HomeMy WebLinkAbout2014-842-9/22/2014 (RECORDED) Doc ID: 006858630001 Type: GEN
Recorded: 09/10/2015 at 04:16:52 PM
4 BlackmHawk7CouuntV Iowa f 1
SANDIE L. SMITH RECORDER
File2016-00004864 ,
Prepared by Carol Nemmers, Deputy City Clerk, City of Waterloo,
7.15 Mulberry Street, Waterloo, IA 50703, (319) 291-4323 .
' RESOLUTION NO. 2014-842
RESOLUTION APPROVING DEVELOPMENT AGREEMENT
WITH HOTEL PRESIDENT PARTNERS, LP AND
DIRECTING EXECUTION OF SAID AGREEMENT BY
MAYOR.
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA,
that the Development Agreement dated September 22, 2014, for the
redevelopment of 500 Sycamore Street, raising the taxable value
from $1, 073, 680 ,to $2, 542, 230, and authorizing tax rebates for a
10 year schedule at 80%, 70%, 60%, 50%, 40%, 40%, 30%, 30%, 20%,
and 200 over the 2013 value of $1; 073, 680, by and between Hotel
President Partners, LP and the City of Waterloo, Iowa, be and the
same is hereby approved, and the- Mayor and City Clerk authorized
to execute the -same in behalf of the City of Waterloo, Iowa.
PASSED AND ADOPTED this 22nd day of September, 2014 .
rnest G. Clark, Mayor
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Doc ID: 006858640010 Type: GEN
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Black Hawk County Iowa
SANDIE L. SMITH RECORDER
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Prepared by Noel Anderson City of Waterloo Planning and Zoning.715 Mulberry St.Waterloo, IA 50703
DEVELOPMENT AGREEMENT
} This Development Agreement (the "Agreement") is made and entered into this
2V\-d day of S lam✓ , 2014, by and between Hotel President Partners,
LP (the "Company"), a d the City of Waterloo, Iowa ("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 renovate and develop a mixed use
commercial building on property located in the Downtown Waterloo,Urban Renewal and
Redevelopment Plan, generally described as 500 Sycamore Street or Parcel Number
8913-25-101-001, legally described on attached Exhibit "A" (the "Property").
NOW, THEREFORE, in consideration of the mutual covenants hereinafter
contained, Company and City agreeas follows:
1. 1. Purchase`of Property. Company is purchasing the real property
described on Exhibit"A" attached hereto (the "Property"). Company shall take all steps
necessary or advisable to complete the purchase of the Property and to obtain
marketable title thereto as promptly as possible.
2. Improvements by Company. Company shall rehabilitate the existing
structure on site, utilizing Iowa Finance Authority Tax Credits. This project will involve
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Page 2
the investment of approximately $3.75 million into building, raising the`taxable value
from $239,850 to $2,542,230. The Improvements shall be constructed in accordance
with all applicable City, state, and federal building codes and shall comply with all
applicable City ordinances. It is contemplated that the actual value of the land and
building upon completion will be approximately $2,542,230.00.
3. Timeliness of Construction. Company must substantially complete
construction of the Improvements by July 1, 2105. If Company has not obtained a
building permit and begun in good faith the construction of the Improvements upon the
Property by December 31, 2014, this Agreement may be cancelled at the sole option of
City. If construction has not begun by December 31, 2014, 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 Improvements. If construction has
commenced by December 31, 2014 and is stopped and/or delayed as a result of an act
of God, war, civil disturbance, court order, labor dispute, fire, or other cause beyond the
'reasonable control of Company, the requirement that construction is to be substantially
completed by December 31, 2014 shall be tolled for a period of time equal to the period
of such stoppage or delay, and thereafter if construction is not completed within the
allowed
4. Property Tax Rebates.. Provided that Company has executed the Minimum
Assessment Agreement as set forth in paragraph 2, City agrees to rebate property
taxes (with the exceptions noted below) as follows:
a. Year One - 90% Rebate
b. Year Two - 80% Rebate
C. Year Three - " 70% Rebate
d. Year Four- 60% Rebate
e. Year Five - 40% Rebate
f. Year Six- 30% Rebate
g. Year Seven - 20% Rebate
h. Year Eight- 20% Rebate
i. Year Nine - 20% Rebate
j. Year Ten - 10% Rebate
for any taxable value over the January 1, 2011 value of $239,850.00. Rebates are
payable1n respect of a given year only to the extent that Company has actually paid
general property taxes due and owing for such year.
The taxable value of the Property as a result of the improvements must be
increased by a minimum of 10% and must increase the annual tax by a minimum of
$500.00. This rebate program is not applicable to any special assessment levy, debt
service levy, or any other. levy (such as the Self-Supported Municipal ,Improvement
District) that is exempted from treatment as tax increment financing under the
provisions of applicable law. The first year in which a rebate may be given ("Year One")
shall,be the first full year for which the assessment is based upon the completed value
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DEVELOPMENT AGREEMENT
Page 3
of the improvements and not a prior year for which the assessment is based solely
upon the value of the land or upon the value of the, land and a partial value of the
improvements, due to partial completion of the improvements or a partial tax year.
5. Minimum Assessment Agreement. Company_acknowledges and
agrees that it'will pay when due all taxes and assessments, general or special, and all
other lawful charges whatsoever levied upon or assessed or placed against the
Property. Company further agrees that, prior to January 1, 2035, it will not seek or
cause a reduction in the taxable valuation for the Property, which shall be fixed for
assessment purposes, below the aggregate amount of$ 2,542,230 ("Minimum Actual
Value"), through:
(i) willful destruction.of the Property,-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 the agreement'attached as Exhibit "B" concurrently with
execution of this Agreement.
6. Representations And Warranties of City. City hereby represents and
warrants as follows:
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A. City is not prohibited from consummating the transaction
contemplated in this Agreement by any law, regulation, agreement, instrument,
restriction, order or judgment.
B Each person who executes and delivers this Agreement and all
documents to be delivered hereunder is and shall be authorized to do so on
behalf of City.
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.
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DEVELOPMENT AGREEMENT
Page 4
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
d, to be delivered to City hereunder is and shall be authorized to do so on behalf of
Company.
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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 or parties to be bound or by the duly
authorized representative of same, 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.
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 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.
11. Binding Effect. This Agreement shall be binding and shall inure to the
benefit of the parties and their respective successors, assigns, legal representatives,
and future owners of the Property.
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 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.
14. Time of Essence. Time is of the-essence of this Agreement.
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DEVELOPMENT AGREEMENT
Page 5
IN WITNESS WHEREOF, the parties have executed. this Development..
Agreement as of the date and year written above.
CITY OF WATERLOO, IOWA Hotel President Partners, LP
By: By:
Ernest G. Clark, Mayor
Attest: By:
Suzy Schares, City Clerk
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EXHIBIT "A"
Legal Description of Improved Property.
Original Plat Waterloo East Northwesterly 60 feet of Lot 2 Block 4 Northwesterly
60 feet Lot 3 Block 4, all; in the City of Waterloo, Black Hawk County, Iowa.
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EXHIBIT "B"
MINIMUM ASSESSMENT AGREEMENT
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This Minimum Assessment Agreement (the "Ag`reement") is entered into as of
Se0k 6,,- -Zz 2014, by and among the CITY OF WATERLOO, IOWA,
("City"),-HOTEL PRESIDENT PARTNERS, LP, ("Company"), and the COUNTY
ASSESSOR of the City of Waterloo, Iowa ("Assessor").
WITNESSETH:
WHEREAS, on or before the date hereof the City and Company have entered
into a Development Agreement (the "Development Agreement") regarding certain real
property located in the City; and
WHEREAS, it is contemplated that pursuant to the Development Agreement, the
Company will undertake the development of an area (the "Project") within the City and
within the "Downtown Waterloo Urban Renewal and.Redevelopment Plan."
WHEREAS, pursuant to Iowa Code section 403.6(1997), as amended, the City
and the Company desire to establish a minimum actual value for the land and building
thereon pursuant to the Development 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 (the "Improvements") which it is contemplated will
be erected as a part of the development;
NOW, THEREFORE, the parties to this 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 Improvements by the
Company on the property described in Exhibit "A" attached hereto, the minimum actual
value which shall be fixed for assessment purposes for the land and Improvements
constructed thereon as a part of the Project shall not be,less than $ 2,542,230 y
("Minimum Actual Value") until termination of this Agreement. The parties hereto agree
the construction of the improvements will-be substantially completed on or before July
1, 2015.
2. The Minimum'Actual Value herein established shall be of no further force,
and effect and this Agreement,shall terminate on December 31, 2035 .
Nothing herein shall be deemed to waive the Company's rights under Iowa Code
§ 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.Company seek or cause the reduction of 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 Company to
contest its taxable valuations in full, commencing with the assessment of January 1,
2036 g
v 3. This Agreement shall be promptly recorded by the City with the Recorder
of Black Hawk County, Iowa, the City paying all costs of recording.
4. Neither the preambles nor provisions of this Agreement are intended to, or
shall be construed as, modifying the terms of the Development Agreement between the
City and the Company.
5. This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of the parties.
CITY-OF WATERLOO, IOWA HOTEL PRESIDENT PARTNERS, LP
By: .. By:
Ernest G. Clark, Mayor
Attest: By:
Suzy S ares, City Clerk
STATE OF IOWA )
s
),ss.
COUNTY OF BLACK HAWK )
On this �n day of , 2014, before me, a Notary Public in
and for the State of Iowa, person Ily 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
2
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 corporation by`it and by them voluntarily executed.
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SHEI„11..E L w'1wMAN
COMMISSION"aTIVW WLI q,
• MYcS Notary`Public
STATE OF IOWA )
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COUNTY OF BLACK HAWK )
Subscribed and sworn to before me on %% �' �� ,2.0.1:4 by
44ree- and as of
Hotel President'Partners, LP.
•'""`• TIM AN• • .
COMMISSION NO.TrM8
MyCOMMISS10NpK1311043 Notary Public
�* APRIL ii 20i8
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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
s such land, building and equipment upon completion of the development shall not be
less than two million five hundred forty two thousand two hundred thirty Dollars
($ 2,542,230 ) in the aggregate, until termination of this Minimum Assessment
Agreement pursuant to the terms hereof.
se or Yor Black Hawk County, Iowa
Date
STATE OF IOWA )
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COUNTY OF BLACK HAWKgoo
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Subscribed and sworn to before me on 20}- IU, ;3:O!5 , Eby
Asses— o�Black Hawk County, Iowa.
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