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HomeMy WebLinkAboutSunnyside South Addition LLC - Proj Dev Agmnt-9/11/2017PROJECT DEVELOPMENT AGREEMENT This Project Development Agreement (the "Agreement") is entered into as of v31-- 1t , 2017, by and between Sunnyside South Addition, LLC ("Company"), and the City of Waterloo, Iowa, ("City"). RECITALS A. City considers economic development within the City a benefit to the community and is willing for the overall good and welfare of the community to provide financial incentives so as to encourage that goal. B. Company has financed and constructed a relocation of a portion of West San Marnan Drive between Ansborough Avenue and W. 4`" Street and developed lots for construction of single-family dwellings (the "Improvements") in the project area. C. Company took the action referred to in Recital B pursuant to a Project Development Agreement between these same parties date January 7, 2013 as amended February 11, 2013, and April 22, 2013, and recorded on May 21, 2013 as Document 2013-00022736 (collectively, the "2013 Agreement"), and City has received significant and substantial benefit as a' result of that action. The Company took the action referred to in Recital B after the City vacated and deeded the property in question to it pursuant to the terms of the 2013 Agreement. D. Subsequent to the actions of Company and City described above, the Iowa Supreme Court entered a ruling on May 30, 2014, which enjoined the City from selling or transferring the subject property without first following the procedures prescribed in Iowa Code § 306.23. E. The City has now complied with the procedures prescribed in Iowa Code § 306.23 and both parties wish to confirm the terms of the 2013 Agreement and authorize and undertake the actions necessary to carry out the intent of the 2013 Agreement so that Company can complete the Project. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Affirmation of 2013 Agreement and Subdivision Plat. City and Company do herby reaffirm and ratify the 2013 Agreement and all of its terms and conditions, except as modified by this Agreement. City does further affirm all actions taken by Company to plat Sunnyside South Addition, acknowledges that in taking such actions Company was, to the extend necessary, acting as agent for City to carry out the intents and purposes of the 2013 Agreement, and ratifies all such actions as though City had itself undertaken the platting of Sunnyside South Addition. 2. Covenants of City. a. City agrees to convey the property identified as Lots 1 through 24 of Sunnyside South Addition (the "Property" to Company by special warranty deed for the price of $1.00. The Property shall be conveyed to Sunnyside South Addition, LLC no later than October 1, 2017. City shall have no duty to provide an abstract of title or other evidence of title, but Company may procure whatever evidence of title it desires at its own cost; provided, however, that City shall cooperate with any reasonable request by Company, and shall approve and execute such reasonable documents, as Company may request to obtain merchantable title, free and clear of all encumbrances arising by or through City 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 estate 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 or other applicable law. b: City has cooperated with the Company in developing a street design that integrates with a reconnection to the remainder of existing West San Marnan;Drive at each end of the new street. The design considers the likelihood of future construction of an extension of San Marnan Drive to the south in connection with future land development. Company shall have the right to select a name tfor the new street, subject to approval by the City. c City agrees to provide reasonable assistance to Company in connect)on with any applications for rezoning of the Property or portions thereof for purposes consistent with the Project and the eventual development of the Property for residential subdivision. 3. Covenants of Company. Upon receipt of the special warranty deed referenced above, clear title, and successful resolution of all legal challenges to this project (including, but not limited to, resolution of the pending lawsuit entitled Tunis E. Den Hartog, Shirley Ann Schweertman, Leonard G. Lybbert, James Edward Schuman, Michael J. Mac, Mary Ellen Molinaro, William James Robert, and Mark D. Fisher, Plaintiffs, vs. City of Waterloo, Defendant and Sunnyside South Addition, LLC, Intervenor Plaintiff vs. City of Waterloo, Intervenor Defendant, Black Hawk County Case No. EQCV117886), Company agrees to release, acquit and forever discharge the City from any claims it may now have or ever claim to have by reason of the City's failure to perform or delay in performance pursuant to the 2013 Agreement. 2 b Company agrees to indemnify and hold City harmless from and against any and all claims, demands, causes of action, costs, expenses, or liabilities of any type or nature, including but not limited to reasonable attorneys' fees, arising from or in connection with Company's actions in platting Sunnyside South Addition and in undertaking the Improvements. 4. 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. b City has now complied with the provisions of Iowa Code § 306. 5. Representations and Warranties of Company. Company hereby represents and warrants as follows: a It is not prohibited from consummating the transaction contemplated in this Agreement by any law, regulation, agreement, instrument, restriction, order or judgment. b. It is duly organized, validly existing, and in good standing under the laws of the state of Iowa. c It 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 for it and all documents to be delivered to City hereunder is and shall be authorized to do so on its behalf. 6. 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. 7. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person, by overnight air courier 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 number2319-291-4571, Attention: Mayor, with copies to the City Attorney and Community Planning and Development Director. 3 (b) if to Company, to Sunnyside South Addition, LLC, 315 E. 51h Street, Waterloo, IA 50703, Attention: James E. Walsh, Jr. Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) three (3) business days following the date of deposit if mailed by United States registered or certified mail, postage prepaid, or (iii) when transmitted by facsimile so long as the sender obtains written electronic confirmation from the sending facsimile machine that such transmission was successful. 8. 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 of parties to be bound or by its duly authorized representative, and specifying with particularity the extend 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. 9. 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. 10. captions. All captions, headings or titles in the paragraphs or sections of this Agreement are inserted only as a matter of convenience and or/or reference, and they shall in no way be construed as limited, extending, or describing either the scope or intent of this' Agreement or of any provisions hereof. Capitalized terms not defined herein shall have the meaning ascribed to them in the 2013 Agreement. 11. Binding Effect. This Agreement shall be binding and shall inure to the benefit of the parties and their respective successors, assigns, and legal representatives. 12. 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. 13. Entire Agreement. This Agreement, together with the 2013 Agreement, constitutes the entire agreement of the parties and supercedes all prior to contemporaneous negotiations, discussions, understandings, or agreements, whether oral or written, with respect to the subject matter hereof. 14. Time of Essence. Time is of the essence of this Agreement. 4 IN WITNESS WHEREOF, the parties have executed this Project Development Agreement as of the date first set forth above. CITY OF WATERLOO, IOWA By: Quentin Hart, Mayor AL/ I 1 i Attest: �.�..AA.4 1!I AJ Kelley FeIle, City Clerk SUNNYSIDE S4UT ADDITIO, LLC James E. W sh, Jr., Man 5