HomeMy Public PortalAboutResolution #2017-32, Approving And Authorizing Execution Of A Development Agreement By And Between The City Of Riverdale And Woods Construction And Development, Inc. RESOLUTION NO. 2017-32
RESOLUTION APPROVING AND AUTHORIZING
EXECUTION OF A DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF RIVERDALE AND WOODS
CONSTRUCTION AND DEVELOPMENT, INC.
WHEREAS, by Resolution No. 2017-29, adopted September 12, 2017, 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 Welch Farm
Urban Renewal Plan (the "Plan") for the Welch Farm Urban Renewal Area (the "Area")
described therein, which Plan is on file in the office of the Recorder of Scott County; 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 Woods Construction and
Development, Inc. (the "Developer"), in the form of a proposed Development Agreement(the
"Agreement") by and between the City and the Developer, pursuant to which, among other
things, the Developer would agree to construct certain Minimum Improvements and Public
Improvements (as those terms are defined in the Agreement) on certain real property located
within the Area as defined and legally described in the Agreement and consisting of the
construction of a housing project, consisting of approximately 116 Housing Units, for the Welch
Farm Development, 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 twenty (20)
consecutive semi-annual payments of Economic Development Grants to Developer consisting of
31.15% of the Tax Increments pursuant to Iowa Code Section 403.19 and generated by the
construction of the Minimum Improvements, the cumulative total for all such payments not to
exceed the lesser of$1,500,000, 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, 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
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:
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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
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
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documents as may be necessary to carry out and comply with the provisions of the Agreement as
executed.
PASSED AND APPROVED this 10th day of October, 2017.
Mayor
ATTEST:
City Clerk
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