HomeMy WebLinkAbout2022-01-03-Resolution 2022-001_Development Agreement Second Amended and Restated, The Quarter at Waukee LLC, Waukee Prairie Apartments LLCRESOLUTION NO. 2022-001
RESOLUTION APPROVING AND AUTHORIZING
EXECUTION OF A SECOND AMENDED AND RESTATED
AGREEMENT FOR PRIVATE DEVELOPMENT BY AND
AMONG THE CITY OF WAUKEE, THE QUARTER AT
WAUKEE, L.L.C., AND WAUKEE PRAIRIE APARTMENTS,
LLC
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, 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 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 Amendment and the City's performance
under the Second Amended and Restated Agreement 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.
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 Second Amended
and Restated Agreement and has considered the extent of objections received from residents or
property owners as to said proposed Second Amended and Restated 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 Second Amended
and Restated Agreement, including but not limited to the making of grants to the Developer in
connection with the development of the Development Property under the terms set forth in the
Second 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
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, Code of Iowa, taking into account the factors set forth therein.
Section 2. That the form and content of the Second 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 Second Amended and
Restated 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 Second
Amended and Restated 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 Second Amended and Restated
Agreement as executed.
PASSED AND APPROVED this 3`d day of January, 2022.
ATTEST:
City Clerk
RESULTS OF VOTE:
AYE
Anna Bergman Pierce
X
R. Charles Bottenberg
X
Chris Crone
X
Larry R. Lyon
X
Ben Sinclair
X
Mayor
NAY ABSENT ABSTAIN