HomeMy WebLinkAboutR & S Commercial LLC-11/25/2013Mayor
BUCK
CLARK
COUNCIL
MEMBERS
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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
TE LOD,
COMMUNITY PLANNING AND DEVELOPMENT
715 Mulberry Street o Waterloo, Iowa 50703-5783 a (319) 291-4366 Fax (319) 291-4262 .
NOEL C. ANDERSON, Community Planning & eloprnent Director
Council Communication
City Council Meeting: November 25, 2013
Prepared: November 6, 2013
Dept. Head Signature: Noel Anderson, Community Planning & Development Director
# of Attachments: 1
SUBJECT:
Set date of hearing for Real Estate Purchase Agreement between R
& S Commercial LLC and R& S Rental LLC and City of Waterloo for
the sale of City -owned land for $1.00, in connection with
Development Agreement.
Submitted by: Noel Anderson, Community Planning & Development Director
Recommended City Council Action: Set the date of hearing for approval of the Real
Estate Purchase Agreement, authorizing the sale of land for $1.00, plus up to $2,000 in
closing costs.
Summary Statement: As you may recall, the City of Waterloo is working with R & S
Commercial LLC and R & S Rental LLC (SJ Construction) for the relocation and
expansion of SJ Construction and the potential relocation of a home on the block at the
northwest corner of East 9th and Sycamore. The approved Development Agreement
would convey lots to SJ Construction in the Rath area for their new warehouse and
office, as well as a potential lot, acquired by 657A, for house relocation. This project
would help create new commercial development over $240,000 in new taxable value, as
well as work for infill neighborhood development to the area.
Expenditure Required: Up to $2,000 in closing costs for legal work.
Source of Funds: general fund, TIF cash, and bonds
Policy Issue: Economic Development within the City of Waterloo.
Alternative: NA
Background Information: The City is seeing some great new residential investment in
this neighborhood, and this project works to help create new Tots for new residential
development, as well as helping an existing Waterloo business expands in the former
Rath area.
CITY WEBS1'1'1 : www.ci.waterlooda.us
WE'RE WORKING FOR YOU!
An Equal Opportunity/Affirmative Action Employer
Prepared by Noel Anderson
715 Mulberry Street Waterloo, Iowa 50703
(319) 291.4366
DEVEL,PENT AG
EES ENT
This Development A reement (the "Agreement") is made and entered into this
S5' day of Air ., 2013, by and between R & S Commercial LLC (the
"Company"), Steven J. Santomauro and Rachel M. Santomauro, husband and wife (the
"Company Principals"), and the City of Waterloo, Iowa (the "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 provide
financial incentives so as to encourage that goal, and
WHEREAS, Company is willing and able to purchase real property and to
develop a commercial building on property (the "Property") located in the Amended
Rath Urban Renewal and Redevelopment Plan Area, which Property shall be
specifically identified and legally described hereafter by addendum to this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter
contained, Company and City agree as follows:
1. S:: Be f Property; Bn provementss. Within three (3) years from the date of
this Agreement, on a date to be determined hereafter by the mutual consent of the
parties (the "Closing"), the City shall convey the Property to Company for the sum of
$1.00. After conveyance, Company shall construct a commercial building consisting of
approximately -5,200 square feet and related improvements (the "Improvements") on the
Property. The Improvements are to be constructed in accordance with all applicable
City, State, and Federal building codes and be in compliance with all applicable City
ordinances and other applicable law. It is contemplated that the Improvements should
have an estimated total project cost of $ 300,000. The Property, the Improvements,
and all site preparation and development -related work to make the Property usable for
Comp ny's purposes as contemplated by this Agreement are collectively referred to as
the "Project". The Sale of Property shall follow this agreement by a Purchase.
Agreement for city -owned land as specified in Exhibit "A" between the City of Waterloo
and R & S Commercial LLC. Land also specified for potential development in Exhibit
that it will pay when due all taxes and assessments, genet or special, arid as other
charges whatsoever levied upon or assessed or placed against the Redevelopment
Site. Company further agrees that prior to the date set forth in Section 2 of Exhibit "D"
it will not cause a reduction in the taxable valuation for the Redevelopment Site, which
shall be fixed for assessment purposes, below the amount of $252,510 ("Minimum
Actual Value"), through:
(i) willful destruction of the Redevelopment Site, the Improvements, or
any part of either;
(11) 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 said attached Exhibit "D" at the closing.
4. Other Development ince tiives and Commitments. . Because the
Property is located in a designated Consolidated Urban Revitalization Area (CURA), the
Property is eligible for tax exemption consistent with and to the extent provided for in
Iowa law, provided that Company meets all requirements to qualify for such exemption.
5. Deeds. The City shall convey or cause to be conveyed fee simple title to
the Property by special warranty deed, free and clear of all encumbrances except: (a)
easements, conditions, and restrictions of record which do not, in Company's opinion,
interfere with Company's proposed use; (b) current and future 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. Company and/or Company Principals shall
convey or cause to be conveyed fee simple title to the Company Property by warranty
deed, free and clear of all encumbrances except: (a) easements, conditions, and
restrictions of record which do not, in Company's opinion, interfere with Company's
proposed use; (b) current and future 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.
5.1. Abstracting. No Tess than fourteen (14) days prior to the anticipated date
of conveyance of its respective property, a party shall, at its own expense, deliver to the
other party an updated abstract of title. If title is unmarketable or subject to matters not
acceptable to the recipient, the conveying party shall remedy or remove such
objectionable matters in timely fashion following written notice of such objections from
the other party.
6. Representations and ='ti' = rranties of City. City hereby represents and
warrants as follows:
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delivery 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.
11. ,ms ment, vi(*dification, nd 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 its duly
authorized representative, 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.
12. Severabillity. 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.
13. C ptiions. 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.
14. =''Ming E sect. This Agreement shall be binding and shall inure to the
benefit of the parties and their respective successors, assigns, and legal
representatives.
15. 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.
16. Entire Agreeent. This Agreement, together with the Minimum
Assessment Agreement attached hereto as Exhibit "C", 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
su ject matter hereof.
17. Time of Essence. Time is of the essence of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Development
Agreement as of the date first written above.
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EXHIBIT "A"
Legal Descripti.n of the Doty Property
MORNING SIDE ADDITION LOT 22, 23, 24, AND 25 BLOCK 1, CITY OF WATERLOO, BLACK HAWK
COUNTY, IOWA.
7
Exhibit "C"
Legal description i i Company I.,r party
ORIGINAL PLAT WATERLOO EAST LOTS 8 AND 9 BLOCK 18, CITY OF WATERLOO, BLACK HAWK
COUNTY, IOWA.
9
2019. Nothing herein shall be deemed to waive the Developer's rights under Iowa
Cade section 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 paying 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 Minimum Assessment Agreement shall inure to the benefit of and be
binding upon the successors and assigns of the parties, including but not limited to
future owners of the Project property.
City of Waterloo, Iowa R & S Commercial LLC
By:
By: /x /02- ize)
Ernest G. Clark, Mayor Steve Santomauro, President
Atte
Suzy Schar - , Citf Clerk
STATE OF IOWA
) ss.
COUNTY OF BLACK HAWK
11
CE
TiFICATION
F ASSESS
•
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, 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
less than Two Hundred Fifty Two Thousand Five Hundred Ten Dollars ($252,510.00).
Assessor for Black Hawk County, Iowa
Date
STATE OF IOWA )
) ss.
COUNTY OF BLACK HAWK
Subscribed and swom to before me on , 2013, by
, Assessor for Black Hawk County, Iowa.
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