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Home My WebLink AboutDeer Creek Development, LLC - Fourth Amendment to Dev Agmnt - 2/12/2018 f l a Prepared by and return to: Michael D.Youngblut,315 51"St.,P.O.Box 603,Hudson,1A 50643;(319)988-3011 FOURTH AMENDMENT TO DEVELOPMENT AGREEMENT This Fourth Amendment to Development Agreement(the'*Four(h Amendment")is entered into as of Februaryj_42018,by and between the City of Waterloo,IA("City")and Deer Creek Development,LLC("Company"). RECITALS A. Company and City are parties to a certain Development Agreement entered into as of October 13,2006(the"Agreement").The Agreement provided for certain grants to be made by City to Company from specific tax revenues generated by the Property in connection with specified development activities.The Agreement was previously amended by an Amendment to Development Agreement entered into as of July 7,2008 (the"First Amendment"),a Second Amendment to Development Agreement entered into I as of March 14,2011 (the"Second Amendment"),and a Third Amendment to Development Agreement entered into as of August 15,2016(the"Third Amendment"). h B. The parties desire to further amend the Agreement on the terms set forth herein in order to revise the amount of grants to be paid. 1 NOW,THEREFORE,in consideration of the mutual promises set forth herein,the parties hereby agree to amend the Agreement as follows: k 1. The Agreement is hereby amended to strike Section 3 in its entirety and to add a new Section 3 as follows: 643. Grants to Company.As an inducement for Company to make the Street Improvements in connection with development of the Property,the City agrees to make grants to Company as follows: A. City shall pay Company the greater of(i)the sum of$200,000.00 or(ii) the amount due under paragraph 3.13 or 3.0 below,as applicable,beginning in the fiscal year ending in 2019 and continuing in each fiscal year thereafter until City has paid Company all sums payable under this Agreement. 1 B. This paragraph sets forth the default method for calculating grant payments when a party making improvements on the Property(a"Developer")has a separate development agreement with the City.City shall pay to Company a semi-annual grant equal to 100%of the property taxes collected by the City(excluding non-T(F Collections as defined in paragraph 3.14C.2 below)from a Developer pursuant to a separate development agreement with the City,reduced by any and all tax rebates that the City is required to pay to the Developer pursuant to the terms of any development agreement with such Developer.For purposes of illustration only,if an agreement between City and Developer provides for rebatement of 50%of qualifying property taxes for a period of five years,then company would receive a grant equal to the remaining 50%of qualifying property taxes in each year of such period.No grant with respect to such Developer's project shall be made to Company before a property tax rebate is first paid to the Developer.At the end of the Developer's tax rebatement period,City will grant to Company 100%of property tax rebates allowable until Company has been repaid pursuant to paragraph IF below.For purposes of this paragraph,the term "Developer"may include Company with respect to improvements made on the Properly other than the improvements that are the subject of this Agreement. C. This paragraph sets forth the default method for calculating grant payments that are not within the scope of paragraph 3.13 above.With respect to any taxable improvements("Non-Qualifying Improvements")constructed on the Property that are not subject to a separate development agreement between the City and the owner-builder of the Non-Qualifying Improvements,City shall pay to Company a semi- annual grant equal to 100%(with the exceptions noted below)of the property tax capable of rebatement,if not for the non-qualifying character of the improvements, starting in"Year One"and continuing thereafter until Company has been repaid pursuant to paragraph 3.F below.For purposes of illustration,a"Non-Qualifying hnprovement" means,generally,an improvement of a type that is not eligible for property tax rebates or similar incentives,such as improvements for a retail business. 1. "Year One"shall be the first year for which the assessment is based upon the partial or completed value of the Non-Quatifying Improvements,but not a prior year for which the assessment is based solely upon the value of the land. 2. The above-described rebate program is not applicable to any special assessment levy,debt service levy,or any other levy that is exempted from treatment as tax increment financing under the provisions of applicable law(collectively,"Non-TIF Collections"). D. Rebates are payable in respect to a given year only to the extent that general property taxes that are due and owing for such year have actually been paid. E. City will pay Company all sums payable under this Agreement in equal semi-annual installments on or before November I and the following May 1 of each fiscal year. F. Notwithstanding anything to the contrary in this Section 3, in no event will the cumulative amount of grants payable by City to Company exceed the total of 2 i Street Improvement costs incurred by Company,as documented to City's reasonable satisfaction,plus interest on such costs,at a rate equal to the prime rate plus 1.5%per annum determined on the date of this Fourth Amendment,adjusted annually.Interest shall commence on the date that Company made payment of such costs,and continue until grants paid to Company by City equal the sum of such costs pltts interest. s G. If City fails to make payment of any installment due under this Section 3 within ninety(90)days of it being due and payable,Company shall have the right to declare City to be in default of this Agreement following City's failure to cure the default within an additional sixty(60)days after written notice from Company to City that specifically references this paragraph 3.-FG.In addition to the City officials required to be notified under paragraph 6(a),Company shall also deliver a copy of the foregoing notice to City's Chief Financial Officer." 2. Exhibit A to the Agreement,describing the Property,shall be amended to include the following parcels, legally described as: NE SW PART OF NW SE DESC AS FOLLOWS-BEG AT THE NW COR OF THE NW SE TH E 100'ALONG NLY LINE OF NW SE TH S 1069.31'ALONG A LINE PAR WITH WLY LINE OF NW SE TO"1 HE BEG OF A CURVE CONCAVE NELY HAVING A RADI9US OF 686.62'TH SELY 259.10'ALONG SAID CURVE TO A PT ON SLY LINE OF TIDE NW SE WHICH PT IS 148.31'ELY FROM SW COR OF THE NW SE TH W 148.31'TH N 1322.37' TO THE PT OF BEG SEC 6 T 88 R 13;and THAT PART OF SW QTR OF SE QTR SEC 6 T 88 R 13 LYING NWLY OF FORMER CHICAGO GREAT WESTERN RAILROAD ROW DESC IN 566 LD 343 AND LYING NELY OF ROW OF GREYHOUND DR DEDICATED IN 268 MISC 801;and r A PARCEL OF LAND LOC IN PART OF SW 1/4 AND SE 1/4 SEC 6 T 88 R 13.DESC AS FOL:COM AT SW COR OF SAID SEC 6 TH N 1320.50 FT ALONG W LINE OF SW 1/4 OF SAID SEC 6 TH N 89 DEG 42 MIN 54 SEC E 818.14 FT TO PT OF BEG TH N 99 DEG 42 MIN 54 SEC E 2285.88 FT'1 H N 89 DEG 42 MIN 42 SEC E 595.69 FT TO A PT ON NWLY ROW LINE OF CHICAGO GREAT WESTERN RR(ABANDONED)TH S 35 DEG 31 MIN 30 SEC W 850.21 FT ALONG SAID LINE N 72 DEG 26 MIN 10 SEC W 1005.02 F`[TH WLY 637.85 FT ALONG A 7789.65 FT RADIUS CURVE CONCAVE SLY CHORD BEARING N 75 DEG 14 MIN 3 SEC W 637.67 FT TH N 77 DEG 34 MIN 36 SEC W 835.86 FT TH N 6 DEG 19 MIN 51 SEC E 32.15 FT TO PT OF BEG EXC HWYS AND ALSO EXC THAT PART LYING NWLY OF FORMER CHICAGO GREAT WESTERN RAILROAD ROW DESC IN 566 LD 343 AND LYING NELY OF ROW GREYHOUND DR DEDICATED IN 268 MISC 801. 3. Except as modified herein,the Agreement shall continue in full force and effect.The Agreement,as amended by the First Amendment,Second Amendment,'Third Amendment and this Fourth Amendment,shall inure to the benefit of and be binding upon the parties and thein respective successors and assigns.Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Agreement. IN WITNESS WHEREOF,the Parties have executed this Fourth Amendment to Development Agreement by their duly authorized representatives as of the date first set forth above. 3 DEER CREEK DEVELOPMENT,LLC CITY OF WATERLOO,IA By: By: Harold Young It-' esident Quentin Hart,Mayor By: 'p� ,"AL - Kelley Felchle City Clerk 4