HomeMy WebLinkAboutLeondorf, LLC-Development Agreement-06.25.2007 - 5 o7
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DEVELOPMENT AGREEMENT
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This Agreement is made and entered into this e9.5 day of —J—CAA& , 2007, by
and between Leondorf LLC hereafter called Developer, and the City of
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 not needed for
current or future public purposes so as to encourage that goal, and
WHEREAS, Developer is willing and able to construct a new commercial building, raising
the taxable value of the site by a minimum of$300,000, through the acquisition of the property to
be sold, legally described as attached, and abutting property, and
WHEREAS, said construction project shall be begun within 8 months and be finished
within 24 months 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 new commercial building on the property to be
conveyed, in combination with other abutting property, raising the current taxable
value by a minimum of $300,000 within a 24-month period, from the date of this
agreement. This construction would repay the difference in the conveyance price and
the estimated value per the assessed values of the area ($64,186.39), within a five
(5) year period. 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 eight (8)
months of the date of transfer and be completed within twenty-four (24) months to
meet requirements to repay difference as stated herein between estimated value and
conveyance price through taxes within a five (5) year period. 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 or
Developer will pay full value of property as appraised, at Developer's cost by a
certified appraiser, or by the average price per square foot of abutting property as
calculated by City staff ($64,186.39). Developer agrees to sign all necessary
documents for said reversion. If construction is not begun, at the end of eight (8)
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.
Developer may agree to pay balance due for the real estate based on a value per
square foot ($64,186.39) for all said real estate as an option to the reversion of the
real estate. 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 commercial building redevelopment and/or
expansion, as previously described, any and all reversion or repurchase rights
granted to City, relating to any or all of the property described on attached plat of
survey shall terminate. Partial terminations of Developer's obligations shall occur on
each lot as it is constructed.
5. NOTICE: All notices, requests, and other communication permitted or required herein
shall be in writing and shall 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
For Developer:
Leondorf LLC
Gene Leonhart
209 Washington Street
Denver, Iowa 50622
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: � _ 023—a 7
F• Dev: o'-r Date
CITY OF WATERLOO, IOWA
By: 6 - 2- 5 - o7
Tim Hurley, Mayor Date
ATTEST:
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4 - as -al
Nancy ckert, Clerk Date
EXHIBIT "B"
MINIMUM ASSESSMENT AGREEMENT
THIS MINIMUM ASSESSMENT AGREEMENT, dated as of this day of
2007, by and among City of Waterloo, Iowa ("City"),
("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 "Agreement") regarding certain real property
located in the City; and
WHEREAS, it is contemplated that pursuant to said Agreement, the Developer
will undertake the redevelopment and/or expansion of an area ("Project") within the
City, and
WHEREAS, pursuant to Iowa Code section 403.6, as amended, the City and the
Developer desire to establish ,a minimum actual value for the land and improvements
constructed 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 Developer on the property described in Exhibit "A" 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 Developer as a part of
the development shall not be less than $300,000.00 ("Minimum Actual Value") until
termination of this Minimum Assessment Agreement. The parties hereto agree
construction of the improvements will be substantially completed on or before
January 1, 2010.
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,
2015.
Nothing herein shall be deemed to waive the Developer's rights under
Iowa Code section 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 to reduce the actual value
assigned below the Minimum Actual Value established herein during the term of this
Agreement.
The County shall not unreasonably withhold its consent to permit the
Developer to contest its taxable valuations in full, commencing with the assessment of
January 1, 2016.
3. This Minimum Assessment Agreement shall be promptly recorded by the
City with the Recorder of Black Hawk County, Iowa. The Developer shall pay 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 County and the Developer.
5. This Minimum Assessment Agreement shall inure to the benefit of and be
binding upon the successors and assigns of the parties.
IN WITNESS WHEREOF, the parties have entered this Minimum Assessment
Agreement as of the date first written above.
[signatures on next page]
BLACK HAWK COUNTY, IOWA
Timothy J. Hur , ayor
Attest:
By• Lr'�
Nancy Ec ert, Ci lerk
DEVELOPER
By
2'..r.r,,ervt.Z7r
STATE OF IOWA )
ss.
COUNTY OF BLACK HAWK )
On this )-'51 day of_ , 2007, before me, a Notary Public in
and for the State of Iowa, personal) 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 )
On this day of , 2007, before me, the undersigned,
a Notary Public in and for the said county and state, personally appeared
, to me personally known, who being by me duly sworn, did say
that he is the _, respectively, 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 the said person
acknowledged the execution of the foregoing instrument to be the voluntary act and
deed of the corporation, by it and by him voluntarily executed.
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 Three Hundred Thousand Dollars ($300,000.00) 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
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