HomeMy WebLinkAboutLehman, Laverne J.-Development Agreement-05.27.2008 1-1„0. 3-64 - 41.12
DEVELOPMENT AGREEMENT
This Agreement is made and entered into this 7 day of , 2008, by
and between Laverne J. Lehman hereafter called Developer, and the City Waterloo, Iowa,
hereinafter called City.
WHEREAS, City considers development within the City a benefit to the community and is
willing for the total good and welfare of the community to sell city-owned property (valued at
$3,846.56) not needed for current or future public purposes so as to encourage that goal, and
WHEREAS, Developer is willing and able to construct a commercial building (Project),
valued at a minimum of$272,000, on property, legally described on attached Exhibit "A", and
WHEREAS, said construction of commercial building shall be started within 6 months
and completed within a 2-year perioc by Developer, and
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
HEREINAFTER CONTAINED, Developer and City agree as follows:
1. The City agrees to transfer property, as legally described, for $1.00 plus costs. The
City shall convey, or cause to be conveyed, the property by Quit Claim Deed.
2. Developer agrees to construct a commercial building on the Project property, at an
estimated value of approximately $272,000, and take out necessary permits within a
six-month period, from the date of this agreement. Said buildings shall be
constructed in accordance with all applicable City, State, and Federal building codes
and be in compliance with all applicable city ordinances.
3. Developer must obtain a building permit and begin construction within six (6) months
of the date of transfer and be completed within twenty-four (24) months. If, after
transfer of the property by the City to developer, construction is not commencing in
accordance with the attached schedule as described, the title to the real estate will
revert to City of Waterloo, free of any liens, encumbrances, etc. against said property.
Developer agrees to sign all necessary documents for said reversion. If construction
is not begun, at the end of six (6) 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. Partial start of development, not in accordance
with the requirement to build a commercial building within a two-year period will also
initiate the above requirement for reversion of land or full payment, as previously
described.
4. After Developer's completion of construction of commercial building, as previously
described, any and all reversion rights granted to City, relating to any or all of the
property described in Exhibit "A" shall terminate.
5. NOTICE: All notices, request, and other communication permitted or required herein
shall be in writing and hall be effective when delivered to the addressee in person or
when sent to such address by United States registered or certified mail, return receipt
requited, postage prepaid, or by hand delivery, or fax, addressed as follows:
For the City:
Mayor Tim Hurley
City Hall
715 Mulberry Street
Waterloo, Iowa 50703
With copy to Community Planning & Development Director
For Developer:
Laverne Lehman
323 Kothe Avenue
Waterloo, Iowa 50703
6. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon the
successors and assigns of Developer.
7. IN WITNESS WHEREOF, the parties have executed this Agreement the date and
year written above.
By: 6A-4 Afp,./ oZO0?
Laverne J. Lehman Date
CITY OF WATERLOO, IOWA
By: a 7- D
Tim Hurley, Mayor Date
ATTEST:
Nancy Ecke , ity Clerk Date
EXHIBIT "A"
Legal Description of property conveyed by City of Waterloo
The East half of Ashland Avenue in said Rosebud Addition, lying between the North
right of way line of Thorson Avenue (originally platted as Whitney Avenue), and the
Southerly line of said Lot Twelve (12) of Block Four (04); subject to city's retention of a
permanent utility easement over, under and upon all;
And also;
That part of the Sixteen (16) foot public alley of Block Four (04) as platted in Rosebud
Addition to the City of Waterloo, Black Hawk County, State of Iowa, lying South and
West of a line Fifty (50) feet normally distant Southwesterly from and parallel with the
centerline of Broadway Street (formerly primary Highway No. U.S. 20), a One Hundred
(100) foot public right of way, as now established, and lying North of the South line of
Lots Four (4) and Twelve (12) of said Block Four (04).
Legal Description of Project property
The East half of Ashland Avenue in said Rosebud Addition, lying between the North
right of way line of Thorson Avenue (originally platted as Whitney Avenue), and the
Southerly line of said Lot Twelve (12) of Block Four (04); subject to city's retention of a
permanent utility easement over, under and upon all;
And also;
That part of the Sixteen (16) foot public alley of Block Four (04) as platted in Rosebud
Addition to the City of Waterloo, Black Hawk County, State of Iowa, lying South and
West of a line Fifty (50) feet normally distant Southwesterly from and parallel with the
centerline of Broadway Street (formerly primary Highway No. U.S. 20), a One Hundred
(100) foot public right of way, as now established, and lying North of the South line of
Lots Four (4) and Twelve (12) of said Block Four (04);
And also;
Lot Twelve (12), Lot Thirteen (13) and Lot Fourteen (14) of Block Four (04) of Rosebud
Addition to 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 , 2008, by and among the CITY OF
WATERLOO, IOWA ("City"), LAVERNE J. LEHMAN ("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 MidPort Industrial Park 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 $272,000 ("Minimum Actual Value") until
termination of this Agreement. The parties hereto agree that construction of the
Improvements will be substantially completed on or before July 1, 2009.
2. The Minimum Actual Value herein established shall be of no further force
and effect, and this Minimum Assessment Agreement shall terminate four years from
the date of reaching this minimum value through assessment of the completed project.
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
the fifth year.
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
Timothy J. rley, May
ATTEST:
By:
Nancy Ecke , City Clerk
LAVERNE J. LEHMAN
By:
Laverne . Lehman
STATE OF IOWA )
) ss.
COUNTY OF BLACK HAWK )
On this dayof
_ , 2008, before me, a Notary
Public in and for the State of Iowa, person 1 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.
Nota Public
STATE OF IOWA )
ss.
COUNTY OF BLACK HAWK )i Acknowledged before me on Lq(i) t , 2008, by
L-d ee j Leih.0146.- as ( l t vt,_,,, of LAVERNE J.
LEHMAN.
(7)ett /V\ ( _e
Notary Public L 0
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 Two Hundred Seventy Two Thousand Dollars ($272,000 ) 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 , 2008, by
, Assessor for Black Hawk County, Iowa.
Notary Public
Project: Burg
CURA incentives
10-vear schedule tax rate taxes
Year value (-levy) abated 3-near schedule
1 $ 272,000 0.044177 $ 9,612.93 1 $ 272,000 0.044177 $ 12,016.16
2 $ 272,000 0.044177 $ 8,411.31 2 $ 272,000 0.044177 $ 12,016.16
3 $ 272,000 0.044177 $ 7,209.69 ,; 3 $ 272,000 0.044177 $ 12,016.16
4 $ 272,000 0.044177 $ 6,008.08 .r Total: $ 36,048.47
5 $ 272,000 0.044177 $ 4,806.46
6 $ 272,000 0.044177 $ 4,806.46
7 $ 272,000 0.044177 $ 3,604.85
8 $ 272,000 0.044177 $ 3,604.85
9 $ 272,000 0.044177 $ 2,403.23
10 $ 272,000 0.044177 $ 2,403.23 :.
$ 52,871.09 Saved in taxes for locating in CURA.
Taxes paid annually
$ 272,000 0.044177 $ 12,016.16
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