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HomeMy WebLinkAbout2019-11-04-I06 Midtown Waukee Holdings Development AgreementAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: November 4, 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 Midtown Waukee Holdings, 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: I6 RESOLUTION NO. ______ RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF WAUKEE AND MIDTOWN WAUKEE HOLDINGS, LLC WHEREAS, by Resolution No. 13-257, adopted October 21, 2013, 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 "Gateway Urban Renewal Plan") for the Gateway Economic Development Urban Renewal Area (the "Urban Renewal Area" or "Area") described therein, which Gateway Urban Renewal Plan has subsequently been amended six times and is on file in the office of the Recorder of Dallas County; and WHEREAS, the Urban Renewal Area has been unified with other urban renewal areas in the City by an Amendment No. 1 to the Waukee Consolidated Urban Renewal Plan (the “Consolidated Plan” or “Plan”), adopted November 4, 2019, which renames the unified urban renewal areas as the Waukee Consolidated Urban Renewal Area (the “Consolidated Area”); and WHEREAS, it is desirable that properties within the Consolidated Area be redeveloped as part of the overall redevelopment area covered by Plan; and WHEREAS, the City has received a proposal from Midtown Waukee Holdings, LLC (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) consisting of the construction of six commercial buildings comprising an approximately 255,000 square feet entertainment district, together with all related site improvements, on certain real property located within the Consolidated Area as defined and legally described in the Agreement (the "Development Property"), as outlined in the proposed Agreement; and WHEREAS, the Agreement also proposes that Developer 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 $80,000,000; and WHEREAS, the Minimum Improvements are being constructed with the intent that the buildings will be occupied by commercial enterprises that will create and/or retain jobs and employees in their operations on the Development Property; and WHEREAS, the Agreement further proposes that, in exchange for Developer’s obligations under the Agreement, the City will make up to twelve (12) consecutive annual payments of Economic Development Grants to Developer for each building constructed as part of the Minimum Improvements, consisting of 80% of the Tax Increments generated by the construction of the particular building and collected pursuant to Iowa Code Section 403.19, provided however that the cumulative total for all such Economic Development Grant payments is not to exceed the lesser of $19,700,000, 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, Chapters 15A and 403, Code of Iowa, authorize cities to make grants for 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, Code of Iowa, taking into account any or all of the factors set forth in Chapter 15A, Code of Iowa, 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 has held a public meeting and hearing upon the proposal to approve and authorize execution of the Agreement and 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 IN THE STATE OF 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 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, Code of Iowa, 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 4th day of November, 2019. Mayor ATTEST: City Clerk