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HomeMy WebLinkAbout6 Comm Properties Development Agmnt - 7.13.2020Preparer Information: Christopher S. Wendland, PO Box 596, Waterloo, Iowa 50704 (319) 234.5701 Name Address City Phone SPACE ABOVE THIS LINE FOR RECORDER AMENDMENT TO DEVELOPMENT AGREEMENT AND AMENDMENT TO MINIMUM ASSESSMENT AGREEMENT This Amendment to Development Agreement and Amendment to Minimum Assessment Agreement (the "Amendment") is entered into as of July 13 2020 by and among Dolly James 2, LLC (the "Company"), Hi Yield, LLC (the "Affiliate"), 6 COMM Properties, LLC (the "Transferee") and the City of Waterloo, Iowa (the "City"). RECITALS A. Company, Affiliate and City are parties to that certain Development Agreement dated September 8, 2015 (the "DA"), concerning the development of land (the "Property") described on Exhibit "A" and adjoining land (the "Affiliate Property") described on Exhibit "B" to the DA. Company, Affiliate and City are also parties to that certain Minimum Assessment Agreement (the "MAA") pertaining to the Property and the Affiliate Property, dated as of the same date. The DA and MAA have been filed in the land records of Black Hawk County, Iowa, as Doc. No. 2016-9121. The parties desire to include additional land (the "New Property") within the Project area and to otherwise amend the DA and the MAA to modify the terms thereof as set forth in this Amendment. NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1. Within 60 days after approval of this Amendment by the City Council of the City of Waterloo, Company and Affiliate will deed the Property and the Affiliated Property to Transferee. Effective upon delivery to Transferee of a property executed deed, the DA and the MAA shall be automatically amended to remove Company and Affiliated from the Agreement and to substitute Transferee in place thereof. Thereafter, Company and Affiliate shall have no further duties under the Agreement, and Page 2 Transferee shall be solely responsible to discharge all duties of Company and Affiliate thereunder, as well as any additional duties provided for in this Amendment. 2. Exhibit "A" of the DA and of the MAA is hereby stricken and the attached Exhibit "A" is substituted in place thereof. The effect of such amendment is to add the New Property to the Property already described in Exhibit "A". The parties agree that all references in the DA and the MAA to the Property shall include the New Property. 3. Following City council approval of this Amendment and of the sale and conveyance of the New Property to Transferee for the sum of $1.00, City will convey the New Property to Transferee on the same terms as are set forth in Section 1 of the DA, reserving an easement in favor of City and the public for use of an existing recreational trail that is located over and upon the New Property and for rights of reasonable access to said trail for purposes of inspection, maintenance, repair, replacement and removal, and further reserving an easement for any existing public utilities located in or beneath the vacated alley. If said recreational trail is damaged by Transferee, its employees, contractors or agents, during the Project, then Transferee agrees that it shall promptly repair such damage. If Transferee fails to do so within 60 days after written demand by City, City may undertake such repair and charge the cost thereof to Transferee, with interest to accrue at the rate of 6% per annum, compounded monthly, on any balance of such cost and expense that is not remitted to City within 30 days after billing. 4. Section 3 of the DA is amended to strike the last sentence of the first paragraph thereof and to substitute the following new sentence in its place: "Company and Affiliate or Transferee must obtain a building permit and begin construction by August 31, 2020 and substantially complete construction within fourteen (14) months thereafter." 5. The DA is hereby amended to strike the first sentence from Section 9 and to substitute the following new sentence in its place: "Provided that Company and Affiliate or Transferee have completed the Improvements as set forth herein and have executed the Minimum Assessment Agreement as set forth in Section 8, City agrees to rebate property tax (with the exceptions noted below) as follows: Year One through Year Twenty 75% rebate each year for any taxable value over the January 1, 2019 value of the Property, the Affiliate Property, and the New Property." 6. Section 1 of the MAA is amended to strike "December 31, 2017" therefrom and to substitute "October 31, 2021" in place thereof. 7. Section 2 of the MAA is amended to strike "December 31, 2047" therefrom and to substitute "December 31, 2051" in place thereof. Page 3 8. Except as modified herein, the DA and MAA shall continue unmodified in full force and effect, including personal guaranties. Terms in this Amendment that are capitalized but not defined will have the same meanings herein that are ascribed to them in the DA or MAA, as applicable. The DA, MAA, and this Amendment shall inure to the benefit of and be binding upon the parties and their respective successors and assigns. IN WITNESS WHEREOF, the parties have executed this Amendment to Development Agreement and Amendment to Minimum Assessment Agreement by their duly authorized representatives as of the date first set forth above. CITY OF WATERLOO, IOWA DOLLY JAMES 2, LLC HI YIELD, LLC By: Quentin Hart By: Quentin M. Hart, Mayor Brent Dahlstrom, Manager Attest: Kew Few& 6 COMM PROPERTIES, LLC Kelley Felchle, City Clerk B • Brent Dahlstrom, Manager EXHIBIT "A" Legal Description of Property (including New Property) Lot No. 70 in Fractional Block No. 14, Original Plat on the West Side of the Cedar River, City of Waterloo, Black Hawk County, Iowa, except that part thereof lying Southeasterly of the center line of the party wall erected between Lot Nos. 69 and 70. AND Part of Lot Nos. 31 and 32 in Fractional Block No. 14, Original Plat on the West Side of the Cedar River, City of Waterloo, Black Hawk County, Iowa, commencing at the most Westerly corner of Lot No. 31, thence Northeasterly along the Southeasterly right of way line of West Sixth Street a distance of 43.7 feet; thence Southeasterly to a point on a line that is parallel to and 2 feet Northwesterly of the Southeasterly line of Lot No. 32, which point is 55 feet Northeasterly of the Southwesterly line of Lot No. 32; thence Southeasterly along said parallel line 55 feet to the Southwesterly line of Lot No. 32; thence Northwesterly along the Southwesterly line of Lots 32 and 31 to the point of beginning. AND That part of the vacated alley in Fractional Block No. 14, Original Plat on the West Side of the Cedar River, City of Waterloo, Black Hawk County, Iowa, that lies Northwesterly of the Southwesterly extension of a line that is parallel to and 2 feet Northwesterly of the Southeasterly line of Lot No. 32 in said Fractional Block No. 14.