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HomeMy WebLinkAboutHollen JLLLC - Development Agreement - 12/12/2005 DEVELOPMENT 2-- DEVELOPMENT AGREEMENT This Agreement is made and entered into this /a day of �k2m6e/ , 2005, by and between Hollen JLLLC hereafter called Company, and the City of Waterloo, Iowa, hereinafter called 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/housing building on property located in the Downtown Waterloo Urban Renewal and Redevelopment Plan, described as Parcel 8913-24-362-016, legally described on attached Exhibit "B", and NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS HEREINAFTER CONTAINED, Company and City agree as follows: 1. PROPERTY TAX REBATES The City agrees to property tax rebates as follows: a. Year One - 100% Rebate b. Year Two - 100% Rebate c. Year Three - 100% Rebate d. Year Four - 100% Rebate e. Year Five - 100% Rebate for the $19,660 improvement value over the January 1 , 2004 value of $144,250.00. This is amount of added value to building from improvements, not including any added value from the reevaluation process performed countywide. The taxable value of the property as a result of development must be increased by a minimum of 10% and increase the annual tax by a minimum of $500.00. This program is not applicable to (i.e., rebates will not be given for) the Self-Supported Municipal Improvement District levy or other special tax assessments and/or the debt service levy. 2. MINIMUM ASSESSMENT AGREEMENT. Company acknowledges and agrees that it will pay when due all taxes and assessments, general or special, and all other charges whatsoever levied upon or assessed or placed against the Property, and further agrees that prior to the date set forth in Section 2 of Exhibit A, it will not cause a reduction in the real property taxes paid with respect to the Project below the amount of $ 172,630.00 Dollars ("Minimum Actual Value"). Company agrees to sign said attached Exhibit "A" at the closing for the project agreement. 4. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon the successors and assigns of Company. DEVELOPMENTAL AGREEMENT Page 2 IN WITNESS WHEREOF, the parties have executed this Agreement the date and year written above. By: Q.dis �� � Fo�mpany Date By: For Company Date CITY OF WATERLOO, IOWA BY 0 5 Tim Hurley, Mayor Date ATTEST: Nancy ke it, Clerk Date EXHIBIT "A" MINIMUM ASSESSMENT AGREEMENT THIS MINIMUM ASSESSMENT AGREEMENT, dated as of this day of 2005, by and among the CITY OF WATERLOO, IOWA, ("City"), Hollen JLLLC ("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 an Agreement for development of Land for Private Development ("Agreement') regarding certain real property located in the City; and WHEREAS, it is contemplated that pursuant to said Agreement, the Company will undertake the development of an area ("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 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 which it is contemplated will be erected as a part of the development; NOW, THEREFORE, the parties to this Minimum Assessment 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 above-referenced improvements by the Company on the property described in Exhibit "B" attached hereto, the minimum actual taxable value which shall be fixed for assessment purposes for the land and improvements to be constructed thereon by the Company as a part of the development shall not be less than $ 172 630.00 ("Minimum Actual Value") until termination of this Minimum Assessment Agreement. The parties hereto agree the construction of the improvements will be substantially completed on or before January 1, 2006. 2. The Minimum Actual Value herein established shall be of no further force and effect and this Minimum Assessment Agreement shall terminate on January 1, 2015. Nothing herein shall be deemed to waive the Company's rights under Iowa Code section 403.6(19)(1997), 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 to reduce 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, 2015. 3. This Minimum Assessment 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 Minimum Assessment Agreement are intended to, or shall be construed as, modifying the terms of the Agreement between the City and the Company. 5. This Minimum Assessment Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. THE CITY OF WATERLOO By: ATTEST: Tim Hurley, Mayor By: � Nancy cke ity Clerk By: �a�� e For Company By: For Company STATE OF IOWA COUNTY OF BLACK HAWK ) On this day of 2005, before me a Nota ry Public in and for the State of Iowa, personally appeared Tim Hurley and Nancy Eckert 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 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. I 4NoryPublic in and for the S t of Iowa Ga STATE OF IOWA, BLACK HAWK COUNTY, ss: On this day of SCP7i� 2005, before me, the undersig ed, Notary Public in and for the State of Iowa, personally appeared en 1*,� a'L� and , to me personally known, who being by me duly sworn, did say that they are the and respectively, of the corporation executing the within and foregoing instrument to which this is attached; that said instrument was signel on b half of the corporation by authority of its Board of Directors; and that , j &L I and as officers acknowledged the execution o t e foregoing instrument to be the voluntary act and deed of the corporation, by it and by them voluntarily executed. Notary Public in an for said State of Iowa 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 such land, building and equipment upon completion of the development shall not be less than One Hundred Seventy Two Thousand Six Hundred Thirty Dollars ($172,630.00). Assessor for Black Hawk County, Iowa Date STATE OF IOWA COUNTY OF BLACK HAWK ) Subscribed and sworn to before me by Assessor for Black Hawk County, Iowa. Notary Public in and for the State of Iowa Date EXHIBIT "B" Legal Description: Parcel Number 8913-24-362-016, ORIGINAL PLAT WATERLOO EAST NORTHEAST 44 FEET NORTHWEST 100 FEET LOT 3 BLOCK 28 & EASEMENT OVER NORTHWEST 10 FEET SOUTHEAST 50 FEET NORTHEAST 100 FEET OF LOTS 2 & 3 BLOCK 28, ALL IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, STATE OF IOWA.