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HomeMy WebLinkAboutLeondorf LLC-11/4/2013Mayor 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: November 4, 2013 Prepared: October 30, 2013 Dept. Head Signature: Noel Anderson, Community Planning & Development Director # of Attachments: 2 SUBJECT: Adopt a resolution approving the Release of Reversionary Rights document for the June 25, 2007 Development Agreement between the City of Waterloo and Leondorf LLC, and authorize the Mayor and City Clerk to sign and fully execute any necessary documents. Submitted by: Noel Anderson, Community Planning and Development Director Recommended City Council Action: Resolution approving the release document Summary Statement: As you may recall, as a part of the development of the Country Club Business Park, the City of Waterloo vacated some land along the southern side of San Marnan Drive. Such area to be vacated was deemed to be of no present or future public use to the City of Waterloo. The attached release document will allow the businesses along that corridor to not have a lien or cloud of title on their property in abstract continuations, documents, etc. The original agreement called for $1.3 million of new taxable value to be built along the area vacated, which has been accomplished. This agreement was formed to meet the Sale of Property Policy, and the action helped to create more buildable and taxable land for development. Expenditure Required. NA Source of Funds: NA Policy Issue: Economic development - legal paperwork Alternative: NA Background Information: The vacation of additional land along the San Maman corridor has helped to create acres and acres of more land for development. The City of Waterloo should continue to examine un -needed public land areas to increase land for development by private industry, to help Smart Growth policies. CITY WEBSITE: www.ci.waterloo.ia.us WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer u� ,t S;cj, rCS NOEL ANDERSON From: Chris Wendland <chris.wendland@cbwhlaw.com> Sent: Wednesday, October 30, 2013 8:37 AM To: NOEL ANDERSON; ARIC SCHROEDER Subject: FW: Liberty Bank - Waterloo Attachments: 0098_001.pdf; Release reversion - Leondorf.doc I didn't see this item on Monday's agenda. If it wasn't please get it on for next Monday. Thanks. Chris Wendland Clark, Butler, Walsh & Hamann Phone: (319) 234-5701 Fax: (319) 232-9579 e-mail: chris.wendland@cbwhlaw.com Street: 315 E. 5th Street, Suite 200, Waterloo, Iowa, 50703 Mailing: P.O. Box 596, Waterloo, Iowa, 50704 From: Chris Wendland [mailto:chris.wendland@cbwhlaw.com] Sent: Friday, October 18, 2013 11:42 AM To: 'NOEL ANDERSON'; 'ARIC SCHROEDER' Subject: FW: Liberty Bank - Waterloo I am forwarding a request for release of the City's reversionary rights under a development agreement. Because the building is up, and because I assume that the right would have been invoked long ago if the City had a mind to do so, I have prepared a release document and attach it here. Please have this placed on the council agenda for October 28. The release will need to be recorded after it is signed and notarized. Chris Wendland Clark, Butler, Walsh & Hamann Phone: (319) 234-5701 Fax: (319) 232-9579 e-mail: chris.wendland@cbwhlaw.com Street: 315 E. 5th Street, Suite 200, Waterloo, Iowa, 50703 Mailing: P.O. Box 596, Waterloo, Iowa, 50704 From: Kirsten Arnold [mailto: karnold©abeecherlaw.com] Sent: Friday, October 18, 2013 8:34 AM To: 'Chris Wendland' Subject: Liberty Bank - Waterloo Chris, Per my voice mail, here are the entries relative to the Development Agreement, along with the title opinion referencing the same. (See paragraph 8.) Please let me know if this is something with which you can help us. Thanks, Kirsten N. Arnold Beecher, Field, Walker, Morris, Hoffman & Johnson, P.C. 620 Lafayette Street 1 P.O. Box 178 Waterloo, IA 50704 Phone 319-234-1766 Fax 319-234-1225 This e-mail contains confidential, privileged information intended for the addressee. Do not read, copy, or disseminate it unless you are the addressee. If you received this e-mail in error, please call Beecher Law Firm and ask to speak to the message sender. Also, please e-mail the message back to the sender by replying to it and then deleting it. We appreciate your assistance in correcting this error. From: Beecher Law[mailto:copierCc�beecherlaw.com] Sent: Friday, October 18, 2013 8:29 AM To: Kirsten Arnold Subject: Attached Image 2 10/02/20L3 WED 12:52 FAX 0003/031 James Bradley Byron G. Riley Michael K. Denney Patrick M, Courtney Donald G. Thompson Kelly R. Baler Gragary J. aoyrsr Dean A. Spina Joseph E. Bchmag Bradley G. Hart WUU6m J. Neppl William T, MoCedan Maureen G. Kenney Vemon P. Squires Timothy J. 1-1111 Paul D. Burne Michael J. Pugh Janice J. Kerkove September 23, 2013 VIA E-MAIL AND U.S. MAIL City State Bank Attn: Mr. Nathan Koch 325 Oakbrook Drive P.O. Box 295 Marion, IA 52302 BRADLEY & RILEY PC ATTORNEYS AND COUNSELORS CEDAR RAPIDS-10WA CITY Shannon P. Thompson Kevin C. Papp Kimberly H. Blankenship Joseph W. Younker Jeaaica A. Dom Jeremy B. P. Hogan Natalie K. Ditmara Mani S. Torr Raymond R. Rlnkgl Jr. Adam 4. Brannan Thwart Puce ONE SnUTN Ou.1WJT STREET WRDSITEADDRESS: IOWA CITY, IA 51240-3911 tem.b.rulkynkuraa TELEPHONE: 319.466.1511 VAX: 319.3585560 RE: Preliminary Title Opinion for Lot 4020 Bankers Blvd., Waterloo, Iowa Dear Nathan: EMAIL ADDRrSS: mpugh@bradlcyrIley con o1RCCT DIAL: 319.3585502 Pursuant to your request, I have reviewed the Abstract of Title to the real estate you are intending to purchase from Liberty Bank, FSB. The Abstract, No. 072530, has been prepared by Title Services Corpoz'ation. The Abstract now contains 15 entries showing the record title commencing with the date of the filing of the Final Plat for the subdivision, September 19, 2007, at 4:30 p.m. through August 28, 2013 at 8:00 a.m. to the following described real estate: Lot 5, Country Club Business Center Addition, in the City of Waterloo, Black Hawk County, Iowa. As a result of my examination, I am of the opinion that as of the date of the last continuation of the Abstract legal title to the above-described property was in tho name of Liberty Bank, FSB, the grantee of a Corporate Warranty Deed dated Ootober 9, 2007 and recorded October 24, 2007, as Document No. 2008008955 of the records of Black Hawk County, Iowa. Title is subject to the following comments and/or objections: 101549994.DOC) 10/02/2013 4iE1 12152 FAX 12004/031 BRADLEY & RILEY PC September 23, 2013 Page 2 TAXES 1. The Abstracter shown that the first half fiscal year 2012-2013 real estate taxes in the amount of $25,396.00 are unpaid and the second half taxes in the same amount are unpaid. Please note that the first half taxes will be considered delinquent if not paid on or before September 30, 2013. The tax lists show no other taxes as a lien against the abstracted property. g9NINc 2. Properties located within in the City of Waterloo, Iowa. As such, the property is subject to the Zoning Ordinances of the City of Waterloo. The abstract does not show the specific zoning designation for the abstracted property. You should verify with City of Waterloo officials the exact zoning designation for the abstracted property and the use and restrictions applicable to such a zone. FLAT 3. At Entry No. 1 in the Abstract, the Abstracter makes reference to the Final Plat of Country Club Business Center Addition to Waterloo, Iowa, which document was recorded September 19, 2007, Document No. 2008006412 of the records of Black Hawk County, Iowa. A copy of the plat is affixed to the Abstract and I have reproduced a copy and attached it to this title opinion for your review and reference. Please note the location of a 25 foot wide watennaiu easement, a 50 foot wide overhead utility line easement and a 10 foot wide utility easement as depicted on the Final Plat. SUBDIVISION 4. At Entry Nos. 4, 5, 6, 7 and 8 in the Abstract, there are abstracted various documents relating to the subdivision of Country Club Business Center Addition, City of Waterloo, Black Hawk County, Iowa, which documents were passed and adopted on June 25, 2007, of the records of Black Hawk County, Iowa. EASEMENT 5. At Entry No. 15 in the Abstract, there is abstracted an Electric Underground Easement given to MidAnierican Energy Company, which document is dated July 10, 2008, and was recorded August 20, 2008, Document No. 2009004092 of the records of Black Hawk County, Iowa. This easement appears to encumber the entire abstracted property. A copy of this Easement is attached to my title opinion for your review and reference. RESTRICTIVE COVENANTS, 6. At Entry No. 1 in the Abstract, there is shown Covenants, Restrictions and Easements attached to the Deed of Dedication, which document was recorded September 19, 2007, Document No, 2008006412 of the records of Black Hawk County, Iowa, These Restrictive (01347994.) 101347994.D0C1 10/02/2013 WED 12:52 FAX 21005/031 BRADLEY & RILEY PC September 23, 2013 Page 3 Covenants will be binding upon owners of a lot in the subdivision and I have, therefore, reproduced a copy and attached it to this title opinion for your review and reference. You should be certain to review these covenants so that you are fully aware of their content because they will affect your use, enjoyment and improvement of the abstracted real estate. Please be advised that the protective covenants and restrictions may contain use, .building, setback, development, improvement and other requirements that are more restrictive than applicable ordinances and regulations. You should carefully review the covenants before modifying any existing improvements or adding any new improvements to the real estate. 7. At Entry No. 13 in the Abstract, there is shown a Restrictive Covenant Agreement for the abstracted property, which document was recorded October 24, 2007, Document No, 2008008954 of the records of Black Hawk County, Iowa. These Restrictive Covenants will be binding upon owners of a lot in the subdivision and I have, therefore, reproduced a copy and attached it to this title opinion for your review and reference. You should be certain to review these covenants so that you are fully aware of their content because they will affect your use, enjoyment and improvement of the abstracted real estate. Please be advised that the protective covenants and restrictions may contain use, building, setback, development, improvement and other requirements that are more restrictive than applicable ordinances and regulations. You should carefully review the covenants before modifying any existing improvements or adding any new improvements to the real estate. DEVELOPMENT AGREEMENT 8. At Entry No. 11 in the Abstract, there is abstracted a Development Agreement between Leondorf, LLC and the City of Waterloo, Iowa, which document is dated June 25, 2007, and was recorded August 14, 2007, Document No. 2008003693 of the records of Black Hawk County, town. This Agreement imposes obligations on the owner of the above property for the constntction of certain public improvements and the costs of such improvements. There is also a reversionary interest granted to the City as a part of the Agreement. The obligations contained in the Development Agreement constitute a lien against the abstracted property until properly released by the City. As a result, a release of these obligations pursuant to the Development Agreement should be obtained front the City of Waterloo and recorded with the Black Hawk County Recorder prior to closing, MISCELLANEOUS 9, The abstract of title commences with the date of the filing of the Final Plat for the subdivision, which is September 19, 2007 at 4:30 p.m. lowa Land Title Standard 1.5 provides that an abstract covering the City lot which is included in a subdivision plat under chapter 354 of the Iowa Code is satisfactory if it commences with the date of the filing of the Final Plat if (among other things not applicable here) the plat was recorded more than 10 years earlier. The plat to Country Club Business Center Addition to the City of Waterloo, Iowa was recorded September 19, 2007 and, therefore, was not recorded more than 10 years earlier. You should request that the Seller provide you with a sufficient abstract of title for the abstracted property. {01547994.DOC) (0154799400C} LO/02/2013 WED 12:33 FAx ZIOO6/031 • BRADLEY & RILEY PC September 23, 2013 Page 4 10. The last certification page to the abstract shows that judgment and personal lien searches have been made against all necessary parties pursuant to the guidelines of the Abstracting Standards of the Iowa Land Title Association by using information obtained from the Iowa Court Information System, The abstractor notes that it has concluded a search of the Mechanic's Notice and Lien Registry maintained by the Iowa Secretary of State for Mechanic's Liens only and reports finding nothing. We recommend that a search of the Registry for Notices of Commencement and Preliminary Notices be conducted prior to closing. To conduct a search, contact the abstract company or the Iowa Secretary of State (at 515-281-5204 or https://sos,iowa.gov/rruilr/index.aspx) for assistance. The absence of posted notices or liens cannot be relied upon as proof that there are no parties with mechanic's lien rights. You should always undertake independent inquiry and investigation as to the possibility of the existence of mechanic's lien rights and obtain waivers prior to closing if necessary. This title opinion is limited to an examination of the condition of title to the abstracted real estate as shown in the Abstract of Title described above and only covering the period of time up to the most recent certification. No report or representations are made as to matters occurring after the certification. No report is made as to the accuracy of the Abstracter and this opinion is made subject to the exceptions reserved by the Abstracter in its certificate. Certain matters are not discernible from the Abstract. Accordingly. we are unable to make any report as to; • the location of boundary lines • the existence or location of fences • the rights of parties in possession • unrecorded casements existing by virtue of use • the location of utility lines within recorded easements • the existence or location of buildings and improvements • sufficiency of building set -backs. yard areas and compliance with other zoning requirements • compliance with Health Department requirements, building codes and any applicable requirements of the Americans with Disabilities Act • environmental hazards and/or contamination • encroachments by adjoining landowners • the existence of potential liens against the abstracted real estate for unpaid sewage and water bills • mechanic's liens which may be tiled for unpaid labor and materials furnished to the property within the 90 days preceding the transfer of the real estate • special and deficiency assessments which have not yet been certified to the County Treasurer • liens or responsibility for hazardous waste clean-up costs (01547994.1)0C) (01547994.DOC) 1.0/02/2013 WED 12:53 FAX 1007/031 BRADLEY & RILEY PC September 23, 2013 Page 5 • whether zoning and covenants,, if any, applicable to the subject real estate are compatible with your plans for development, improvement or use With regard to these matters you may wish to take further action including, but not limited to, one or more oftbe following: A. Make a visual inspection and/or obtain a survey of the property to determine I) the location of boundary lines, comers, fences, buildings and improvements; 2) whether utility lines appear to be located within the established easements; 3) whether there appear to be easements of any kind affecting the property not reported in this opinion; 4) possible encroachments by owners of adjoining land; and 5) whether the physical boundaries of the real estate and any existing fences are'consistent with any recorded plat of the property. B. Ascertain whether there is a tenant or any other party in possession of the property other than the owner and, if so, whether that party may have possessory rights which conflict with your right to possession. C. Inquire with the municipal utilities department to determine whether there are any delinquent water or sewer charges against the property and whether the property is in compliance with zoning regulations. D. Ascertain from the city or county municipality in which the property is located whether the real estate, its use and the improvements thereon are in compliance with zoning and health regulations. E. Ask the owner or the real estate agent whether there are any unpaid bills for labor or materials fiunished to the property within the 90 days preceding the date of transfer of possession. E. Inquire as to past uses of the property to determine if such uses could have resulted in any contamination or future contamination of the property or the ground water, and ascertain whether any adjoining property has been or is being used for a purpose which has or could result in contamination of the property you are purchasing, (Current federal and state laws make a landowner liable for costs of environmental clean-up in almost all case;, regardless of who actually causes the contamination.) G. Make a visual inspection and/or conduct professional testing to confirm the real estate is free of environmental hazards and contamination. II. Ask the owner to determine if there are any wells, abandoned wells, solid waste disposal sites, underground storage tanks or buried hazardous materials on the site. I. Ascertain from the municipality in which the property is Iocated whether there are any resolutions of necessity imposing special or deficiency assessments against the property whioh have been passed but have not yet been certified to the County Treasurer. (01947994.DOC) (01547994.DOC) txa'taosio} {OQQ'4b6Ltsio} cutisopuzi pfliar I 14304 h�"II�I AWlQ 'smoL Amu fah, morassuun slip uo Rals p Surpuad at11 uni=► uopoouaoo un3paug axis lu 143411I yam ° Pazon1IaP mai sag'a11LU° louiisgy alp Rum Bum 'aquldo a1111 s uo Moo y tea/800M 9 aged El OZ °£Z xaqutaidaS d A2,1II1I'8 Amaral xtm ee+Zt a £ OZ/Z4/Qt 10/02/2013 WED L2t55 FAX (10) 121022/031 Doc, No. 2007023047 has been modified in Doc. No. 2008003136, dated August 7, 2007, and filed August 7, 2007, as follows: Mortgage is hereby modified to reflect correct legal description described as Caption. LEONDORF LLC, DEVELOPMENT and AGREEMVEENT CITY OF WATERLOO, IOWA Dated June 25, 2007 Filed August 14, 2007 Doc. No. 2008003693 This Agreement is made and entered into this 25th day of June, 2007, by and between Leondorf LLC hereafter called Developer, and the City of Waterloo, Iowa, hereinafter called City. WHEREAS, City considers development within the City a benefit to the community and is wiling 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, Developer is willing and able to construct anew commercial building, raising the taxable value of the site by a minimum of $300,000.00, through the acquisition of the property to be sold, legally described as attached, and abutting property, and WHEREAS, said construction project shall be begun within 8 months and be finished within 24 months by Developer, and NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS HEREINAFTER CONTAINED, Developer and City agree as follows: L The City agrees to transfer property, as legally described, for $1.00 plus costs. The City shall convey, or cause to be conveyed, the property by Quit Clainn Deed. 2. Developer agrees to construct a new commercial building on the property to be conveyed, In combination with other abutting property, raising the current taxable value by a minimum of $300,000 within a 24 --month period, from the date of this ribTLTLI? SLRRATIQNYlC: N COR p + (Forward) Page 11 10/02/2013 WBU 120 55 FAX 1i/1023/031 (11 Cont'd) agreement. This construction would repay the difference in the conveyance price and the estimated value per the assessed values of the area ($64,186.39), within a five (5) year period. Said buildings shall be constructed in accordance with all applicable Clty, State, and Federal building codes and be in compliance with all applicable city ordinances. 3. Developer must obtain a building permit and begin construction within eight (8) months of the date of transfer and be completed within twenty-four (24) months to meet requirements to repay difference as stated herein between estimated value and conveyance price through taxes within a five (5) year period. If, after transfer of the property by the City to Developer, construction is not commencing in accordance with the attached schedule as described, the title to the real estate will revert to City or Developer will pay full value of property as appraised, at Developer's cost by a certified appraiser, or by the average price per square foot of abutting property as calculated by City staff ($64,186.39). Developer agrees to sign all necessary documents for said reversion. if construction is not begun, at die end of eight (8) months, but the development of the project is still imminent, the City Council may but shall not be required to grant an extension of time for the construction of the building. Developer may agree to pay balance due for the real estate based on a value per square foot ($64,186.39) for all said real estate as an option to the reversion of the real estate. Partial start of development. not in accordance with the requirement to build a commercial building within a two-year period will also initiate the above requirement for reversion of Land or frill payment, as previously described. 4. After Developer's completion of commercial building redevelopment and/or expansion, as previously described, any and all reversion or repurchase rights granted to City, relating to any or all of the property described on attached plat of survey shall terminate. Partial terminations of Developer's obligations shall occur on each lot as it is constructed. 5. NOTICE: All notices, requests, and other communication permitted or required herein shall be in writing and shall be effective when delivered to the addressee in person or when sent to such address by United States registered or certified mall, return receipt requited, postage prepaid, or by hand delivery, or fax, addressed as follows: rbill TOTE SERVICES CORPORATION (Forward) Page 12 ET aEsd 1911 N wvtip4 4 )42{, •aadop&aa Jo su2tssC puu szossaaans a l Uodn Suipu!q Imp wautraa2y 84%L :SNOISSV QNv sxoss ris '9 TEo/ttzol� ZZ90913edal `1 Auaa .nS UOISUNggiik 60Z 3inqUOj 8O DTI dsoPuco't :JodoloAaa Yta� EMS uhol 'OOYpa3M SIS AllaCilrgAi SIL TleH ATO kotieg tuty maw �+�1Iaquoa xvz 6S'ZS cttaM E1OZ/ZO/O1 Prepared by Christopher S. Wendland, P.O. Box 596, Waterloo, IA 50704. Phone (319) 234-5701 Return to preparer after recording. RELEASE OF REVERSIONARY RIGHTS WHEREAS, on or about June 25, 2007 the City of Waterloo, Iowa ("City") and Leondorf LLC ("Developer") entered into a certain Development Agreement (the "Agreement") concerning real property legally described as referenced in the Agreement; and WHEREAS, the Agreement provided a right of reversion to the City if the Developer failed to take timely action to develop the property on the terms set forth in the Agreement; and WHEREAS, Developer has satisfied the conditions for extinguishment of the City's reversionary rights. NOW, THEREFORE, City does hereby release and relinquish all rights of reversion, or similar rights, arising from or in connection with the Agreement. Dated 1,A0\.,~ Lam; 2013. CITY OF WATERLOO, IOWA By: Atte STATE OF IOWA ) ) ss. BLACK HAWK COUNTY ) Ernest G. Clark, Mayor Suzy Schaijes, City Clerk This record was acknowledged before me on J 1 �,� ; , 2013, by Ernest G. Clark and Suzy Schares and Mayor and City Clerk, respectively, of the City of Waterloo, Iowa. ••� cI; /SyH�ENNWnE L CRIST.�.M�Op�AN��r COMMNO I8 W WIRES Notary -Public T, • _ 'At• -