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HomeMy WebLinkAboutMMC Proprerties LLC-11/17/2014CITY OF WATERLOO Council Communication City Council Meeting: November 17, 2014 Prepared: November 12, 2014 Dept. Head Signature: Noel Anderson, Community Planning & Development Director # of Attachments: 1 SUBJECT: Resolution approving Amendment to Development Agreement with MMC Properties, LLC for the new industrial building on Geraldine Road — changing the timeframe to begin construction from earlier this spring to this fall and completion within 6 months, 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 March of 2104 the City of Waterloo approved a Development Agreement with MMC Properties, LLC for the construction of a new 10,000 sq. ft. warehouse on Geraldine Road. This new warehouse would be for Version Wireless warehouse space and would have a new total value of $352,000 for the City of Waterloo. All other portions of the Development Agreement would remain the same. Expenditure Required: NA Source of Funds: NA Policy Issue: Economic Development Alternative: NA Background Information: As you may recall, the City of Waterloo recently worked with State RISE funds for the construction of Geraldine Road on the south side of Airline Highway for the creation of more industrial lots. The City has seen one 40,000 sq. ft. spec building built, has an agreement for another 40,000 spec building to start soon, has helped Koelker Excavating build a new 10,400 sq. ft. building on a lot, and is now recommending for the approval of this Development Agreement for another 10,000 sq. ft. building to be built in SouthPort. This new building would be the fifth project in this area (2 spec 40,000 sq. ft. buildings, Koelker, and La Forge) and bring forth new industrial development and jobs to the area. The use of RISE funds is a great way for the City to provide new lot creation, and is matched with local option sale tax funding — utilizing those funds for not only for road construction, but economic development through road construction as well. The two stages of RISE funding for this area has now provided over $4.9 million in new taxable value to this area, as well as construction jobs, new employees, new energy, new excitement to the area. AMENDMENT TO DEVELOPMENT AGREEMENT This Amendment to Development Agreement (the "Amendment") is entered into as of °1/1 ev(7 , 2014, by and between the City of Waterloo, Iowa ("City") and MMC Properties, LLC ("Company"). RECITALS A. Company and City are parties to that certain Development Agreement dated November 25, 2013 (the "DA"), concerning the development of land (the "Property") described on Exhibit "A" to the DA. The DA was filed in the land records of Black Hawk County, Iowa, on or about March 4, 2014 as Doc. No. 2014- 16001. B. The parties desire to amend the DA on the terms set forth herein. NOW, THEREFORE, in consideration of the premises and of other consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree to amend the Agreement as follows: 1. Section 4 of the DA is amended to provide that Company must obtain a building permit and begin construction within sixty (60) days after the date of this Amendment and must complete construction of the Improvements within six (6) months thereafter. Any contrary provision of Section 4 is hereby stricken. 2. Except as amended herein, the DA shall continue unmodified in full force and effect. This Amendment is binding on the parties and the respective successors, assigns, transferees and legal representatives of each. This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute a single instrument. IN WITNESS WHEREOF, the parties have executed this Amendment to Development Agreement as of the date first set forth above. MMC PROPERTIES, LLC CITY OF WATERLOO, IOWA By Bill Bradford, Pres! By: Ernest G. Clark, Mayor Suzy Scliares, City Clerk [acknowledgments on next page] STATE OF IOWA ) ss. BLACK HAWK COUNTY This record was acknowledged before me on (01 (al/4m( 1 , 2014 by Bill Bradford as President of MMC Properties, LLC. STATE OF IOWA ) ) ss. BLACK HAWK COUNTY ) JENNIE L TRANBARGER CanrNuion Number 777271 My Commission Expires March 1 201 This record was acknowledged before me on , 2014 by Ernest G. Clark and Suzy Schares, as Mayor and City Clerk, respectively, of the City of Waterloo, Iowa. Notary Public 2