HomeMy WebLinkAboutJARF, LC-Development Agreement-12.10.2007 ra-/o -07
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DEVELOPMENT AGREEMENT
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This Agreement is made and entered into this 1 D- y �eCem�r November,
2007, by and between JARF LC hereafter called Company, and the City Waterloo,of
Iowa, hereinafter called City.
RECITALS
A. 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.
B. Company is willing and able to construct a building and related improvements
on property located in the Martin Road development area.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants set forth herein,
the parties agree as follows:
1. Improvements by Company. Company shall construct an approximate
6,400 square foot warehousing addition and 10,332 square foot office addition, with
approximately $1.8 million in construction costs, at their current facility at 1369-1425
Martin Road, located in the Martin Road Development Area, described as Parcel
891333-351-011, legally described on attached Exhibit "A", with related landscaping
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 of the Improvements will be approximately $4,150,000,
adding $1.1 million in new taxable value.
2. Timeliness of Construction. Company must obtain a building permit
and begin construction within six (6) months from the date of this agreement approval
and complete construction of the Improvements within eighteen (18) months thereafter.
If Company has not begun in good faith the construction of the Improvements upon the
Property before the end of the 18-month period; this Agreement shall be cancelled. If
construction has not begun at the end said eighteen-month period, 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 the end of the 18-month period 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 completed within eighteen (18) months shall be tolled for a period of time equal to
the period of such stoppage or delay, and thereafter if construction is not completed
within the allowed period of extension this Agreement shall be cancelled.
3. Minimum Assessment Agreement. Company acknowledges and
agrees that it will pay when due all taxes and assessments, general or special, and all
other lawful charges whatsoever levied upon or assessed or placed against the
Property. Company further agrees that, prior to January 1, 2019, it will not seek or
cause a reduction in the taxable valuation for the Property, which shall be fixed for
assessment purposes, below the aggregate amount of $4,150,000 ("Minimum Actual
Value"), through:
(i) willful destruction of the Property, Improvements, or any part of
either;
(ii) a request to the assessor of Black Hawk County; or
(iii) any proceedings, whether administrative, legal, or equitable, with
any administrative body or court within the City, Black Hawk
County, the State of Iowa, or the federal government.
Company agrees to sign the agreement attached as Exhibit "B" at closing.
4. Property Tax Rebates to Company. Provided that Company has
completed the Improvements as set forth in paragraphs 1, 2 and 3 and has executed
the Minimum Assessment Agreement as set forth in paragraph 4, the City agrees to
rebate property taxes (with the exceptions noted below) as follows:
a. Year One - 50% rebate
b. Year Two - 50% rebate
c. Year Three .. 50% rebate
d. Year Four - 50% rebate
e. Year Five - 50% rebate
f. Year Six - 61% rebate
for any taxable value over the January 1, 2007 value of $3,016,240.00. Rebates are
payable in respect of a given year only to the extent that Company has actually paid
general property taxes due and owing for such year.
The taxable value of the Property as a result of the Improvements must be increased by
a minimum of 10% and must increase the annual tax by a minimum of $500.00. This
rebate program is not applicable to any special assessment levy, debt service levy, or
any other levy that is exempted from treatment as tax increment financing under the
provisions of applicable law. The first year in which a rebate may be given ("Year One")
shall be the first full year for which the assessment is based upon the completed value
of the Improvements 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
Improvements, due to partial completion of the Improvements or a partial tax year.
5. 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.
6. 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 by it to City hereunder is and shall be authorized to do so on it's
behalf.
7. 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 Jarf, LC, 1369 Martin Road, PO Box 358,
Waterloo, Iowa 50704, facsimile number , Attention: Bob Fahr.
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 following the date of deposit if mailed by United States
registered or certified mail, postage prepaid, or (iv) when transmitted by facsimile
so long as the sender obtains written electronic confirmation from the sending
facsimile machine that such transmission was successful.
8. Amendment, Modification, and Waiver. No amendment, modification,
or waiver of any condition, provision, or term of this Agreement shall be valid or of any
effect unless made in writing, signed by the party or parties to be bound or by the duly
authorized representative of same, and specifying with particularity the extent and
nature of the amendment, modification, or waiver. Any waiver by any party of any
default by another party shall not affect or impair any rights arising from any subsequent
default.
9. Severability. Each provision, section, sentence, clause, phrase, and
word of this Agreement is intended to be severable. If any portion of this Agreement
shall be deemed invalid or unenforceable, whether in whole or in part, the offending
provision or part thereof shall be deemed severed from this Agreement and the
remaining provisions of this Agreement shall not be affected thereby and shall continue
in full force and effect. If, for any reason, a court finds that any portion of this
Agreement is invalid or unenforceable as written, but that by limiting such provision or
portion thereof it would become valid and enforceable, then such provision or portion
thereof shall be deemed to be written, and shall be construed and enforced, as so
limited.
10. Captions. All captions, headings, or titles in the paragraphs or sections
of this Agreement are inserted only as a matter of convenience and/or reference, and
they shall in no way be construed as limiting, extending, or describing either the scope
or intent of this Agreement or of any provisions hereof.
11. Binding Effect. This Agreement shall be binding and shall inure to the
benefit of the parties and their respective successors, assigns, legal representatives,
and future owners of the Property.
12. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which, taken
together, shall constitute one and the same instrument.
13. Entire Agreement. This Agreement, together with the Minimum
Assessment Agreement attached hereto as Exhibit "B", constitutes the entire
agreement of the parties and supersedes all prior or contemporaneous negotiations,
discussions, understandings, or agreements, whether oral or written, with respect to the
subject matter hereof.
14. Time of Essence. Time is of the essence of this Agreement.
IN WITNESS WHEREOF, the parties have executed this D `velopment
Agreement as of the date first set forth above.
CITY OF WATERLOO, IOWA JARF LC
By: By: /
Timothy J. H , Mayor Robert Fahr, Manager
Attest: � o
Nancy Eckert ty Clerk
EXHIBIT "A"
Legal Description
UNPLATTED WATERLOO WEST A PART OF WEST 1/2 SOUTHWEST 1/4 SECTION 33 TOWNSHIP
89 RANGE 13 COMMENCING AT SOUTHWEST CORNER SAID SECTION THENCE NORTH ALONG
WEST LINE OF SAID SECTION A DISTANCE OF 233 FEET THENCE EAST A DISTANCE OF 25 FEET
TO THE POINT OF BEGINNING THENCE NORTH 710.59 FEET THENCE EAST A DISTANCE OF
878.32 FEET TO NORTHWESTERLY ROW LINE OF C & NW RAILROAD THENCE SOUTH ALONG
NORTHWESTERLY ROW LINE OF RAILROAD A DISTANCE OF 886.86 FEET THENCE WEST A
DISTANCE OF 347.68 FEET TO THE POINT OF BEGINNING EXCEPT COMMENCING AT
SOUTHWEST CORNER SOUTHWEST 1/4 THENCE NORTH 233 FEET THENCE EAST 25 FEET TO
POINT OF BEGINNING THENCE EAST 200 FEET THENCE NORTH 100 FEET THENCE WEST 200
FEET THENCE SOUTH 100 FEET TO POINT OF BEGINNING AND EXCEPT THAT PART DEEDED TO
CITY OF WATERLOO AS DESCRIBED IN LAND DEED BOOK 570 PAGE 62, ALL IN THE CITY OF
WATERLOO, BLACK HAWK COUNTY, STATE OF IOWA.
EXHIBIT "B"
MINIMUM ASSESSMENT AGREEMENT
This Minimum Assessment Agreement (the "Agreement") is entered into as of
this day of November, 2007, by and among the CITY OF WATERLOO,
IOWA ("City"), JARF LC ("Company"), 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 Martin Road 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 $4,150,000 ("Minimum Actual Value") until
termination of this Agreement. The parties hereto agree that construction of the
Improvements will be substantially completed on or before December 31, 2008.
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,
2018. Nothing herein shall be deemed to waive the Developer's rights under Iowa
Code § 403.6, 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 or cause the reduction of 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, 2019.
3. This Agreement shall be promptly recorded by the City with the Recorder
of Black Hawk County, Iowa. The City shall pay all costs of recording.
4. Neither the preambles nor provisions of this Agreement are intended to, or
shall be construed as, modifying the terms of the Development Agreement.
5. This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of the parties, including but not limited to future owners of the
Project property.
CITY OF WATERLOO, IOWA
By: %� ���:
Timothy J. ley, Mayor
ATTEST:
By:
Nancy Eck , City Clerk
JARF LC
By:
Robert Fahr, Manager
STATE OF IOWA )
) ss.
COUNTY OF BLACK HAWK )
On this day of , 2007, before me, a Notary
Public in and for the State of Iowa, personally appeared Timothy J. 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.
ota Public
STATE OF IOWA )
) ss.
COUNTY OF BLACK HAWK )
Acknowledged before me on the Divday of November, 2007, by Robert Fahr
as Manager of JARF LC.
AMY E. KENT _
COMMISSION NO.748852 yin
MIL/° FAY COMMISSION EXPIRES
SEPTEME3ER 12,2010 J
Notary Public
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 Four Million One Hundred Fifty Thousand Dollars ($4,150,000 ) in the
aggregate, until termination of this Minimum Assessment Agreement pursuant to the
terms hereof.
Assessor for Black Hawk County, Iowa
Date
STATE OF IOWA )
) ss.
COUNTY OF BLACK HAWK )
Subscribed and sworn to before me on , 2007, by
, Assessor for Black Hawk County, Iowa.
Notary Public