Resolutions-2016-072 (4)

DocuSign Envelope ID: 2229A71F- OC3E- 472D- A9DE- E33376BE2379 DEVELOPMENT AGREEMENT This Agreement is entered into between the City of Tiffin, Iowa ( the " City") and TAT, LLC ( the " Developer") as of the day of 2016 ( the Commencement Date"). WHEREAS, the City and the Developer have been in discussions regarding the development ( the " Park Place Development Project") of certain real property situated within in the Tiffin Urban Renewal Area ( the " Urban Renewal Area"), including the construction of certain public infrastructure projects; and WHEREAS, the Developer agreed to cause the engineering of preliminary infrastructure designs and land use plans associated with the Park Place Development Project( the " Planning and Design Project"), and WHEREAS, the Developer has requested that the City provide financial assistance in the form of incremental property tax payments to be used by the Developer in defraying the costs of the Planning and Design Project; 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; and NOW, THEREFORE, in consideration of the mutual obligations contained in this Agreement, the parties hereto agree as follows: A. Developer' s Covenants - Planning and Design Proiect. The Developer agrees to enter into a professional services agreement ( the " Professional Services Agreement") in substantially the form attached hereto as Exhibit A with MMS Consultants, Inc. ( the " Engineer"), pursuant to which the Developer will engage the Engineer to undertake the Planning and Design Project. The Developer hereby agrees to enter into the Professional Services Agreement by no later than December 31, 2016. The Developer further agrees to demonstrate to the satisfaction of the City the actual fees incurred by the Developer under the Professional Services Agreement ( the " Actual Design Fees"). To the extent that the Developer has not demonstrated to the satisfaction of the City the Actual Design Fees by May 31, 2018, this Agreement will terminate. B. Developer' s Covenants 1. Payments. In recognition of the Developer' obligations set out above, the City agrees to make two ( 2) economic development tax increment payments ( the Payments") to the Developer pursuant to Chapters 15A and 403 of the Code of Iowa, on December 1, 2017 and June 1, 2018. The aggregate amount of the Payments shall not exceed an amount equal to the lesser of( i) $427, 500 or( ii) the Actual Design Fees. 1