HomeMy WebLinkAboutCardinal Construction, Inc.-12/9/2013Mayor
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
CI
WATERLD
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: December 9, 2013
Prepared: December 3, 2013
Dept. Head Signature: Noel Anderson, Community Planning & Development Director
# of Attachments: 1
SUBJECT: Adopt a resolution authorizing the Mayor and City Clerk to sign and
fully execute the Third Amendment to the original Development Agreement with
Cardinal Construction, Inc. from August 2008, to allow separation of the two
projects originally required.
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 August 2008, the City Council
approved a Development Agreement with Cardinal Construction, Inc. for the new
construction of two professional office buildings in the Country Club Business
Park. Cardinal has built the first of the two buildings to date, and is now working
to sell that first building to another party.
The 3rd Amendment to the original Development Agreement will allow for the
sale, figure up the new Minimum Assessed Value for the portion and size of area
to be split. As you may recall, the companies in Country Club Business Park
have primarily purchase the ;land themselves, and then been paid back through
the tax rebates generated by their own projects. Thus, there is no city expense
up front for these projects, and they generate taxes to the TIF District, and bring
new businesses and new employees to the area, which will help to bring
additional development.
Expenditure Required: NA
Source of Funds: NA
Policy Issue: Economic Development
Alternative: NA
CITY WEBSITE: wwwci.waterloo.ia.us
WE'RE WORKING FOR YOU!
An Equal Opportunity/Affirmative Action Employer
Background Information: In January 2010, the City Council approved a
request by Cardinal Construction for an amendment to that original development
agreement to push the start and finish dates back to June 1, 2010 and January 1,
2011 respectively.
Then, a second amendment was approved to allow for an extension of time to
build the second of the two office buildings. All other terms of the agreement
remained the same.
With the overall goal of trying to accomplish the goal of trying to bring new
development, staff would support the extension to the development agreement.
The City of Waterloo has worked to build a new Ansborough Interchange to this
area, rezone land, and extend the TIF District to draw new development to the
area. As with the many other projects listed above, we are proving to be
successful in this endeavor.
With the overall goal of trying to accomplish the task of trying to bring new
development, staff would support the amendment to the development
agreement.
Prepared by Christopher S. Wendland, P.O. Box 596, Waterloo, IA 50704. Phone (319) 234-5701
THIRD AMENDMENT TO DEVELOPMENT AGREEMENT and
FIRST AMENDMENT TO MINIMUM ASSESSMENT AGREEMENT
This Third Amendment to Development Agreement and First Amen ment to Minimum
Assessment Agreement (the "Amendment") is entered into as of QGI? 4%, 2-6/, by
and between the City of Waterloo, Iowa ("City"), Cardinal Construction Inc. ("Cardinal") and Go
America, L.L.C. ("Transferee").
RECITALS
A. Cardinal and City are parties to that certain Development Agreement dated August
11, 2008 (the "DA"), conceming the development of land (the "Property") described
on Exhibit "A" to the DA. Company and City are also parties to that certain
Minimum Assessment Agreement (the "MAA") pertaining to the Property. The DA
and MAA have been filed in the land records of Black Hawk County, Iowa, as Doc.
No. 209-8430. The DA has been amended pursuant to a first amendment dated as
of January 11, 2010 and filed as Doc. No. 2010-14097 and a second amendment
dated as of September 7, 2010 and filed as Doc. No. 2011-6150.
B. The parties desire to amend the DA and MAA 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. The parties acknowledge that the Property has been split into two separate
parcels. One parcel was formerly designated as assessor parcel no. 8813-09-102-004 and is
locally known as 815 Tower Park Drive. The structure and improvements located at said
address were constructed in fulfillment of Cardinal's duty to construct a building of 5,300 square
feet and are located on that part of the Property that is legally described on Exhibit "Amendment
1" (the "Large Parcel") attached hereto. For purposes of the DA from and after the date of this
Amendment, the word "Property" in the DA refers to the Large Parcel. City acknowledges that
the assessed value of the Large Parcel is $1,360,320 and that such value proportionately
satisfies Cardinal's duties with respect to improvements upon the Large Parcel.
2. On or about the date of execution of this Amendment, City and Cardinal will enter
into a new development agreement with respect to the second new parcel on which no
development has yet occurred.
3. Section 4 of the DA, and Section 1 of the MA, are each amended to strike
"$2,301,724.30" therefrom and to substitute "$1,360,320" in its place.
4. Cardinal does hereby assign, transfer and set over to Transferee all of Cardinal's
rights and obligations as "Company" under the DA and MAA, as each have been amended and
are further amended hereby, and Transferee does hereby assume all of such rights and
obligations. City hereby consents to such assignment and assumption. Transferee's address
for purposes of the notice provisions of the DA is 101 2nd Street SE, Suite 300, Cedar Rapids, IA
52401. Cardinal and Transferee will execute and deliver to City an assignment of rebates to
provide instructions to City, on such form as City may reasonably request, with respect to future
payment of rebates that are payable pursuant to the DA.
5. Except as amended herein, the DA and the MAA 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 Third Amendment to
Development Agreement and First Amendment to Minimum Assessment Agreement by their
duly authorized representatives as of the date first set forth above.
CARDINAL CONSTRUCTION INC. CITY OF
By:
Gene Leonhart, President
GO AMERICA, L.L.C.
By:
Title:
STATE OF IOWA )
) ss.
BLACK HAWK COUNTY )
TERLOO, IOWA
By:' >
'Em - t G. C - , Mayor
es, City Clerk
This record was acknowledged before me on , by Gene Leonhart
as President of Cardinal Construction Inc.
Notary Public
2
STATE OF IOWA )
) ss.
COUNTY)
This record was acknowledged before me on , by
as of Go America, L.L.C.
STATE OF IOWA
ss.
BLACK HAWK COUNTY )
Notary Public
This record was acknowledged before me on --eCe t.G . 101 by Ernest G. Clark
and Suzy Schares, as Mayor and City Clerk, respectively, of the City of Waterloo, Iowa.
oc►� a a DeAnne Kobliska
len ®COMMISSION NO. 763995
MY COMMISSION EXPIRES
3
EXHIBIT "AMENDMENT 1"
Legal Description of Large Parcel
Parcel "E" according to Plat of Survey filed November 25, 2013 as Doc. No. 2014-10886, being
a part of Lot 2, Country Club Business Center Third Addition to Waterloo, Black Hawk County,
Iowa.
AMENDED CERTIFICATION OF ASSESSOR
In acknowledgment that the project covered by the Minimum Assessment Agreement filed
as part of Doc. No. 2009-8430 is being split into two separate parcels and two projects, the
undersigned certifies that the actual value assigned to the land and building, which is a
completed improvement located at 815 Tower Park Drive, Waterloo, is not less than One Million
Three Hundred Sixty Thousand Three Hundred Twenty Dollars ($1,360,320) in the aggregate,
which shall be in effect until termination of said Minimum Assessment Agreement. Said value
represents the proportionate value of the minimum assessment for completed improvements
initially certified to in connection with said Minimum Assessment Agreement.
Assessor for Black Hawk County, Iowa
Date
STATE OF IOWA )
) ss.
COUNTY OF BLACK HAWK )
Subscribed and sworn to before me on , by Tami McFarland as
Assessor for Black Hawk County, Iowa.
Notary Public