HomeMy WebLinkAbout2019-05-20-I02 Kettleview Development AgreementAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: May 20, 2019
AGENDA ITEM:Consideration of approval of a resolution approving and authorizing execution
of a Development Agreement by and between the City of Waukee and
Kettleview, LLC
FORMAT:Resolution
SYNOPSIS INCLUDING PRO & CON:
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: Staff would recommend approval of the development
agreement.
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
II. Agreement for Private Development (included with public hearing
documentation)
PREPARED BY:Becky Schuett
REVIEWED BY:
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION:
DATE OF PUBLICATION:
I2
RESOLUTION 19-
RESOLUTION APPROVING AND AUTHORIZING
EXECUTION OF A DEVELOPMENT AGREEMENT BY AND
BETWEEN WAUKEE AND KETTLEVIEW, L.L.C.
WHEREAS, by Resolution No. 13-257, adopted October 21, 2013, and amended six
times, most recently by Amendment No. 6 adopted January 21, 2019, 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 Economic
Development Urban Renewal Plan (the "Urban Renewal Plan" or "Plan") for the Gateway
Economic Development 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 Kettleview, L.L.C. (the "Developer"),
in WHEREAS, the City has received a proposal from Kettleview, L.L.C. (the "Developer"), in
the form of a proposed Development Agreement (the "Agreement") by and between the City and
the Developer, pursuant to which, among other things, the Developer would agree to construct
certain Minimum Improvements (as defined in the Agreement) on certain real property located
within the Urban Renewal Area as defined and legally described in the Agreement and consisting
of the construction of six commercial buildings (Buildings A-F), one of which includes event
space, together with all related site improvements, including an internal roadway, storm sewer,
and a water feature in an adjacent City-owned pond, as outlined in the proposed Agreement; and
WHEREAS, the Agreement further proposes that the City will make up to five (5)
consecutive annual payments of Economic Development Grants to Developer consisting of 90%
of the Tax Increments pursuant to Iowa Code Section 403.19 and generated by the construction
of each Building, the cumulative total for all such payments not to exceed the lesser of
$5,300,000, or the amount accrued under the formulas outlined in the proposed Agreement,
under the terms and following satisfaction of the conditions set forth in the Agreement; and
WHEREAS, the Agreement also proposes that Developer, Lush Properties, LLC, and the
City will enter into a Minimum Assessment Agreement with the County setting the minimum
actual value of the Minimum Improvements for tax purposes at not less than $51,300,000; and
WHEREAS, the Agreement further proposes that the City will construct certain Public
Improvements in support of the Project, as defined in the Agreement; and
WHEREAS, Iowa Code Chapters 15A and 403 authorize cities to make grants and
provide public infrastructure in support of 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.
d. 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 was to hold a
public meeting and hearing upon the proposal to approve and authorize execution of the
Agreement at the Council meeting held on May 6, 2019; however, at the May 6, 2019 meeting,
the public hearing on the Agreement was postponed to this Council meeting (May 20, 2019); and
WHEREAS, the Council has held the public hearing on the Agreement at this meeting,
and the Council 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, 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 and providing public
improvements 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 20th day of May, 2019.
City
ATTEST:
City Clerk