Resolutions-2022-087

DEVELOPMENT AGREEMENT This Agreement is entered into between the City of Tiffin, Iowa (the “City”) and Iowa Development Group, Inc. (the “Developer”) as of the 18th day of October, 2022 (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 has proposed to sell the Property to a corporate dental clinic (the “Dental Clinic”); and WHEREAS, the Dental Clinic has proposed to construct a new dental clinic building (the “Project”) on the Property for use in the business operations of a dental practice; and WHEREAS, the City has agreed to provide a financial incentive to the Developer in the form of incremental property tax payments in recognition of the Developer’s economic development initiatives on the Property; and WHEREAS, the base valuation of the Property for purposes of calculating Incremental Property Tax Revenues (as herein defined) under this Agreement and Section 403.19 of the Code of Iowa shall be the assessed taxable valuation of the Property as of January 1, 2023 (the “Base Valuation”); 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. Disposition of Property. The Developer agrees to sell the Property to the Dental Clinic by December 31, 2022. The Developer agrees to notify the City when the real estate transaction with respect to the disposition of the Property to the Developer is complete. The Developer acknowledges that in order for the Developer to be eligible to receive the Payments (as hereinafter defined), the Dental Clinic must complete construction of the Project by December 31, 2023. 2. Property Taxes. The Developer hereby acknowledges that the funding of Payments is contingent upon the full and timely payments of property taxes as may from time to time become due and owing with respect to the Property with the Project thereon.