HomeMy Public PortalAboutResolutions-2016-072 DocuSign Envelope ID:2229A71F-OC3E-472D-A9DE-E33376BE2379
Tiffin/436989-16/Dev.Agmt-Hold Hrg
HOLD HEARING ON AND APPROVE
DEVELOPMENT AGREEMENT AND
TAX INCREMENT PAYMENTS
(TAT, LLC)
436989-16
Tiffin, Iowa
November 29, 2016
A meeting of the City Council of the City of Tiffin, Iowa, was held at 6:00 p.m., on
November 29, 2016, at the City Hall Council Chambers, Tiffin, Iowa,pursuant to the rules of the
Council.
The Mayor presided and the roll was called, showing members present and absent as
follows:
Present: Peggy Upton, Jim Bartels, Al Havens, Jo Kahler.
Absent: Mike Ryan.
The City Council investigated and found that notice of the intention of the City Council
to conduct a public hearing on a Development Agreement between the City and TAT, LLC, had
been published according to law and as directed by the City Council and that this is the time and
place at which the City 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 City 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.) NONE.
There being no further objections or comments, the Mayor announced that the hearing
was closed.
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Council Member Upton introduced the resolution next hereinafter set out and moved its
adoption, seconded by Council Member Kahler; 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: Upton, Bartels, Havens, Kahler.
Nays: None.
Whereupon, the Mayor declared said resolution duly adopted, as follows:
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RESOLUTION 2016-072
Resolution Approving Development Agreement with TAT, LLC, Authorizing
Annual Appropriation 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 City 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 (the "Urban Renewal Tax Revenue Fund"), 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 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, a certain development agreement (the "Agreement") between the City and
TAT, LLC (the "Developer") has been prepared in connection with an urban renewal project (the
"Project") (i) the preliminary infrastructure engineering and land use planning associated with
the Park Place development project, which is anticipated to include the extension of
Forevergreen Road and Oakdale Boulevard and the realignment of Park Road; and (ii) site
preparation for the realignment of Park Road in the Urban Renewal Area; and
WHEREAS, under the Agreement, the City would provide annual appropriation tax
increment payments to the Developer in a total amount not exceeding $500,000; 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 Agreement on November 29, 2016, and has
otherwise complied with statutory requirements for the approval of the 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
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 City Council hereby
finds that:
(a) The Project will add diversity and generate new opportunities for the
Tiffin and Iowa economies;
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(b) The Project will generate public gains and benefits, particularly in the
creation of new jobs, which are warranted in comparison to the amount of the proposed
financial incentives.
Section 2. The City Council further finds that a public purpose will reasonably be
accomplished by entering into the Agreement and providing the incremental property tax
payments to the Developer.
Section 3. The Agreement is hereby approved and the Mayor and City Clerk are
hereby authorized and directed to execute and deliver the Agreement on behalf of the City, in
substantially the form and content in which the Agreement has been presented to this City
Council, and 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 Agreement with Council approval.
Section 4. Some or all of the payments by the City under the Agreement may be
subject to annual appropriation by the City Council, in the manner set out in the Agreement. As
provided and required by Chapter 403 of the Code of Iowa, the City's obligations under the
Agreement shall be payable solely from the income and proceeds of the Urban Renewal Tax
Revenue Fund attributable to property taxes derived from the taxable property in the Urban
Renewal Area.
Section 5. The City hereby pledges to the payment of the Agreement the Urban
Renewal Tax Fund and the taxes referred to in Subsection 2 of Section 403.19 of the Code of
Iowa to be paid into such Fund, provided, however, that no payment will be made under the
Agreement unless and until monies from the Urban Renewal Tax Fund 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 Urban Renewal
Tax Fund and the portion of taxes to be paid into such Fund and, pursuant to the direction of
Section 403.19 of the Code of Iowa, the 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 this 29th day of November 2016.
Sfwl.
Mayor
Attest:
City Clerk
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On motion and vote the meeting adjourned.
Sfc.
Mayor
Attest:
City Clerk
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STATE OF IOWA
COUNTY OF JOHNSON SS:
CITY OF TIFFIN
I, the undersigned, Clerk of the City of Tiffin, 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 a Development Agreement.
WITNESS MY HAND this day of 2016.
City Clerk
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STATE OF IOWA
SS:
COUNTY OF JOHNSON
I, the undersigned, County Auditor of Johnson County, in the State of Iowa, do hereby
certify that on the 30th day of November 2016, the City Clerk of the City of Tiffin filed in my
office a certified copy of a resolution of the City shown to have been adopted by the City
Council and approved by the Mayor thereof on November 29, 2016, entitled: "Resolution
Approving Development Agreement with TAT, LLC, Authorizing Annual Appropriation Tax
Increment Payments and Pledging Certain Tax Increment Revenues to the Payment of the
Agreement", and that I have duly placed the copy of the resolution on file in my records.
WITNESS MY HAND this day of 2016.
County Auditor
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� OORSBY
C: 0 S f `l E. W H I M I`I f '`! LL F,
November 23, 2016
VIA EMAIL
Doug Boldt
City Administrator/City Hall
Tiffin, IA
Re: TAT, LLC Development Agreement
File No. 436989-16
Dear Doug:
Attached please find copies of proceedings covering the City Council's November 29,
2016 public hearing on the proposed Development Agreement with TAT, LLC, followed by a
resolution approving the Agreement and pledging certain incremental property tax revenues to
the payment of the Agreement.
A copy of the Resolution must be filed with the Johnson County Auditor. Please print
extra copies of the Resolution for that purpose.
We would appreciate receiving one fully-executed copy of these proceedings. Please call
John Danos or me with questions.
Kind regards,
Amy Bjork
Attachments
cc: Ashley Jay-Platz
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DocuSign Envelope ID:2229A71F-OC3E-472D-A9DE-E33376BE2379
DEVELOPMENT AGREEMENT
This Agreement is entered into between the City of Tiffin, Iowa (the "City") and
TAT, LLC (the "Developer") as of the day of 2016 (the
"Commencement Date").
WHEREAS, the City and the Developer have been in discussions regarding the
development (the "Park Place Development Project") of certain real property situated
within in the Tiffin Urban Renewal Area (the "Urban Renewal Area"), including the
construction of certain public infrastructure projects; and
WHEREAS, the Developer agreed to cause the engineering of preliminary
infrastructure designs and land use plans associated with the Park Place Development
Project(the "Planning and Design Project"), and
WHEREAS, the Developer has requested that the City provide financial
assistance in the form of incremental property tax payments to be used by the Developer
in defraying the costs of the Planning and Design Project; and
WHEREAS, Chapter 403 of the Code of Iowa authorizes cities to establish urban
renewal areas and to undertake economic development projects; and
WHEREAS, Chapter 15A of the Code of Iowa authorizes cities to provide grants,
loans, guarantees, tax incentives and other financial assistance to or for the benefit of
private persons; and
NOW, THEREFORE, in consideration of the mutual obligations contained in this
Agreement, the parties hereto agree as follows:
A. Developer's Covenants -Planning and Design Proiect. The Developer
agrees to enter into a professional services agreement (the "Professional Services
Agreement") in substantially the form attached hereto as Exhibit A with MMS
Consultants, Inc. (the "Engineer"), pursuant to which the Developer will engage the
Engineer to undertake the Planning and Design Project. The Developer hereby agrees to
enter into the Professional Services Agreement by no later than December 31, 2016. The
Developer further agrees to demonstrate to the satisfaction of the City the actual fees
incurred by the Developer under the Professional Services Agreement (the "Actual
Design Fees"). To the extent that the Developer has not demonstrated to the satisfaction
of the City the Actual Design Fees by May 31, 2018, this Agreement will terminate.
B. Developer's Covenants
1. Payments. In recognition of the Developer' obligations set out above,
the City agrees to make two (2) economic development tax increment payments (the
"Payments") to the Developer pursuant to Chapters 15A and 403 of the Code of Iowa, on
December 1, 2017 and June 1, 2018. The aggregate amount of the Payments shall not
exceed an amount equal to the lesser of(i) $427,500 or(ii) the Actual Design Fees.
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So long as the Actual Design Fees are equal to or greater than Two Hundred
Thirteen Thousand Seven Hundred Fifty Dollars ($213,750), then the first Payment shall
be in an amount equal to Two Hundred Thirteen Thousand Seven Hundred Fifty Dollars
($213,750). If the Actual Design Fees are less than Two Hundred Thirteen Thousand
Seven Hundred Fifty Dollars ($213,750), then the first Payment shall be in amount equal
to the Actual Design Fees.
The second Payment shall be in an amount equal to the lesser of(i) Two Hundred
Thirteen Thousand Seven Hundred Fifty Dollars ($213,750) or(ii) the difference between
the Actual Design Fees minus Two Hundred Thirteen Thousand Seven Hundred Fifty
Dollars ($213,750).
2. Security for Payments. The Payments shall not constitute general
obligations of the City, but shall be made solely and only from Incremental Property Tax
Revenues received by the City from the Johnson County which are attributable to the
Urban Renewal Area. Incremental Property Tax Revenues are determined by: (1)
determining the consolidated property tax levy (city, county, school, etc.) then in effect
with respect to taxation of the property in the Urban Renewal Area; (2) subtracting (a) the
debt service levies of all taxing jurisdictions, (b) the school district instructional support
and physical plant and equipment levies and (c) any other levies which may be exempted
from such calculation by action of the Iowa General Assembly; and (3) multiplying the
resulting modified consolidated levy rate times any incremental growth in the taxable
valuation of the property situated in the Urban Renewal Area, as shown on the property
tax rolls of Johnson County.
To the extent it becomes necessary, the City may advance alternative City funds
to make the Payments and collect Incremental Property Tax Revenues over time to be
made whole.
C. Administrative Provisions
1. Amendment and Assignment. This Agreement may not be amended or
assigned by either party without the prior written consent of the other party. However,
the City hereby gives its permission that the Developer' rights to receive the Payments
hereunder may be assigned by the Developer to a private lender or the Engineer, as
security on a borrowing to be done in connection with the carrying out of the Planning
and Design Project or as security for payment to the Engineer under the Professional
Services Agreement, without further action on the part of the City.
2. Succession. This Agreement shall inure to the benefit of and be binding
upon the successors and assigns of the parties.
3. Choice of Law. This Agreement shall be deemed to be a contract made
under the laws of the State of Iowa and for all purposes shall be governed by and
construed in accordance with laws of the State of Iowa.
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4 Term. The term (the "Term") of this Agreement shall commence on the
Commencement Date and end on the date on which the last Payment is made by the City
to the Developer under Section B.l above.
The City and the Developer have caused this Agreement to be signed in their
names and on their behalf by their duly authorized officers, all as of the day and date
written above.
CITY OF TIFFIN, IOWA
By:
Mayor
Attest:
City Clerk
TAT, LLC
By:
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EXHIBIT A-PROFESSIONAL SERVICES AGREEMENT:
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