I-2 - Economic Development Grant Agreement - Honey Lane Development

ECONOMIC DEVELOPMENT GRANT AGREEMENT This Agreement is entered into between the City of Tiffin, Iowa (the “City”) and Honey Lane Development, LLC (the “Developer”) as of ________________________, 2024 (the “Commencement Date”). WHEREAS, the City has established the Tiffin Urban Renewal Area (the “Urban Renewal Area”) and has adopted a tax increment ordinance for the Urban Renewal Area; and WHEREAS, the Developer owns certain real property which is situated in the City, lies within the Urban Renewal Area and is more specifically described on Exhibit A hereto (the “Property”); and WHEREAS, the Developer will undertake the construction of certain public infrastructure improvements (the “Public Infrastructure Project”) on the Property in order to promote future commercial development thereon; and WHEREAS, the Developer has requested that the City provide financial assistance in the form of an economic development grant (the “Grant”) to be used by the Developer in paying the costs of constructing the Public Infrastructure Project; and WHEREAS, Chapter 15A of the Code of Iowa authorizes cities to provide grants, loans, guarantees, tax incentives and other financial assistance to or for the benefit of private persons; NOW THEREFORE, the parties hereto agree as follows: A. Developer’s Covenants 1. Commercial Development Project. The Developer agrees to use its best efforts to promote commercial development on the Property, such that the Property is capable of being put to its highest and best commercial use. 2. Public Infrastructure Project Construction. The Developer agrees to cause the construction of the Public Infrastructure Project in accordance with the timeline and specifications set forth on Exhibit B hereto. Prior to constructing the Public Infrastructure Project, the Developer will submit copies of all engineering documents related to the proposed Public Infrastructure Project to the City for review. The City may request reasonable changes in such documents, to ensure compliance with any applicable ordinances or regulations. The City shall retain all rights to inspect the completed Public Infrastructure Project for quality of work and full compliance with the City Code. Nothing in this subsection shall be interpreted as limiting the City’s rights to not accept the work if the Public Infrastructure Project is not completed to the satisfaction of the City. Upon completion of the Public Infrastructure Project, provided that (i) such improvements are of the type ordinarily dedicated to the City; (ii) the City confirms to the Developer in writing that such completed improvements meet City requirements; and (iii) the