The URL can be used to link to this page

Home My Public Portal AboutResolutions-2022-075Tiffin/436989-16/Hrg & App Amend Dev Agmt AA HOLD HEARING ON AND APPROVE AMENDED DEVELOPMENT AGREEMENT AND TAX INCREMENT PAYMENTS (DERS Development, LLC and DERS Tiffin, LLC) 436989-16 Tiffin, Iowa September 6, 2022 A meeting of the City Council of the City of Tiffin, Iowa, was held at 7:00 o'clock p.m., on September 6, 2022, at the City Hall Council Chambers, in the City, pursuant to the rules of the Council. The Mayor presided and the roll was called, showing members present and absent as follows: Present: Havens, Orris, Olney, Schnedler, Limkemann. Absent: None. The City Council investigated and found that notice of the intention of the Council to conduct a public hearing on an Amended Development Agreement between the City, DERS Development, LLC, and DERS Tiffin, LLC had been published according to law and as directed by the Council and that this is the time and place at which the Council shall receive oral or written objections from any resident or property owner of the City. All written objections, statements, and evidence heretofore filed were reported to the Council, and all oral objections, statements, and all other exhibits presented were considered. The following named persons presented oral objections, statements, or evidence as summarized below; filed written objections or statements, copies of which are attached hereto; or presented other exhibits, copies of which are attached hereto: (Here list all persons presenting written or oral statements or evidence and summarize each presentation.) There being no further objections or comments, the Mayor announced that the hearing was closed. -1- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Tiffin/436989-16/Hrg & App Amend Dev Agmt AA Council Member Limkemann introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Orris; and after due consideration thereof by the Council, the Mayor put the question upon the adoption of said resolution, and the roll being called, the following named Council Members voted: Ayes: Orris, Olney, Schnedler, Limkemann, Havens. Nays: None. Whereupon, the Mayor declared said resolution duly adopted, as follows: -2- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Tiffin/436989-16/Hrg & App Amend Dev Agmt AA RESOLUTION NO. 2022-075 Resolution Approving Amended Development Agreement with DERS Development, LLC and DERS Tiffin, LLC, Authorizing Tax Increment Payments and Pledging Certain Tax Increment Revenues to the Payment of the Agreement WHEREAS, the City of Tiffin, Iowa (the "City"), pursuant to and in strict compliance with all laws applicable to the City, and in particular the provisions of Chapter 403 of the Code of Iowa, has adopted an Urban Renewal Plan for the Tiffin Urban Renewal Area (the "Urban Renewal Area"); and WHEREAS, this Council has adopted an ordinance providing for the division of taxes levied on taxable property in the Urban Renewal Area pursuant to Section 403.19 of the Code of Iowa and establishing the fund referred to in Subsection 2 of Section 403.19 of the Code of Iowa, which fund and the portion of taxes referred to in that subsection may be irrevocably pledged by the City for the payment of the principal of and interest on indebtedness incurred under the authority of Section 403.9 of the Code of Iowa to finance or refinance in whole or in part projects in the Urban Renewal Area; and WHEREAS, the City has previously entered into a certain development agreement (the "Original Agreement") with DERS Development, LLC (the "Developer") and DERS Tiffin, LLC (the "Recipient") in connection with the development by the Developer of the certain real property through the installation of certain public infrastructure improvements (the "Project") and the subsequent development of new commercial facilities thereon; and WHEREAS, the City, the Developer and the Recipient now propose to amend the Original Agreement in order to increase the amount of incremental property tax payments to be provided to the Recipient from an amount not to exceed $12,000,000 to an amount not to exceed $15,000,000; and WHEREAS, an amended development agreement (the "Amended Agreement") has been prepared to set forth the new understanding between the City, the Developer and the Recipient; and WHEREAS, this City Council, pursuant to Section 403.9 of the Code of Iowa, has published notice, has held a public hearing on the Amended Agreement on September 6, 2022, and has otherwise complied with statutory requirements for the approval of said Agreement; and WHEREAS, Chapter 15A of the Code of Iowa ("Chapter 15A") declares that economic development is a public purpose for which a City may provide grants, loans, tax incentives, guarantees and other financial assistance to or for the benefit of private persons; and WHEREAS, Chapter 15A requires that before public funds are used for grants, loans, tax incentives or other financial assistance, a City Council must determine that a public purpose will reasonably be accomplished by the spending or use of those funds; and -3- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Tiffin/436989-16/Hrg & App Amend Dev Agmt AA WHEREAS, Chapter 15A requires that in determining whether funds should be spent, a City Council must consider any or all of a series of factors; NOW, THEREFORE, It Is Resolved by the City Council of the City of Tiffin, Iowa, as follows: Section 1. Pursuant to the factors listed in Chapter 15A, the Council hereby reaffiiiiis that: (a) The Project will add diversity and generate new opportunities for the Tiffin and Iowa economies; (b) The Project will generate public gains and benefits, particularly in the creation of new jobs and income, which are warranted in comparison to the amount of the proposed property tax incentives. Section 2. The City Council further finds and reaffirms that a public purpose will reasonably be accomplished by entering into the Amended Agreement and providing the incremental property tax payments to the Recipient. Section 3. The Amended Agreement is hereby approved, and the Mayor and City Clerk are hereby authorized and directed to execute and deliver the Amended Agreement on behalf of the City in substantially the form and content in which the Amended Agreement has been presented to this City Council. Such officers are also authorized to make such changes, modifications, additions or deletions as they, with the advice of bond counsel, may believe to be necessary, and to take such actions as may be necessary to carry out the provisions of the Amended Agreement. Section 4. As provided and required by Chapter 403 of the Code of Iowa, the City's obligations under the Amended Agreement shall be payable solely from a subfund (the "DERS Development Subfund") which has previously been established, into which shall be paid that portion of the income and proceeds of the Urban Renewal Tax Revenue Fund attributable to property taxes derived from the property described as follows: A PORTION OF THE SOUTH ONE-HALF OF SECTION 22, AND A PORTION OF THE NORTH ONE-HALF OF SECTION 27, ALL OF TOWNSHIP 80 NORTH, RANGE 7 WEST, OF THE FIFTH PRINCIPAL MERIDIAN, TIFFIN, JOHNSON COUNTY, IOWA, DESCRIBED AS FOLLOWS: BEGINNING AT THE CENTER OF SECTION 22, TOWNSHIP 80 NORTH, RANGE 7 WEST, OF THE FIFTH PRINCIPAL MERIDIAN, TIFFIN, JOHNSON COUNTY, IOWA; THENCE S01°21'28"E, ALONG THE EAST LINE OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION 22, A DISTANCE OF 1326.34 FEET, TO THE SOUTHEAST CORNER THEREOF; THENCE N89°38'45"E, ALONG THE NORTH LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 22, A DISTANCE OF 1181.03 FEET, TO ITS INTERSECTION WITH THE WEST RIGHT-OF-WAY LINE OF INTERSTATE NO. 380; THENCE S10°25'53"W, ALONG SAID WEST RIGHT-OF-WAY LINE, -4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Tiffin/436989-16/Hrg & App Amend Dev Agmt AA 397.76 FEET; THENCE S01°07124"E, ALONG SAID WEST RIGHT-OF-WAY LINE 700.00 FEET; THENCE S03°59'09"E, ALONG SAID WEST RIGHT-OF-WAY LINE, 200.25 FEET; THENCE S05°24'45"E, ALONG SAID WEST RIGHT-OF-WAY LINE, 401.12 FEET; THENCE S 12°26'00"E, ALONG SAID WEST RIGHT-OF-WAY LINE, 203.96 FEET; THENCE S01 °07'24"E, ALONG SAID WEST RIGHT-OF-WAY LINE, 300.00 FEET; THENCE S13°48'29"W, ALONG SAID WEST RIGHT-OF-WAY LINE, 310.48 FEET; THENCE S16°03'17"E, ALONG SAID WEST RIGHT-OF-WAY LINE, 158.10 FEET, TO ITS INTERSECTION WITH THE SOUTH LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 27, TOWNSHIP 80 NORTH, RANGE 7 WEST, OF THE FIFTH PRINCIPAL MERIDIAN; THENCE S89°20'll"W, ALONG THE SOUTH LINE OF SAID NORTHWEST QUARTER OF THE NORTHEAST QUARTER, 1148.78 FEET, TO THE SOUTHWEST CORNER THEREOF; THENCE S89°40'17"W, ALONG THE SOUTH LINE OF THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 27, A DISTANCE OF 369.54 FEET; THENCE N00°04'34"W, 275.95 FEET, TO THE SOUTHWEST CORNER OF SIMPSON'S FIRST ADDITION, IN ACCORDANCE WITH THE RECORDED PLAT THEREOF; THENCE N89°22'03"E, ALONG THE SOUTH LINE OF SAID SIMPSON'S FIRST ADDITION, 228.06 FEET; THENCE NOO°04'34"W, ALONG SAID SOUTH LINE, 114.00 FEET; THENCE N89°24'56"E, ALONG SAID SOUTH LINE, 77.63 FEET; THENCE NOO°35'56"W, 355.94 FEET, TO A POINT ON THE NORTH LINE OF SAID SIMPSON'S FIRST ADDITION; THENCE S88°47'21 "W, ALONG SAID NORTH LINE, 302.49 FEET, TO THE NORTHWEST CORNER THEREOF; THENCE N09°27'19"W, 290.15 FEET; THENCE N22°47'26"W, 249.51 FEET; THENCE N28°34'15"W, 303.20 FEET; THENCE N19°14'26"W, 50.00 FEET; THENCE S70°45'54"W, 181.75 FEET; THENCE S73°03'00"W, 167.46 FEET; THENCE N16°57'00"W, 103.39 FEET; THENCE S70°45'34"W, 150.74 FEET; THENCE SOUTHWESTERLY, 354.64 FEET, ALONG A 1750.00 FOOT RADIUS CURVE, CONCAVE NORTHWESTERLY, WHOSE 354.04 FOOT CHORD BEARS S76°33'54"W; THENCE N07°37'46"W, 468.90 FEET; THENCE N06°43'24"W, 216.96 FEET; THENCE N19°05'47"E, 163.29 FEET; THENCE NOO°17'48"W, 209.08 FEET; THENCE N34°2742"W, 154.31 FEET; THENCE N27°21'08"W, 182.12 FEET; THENCE N11°27'19"W, 29.36 FEET; THENCE N89°29'44"E, 557.97 FEET; THENCE NOO°30'16"W, 730.00 FEET; THENCE N89°29'44"E, 16.32 FEET; THENCE N88°12'50"W, 250.20 FEET; THENCE S89°29'44"W, 176.39 FEET; THENCE NOO°30'16"W, 100.00 FEET; THENCE N89°29'44"E, 12.50 FEET; THENCE NO°30'16"W, 330.14 FEET, TO A POINT ON THE NORTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 22; THENCE N89°30'03"E, ALONG SAID NORTH LINE, 1543.05 FEET, TO THE POINT OF BEGINNING. SAID URBAN RENEWAL AREA CONTAINS 160.87 ACRES, AND IS SUBJECT TO EASEMENTS AND RESTRICTIONS OF RECORD. Section 5. The City hereby pledges to the payment of the Agreement the DERS Development Subfund and the taxes referred to in Subsection 2 of Section 403.19 of the Code of Iowa to be paid into such Subfund, provided, however, that no payment will be made under the Agreement unless and until monies from the DERS Development Subfund are appropriated for such purpose by the City Council. Section 6. After its adoption, a copy of this resolution shall be filed in the office of the County Auditor of Johnson County to evidence the continuing pledging of the DERS Development Subfund and the portion of taxes to be paid into such Subfund and, pursuant to the direction of -5- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Tiffin/436989-16/Hrg & App Amend Dcv Agmt AA Section 403.19 of the Code of Iowa, the County Auditor shall allocate the taxes in accordance therewith and in accordance with the tax allocation ordinance referred to in the preamble hereof. Section 7. All resolutions or parts thereof in conflict herewith are hereby repealed. Passed and approved on September 6, 2022. Attest: City Cler Attest: Mayor On motion and vote the meeting adjourned. City Clerk Mayor -6- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA Tiffin/436989-16/Hrg & App Amend Dcv Agmt AA STATE OF IOWA. JOHNSON COUNTY CITY OF TIFFIN SS: I, the undersigned, Clerk of the aforementioned City, hereby certify that the foregoing is a true and correct copy of the minutes of the Council of the City relating to holding a public hearing and adopting a resolution to approve an Amended Development Agreement. WITNESS MY HAND hereto affixed this (� �. day of , 2022. City Clerk -7- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA DORSEY'M always ahead September 2, 2022 Via Email Doug Boldt City Administrator/City Hall Tiffin, IA Re: DERS Development, LLC and DERS Tiffin, LLC Amended Development Agreement Our File No. 436989-16 Dear Doug: Attached please find proceedings covering the public hearing on the Amended Development Agreement with DERS Development, LLC, followed by a resolution approving the Amended Development Agreement and pledging certain incremental property tax revenues to the payment of the City's obligations thereunder. We would appreciate receiving one fully executed copy of these proceedings as soon as they are available. Please contact John Danos, Erin Regan, Severie Orngard, or me if you have questions. Kind regards, Amy Bjork Attachments cc: Abigail Hora 801 Grand Avenue ( Suite 41001 Des Moines, IA 150309-27901 T 515.283.10001 F 515.283.10601 dorsey.com