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HomeMy WebLinkAbout2025-636-11.03.2025.doc (RECORDED)Docusign Envelope ID: 1AAO1DEC-56A7-41BA-8480-C42A884085C3 Prepared by LeAnn M. Even, Deputy City Clerk, City of Waterloo, 715 Mulberry Street, Waterloo, IA 50703, (319) 291-4323. RESOLUTION NO. 2025-636 RESOLUTION APPROVING A DEVELOPMENT AGREEMENT WITH 205 E. 4TH LLC (JSA DEVELOPMENT) FOR THE APPROXIMATE $56 MILLION REDEVELOPMENT OF THE HISTORIC BLACK'S BUILDING INTO AN APPROXIMATE 130-ROOM NATIONAL BRAND HOTEL, WITH UP TO TWENTY-FIVE RESIDENTIAL UNITS, AND COMMERCIAL SPACE, TO PROVIDE REIMBURSEMENT GRANT FUNDS IN THE AMOUNT OF $14 MILLION, WITH NO TAX REBATES OR ABATEMENT, AND A MANAGEMENT AGREEMENT FOR THE PARK AVENUE PARKING RAMP, WITH A NEW MINIMUM ASSESSED VALUE OF $8 MILLION FOR THE BLACK'S BUILDING, AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID DOCUMENTS. WHEREAS, the City of Waterloo, Iowa seeks to promote downtown revitalization, adaptive reuse of historic structures, private investment, and expanded lodging and residential options consistent with adopted plans and policies; and WHEREAS, 205 E. 4th LLC, affiliated with JSA Development, proposes to redevelop the historic Black's Building to include: An approximately 130-room national brand hotel, Up to twenty-five (25) residential units, and Ground -floor and/or upper -level commercial space, together with associated building systems, life -safety, code, and facade improvements, and site work; and WHEREAS, the City and JSA Development have negotiated a Development Agreement that provides for City reimbursement grant funds in a total amount not to exceed $14,000,000.00 for eligible Project costs, disbursed on a reimbursement basis upon achievement of defined milestones and submission of acceptable documentation, with no property tax rebates or tax abatement of any kind; and WHEREAS, the Agreement further provides for the establishment of a new minimum assessed value for the Black's Building property in the amount $8,000,000.00, effective as set forth in the Agreement, to be recognized by the Black Hawk County Assessor, and enforceable in accordance with Iowa law; and WHEREAS, in support of the Project's operations and public parking needs, the City and JSA Development have also negotiated a management agreement for the Park Avenue parking ramp (the "Ramp Management Agreement"), establishing terms for management, operations, maintenance standards, insurance, reporting, and public access, without conveying ownership; and WHEREAS, City staff has reviewed the Development Agreement and the Ramp Management Agreement and recommends approval, and the City Council finds that the Project and agreements serve a valid public purpose and are consistent with City policies. Docusign Envelope ID: 1AA01DEC-56A7-41BA-8480-C42A884085C3 Resolution 2025-636 Page 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Waterloo, Iowa, that: 1. The City Council hereby approves the Development Agreement between the City and 205 E. 4th LLC (JSA Development) as outlined. 2. The City hereby approves reimbursement grant funds in a total amount not to exceed $14,000,000.00 for eligible Project costs as defined in the Agreement, with no tax rebates or tax abatements. 3. The City approves and adopts a minimum assessed value of $8,000,000.00 for the Black's Building property, as more fully set forth in the Agreement. 4. The Mayor and City Clerk are authorized and directed to execute said documents on behalf of the City of Waterloo, Iowa. PASSED AND ADOPTED this 3rd day of November 2025. DocuSigned by: L ttAAlit �aV'f ATTEST: Signed by: Wit, Feld& I‘Ceitey retetile;Atity Clerk ED0525D70AAC0449... Quentin Hart Mayor