HomeMy WebLinkAboutLogan Plaza, LLP-Development Agreement-08.18.2008 DEVELOPMENT AGREEMENT
This Development Agreement (the "Agreement") is entered into as of
&yes /' , 2008, by and between Logan Plaza, LLP ("Developer"), 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. Developer is willing and able to finance and construct a building and
related improvements on property located in the Logan Plaza urban
renewal area.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants set forth herein,
the parties agree as follows:
1. Improvements by Developer. Developer shall undertake a project for
building improvements to the existing center, 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 $3,917,910. The Property, the Improvements, and all
site preparation and development-related work to make the Property usable for
Developer's purposes as contemplated by this Agreement are collectively referred to as
the "Project".
2. Timeliness of Construction. The parties agree that Developer's
commitment to undertake the Project and to construct the Improvements in a timely
manner constitutes a material inducement for the City to enter this Agreement, and that
without said commitment City would not have done so. Developer must substantially
complete construction of the Improvements by May 1, 2010. If Developer has not
obtained a building permit and begun in good faith the construction of the
Improvements upon the Property by May 1, 2009, this Agreement may be cancelled at
the sole option of City. If construction has not begun by May 1, 2009, 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, 2009 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 Developer, the requirement that construction is to be
substantially completed by May 1, 2010 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
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 Developer. Developer hereby
represents and warrants as follows:
A. Developer is not prohibited from consummating the transaction
contemplated in this Agreement by any law, regulation, agreement, instrument,
restriction, order or judgment.
B. Developer 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
Developer.
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 Developer, to Robert Rappaport, 11111 Excelsior Boulevard
Hopkins, MN 55343, facsimile: 952.931.2575.
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
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IN WITNESS WHEREOF, the parties have executed this Development
Agreement as of the date first set forth above.
CITY OF WATERLOO, IOWA
Timothy J. H y, Mayor Robert Rappaport f r og n Plaza, LLP
Attest: (
Nancy ckert y Clerk
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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"), Logan Plaza, LLP ("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 Logan Plaza 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 $3,917,910.00 ("Minimum Actual Value") until
termination of this Agreement. The parties hereto agree that construction of the
Improvements will be substantially completed on or before May 1, 2010. If it is not,
then the parties agree to execute an amendment to this Agreement that will extend the
dates specified in Section 2 below.
STATE OF IOWA )
) ss.
COUNTY OF BLACK HAWK )
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On this __ 2 _ day of , 2008, before me, a Notary Public in
and for the State of Iowa, personally ppeared 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 or 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.
of ry Public
7 N41- it
STATE OF AMihne30tc )
ss.
COUNTY OF (c.r veV)
Subscribed and sworn to before me on 1) 'fit- (3 2008 by
Robert Rappaport for Logan Plaza, LLP.
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t� ,.� LAN W. SARKIS Notary Public
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