HomeMy WebLinkAboutA001 - Council Action Form dated March 11, 2025ITEM #:34
DATE:03-11-25
DEPT:P&H
SUBJECT:JT WAREHOUSE SUBDIVISION (EAST 13TH STREET)
AGREEMENT CHANGES
COUNCIL ACTION FORM
BACKGROUND:
The property owners of Lots 1 and 2 in the JT Warehouse Subdivision located at 3910 (Lot 2) and 4098
(Lot 1) East 13th Street (See Attachment A- Location Map) have requested an amendment to the Public
Improvements Agreement approved as part of the JT Warehouse Subdivision Final Plat in September
2023. A security in the form of a bond was also posted by the developer. The request is to amend the
deadline for the developer to construct public improvements from the current date of November
1, 2024 to September 27, 2026. No public improvements were completed by November 1, as there
have been delays in starting the project as originally forecasted by the developer.
The City's Subdivision standards in Chapter 23 allow for Public Improvement guarantees of up
to three years from the date of Final Plat approval. The proposed deadline change complies with
this standard based upon when the Final Plat was approved in 2023. The developer is requesting
the extension to allow additional time to finish constructing the Public Improvements they are
responsible for in anticipation of development occurring at this site. The amended Public Improvement
Agreement is attached. (See Attachment B- Amended Public Improvement Agreement)
"REGIONAL MALL" CONTRACT REZONING AND DEVELOPMENT AGREEMENT:
The City Council is also being asked to approve a resolution that site is not subject to the original
"Regional Mall" Development Agreement effectuated in 2007 for commercial development under
Planned Regional Commercial (PRC) with the Northeast Gateway Overlay (O-GNE) zoning for
three sites referred to as the North Site, South Site, and East Barilla site.
The subject site is part of the East Barilla site legal description in the agreement. The developer seeks
this acknowledgement because the original Agreement prohibits applying for any form of tax
abatement related to properties subject to the Agreement. The developer is approved to build an
industrial warehouse on the site under General Industrial zoning and desires to apply for the citywide
industrial tax abatement program to facilitate the project. Because the current zoning is industrial and
not commercial, there is ambiguity as to the applicability of the Agreement to the site.
The site was originally part of a 2005 rezoning approval to PRC/O-GNE for all of the land, subject to
conformance with the development agreement recorded in 2007. Subsequently in 2009, the East Barilla
Site was rezoned from PRC to Planned Industrial (PI) with the O-GNE. At that time, the Agreement
was not repealed or amended specifically and still shows as recorded on the property title.
This property was more recently rezoned from Planned Industrial with the Northeast Gateway Overlay
(O-GNE) to General Industrial (GI) with a Masterplan in 2023 in anticipation of industrial
development. At that time there was only a statement that the original agreement has no specific
improvement requirements related to the site when zoned PRC originally and no amendment to the
Agreement was proposed by the applicant or suggested by staff. The site currently has no commercial
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zoning or overlay zoning applying to it.
After review of the Agreement at the request of the developer in February 2025, City staff and the City
Attorney believe that it only applies to sites with PRC zoning and O-GNE zoning. Since the agreement
was never modified with the industrial rezonings, the legal description of its applicability has carried
through as applying to the site despite its rezoning, thus creating the confusion. Staff believes that with
the rezoning of the site in 2023 that removed all forms of zoning for the site related to the original
agreement, by its definition of terms for the Rezoning Ordinance referenced in the Agreement,
the Agreement does not in any part apply to the current GI zoned land. The proposed Resolution
will confirm that the Agreement does not apply and specifically that the language restricting Tax
Abatement no longer applies to the current Industrial zoning. This action will allow for the owner
of the property to seek industrial tax abatement if they have qualifying improvements in the
future.
If the City Council does not concur with staff's interpretation of the Agreement's applicability to
the site, the developer would then initiate a rezoning process to seek an amendment to the
Agreement to remove the tax abatement prohibition. This process would take approximately
eight weeks and would be subject to Council approval of a rezoning and amendment to the
Agreement.
ALTERNATIVES:
1. Approve by resolution:
a. Amendment to the Public Improvements Agreement to extend it until September 27, 2026
b. Acknowledgment of release of site from Development and Contract Rezoning Agreement
For this Alternative, the property owners must sign the Public Improvement agreement prior to the
Council meeting.
2. Approve by resolution only the amendment to the Public Improvements Agreement
3. Deny proposed amendments.
CITY MANAGER'S RECOMMENDED ACTION:
The developer's request of extension of the public improvements is consistent with City standards
and does not impair the ability to serve any other land in the area by granting the extension. The
acknowledgement of the release of the site from the original Agreement because the site is not
zoned PRC is consistent with the terms of the Agreement and the City's intent with the 2023
rezoning of the site to General Industrial.
Therefore, it is the recommendation of the City Manager that the City Council approve Alternative #1,
as described above.
ATTACHMENT(S):
Attachment A- JT Warehouse Subdivision Location Map.pdf
Attachment B-Draft Amendment to Agr for Public Imps (2.19.25V2 draft).pdf
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II
PRC
PI
GI
PI
O-GNE
E 13TH ST 220TH ST
JT Ware house Subdivision Pr operty Location ´
JT Warehouse Subdivision Location (Shaded)
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Type of Document: AMENDMENT TO AGREEMENT FOR PUBLIC IMPROVEMENTS
Preparer Information: Equis Law Group, LLC, 2901 Butterfield Road, Oak Brook, IL 60523,
Attn: Robert M. Silverman 630-586-2937
Return Document to: Equis Law Group, LLC, 2901 Butterfield Road, Oak Brook, IL 60523,
Attn: Robert M. Silverman
Party 1: City of Ames, Iowa
Party 2: Ophir Investments, L.L.C., an Iowa limited liability company
Party 3: R-Pact Holdings, LLC, an Iowa limited liability company
Legal Description:
Lots 1 and 2 in JT Warehouse Subdivision, an Official Plat, now included in and forming
a part of the City of Ames, Story County, Iowa.
Instrument number of previously recorded document: Instrument No. 2023-06863
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AMENDMENT TO AGREEMENT FOR PUBLIC IMPROVEMENTS
THIS AMENDMENT TO AGREEMENT FOR PUBLIC IMPROVEMENTS (this
“Amendment”) is made as of ______________________, 2025, by and among the CITY OF
AMES, IOWA (the “City”), OPHIR INVESTMENTS, L.L.C., an Iowa limited liability company
(“Lot 1 Owner”), and R-PACT HOLDINGS, LLC, an Iowa limited liability company (“Lot 2
Owner”; Lot 1 Owner and Lot 2 Owner, collectively, “Owners”).
WHEREAS, Lot 1 Owner is the owner of the land legally described on Exhibit A attached
hereto and made a part hereof (“Lot 1”).
WHEREAS, Lot 2 Owner is the owner of the land legally described on Exhibit B attached
hereto and made a part hereof (“Lot 2”; Lot 1 and Lot 2, collectively, the “Property”).
WHEREAS, the City and Owners (as successors-in-interest to Jordon Elwell Properties,
L.L.C., an Iowa limited liability company, and Todd Rueter and Constance Rueter, husband and
wife (collectively, the “Former Owners”)) are the parties to that certain Agreement for Public
Improvements dated August 28, 2023, and recorded on September 27, 2023, in the Recorder’s
Office of Story County, Iowa, as Instrument No. 2023-06863 (the “Agreement”) with respect to
the Property.
WHEREAS, the second Whereas clause of Agreement required the Former Owners to
construct certain improvements and utilities by not later than November 1, 2024.
WHEREAS, the Former Owners did not construct such improvements and utilities by such
date, and the parties to this Amendment desire to change such date from November 1, 2024, to
September 27, 2026.
NOW, THEREFORE, in consideration of the mutual covenants and conditions contained
herein and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound hereby, covenant and agree as
follows:
1. Recitals. The above recitals are hereby incorporated into this Amendment as if fully
set forth herein.
2. Amendment of the Second Whereas Clause. The second Whereas clause of the
Agreement is hereby amended to delete therefrom the date “November 1, 2024” and insert in lieu
thereof the date “September 27, 2025”.
3. Successors and Assigns. This Amendment shall run with the land and be binding
upon and inure to the benefit of the City and Owners and their respective successors and assigns.
4. Conflict; Ratification. Except as specifically amended this Amendment, all of the
terms, covenants, conditions and provisions of the Agreement are, and shall remain, in full force
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and effect and are hereby ratified and confirmed by the parties hereto. All future references to the
Agreement shall include this Amendment.
5. Power and Authority. Each party represents and warrants to the other that it is fully
empowered and authorized to execute and deliver this Amendment, and the individual signing this
Amendment on behalf of such party represents and warrants to the other party that he or she is
fully empowered and authorized to do so.
6. Counterparts. This Amendment may be executed in one or more counterparts, each
of which shall be deemed an original, and all of which, when taken together, shall be deemed one
document.
7. Governing Law. This Amendment shall be governed by, interpreted under, and
construed and enforceable in accordance with, the laws of the State of Iowa.
[Signature Pages Follow]
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Passed and approved on ___________________, 2025, by Resolution No. __________ adopted
by the City Council of the City of Ames.
CITY:
City of Ames, Iowa
By: _______________________
Printed name: _______________
Its Mayor.
Attest:
By: _______________________
Printed name: ______________
Its City Clerk.
STATE OF IOWA, _____________ COUNTY
This record was acknowledged before me on the ______ of __________________, 2025,
by _____________________ and ______________________, as Mayor and City Clerk,
respectively, of the City of Ames, Iowa.
______________________________
(NOTARY SEAL) Notary Public in and for said State
[SIGNATURE PAGE TO AMENDMENT TO AGREEMENT FOR PUBLIC IMPROVEMENTS]
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LOT 1 OWNER:
Ophir Investments, L.L.C.,
an Iowa limited liability company
By: ____________________________
Printed name: ____________________
Its: _____________________________
STATE OF IOWA, _____________ COUNTY
This record was acknowledged before me on the ______ of __________________, 2025,
by _____________________, the ______________________ of Ophir Investments, L.L.C., an
Iowa limited liability company.
______________________________
(NOTARY SEAL) Notary Public in and for said State
[SIGNATURE PAGE TO AMENDMENT TO AGREEMENT FOR PUBLIC IMPROVEMENTS]
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LOT 2 OWNER:
R-Pact Holdings, LLC,
an Iowa limited liability company
By: ____________________________
Printed name: ____________________
Its: _____________________________
STATE OF IOWA, _____________ COUNTY
This record was acknowledged before me on the ______ of __________________, 2025,
by _____________________, the ______________________ of R-Pact Holdings, LLC, an Iowa
limited liability company.
______________________________
(NOTARY SEAL) Notary Public in and for said State
[SIGNATURE PAGE TO AMENDMENT TO AGREEMENT FOR PUBLIC IMPROVEMENTS]
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EXHIBIT A
Legal Description of Lot 1
Lot 1 in JT Warehouse Subdivision, an Official Plat, now included in and forming a part of the
City of Ames, Story County, Iowa.
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EXHIBIT B
Legal Description of Lot 2
Lot 2 in JT Warehouse Subdivision, an Official Plat, now included in and forming a part of the
City of Ames, Story County, Iowa.
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