HomeMy WebLinkAbout2017-10-16-J01W 117 Land Company Development Agreement_Set PH AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: October 16, 2017
AGENDA ITEM: Consideration of approval of a resolution fixing date for a public hearing on
the proposal to enter into a Development Agreement with 117 Land Company,
LLC and RJ Lawn Service, Inc.
FORMAT: Resolution
SYNOPSIS INCLUDING PRO & CON: City staff have been working with the developer of the
business park proposed south of Interstate 80 and west of R-22 (Ute Avenue)
The proposed development is consistent with a priority of the City Council to
create opportunities for business development. Staff has prepared a
development agreement which would incentivize the developer to sell and
develop the individual lots by creating a rebate for a portion of the costs
associated with the public improvements to serve the development. Also as a
part of the development agreement, there would be an incentive to RJ Lawn
and Landscape who proposes to construct a facility within the planned
business park.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: Staff would recommend setting a public hearing date to
further discuss the proposed development agreement.
RECOMMENDATION: Approve the resolution
ATTACHMENTS: I. Proposed Resolution
II.
PREPARED BY: Brad Deets, Development Services Director
REVIEWED BY:
RESOLUTION NO. ____________________
RESOLUTION FIXING DATE FOR A PUBLIC HEARING ON
THE PROPOSAL TO ENTER INTO A DEVELOPMENT
AGREEMENT WITH 117 LAND COMPANY, LLC AND RJ
LAWN SERVICE, INC., AND PROVIDING FOR
PUBLICATION OF NOTICE THEREOF
WHEREAS, by Resolution No. ___________, adopted October 16, 2017, 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 Southwest
Business Park Urban Renewal Plan (the "Plan") for the Southwest Business Park 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 117 Land Company, LLC (the
"Developer") and RJ Lawn Services, Inc. (the "Employer"), in the form of a proposed
Development Agreement (the "Agreement") by and among the City, Developer, and Employer
pursuant to which Developer and Employer will develop certain property in the Area as defined
in the Agreement (the "Development Property"); and
WHEREAS, the Developer will transfer to McCarthy Brothers, LLC a portion of the
Development Property (as defined in the Agreement), which property will then be leased by
McCarthy Brothers, LLC to Employer (the "Employer Parcel"); and
WHEREAS, the Employer will construct certain Minimum Improvements on the
Employer Parcel as defined and legally described in the Agreement; and consisting of the
construction of a 4,960 square foot first floor office with a 4,300 square foot storage basement,
along with a 10,560 square foot separate warehouse building, together with all related site
improvements, as outlined in the proposed Development Agreement; and
WHEREAS, the Agreement contemplates the Developer will construct Public
Improvements described therein on the Development Property to prepare the Development
Property for further development; and
WHEREAS, the Agreement further proposes that the City will make up to two (2)
consecutive annual payments of Economic Development Grants to Employer consisting of 100%
of the Tax Increments derived from the Employer Parcel pursuant to Iowa Code Section 403.19,
as well as up to eight (8) consecutive annual payments of Economic Development Grants to
Developer consisting of 100% of the Tax Increments derived from the Employer Parcel, all such
Grants generated by the construction of the Minimum Improvements, under the terms and
following satisfaction of the conditions set forth in the Agreement; and
WHEREAS, the Agreement also proposes that the City will make up to five (5)
consecutive annual payments of Economic Development Grants to Developer consisting of
100% of the Tax Increments pursuant to Iowa Code Section 403.19, derived from those other
parcels of the Development Property that are developed, the cumulative total for all payments to
Developer not to exceed the lesser of $1,150,000, or the aggregate amount of the costs of the
Public Improvements, under the terms and following satisfaction of the conditions set forth in the
Agreement; and
WHEREAS, one of the obligations of the Employer relates to employment retention
and/or creation; and
WHEREAS, Iowa Code Chapters 15A and 403 (the "Urban Renewal Law") 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 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 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; 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 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 6, 2017, for the purpose of taking
action on the matter of the proposal to enter into a Development Agreement with 117 Land
Company, LLC and RJ Lawn Service, Inc.
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 A
DEVELOPMENT AGREEMENT WITH 117 LAND COMPANY,
LLC AND RJ LAWN SERVICE, INC., 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 6, 2017, 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 a Development Agreement (the "Agreement") with 117
Land Company, LLC (the "Developer") and RJ Lawn Service, Inc. (the "Employer").
The Agreement would obligate the Employer to construct certain Minimum
Improvements (as defined in the Agreement) on the Employer Parcel as defined and legally
described in the Agreement; and consisting of the construction of a 4,960 square foot first floor
office with a 4,300 square foot storage basement, along with a 10,560 square foot separate
warehouse building, together with all related site improvements, as outlined in the proposed
Development Agreement.
The Agreement would obligate the Developer to construct Public Improvements
described therein on the Development Property to prepare the Development Property for further
development.
The Agreement would further obligate the City to make up to two (2) consecutive annual
payments of Economic Development Grants to Employer consisting of 100% of the Tax
Increments derived from the Employer Parcel pursuant to Iowa Code Section 403.19, as well as
up to eight (8) consecutive annual payments of Economic Development Grants to Developer
consisting of 100% of the Tax Increments derived from the Employer Parcel, all such Grants
generated by the construction of the Minimum Improvements, under the terms and following
satisfaction of the conditions set forth in the Agreement.
The Agreement also proposes that the City will make up to five (5) consecutive annual
payments of Economic Development Grants to Developer consisting of 100% of the Tax
Increments pursuant to Iowa Code Section 403.19, derived from those other parcels of the
Development Property that are developed, the cumulative total for all payments to Developer not
to exceed the lesser of $1,150,000, or the aggregate amount of the costs of the Public
Improvements, under the terms and following satisfaction of the conditions set forth in the
Agreement.
A copy of the 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 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 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 16th day of October, 2017.
Rebecca D. Schuett
City Clerk, City of Waukee in the State of Iowa
(End of Notice)
PASSED AND APPROVED this 16th day of October, 2017.
Mayor
ATTEST:
City Clerk