HomeMy Public PortalAboutResolution #2016-13, Resolution Approving And Authorizing Execution Of A Development Agreement By And Among The City Of Riverdale, Brenny's Investments LLC, And Brenny's Motorcycle Clinic, Inc. RESOLUTION NO. d0/6' "I3
RESOLUTION APPROVING AND AUTHORIZING
EXECUTION OF A DEVELOPMENT AGREEMENT BY AND
. AMONG THE CITY OF RIVERDALE, BRENNY'S
INVESTMENTS LLC, AND BRENNY'S MOTORCYCLE
CLINIC, INC.
WHEREAS, by Resolution No. 2014-21, adopted November 18, 2014, this Council
found and determined that certain areas located within the City are eligible and should be
designated as an urban renewal area under Iowa law, and approved and adopted the State Street
Urban Renewal Plan (the "Plan") for the Riverdale State Street Urban Renewal Plan(the "Urban
Renewal Area" or "Area") described therein, which Plan as amended, is on file in the office of
the Recorder of Scott County; and
WHEREAS, the City has also adopted Ordinance No. 2014-189 (the "Ordinance") under
which incremental tax revenues from the Urban Renewal Area are to be deposited into a special
tax increment fund of the City pursuant to Section 403.19 of the Code; and
WHEREAS, it is desirable that properties within the Area be redeveloped as part of the
overall redevelopment area covered by said Plan; and
WHEREAS, the City has received a proposal from Brenny's Investments LLC (the
"Developer") and Brenny's Motorcycle Clinic, Inc. (the "Tenant"), in the form of a proposed
Development Agreement (the "Agreement")by and among the City, Tenant, and the Developer,
pursuant to which, among other things, the Developer would agree to construct certain Minimum
Improvements (as defined in the Agreement) on certain real property located within the
Riverdale State Street Urban Renewal Plan as defined and legally described in the Agreement
and consisting of the construction of a new 29,000 square foot building addition to be used to
expand the Tenant's existing motorcycle show room located on the Development Property,
together with all related site improvements, as outlined in the proposed Development
Agreement; and
WHEREAS, the Agreement further proposes that the City will make up to five (5)
consecutive annual payments of Economic Development Grants to Developer consisting of a
decreasing percentage of the Tax Increments pursuant to Iowa Code Section 403.19 generated by
the construction of the Minimum Improvements, the cumulative total for all such payments not
to exceed the lesser of One Hundred Fifty Thousand Dollars ($150,000) or the amount accrued
under the formula outlined in the proposed Development Agreement, under the terms and
following satisfaction of the conditions set forth in the Agreement; and
WHEREAS, one of the obligations of Developer(s) relates to employment retention
and/or creation; and
WHEREAS, Iowa Code Chapters 15A and 403 authorize cities to make loans and grants
for economic development in furtherance of the objectives of an urban renewal project and to
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appropriate such funds and make such expenditures as may be necessary to carry out the
purposes of said Chapters, and to levy taxes and assessments for such purposes; and
WHEREAS, the Council has determined that the Agreement is in the best interests of the
City and the residents thereof and that the performance by the City of its obligations thereunder
is a public undertaking and purpose and in furtherance of the Plan and the Urban Renewal Law
and, further, that the Agreement and the City's performance thereunder is in furtherance of
appropriate economic development activities and objectives of the City within the meaning of
Chapters 15A and 403 of the Iowa Code taking into account any or all of the factors set forth in
Chapter 15A, to wit:
a. Businesses that add diversity to or generate new opportunities for the Iowa
economy should be favored over those that do not.
b. Development policies in the dispensing of the funds should attract, retain, or
expand businesses that produce exports or import substitutes or which generate
tourism-related activities.
c. Development policies in the dispensing or use of the funds should be targeted
toward businesses that generate public gains and benefits, which gains and
benefits are warranted in comparison to the amount of the funds dispensed.
d. Development policies in dispensing the funds should not be used to attract a
business presently located within the state to relocate to another portion of the
state unless the business is considering in good faith to relocate outside the state
or unless the relocation is related to an expansion which will generate significant
new job creation. Jobs created as a result of other jobs in similar Iowa businesses
being displaced shall not be considered direct jobs for the purpose of dispensing
funds; and
WHEREAS, pursuant to notice published as required by law, this Council has held a
public meeting and hearing upon the proposal to approve and authorize execution of the
Agreement and has considered the extent of objections received from residents or property
owners as to said proposed Agreement; and, accordingly the following action is now considered
to be in the best interests of the City and residents thereof.
NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY
OF RIVERDALE IN THE STATE OF IOWA:
Section 1. That the performance by the City of its obligations under the Agreement,
including but not limited to making of loans and grants to the Developer in connection with the
development of the Development Property under the terms set forth in the Agreement, be and is
hereby declared to be a public undertaking and purpose and in furtherance of the Plan and the
Urban Renewal Law and, further, that the Agreement and the City's performance thereunder is in
furtherance of appropriate economic development activities and objectives of the City within the
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meaning of Chapters 15A and 403 of the Iowa Code, taking into account the factors set forth
therein.
Section 2. That the form and content of the Agreement, the provisions of which are
incorporated herein by reference, be and the same hereby are in all respects authorized, approved
and confirmed, and the Mayor and the City Clerk be and they hereby are authorized, empowered
and directed to execute, attest, seal and deliver the Agreement for and on behalf of the City in
substantially the form and content now before this meeting, but with such changes,
modifications, additions or deletions therein as shall be approved by such officers, and that from
and after the execution and delivery of the Agreement, the Mayor and the City Clerk are hereby
authorized, empowered and directed to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the provisions of the Agreement as
executed.
PASSED AND APPROVED this 7th day of June, 2016.
,,2erYIT P,,,kkedc
Mayor
ATTEST:
ley)c
City Clerk
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CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF SCOTT )
I, the undersigned City Clerk of the City of Riverdale, State of Iowa,do hereby certify
that attached is a true and complete copy of the portion of the corporate records of the City
showing proceedings of the Council, and the same is a true and complete copy of the action
taken by the Council with respect to the matter at the meeting held on the date indicated in the
attachment,which proceedings remain in full force and effect, and have not been amended or
rescinded in any way; that meeting and all action thereat was duly and publicly held in
accordance with a notice of public hearing and tentative agenda, a copy of which was timely
served on each member of the Council and posted on a bulletin board or other prominent place
easily accessible to the public and clearly designated for that purpose at the principal office of
the Council (a copy of the face sheet of the agenda being attached hereto) pursuant to the local
rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance
notice to the public and media at least twenty-four hours prior to the commencement of the
meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective city offices as indicated therein, that no vacancy existed except as may be stated
in the proceedings, and that no controversy or litigation is pending,prayed or threatened
involving the incorporation, organization, existence or boundaries of the City or the right of the
individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Council hereto affixed this 7 day of
SLne ,2016.
.4,►taa1i
City Clerk, City of Riverdale, State of Iowa
(SEAL)
01236344-1\22647-006
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