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HomeMy WebLinkAboutJ.J.B. Properties, LLC-Development Agreement-11.13.2007 //-I3'o 7 �� . ac'07 - �i�a DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of November 5, 2007, by and between J.J.B. Properties LLC ("Company"), and the City of Waterloo, Iowa ("City"). RECITALS A. City considers economic development within the City a benefit to the community and is willing for the overall good and welfare of the community to provide financial incentives so as to encourage that goal. B. Company is willing and able to finance and construct a building and related improvements on property located in the San Marnan urban renewal area. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1 . Purchase of Property. Company is purchasing the real property described on Exhibit "A" attached hereto (the "Property"). The purchase price for the Property is $525,000.00 (the "Purchase Price"). 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 construct on the Property a building consisting of approximately 8,000 square feet, and related landscape and parking (the "Improvements"). 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 taxable value of the land and building upon completion will be approximately $2,000,000. 3. Timeliness of Construction. Company must substantially complete construction of the Improvements by January 1, 2009. If Company has not obtained a building permit and begun in good faith the construction of the Improvements upon the Property by May 1, 2008, this Agreement may be cancelled at the sole option of City. If construction has not begun by May 1, 2008, 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 May 1, 2008 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 January 1, 2009 shall be tolled for a period of time equal to the period of such stoppage or 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. 6. Representations and Warranties of City. City hereby represents and warrants as follows: 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. 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 to be delivered to City hereunder is and shall be authorized to do so on behalf of Company. 8. Notices. Any notice under this Agreement shall be in writing and shall be delivered in person, by overnight air courier service, by United States registered or certified mail, postage prepaid, or by facsimile (with an additional copy delivered by one of the foregoing means), and addressed: (a) if to City, at 715 Mulberry Street, Waterloo, Iowa 50703, facsimile number 319-291-4571, Attention: Mayor, with copies to the City Attorney and the Community Planning and Development Director. (b) if to Company, to Financial Resource Advisors, 978 Home Plaza, Suite 100, Waterloo, Iowa, 50701 facsimile: 319.234.6218, attention: Jay Bullerman. Delivery of notice shall be deemed to occur (i) on the date of delivery when delivered in person, (ii) one (1) business day following deposit for overnight delivery to an overnight air courier service which guarantees next day delivery, (iii) three (3) business days 3 IN WITNESS WHEREOF, the parties have executed this Development Agreement as of the date first set forth above. CITY OF WATERLOO, IOWA By: Timothy J. H , ayor Jerem ullerman, Vice President Fin cial Resource Advisors, Manager J. .B. Properties, LLC A Nancy Eck , City Clerk 5 EXHIBIT "B" MINIMUM ASSESSMENT AGREEMENT This Minimum Assessment Agreement (the "Agreement") is entered into as of this day of , 2007, by and among the CITY OF WATERLOO, IOWA ("City"), _ ("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 a development agreement (the "Development Agreement") regarding certain real property, described in Exhibit "A" thereto, located in the City; and WHEREAS, it is contemplated that pursuant to the Development Agreement, the Developer will undertake the development of an area ("Project") within the City and within the San Marnan urban renewal area; and WHEREAS, pursuant to Iowa Code § 403.6, as amended, the City and the Developer desire to establish a minimum actual value for the land and the building(s) pursuant to this Agreement and applicable only to the Project, which shall be effective upon substantial completion of the Project 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 buildings as to the Project only; and WHEREAS, the City and the Assessor have reviewed the preliminary plans and specifications for the improvements (the "Improvements") which the parties contemplate will be erected as a part of the Project. NOW, THEREFORE, the parties hereto, 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 Developer, 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 Project shall not be less than $2,008,760.00 ("Minimum Actual Value") until termination of this Agreement. The parties hereto agree that construction of the Improvements will be substantially completed on or before January 1, 2009. 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 , 2022. Nothing herein shall be deemed to waive the Developer's rights under Iowa 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. �lota Public STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) Subscribed and sworn to before me on J- , 2007' by Jeremy (Jay) Bullerman. ()ex._ a rY No Public LYNNE A. KULLEN .mom COMMISSION NO.220816 ¢ -; • MY COMMISSION EXPIRES o w* FEBRUARY 5, caoo 3