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Home My WebLink AboutA035 - Letter to Dorsey & Whitney dated December 11, 2013 (Resolution No. 13-558) e Caring Pe,ple 515 Clark Avenue,P. O. Box 811 QwlilvProKrams Ames,IA 50010 E—pa nal Service Phone: 515-239-5105 Fax: 515-239-5142 December 11, 2013 Dorsey & Whitney LLP 801 Grand, Suite 4100 Des Moines, Iowa 50309 Attention Robert E. Josten RE: Your File No.: 419370-31 Campustown Urban Renewal Area Dear Bob: Enclosed please find the following: 1. Proceedings covering the City Council's public hearing on the proposed Development Agreement with Kingland Systems Corporation, which is inclusive of the approval Resolution No. 13-558. 1 have also sent a certified copy of Resolution No. 13-558 to the Story County Auditor. When I receive the Auditor's confirmation of receipt and filing of said Resolution, I will forward same to you. Thank you for your assistance. Sincerely, AOAU Diane R. Voss City Clerk /dry Enclosure Ames419370-31/Dev.Agmt Kingland-Hold Hrg- HOLD HEARING ON AND APPROVE DEVELOPMENT AGREEMENT WITH KINGLAND SYSTEMS CORPORATION 419370-31 Ames, Iowa December 10, 2013 A meeting of the City Council of the City of Ames, Iowa, was held at 7:00 o'clock p.m., on December 10, 2013, at the City Hall Council Chambers, Ames, Iowa, pursuant to the rules of the Council. The Mayor presided and the roll was called, showing members present and absent as follows: Present: Davis, Goodman, Larson, Orazem, Szopinski, Wacha Absent: None. The City Council investigated and found that notice of the intention of the Council to conduct a public hearing on a Development Agreement between the City and Kingland Systems Corporation in connection with the construction of a commercial facility, for retail and office uses, which provides for certain property tax incentives in the form of economic development payments in a total amount not exceeding $2,064,530, 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.) Gabby Williams, 425 Welch Avenue, Ames, Iowa: Advised that the Government of the Student Body passed a Resolution to ask that the retail space be retained indefinitely. Ms. Williams believes that the desires of the students is that there should be multiple store fronts on 100% of the ground floor. There being no further objections or comments, the Mayor announced that the hearing was closed. -1- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames419370-Yl/Dev.Agmt Kingland-Hold Hrg- Council Member Davis introduced the resolution next hereinafter set out and moved its adoption, seconded by Council Member Orazem; 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: Davis, Larson, Orazem, Wacha Nays: Goodman, Szopinski Whereupon, the Mayor declared said resolution duly adopted, as follows: -2- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames419370-31/Dev.Agmt Kingland-Hold Hrg- RESOLUTION NO. 13-558 Approving Development Agreement with Kingland Systems Corporation Authorizing Economic Development Payments and Pledging Certain Tax Increment Revenues to the Payment of the Agreement WHEREAS, the City of Ames, 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 Campustown 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 (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, an agreement between the City and Kingland Systems Corporation (the "Developer") has been prepared (the "Agreement"), pursuant to which the Developer would construct a commercial facility for retail and office uses in the Urban Renewal Area (the "Kingland Project") and the City would provide economic development payments in a total amount not exceeding $2,064,530; 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, 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 Ames, Iowa, as follows: Section 1. Pursuant to the factors listed in Chapter 15A, the Council hereby finds that: (a) The Kingland Project will add diversity and generate new opportunities for the Ames and Iowa economies; -3- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames419370-31/Dev.Agmt Kingland-Hold Hrg- (b) The Kingland Project will generate public gains and benefits, particularly in the creation of new jobs and opportunities for commercial activity, which are warranted in comparison to the amount of the proposed property tax incentives. Section 2. The Council further finds that a public purpose will reasonably be accomplished by entering into the Agreement and providing the economic development 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 the city attorney and bond counsel, may believe to be necessary, and to take such actions as may be necessary to carry out the provisions of the Agreement. Section 4. 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 Urban Renewal Tax Revenue Fund. Section 5. The City hereby pledges to the payment of the Agreement the Urban Renewal Tax Revenue Fund and the taxes referred to in Subsection 2 of Section 403.19 of the Code of Iowa to be paid into such Fund. Section 6. After its adoption, a copy of this resolution shall be filed in the office of the County Auditor of Story County to evidence the continuing pledging of the Urban Renewal Tax Revenue 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 10t" day of December, 2013. I ,;2v ��1• lr� Mayor Attest: City Clerk -4- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames419370-31/Dev.Agmt Kingland-Hold Hrg- On motion and vote the meeting adjourned. Mayor Attest: City Clerk -5- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Ames4 1 9370-3 1/Dev.Agmt Kingland-Hold Hrg- STATE OF IOWA COUNTY OF STORY SS: CITY OF AMES I, the undersigned, Clerk of the City of Ames, 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 10 day of December, 2013. City Clerk -6- DORSEY&WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA