Resolutions-2015-056

DEVELOPMENT AGREEMENT This Agreement is entered into between the City of Tiffin, Iowa (the “City”) and Big Country Properties, LLC (the “Company”) as of the 22 day of April, 2015 (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 Company has proposed to undertake the expansion of its facilities on certain real property (the “Property”) situated at 1050 Greenfield Drive in the Urban Renewal Area (the “Project”), such Property being more specifically described on Exhibit A hereto; and WHEREAS, the base valuation of the Property, as of January 1, 2015, for purposes of Section 403.19 of the Code of Iowa is $150,300.00 (the “Base Valuation”); and WHEREAS, the Company has requested that the City provide financial assistance in the form of incremental property tax payments to be used by the Company in paying the costs of constructing and maintaining the 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. Company’s Covenants 1. Project. The Company agrees to construct the Project on the Property and to cause the completion of said Project by no later than January 1, 2016. Furthermore, the Company agrees to invest not less than $1,200,000.00 of private funds into the undertaking of the Project. In addition, the Company agrees to maintain and use the Project as part of its commercial warehousing business throughout the Term, as hereinafter defined, of this Agreement. 2. Property Taxes. The Company agrees to make 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. Operational Certification. The Company agrees to submit documentation to the satisfaction of the City by no later than each November 1 during the Term, as hereinafter defined, demonstrating that the Project is being used as part of the Company’s ongoing business operations. 4. Property Tax Payment Certification. Furthermore, the Company agrees to certify to the City by no later than November 1 of each year, commencing November 1, 2015, an amount (the “Company’s Estimate”) equal to the estimated Incremental Property Tax Revenues