HomeMy WebLinkAboutA044 - Letter from City Attorney dated June 7, 2012, regarding developer's satisfaction of all obligations t e
City Attorney's Office
515 Clark Avenue, P. O. Box 811
Caring People' s _'
Ames, IA 50010
Quality Programs Phone: 515-239-5146 •Fax: 515-239-5142
Exceptional Service;,,"r;
June 7, 2012
The Honorable Ann H. Campbell and
Members of the City Council
Re: Streets of North Grand Subdivision—Developer's Satisfaction of All Obligations
Dear Mayor Campbell and Members of the City Council:
You will recall that in 2007 the City approved a development agreement for the Streets of North
Grand Subdivision. The City's approval was conditioned upon the owners reconfiguring the
mall parking lot to meet the minimum off-street parking requirements of the adaptive reuse site
plan and the Municipal Code. The owners provided the City with a performance bond to
guarantee that the parking lot would be reconfigured in a timely manner. The City granted
extensions of time in 2008, 2009, 2010, and 2011. Because the parking lot reconfiguration has
never been completed, however, the performance bond remains on file with the City.
On January 10, 2012, the City of Ames entered into a supplemental agreement pertaining to the
Streets of North Grand Subdivision. The purpose of the supplemental agreement was to provide
an alternative means for the owners of the mall to comply with the City's minimum off-street
parking standards. The supplemental agreement obligates the mall owners, Grand Center
Partners and North Grand Mall Partners, to achieve several milestones in furtherance of
redevelopment of the mall. The supplemental agreement provides that upon the owners'
completion of the redevelopment milestones, the performance bond required by the 2007
agreement would be released. A copy of the supplemental agreement is attached for your
reference.
The first two milestones specified in the supplemental agreement were adoption of an amended
adaptive reuse site plan and approval of a remote parking agreement. The owner completed
these two milestones last January.
The remaining milestones required the owners to submit evidence of construction financing in an
amount not less than $8,000,000, and evidence of binding leases from tenants for the areas
identified as Retail A and Retail D on the attached exhibit to the supplemental agreement. These
requirements have now been met.
The owners recently provided satisfactory evidence of construction financing in the amount of
$10,350,000. They also provided satisfactory evidence of tenant leases for Retail A and
Retail D. Relevant documents were filed with the Story County Recorder on April 5th and May
9th. With the satisfaction of all of the owners' obligations set out in the supplemental agreement,
the security requirement of the 2007 agreement is terminated and the bond on file with the City
is released.
Yours truly,
/�l T Digitally signed by Doug Marek
wL,7 Date:2012.06.0714:59:55-05'00'
Douglas R. Marek
City Attorney
Attachment: Supplemental Agreement
cc: Greg Kveton
Steve Schainker
WHEREAS, in .tune 2008. July 2009, .lulu 2010. and January 2011 the City granted the
Owner extensions of time to complete the parking reconfiguration requirement. but to this date
the parking lot has not been reconfigured as required by the FIRST AGREEMENT: and
WHEREAS. the Owner now proposes to amend the Adaptive Reuse Site Plan approved
in 2007. to meet the minimum off-street parking standards of the Ames Municipal Code in a
manner consistent with the Amended Adaptive Reuse Site Plan. and to construct buildings and
other improvements as described and according to the schedule set out in tills Supplemental
Agreement.
NOW, "THEREFORE. the parties hereto have agreed and do agree as follows:
I
PURPOSE
A. It is the purpose of this Supplemental Agreement to supplement the FIRST
AGREEMENT by providing an alternative means for the Owner to comply with the minimum
Off-street parking standards in the Ames Municipal Code in a manner consistent with an
Amended Adaptive Reuse Site PIan, and to provide remedies to the City in the event the Owner
does not comply with all of the conditions set out in this Supplemental Agreement.
B. This Supplemental Agreement does not create or vest in any person or
organization, other than the City. any rights or cause of action with respect to any performance,
obligation, plan. schedule. or undertaking stated in this Supplemental Agreement. with respect to
the Owner. No person shall have any cause of action or recourse against the City or Owner by
reason of any term or condition of this Supplemental Agreement.
II
OWNER'S OBLIGATIONS
A. Remote Parking Agreement. No later than January 24. 2012. Owner shall provide
to City for approval a fully-executed remote parking agreement. by and between the parties in
control of all of Lots 1 and 2 in the Streets of North Grand Subdivision. in a form that satisfies
all applicable parking requirements of the Antes Municipal Code.
B. Amendment to Adaptive Reuse Site Plan. Owner no later than January 24, 2012.
shall submit to City an amended adaptive reuse site plan for the Streets of North Grand
Subdivision that is approved by the Ames City Council.
C. Improvements on Lots 1 and 2. The Owner agrees to complete no later than
September I. 2012 all of the following:
1. Submission of' Evidence of Leases. Owner shall submit to the City
evidence of bindin`, leases from tenants for spaces identified as Retail A and Retail D as
shown on F_xhibit A.
?. Submission of Evidence of Financing. Owner shall submit to City
evidence of lotus closing tor (inancing of construction of improvements on Lots I in an
amount not less than Eight Million Dollars ($8.000.000.00.)
D. Procedure for Review of Information. Decisions by the City as to whether
information submitted by Owner satisfies the requirements of Sections I1.A.. II.B. H.C.I. and
II.C.2 above shall be made by the City Attorney.
III i
SUPPLEMENTAL AGREEMENT TO SL'PERCEDE FIRST A( RI F.MENT
I
A. Performance Bond. Owner and CIty agree that the performance bond provided by
Owner to City as required by the FIRST AGREEMENT shall remain in place until Owner has
satisfied all obligations set out in Division 11.
i
B. Owner and Citv agree that once Owner- has satisfied all oblivations set out in
Division II. the FIRST AGREEMENT and all associated Security shall terminate.
IV
CITY'S REMEDIES
A. 1n that the Owner seeks to persuade and induce the City to approve an Amended
Adaptive Reuse Site Plan by presenting a plan for the development and improvement of the
Lots I and 2. it is understood and agreed that any permits or approvals issued or «ranted by the
City related to the Site Plan, Remote Parking Agreement, or the demolition- excavation. buildino.
or occupancy in Lots I or 2 in the Streets of North Grand Subdivision are conditional in nature
and may be revoked or rescinded by the City in the event the Owner fails to comply with any of
the obligations set out in Division 11, supra.
B. In the event the Owner fails to comply with any of' the obligations set out in
Division 11. supra. the City may give notice of default to Owner and. unless Owner remedies all
deficiencies within thirty days of such notice, this Supplemental A-reement will terminate and
the FIRST AGREEMENT will remain in effect with all rights and remedies therein available to
C itv.
C. The parties agree that all work done by or on behalf of the Owner with respect to
the Lots I and 2, sidewalks. building design and construction, and utilities. if any. shall be made
in compliance with the Approved Site Development Plan.. the Iowa Code, the Ames Municipal
Code, SUDAS. and other federal. state, and Iowa laws and policies of general application,
whether or not such requirements are specifically stated in this Agreement. or as may hereafter
be enacted. All ordinances. regulations. and policies of the City now existing. or as may
hereafter be enacted, shall apply to activity on the Site.
V
COVENANT WITH THE, LAND
This Aareement shall run with the Site and shall be binding upon the Owner. its
successors and assigns until such time as the Owner has completed in an acceptable manner the
Owner's Obligations set out in Division It. at which time this Supplemental Agrecrnent and all
associated Security shall terminate.
IN WITNESS WHEREOF. the parties hereto have caused this instrument to be
executed effective as of the date first above written.
CITY OF AMES, IOWA
SATE OF IOWA.S'I ORI COUNTY ss.
On this LL_da} of ,1 -\-..._.2012.before me.it Noun
C ? Public in and for the Stan of low a. person dlv appeared Ann fl.
��': P Campbell and Diane R. Voss.to tirepusonalh wn kno and,who.
hcinf by me duly sworn.did sav that tire.\ate the Mawr and Co
Ann I1. Campbell. Mayor Cleik.respectivch,of the City of Antes.low,that the sea]affixed
to the foregoing instrument is the corporate seal of the corporation.
and that the instrument vvas signed and scaled on behalf of the
Attest b}. corporation, by ;tuthorit};01' its CIt COt111CIL as contained in {� i
Resolution No r � c�adopted h� the Ctn Council on the
day of, �012 and that Ann 11_C tmpbcll and Diane R.
,t -�-tin �_ r Foss tcl towl d red the execution of the instrument to he their
Diane R.R. Voss, Clty Clerkvoluntary act and deed and the voluntary act and (iced of the
corporation_by it voluntatih CXCCSaCd-
gat
041 d.� AILL L IFS e Nolan 1 ublic in and f .late i lowa
t' r commi-t n
RY _
Casr - r
roar'
ONA!ner SrA I F Of-IMF A�s l�fO Y<OUN I Y ss.
Grand Center Partners. I,LC On this_f( �dav of d`- __� 2012.before file.
if
Notary Public to and for the State of Iowa,pusonall,� appeared
1, Gregory Kvclon. to file penonallc known_who hcinL,be fine dub
SIM i r allirmcd did sav that that person is 12'l ec_-�� ,ref said
lim 1ed
' re habilit� compa and that said insuumum wrf sicned on
I3v: behalf of the said limited liahihty company be authority of its
manners and the said Gregory Kveton a:know9cd1-,cd the
C71'eZ7 �r%etC�17
_ execution of said utarumma to be lire volun tn act and deed of
-- said Imutcd habilitc comptm b� n nluntarils cx cured.
DOUGI.AS R. MAREK /i' -,i �`
COMMISSION NO.739068 Notar, Puhhc in and for the Sail oflo, a
MY COMMISSION EXPIRES
f
Owner two.
North Uranc a artners, LLC
SfA FF_OF IOWA.STORY COUNTY ss:
t _-.
On this fU day of�}� =_ 201' before me.it
I _--- Not trc Puhln and for[hc State of Iowa.pusonalh appealed
Cir on_Kv-eton. to me pusonalh kncnvn who.bCln nv etc dub'
Bv: sworn or affirmed did sax-that thin person is__I)'j tI �r�iff said
GreL,ory V tC)!7� limited habihh comp am f' and that said instrument w is signed on
behalf of the said limited habila� comet is h% aUthOrlic of It,
managers and tine said Grcgon Kve[On acknowicdgec'the execution
of said instrument to be the voluntan act and(iced of said limited
DOUGLASR. MAREK habiht, cOinpan, h it Vt,luntarik Cx tinted
COMMISSION NO.739068 ��e state
MY COMMISSION EXPIRES Pnhlie it)and f�,r h t,f1t,,,a
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