I-2 - Resolution 2024-049 - Approving Second Amended Development Agreement with DERS - The Baltic

RESOLUTION NO. 2024-049 A Resolution Approving Second Amended Development Agreement with DERS Development, LLC and DERS Tiffin, LLC, and Authorizing Tax Increment Payments and Pledging Certain Tax Increment Revenues to the Payment of the Agreement WHEREAS, the City of Tiffin, Iowa (the “City”), pursuant to and in strict compliance with all laws applicable to the City, and in particular the provisions of Chapter 403 of the Code of Iowa, has adopted an Urban Renewal Plan for the 2017 Park Place Commercial Urban Renewal Area (the “Urban Renewal Area”); and WHEREAS, this Council has adopted an ordinance providing for the division of taxes levied on taxable property in the Urban Renewal Area pursuant to Section 403.19 of the Code of Iowa and establishing the fund referred to in Subsection 2 of Section 403.19 of the Code of Iowa, which fund and the portion of taxes referred to in that subsection may be irrevocably pledged by the City for the payment of the principal of and interest on indebtedness incurred under the authority of Section 403.9 of the Code of Iowa to finance or refinance in whole or in part projects in the Urban Renewal Area; and WHEREAS, the City has previously entered into a certain development agreement (the “Original Agreement”) with DERS Development, LLC (the “Developer”) and DERS Tiffin, LLC (the “Recipient”) in connection with the development by the Developer of the certain real property through the installation of certain public infrastructure improvements (the “Project”) and the subsequent development of new commercial facilities thereon; and WHEREAS, the City, the Developer and the Recipient entered into an amended development agreement (the “First Amended Agreement”) in order to increase the amount of incremental property tax payments to be provided to the Recipient from an amount not to exceed $12,000,000 to an amount not to exceed $15,000,000; and WHEREAS, the City and the Developer now propose to amend the First Amended Agreement in order to modify the legal description of the Development Property (as defined in the First Amended Agreement); and WHEREAS, a second amended development agreement (the “Second Amended Agreement”) has been prepared to set forth the new understanding between the City and the Developer; and WHEREAS, Chapter 15A of the Code of Iowa (“Chapter 15A”) declares that economic development is a public purpose for which a City may provide grants, loans, tax incentives, guarantees and other financial assistance to or for the benefit of private persons; and WHEREAS, Chapter 15A requires that before public funds are used for grants, loans, tax incentives or other financial assistance, a City Council must determine that a public purpose will reasonably be accomplished by the spending or use of those funds; and