HomeMy WebLinkAbout2023-06-05 Resolution 2023-234_Development Agreement, Kettlestone Central LC, Caliber Land Company LLC, Iowa Youth Athletic FoundationRESOLUTION NO. 2023-234
RESOLUTION APPROVING AND AUTHORIZING
EXECUTION OF A DEVELOPMENT AGREEMENT BY AND
AMONG THE CITY OF WAUKEE, CALIBER LAND
COMPANY, LLC, KETTLESTONE CENTRAL, L.C., AND
IOWA YOUTH ATHLETIC FOUNDATION
WHEREAS, by resolutions adopted June 5, 2023, this Council found and determined that
certain areas located within the City are eligible and should be designated as urban renewal areas
under Iowa law, and approved and adopted the following urban renewal areas, including the (1)
Kettlestone Phase I Commercial Urban Renewal Plan (the "Phase 1 Plan") for the Kettlestone
Phase 1 Commercial Urban Renewal Area (the "Phase 1 Urban Renewal Area") described therein;
(2) the Kettlestone Phase 2 Commercial Urban Renewal Plan (the "Phase 2 Plan") for the
Kettlestone Phase 2 Commercial Urban Renewal Area (the "Phase 2 Urban Renewal Area")
described therein; (3) the Kettlestone Phase 3 Commercial Urban Renewal Plan (the "Phase 3
Plan") for the Kettlestone Phase 3 Commercial Urban Renewal Area (the "Phase 3 Urban Renewal
Area") described therein; and (4) the Kettlestone Phase 4 Commercial Urban Renewal Plan (the
"Phase 4 Plan") for the Kettlestone Phase 4 Commercial Urban Renewal Area (the "Phase 4 Urban
Renewal Area") described therein; and
WHEREAS, it is desirable that properties within the respective urban renewal areas be
redeveloped as proposed in the Phase 1 Plan, Phase 2 Plan, Phase 3 Plan, and Phase 4 Plan
(collectively, the "Urban Renewal Plans"); and
WHEREAS, the City has received a proposal from Caliber Land Company, LLC
("Caliber"), Kettlestone Central, L.C. ("Kettlestone Central"), and Iowa Youth Athletic
Foundation ("IYAF"), in the form of a proposed Development Agreement (the "Agreement")
concerning the development of certain real property located within the Phase 1 Urban Renewal
Area, Phase 2 Urban Renewal Area, Phase 3 Urban Renewal Area, and Phase 4 Urban Renewal
Area; and
WHEREAS, pursuant to the Agreement, among other things, Caliber would agree to
construct certain "Phase 2 Commercial Improvements" and Kettlestone Central would agree to
construct certain "Phase 1 Commercial Improvements", "Phase 3 Commercial Improvements", and
"Phase 4 Commercial Improvements" and, further, IYAF would agree to construct certain "Arena
Improvements", all on distinct portions of the "Development Property" (as defined and legally
described in the Agreement); and
WHEREAS, the Agreement requires Caliber, Kettlestone Central, and IYAF to use
commercially reasonable efforts to attract commercial businesses employing individuals in their
operations to locate their business operations within the Phase 1 Commercial Improvements, Phase
2 Commercial Improvements, Phase 3 Commercial Improvements, and Phase 4 Commercial
Improvements; and
WHEREAS, the Agreement requires IYAF to operate the Arena Improvements, regularly
hold athletic competitions in the Arena Improvements, and grant the City access to use basketball
courts constructed as part of the Arena Improvements for a minimum number of hours at no cost
to the City, permitting the City to rent additional court time at a 50% discount; and
WHEREAS, in consideration of the commitments by Caliber, Kettlestone Central, and
IYAF under the Agreement, the City would agree to provide Economic Development Grants to
IYAF, under the terms and conditions set forth in the Agreement, which Economic Development
Grants are proposed to include:
(a) Up to 20 consecutive annual payments consisting of 85% of the Phase 1 Tax Increments
generated by construction of the Phase 1 Commercial Improvements and collected
pursuant to Iowa Code Section 403.19,
(b) Up to 20 consecutive annual payments consisting of 85% of the Phase 2 Tax Increments
generated by construction of the Phase 2 Commercial Improvements and collected
pursuant to Iowa Code Section 403.19;
(c) Up to 20 consecutive annual payments consisting of 85% of the Phase 3 Tax Increments
generated by construction of the Phase 3 Commercial Improvements and collected
pursuant to Iowa Code Section 403.19;
(d) Up to 20 consecutive annual payments consisting of 85% of the Phase 4 Tax Increments
generated by construction of the Phase 4 Commercial Improvements 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 to exceed the lesser of $39,487,500, or 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 the IYAF 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 5"' day of June, 2023.
1, :�F
Mayor Pro ern
ATTEST:ka't� /n
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City Clerk
RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN
Anna Bergman Pierce X
R. Charles Bottenberg X
Chris Crone X
Larry R. Lyon X
Ben Sinclair X