROVEMENT FUND (PIF) AGREEMENT AMENDMENT NO. 1 [PROJECT MORGAN] 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, on August 24, 2017, the Waukee City Council approved a Public Improvement Agreement and Fund (“PIF Agreement”) by and between the City of Waukee and the developer of Project Morgan (Resolution #17-411); 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, Amendment No. 1 to the PIF Agreement is proposed so that the first payment of $500,000 will be made January 2019 following the issuance of grading approval for all or part of the development property; AND, WHEREAS, the City Attorney and Developer have reviewed the agreement amendment and agree to its terms. NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council that it hereby approves the Public Improvement Fund Agreement Amendment No. 1 [Project Morgan]. Passed by the City Council of the City of Waukee, Iowa, and approved the 21st day of January, 2019. ____________________________ William F. Peard, Mayor Attest: ___________________________________ Rebecca D. Schuett, City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN Anna Bergman R. Charles Bottenberg Courtney Clarke Shelly Hughes Larry R. Lyon