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HomeMy WebLinkAbout2019-10-21-J01S Kettleview LLC Dev Agr_Amended_Set PHAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: October 21, 2019 AGENDA ITEM:Consideration of approval of a resolution fixing date for a public hearing on the proposal to enter into an Amended and Restated Agreement for Private Development with Kettleview, L.L.C. FORMAT:Consent Agenda SYNOPSIS INCLUDING PRO & CON: Development Agreement between the City and Kettleview, LLC, was originally approved by the Waukee City Council May 20, 2019 (Resolution #19-176). An amended and restated agreement is proposed to amend the description of the Minimum Improvements, the completion dates, the Economic Development Grant schedules, and the Minimum Assessment Agreement. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve the resolution setting the date of public hearing. ATTACHMENTS: I. Proposed Resolution PREPARED BY:Becky Schuett REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: J1S RESOLUTION NO. ____________________ RESOLUTION FIXING DATE FOR A PUBLIC HEARING ON THE PROPOSAL TO ENTER INTO AN AMENDED AND RESTATED AGREEMENT FOR PRIVATE DEVELOPMENT WITH KETTLEVIEW, L.L.C., AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF 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, the Area is anticipated to be incorporated into the Waukee Consolidated Urban Renewal Area to be adopted on November 4, 2019; and WHEREAS, it is desirable that properties within the Area be redeveloped as part of the overall redevelopment area covered by said Plan, as amended; and WHEREAS, the City of Waukee, Iowa ("City") and Kettleview, L.L.C. ("Developer") entered into an Agreement for Private Development on May 20, 2019, authorized by the City pursuant to Resolution No. 19-176 ("Original Agreement"); and WHEREAS, pursuant to the Original Agreement, Developer was to cause certain Minimum Improvements to be constructed on certain real property located within the Urban Renewal Area and to use commercially reasonable efforts to obtain tenants or purchasers to employ employees in the Minimum Improvements; and WHEREAS, the City and Developer desire to make several changes to the Original Agreement, including changes to the description of the Minimum Improvements, the completion dates, the Economic Development Grant schedules, and the Minimum Assessment Agreement, and accordingly the City and Developer have proposed that the Original Agreement should be replaced in its entirety by a proposed Amended and Restated Agreement for Private Development (the "Agreement" or "Amended and Restated Agreement"); and WHEREAS the Amended and Restated Agreement proposes that, in exchange for Developer’s obligations under the Agreement, the City would construct certain Public Improvements and would provide Economic Development Grants to the Developer for five (5) distinct phases of development described in the 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; and WHEREAS, the Amended and Restated Minimum Assessment Agreement establishes an aggregate value for the completed Minimum Improvements at $53,900,000; and WHEREAS, Iowa Code Chapters 15A and 403 (the "Urban Renewal Law") authorize cities to make grants for economic development and construct public improvements 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 Chapter, 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 Amendment 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; and WHEREAS, neither the Urban Renewal Law nor any other Code provision sets forth any procedural action required to be taken before said economic development activities can occur under the proposed Amended and Restated Agreement, and pursuant to Section 364.6 of the City Code of Iowa, it is deemed sufficient if the action hereinafter described be taken and the City Clerk publish notice of the proposal and of the time and place of the meeting at which the Council proposes to take action thereon and to receive oral and/or written objections from any resident or property owner of said City to such action. NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF WAUKEE IN THE STATE OF IOWA: Section 1.That this Council meet in the Council Chambers, City Hall, 230 West Hickman Road, Waukee, Iowa, at 5:30 P.M. on November 4, 2019, for the purpose of taking action on the matter of the proposal to enter into an Amended and Restated Agreement for Private Development with Kettleview, L.L.C. Section 2.That the City Clerk is hereby directed to cause at least one publication to be made of a notice of said meeting, in a legal newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in said City, said publication to be not less than four (4) clear days nor more than twenty (20) days before the date of said public meeting. Section 3.The notice of the proposed action shall be in substantially the following form: (One publication required) NOTICE OF PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF WAUKEE IN THE STATE OF IOWA, ON THE MATTER OF THE PROPOSAL TO ENTER INTO AN AMENDED AND RESTATED AGREEMENT FOR PRIVATE DEVELOPMENT WITH KETTLEVIEW, L.L.C., AND THE HEARING THEREON PUBLIC NOTICE is hereby given that the Council of the City of Waukee in the State of Iowa, will hold a public hearing on November 4, 2019, at 5:30 P.M. in the Council Chambers, City Hall, 230 West Hickman Road, Waukee, Iowa, at which meeting the Council proposes to take action on the proposal to enter into an Amended and Restated Agreement for Private Development ("Amended and Restated Agreement") with Kettleview, L.L.C. (the "Developer"). On May 20, 2019, the City and Developer entered into a Development Agreement ("Original Agreement"), 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. The Amended and Restated Agreement would replace the Original Agreement and would make changes to terms relating 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 would construct certain Public Improvements and would 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 Amended and Restated Minimum Assessment Agreement establishes an aggregate value for the completed Minimum Improvements at $53,900,000. A copy of the Amended and Restated Agreement is on file for public inspection during regular business hours in the office of the City Clerk, City Hall, City of Waukee, Iowa. At the above meeting the Council shall receive oral or written objections from any resident or property owner of said City, to the proposal to enter into the Amended and Restated Agreement with the Developer. After all objections have been received and considered, the Council will at this meeting or at any adjournment thereof, take additional action on the proposal or will abandon the proposal to authorize said Amended and Restated Agreement. This notice is given by order of the City Council of the City of Waukee in the State of Iowa, as provided by Section 364.6 of the City Code of Iowa. Dated this 21st day of October, 2019. Rebecca D. Schuett City Clerk, City of Waukee in the State of Iowa (End of Notice) PASSED AND APPROVED this 21st day of October, 2019. Mayor ATTEST: City Clerk