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HomeMy WebLinkAbout~Master - Amendment to Developer's Agreement for South Bell Avenue TIF RESOLUTION NO. 14-415 RESOLUTION APPROVING AMENDMENT TO DEVELOPER'S AGREEMENT FOR AMES COMMUNITY DEVELOPMENT PARK, 4TH ADDITION, FOR THE CITY OF AMES,IOWA WHEREAS,the City of Ames and Dayton Park,LLC,entered into a development agreement on February 4, 2009, in order to establish an urban renewal area and tax increment finance (TIF) district for the construction of the Ames Community Development Park, 4'Addition; and, WHEREAS,this development created 14 lots for industrial development and completed the connection of South Bell Avenue between East Lincoln Way and Southeast 16" Street; and, WHEREAS,the agreement,among other things,requires the developer to construct a series of speculative buildings, and the first building was required within 18 months after the completion of the public improvements; and, WHEREAS, the second speculative building was required to be constructed within 12 months of the occupancy of the first(or by July 23,2013), and this requirement was not met by the developer; and, WHEREAS, the agreement also required the developer to grant to the City a first lien mortgage in the amount of$350,000 encumbering not less than 6.36 acres of the development;and, WHEREAS, this mortgage was to ensure the completion of the required speculative buildings,and the mortgage was never granted and the City is holding no financial security to ensure satisfactory performance by the developer; and, WHEREAS, at the December 17, 2013,meeting,the City Council directed staff to prepare amendments to the agreement to grant a one-time extension to require the second speculative building to be completed by June 1, 2014, and the Council also directed staff to obtain a letter of credit (rather than a mortgage) and to assess the developer $12,000 as consideration for non- performance to meet the time line for completion of the second speculative building and grant an extension; and, WHEREAS, at its January 28, 2014, meeting, the Council reviewed a letter from Dayton Park, LLC, offering amended terms to the development agreement; and, WHEREAS,in response to this request,the Council directed staff to prepare an amendment to the agreement that required completion of the second building by July 1,2014, and to accelerate the construction of the third speculative building to be completed by December 31, 2014; and, WHEREAS, on March 25, 2014, the City Council asked for a review of the building materials requirements and its relationship to the second speculative building that was under construction at 2812 Hyatt Circle, and the second building has now received an occupancy permit from the City's Inspections Department as a shell building; and, WHEREAS, on April 22, 2014, Council directed staff to work with the representative of Dayton, LLC, on how future buildings would conform to the design requirements of the Development Agreement for the Ames Community Development Park 4'Addition; and, WHEREAS, the Developer's Agreement includes certain design standards that are incorporated as covenants for new development; and, WHEREAS,the covenants with the Developer's Agreement specify a wide range of materials that are acceptable,but limits the front facade to no more than 60% corrugated metal; and, WHEREAS,discussion on April 22,2014,revolved around the meaning of corrugated steel in terms of ridges and colored finish and how the 4t'Addition's design requirements differ from the prior 3rd Addition's covenants; and, WHEREAS,to resolve both the issue of timing of construction of the speculative buildings and the interpretation of design requirements, the following terms are offered by the applicant to execute as an amendment to the Development Agreement: 1)Provide a$350,000 letter of Credit to secure construction of the next speculative building; 2) Complete the third speculative building by December 31, 2014; 3) The second speculative building at 2812 Hyatt will remain as is, with no changes required to the exterior finishes; 4) The common understanding that references to "Corrugated Steel" for the front facade shall mean metal with raised ridges, curved or straight; corrugated does not mean only unfinished or galvanized steel panels; 5) The third speculative building and all subsequent development in the 4"Addition will be constructed consistent with the above understanding; and 6)No changes to covenants of the subdivision; current language applies to all projects and Dayton LLC will be bound by the understanding of the design terms described in 4). NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of Ames, Iowa, that the amended Developer's Agreement for the Ames Community Development Park,41n Addition, subject to the aforementioned conditions, is hereby approved. ADOPTED THIS 22nd day of July, 2014. 1 J -LAa& A. x. 6P.-AAal Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Nelson Seconded by: Goodman Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 22nd day of July, 2014.