HomeMy WebLinkAboutBlack Hawk Contracting and Development Co.-4/8/2013DEVELOPMENT AGREEMENT
This Agreement is made and entered into this "` day of . Z
2013 by and between Black Hawk Contracting and Development Co., herea er called
"Company", and the City of Waterloo, Iowa, hereinafter called "City".
WHEREAS, City considers economic development within the City a benefit to the
community and is willing for the total good and welfare of the community to sell city -
owned property not needed for current or future public purposes so as to encourage
that goal, and
WHEREAS, Company is willing and able to construct six (6) single-family
dwellings, valued at approximately $125,000.00 each, on six (6) separate properties
legally described on attached Exhibit "A".
WHEREAS, said construction of three (3) to (4) single family houses, as shown
on attached Exhibit "B", shall be completed by March 31, 2014, and the remaining two
(2) to three (3) single-family dwellings shall be completed by March 31, 2015 of this
signed and executed Development Agreement by Company, and said permit for the
new construction shall be taken out within two (2) months of approval of the Agreement
and conveyance.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
HEREINAFTER CONTAINED, Developer and City agree as follows:
1. Sale of Property; Title. Subject to the terms hereof, City shall convey the
property, or cause it to be conveyed, to Company for the sum of $1.00 (the
"Purchase Price"). Conveyance shall be quit claim deed, free and clear of all
encumbrances arising by or through City, except: (a) easement, conditions
and restrictions of record which do not, in Company's opinion, interfere with
Company's proposed use; (b) current and future real estate real property
taxes and assessments subject to the agreements made herein; (c) general
utility and right-of-way easements serving the Property; and (d) restrictions
imposed by the City zoning ordinances and other applicable law. City shall
have no duty to convey title to Company until Company delivers to City
reasonable and satisfactory proof of financial ability to undertake and carry on
the Project (defined below), which may take the form of a lending commitment
letter. Company shall, at its own expense, prepare an updated abstract of
title, or in lieu thereof Company may, at its own expense, obtain whatever
form of title evidence it desires. It title is unmarketable or subject to matters
not acceptable to Company, and if City does no remedy or remove such
objectionable matters in timely fashion following written notice of such
objections from Company, Company may terminate this Agreement. City
shall provide any title documents it has in its possession, including any
abstracts, to assist in title preparation.
2. Improvements by Company. Company agrees to and shall construct six (6)
single-family dwellings, valued at approximately $125,000.00 each, on six (6)
separate properties, and take out necessary permits within a two-month
period, from the date of this agreement. Said single-family dwellings and any
attached garages shall be constructed in accordance with all applicable City,
State, and Federal building codes and be in compliance with all applicable
city ordinances.
The Property, the Improvements, and all site preparation and development -
related work to make the Property usable for Company's purpose as
contemplated by this Agreement are collectively referred to as the "Project".
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 convey the
Property, or to cause the Property to be conveyed, to Company and that
without said commitment would not do so. Measured from the date the
Property is deeded to Company, Company must obtain a building permit and
begin construction on said houses.
If Company has not, in good faith, begun the construction of any phase of the
Improvements on the schedule stated above, then title to the Property shall
revert to the City, except as provided in this Agreement; provided, however,
that if construction has not begun, 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 the title to the Property shall revert to the
City after the end of said extended period. If Company determines at any
time that the Project is not economically feasible, then after giving thirty (30)
days' advance written notice to City, Company may convey the Property to
City, and thereupon neither party shall have any further obligation under this
Agreement except as expressly provided. If development has commenced
within the required period of any extended period 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 Company, the
requirement that construction of any phase or of the entire Project 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 title to the Property shall revert to the City.
4. Platting and Release. Company may, in consultation with City, plat the
Property if reasonably necessary for purposes of the Project. As nearly as
reasonably possible, the area platted for each phase shall correspond with
the description of the phase area stated in Section 2 above, or shall be
comprised of a roughly equivalent area as measured in square feet. In
connection with any sale by Company of that part of the Property
corresponding with a completed phase of Improvements, City agrees to
release such part of the Property from the conditions and restrictions set forth
in this Agreement. A release of any such part of the Property shall not affect
the continued effectiveness and enforceability of this Agreement as to any
part of the Property that is not specifically released.
5. Reverter to Title; Indemnity. Title shall not revert to City as to any phase of
Improvements that has been substantially completed. In the event of any
reverter of title, Company agrees that it shall, at its own expense, promptly
execute all documents, including but not limited to a special warranty deed, or
take such other actions as the City may reasonably request to effectuate said
reverter and to deliver to City title to the Property that is free and clear of any
lien, claim, or encumbrance arising by or through Company. Company shall
pay in full, so as to discharge or satisfy, all liens, claims, charges, and
encumbrances on or against the Property. If Company fails to deliver such
documents, including but not limited to a special warranty deed, to City within
thirty (30) days of written demand by City, then City shall be authorized to
execute, on Company's behalf and as its attorney-in-fact, the special warranty
deed required by this Section 4, and for such limited purpose Company does
hereby constitute and appoint City as its attomey-in-fact.
Company further agrees that it shall indemnify City and hold it harmless with
respect to any demand, claim, cause of action, damage, or injury made,
suffered, or incurred as a result of or in connection with the Project,
Company's failure to carry on or complete same, or any lien, claim, charge, or
encumbrance on or against the Property of any type or nature whatsoever
that attaches to the Property by virtue of Company's ownership of same. If
City files suit to enforce the terms of this Agreement and prevails in such suit,
then Company shall be liable for all legal expenses, including but not limited
to reasonable attorneys' fees. Company's duties of indemnity pursuant to this
Section 5 shall survive the expiration, termination or cancellation of this
Agreement for any reason.
6. No Encumbrances; Limited Exception. Until completion of the
Improvements, Company agrees that it shall not create, incur, or suffer to
exist any lien, encumbrance, mortgage, security interest, or charge on the
Property, other than such mortgage or mortgages as may be reasonably
necessary to finance Company's completion of the Improvements and of
which Company notifies City in advance of Company's execution of any such
mortgage. Company may not mortgage the Property or any part thereof for
any purpose except in connection with financing of the Improvements.
7. Water and Sewer. Company shall be responsible for extending water and
sewer service to any location on the Property and for payment associated
with connection fees.
8. 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 an 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 on
behalf of City.
9. Representations and Warranties of Company. Company hereby
represents and warrants as follows:
A. Company is not prohibited from consummating this transaction
contemplated in this Agreement by an 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.
10. No Assignment or Conveyance. Company agrees that it will not sell,
convey, assign or otherwise transfer its interest in the Property prior to
completion of the Project, whether in whole or in part, to any other person or
entity without the prior written consent of the City. Reasonable grounds for
the City to withhold its consent shall include but are not limited to the inability
of the proposed transferee to demonstrate to the City's satisfaction that it has
the financial ability to observe all of the terms to be performed by Company
under this agreement.
11. Materiality of Company's Promises, Covenants, Representations and
Warranties. Each and every promise, covenant, representation, and
warranty set forth in this Agreement on the part of Company to be performed
is a material term of this Agreement, and each and every promise, covenant,
representation, and warranty constitutes a material inducement for City to
enter this Agreement. Company acknowledges that without such promises,
covenants, representations, and warranties, City would not have entered this
Agreement. Upon breach of any promise or covenant, or in the event of the
incorrectness or falsity of any representation or warranty, City may, at its sole
option and in addition to any other right or remedy available to it, terminate
this Agreement and declare it null and void.
12. 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 facsimile (with and additional
copy delivered by one of the foregoing means), and addressed:
For the City:
Mayor Ernest G. Clark
City Hall
715 Mulberry Street
Waterloo, Iowa 50703
With copy to Community Planning & Development Director
For Developer:
John R. Rooff III
Black Hawk Contracting and Development Co.
1509 Commercial Street
Waterloo, Iowa 50702
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. A party may
change the address for giving notice by any method set forth in this section.
13. 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.
14. 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.
15. Severability. Each provision, section, sentence, clause, phrase, and word
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 the 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.
16. Captions. All captions, headings, or titles in the paragraphs or sections of
this Agreement are inserted only as 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.
17. Binding Effect. This agreement shall be binding and shall inure to the
benefit of the parties and their respective successors, assigns, and legal
representatives.
18. 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.
19. Entire Agreement. This Agreement, together with the exhibits attached
hereto, 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.
20. 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.
BLACK HAWK CONTRACTING AND DEVELOPMENT
By:
John R. Rooff III, Develo
CITY OF /' / TERLOO, IOWA
By: % 11%
rnest G. Clark, Mayor Date
Date
15
4-l8l2ar3
ATTEST:
Suzy Scharrs, City Clerk Date
1±14?0 (3
PERSONAL GUARANTY. The undersigned, being either an office, shareholder,
manager, or member of Company, hereby agree for themselves and their heirs,
personal representatives, and assigns, to unconditionally guarantee to City, its
successors and assigns, the full and prompt performance by Company, it successors
and assigns, of all promises and covenants on the part of Company to be performed
pursuant to the foregoing Agreement, including but not limited to the duties of indemnity
set forth therein. Liability of guarantors hereunder is joint and several.
Exhibit "A"
Legal Descriptions — Properties to be Conveyed
TRACT 1 — A REPLAT OF LOT 15, AND THE WEST 11.04 FEET OF LOT 16 OF
BLOCK 6, IN HILLSIDE ADDITION
TRACT 2 — A REPLAT OF LOT 16 EXCEPT THE WEST 11.04 FEET THEREOF, AND
THE WEST 22.08 FEET OF LOT 17 OF BLOCK 6, IN HILLSIDE ADDITION
TRACT 3 — A REPLAT OF LOT 17, EXCEPT THE WEST 22.08 FEET THEREOF AND
ALL OF LOT 18 OF BLOCK 6, IN HILLSIDE ADDITION
TRACT 4 — A REPLAT OF LOTS 1, AND THE EAST 24.97 FEET OF LOT 2 OF
BLOCK 6, IN HILLSIDE ADDITION
TRACT 5 — A REPLAT OF LOT 2 EXCEPT THE EAST 24.97 FEET THEREOF AND
LOT 3 EXCEPT THE WEST 15.00 FEET THEREOF IN BLOCK 6, IN HILLSIDE
ADDITION
TRACT 6 — A REPLAT OF THE WEST 15.00 FEET OF LOT 3, AND LOT 4 EXCEPT
THE WEST 5.00 FEET OF BLOCK 6, IN HILLSIDE ADDITION
TRACT 7 — A REPLAT OF THE WEST 5.00 FEET OF LOT 4 OF BLOCK 6, IN
HILLSIDE ADDITION
all in the City of Waterloo, Black Hawk County, State of Iowa
Exhibit "B"
See building plans and sketches attached hereto
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PLAN #3
1270 SQ. FT.
DATE:
DRAWN:
SCALE:
1/4'
REVISIONS:
DRAWING:
FLOOR PLAN
MODEL:
DRAWING IFR:
PAGE:
COMPLEYE GARAGE SEPARATION THAT IS NEEDED FROM THE RESIDENCE ANO ITB ATTIC SY MEANS OF 8/B' FIRESHIELD GYPSUM
BOARD OR EQUIVALENT APPLIED TO GARAGE SIDE OF RITE =INSTRUCTED GARAOEB Is THE RESPONSIBILITY OF OTHERS.
OIBOL08EO UR OTHERWIB@USED WITHOUT THE WRITTEN OGNBEANT bF ALL ALDL AMeRIQAN HOMES OF IOWA, LLC.
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Rear Elevation
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Right Elevation
DATE:
DRAWN:
SCALE:
REVISIONS:
ALL. AMERICAN HOMES IOWA
1551 151M AVE. S.B. ( LLC
Dyersville, Iowa 52040 563.675.2421
DRAWING:
MODEL:
DRAWING #:
3 F6 -
PAGE:
DOMPLLTE BARABE SEPARATION THAT 18 NEEDED FROM THE RE8IDEgNDE ANO ITT8 ATTIO BY MEANS OF B/B' FIREBHIELO GYPSUM
ROARO OR Eq DIVALENT APPLIED TO BARABE BIOE DF SITE OONSTRUDTEO BARAOES 18 THE REBPONBISILITY OF OTHERS,
DI BOLa9ED OR OTHERWISE UFBEO WITHOUT TH6 WRITTEN• Or,NBENT LbNF ALL ALL AMERIOAIIJ HOMES OF IOWA, LLD.
Owner
Bedroom
11l-2" x 13'-1"
Kitchen/
Dining Room
1T-11" x 13'-1"
Living Room
14'-5" x 15'-1"
DATE:
DRAWN:
SCALE:
REVISIONS:
ALL AMERICAN HOMES IOWA
11303 I 101HI AVE. S.E. ( LLC )
Dyersville, Iowa 52040 0O3-075-2421
DRAWING:
MODEL:
DRAWING #:
PAGE:
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