HomeMy WebLinkAboutL & H Farms, Ltd-12/2/2013Mayor
BUCK
CLARK
COUNCIL
MEMBERS
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DAVID
JONES
Ward 1
CAROLYN
COLE
TVard 2
HAROLD
GETTY
Ward 3
QUENTIN
HART
Ward 4
RON
WELPER
Ward 5
BOB
GREENWOOD
At -Large
STEVE
SCHMITT
At -Large
CITY
F DI
COMMUNITY PLANNING AND DEVELOPMENT
715 Mulberry Street Waterloo, Iowa 50703-5783 e (319) 291-4366 Fax (319) 291-4262 .
NOEL C. ANDERSON, Community Planning & De:r1cpmenr Dint -tor
CITY OF WATERLOO
Council Communication
City Council Meeting: December 2, 2013
Prepared: November 26, 2013
Dept. Head Signature: Noel Anderson, Community Planning & Development Director
# of Attachments: 2
12
SUBJECT: Adopt a resolution approving the Memorandum of Agreement Regarding
Prorating of Real Estate Taxes between the City of Waterloo and L & H Farms, Ltd., 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 document
Summary Statement: Due to the complexity of the transaction for the City's acquisition of
land (multi-year contract, exchange agreement with other properties, etc.) the attorney feel
it is in the best interest of both parties to have this agreement to better determine the
proration of taxes calculations.
The purpose of the Agreement is to confirm the parties' agreement regarding the manner
in which real estate taxes will be prorated. The parties acknowledge that the Exchange
Agreement requires that taxes for the Real Estate are to be prorated to the closing date for
the sale and purchase of the Real Estate, i.e., November 26, 2013.
Expenditure Required. NA
Source of Funds: NA
Policy Issue: Economic development - legal paperwork
Alternative: NA
Background Information: The acquisition of this land, through the use of TIF funds,
helps the City of Waterloo competitively go after larger projects, which will ultimately bring
new jobs, new businesses, and new tax base to the community.
CITY WEBSITE: wwwci.waterloo.ia.us
WE'RE WORKING FOR YOU!
An Equal Opportunity/Affirmative Action Employer
MEMORANDUM OF AGREEMENT
REGARDING PRORATING OF REAL ESTATE TAXES
This Agreement is entered into as of I,' L -, 2013, by and between L & H
Farms, Ltd. ("L&H") and the City of Waterloo, Iowa ("City").
RECITALS
A. L&H and City are parties to a certain Exchange Agreement by which L&H will convey
to City, as part of an exchange of like -kind real estate, certain real property described as: the
South 172.75 feet of the North 358.25 feet of the North Half of the Southwest Quarter (N 1/2 SW
`A) in Section No. 9, Township No. 88 North, Range No. 13 West of the Fifth Principal Meridian,
Black Hawk County, Iowa, EXCEPT that part thereof conveyed to the City of Waterloo in a deed
filed March 14, 2012 as Doc. No. 2012-16922 in the Office of the Black Hawk County Recorder
(the "Real Estate").
B. The purpose of this Agreement is to confirm the parties' agreement regarding the manner
in which real estate taxes will be prorated. The parties acknowledge that the Exchange
Agreement requires that taxes for the Real Estate are to be prorated to the closing date for the sale
and purchase of the Real Estate, i.e., November 26, 2013.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises exchanged herein, and for other
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree that L&H
will pay the full tax bill for the Real Estate that is due on or before March 31, 2014. Concurrently with
said payment, L&H will also deliver a check in the amount of $134.15, payable to the Black Hawk
County Treasurer, to the office of City's legal counsel, namely, Clark Butler Walsh & Hamann, 315 E. 5th
Street, Waterloo, Iowa, 50703, Attn: Chris Wendland. City's legal counsel will be responsible for
remittance of said check to the treasurer's office as a prepayment of L&H's prorated share of the
September 2014 tax installment. The parties acknowledge that the sum of $134.15 is a good -faith
estimate based on currently available information. The parties also acknowledge that, when tax bills are
issued in August 2014, the Real Estate will not be taxed as a separate parcel from the larger parcels of
which it is a portion, but that the treasurer's office has indicated that taxes otherwise attributable to the
Real Estate will not be included in said tax bills for the larger parcels. The August 2014 tax bills for the
larger parcels will be the full and sole responsibility of L&H. The parties agree to cooperate reasonably
and in good faith, and to take such further steps as may be reasonably necessary or advisable, to carry out
the purpose and intent of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized
representatives as of the date first set forth above.
L & H FARMS, LTD.
By:
Curtis G. Hollis, President
CITY OF,W4 TERLOO, IOWA
By:
Atte
Ernest G. Clark, Mayor
zy Sc es, City Clerk
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