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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