I-3 - Development Agreement -MD Real Estate - Draft

DEVELOPMENT AGREEMENT This Agreement is entered into between the City of Tiffin, Iowa (the “City”) and MD Real Estate, LLC d/b/a Tiffin Family Care (the “Clinic”) as of the ___ day of ________________, 2021 (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 Clinic owns certain real property which is situated in the Urban Renewal Area and is more specifically described on Exhibit A hereto (the “Property”); and WHEREAS, the Clinic has undertaken the construction (the “Project”) and operation of a medical clinic on the Property; and WHEREAS, the Clinic has requested that the City provide financial assistance in the form of incremental property tax payments to be used by the Clinic in paying the costs of undertaking the Project; and WHEREAS, for purposes of calculating Incremental Property Tax Revenues (as herein defined) under this Agreement and Section 403.19 of the Code of Iowa, the base valuation (the “Base Valuation”) of the Property shall be $________________; and WHEREAS, Chapter 403 of the Code of Iowa authorizes cities to establish urban renewal areas and to undertake economic development projects; 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. Clinic’s Covenants 1. Project. The Clinic has constructed the Project on the Property. The Clinic agrees to maintain and use the completed Project in the business operations of a medical clinic throughout the Term (as hereinafter defined). 2. Property Taxes. The Clinic agrees to make or ensure timely payment of all property taxes as they come due with respect to the Property with the completed Project thereon throughout the Term (as hereinafter defined) and to submit a receipt or cancelled check in evidence of each such payment. 3. Company’s Certifications. The Company agrees to submit reasonable documentation to the satisfaction of the City by no later than each October 15 during the Term, as hereinafter defined, commencing October 15, 2021, demonstrating that the completed Project is being used in the business operations of a medical clinic. 4820-9541-0390\1