HomeMy WebLinkAboutJames H. Slife - Dev Agmnt - 4/10/2006 A) -D
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DEVELOPMENT AGREEMENT
This Agreement is made and entered into this M day of
2006, by and between James H. Slife 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 commercial
building on property located in the Downtown Waterloo Urban Renewal and
Redevelopment Plan, described as Parcels 8913-26-277-006, 8913-26-277-009, 8913-
26-277-010, and 8913-26-277-011 legally described on attached Exhibit "B", and
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
HEREINAFTER CONTAINED, Company and City agree as follows:
1. SALE OF PROPERTY: The City shall convey unto Company property as
described in Exhibit "C", for the sum of $1.00. Company shall construct a commercial
building consisting of approximately 9,600 square feet located on said real estate. Said
building is to be constructed in accordance with all applicable City, State, and Federal
building codes and be in compliance with all applicable City ordinances. It is
contemplated that the construction of said new facility should have an estimated cost to
construct of $ 250,000.00.
a. Timeliness: Company must obtain a building permit and begin
construction within four (4) months from the date the above described real
estate is deeded to it. If, after the expiration of four (4) months from the
date of the executed deed, Company has not begun in good faith the
construction of the building described above upon said lot , the title to the
real estate will revert to City. Company agrees to sign all necessary
documents for said reversion. If construction is not begun, at the end of
four (4) months, 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 building. If development has commenced within
the four months period and is stopped and/or delayed, Company shall
have twenty-four months to resume construction or the title to the real
estate shall revert back to the City. Company may agree to pay
$12,000.00 as the balance due for the real estate as an option to the
reversion of the real estate.
b. 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 five
hundred thousand dollars $500,000 ("Minimum Actual Value"). Company
agrees to sign said attached Exhibit "A" at the real estate closing.
2. 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
f. Year Six - 100 % Rebate
g. Year Seven - 100 % Rebate
h. Year Eight - 100 % Rebate
for any value over the January 1, 2003 value of $338,730.
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.
The first year of rebatement, known as "Year One" herein, shall be the first full
year for which the assessment is based upon the completed value of the Project 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 Project due to partial completion of
the Project or a partial tax year.
3. DEED. The City shall convey or cause to be conveyed fee simple title to
the property by quit claim deed, in form reasonably approved by Company, free and
clear of all encumbrances except: (a) easements, conditions and restrictions of record
which do not, in Company's opinion, interfere with Company's proposed use; (b)
current and future real estate real property taxes and assessments subject to the
agreements made herein; (c) general utility and right-of-way easements serving the
Land; (d) the zoning ordinances of Waterloo, Iowa;
4. Notice: All notices, requests, and other communication permitted or
required hereby shall be in writing and shall be effective when delivered to the
addressee in person or when sent to such address by United States registered or
certified mail, return receipt requested, postage prepaid, or by hand delivery, or telefax,
addressed as follows:
For the City:
Mayor Timothy Hurley
City Hall
715 Mulberry Street
Waterloo, Iowa 50703
with copies to the City Attorney and City Planner.
For James H. Slife
James H. Slife
316 W. 5th Street
Waterloo, Iowa 50701
5. The City warrants and represents to Company that the person signing
this Contract has full power and authority to do so, and that the persons signing the
deed and other closing documents will have the power and authority to do so.
6. Company warrants and represents to City that the person signing this
Contract has full power and authority to do so.
7. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon the
successors and assigns of Company.
IN WITNESS WHEREOF, the parties have executed this Agreement the date and year
written above.
COMPANY
By:
James H. Slife Date
CITY OF WATERLOO, IOWA
By:
Timothy J. y, Mayo Date
ATTEST:
By: �� q'lD - D6
Nancy Eckert, Cit) erk Date
EXHIBIT "A"
MINIMUM ASSESSMENT AGREEMENT
THIS MINIMUM ASSESSMENT AGREEMENT, dated as of this day of
200_by and among the CITY OF WATERLOO, IOWA, ("City"),
James H. Slife, ("Developer"), and the COUNTY ASSESSOR of the City of Waterloo,
Iowa ("Assessor").
WITNESSETH:
WHEREAS, on or before the date hereof the City and Developer 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 Developer
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 Developer 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,
evelopment;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 Developer 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 Developer as a part of
the development shall not be less than $500,000 ("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, 2005.
2. The Minimum Actual Value herein established shall be of no further force
and effect and this Minimum Assessment Agreement shall terminate on December 31,
2020.
Nothing herein shall be deemed to waive the Developer'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 Developer 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
Developer to contest its taxable valuations in full, commencing with the
assessment of January 1, 2021.
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 Developer.
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: stt /
ATTEST: Timothy J. OWey, Mayor
By:
Nancy Eckert, Ci
Clerk
By:
James H. Slife
EXHIBIT "B"
Legal Description
DESCRIPTION OF ENTIRE PROPERTY
The Northeasterly 100' of Lots 8, 9, and 10 Block 17 of the Original Plat of Waterloo
West;
Also, Lots 3, 4 5, 6, and 7 of Leavitt Lusch and Miller Subdivision of Lots 6 and 7 Block
17 of the Original Plat of Waterloo West;
Also, Lot 3 in Leavitt Lusch and Miller Sub Division of Lot 6 and 7 in Block 17 City of
Waterloo, West Side of the Cedar River, Black Hawk County, Iowa.
Also, the northeasterly 100 feet of the 20 foot wide alley in Leavitt Lusch and Miller Sub
Division of Lots 6 and 7 in Block 17 City of Waterloo, West Side of the Cedar River,
Black Hawk County, Iowa that lies Northwesterly of and adjacent to the Northeasterly
100 feet of Lot 8, Block No. 17 of said Original Plat of Waterloo West and Southeasterly
of and adjacent to Lots Nos. 3, 4, 5, 6 and 7 of said Leavitt Lusch and Miller Sub
Division.
Also, Lot 7 in Leavitt, Lusch and Miller Subdivision of Lots 6 and 7 in Block 17, City of
Waterloo, West Side of Cedar River, Black Hawk County, Iowa.
With an easement for access and utility purposes over the following:
Lot 3 in Leavitt Lusch and Miller Sub Division of Lot 6 and 7 in Block 17 City of
Waterloo, West Side of the Cedar River, Black Hawk County, Iowa.
EXHIBIT "c"
Legal Description
Vacation of Alley
Legal: Vacate sell and convey
Lot 3 in Leavitt Lusch and Miller Sub Division of Lot 6 and 7 in Block 17 City of
Waterloo, West Side of the Cedar River, Black Hawk County, Iowa.
The northeasterly 100 feet of the 20 foot wide alley in Leavitt Lusch and Miller Sub
Division of Lots 6 and 7 in Block 17 City of Waterloo, West Side of the Cedar
River, Black Hawk County, Iowa that lies Northwesterly of and adjacent to the
Northeasterly 100 feet of Lot 8, Block No. 17 of said Original Plat of Waterloo
West and Southeasterly of and adjacent to Lots Nos. 3, 4, 5, 6 and 7 of said
Leavitt Lusch and Miller Sub Division.
Legal: Easement retained for access and utility purposes
Lot 3 in Leavitt Lusch and Miller Sub Division of Lot 6 and 7 in Block 17 City of
Waterloo, West Side of the Cedar River, Black Hawk County, Iowa.
STATE OF IOWA )
COUNTY OF BLACK HAWK )
On this day of 2006, before me a Notary
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.
Notary Public in and for the State of Iowa
STATE OF IOWA, BLACK HAWK COUNTY, ss:
On this day of 2006, before me, the
undersigned, a Notary Public in and for the State of Iowa, personally appeared
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 signed on behalf of the corporation
by authority of its Board of Directors; and that and
as officers acknowledged the execution of the foregoing instrument to be
the voluntary act and deed of the corporation, by it and by them voluntarily executed.
Notary Public in and for said State
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 Five Hundred Thousand Dollars ($500,000).
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