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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