Loading...
HomeMy WebLinkAbout2021-12-20-I02B The Quarter at Waukee Development Agr Second Amendment_Set PH AGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: December 20, 2021 AGENDA ITEM: Consideration of approval of a resolution fixing date for a public hearing on the proposal to enter into a Second Amended and Restated Agreement for Private Development with The Quarter at Waukee, LLC, and Waukee Prairie Apartments, LLC FORMAT: Consent Agenda SYNOPSIS INCLUDING PRO & CON: The City entered into a development agreement with Midtown Waukee Holdings, LLC in November 2019 related to a development project proposed to be constructed at the intersection of Grand Prairie Parkway and SE Ashworth Road followed by an amendment in August 2020 which included an assignment of the agreement to The Quarter at Waukee, LLC and Waukee Prairie Apartments, LLC. Additional changes are necessary to the development agreement and staff is recommending a public hearing be set for January 3, 2022 to further discuss the proposed changes. 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: Brad Deets, Development Services Director REVIEWED BY: I2B RESOLUTION NO. ____________________ RESOLUTION FIXING DATE FOR A PUBLIC HEARING ON THE PROPOSAL TO ENTER INTO A SECOND AMENDED AND RESTATED AGREEMENT FOR PRIVATE DEVELOPMENT WITH THE QUARTER AT WAUKEE, L.L.C. AND WAUKEE PRAIRIE APARTMENTS, LLC, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF WHEREAS, by Resolution No. 19-402, adopted November 4, 2019, the City approved and adopted Amendment No. 1 to the Waukee Consolidated Urban Renewal Plan (the "Plan" or "Urban Renewal Plan"), which unified the existing Gateway Economic Development Urban Renewal Area, Waukee West Urban Renewal Area, and Waukee Central Urban Renewal Area into the Waukee Consolidated Urban Renewal Area (the "Area" or "Urban Renewal Area") described therein, which Plan has been subsequently amended several times, most recently by Amendment No. 5 to the Plan approved by Resolution No. 2021-476 adopted on November 15, 2021, and 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, as amended; and WHEREAS, the City of Waukee, Iowa (the "City") and Midtown Waukee Holdings, LLC (the "Original Developer") entered into an Agreement for Private Development on November 4, 2019 (the "Original Agreement"), pursuant to which the Original Developer was to cause certain Minimum Improvements to be constructed in connection with the redevelopment of certain real property located within the Urban Renewal Area (the "Development Property"); and WHEREAS, the Original Agreement included a Minimum Assessment Agreement between the City and Original Developer also dated November 4, 2019; and WHEREAS, the Development Property was subsequently transferred to The Quarter at Waukee, L.L.C. (the "Developer"), and the City, Developer, and Waukee Prairie Apartments, LLC subsequently entered into an Amended and Restated Agreement for Private Development (the "First Amended and Restated Agreement") along with a revised Minimum Assessment Agreement (the "First Amended and Restated MAA"), both dated August 3, 2020; and WHEREAS, the City and Developer desire to amend and restate the terms of the First Amended and Restated Agreement and replace the First Amended MAA, by a proposed Second Amended and Restated Agreement for Private Development (the "Second Amended and Restated Agreement") and proposed new Minimum Assessment Agreement, to (i) remove Waukee Prairie Apartments, LLC as a party, (ii) change the description of the Development Property and Minimum Improvements, (iii) change the terms for construction and operation of the Minimum Improvements on the Development Property, and (iv) change the minimum assessed values and maximum rebate amounts on the various commercial buildings and the surface parking lot to be constructed as the Minimum Improvements; and WHEREAS, pursuant to the terms and conditions of the Second Amended and Restated Agreement, the City would make payments of Economic Development Grants to Developer, with the amounts of the payments to be calculated based on the Tax Increment generated by the various buildings and parking lot included in the Minimum Improvements and collected by the City under Iowa Code Section 403.19, under the formulas and schedules for the various buildings set forth in the Second Amended and Restated Agreement and subject to the terms and conditions of the Second Amended and Restated Agreement, with the cumulative maximum amount of all Economic Development Grants under the Second Amended and Restated Agreement not to exceed $34,002,834; 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 Second Amended and Restated 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 Second Amended and Restated 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 proposed Second 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 January 3, 2022, for the purpose of taking action on the matter of the proposal to enter into a Second Amended and Restated Agreement for Private Development with The Quarter at Waukee, L.L.C. and Waukee Prairie Apartments, LLC. 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 SECOND AMENDED AND RESTATED AGREEMENT FOR PRIVATE DEVELOPMENT WITH THE QUARTER AT WAUKEE, L.L.C. AND WAUKEE PRAIRIE APARTMENTS, LLC, 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 January 3, 2022, 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 Second Amended and Restated Agreement for Private Development ("Second Amended and Restated Agreement") with The Quarter at Waukee, L.L.C. (the "Developer") and Waukee Prairie Apartments, LLC ("Additional Property Owner"). The City, Developer, and Additional Property Owner previously entered into an Amended and Restated Agreement for Private Development dated August 3, 2020 (the “First Amended and Restated Agreement”) for the development of certain Minimum Improvements on certain real property within the Waukee Consolidated Urban Renewal Area (the "Development Property"). The First Amended and Restated Agreement replaced an Agreement for Private Development dated November 4, 2019 by and between the City and Midtown Waukee Holdings, LLC. The proposed Second Amended and Restated Agreement would amend and restate the terms of the First Amended and Restated Agreement, modifying the terms for the project to (i) remove the Additional Property Owner as a party, (ii) change the description of the Development Property and Minimum Improvements, (iii) change the terms for construction and operation of the Minimum Improvements on the Development Property, and (iv) change the minimum assessed values and maximum rebate amounts for the various commercial buildings and the surface parking lot to be constructed as the Minimum Improvements. The Second Amended and Restated Agreement would obligate the City to make payments of Economic Development Grants to Developer, with the amounts of the payments to be calculated based on the Tax Increment generated by the various buildings and parking lot included in the Minimum Improvements and collected by the City under Iowa Code Section 403.19, under the formulas and schedules for the various buildings set forth in the Second Amended and Restated Agreement and subject to the terms and conditions of the Second Amended and Restated Agreement, with the cumulative maximum amount of all Economic Development Grants under the Agreement not to exceed $34,002,834. A copy of the Second 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 Second 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 Second 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 20th day of December, 2021. Rebecca D. Schuett City Clerk, City of Waukee in the State of Iowa (End of Notice) PASSED AND APPROVED this 20th day of December, 2021. Mayor ATTEST: City Clerk