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HomeMy WebLinkAboutIOWA HEARTLAND COMMUNITY INVESTMENT FUND (RECORDED) TAX REBATE AGREEMENT 2026-03551 RECORDED:03/19/2026 11:30:07 AM RECORDING FEE:$7.00 REVENUE TAX:$ COMBINED FEE:$7.00 SANDIE L.SMITH, RECORDER BLACK HAWK COUNTY,IOWA Prepared by Lexi Schneider, City of Waterloo, 715 Mulberry St. Waterloo, IA 50703 (319)291-4366 at-After recording, send to: City of Waterloo AFFIDAVIT STATE OF IOWA, COUNTY OF BLACK HAWK, ss: The undersigned, being first duly sworn on oath, deposes and states as follows: 1. I am Community Planning and Development Director for the City of Waterloo, Iowa. I am familiar with the terms of a certain Development Agreement (the "Agreement") recorded January 9, 2023 as Doc. No. 2023-00009751 by and between WBM, LLC, (the "Developers") and the City of Waterloo, Iowa (the "City"). The Agreement imposed certain development obligations on the Developers for completion of Phase II of the development agreement. 2. I am personally familiar with the project covered by the Agreement, and I acknowledge that the project work was completed and that Developers and their assignees are therefore released from their obligations thereunder. 3. I execute this affidavit to aid in clearing title to real property I gaily scribed as: "Lot 6, South Port 2nd Addition" in the City of Waterloo, Iowa." Dated March `q , 2026. Noel Anderson Subscribed and sworn to before me on March 1 , 2026. euge LEXI SCHNEIDER •° S COMMISSION NO.869089 mnfitch- L/h *m, jm,* MY COMMISSION EXPIRES row, NOVEMBER 21,2028 Notary Public Docusign Envelope ID: 2BA02A85-E195-4590-93B8-E23065DB8755 2026-03553 RECORDED: 03/ 19/2026 11:30:09 AM RECORDING FEE: $22.00 REVENUE TAX: $ COMBINED FEE: $22.00 SANDIE L. SMITH, RECORDER BLACK HAWK COUNTY, IOWA C Cdk -O Prepared Bv: Austin J. McMahon, Lance & McMahon, PLC, 222 1`t St. E., Independence, IA 50644; 319-334-4488 TAX REBATE AGREEMENT This Tax Rebate Agreement (the "Agreement") is entered into as of March 2 , 2026 by and between Iowa Heartland Community Investment Fund, LLC (the "Company") and the City of Waterloo, Iowa (the "City"). RECITALS A. WHEREAS, Company has purchased certain Property, as described in Exhibit A to this Agreement, that was the subject of a Development Agreement ("DA") entered into on or about February 17, 2014, and recorded with the Black Hawk County Recorder as File No. 2014- 00018869. B. WHEREAS, said DA provided for yearly tax rebates equal to 50% of the taxes paid on the taxable value of the Property over and above the base value of $33,600.00. C. WHEREAS, in consideration of Company's purchase of the Property, the parties to this Agreement desire to allow Company to avail itself of tax rebates on 4.5 years of property taxes paid with respect to the Property. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows: 1 . Tax Rebates. City agrees to rebate property taxes paid in respect of the Property as follows: Year 1 — Year 4.5 : 50% rebate Docusign Envelope ID:2BA02A85-E195-4590-93B8-E23065DB8755 for any taxable value over the January 1, 2013 land value of $33,660 for the Property. Rebates are payable in respect of a given year only to the extent that Company has actually paid general property taxes due and owing for such year. To receive rebates for a given year, Company must,within twelve(12)months after the tax payment due date, submit a completed rebate request to City on the form provided by or otherwise satisfactory to City. 2. Limitations on Payment of Rebates. A. Each payment of a Rebate is subject to annual appropriation by the city council each fiscal year. City has no obligation to make any payments to Company as contemplated under this Agreement until the city council annually appropriates the funds necessary to make such payments. The right of non-appropriation reserved to City in this paragraph is intended by the parties, and shall be construed at all times, so as to ensure that City's obligation to make future payments of Rebates shall not constitute a legal indebtedness of City within the meaning of any applicable constitutional or statutory debt limitation prior to the adoption of a budget which appropriates funds for the payment of that installment or amount. In the event that any of the provisions of this Agreement are determined by a court of competent jurisdiction or by City's bond counsel to create, or result in the creation of, such a legal indebtedness of City, the enforcement of the said provision shall be suspended,and the Agreement shall at all times be construed and applied in such a manner as will preserve the foregoing intent of the parties,and no Event of Default by City shall be deemed to have occurred as a result thereof. If any provision of this Agreement or the application thereof to any circumstance is so suspended, the suspension shall not affect other provisions of this Agreement which can be given effect without the suspended provision. To this end the provisions of this Agreement are severable. B. City shall have no obligation to make a payment of a Rebate to Company if at any time during the term hereof City fails to appropriate funds for payment or City receives an opinion from its legal counsel to the effect that the use of Tax Increments resulting from the Property and Improvements to fund a Rebate payment to Company, is not, based on a change in applicable law or its interpretation since the date of this Agreement, authorized or otherwise an appropriate urban renewal activity permitted to be undertaken by City under the Urban Renewal Act or other applicable provisions of the Code, as then constituted or under controlling decision of any Iowa court having jurisdiction over the subject matter hereof, or City's ability to collect Tax Increment from the Improvements and Property is precluded or terminated by legislative changes to Iowa Code Chapter 403. Upon occurrence of any of the foregoing circumstances, City shall promptly forward notice of the same to Company. If the circumstances continue for a period during which two (2) annual Rebate payments would otherwise have been paid to Company under the terms of this Agreement, then City may terminate this Agreement, without penalty or other liability to City, by written notice to Company. C. For purposes of this Agreement, "Tax Increments" shall mean the property tax revenues on the Improvements and Property received by and made available to City for deposit in an account maintained under this Agreement, the provisions of Iowa Code§ 403.19 and the ordinance governing the Urban Renewal Plan. Docusign Envelope ID:2BA02A85-E195-4590-93B8-E23065DB8755 D. It is recognized and agreed that the ability of the City to perform the obligations described in this Agreement, including but not limited to the Rebate payments, might be subject to completion and satisfaction of certain separate City Council actions and legal proceedings required under Iowa Code Chapter 403 or other law, including local ordinances, including, but not limited to, the holding of public hearings. 3. Company agrees to defend, hold harmless, and indemnify the City from any liability, obligation, or damages arising from claims made or actions brought any person or entity asserting that he, she, or it is entitled to property tax rebate payments on account of property taxes paid with respect to the Property. IN WITNESS WHEREOF,the parties have executed this Tax Rebate Agreement by their duly authorized representatives as of the date first set forth above. CITY OF WATERLOO, IOWA IOWA HEARTLAND COMMUNITY INVESTMENT FUND, LLC "—Signed by: By64.61, J'Gt,St,t, \- jBBbtasen, Mayor Ali Parrish, Executive Director "----Signed by: Attest Fttalt KF lehle, City Clerk Docusign Envelope ID:2BA02A85-E195-4590-93B8-E230650B8755 EXHIBIT A Description of Property Lots 1-8,St.Joseph's Square,in the City of Waterloo,Black Hawk County,Iowa. (Also identified as Parcel Nos. 8913-24-353-009 through 8913-24-353-016,inclusive,and locally known as 301,303,305,307,309,and 311 E.3rd Street,Waterloo,Iowa.)