HomeMy WebLinkAbout2023-07-10 Resolution 2023-286_Development Agreement, AP North LCRESOLUTION NO. 2023-286
RESOLUTION APPROVING AND AUTHORIZING
EXECUTION OF A DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF WAUKEE AND AP NORTH, L.C.
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. 7 to the Plan approved by Resolution No. 2022-537 adopted on December 19, 2022, 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, and
WHEREAS, the City has received a proposal from AP North, L.C. (the "Developer"), in
the form of a proposed Development Agreement (the "Agreement") by and between the City and
the Developer, pursuant to which, among other things, the Developer would agree to develop
certain real property located within the Urban Renewal Area, including the "Development
Property" and "Pond Property", each defined and legally described in the Agreement (and together
constituting the "Project Property"), by constructing: (i) "Commercial Improvements," consisting
of commercial buildings to be used for office and retail development, on the Development
Property, and (ii) "Public Improvements," including a storm water detention pond, on the Pond
Property, which Public Improvements are expected to be dedicated to the City upon completion,
all as further described in the proposed Agreement, and;
WHEREAS, the Agreement further proposes that, under the terms and following
Developer's satisfaction of the conditions set forth in the Agreement, the City will make up to
twelve (12) annual payments of Economic Development Grants to Developer commencing on June
1, 2026 and ending upon the earliest of: (i) June 1, 2037, (ii) the maximum cumulative total of
Economic Development Grants having been paid to Developer, or (iii) the Agreement has
terminated pursuant to its terms; the maximum cumulative total of the Economic Development
Grants not to exceed the lesser of (i) the amount of the Developer's certified costs and expenses in
constructing the Public Improvements, or (ii) $2,000.000; and
WHEREAS, the Agreement provides that the Economic Development Grants will be
funded only through the "Tax Increment" generated by construction of the Commercial
Improvements and collected pursuant to Iowa Code Section 403.19; which Economic
Development Grants would be in the amount of 70% of the Tax Increment for the first six years
and in the amount of 80% of the Tax Increment for the subsequent six years, subject to the terms
and conditions of the Agreement; and
WHEREAS, the Agreement further requires the Developer to use commercially reasonable
efforts to obtain and retain tenants or purchasers for the Commercial Improvements who will
employ employees therein, 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 TIIEREFORE, 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 Developer in connection with the development
of the Project 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 100' day of July, 2023.
ATTEST:
�tj� � :�fi�
City Clerk
RESULTS OF VOTE:
AYE
Anna Bergman Pierce
X
R. Charles Bottenberg
X
Chris Crone
X
Larry R. Lyon
X
Ben Sinclair
X
J
6zr-��
Mayor
NAY ABSENT ABSTAIN