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HomeMy WebLinkAboutElizabethBlake, LLC-6/16/2014Mayor 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 WATE =°L0109 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: June 2, 2014 Prepared: May 28, 2014 Dept. Head Signature: Noel Anderson, Community Planning & Development Director # of Attachments: 1 SUBJECT: Resolution approving Development Agreement with ElizabethBlake, LLC for the construction of a 7,500 sq. ft. industrial building at 2005 Westfield Avenue, adding $220,000 of taxable value to the site, and offering a grant up to $40,000 for sanitary sewer line relocation, and authorize Mayor to sign and fully execute the document Submitted by: Noel Anderson, Community Planning & Development Director Recommended City Council Action: Set date of hearing. Summary Statement: The City of Waterloo continues to work extensively on several Smart Growth initiatives: 1. The reutilization of brownfields sites 2. The clustering of "like industries" to better use infrastructure and strengthen business ties within the community 3. Growth and development of our major employers This project works to accomplish many of these goals. This agreement works to help American Pattern continue their business growth and expansion at 2005 Westfield. As you may recall, American Pattem has acquired a redeveloped large portions of the former Rainbow Florists site, by building a new 11,750 sq. ft. building expansion in 2012. Now they are working to build another 7,500 sq. ft. building on-site. American Pattern has several ties with Deere and Company for their continued success in the Cedar Valley area. The site upon which this project is being built had several utility and brownfield perception problems. The City of Waterloo has worked with American Pattern on environmental testing, assessment, and now this sewer line relocation. The sewer line in questions does not serve the American Pattern site, but runs right through the middle of the development site. This agreement will allow American Pattern to move ahead with their new $220,000 project, while the City utilizes its funds for relocation of the erroneously placed sewer line. The project is estimated at $40,000. The City has worked with other companies in past brownfield sites for the relocation of utilities, vacation of unnecessary right-of-way segments, etc. Again, under Smart Growth principles, this is a better solution than being unable to economically reuse these types of sites and forcing development out onto new greenfield sites. CITY WEBSITE: wwwci.waterloo.ia.us WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Acton Employer Expenditure Required: up to 40,000 Source of Funds: bonds Policy Issue: Economic Development and Brownfield Redevelopment Alternative: Not see redevelopment of site Background Information: The City of Waterloo continues to works towards the redevelopment of Brownfield sites for infill development. The strengthening and reuse of land sites near Deere and Company helps to see growth and development from existing businesses and strengthen industrial development within the community. Printable Map Output Page 1 of 1 Black Hawk County Parcel Map Parcel ID: 8913-22-178-027 Deed Holder: ELIZABETH BLAKE L L C Parcel Address: 2005 WESTFIELD AV, WATERLOO, IA 50701 1 i ram IMP' Legend ParcakAm Selected Resta. road... hospital Parini Photos airport 1 —. ®ask Hawk Co. ---- S &adapt parks_ Parka wenn `,, Railroads Townships ,.• Sections Water Paresis ,rBuilds. lYay 0ro*, h p ,, City Linos raihoad_tlfs mneme_ raaddim rodornaare I. t ` S/ 4. oP.C, ,„ it*."?..,, __,,,, Black Hawk County, Iowa 316 East 5th Street Waterloo, Iowa 50703-4774 Phone: (319) 833-3002 Fax: (319) 833-3070 E-mail: auditor@co.black-hawk.ia.us.orq Map Disclaimer: This map does not represent a survey. No liability is assumed for the accuracy of the data delineated herein, either expressed or implied by Black Hawk County, the Black Hawk County Assessor or their employees. This map is compiled from official records, including plats, surveys, recorded deeds, and contracts, and only contains information required for local govemment purposes. See the recorded documents for more detailed legal information. http://www2.co.black-hawk.ia.us/servlet/com.esri.esrimap.Esrimap?ServiceName=bhov&... 5/28/2014 Please return this copy to: City Clerk & Flnance Dept. 715 Mulberry St. Waterloo, IA 50703 DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of J f Co , 2014, by and between ElizabethBlake, L.L.C. (the "Company") and the City of Waterloo, Iowa (the "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 on property located in the Downtown Waterloo Urban Renewal and Redevelopment Plan Area at 2005 Westfield Avenue, as legally described on Exhibit "A" attached hereto (the "Property"). AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Improvements by Company. Company shall construct a commercial building consisting of approximately 7,500 square feet, and related landscaping, sidewalks, signage and parking (collectively, 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 $220,000. 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". 2. City Contribution. The parties acknowledge that the Project will require the relocation of a sanitary sewer line. Company shall undertake, or shall contract with qualified third parties to undertake, all work necessary to relocate the sewer line in accordance with all applicable City ordinances and other applicable law. Upon completion, City will reimburse Company for all reasonable and necessary costs incurred by Company for sewer line relocation, up to a maximum cost of $40,000, subject to Company's satisfaction of timeliness criteria set forth in Section 3 below. Company shall provide such supporting invoices and information as City may reasonably request to substantiate amounts for which Company seeks reimbursement. 3. Timeliness of Construction. The parties agree that Company's commitment to undertake the Project and to construct the Improvements in a timely manner constitutes a material inducement for the City to make the contribution described in Section 2, and that without said commitment City would not have entered into this Agreement. Company must obtain a building permit and begin construction within three (3) months from the date of this Agreement, and sewer line relocation and construction of Improvements on the Property shall be completed by December 31, 2014 (the "Completion Date"). If, after the expiration of three (3) months from the date of the date of this Agreement, Company has not begun in good faith the construction of the Improvements upon the Property but the development of the Project is still imminent, the City Council may, but shall not be required to, consent to an extension of time for the construction of the Improvements, and if an extension is granted but construction of the Improvements has not begun within such extended period, then Company will not be eligible for reimbursement as provided in Section 2. If development has commenced but 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 Company, the requirement that construction is to be completed by the Completion Date 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, then Company will not be eligible for reimbursement as provided in Section 2. 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 aggregate amount of $855,720 ("Minimum Actual 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 the agreement attached as Exhibit "B" at closing. 5. 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. 2 6. 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. 7. 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, at 1193 Lakeview Drive, Buckingham, Iowa, 50612, Attention: Manager. 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. 8. No Joint Venture. Nothing in this Agreement shall, or shall be deemed or construed to, create or constitute any joint venture, partnership, agency, employment, or any other relationship between the City and Company nor to create any liability for one party with respect to the liabilities or obligations of the other party or any other person. 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 3 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, and legal representatives. 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/ ATERLOO, IOWA � /� ELIZABETHBLAKE, L L.C. By: Ernest G. Clark, Mayor Attest: Suzy Sch;b res, City Jerk 4 By: Blake Miehe, Manager EXHIBIT "A" Legal Description of Property to be Improved See Exhibit A-1 attached hereto. Print Transformed Image Page 1 of 1 EXHIBIT A-1' Legal, Description to 2005 Westfield Avenue; Waterloo. Iowa Commencing at a point on- a line that is parallel with and 325.0 feet Northeasterly from the center line of the Chicago, Rock Island & Pacific Railway, said point being 297.4 feet from the intersection of said parallel line with the North and South center line of said Section No. 22: thence South parallel with. the North and South tenter line of said Section No, 22. 130.3 feet. thence tNorthwwesterly on a line that is parallel with the center line of thb t<hi.cago, Rock Island & Pacific Railway 472.3 feet to a point on a line that is parallel with the North and South center line of said Section No. 22/and 769.7 feet from the North and South center line of said Section 22. measured along the Chicago, Rock Island & Pacific Railway, thence North parallel with said Center line of Section No. 22, 167.52 feet: thence Southeasterly along the right—of-why of the Waterloo, Cedar 'Fel).: & Northern Railway 204.7 feet. thence South pdralIel with the Werth and. South center line of said Section No. 224 37.62 feet, too a point'thot is on a line that is parallel with and 325.0 feet Northeasterly frog the center line of the Chicago. Rock Island and Pacific Railway said' point being 565.5 feet from the intersection of said parallel line with the North and South center line said Section No. 22, thence Southeasterly along the line that is parallel with and 325.0 feet from the center line of the Chicago, Rock Island and Pacific Railway 267.6 feat to point ofcommencement. Excepting that part thereof coliveyed`to the Waterloo, Cedar. Falls & Northern Railway Company by Warranty Deed recorded in 04 LD 221. AND A part of the Northeast Quarter of the Southwest Quarter -of Section No, 22!Township. No. 89 North. Range N4. 13 West of the Fifth Principal Meridian, in Black hawk County. Iowa. deecribed.as follows! Commencing at a point on the North'aserly line Of the Right of Way of the Chicago, Reck Island 3 raclfic :Rahway that is 769.7 feet Northwest of the North end South center Eine of said Section (Measured along -the Northeasterly. line Rtght o1 Way): thence North along a line that is parallel with the North and So.t thcenter line of said Section a distance of 215.4 feet; thence Southeasterly along a line that is parallel with the Northeasterly line of said Right of Way a distance of 472.3 feet: thence South along a line that :is parallel with the North and South center line of said Section a distance of 215.4 feet to the Northeasterly line of said right of way; thence Northwesterly along the Northeasterly line of said Right of way a distance of 472.3 feet to the point of beginning, except for the land conveyed to the State of Iowa described in 553 1.D 360. http://24.149.10.230/external/HTML5Viewer/ImageViewer.aspx?bHideCartFunctions=False&bIsRefresh=False 2/19/2014 EXHIBIT "B" MINIMUM ASSESSMENT AGREEMENT This Minimum Assessment Agreement (the "Agreement") is entered into as of l cP , 2014, by and among the CITY OF WATERLOO, IOWA ("City"), ElizabethBlake, L.L.C. ("Developer"), and the COUNTY ASSESSOR of the City of Waterloo, Iowa ("Assessor"). WITNESSETH: WHEREAS, on or before the date hereof the City and Developer 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 Developer will undertake the development of an area ("Project") within the City and within the Downtown Waterloo Urban Renewal and Redevelopment Plan Area; and WHEREAS, pursuant to Iowa Code § 403.6, as amended, the City and the Developer 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 Developer, the minimum actual taxable value which shall be fixed for assessment purposes for the land and Improvements to be constructed thereon by the Developer as a part of the Project shall not be less than $855,720.00 ("Minimum Actual Value") until termination of this Agreement. The parties hereto agree that construction of the Improvements on the Property will be substantially completed on or before December 31, 2014. 2. The Minimum Actual Value herein established shall be of no further force and effect, and this Minimum Assessment Agreement shall terminate, on December 31, 2019. Nothing herein shall be deemed to waive the Developer's rights under Iowa Code § 403.6, as amended, to contest that portion of any actual value assignment made by the Assessor in excess of the Minimum Actual Value established herein. In no event, however, shall the Developer seek or cause the reduction of the actual value assigned below the Minimum Actual Value established herein during the term of this Agreement. The City shall not unreasonably withhold its consent to permit the Developer to contest its taxable valuations in full, commencing with the assessment of January 1, 2020. 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. It may not be modified or amended except by the mutual written agreement of the parties. ATTEST: By: GP Suzy Scha -s, City Clerk CITY OF WATERLOO, IOWA 'Li nest G. Clark, Mayor Bv: ELIZABETHBLAKE, L.L.C. By: Blake Miehe, Manager STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) On , 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 2 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. STATE OF IOWA ) ) ss. COUNTY OF ) DeAnne Kobliska COMMISSION NO. 763995 MY COMMISSION EXPIRES -7 -zip --It, Acknowledged before me on , 2014 by Black Miehe as Manager of ElizabethBlake, L.L.C. Notary Public 3 l 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 for the property as a whole, 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 actual value assigned to such land, building and equipment upon completion of the development shall not be Tess than Eight Hundred Fifty -Five Thousand Seven Hundred Twenty Dollars ($855,720.00). STATE OF IOWA ) ss. COUNTY OF BLACK HAWK Assesor for Black Hawk County, Iowa Subscribed and sworn to before me on *"'"` a" a . ` a & 'o w" DEBORAH L. BOECKMANN MY COMMISSION NO. 196786 MY C�1OMMII�SION EXPIRES / �'/ �iI/ler Date fre 30 , 2014. / :/ Notary Public t z'