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HomeMy WebLinkAboutLogan Plaza, LLP-Development Agreement-08.18.2008 (2) 4— r ite DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of fau us d' 1 I' , 2008, by and between Logan Plaza, LLP ("Developer"), and the Citf 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 construct on the Property a retail building consisting of approximately 7,500 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 $1,021,320. 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 December 1, 2009. If Developer has not obtained a building permit and begun in good faith the construction of the Improvements upon the Property by December 1, 2008, this Agreement may be cancelled at the sole option of City. If construction has not begun by December 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 December 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 Developer, the requirement that construction is 'to be substantially completed by December 1, 2009 shall be tolled for a period of time equal to the period of such stoppage or delay, and 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 following the date of deposit if mailed by United States registered or certified mail, 3 CITY OF WATERLOO, IOWA By: Timothy J. Hurle yor Robert Rappaport for l_ ga Plaza, LLP Attest. Nancy Eck ity Clerk 5 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 $1,021,320.00 ("Minimum Actual Value") until termination of this Agreement. The parties hereto agree that construction of the Improvements will be substantially completed on or before December 1, 2009. 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 ) On this 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 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-I.91A/A. My n»P$0-tc ) ) ss. COUNTY OF Co_rvev ) Subscribed and sworn to before me on 'c 2008 by Robert Rappaport for Logan Plaza, LLP. •�" LAN W. SARKIS � + +�, Notary Public , Y NOTARY PUBLIC-MINNESOTA - 5 ";0 My C:,+i wsaian Expires Jan.31,2010 3