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HomeMy WebLinkAboutSenad Dizdarevic-2/3/2014Mayor BUCK CLARK COUNCIL MEMBERS DAVID JONES Ward 1 CAROLYN COLE Ward 2 HAROLD GETTY Ward 3 QUENTIN HART Ward 4 RON WELPER Ward 5 BOB GREENWOOD At -Large STEVE SCHMITT At -Large CITY OF WATERL IOWA COMMUNITY PLANNING AND DEVELOPMENT 715 Mulberry Street • Waterloo, Iowa 50703-5783 • (319) 291-4366 Fax (319) 291-4262 . NOEL C. ANDERSON, Community Planning & Development Director CITY OF WATERLOO Council Communication City Council Meeting: February 3, 2014 Prepared: January 28, 2014 Dept. Head Signature: Noel Anderson, Community Planning & Development Director # of Attachments: 1 SUBJECT: Resolution approving Development Agreement with Senad Dizdarevic for the construction of a 6,000 sq. ft. industrial building on Marnie Avenue, adding $328,000 of taxable value to the site, and offering property tax rebates of 6 years at 80% and 3 years at 70%, and authorize Mayor to sign and fully execute the document. Submitted by: Noel Anderson, Community Planning and Development Director Recommended City Council Action: Approval of resolution as noted above Summary Statement: As you may recall, the City of Waterloo has worked with various companies in the past to develop land along Highway 63 to the south, in the Ridgeway Avenue area. The private development of Marnie Avenue has helped to spawn several business developments: Wilbert Burial Vault, Rainsoft, Riley's Floors and More, the post office substation, Failor Hurley Construction, and Country Estates Fencing. The City of Waterloo works to offer "free land" to compete with other communities for businesses in this area. As the City did not fund any of the improvements to this area, the City offers tax rebates equal to the purchase price of the land to offer this free land setup. Dizdarevic Construction is a growing business in the Waterloo community, and this site will offer them easy access to all areas of the community. They are building a 6,000 sq. ft. building with office and warehouse space on the site. It is a great addition to this growing area of the community. This new building would be the seventh project along Marnie Avenue, and will bring forth new industrial development and jobs to the area. Expenditure Required: Rebates Source of Funds: Martin TIF cash Policy Issue: Economic Development Alternative: NA CITY WEBSITE: www.ci.waterloo.ia.us WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Background Information: The public-private partnerships that the City of Waterloo has utilized in its TIF Districts have allowed private development of land to compete with land publicly developed in and out of Waterloo. This helps to expand the amount of available land, Tots, roads, and other infrastructure for development purposes. The project at hand will receive rebates to help them choose this location, but will still pay over $2,600 in taxes their first year, and over $27,000 in taxes over the lifespan of the rebate period of 9 years. Please return this copy to: City Clerk & Finance Department 715 Mulberry Street Waterloo, IA 50703 Preparer Information: Noel Anderson 715 Mulberry Street Waterloo, IA 50703 319.291.4366 Individual's Name Street Address City Phone DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of '-� 3 , 2014, by and between Senad Dizdarevic ("Company"), and the City of Waterloo, Iowa ("City"). RECITALS A. City considers economic development within the City a benefit to the community and is willing for the overall good and welfare of the community to provide financial incentives so as to encourage that goal. B. Company is willing and able to finance and construct a building and related improvements (the "Improvements") on property located in the Martin Road Area urban renewal area. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Purchase of Property. Company has purchased the real property described on Exhibit "A" attached hereto (the "Property"), located as a part of Lot 16 in Kingswood Second Addition on Marnie Avenue. 2. Improvements by Company. Company shall construct a new 6,000 sq. ft. industrial building, and related parking and landscaping (the "Improvements"), all of which shall be located on the Property. The Improvements shall be constructed in accordance with all applicable City, state, and federal building codes and shall comply with all applicable City ordinances and other applicable law. It is contemplated that the Improvements will have a total project cost of approximately $268,000.00. The Property, the Improvements, and all site preparation and development -related work to make the Property usable for Company's purposes as contemplated by this Agreement are collectively referred to as the "Project". 3. Timeliness of Construction. The parties agree that Developer's commitment to undertake the Project and to construct the Improvements in a timely manner constitutes a material inducement for the City to enter this Agreement, and that without said commitment City would not have done so. Developer must substantially complete construction of the Improvements by December 31, 2014. If construction has commenced within 4 months of the approval of this Agreement, and is stopped and/or delayed as a result of an act of God, war, civil disturbance, court order, labor dispute, fire, or other cause beyond the reasonable control of Developer, the requirement that construction is to be substantially completed by December 31, 2014 shall be tolled for a period of time equal to the period of such stoppage or delay, and thereafter if construction is not completed within the allowed period of extension this Agreement shall be cancelled at the sole option of City. If construction is not substantially completed by December 31, 2014, then the parties agree to execute an amendment to this Agreement and to the Minimum Assessment Agreement to extend the date specified in Section 4 below and the dates specified in corresponding provisions of the Minimum Assessment Agreement. 4. Minimum Assessment Agreement. Company acknowledges and agrees that it will pay when due all taxes and assessments, general or special, and all other lawful charges whatsoever levied upon or assessed or placed against the Property. Company further agrees that, prior to the date set forth in Section 2 of Exhibit "B," it will not seek or cause a reduction in the taxable valuation for the Property, which shall be fixed for assessment purposes, below the amount of $328,000.00 ("Minimum Taxable Value"), through: (i) willful destruction of the Property, Improvements, or any part of either; (ii) a request to the assessor of Black Hawk County; or (iii) any proceedings, whether administrative, legal, or equitable, with any administrative body or court within the City, Black Hawk County, the State of Iowa, or the federal government. Company agrees to sign and deliver to City the agreement attached as Exhibit "B" concurrently with execution and delivery of this Agreement. 5. Property Tax Rebates. Provided that Developer has completed the Improvements as set forth in Sections 1 and 2 and has executed the Minimum Assessment Agreement as set forth in Section 4, the City agrees to rebate property taxes (with the exceptions noted below) as follows: a. Year One - 80% rebate b. Year Two - 80% rebate c. Year Three - 80% rebate d. Year Four - 80% rebate e. Year Five - 80% rebate f. Year Six - 80% rebate g. Year Seven 70% rebate h. Year Eight 70% rebate i. Year Nine 70% rebate for any taxable value over the January 1, 2013 taxable value of $1,630.00. Rebates are payable in respect of a given year only to the extent that Developer has actually paid general property taxes due and owing for such year. Rebates are to be paid to Developer within 30 days of any tax payment made by Developer. The taxable value of the Property as a result of the Improvements must be increased by a minimum of 10% and must increase the annual tax by a minimum of $500.00. This rebate program is not applicable to any special assessment levy, debt service levy, or any other levy that is exempted from treatment as tax increment financing under the provisions of applicable law. The first year in which a rebate may be given ("Year One") shall be the first full year for which the assessment is based upon the completed value of the Improvements and not a prior year for which the assessment is based solely upon the value of the land or upon the value of the land and a partial value of the Improvements, due to partial completion of the Improvements or a partial tax year. 6. Representations and Warranties of City. City hereby represents and warrants as follows: A. City is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. S. Each person who executes and delivers this Agreement and all documents to be delivered hereunder is and shall be authorized to do so on behalf of City. 7. Representations and Warranties of Company. Company hereby represents and warrants as follows: A. Company is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Company is duly organized, validly existing, and in good standing under the laws of the state of its organization and is duly qualified and in good standing under the laws of the State of Iowa. C. Company has full right, title, and authority to execute and perform this Agreement and to consummate all of the transactions contemplated herein, and each person who executes and delivers this Agreement and all documents to be delivered to City hereunder is and shall be authorized to do so on behalf of Company. 8. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person, by overnight air courier service, by United States registered or certified mail, postage prepaid, or by facsimile (with an additional copy delivered by one of the foregoing means), and addressed: (a) if to City, at 715 Mulberry Street, Waterloo, Iowa 50703, facsimile number 319-291-4571, Attention: Mayor, with copies to the City Attorney and the Community Planning and Development Director. (b) if to Company, to Senad Dizdarevic, 151 Belleview, Waterloo, Iowa 50701, facsimile number Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) one (1) business day following deposit for overnight delivery to an overnight air courier service which guarantees next day delivery, (iii) three (3) business days following the date of deposit if mailed by United States registered or certified mail, postage prepaid, or (iv) when transmitted by facsimile so long as the sender obtains written electronic confirmation from the sending facsimile machine that such transmission was successful. 9. Amendment, Modification, and Waiver. No amendment, modification, or waiver of any condition, provision, or term of this Agreement shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or by the duly authorized representative of same, and specifying with particularity the extent and nature of the amendment, modification, or waiver. Any waiver by any party of any default by another party shall not affect or impair any rights arising from any subsequent default. 10. Severability. Each provision, section, sentence, clause, phrase, and word of this Agreement is intended to be severable. If any portion of this Agreement shall be deemed invalid or unenforceable, whether in whole or in part, the offending provision or part thereof shall be deemed severed from this Agreement and the remaining provisions of this Agreement shall not be affected thereby and shall continue in full force and effect. If, for any reason, a court finds that any portion of this Agreement is invalid or unenforceable as written, but that by limiting such provision or portion thereof it would become valid and enforceable, then such provision or portion thereof shall be deemed to be written, and shall be construed and enforced, as so limited. 11. Captions. All captions, headings, or titles in the paragraphs or sections of this Agreement are inserted only as a matter of convenience and/or reference, and they shall in no way be construed as limiting, extending, or describing either the scope or intent of this Agreement or of any provisions hereof. 12. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, legal representatives, and future owners of the Property. 13. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. 14. Entire Agreement. This Agreement, together with the Minimum Assessment Agreement attached hereto as Exhibit "B", constitutes the entire agreement of the parties and supersedes all prior or contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. 15. Time of Essence. Time is of the essence of this Agreement. IN WITNESS WHEREOF, the parties have executed this Development Agreement by their duly authorized representatives as of the date first set forth above. CITY OF W ERLOO, IOWA : BY ✓/���� Ernest G. Clark 70r Attest:-�-� Suzy Scha es, City Clerk Senad Dizdarevic B EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY: 3135 MARNLE AVENUE KINGSWOOD SECOND ADDITION WATERLOO LOT 16 EXCEPT THE SOUTH 250 FEET THEREOF AKA PARCEL F IN SURVEY 2013 23688, ALL IN THE CITY OF WATERLOO, IOWA. EXHIBIT "B" MINIMUM ASSESSMENT AGREEMENT This Minimum Assessment Agreement (the "Agreement") is entered into as of , 2014, by and among the CITY OF WATERLOO, IOWA ("City"), Senad Dizd revic ("Company"), and the COUNTY ASSESSOR of the City of Waterloo, Iowa ("Assessor"). WITNESSETH: WHEREAS, on or before the date hereof the City and Company have entered into a development agreement (the "Development Agreement") regarding certain real property, described in Exhibit "A" thereto, located in the City; and WHEREAS, it is contemplated that pursuant to the Development Agreement, the Company will undertake the development of an area ("Project") within the City and within the Logan Avenue urban renewal area; and WHEREAS, pursuant to Iowa Code § 403.6, as amended, the City and the Company desire to establish a minimum actual value for the land and the building(s) pursuant to this Agreement and applicable only to the Project, which shall be effective upon substantial completion of the Project and from then until this Agreement is terminated pursuant to the terms herein and which is intended to reflect the minimum actual value of the land and buildings as to the Project only; and WHEREAS, the City and the Assessor have reviewed the preliminary plans and specifications for the improvements (the "Improvements") which the parties contemplate will be erected as a part of the Project. NOW, THEREFORE, the parties hereto, in consideration of the promises, covenants, and agreements made by each other, do hereby agree as follows: 1. Upon substantial completion of construction of the Improvements by the Company, the minimum taxable value which shall be fixed for assessment purposes for the land and Improvements to be constructed thereon by the Company as a part of the Project shall not be Tess than $328,000.00 ("Minimum Actual Value") until termination of this Agreement. The parties hereto agree that construction of the Improvements will be substantially completed on or before December 31, 2014. If it is not, then the parties agree to execute an amendment to this Agreement that will extend the dates specified in Section 2 below. 1 2. The Minimum Taxable Value herein established shall be of no further force and effect, and this Minimum Assessment Agreement shall terminate, on December 31, 2029. Nothing herein shall be deemed to waive the Company's rights under Iowa Code § 403.6, as amended, to contest that portion of any taxable value assignment made by the Assessor in excess of the Minimum Taxable Value established herein. In no event, however, shall the Company seek or cause the reduction of the taxable value assigned below the Minimum Taxable Value established herein during the term of this Agreement. The City shall not unreasonably withhold its consent to permit the Company to contest its taxable valuations in full, commencing with the assessment of January 1, 2030. 3. This Agreement shall be promptly recorded by the City with the Recorder of Black Hawk County, Iowa. The City shall pay all costs of recording. 4. Neither the preambles nor provisions of this Agreement are intended to, or shall be construed as, modifying the terms of the Development Agreement. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties, including but not limited to future owners of the Project property. IN WITNESS WHEREOF, the parties have executed this Minimum Assessment Agreement by their duly authorized representatives as of the date first set forth above CITY OF WATERLOO, IOWA By: rnest G. Clark, Mayor Attest: ch res, City Clerk 2 Senad Dizdarevic By: STATE OF IOWA ss. COUNTY OF BLACK HAWK ) On this day of , 2014, before me, a Notary Public in and for the State of Iowa, personally appthred Ernest G. Clark and Suzy Schares, to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Waterloo, Iowa, a municipal corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said municipal corporation, and that said instrument was signed and sealed on behalf of said municipal corporation by authority and resolution of its City Council, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said municipal corporation by it and by them voluntarily executed. DeAnne Kobliska COMMISSION NO. 763995 MY COMMISSION EXPIRES J div Notary Public STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) Acknowledged before me on , 2014 by Senad Dizdarevic. (tW c M Oz5kif Notary Public 3 CERTIFICATION OF ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed for the development, and being of the opinion that the minimum market value contained in the foregoing Minimum Assessment Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the property subject to the development, upon completion of improvements to be made on it and in accordance with the Minimum Assessment Agreement, certifies that the taxable value assigned to such land, building and equipment upon completion of the development shall not be Tess than Three Hundred Twenty Eight Thousand Dollars ($328,000.00) in the aggregate, until termination of this Minimum Assessment Agreement pursuant to the terms hereof. Date STATE OF IOWA ) ss. COUNTY OF BLACK HAWK ) so or Black Hawk County, Iowa -r.r koemITseid Subscribed and sworn to before me on 02. — 02/ , 2014 by Tari fid, Assessor for Black Hawk County, Iowa. Notary Public DEBORAH L. ®OECI(MANN riN COMMISSION NO. 195788 MY cOMMIPION EXPIRES Black Hawk County Detailed Parcel Report Page 1 of 1 BLACK HAWK COUNTY REAL ESTATE ASSESSMENT AND TAX INFORMATION Parcel ID Deed Holder Tax Mail to Address 8813-05-101-111 DIZDAREVIC,SENAD DIZDAREVIC,SENAD 151 BELLEVIEW RD WATERLOO, IA 50701-0000 PDF No. Map Area Contract Buyer SPLIT OR DIVISION -12 / Deed 13 W WATERLOO -C Acres x Rate Property Address Current Recorded Transfer Date Drawn Date Filed Recorded Document Type 6/3/2013 6/7/2013 2013 025463 D SALES BUILDING PERMIT Date Amount NUTC / Type Date,Number 11/7/013 IWA 05816 Amount 200,000 Reason New Bldg 16 /3/2013 60,000 SPLIT OR DIVISION -12 / Deed LEGAL KINGSWOOD SECOND ADDITION WATERLOO LOT 16 EXC THE S 250 FT THEREOF AKA PARCEL F IN SURVEY 2013 23688 LAND Basis Front Rear Side 1 Side 2 Lot Area Acres Acres x Rate 43560 1 Acres x Rate 27181.44 0.624 Totals: 70741.44 1.624 Entry Status: Vacant http://www2.co.black-hawk.ia.us/website/bhmap/bhRepDet.asp?apn=881305101111 12/31/2013 Black Hawk County Property Photos There Is 1 photo of parcel 881305101111. Page 1 of 1 http: //www2. co .black-hawk.ia.us/website/bhmap/bhParImages. asp?apn=8 813 05101111 &... 12/31/2013 Preparer Information: Noel Anderson i111ii111111111woi11111ioiuwmm11111ni11111mid Doc ID 005412940012 Type GEN Kind AGREEMENT Recorded: 03/04/2014 at 02:58:21 PM Fee Amt: $62.00 Page 1 of 12 Black Hawk County Iowa JUDITH A MCCARTHY RECORDER F11e2014-00016002 715 Mulberry Street Waterloo, IA 50703 319.291.4366 Individual's Name Street Address City Phone DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of F -f.,, AA l. --t. , 2014, by and between Senad Dizdarevic ("Company"), and the City of Waterloo; -) Iowa ("City"). RECITALS A. City considers economic development within the City a benefit to the community and is willing for the overall good and welfare of the community to provide financial incentives so as to encourage that goal. B. Company is willing and able to finance and construct a building and related improvements (the "Improvements") on property located in the Martin Road Area urban renewal area. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Purchase of Property. Company has purchased the real property described on Exhibit "A" attached hereto (the "Property"), located as a part of Lot 16 in Kingswood Second Addition on Marnie Avenue. 2. Improvements by Company. Company shall construct a new 6,000 sq. ft. industrial #wilding, and related parking and landscaping (the "Improvements"), all of which shall be located on the Property. The Improvements shall be constructed in accordance with all applicable City, state, and federal building codes and shall comply with ail applicable City ordinances and other applicable law. It is contemplated that the Improvements wilt have a total project cost of approximately $268,000.00. The ()- Property, the -Improvements, and all site preparation and development -related work to make the Property usable for Company's purposes as contemplated by this Agreement are collectively referred to as the "Project". 3. Timeliness of Construction. The parties agree that Developer's commitment to undertake the Project and to construct the Improvements in a timely manner constitutes a material inducement for the City to enter this Agreement, and that without said commitment City would not have done so. Developer must substantially complete construction of the Improvements by December 31, 2014. If construction has commenced within 4 months of the approval of this Agreement, and is stopped and/or delayed as a result of an act of God, war, civil disturbance, court order, labor dispute, fire, or other cause beyond the reasonable control of Developer, the requirement that construction is to be substantially completed by December 31, 2014 shall be tolled for a period of time equal to the period of such stoppage or delay, and thereafter if construction is not completed within the allowed period of extension this Agreement shall be cancelled at the sole option of City. If construction is not substantially completed by December 31, 2014, then the parties agree to execute an amendment to this Agreement and to: the Minimum Assessment Agreement to extend the date specified in Section 4 below and the dates specified in corresponding provisions of the Minimum Assessment Agreement. 4. Minimum Assessment Agreement. Company acknowledges and agrees that it will pay when due all taxes and assessments, general or special, and all other lawful charges whatsoever levied upon or assessed or placed against the Property. Company further agrees that, prior to the date set forth in Section 2 of Exhibit "B," it will not seek or cause a reduction in the taxable valuation for the Property, which shall be fixed for assessment purposes, below the amount of $328,000.00 ("Minimum Taxable Value"), through: (i) willful destruction of the Property, Improvements, or any part of either; (ii) a request to the assessor of Black Hawk County; or (iii) any proceedings, whether administrative, legal, or equitable, with any administrative body or court within the City, Black Hawk County, the State of Iowa, or the federal government. Company agrees to sign and deliver to City the agreement attached as Exhibit "B" concurrently with execution and delivery of this Agreement. 5. Property Tax Rebates. Provided that Developer has completed the Improvements as set forth in Sections 1 and 2 and has executed the Minimum Assessment Agreement as set forth in Section 4, the City agrees to rebate property taxes (with the exceptions noted below) as follows: a. Year One - 80% rebate b. Year Two - 80% rebate c. Year Three - 80% rebate d. Year Four - - 80% rebate e. Year Five - 80% rebate f. Year Six - 80% rebate g. Year Seven 70% rebate h. Year Eight 70% rebate i. Year Nine 70% rebate for any taxable value over the January 1, 2013 taxable value of $1,630.00. Rebates are payable in respect of a given year only to the extent that Developer has actually paid general property taxes due and owing for such year. Rebates are to be paid to Developer within 30 days of any tax payment made by Developer. The taxable value of the Property as a result of the Improvements must be increased by a minimum of 10% and must increase the annual tax by a minimum of $500.00. This rebate program is not applicable to any special assessment levy, debt service levy, or any other levy that is exempted from treatment as tax increment financing under the provisions of applicable law. The first year in which a rebate may be given ("Year One") shall be the first full year for which the assessment is based upon the completed value of the Improvements and not a prior year for which the assessment is based solely upon the value of the land or upon the value of the land and a partial value of the Improvements, due to partial completion of the Improvements or a partial tax year. 6. Representations and Warranties of City. City hereby represents and warrants as follows: A. City is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Each person who executes and delivers this Agreement and all documents to be delivered hereunder is and shall be authorized to do so on behalf of City. 7. Representations and Warranties of Company. Company hereby represents and warrants as follows: A. Company is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order orjudgment. B. Company is duly organized, validly existing, and in good standing under the laws of the state of its organization and is duly qualified and in good standing under the laws of the State of Iowa. C. Company has full right, title, and authority to execute and perform this Agreement and to consummate all of the transactions contemplated herein, and each person who executes and delivers this Agreement and all documents to be delivered to City hereunder is and shall be authorized to do so on behalf of Company. 8. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person, by overnight air courier service, by United States registered or certified mail, postage prepaid, or by facsimile (with an additional copy delivered by one of the foregoing means), and addressed: (a) if to City, at 715 Mulberry Street, Waterloo, Iowa 50703, facsimile number 319-291-4571, Attention: Mayor, with copies to the City Attorney and the Community Planning and Development Director. (b) if to Company, to Senad Dizdarevic, 151 Belleview, Waterloo, Iowa 50701, facsimile number Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) one (1) business day following deposit for overnight delivery to an overnight air courier service which guarantees next day delivery, (iii) three (3) business days following the date of deposit if mailed by United States registered or certified mail, postage prepaid, or (iv) when transmitted by facsimile so long as the sender obtains written electronic confirmation from the sending facsimile machine that such transmission was successful. 9. Amendment, Modification, and Waiver. No amendment, modification, or waiver of any condition, provision, or term of this Agreement shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or by the duly authorized representative of same, and specifying with particularity the extent and nature of the amendment, modification, or waiver. Any waiver by any party of any default by another party shall not affect or impair any rights arising from any subsequent default. 10. Severability. Each provision, section, sentence, clause, phrase, and word of this Agreement is intended to be severable. If any portion of this Agreement shall be deemed invalid or unenforceable, whether in whole or in part, the offending provision or part thereof shall be deemed severed from this Agreement and the remaining provisions of this Agreement shall not be affected thereby and shall continue in full force and effect. If, for any reason, a court finds that any portion of this Agreement is invalid or unenforceable as written, but that by limiting such provision or portion thereof it would become valid and enforceable, then such provision or portion thereof shall be deemed to be written, and shall be construed and enforced, as so limited. 11. Captions. All captions, headings, or titles in the paragraphs or sections of this Agreement are inserted only as a matter of convenience and/or reference, and they shall in no way be construed as limiting, extending, or describing either the scope or intent of this Agreement or of any provisions hereof. 12. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, legal representatives, and future owners of the Property. 13. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. 14. Entire Agreement. This Agreement, together with the Minimum Assessment Agreement attached hereto as Exhibit "B", constitutes the entire agreement of the parties and supersedes all prior or contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. 15. Time of Essence. Time is of the essence of this Agreement. IN WITNESS WHEREOF, the parties have executed this Development Agreement by their duly authorized representatives as of the date first set forth above. CITY OF WATERLOO, IOWA By: truest G. Clark ayor Attest: Suzy Sch -, res, City Clerk Senad Dizdarevic By: EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY: 3135 MARNI.E AVENUE KINGSWOOD SECOND ADDITION WATERLOO LOT 16 EXCEPT THE SOUTH 250 FEET THEREOF AKA PARCEL F IN SURVEY 2013 23688, ALL IN THE CITY OF WATERLOO, IOWA. EXHIBIT "B" MINIMUM ASSESSMENT AGREEMENT This Minimum Assessment Agreement (the "Agreement") is entered into as of -Lk. cA.LA1 . , 2014, by and among the CITY OF WATERLOO, IOWA ("City"), Senad Dizdarevic ("Company"), and the COUNTY ASSESSOR of the City of Waterloo, Iowa ("Assessor"). WITNESSETH: WHEREAS, on or before the date hereof the City and Company have entered into a development agreement (the "Development Agreement") regarding certain real property, described in Exhibit "A" thereto, located in the City; and WHEREAS, it is contemplated that pursuant to the Development Agreement, the Company will undertake the development of an area ("Project") within the City and within the Logan Avenue urban renewal area; and WHEREAS, pursuant to Iowa Code § 403.6, as amended, the City and the Company desire to establish a minimum actual value for the land and the building(s) pursuant to this Agreement and applicable only to the Project, which shall be effective upon substantial completion of the Project and from then until this Agreement is terminated pursuant to the terms herein and which is intended to reflect the minimum actual value of the land and buildings as to the Project only; and WHEREAS, the City and the Assessor have reviewed the preliminary plans and specifications for the improvements (the "Improvements") which the parties contemplate will be erected as a part of the Project. NOW, THEREFORE, the parties hereto, in consideration of the promises, covenants, and agreements made by each other, do hereby agree as follows: 1. Upon substantial completion of construction of the Improvements by the Company, the minimum taxable value which shall be fixed for assessment purposes for the land and Improvements to be constructed thereon by the Company as a part of the Project shall not be less than $328,000.00 ("Minimum Actual Value") until termination of this Agreement. The parties hereto agree that construction of the Improvements will be substantially completed on or before December 31, 2014. If it is not, then the parties agree to execute an amendment to this Agreement that will extend the dates specified in Section 2 below. 1 2. The Minimum Taxable Value herein established shall be of no further force and effect, and this Minimum Assessment Agreement shall terminate, on December 31, 2029. Nothing herein shall be deemed to waive the Company's rights under Iowa Code § 403.6, as amended, to contest that portion of any taxable value assignment made by the Assessor in excess of the Minimum Taxable Value established herein. In no event, however, shall the Company seek or cause the reduction of the taxable value assigned below the Minimum Taxable Value established herein during the term of this Agreement. The City shall not unreasonably withhold its consent to permit the Company to contest its taxable valuations in full, commencing with the assessment of January 1, 2030. 3. This Agreement shall be promptly recorded by the City with the Recorder of Black Hawk County, Iowa. The City shall pay all costs of recording. 4. Neither the preambles nor provisions of this Agreement are intended to, or shall be construed as, modifying the terms of the Development Agreement. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties, including but not limited to future owners of the Project property. IN WITNESS WHEREOF, the parties have executed this Minimum Assessment Agreement by their duly authorized representatives as of the date first set forth above CITY OF W ERLOO, IOWA By: nest G. Clark, Mayor Attest: Suzy Scha'es, City Clerk 2 Senad Dizdarevic 2 By: i STATE OF IOWA ) ss. COUNTY OF BLACK HAWK On this 314 day of , 2014, before me, a Notary Public in and for the State of Iowa, personally appeared Ernest G. Clark and Suzy Schares, to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Waterloo, Iowa, a municipal corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said municipal corporation, and that said instrument was signed and sealed on behalf of said municipal corporation by authority and resolution of its City Council, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said municipal corporation by it and by them voluntarily executed. DeAnne Kobliska COMMISSION NO. 763995 MY COMMISSION^� PARES STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) Acknowledged before me on �' , Ccs 7) , 2014 by Senad Dizdarevic. AirA Notary Public 3 CERTIFICATION OF ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed for the development, and being of the opinion that the minimum market value contained in the foregoing Minimum Assessment Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the property subject to the development, upon completion of improvements to be made on it and in accordance with the Minimum Assessment Agreement, certifies that the taxable value assigned to such land, building and equipment upon completion of the development shall not be less than Three Hundred Twenty Eight Thousand Dollars ($328,000.00) in the aggregate, until termination of this Minimum Assessment Agreement pursuant to the terms hereof. Ass STATE OF IOWA ) ss. COUNTY OF BLACK HAWK ) Date for lack Hawk County, Iowa 2--g1-iY -7-T WOen,ysf�Jd Subscribed and sworn to before me on — P- / , 2014 by Tom* ILLI, Assessor for Black Hawk County, Iowa. Deica Notary Public 4 oa fERO`RAH L/. BO�KMANN COMMISSION NO. 195788 MY CONI,I �IRES Black Hawk County Detailed Parcel Report Page 1 of 1 BLACK HAWK COUNTY REAL ESTATE ASSESSMENT AND TAX INFORMATION Parcel ID Deed Holder Tax Mail to Address 8813-05-101-111 DIZDAREVIC,SENAD DIZDAREVIC,SENAD 151 BELLEVIEW RD WATERLOO, IA 5070-1-0000 PDF No. Map Area Contract Buyer 13 W WATERLOO -C Property Address Current Recorded Transfer 1 Date Drawn Date Filed Recorded Document Type 6/3/2013 6/7/2013 2013 025463 D SALES BUILDING PERMIT Date Amount NUTC / Type Date Number 11/7/2013 IWA 05816 Amount 200,000 Reason New Bldg 6/3/2013 60,000 SPLIT OR DIVISION -12 I Deed LEGAL KINGSWOOD SECOND ADDITION WATERLOO LOT 16 EXC THE S 250 FT THEREOF AKA PARCEL F IN SURVEY 2013 23688 LAND Basis Front Rear Side 1 Side 2 Lot Area Acres Acres x Rate 43560 1 Acres x Rate 27181.44 0.624 Totals: 70741.44 1.624 Entry Status: Vacant http://www2.co.black-hawk.ia. us/website/bhmap/bhRepDet.asp?apn=8813 05101111 12/31/2013 Black: Hawk County Property Photos There is 1 photo of parcel 881305101111. Page 1 of 1 http://www2.co.black-hawk.ia.us/website/bhmap/bhParImages asp?apn=881305101111&... 12/31/2013