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HomeMy WebLinkAboutFarmers State Bank-Development Agreement-6/21/20101111111111111111101111111111111111111111111111111111111111111111111111111111111 Doc ID 004696590010 Type GEN Kind AGREEMENT Recorded: 01/27/2012 at 03:46:46 PM Fee Amt: $52.00 Page 1 of 10 Black Hawk County Iowa JUDITH A MCCARTHY RECORDER File2012-00014002 Prepared by Noel Anderson, City of Waterloo Planning & Zoning, Waterloo, IA, 50703, (319) 291-4366 DEVELOPMENT AGREEMENT This Agreement is made and entered into this day of O1r1Q_ , 2010, by and between Farmers State Bank (the "Companyand 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 develop an additional building on property (the "Property") located in the Downtown Waterloo Urban Renewal Plan Area, which Property is legally described on attached Exhibit "A". NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, Company and City agree as follows: 1. Sale of Property. The City shall convey the Property to Company for the sum of $1.00. Company shall construct a one-story bank building consisting of approximately 3,200 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 $550,000.00. 2. Construction; Reversion. The parties agree that Company's commitment to construct the Improvements in timely fashion constitutes a material inducement for the City to convey the Property to Company and that without said commitment City would not have conveyed the Property. Company must obtain a building permit and begin construction within four (4) months from the date the Property is deeded to it. If, after the expiration of four (4) months from the date of the executed deed, Company has not begun in good faith the construction of the building described above upon the Property, the title to the Property will revert to City. If construction has not begun at the end said four-month period, 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. If development has commenced within the four-month period and is stopped and/or delayed, Company shall have twenty-four (24) months from the date of substantial stoppage or delay to resume construction or the title to the Property shall revert back to the City. In any event that title to the Property shall revert to the City, Company agrees to promptly execute all documents or take such other actions as the City may reasonably request to effectuate said reversion. 3. Minimum Assessment Agreement. Company acknowledges and agrees that it will pay when due all taxes and assessments, general or special, and all other charges whatsoever levied upon or assessed or placed against the Property. Company further agrees that prior to the date set forth in Section 2 of Exhibit "B" it will not seek or cause a reduction in the taxable valuation for the Property, which shall be fixed for assessment purposes, below the amount of $550,000 ("Minimum Actual Value"), through: (i) willful destruction of the Property, the Improvements, or any part of either; (ii) 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 "B" at the closing. 4. Deed. The City shall convey or cause to be conveyed fee simple title to the 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. Tax incentives. The Company will apply for the 3 -year schedule of the Consolidated Urban Revitalization Area to meet the requirement of the Sale of Property Policy. 6. Representations and Warranties of City. City hereby represents and warrants as follows: A. City is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. 7. Representations and Warranties of Company. Company hereby represents and warrants as follows: A. Company is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. B. Company is duly organized, validly existing, and in good standing under the laws of the state of its organization and is duly qualified and in good standing under the laws of the State of Iowa. C. Company has full right, title, and authority to execute and perform this Agreement and to consummate all of the transactions contemplated herein, and each person who executes and delivers this Agreement and all documents to be delivered to City hereunder is and shall be authorized to do so on behalf of Company. 8. No Joint Venture. Nothing in this Agreement shall, or shall be deemed or construed to, create or constitute any joint venture, partnership, agency, employment, or any other relationship between the City and Company nor to create any liability for one party with respect to the liabilities or obligations of the other party or any other person. 9. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person, by overnight delivery service, by United States registered or certified mail, postage prepaid, or by facsimile (with an additional copy delivered by one of the foregoing means), and addressed: (a) if to City, at 715 Mulberry Street, Waterloo, Iowa 50703, facsimile number 319-291-4571, Attention: Mayor, with copies to the City Attorney and COMMUNITY Planning & Development Director. (b) if to Company, to Farmers State Bank, 1009 Peoples Square, Waterloo, Iowa 50702, facsimile number 319-287-3966, Attention: Ryan Risetter. Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) one (1) business day following deposit for overnight delivery to an overnight 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. 10. Amendment, Modification, and 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. 11. Severability. 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. 12. Captions. 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. 13. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, and legal representatives. 14. 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. 15. Entire Agreement. This Agreement, together with the Minimum Assessment Agreement attached hereto as Exhibit "B", 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 subject matter hereof. 16. Time of Essence. Time is of the essence of this Agreement. IN WITNESS WHEREOF, the parties have executed this Development Agreement the date first written above. FARMERS STATE BANK CITY OF eTERLOO, IOWA By: i/k hest G. Clark, Mayor Suzy Shires, City Clerk EXHIBIT "A" Legal Description of the Property ORIGINAL PLAT WATERLOO WEST SE 20 FT LOT 8, LOT 9, AND LOT 10, BLOCK 9, ALL IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, IOWA. Printable Map Output Page 1 of 1 Black Hawk County Parcel Map Parcel ID: 8913-26-278-014 Deed Holder: FARMERS STATE BANK Parcel Address: 224 W 6TH ST, WATERLOO, IA 50703 t; ,��.'� .fix • „. . / _ ...;_. . � ,�r�y •'.'yam` � =1 0 ,� i _ tB.. mr , sF ,. 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Black Hawk County, Iowa 316 East 5th Street Waterloo, Iowa 50703-4774 Phone: (319) 833-3002 Fax: (319) 833-3070 E-mail: auditorco.black-hawk.ia.us.orq Map Disclaimer. This map does not represent a survey. No liability is assumed for the accuracy of the data delineated herein, either expressed or implied by Black Hawk County, the Black Hawk County Assessor or their employees. This map is compiled from official records, including plats, surveys, recorded deeds, and contracts, and only contains information required for local govemment purposes. See the recorded documents for more detailed legal information. http://www2.co.black-hawk.ia.us/servlet/com. esri.esrimap.Esrimap?ServiceName=bhov&Cl... 6/2/2011 EXHIBIT "B" MINIMUM ASSESSMENT AGREEMENT TJ -IIS MINIMUM ASSESSMENT AGREEMENT, dated as of this 0 day of 2010, by and among the City of Waterloo, Iowa ("City"), Farmers State Bank, ("Developer"), and the COUNTY ASSESSOR of the City of Waterloo, Iowa ("Assessor"). WITNESSETH: WHEREAS, on or before the date hereof the City and Developer have entered into a Development Agreement (the "Agreement") regarding certain real property located in the City; and WHEREAS, it is contemplated that pursuant to said Agreement, the Developer will undertake the development of an area ("Project") within the City and within the "Downtown Waterloo Urban Renewal Plan Area." WHEREAS, pursuant to Iowa Code section 403.6, as amended, the City and the Developer desire to establish a minimum actual value for the land and improvements constructed thereon pursuant to the Agreement and applicable only to the development, which shall be effective upon substantial completion of the development, and from then until this Agreement is terminated pursuant to the terms herein and which is intended to reflect the minimum actual value of the land and building as to the development only; and WHEREAS, the City and the Assessor have reviewed the preliminary plans and specifications for the improvements which it is contemplated will be erected as a part of the development; NOW, THEREFORE, the parties to this Minimum Assessment Agreement, in consideration of the promises, covenants and agreements made by each other, do hereby agree as follows: 1. Upon substantial completion of construction of the above -referenced improvements by the Developer on the property described in Exhibit "A" attached hereto, the minimum actual taxable value which shall be fixed for assessment purposes for the land and improvements to be constructed thereon by the Developer as a part of the development shall not be Tess than $550,000 ("Minimum Actual Value") until termination of this Minimum Assessment Agreement. The parties hereto agree construction of the improvements will be substantially completed on or before September 1, 2011. 2. The Minimum Actual Value herein established shall be of no further force and effect and this Minimum Assessment Agreement shall terminate on December 31, 2017. Nothing herein shall be deemed to waive the Developer's rights under Iowa Code 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 to reduce 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, 2018. 3. This Minimum Assessment Agreement shall be promptly recorded by the City with the Recorder of Black Hawk County, Iowa. The City shall pay all costs of recording. 4. Neither the preambles nor provisions of this Minimum Assessment Agreement are intended to, or shall be construed as, modifying the terms of the Agreement between the City and the Developer. 5. This Minimum Assessment Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. IN WITNESS WHEREOF, the parties have entered this Minimum Assessment Agreement as of the date first written above. Attest: By: Suzy Sckhakes, City Clerk Attest: By: Title: STATE OF IOWA CITY OF WATERLOO, IOWA By: Ernest G. C ark, Mayor FARMER _ {ATE BANK By. ) ss. COUNTY OF BLACK HAWK ) k On this 49 day ofv , 2010 before me, a Notary Public in and for the State of Iowa, personally appeared Ernest G. Clark and Suzy Schares, to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Waterloo, Iowa, a municipal corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said municipal corporation, and that said instrument was signed and sealed on behalf of said municipal corporation by authority and resolution of its City Council, and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said municipal corpor by it and by them voluntarily executed. r STATE OF..‘444- COUNTY OF gtoek blermAL) ss. On this Re day of 41 undrsigned, a Notary Public in and for the sai county an state, personally appeared ' L. roe__ and °41,11 5. Z , to me personallknown, who being by me duly sworn, cid say that they are the 0,C0 and Jt' , respectively, of the corporation executing the within and foregoing instrument to which this is attached; that said instrument was signed on behalf of the corporation by authority of ' s B and of Directors; and that 1 and y.44 S'' , as officers, acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the corporation, by it and by them voluntarily executed. Nota Public , 2010, before me, the JAMIE STIEFEL Cam Number 747193 My E�tres CERTIFICATION OF ASSESSOR 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 Tess than Five Hundred Fifty Thousand Dollars ($550,000.00) in the aggregate, until termination of this Minimum Assessment Agreement pursuant to the terms hereof. '17, - Ffl I � Assessor for Black Hawk County, Iowa Date STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) SuJscribed and sworn to before m ;pn / --02 7 20.E b y , Assessor for Black Hawk County, Iowa. Notary Public DEBORAH L. BOECKMANN MY COMMISSION NO. 185788 MY C . ,, I ION EXPIRES