HomeMy WebLinkAboutCrystal Distribution Services, Inc-10/1/2012Please return this copy to:
City Clerk & Finance Department
715 Mulberry Street
Waterloo, IA 50703
Prepared by Noel Anderson, City of Waterloo, City Hall, 715 Mulberry Street, Waterloo, Iowa 50703 phone: 319-291-
4366, facsimile 319-291-4262
SECOND AMENDMENT TO DEVELOPMENT AGREEMENT
This Second Amendment to Development Agreement (the "Amendment") is entered into
as of 00-6 , 2012, by and between the City of Waterloo, Iowa ("City") and Crystal
Distribution Services, Inc. ("Company").
RECITALS
A. Company is a party with City to that certain Development Agreement dated
February 2006 (the "Agreement") concerning the development of land as described
in the Agreement.
B. Company is party with City to a First Amendment to Development Agreement,
which made some changes to original agreement.
C. In recovering from 2008 flood event, economic changes in the business climate,
Company is still working to expand despite losing over 100,000 sq. ft. of usable
warehouse space.
D. To work with Company to facilitate expansion, it is necessary for City to amend
original agreement with this 2nd amendment.
NOW, THEREFORE, in consideration of the mutual promises set forth herein, the
parties hereby agree as follows:
1. The square footage of the expansion is changed in Section 1 from 60,000 sq. ft.
to 11,000 sq. ft.
2. The approximate construction costs of Section 1 are changed from $4,000,000 to
$2,000,000.
3. The Minimum Assessment Agreement in Section 2 is changed from $6,489,690
to $3,442,280.
4. The tax rebate schedule in Section 3 is changed to 10 years at 50% tax rebates,
from the previously changed 10 years at 70% for the larger project.
5. The base value in Section 3, from which rebates are based, is changed from
$3,489,690 to $2,892,280.
6. The timeline outlined in Section 4 is changed to begin construction by December
31, 2012 and be completed by June 30, 2013.
7. The requirements of penalty in Section 4 for not completing the project on time
shall be changed from a payment method to reversion of parcel number 8913-25-
261-017, if another expansion project of at least $1,000,000 is constructed on the
overall site within 5 years of approval of this agreement. Said reversion shall
include necessary, but not unreasonable, easements of access from Crystal, and
said land shall be deeded by Special Warranty Deed back to City free and clear
of liens, encumbrances, mortgages, etc.
8. The minimum assessed value referenced in Exhibit "B", the Minimum
Assessment Agreement, is changed to $3,442,280.
IN WITNESS WHEREOF, the parties have executed this Second Amendment to
Developmental Agreement by their duly authorized representatives as of the date first set forth
above.
CRYSTAL DISTRIBUTION CITY OF WATERLOO, IOWA
SERVICES, INC.
By: By: ,,1-0
Thomas J. Poe, President Ernest G. Clark, Mayor
J �
By: A
Suzy Schreres, City Clerk