HomeMy WebLinkAboutTournier Manufacturing, Inc.-5/12/2014Mayor
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CLARK
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CITY OF WATER.,
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: May 12, 2014
Prepared: May 7, 2014 .�
Dept. Head Signature: Noel Anderson, Community Planning & Development Director
# of Attachments: 1
SUBJECT: Resolution approving Second Amendment to Development
Agreement with Tournier Manufacturing, Inc. for the building at 2710 Wagner
Road — altering the rebate schedule to reflect a Minimum Value of $400,000 for
Years One, Two, and Three, 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, back in 2009, the City of Waterloo
granted free land and 5 years of tax rebates to Tournier Manufacturing for the
construction of a new building, to meet their expansion needs from a site they
previously leased on Burton Avenue. Since that time, Tournier appraisals have
questioned the minimum assessment amount put on the building. In working
closely with the Black Hawk County Assessor's office and Tournier, city staff
believes this amendment will better put the value where it should be for the
project.
By lessening the Minimum Assessment Value, by City Policy, the project would
lose the 5 years at 50% rebates which would normally accompany a $1,000,000
building. The amendment still puts in 1 year at 58% tax rebates, and two years
at 60%, which would rebate back Tournier the amount if the value had already
been at the $400,000 value. City staff believes this is the correct steps to take to
better put this value in the right value based on other buildings, in area,
appraisals performed, and per the Black Hawk County Assessor's office.
In the end, the project will have received "free land" for the project, which is in
accordance with City policy for this type of development.
Expenditure Required: NA
Source of Funds: NA
CITY WEBSITE: www.ci.waterloo.ia.us
WE'RE WORKING FOR YOU!
An Equal Opportunity/Affirmative Action Employer
SECOND AMENDMENT TO DEVELOPMENT AGREEMENT
This Second Amendment to Development Agreement (the "Amendment") is entered into
as of " - fl &- , 2014, by and between the City of Waterloo, Iowa ("City") and Tournier
Manufacturing, Inc. ("Owners").
RECITALS
A. Owners are parties with City to that certain Development Agreement and Minimum
Assessment Agreement dated October 12, 2009 (the "Agreement") concerning the
development of land as described in the Agreement. Said Agreement was
amended in a First Amendment to Development Agreement dated May 20, 2013
(the "First Amendment") to allow for a change in the minimum assessment value of
the land described in the Agreement.
B. The First Amendment lowered the assessment value to $400,000.00 for the project
and allowed for one year of tax rebates at 58% for the year that had partially been
paid. The new assessment value was certified as of January 1, 2014.
C. The City desires to amend the Agreement yet again to extend the number of years
of tax rebates to fully compensate Owners for property taxes paid based upon the
minimum assessment value listed in the Agreement.
AMENDMENT
NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties
hereby agree as follows:
1. Part 6, Property Tax Rebates, shall be amended to reflect the following rebates
from the City to Owners:
a. Year One -
b. Year Two -
c. Year Three -
58% rebate
60% rebate
60% rebate
These rebates reflect property tax payments for the taxes assessed on January 1, 2011,
January 1, 2012 and January 1, 2013. Any future tax rebate years shall be eliminated from the
Development Agreement.
2. All other terms of the Agreement remain unmodified and in full force and effect.
This Second Amendment is binding on the parties and the respective heirs, personal
representatives, successors and assigns of each.
IN WITNESS WHEREOF, the parties have executed this Second Amendment to
Development Agreement by their duly authorized representatives as of the date first set forth
above.
TOURNIER MANUFACTURING, INC.
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CITY OF WATERLOO, IOWA
By: ,;,,e,-f,t"
By:
Ernest G. Clark, Mayor
s, City Clerk