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HomeMy WebLinkAboutDepartment of Economic Development - Three Kids and a Dog, LLC - Agreement No. 06-HEZ-002 - 11/7/2005 IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT HOUSING ENTERPRISE ZONE PROGRAM AGREEMENT EZ AGREEMENT NUMBER: 06-HEZ-002 APPLICATION APPROVAL DATE: July 9, 2005 AGREEMENT EFFECTIVE DATE: July 9,2005 ENTERPRISE ZONE NAME: Black Hawk County,Waterloo EZ-4 ZONE CERTIFICATION DATE: February 18, 1999 ZONE EXPIRATION DATE: February 18, 2009 THIS ENTERPRISE ZONE AGREEMENT is made by and among the Iowa Department of Economic Development, 200 East Grand Avenue, Des Moines, Iowa 50309 ("Department"or"IDED"), City of Waterloo, 715 Mulberry St,Waterloo, IA 50703, ("Community')and Three Kids and a Dog, LLC, 2731 Jasmine Dr., Waterloo, IA 50701, ("Housing Business"). WHEREAS, the purpose of the Enterprise Zone Program is to promote new economic development in economically distressed areas; and WHEREAS, the Community has designated and the Department has certified the Enterprise Zone identified above; and WHEREAS, eligible housing businesses with projects located in a certified Enterprise Zone are authorized under this program to receive certain tax incentives and assistance; and WHEREAS, the Enterprise Zone Commission responsible for the above-identified Zone has recommended approval and the Department has found the Housing Business' application to be consistent with the Act's eligibility requirements; and NOW THEREFORE, in consideration of the mutual promises contained in this Agreement and other good and valuable consideration, it is agreed as follows: ARTICLE I DEFINITIONS As used in this Agreement, the following terms shall apply: 1.1 "Act' means 2005 Iowa Code sections 15E.191 through 15E.196 as amended by 2005 Iowa Acts, House File 857 and House File 882. 1.2 "Administrative Rules"means 261 Iowa Administrative Code, chapter 59. 1.3 "Agreement Effective Date' means the date this Agreement becomes effective and the Housing Business is authorized to receive program benefits. 1.4 "Agreement Expiration Date" means the date this Agreement ceases to be in force and effect. This Agreement shall remain in effect until IDED receives written verification that all 4 units have been certified for occupancy. 1.5 "Application Approval Date" means the date, as identified above, on which the Director or Director's designee of the IDED approved the Housing Business' Enterprise Zone application. 1.6 "Board" means the IDED Board. HEZ Format revised 7/2002 EZ Agreement#06-HEZ-002 Page 2 1.7 "Commission"or"Enterprise Zone Commission" means the Enterprise Zone commission established by the Community responsible for the certified Enterprise Zone. 1.8 "DRF"means the Iowa Department of Revenue and Finance. 1.9 "Enterprise Zone" means the site within the Community certified by the Board for the purpose of attracting private investment. 1.10 "Proiect"means the activity, or set of activities, described in this Agreement and the Enterprise Zone application approved by IDED. 1.11 "Project Completion"means the date of completion of construction or if this Project involves rehabilitation, the date all improvements included in the Project are completed. ARTICLE II ENTERPRISE ZONE BENEFITS 2.1 Benefits. The following Enterprise Zone benefits authorized by the Act and IDED administrative rules are available to the Housing Business under this Agreement: (a) Investment Tax Credit The Housing Business may claim an investment tax credit up to a maximum of 10 percent of the new investment which is directly related to the building or rehabilitating of the units stated in Article IV, Section 4.1 of this Agreement. New investment which is directly related to the building or rehabilitating units includes the following costs: land, surveying, architectural services, building permits, inspections, interest on the construction loan, building materials, roofing, plumbing materials, electrical materials, amounts paid to subcontractors for labor and materials provided, concrete, labor, landscaping, appliances normally provided with a new home, heating and cooling equipment, millwork, drywall and drywall materials, nails, bolts, screws, and floor coverings. New investment does not include the machinery, equipment, hand or power tools necessary to build or rehabilitate homes. The new investment that may be used to compute the tax credit shall not exceed the new investment used for the first one hundred forty thousand dollars of value for each unit. In determining the tax credit, new investment financed through federal, state, and local government tax credits, grants, and forgivable loans shall not be included. The tax credit may be used to reduce tax liabilities imposed under Iowa Code chapter 422, Division II, Division III or Division V or under Iowa Code chapter 432. Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs earlier. If the business is a partnership, subchapter S corporation, limited liability company, or estate or trust electing to have the income taxed directly to the individual, an individual may claim the tax credit allowed. The amount claimed by the individual shall be based upon the pro-rata share of the individual's earnings of the partnership, subchapter S corporation, limited liability company, or estate or trust. (b) Refund Of Sales Service And Use Taxes Paid To Contractors Or Subcontractors. The Housing Business is eligible for a refund of sales, service and use taxes paid by an eligible business, including an eligible business acting as a contractor or subcontractor as authorized in Iowa Code section 15.331A. (i) The Housing Business may apply for a refund of the sales and use taxes paid under Iowa Code chapters 422 and 423 for gas, electricity, water or sewer utility services, goods, wares, or merchandise, or on services rendered, furnished, or performed to or for a contractor or subcontractor and used in the fulfillment of a written contract relating to the construction or rehabilitation of the units within the Enterprise Zone. (ii) Taxes attributable to intangible property and furniture and furnishings shall not be refunded. Format revised 7/2002 EZ Agreement#06-HEZ-002 Page 3 To receive a refund of the sales, service and use taxes paid to contractors or subcontractors, the Housing Business must, within one year after Project Completion, make an application to the DRF. 2.2 Duration Of Benefits. The Enterprise Zone designation shall remain in effect for ten years following the date of certification. Any state incentives or assistance that may be conferred must be conferred before the designation expires. However, the benefits of the incentive or assistance may continue beyond the expiration of the Enterprise Zone designation. ARTICLE III REPRESENTATIONS AND WARRANTIES OF BUSINESS To induce the Department and the Community to authorize Enterprise Zone benefits referred to in this Agreement, the Housing Business represents, covenants and warrants that: 3.1 Authority, The Housing Business is a corporation duly organized and validly existing under the laws of its state of incorporation and is in good standing, and has complied with all applicable laws of the State of Iowa. The Housing Business is duly authorized and empowered to execute and deliver this Agreement.All action on the Housing Business' part(e.g. where required, appropriate resolution of its Board of Directors)for the execution and delivery of this Agreement, has been effectively taken. 3.2 Business Information. All written financial statements and related materials concerning the Housing Business and the Project provided to the Department and the Community are true and correct in all material respects and completely and accurately represent the subject matter thereof as of the effective date of the statements and related materials, and no material adverse change has occurred since that date. 3.3 Application. The contents of the application the Housing Business submitted to the Department for Enterprise Zone program benefits (Attachment A) is a complete and accurate representation of the Housing Business and the Project as of the date of submission and there has been no material adverse change in the organization, operation, business prospects, fixed properties or key personnel of the Housing Business since the date the Housing Business submitted its application to the Department. 3.4 Claims And Proceedings. There are no actions, lawsuits or proceedings pending or, to the knowledge of the Housing Business, threatened against the Housing Business affecting in any manner whatsoever its rights to execute this Agreement or to otherwise comply with the obligations of the Housing Business contained under this Agreement. There are no actions, lawsuits or proceedings at law or in equity, or before any governmental or administrative authority pending or, to the knowledge of the Housing Business, threatened against the Housing Business or affecting the Housing Business' ability to proceed with the Project. 3.5 Permits. All necessary permits have been issued or will be applied for in a timely manner with reasonable expectation that they will be issued. ARTICLE IV CONDITIONS TO RECEIPT OF ENTERPRISE ZONE BENEFITS The Enterprise Zone Benefits authorized under Article II of this Agreement are available to the Housing Business provided the Housing Business, (and where applicable, the Community)satisfies each of the following conditions: 4.1 Build or Rehabilitate. The Housing Business must build 4 single family units in the Waterloo EZ-4 Enterprise Zone. 4.2 Modest Homes. The single-family homes and dwelling units which are rehabilitated or constructed by the Housing Business shall be modest homes or units, but shall include the necessary amenities. When completed and made available for occupancy, the single-family homes and dwelling units shall meet the United Sates Department of Housing and Urban Development's housing quality standards and local safety standards. Format revised 7/2002 EZ Agreement#06-HEZ-002 Page 4 4.3 Completed within Two Years The Housing Business shall complete its building or rehabilitation within two years from the time the Housing Business begins construction or rehabilitation of the units described in Section 4.1. 4.4 Records And Accounts. The Housing Business shall maintain information, books, records, documents and other evidence concerning the Project, in sufficient detail to permit the Department and the Community to assess compliance with the terms of this Agreement. The Housing Business shall retain the aforementioned records for a period of three (3) years from the Agreement Expiration Date. 4.5 Access To RecordsAnspections The Housing Business shall, upon prior reasonable notice and at any time (during normal business hours), permit the Community and its representatives and the Department, its representatives or the State Auditor to examine, audit and/or copy: (i) any plans and work details pertaining to the Project, (ii) all of the Housing Business'books, records and accounts relating to the Project, and (iii) all other documentation or materials related to this Agreement. The Housing Business shall provide proper facilities for making such examination and/or inspection. Records of the Housing Business furnished to the Department in connection with this Project are subject to the provisions of Iowa Code chapter 22 and administrative rules adopted by the Department concerning public records and requests for confidential treatment of records. 4.6 Notice Of Proceedings. The Housing Business shall promptly notify the Community and IDED of the initiation of any claims, lawsuits, bankruptcy proceedings or other proceedings brought against the Housing Business which would adversely impact the Project. 4.7 Reports: Community Monitoring/Reporting (a) The Housing Business shall prepare, sign and submit the following reports: Report Due Date Annual Certification January 30 The Housing Business shall, for the length of its designation as an Enterprise Zone business, certify annually to the Community and the Department its compliance with the requirements of the Act. The Housing Business shall use the form provided by the Department for its annual certification. Documentation of compliance with the conditions detailed in Article IV shall be included with the annual certification. 4.8 Notice Of Business Changes The Housing Business shall provide prompt advance notice to the Community and the Department of any proposed change in the Housing Business ownership, structure or control which would materially and directly affect the Project. ARTICLE V DEFAULT AND REPAYMENT 5.1 Events Of Default. Enterprise Zone benefits described in Article II are only available to the Housing Business to the extent the Housing Business satisfies the conditions described in Article IV. Any of the following shall constitute an Event of Default under this Agreement: (a) Material Misrepresentation. If at any time any representation, warranty or statement made or furnished to the Department or the Community by, or on behalf of, the Housing Business in connection with this Agreement shall be determined by the Department to be incorrect, false, misleading or erroneous in any material respect when made or furnished. Format revised 7/2002 EZ Agreement#06-HEZ-002 Page 5 (b) Breach Of Agreement. If there is a failure of the Housing Business to comply with any of the covenants, terms or conditions contained in this Agreement. (c) Relocation Or Abandonment. If there is an abandonment of the Project and the Housing Business fails to renew the Project within the Enterprise Zone within 30 days. If the relocation or abandonment is due to a natural disaster(e.g. flood, tornado), the Housing Business shall have 120 days to renew the Project within the Enterprise Zone. (d) Insolvency Or Bankruptcy. If the Housing Business becomes insolvent or bankrupt, or admits in writing its inability to pay its debts as they mature, or makes an assignment for the benefit of creditors, or the Housing Business applies for or consents to the appointment of a trustee or receiver for the Housing Business or for the major part of its property; or if a trustee or receiver is appointed for the Housing Business or for all or a substantial part of the assets of the Housing Business and the order of such appointment is not discharged, vacated or stayed within sixty(60) days after such appointment; or if bankruptcy, reorganization, arrangement, insolvency, or liquidation proceedings or other proceedings for relief under any bankruptcy or similar law or laws for the relief of debtors, are instituted by or against the Housing Business and, if instituted against the Housing Business, is consented to, or, if contested by the Housing Business is not dismissed by the adverse parties or by an order, decree or judgment within sixty(60) days after such institution. 5.2 Notice Of Default. (a) From Department. If, through the annual certification report or other means, the Department has reason to believe the Housing Business is in default of the terms of this Agreement, the Department will issue a written notice of default to the Housing Business, setting forth the nature of the default in reasonable specificity, and providing therein a reasonable period of time,which shall not be less than 30 days from the date of the notice of default, in which the Housing Business shall have an opportunity to cure, provided that cure is possible and feasible. A copy of any Notice of Default will also be provided to the Community and DRF. (b) From Community. If, through monitoring, auditing or other means, the Community has reason to believe the Housing Business is in default of the terms of this Agreement, the Community will issue a written notice of default to the Housing Business, setting forth the nature of the default in reasonable specificity, and providing therein a reasonable period of time,which shall not be less than 30 days from the date of the notice of default, in which the Housing Business shall have an opportunity to cure, provided that cure is possible and feasible. A copy of any Notice of Default will also be provided to the Department and DRF. 5.3 Repayment;Loss of Benefits. (a) Failure to meet/maintain requirements. If the Housing Business fails in any year to meet or maintain any one of the requirements of the Act, the Housing Business shall repay the value of the incentives received for each year during which it was not in compliance. (b) DRF recovery. Once it has been established, through the Housing Business' annual certification, monitoring, audit or otherwise, that the Housing Business is required to repay all or a portion of the incentives received, the DRF shall collect the amount owed. DRF has the authority, pursuant to the Act, to recover the value of state taxes or incentives provided under the Act. The value of state incentives provided under the Act includes applicable interest and penalties. ARTICLE VI GENERAL TERMS AND PROVISIONS 6.1 Compliance With Laws And Regulations. The Housing Business shall comply with all applicable State and federal laws, rules (including the administrative rules adopted by the Department for the Enterprise Zone Program -261 Iowa Administrative Code, chapter 59), ordinances, regulations and orders. Format revised 712002 EZ Agreement#06-HEZ-002 Page 6 6.2 Termination. This Agreement may be terminated by the Department or the Community: (a) in the event of an unremedied material Event of Default by the Housing Business under Article V of this Agreement; or(b) by mutual agreement of all parties. 6.3 Survival Of Agreement. If any portion of this Agreement is held to be invalid or unenforceable, the remainder shall be valid and enforceable. 6.4 Governing Law. This Agreement shall be interpreted in accordance with the law of the State of Iowa, and any action relating to this Agreement shall only be commenced in the Iowa District Court for Polk County or the United States District Court for the Southern District of Iowa. 6.5 Modification. This Agreement may only be modified by a written document signed by all Parties. 6.6 Notices. Whenever this Agreement requires or permits any notice or written request by one party to another, it shall be in writing, enclosed in an envelope, addressed to the party to be notified at the address heretofore stated (or at such other address as may have been designated by written notice), properly stamped, sealed and deposited in the United States Mail. Any such notice given hereunder shall be deemed delivered upon the earlier of actual receipt or three (3) business days after posting. The Department may rely on the addresses of the Housing Business and Community set forth heretofore, as modified from time to time, as being the addresses of the Community and Housing Business. 6.7 Waivers. No waiver by a party of any Event of Default hereunder shall operate as a waiver of any other Event of Default or of the same Event of Default on any future occasion. No delay on the part of a party in exercising any right or remedy hereunder shall operate as a waiver thereof. No single or partial exercise of any right or remedy by a party shall preclude future exercise thereof or the exercise of any other right or remedy. 6.8 Headings. The headings in this Agreement are intended solely for convenience of reference and shall be given no effect in the construction and interpretation of this Agreement. 6.9 Integration. This Agreement contains the entire understanding between the Community, Housing Business and the Department and any representations that may have been made before or after the signing of this Agreement, which are not contained herein, are nonbinding, void and of no effect. None of the parties have relied on any such prior representation in entering into this Agreement. 6.10 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. 6.11 Documents Incorporated By Reference. The following documents are hereby incorporated by reference: (a) Attachment A, "Housing Business' Enterprise Zone Application." (b) Attachment B, "Enterprise Zone Commission Resolution Approving the Housing Business' Enterprise Zone Application." 6.12 Order Of Priority. In the event of a conflict between documents of this Agreement, the following order of priority shall govern: (a) Articles 1 through 6 herein. (b) Attachment A, "Housing Business' Enterprise Zone Application." (c) Attachment B, "Enterprise Zone Commission Resolution Approving the Housing Business' Enterprise Zone Application." IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date first stated: Format revised 7/2002 t EZ Agreement#06-HEZ-002 Page 7 FOR THE COMMUNITY: FOR IDED: City of Waterloo Si nature Michael Miller, Investment Management I Inau&e-�z filet 6 Type or Print Namd Title _T FOR THE HOUSING BUSINESS: Three Kids and a Dog, LLC Signature VENT St�cr1-I6USF� Type or Print Name, Title Format revised 7/2002 ATTACHMENT A Housing Business' Enterprise Zone Application HEZ Format revised 7/2002 PUBLIC RECORDS POLICIES The Iowa Department of Economic Development(IDED)is subject to the Open Records law(2001 Iowa Code, Chapter 22). Treatment of information submitted to IDED in an Enterprise Zone application is governed by the provisions of the Open Records law. All public records are available for public inspection. Some public records are considered confidential and will not be disclosed to the public unless ordered by a court,the lawful custodian of the record, or by another person duly authorized to release the information. Copies of Iowa's Open Records law and IDED's administrative rules relating to public records are available from the Department upon request. APPLICANT INFORMATION Name of Housing Business: Three Kids and a Dog, L�:� Contact Name&Title: :lent Stackhouse , Manager Address: 2731 Jasmine Dr. 1daterloo , Iowa 50701 City, State&Zip Code: Iaterloo , Iowa 50701 Telephone: 319-493-0043 IOWA DEPT.OFECOiQ,l CDE�'FLOFr;,3u'�1 Fax: E-mail Address: JUL 0 1 2005 1?1V1S1o1'J Cilp,COM, t ,'i a Y Local Enterprise Zone Commission ®EVELOPIWENfi Enterprise Zone Commission Name: City of Waterloo Enterprise Zone Commission Contact Name&Title: Noel Anderson, City Planner Organization: City of Waterloo - Community Planning & Development Dept. Address: City Hall, 715 Mulberry Street City, State&Zip Code: Waterloo, Iowa 50703 Telephone: 319.291 .4366 Fax: 319.291-4262 E-mail Address: noel.anderson@waterloo-ia.org 2 April 2002 CERTIh'ICATION&RELEASE OF INFORMATION I, the undersigned,on behalf of the Housing Business identified above,hereby submit the following application under Iowa Code Sections 15E.191 through 15E_196. 1 certify that the Housing Business is in good standing, and has complied or will upon receipt of approval by the Department,with all applicable laws of the State of Iowa to conduct business within the State. I certify that all information,representations,or statements provided to the Iowa Department of Economic Development(IDED),in connection with this application,are true and correct in all material respects. I certify and understand that in order to receive benefits under the Enterprise Zone Program that the project described in this application has not been initiated and that the project will not be initiated until the business receives final approval of this application from the IDED. I hereby give permission to IDED to make credit checks,contact the company's financial institution(s), and perform other related activities necessary for reasonable evaluation of this application. I understand this application is subject to final approval by the Department and am aware that Enterprise Zone benefits are not available until final Department approval is secured and an agreement is executed with the Housing Business, IDED and the Community, within a reasonable time period following approval. This application will be used as the basis for the Enterprise Zone agreement. For the Housing Business: Signature,Title Kent Stackhouse , Manager Print name and title 6-11 -05 Date For the Enter Zon oz i ion: cat, As��EP Signature,Title Print name and title Co. z9. �s— Date 3 April 2002 9. Attach a legal description of the business site on which the project will occur. na 10. Attach a detailed map(no larger than 8"x 14")showing the housing development site in relation to the boundaries of the certified Enterprise Zone. see map 11. Is any part of the project located in a 100-year flood plain? no 12. Please indicate the total capital investment that will be made as the result of this project? Description of Capital Expenditure Amount Labor and Materials $ 4. 105 000.00 $ 4'�'1 5 ,0 o. $ �r 105 ,000.00 $ x,105 ,000.00 $ Total $ ;N 2 , 13. Please identify the sources of project financing that will be utilized and the amount of the financing. (The total amount of the financing should equal the total expenditures in Question#12.) Source of Project Financing Amount Company $ Compan3t $ "'55 ,000.00 a $ %409000.00 Community Dev Grant $ Bank U.S . Bank $ :. 4 , 0 Total $ `";420,000,00 14. For purposes of determining the amount of investment tax credits the housing business may receive,the Iowa Department of Economic Development cannot include capital expenditures financed through federal, state, and local government tax credits, grants and forgivable loans. Based on this information, what portion of your total capital investment(identified in Question#12)will be eligible for the investment tar credit? ;`1400 ,000.00 15. Please attach a long-term plan for the proposed housing development project including labor and infrastructure needs. see attachment 16. What economic benefits will the project bring to the area? dill provide affordable housing, aad increase the value of existing homes . 5 April 2002 17. Explain why the proposed project would be considered a good housing development project. ?uality Infill housing, energy efficient, stick built homes. See attachment. 18. Please attach an affidavit that states the Housing Business has not,within the last five years,violated state or federal environmental and worker safety statutes,rules,and regulations or,if such violations have occurred,that there were mitigating circumstances or such violations did not seriously affect public health or safety or the environment. 19. Explain why Enterprise Zone Benefits are needed in order for the project to proceed. `;fill help defray building costs to keep the houses affordable to lower income families , and to help keep costs within current market valuations for targetted area . 20. Please indicate the amount of Enterprise Zone tax benefits being requested for this project. State Sales, Service,and Use Tax Refund_ 840,000.00 Investment Tax Credit: 21. Please list any additional requirements adopted by the local Enterprise Zone Commission and explain how the Housing Business will meet each requirement. 6 April 2002 APPLICATION INFORMATION 1. Please provide a brief description of the proposed housing development project. Single family 'housing: see attachment 2. In which Enterprise Zone will this project occur(include the zone's name,number,size in acres,and date certified)? Blackhawk County, ''raterloo 3. Does the project involve new construction or rehabilitation? new construction 4. How many single-family homes or multi-family units are proposed? 4 single family homes 5. What will be the per unit value of the housing? < 120,000 6. The single family homes or multi-family units being constructed or rehabilitated must be modest homes or units and include the necessary amenities. Please explain how the proposed project will satisfy this requirement? These are high efficiency, affordable homes See attachment 7. Will the project meet U.S.Department of Housing and Urban Development Housing Standards and applicable local codes? yes 8. What is the current status of the project? When is construction scheduled to begin? What is the anticipated project completion date? Scheduled start July 1st, 2005 4 April 2002 Affidavit Three Kids and a Dog, ILC, kxxxtt has not, within the last five years, violated state or federal environmental and worker safety statutes , Pules acid regulations . Kent Stackhouse Manager, Three Kids and a Dog, LLC 6-11-05 . o 0-i op EO OO +' O X L 0i 73 a, pa W N QJ 1 O � ► O -� N ol U +� r-- J UN Q1 :3 E d X O X £ O o U � Ql pq SHELTER Front Elevation [Dra� By- KES Dote, �® en I Build Location C ❑ NSTRUCTI ❑ N °Ft. � 1430 opeCostruction, and can rotated use ekhout Wtten consmt of lier Constrvctbn. n 4�, Q o 0 r 0 w� rTl m < a _ Q II h LLJO 0 M EM I Floor Plan SHELTER Upper Level Drown lhv, ISS Dates abrin v, 1 Build Location C ❑ NSTRUCTI ❑ NPFt'� N = L'i Prroopperof Shelter Construction, and can not duptr 1 use *VJwut written consent of Nter Constructlon. 00 rD �7 � u 3 O < O y,l N I P T Q Q � X <+ W w _ O ro Ta O 7 'e n,l 3 V L 0 N d C 0 - f nSHELCn1e6" " '1 i 1450 Floor saennPd t 1clonafn TER Lower Levet C ❑ NSTRUCTI ❑ N wB iKES Da te' � [Re' Y o hetwr LwT==Z=j Ica eue elthwt •rotten no t Bugd Locntbn Conetructbn. W N WW W W V ^ VJ X 0 X 0 �7 F- 0 0 rD 0 0 n � 4 CD R) o r Amo `� Y N nl Ic C p N 3 S O [7 E '< O = i d C 0 Single Family In-fill Housing 6/8/05 From: Greg Glidewell Shelter Construction 301 W.Dunkerton Rd. Waterloo,Iowa 50703 Proposal: Single Family In-fill Housing Goal: To provide affordable high efficiency houses that will exceed Energy star parameters in a modern and flexible layout. These homes will be all electric with 100%efficient furnaces and heat pumps, utilizing insulated concrete forms for the foundation, stick built wood framing with engineered 14"I joist floor system,engineered roof trusses and polyurethane insulation. Floor joists will span the whole house with no additional support beams or structures. This will allow a flexible layout that can be individually tailored for each family,and will allow future changes, e.g. the elimination or addition of rooms,with relative ease. These are all features that will make a quality house that is affordable, durable,comfortable,less expensive to operate,more friendly to the environment and aesthetically pleasing. 1) Team organization 1:1)Greg Glidewell and Kent Stackhouse,principals of Shelter Construction,and Shelter Construction will act as general contractors and owners, and be responsible for all aspects of building,managing and supervising all projects. Shelter Construction will handle general building. Subcontractors to include: Larry Frost,Frost Electric; Gene Jackson,Jackson Plumbing; H and H HVAC, 1.2)Financing will be provided by U.S.Bank 2)Site Location: to be in CUBA,Enterprise zones and/or Rath Brownfields area, or other targeted areas 3)Houses are designed to take advantage of narrow existing lots. Architecture is to be of a cottage design to blend with the neighborhood. Landscaping will employ hills, rocks,trees, shrubs, and flowers to showcase the front of the house. 3.1)See plans 3.2) 1400 square feet living space,or can modify to accommodate a variety of families or layouts 3.3)ICF foundation,wood frame with 14"1-joists and engineered wood trusses, polyurethane insulation,Pella window and doors,hardiboard cement board siding, 30 year architectural shingles. 4)Timeline and Financials: 4.l)Month 1: Foundation,framing, roof,windows,doors Month 2: HVAC,Electric, plumbing rough-in, Siding Month 3:Drywall,Paint, Cabinets,Finish trim Month 4:Flatwork,Landscaping,Flooring Month 5: Final clean and punch out 4.2)Intend to sell the house to a qualified buyer. 4.3)Price: $120,000.00 4.4)Will use incentive funds from Community Development, INRCOG down payment assistance, and Enterprise Zone funds 4.5}Incentive funds will be used to defray the overall costs to make the home more affordable e.g.to reduce$120,000.00 list to$90,000.00 to reach qualified buyers. ATTACHMENT B Enterprise Zone Commission Resolution Approving the Housing Business' Enterprise Zone Application HEZ Format revised 7/2002 MINUTES WATERLOO ENTERPRISE ZONE COMMISSION SCHEDULED MEETING — 9:30 A.M. JUNE 15, 2005 FRANK MOLLENHOFF CONFERENCE ROOM Members present were: Brock, Johnson, Northey, Orr, Sauerbrei, and Chairperson Vich. Also present was Greg Glidewell, Kent Stackhouse, and Nancy Seaman on behalf of 3 Kids & A Dog LLC. Noel Anderson was present as staff. Vich called the meeting to order at 9:31 a.m. A quorum is present. 1. Approval of Agenda It was moved by Orr and seconded by Northey to approve the agenda as submitted. Motion passed and carried unanimously. 2. Approval of Minutes Due to an error in the mailing, the Minutes were not included in the packet. They would be submitted to the Commission at their next meeting for proper review and approval. 3. Review of Three Kids and A Dog LLC application for benefits for the development of 4 single-family homes on locations within the Enterprise Zone, The Commission discussed the ingress/egress split design of the sample drawings. The 3 Kids representatives noted this was their initial design, and may be changed slightly from site to site, based on the ground elevations. The discussion moved to the differing funding sources, including the monies derived from the Community Development Commission. Northey questioned if the homes would be for sale. The 3 Kids noted that this was the intent/goal. They are not rent to own. Orr asked about the timeline. They noted they are working to build two right away, and 4 over the 2-year period. After some more discussion about the project and support for stick-built homes that appear compatible to others in the surrounding vicinity, it was moved by Orr and seconded by Northey to approve the application as submitted. Motion carried unanimously. 4. The next agenda item was the request by the Commission to add in additional wording to their recommendations of approval. This item originated from concerns of neighbors and neighborhood officials about types and designs of homes being placed within established neighborhoods. At the Commission's last 2 meetings, staff and Chairperson Vich had previously met with the City attorney's office regarding wording in the State Code allowing the Enterprise Zone Commission to establish further parameters for development projects seeking Enterprise Zone incentives. The wording on the attachment was aimed at making new housing developments within the Enterprise Zone compatible to existing homes. Anderson went over the attachment, noting that the final determination of compatibility would lie with the Commission, based, but limited on, the criteria in the attachment. The discussion ensued on the matter and whether or not the wording would be too vague. Anderson noted the Commission would need to look at each site on its own merit, and evaluate the surrounding environment of homes, etc. to lessen the vagueness of the wording. To make it more defined now may prove to cause problems as each case will undoubtedly have its own individual characteristics. The Commission discussion continued with a base point of"building good homes" as their goal, and encouraging further projects to take place within the Zone. The Commission also wanted the wording to include commercial structures and their compatibility to their surrounding. Anderson noted he would make such changes. It was then moved by Northey and seconded by Orr to forward the attachment to the City Attorney's Office for review. Upon recommendation of approval by the City Attorney's Office, Anderson will bring it back to the Commission for final action. Motion passed unanimously. It was then moved by Orr and seconded by Northey to adjourn the meeting at 9:55 a.m. RespEAnderrs Noel Secretary to Commission RESOLUTION APPROVING ENTERPRISE ZONE APPLICATION Resolution of City of Waterloo Enterprise Zone Commission (hereafter referred to as the "Commission") approving Three Kids & a Dog LLC application to the Iowa Department of Economic Development for the purposes of receiving housing benefits under the Enterprise Zone Program as authorized by Iowa Code Supplement 15E. 191-15E. 196, as amended by 1998 Iowa Acts, House Files 2164 (hereafter referred to as the "EZ Pro am" or the "Act" WHEREAS, Three Kids & a Dog LLC proposes to develop 4 single family homes in the City of Waterloo Enterprise Zone #4 (hereafter referred to as the "EZ") to receive benefits authorized under the EZ Housing Program; and, WHEREAS, Three Kids & a Dog LLC has submitted an application demonstrating that it meets the requirements of the EZ Program; and, WHEREAS, Three Kids & a Dog LLC has provided the Commission with information meeting the requirements of: four or more rehabilitated single family homes, multi-family building with three or more units; project completion within two years of the start of construction; and project will satisfy the housing standards established by the US Department of Housing and Urban Development and local building codes. NOW THEREFORE BE IT RESOLVED BY THE COMMISSION, that 1. The Commission certifies that the attached application from Three Kids & a Dog LLC satisfies the EZ Housing requirements and the Commission hereby approves the application. 2. The Chairperson of the Commission is hereby directed to execute said application and forward the application to the Iowa Department of Economic Development requesting approval by the State of Iowa. PASSED AND APPROVED THIS 151h DAY OF JUNE 2005. Josef Vich, Chairperson I certify the above signature to be that of Josef Vich, Chairperson of the City of Waterloo Enterprise Zone Commission. Date Notary Public I, Noel Anderson, City Planner, certify that an Enterprise Zone Commission meeting was held on June 15, 2005 in the Frank Mollenhoff Conference Room on the 2nd Floor of City Hall. The meeting agenda was posted in a public location at least 24 hours prior to the meeting, in the cabinet for posting meeting times on the 1St Floor of City Hall. The cabinet for posting is secured, so the posting was not taken down or altered regarding the meeting time. The local newspaper, the Waterloo Courier, is also informed of such meeting times. Noel Anderson, City Planner & staff to Enterprise Zone Commission STATE OF IOWA DEPARTMENT OF NATURAL RESOURCES HENRY A.WALLACE BUILDING DES MOINES,IOWA 50319 CONSTRUCTION PERMIT Coyote Crossroads Mall,LLC PERMIT NO.:2006-0288-S Attn: Mr.Gary Ogzewalla FILE: City of Waterloo-Sewage 2060 Crossroads Blvd., Suite 124 RE:Crossroads Mall North Waterloo,IA 50702 PROJECT NO: 52006-0312 In accordance with the provisions of Section 455B.173.3 and 455B.174.4, Code of Iowa, and Rule 567--64.2(455B) or Rule 567-65.6(455B), or Rule 567--43.3(455B) of the Iowa Administrative Code, the Director of the Department of Natural Resources does hereby issue a permit for the construction of: 570 linear feet of 8-inch sanitary sewer,manholes,and all related appurtenances necessary to complete the project in accordance with the approved plans and specifications. The construction of the project shall be initiated within one year of issuance of this permit or this permit is no longer valid. Within thirty days after completion of construction, the permit holder shall submit a certification by a licensed professional engineer that the project was completed in accordance with the approved project documents. No construction activities shall be initiated unless an Iowa NPDES General Permit No. 2 for"Storm water associated with construction activities" is obtained from the department if the site disturbance and preparation equals to or exceeds one(1)acre." The issuance of this permit in no way relieves the permittee of the responsibility for complying with any other local, state,and federal laws,ordinances,regulations or other requirements applicable to this facility. Pursuant to Section 455B.174.4, Code of Iowa,you have the right to appeal any condition of this permit by filing with the Director of the Department of Natural Resources a notice of appeal and request for administrative hearing within thirty days of receipt of this permit. Contact Satya Chennupati, P.E. at 515-281-8995 with any questions or comments. FOR THE DEPARTMENT OF NATURAL RESOURCES JEFFREY R.VONK,DIRECTOR By ENVIRO NTAL SERVICE DMS ON Date:December 29,2005 cc: IDNR Field Office #I IDNR Sewage File 6-07-90-0-01 Schenk Engineering Company City of Waterloo-City Clerk Plan Distribution [1] Applicant; [$]Engineer; []City of ; [] DNR File; [] Field Office Koffi Gangba