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HomeMy WebLinkAbout2023-06-05 Resolution 2023-233_Development Agreement, Kettlestone Central LC, Caliber Land Company LLCRESOLUTION NO. 2023-233 RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF WAUKEE, KETTLESTONE CENTRAL, L.C., AND CALIBER LAND COMPANY, LLC WHEREAS, by Resolution No. 2023-228, adopted June 5, 2023, 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 Kettlestone Residential Urban Renewal Plan (the "Plan" or "Urban Renewal Plan") for the Kettlestone Residential Urban Renewal Area (the "Area" or "Urban Renewal Area") described therein, which Plan 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 Kettlestone Central, L.C. (the "Kettlestone Developer") and Caliber Land Company, LLC (the "Caliber Developer") (collectively the "Developers"), in the form of a proposed Development Agreement (the "Agreement") by and between the City and the Developers, pursuant to which, among other things, the Developers would agree to prepare lots for multi -family residential development and to construct certain Minimum Improvements (as defined in the Agreement) including Housing Units and certain Infrastructure Improvements to serve the Housing Units including streets, sanitary sewer, and storm sewer, and all related site improvements, on certain real property located within the Urban Renewal Area collectively referred to as the "Development Property", but including distinct project areas referred to as the "Project 1 Property", "Project 2 Property", "Project 3 Property", and "Project 4 Property" as defined and legally described in the Agreement, all as outlined in the proposed Agreement; and WHEREAS, in consideration of the commitments of the Developers under the Agreement, the City would agree to provide Economic Development Grants to Kettlestone Developer, under the terms and conditions set forth in the Agreement, which Economic Development Grants are proposed to include: (a) Up to 10 consecutive annual payments consisting of 73.78% of the Project 1 Tax Increment generated by construction of the Project 1 Housing Units and collected pursuant to Iowa Code Section 403.19; (b) Up to 10 consecutive annual payments consisting of 73.78% of the Project 2 Tax Increment generated by construction of the Project 2 Housing Units and collected pursuant to Iowa Code Section 403.19-, (c) Up to 10 consecutive annual payments consisting of 73.78% of the Project 3 Tax Increment generated by construction of the Project 3 Housing Units and collected pursuant to Iowa Code Section 403.19; and (d) Up to 10 consecutive annual payments consisting of 73.78% of the Project 4 Tax Increment generated by construction of the Project 4 Housing Units and collected pursuant to Iowa Code Section 403.19; and WHEREAS, the Agreement provides that the cumulative total for all Economic Development Grants payments shall not exceed the lesser of (i) the amount of the Kettlestone Developer's "Aggregate Qualified Costs" related to construction of the Infrastructure Improvements, (ii) $9,720,000, or (iii) the amount accrued under the formula outlined in the proposed Agreement, under the terms and following satisfaction of the conditions set forth in the Agreement; 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 making of grants to Kettlestone Central, L.C. in connection with the development of the Development Property under the terms set forth in the 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 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 Sth day �� T••-•� ATTEST: lu�o-ft&w* CClerk RESULTS OF VOTE: AYE Anna Bergman Pierce X R. Charles Bottenberg X Chris Crone X Larry R. Lyon X Ben Sinclair NAY ABSENT ABSTAIN