HomeMy WebLinkAbout2019-11-04-I07 Kettleview Amended Development AgreementCITY 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 an Amended and Restated Agreement for Private Development 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:
AGENDA ITEM: I7
3
RESOLUTION NO. ______
RESOLUTION APPROVING AND AUTHORIZING
EXECUTION OF AN AMENDED AND RESTATED
AGREEMENT FOR PRIVATE DEVELOPMENT BY AND
BETWEEN THE CITY OF 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, the Area has been consolidated into the Waukee Consolidated Urban Renewal
Area by adoption by the City of Amendment No. 1 to the Waukee Consolidated Urban Renewal
Plan 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
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 of at least $53,900,000; 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 the construction of Public Improvements and the making of grants to
the Developer in connection with the development of the Development Property under the terms
set forth in the Amended and Restated 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 Amended and Restated 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