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HomeMy WebLinkAboutAdvanced Heat Treat Corp.-Development Agreement-11.20.2006 11.V-D�6 ' -6ree72-12"144'. DEVELOPMENT AGREEMENT This Agreement is made and entered into this /c' day of 4' 2006, by and between Advanced Heat Treat Corp. hereafter called Company, and the City of Waterloo, Iowa, hereinafter called City. WHEREAS, 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, and WHEREAS, Company its willing and able to construct an approximate 28,000 square foot expansion, with approximately $2,000,000 in construction costs, at their current facility at 2839 Burton Avenue, located in the MidPort America Business Park Development Area, described as Parcel 89-13-10-227-008, legally described on attached Exhibit "B", and NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS HEREINAFTER CONTAINED, Company and City agree as follows: 1. The City agrees to property tax rebates 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 - 50 % Rebate g. Year Seven - 30 % Rebate for any value over the January 1, 2006 value of $323,690.00. The taxable value of the property as a result of development must be increased by a minimum of 10% and increase the annual tax by a minimum of $500.00. This program is not applicable to (i.e., rebates will not be given for) the Self-Supported Municipal Improvement District levy or other special tax assessments and/or the debt service levy. 2. MINIMUM ASSESSMENT AGREEMENT. Company acknowledges and agrees that it will pay when due all taxes and assessments, general or special, and all other charges whatsoever levied upon or assessed or placed against the Property, and further agrees that prior to the date set forth in Section 2 of Exhibit A, it will not cause a reduction in the real property taxes paid with respect to the Project below the amount of $2,323,690 Dollars ("Minimum Actual Value"). Company agrees to sign said attached Exhibit "A" at the closing for the project agreement. DEVELOPMENTAL AGREEMENT Page 2 3. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon the successors and assigns of Company. IN WITNESS WHEREOF, the parties have executed this Agreement the date and year written above. By: /iit1 , /L f ` ' [ •' For Company Gary L. Sharp, President/CEO Date CITY OF WATERLOO, IOWA By: /l- Po - oG Timothy J. H , Mayor Date ATTEST: /l ' ab -O� Nancy cke ity Clerk Date EXHIBIT "A" MINIMUM ASSESSMENT AGREEMENT TI-IS MINIMUM ASSESSMENT AGREEMENT, dated as of this 4 % day of /1�^v ebp�L , 2006, by and among the CITY OF WATERLOO, IOWA, ("City"), (.�:v et rit' cQ /.J, + T4.494c1" , ("Company"), and the COUNTY ASSESSOR of the City of Waterloo, Iowa ("Assessor"). WITNESSETH: WHEREAS, on or before the date hereof the City and Company have entered into an Agreement for development of Land for Private Development ("Agreement") regarding certain real property located in the City; and WHEREAS, it is contemplated that pursuant to said Agreement, the Company will undertake the development of an area ("Project") within the City and within the "MidPort America Business Park Development Area." WHEREAS, pursuant to Iowa Code section 403.6(1997), as amended, the City and the Company desire to establish a minimum actual value for the land and building thereon pursuant to the Agreement and applicable only to the development, which shall be effective upon substantial completion of the development 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 building as to the development only; and WHEREAS, the City and the Assessor have reviewed the preliminary plans and specifications for the improvements which it is contemplated will be erected as a part of the development; NOW, THEREFORE, the parties to this Minimum Assessment Agreement, 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 above-referenced improvements by the Company on the property described in Exhibit "B" attached hereto, the minimum actual taxable value which shall be fixed for assessment purposes for the land and improvements to be constructed thereon by the Company as a part of the development shall not be less than $2,323,690 ("Minimum Actual Value") until termination of this Minimum Assessment Agreement. The parties hereto agree the construction of the improvements will be substantially completed on or before January 1, 2007. 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, 2020. Nothing herein shall be deemed to waive the Developer's rights under Iowa Code section 403.6(19)(1997), 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 Company seek to reduce 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 Company to contest its taxable valuations in full, commencing with the assessment of January 1, 2021. 3. This Minimum Assessment Agreement shall be promptly recorded by the City with the Recorder of Black Hawk County, Iowa, the City paying all costs of recording. 4. Neither the preambles nor provisions of this Minimum Assessment Agreement are intended to, or shall be construed as, modifying the terms of the Agreement between the City and the Company. 5. This Minimum Assessment Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. THE CITY OF WATERLOO By: Timothy J. urley, M or ATTEST: By: ca„,k Nancy ckert, ity Clerk By: A / , For Company Gary L. Sharp, President/CEO EXHIBIT "B" Legal Description AIRLINE BURTON INDUSTRIAL PARK LOT 6, ALL IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, STATE OF IOWA. STATE OF IOWA ) COUNTY OF BLACK HAWK ) On this I N4j-- day of 01 1liti-t4>1/4--- , 2006, 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. '11..-A-A....x,4-14)4CL.--4 , otary Public in and for the Sta of Iowa 1 STATE OF IOWA, BLACK HAWK COUNTY, ss: On this 16 day of November , 2006, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Gary L. Sharp to me personally known, who being by me duly sworn, did say that they are the President/CEO _ of the corporation executing the within and foregoing instrument to which this is attached; that said instrument was signed on behalf of the corporation by authority of its Board of Directors; and that Gary L. Sharp an officer acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the corporation, by it and by them voluntarily executed. (2,471-a.--A...c.c......-)L- Notary Public in and for sai State of Iowa " J_ CONSTANCE R. MERRON COMMISSION NO.222287 a a MY COMMISSION EXPIRES 'o w* MAY 3,2008 Document Number: 2007020035 CITY OF WATERLOO L Date: Mar 26,2007 4:30:00 pm Aud Fee: 0.00 Rec Fee: 5.00 P Trans Tax: 0.00 Rec Management Fee: 1.00 E-Com Fee: 1.00 Non-Standard Page Fee: 0.00 (J) Filed for record in Black Hawk County,Iowa Judith A.McCarthy,County Recorder This Resolution prepared by Nancy Eckert, City Clerk, 715 Mulberry Street, Waterloo, Iowa. RESOLUTION NO. 2006-1022 RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A DEVELOPMENTAL AGREEMENT BETWEEN ADVANCED HEAT TREAT AND THE CITY OF WATERLOO. WHEREAS, Advanced Heat Treat proposes to construct a $2 million, 28 , 000 sq. ft . expansion on property generally located at 2839 Burton Avenue, and WHEREAS, Advanced Heat Treat and the City of Waterloo, Iowa, feel it is in the best interest of both parties to execute a Development Agreement between the parties regarding the development and use of said real estate as well as other matters, and WHEREAS, the City of Waterloo declares that this project qualifies for incentives as authorized under Chapter 15A and Chapter 403 in the Code of Iowa and the Downtown Waterloo Urban Renewal and Redevelopment Plan, and WHEREAS, the City Council of the City of Waterloo, Iowa, has considered the Developmental Agreement, a copy of which is hereto attached, and deems it in the best interest of the City of Waterloo, Iowa, to enter into said Agreement . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATERLOO, IOWA, that the Developmental Agreement between Advanced Heat Treat and the City of Waterloo, Iowa, a copy of which is hereto attached, is hereby approved and the Mayor and City Clerk are hereby authorized to execute said Agreement on behalf of the City of Waterloo, Iowa. PASSED AND ADOPTED this 20th day of November, 2006 . Tim Hurley, Mayo ATTEST: Nancy Ecker , CMC City Clerk IditiV'A R Q it Ya N Document Number: 2007020036 CITY OF WATERLOO Date: Mar 26,2007 4:30:00 pm Aud Fee: 0.00 Rec Fee: 35.00 P Trans Tax: 0.00 Rec Management Fee: 1.00 E-Com Fee: 1.00 Non-Standard Page Fee: 0.00 CFiled for record-in Black Hawk County,Iowa Judith A.McCarthy,County Recorder Prepared by Q ris Wendland, Clark, Butler, Walsh & Hamann, PO Box 596, Waterloo, IA 50704 319.234.5701 r DEVELOPMENT AGREEMENT This Agreement is made and entered into this /lp day of ,/1,1,,,,«,,.,,c ia 2006, by and between Advanced Heat Treat Corp. hereafter called Company, and the City of Waterloo, Iowa, hereinafter called City. WHEREAS, 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, and WHEREAS, Company is willing and able to construct an approximate 28,000 square foot expansion, with approximately $2,000,000 in construction costs, at their current facility at 2839 Burton Avenue, located in the MidPort America Business Park Development Area, described as Parcel 89-13-10-227-008, legally described on attached Exhibit "B", and NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS HEREINAFTER CONTAINED, C:ompany and City agree as follows: 1. The City agrees to property tax rebates 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 - 50 % Rebate g. Year Seven 30 % Rebate for any value over the January 1, 2006 value of $323,690.00. The taxable value of the property as a result of development must be increased by a minimum of 10% and increase the annual tax by a minimum of $500.00. This program is not applicable to (i.e., rebates will not be given for) the Self-Supported Municipal Improvement District levy or other special tax assessments and/or the debt service levy. 2. MINIMUM ASSESSMENT AGREEMENT. Company acknowledges and agrees that it will pay when due all taxes and assessments, general or special, and all other charges whatsoever levied upon or assessed or placed against the Property, and further agrees that prior to the date set forth in Section 2 of Exhibit A, it will not cause a reduction in the real property taxes paid with respect to the Project below the amount of $2,323,690 Dollars ("Minimum Actual Value"). Company agrees to sign said attached Exhibit "A" at the closing for the project agreement. DEVELOPMENTAL AGREEMENT Page 2 3. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon the successors and assigns of Company. IN WITNESS WHEREOF, the parties have executed this Agreement the date and year written above. By: 0# " tizOt t /J /Y1J o(� For Company Gary L. Sharp, President/CEO Date CITY OF WATERLOO, IOWA By: may- ///` Timothy . y, Mayor Date ATTEST: // - PO -oc Nancy'I Clerk Date EXHIBIT "A" MINIMUM ASSESSMENT AGREEMENT THIS MINIMUM ASSESSMENT AGREEMENT, dated as of this / day of net,con.f ;.>?\ , 2006, by and among the CITY OF WATERLOO, IOWA, ("City"), -4 dzenvi ect ("Company"), and the COUNTY ASSESSOR of the City of Waterloo, Iowa ("Assessor"). WITNESSETH: WHEREAS, on or before the date hereof the City and Company have entered into an Agreement for development of Land for Private Development ("Agreement") regarding certain real property located in the City; and WHEREAS, it is contemplated that pursuant to said Agreement, the Company will undertake the development of an area ("Project") within the City and within the "MidPort America Business Park Development Area." WHEREAS, pursuant to Iowa Code section 403.6(1997), as amended, the City and the Company desire to establish a minimum actual value for the land and building thereon pursuant to the Agreement and applicable only to the development, which shall be effective upon substantial completion of the development 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 building as to the development only; and WHEREAS, the City and the Assessor have reviewed the preliminary plans and specifications for the improvements which it is contemplated will be erected as a part of the development; NOW, THEREFORE, the parties to this Minimum Assessment Agreement, 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 above-referenced improvements by the Company on the property described in Exhibit "B" attached hereto, the minimum actual taxable value which shall be fixed for assessment purposes for the land and improvements to be constructed thereon by the Company as a part of the development shall not be less than $2,323,690 ("Minimum Actual Value") until termination of this Minimum Assessment Agreement. The parties hereto agree the construction of the improvements will be substantially completed on or before January 1, 2007. 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, 2020. Nothing herein shall be deemed to waive the Developer's rights under Iowa Code section 403.6(19)(1997), 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 Company seek to reduce 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 Company to contest its taxable valuations in full, commencing with the assessment of January 1, 2021. 3. This Minimum Assessment Agreement shall be promptly recorded by the City with the Recorder of Black Hawk County, Iowa, the City paying all costs of recording. 4. Neither the preambles nor provisions of this Minimum Assessment Agreement are intended to, or shall be construed as, modifying the terms of the Agreement between the City and the Company. 5. This Minimum Assessment Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. THE CITY OF WATERLOO By: Timoth . urley, M or ATTEST: Nancy Ecke , ity Clerk al/7-1,e,k By: u For Company Gary L. Sharp, President/CEO 7 n, EXHIBIT "B" Legal Description AIRLINE BURTON INDUSTRIAL PARK LOT 6, ALL IN THE CITY OF WATERLOO, BLACK HAWK COUNTY, STATE OF IOWA. STATE OF IOWA ) COUNTY OF BLACK HAWK ) On this day of \i t(l , 2006, before me a Not ary 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. , • CMG' Notary Public in and or the Sta e` f Fowp ; '' , STATE OF IOWA, BLACK HAWK COUNTY, ss: On this 16 day of November , 2006, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared Gary L. Sharp to me personally known, who being by me duly sworn, did say that they are the President/CEO of the corporation executing the within and foregoing instrument to which this is attached; that said instrument was signed on behalf of the corporation by authority of il:s Board of Directors; and that Gary L. Sharp an officer acknowledged the execution of the foregoing instrument to be the voluntary act and deed of the corporation, by it and by them voluntarily executed. Notary Public in and for said t to of Iowa CONSTANCE R. MERRON COMMISSION NO.222287 a MY COMMISSION EXPIRES MAY 3,2008 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 Million Three Hundred Twenty Three Thousand Six Nine Hundred Ninety Dollars ($2,323,690.00) in the aggregate, until termination of this Minimum Assessment Agreement pursuant to the terms hereof. 7,//;-;_/'. j )____ Assessor for Black Hawk County, Iowa /2 - // o4 Date STATE OF IOWA ) ) COUNTY OF BLACK HAWK ) Subscribed and sworn to before me by .ii �4- , Assessor for Black Hawk County, Iowa. ii7 -, I" Notary Public in and for the State of Iowa Date ` •m DEBORAH t.BOECKMANN WY COMMISSION NO. 185788 a MY COMMI"aiON EXPIRES N.y� V i _.