HomeMy WebLinkAboutA002 - Development Agreement with Ford Street Development and Ereben Hunziker and Dean Hunziker dated June 1, 1992 WST.
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JUN 9 1992
4" DEVELOPMENT AGREEMENT FOR THE AMES COMMUNITY INDUSTRIAL
9JW wo*QW,Roaloa PARK TAX INCREMENT FINANCE DISTRICT
FOR
i k"hS—f;i Cr and AGREEMENT, made and entered into this J day of
;:Jur,e , 1992, by and between the CITY OF AMES, IOWA, (hereinafter
called City ) and FORD STREET DEVELOPMENT COMPANY, successors and assigns
(hereinafter called "Developer-A") , and ERBEN HUNZIKER, and DEAN HUNZIKER,
successors and assigns, (hereinafter called "Developer-B") .
WITNESSETH :
WHEREAS, it is the intention and representation of the Developers that they
will undertake a project to construct and market industrial buildings, on
land at below market cost, as hereinafter described; and,
;o�:;EaS, Developers de�irz tha� he C'ty facilitate the aferesai� proiect by
designing and causing the construction of public streets, storm drains,
sanitary sewers, electric utilities and other public improvements to serve
the project and land herein described; and,
WHEREAS, the parties hereto desire that to the greatest extent possible the
cost of constructing and financing said public improvements be abated by an
increment in property taxes based on the said development project; and,
WHEREAS, the City has a policy of encouraging projects of economic develop-
ment that have potential for providing substantial increases in permanent
employment opportunities, added revenue support for government services, and
expansion of the property tax base;
NOW, THEREFORE, in consideration of these premises and of the mutual promises
hereinafter set out, the parties hereto agree and covenant as follows:
1. Platting. Developers shall prepare and submit to the City Council , in
accordance with applicable laws and ordinances, a plat of subdivision of
land described as:
(See attached legal description)
2. TIF DISTRICT. The City shall institute proceedings for establishment of
a Tax Increment Finances district, pursuant to Chapter 403, Code of
Iowa, that will coincide with the land described in paragraph 1.
3. First Speculative Building. Developer-A shall complete construction of
a building on the said land in accordance with all city regulations not
later than nine months from the completion of the public improvements
required for the platting referred to in paragraph 1.
4. Value and Size, First Building. The aforesaid building shall have an
assessed taxable value, exclusive of land, of not less than $458,000;
and, have not less than 16,000 square feet of floor area.
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5. Security. As security to the City for the completed construction of the
aforesaid building, Developer-A does hereby promise to pay the sum of
$458,000.00 to the City on the completion date stated in paragraph 3
above, if the aforesaid building, having a size and value as specified
in paragraph 4, is not then completed; and, Developer-A shall execute
and deliver to the City a first lien mortgage of that land described
in paragraph 1, lying west of Bell Avenue extended for said sum of
$458,000. The said mortgage shall be delivered to the City prior to the
City awarding a contract for construction of public improvements with
respect to the area described in paragraph 1.
6. Insurance. Developer-A shall purchase and maintain in effect fire and
extended casualty insurance, which shall name the City as an additional
insured, for the building referred to in paragraph 3, in an amount not
less than $458,000. That insurance shall remain in effect until the TIF
district debt is retired.
7. Release of Mortgage. Partial release of the said mortgage shall be
granted by the City for platted lots to accommodate purchase or con-
struction for so long as there remains subject to the mortgage land
having a market value of not less than $458,000. The promise to pay and
the mortgage provided for in paragraph 5 shall be satisfied and released
by City when the said building is completed as agreed.
8. Second and Subsequent Speculative Buildings. After the aforesaid first
speculative building is completed and at least 80% occupied, Developer-A
shall , not later than 12 months from that time, complete construction of
a second speculative building having an assessed taxable value, exclu-
sive of land, of not less than $300,000, with not less than 10,000
square feet of floor area. Thereafter, additional buildings of not less
than the said size and value shall be constructed by Developer-A so that
there is at all times one such building available for occupancy or under
construction until all lots referred to in paragraph 5 have been built
upon. After that, Developer-B shall complete additional buildings as
aforesaid on such of the land described in paragraph 1, lying east of
Bell Avenue extended, until all of the lots referred to in paragraph 1
have been built upon.
9. Land Price Ceiling. The Developers covenant that they shall not sell
any of the land described in paragraph 1 for a price greater than the
price per acre set out on the attached price list, plus an increase of
5% per lot on July 1 of each year following July 1, 1993.
10. No Tax Exemption. Developers shall not apply for the industrial proper-
ty tax exemption provided by Ames Municipal Code Section 24.8 - 24.13
pursuant to Chapter 427B Code of Iowa, or for any other tax exemption
that may be or become available to the Developers with regard to the
land described in paragraph 1 or any buildings or machinery constructed
or placed on said land.
11. Amendments. Any and all provisions of this agreement may be amended,
cancelled or extended by the mutual agreement of the parties hereto.
2 /3A
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12. Payments in Lieu of Taxes.
a) In the event that the buildings constructed pursuant to paragraph 4
is assessed for taxes at a value of less than $458,000, Developer-A
shall make an annual payment to the City equal to the difference in
property taxes that would have been derived from a building as-
sessed at $458,000, and the value at which said building is actual-
ly assessed.
b) In the event that any of the buildings constructed pursuant to
paragraph 8 .are assessed for taxes at a value of less than $300,000
each, the Developer that constructed the same shall make an annual
payment to the City equal to the difference in property taxes that
would have been derived from each such building if assessed for
taxes at $300,000 and the taxes derived from the values at which
said buildings are actually assessed.
c) The payment in lieu of taxes shall be due and payable in accordance
with the statutory schedule for payment of property tax.
13. Covenant with the Land. This contract and agreement, and all promises
and covenants herein expressed, shall be a covenant running with the
land described in paragraph 1 hereof, and shall be binding on the Devel-
opers, their successors and assigns, and upon the Developers grantees of
rights in said land, including mortgagees, except the City as mortgagee;
and, except that the Developer-A obligations of paragraphs 3, 4, 5 and
6, and the Developer-A obligations stated in paragraphs 8 and 12, shall
not run with the land described in paragraph 8.
IN WITNESS WHEREOF, the parties have caused this instrument to be signed by
their authorized representatives as of the date first above written.
DEVELOPERS
Ford Street Development Company,
An Iowa General Partnership
4ErenHunzi er
By: Dayton Road Development
Company (a Partner)
- � By: qMar�v"'n
can Hunzi er J. alter, President
By:
�phn M. Botos, Secretary
and
By: JPR Partnership, Ltd,
(a Partner)
Richard T. ohnson, Partner
3� 3
PAGE -�.
STATE OF IOWA
ss:
COUNTY OF STORY
On this -"7u'i day of L'��� 1992, before me, the undersigned, a
Notary Public in and for the StatO of Iowa, personally appeared Marvin J.
Walter and John M. Botos, to me personally known, who, being by me duly
sworn, did state that they are the President and Secretary, respectively, of
Dayton Road Development Company, an Iowa corporation which is a Partner of
Ford Street Development Company, an Iowa General Partnership, executing the
foregoing instrument; that no seal has been procured by the corporation; that
the instrument was signed on behalf of the corporation as a Partner of Ford
Street Development Company, an Iowa General Partnership, by authority of the
corporation's Board of Directors; and that Marvin J. Walter and John M.
Botos, as officers of the corporation, acknowledged the execution of the
instrument to be the voluntary act and deed of the corporation and of the
partnership, by it and by the officers voluntarily executed. Further, on
this same date, before me, the undersigned, personally appeared Richard T.
Johnson, to me personally known, who, being by me duly sworn, did say that he
is one of the partners of JPR Partnership, Ltd. , an Iowa General Partnership,
and a Partner of Ford Street Development Company, and that the instrument was
signed on behalf of JPR Partnership, Ltd. , as a Partner of Ford Street Devel-
opment Company, by authority of the Partners, and the Partner acknowledged
the execution of the instrument to be the voluntary act and deed of Ford
Street Development Company and of JPR Partnership, Ltd. , by the partnerships
and by the Partner voluntarily executed.
F(otary Public in a for° the
State of Iowa -'
STATE OF IOWA
ss:
COUNTY OF STORY
On this - I day of ! `!s__�, 1992, before me, a Notary Public in
and for Story County, personally appeared Erben Hunziker, to me known to be
the person named in and who executed the foregoing instrument, and acknowl-
edged that he executed the same as his voluntary act and deed.
Notary Publ`i c in and for the / ' ,
State of Iowa Ke I I I� �/h I
STATE OF IOWA
ss:
COUNTY OF STORY
On this !,�h day of �� �, . , 1992, before me, a Notary Public in
and for Story County, personally appeared Dean Hunziker, to me known to be
the person named in and who executed the foregoing instrument, and acknowl—
edged that he executed the same as his voluntary act and deed.
Notary Public in and for the
State of Iowa
Ke �e-
CITY OF AMES
ATT T:
anc Dioniga',% City Clerk Larry Curtis, Mayor
STATE OF IOWA
ss:
COUNTY OF STORY
On this 1st day of June .__ 1992, before me, a Notary Public in and
for-the State of Iowa, personally appeared Larry R. Curtis and Nancy Dionigi ,
to me personally known, and, who, being by me duly sworn, did say that they
are the Mayor and City Clerk, respectively, of the City of Ames, Iowa; that
the seal affixed to the foregoing instrument is the corporate seal of the
corporation, and that the instrument was signed and sealed on behalf of the
corporation, by authority of its City Council , as contained in Resolution
No. 92-193 adopted by the City Council on the 1st day of June
19 92 , and that Larry R. Curtis and Nancy Dionigi acknowledged the execution
of the instrument to be their voluntary act and deed and the voluntary act
and deed of the corporation, by it voluntarily executed.
Notary Public i rY land for the
State of Iowa
Jill L. Ripperger
My Commission Expires March 17_, 1994
INDUSTPK.408
APPRO �A O F M
BY ��` /
John R. Klaus
PAGE- �� 5 City Attorney
DESCRIPTION: AMES COMMUNITY INDUSTRIAL PARK SUBDIVISION
A REPLAT OF LOT 2 OF WGGC 3ND ADDITION AND PART OF TRACT #2 OF THE NE 1/4 OF THE
NW 1/4 OF SECTION 7 - T83N - R23W OF THE 5th P.M., MORE PARTICULARLY DESCRIBED AS
FOLLOWS: THAT PART OF THE NWFR1/4, NW1/4 AND THE NE 1/4, NW 1/4, SECTION 7, T83N,
R23W OF THE 5TH P.M. DESCRIBED AS: COMMENCING AT THE NW CORNER OF SECTION 7,
TOWNSHIP 83 NORTH, RANGE 23 WEST OF THE 5TH P.M., CITY OF AMES STORY COUNTY,
IOWA; THENCE, N89°32'41"E ALONG THE NORTH LINE OF SAID SECTION 7, A DISTANCE OF
582.03'; THENCE, S2°30'32"E, 61.87' TO THE SOUTH RIGHT OF WAY OF EAST LINCOLN WAY;
THENCE, N85°49'17"E, 21.85' ALONG SAID RIGHT OF WAY; THENCE, S89°38'49"E, 292.50' ALONG
SAID RIGHT OF WAY; THENCE, EASTERLY ALONG SAID RIGHT OF WAY, 223.62' ON A 42,602'
RADIUS CURVE CONCAVE NORTHERLY AND TANGENT TO THE PREVIOUS COURSE; SAID
CURVE HAVING A DELTA ANGLE OF 0°18'03"; THENCE, S 1°34'13"W, 420.55' ALONG THE EAST
RIGHT OF WAY LINE OF ALEXANDER AVENUE TO THE SW CORNER OF LOT 1, WGGC THIRD
ADDITION TO AMES, IOWA, AND THE POINT OF BEGINNING; THENCE, N89°32'25"E, 343.61'
ALONG THE SOUTH LINE OF SAID LOT 1. THENCE N0053'11"W, 227.99 FEET ALONG THE WEST
LINE OF SAID LOT 1 TO THE NORTH LINE OF SAID LOT 2 WGGC THIRD ADDITION TO AMES,
IOWA. THENCE N89000'46"E, 260.71 ALONG SAID NORTH LINE TO THE WEST LINE OF BELL
AVENUE IN THE CITY OF AMES, IOWA. THENCE, S7002'02"W, 17.82' ALONG SAID WEST LINE;
THENCE S82057'58"E, 80.00' TO THE EAST LINE OF BELL AVENUE; THENCE N 89°24'25"E,
799.69'TO THE WEST RIGHT-OF-WAY LINE OF INTERSTATE HIGHWAY #35; THENCE SO°03'28"E,
1025.50' ALONG SAID WEST RIGHT-OF-WAY LINE OF INTERSTATE HIGHWAY #35; TO THE
SOUTH LINE OF THE NE1/4, NW1/4 SECTION 7, T83N, R23W OF THE 5TH P.M.; THENCE
S89°24'32"W, 877.86' ALONG SAID SOUTH LINE TO THE SOUTHEAST CORNER OF THE NWFR1/4,
NW1/4 SECTION 7, T83N, R23W OF THE 5TH P.M.; THENCE, S89042'04"W, 1351.20' ALONG THE
SOUTH LINE OF SAID NWFRl/4 NW1/4 SAID SECTION 7; THENCE, N7°40'19"E, 145.63' (RE-
CORDED AS S7039'W, 145.5'); THENCE, N26°30'45"E, 84.29' (RECORDED AS S26°57'W, 89.9');
THENCE, N82°37'47"E, 119.14'; (RECORDED AS S83°00'W, 119.3'); THENCE, NO°03'47"E, 622.74';
(RECORDED AS SO°18'W, 623.1'); THENCE, S89°58'01"E (RECORDED AS S89045'E), 57.52' TO THE
SW CORNER LOT 2 OF THE FIRST ADDITION OF WGGC SUBDIVISION TO AMES, IOWA; THENCE,
N89013'48"E, 437.97' ALONG THE SOUTH LINE OF SAID LOT 2 TO THE WEST LINE OF ALEXAN-
DER AVENUE; THENCE S1°34'13"W, 36.12' ALONG SAID WEST LINE.; THENCE, S88025'47"E 80.00'
ALONG THE SOUTH LINE OF SAID ALEXANDER AVENUE TO THE POINT OF BEGINNING. SAID
SUBDIVISION CONTAINS 45.43 ACRES.
CERTIFICATION:
I hereby certify that this description was prepared by me or under my direct personal supervision and that I am
a duly Registered Professional Land Surveyor under the laws of the State of Iowa.
Craig R. J stone Date
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o 10039
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PROPOSED RIGHT OF WAY DESCRIPTION:
ALEXANDER AVENUE AND GRAHAM STREET
A parcel of land lying within the Northwest Quarter, Northwest Quarter, Section 7, Township
83 North, Range 23 West of the 5th P.M., City of Ames, Story County, Iowa, more particularly
described as follows:
Commencing at the NW Corner of Section 7, Township 83 North, Range 23 West of the 5th
p.m., City of Ames, Story County, Iowa; thence, North 89°32'41" East along the North line
of said Section 7, a distance of 582.03'; Thence, South 2°30'32" East, 61.87' To the South
Right of Way of East Lincoln Way; thence, North 85°49'17" East, 21.85' along said right of
way; thence, South 89°38'49" East, 292.50' Along said right of way; thence, easterly along said
right of way, 223.62' On a 42,602' radius curve concave northerly and tangent to the previous
course; said curve having a delta angle of 0°18'03"; thence, South 1°34'13" West, 420.55'
Along the East Right of Way line of Alexander Avenue to the SW Corner of Lot 1, WGGC
Third Addition to Ames, Iowa, and the point of beginning; Thence South 1°34'13" West,
434.74 feet to a curve, concave Northeasterly, with a radius of 110.00 feet and a central angle
of 92°01'25"; thence Southerly along said curve, 176.67 feet, chord South 44°26'30" East,
158.29 feet; thence North 89°32'48" East, 405.65 feet; thence South 7°02'02" West, 72.12 feet;
thence South 0°40'27" West, 8.49 feet; thence South 89°32'48" West, 592.92 feet; thence North
1°34'13" East, 631.56 feet to the Southwest corner of the existing Alexander Avenue Right of
Way; thence South 88°25'47" East, 80.00 feet along the South line of said existing Alexander
Avenue Right of Way to the Point of Beginning. Said parcel contains 2.17 acres.
CERTIFICATION:
I hereby certify that this description was prepared by me or under my direct personal supervision
and that I am a duly Registered Professional Land Surveyor under the laws of the State of Iowa.
Craig Johnst Date
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