Loading...
HomeMy WebLinkAbout05-25-2010 Council Economic Development Committee AGENDA City of Iowa City City Council Economic Development Committee Tuesday, May 25,2010 4:00 p.m. Lobby Conference Room City Hall 1. Call to Order 2. Consider approval of the April 20, 2010 Economic Development Committee meeting minutes 3. Consider a recommendation to the City Council on the Moss Green Urban Village Development Agreement 4. Staff time 5. Committee time 6. Adjoumment draft MINUTES CITY COUNCIL ECONOMIC DEVELOPMENT COMMITTEE APRIL 20, 2010 LOBBY CONFERENCE ROOM, 4:30 P.M. Members Present: Staff Present: Others Present: Regenia Bailey, Matt Hayek, Susan Mims Wendy Ford, Tracy Hightshoe Gigi Wood RECOMMENDATIONS TO COUNCIL: Hayek moved to accept the staff recommendations for the Moss Green Urban Village TIF ordinance as proposed. Mims seconded the motion. Motion carried 3-0. CALL MEETING TO ORDER: The meeting was called to order by Chairperson Bailey at 4:30 P.M. CONSIDER APPROVAL OF THE MINUTES OF THE MARCH 16. 2010. ECONOMIC DEVELOPMENT COMMITTEE MEETING: Mims moved to accept the March 16, 2010, meeting minutes as amended (name spelling). Hayek seconded the motion. Motion carried 3-0. CONSIDER A RECOMMENDATION OF THE MOSS GREEN URBAN VILLAGE TIF ORDINANCE: Ford briefly explained the TIF ordinance which allows for development incentives using tax increment financing. She noted the difference between the TIF ordinance, which simply allows for development agreements to be implemented, and the Development Agreements themselves, that are project-specific and include city-defined performance measures for developers to meet. An economic development driven TIF district can be set up for 20 years, according to Ford, however, a development agreements are typically of a shorter duration. This item will go to the full City Council at their next formal meeting. Hayek moved to accept the staff recommendations for the Moss Green Urban Village TIF ordinance as proposed. Mims seconded the motion. Motion carried 3-0. 1 Economic Development Committee Meeting April 20, 2010 ENERGY EFFICIENCY REVOLVING LOAN FUND PROGRAM UPDATE: Ford noted that last summer the City was awarded $692,300 to create and implement some energy efficiency strategies. Four projects were developed, and Ford explained the one in particular, related to Iowa City economic development. This is the Energy Conservation Opportunity Revolving Loan Fund (ECO-RLF), which has $250,000 ready to loan on a revolving basis for businesses who wish to upgrade, install, or build energy efficient components for their business. The idea is to structure repayment of the loans by the savings realized in energy bills. The interest rate for ECO-RLF loans is set at one half percent, according to Ford. She added that a brochure is available on the City web site, as is the application for the loan program. Bailey suggested they promote the opportunity to the non-profit community as well. STAFF TIME: Ford noted a further correction to the March 2nd minutes, regarding the K-Mart application to change their building exterior. She explained an inaccuracy in the discussion at that meeting and noted that K-Mart had requested the changes to their building and not the Pepperwood Place owners, Kobrin Development Company, Inc. (fka Southgate Development Company, Inc). Hightshoe then gave a brief update regarding the CDBG economic development funds. She stated that since beginning this fund in FY03, they have had 30 applicants, and have funded 18 projects. She explained how they work with private lenders to help these small businesses achieve thefunding they need. She also gave an update on an outstanding loan, noting that they are going through the courts to collect these funds. Hightshoe gave Members some further history on this program, noting some of the recent project successes and challenges they have dealt with. Hightshoe also spoke to Members about an idea that came about through the City STEPS process about a class for preparing high-schoolers for jobs. She stated that they have been working with City High to implement the program, and City High has offered a class to students who are interested. They meet twice a week with these students and work on resumes, job skills, and interview skills, and will even be hosting a small job fair on May 7. Economic Development staff has been working with other interested parties including the UI Small Business Development Center on this project. ADJOURNMENT: Hayek moved to adjourn the meeting at 4:54 pm Mims seconded the motion. Motion carried 3-0. Economic Development Committee Meeting April 20, 2010 Council Economic Development Committee ATTENDANCE RECORD 2010 TERM ...... VJ VJ .j:::o. EXP. - - - - NAME '" '" ...... '" 0 0') 0 Regenia 01/02/11 X X X X Bailey Matt 01/02/11 X X X X Hayek Susan 01/02/11 X X X X Mims Key: X = Present o = Absent OlE = Absent/Excused ,~ 1 -~S-ItI.... !~q~~ :::-~ .-.., _: CITY OF IOWA CITY MEMORANDUM Date: May 21,2010 To: From: Economic Development Committee Jeff Davidson, Director of Planning & Community Developme"'t1-~ Wendy Ford, Economic Development Coordinator May 25, 2010 Economic Development Committee meeting, agenda item #3: Moss Green Urban Village TIF Development Agreement Re: We have had several discussions with you regarding the arrangement we are working out for extension of municipal infrastructure to the Moss Green Urban Village site. The developer is responsible for the construction of all roadway, storm sewer, sanitary sewer, and water service infrastructure to enable the site to be developed. An agreement, attached for your consideration, has been drafted which would use Tax Increment Financing (TIF) funds to reimburse the developer for the expense of the public infrastructure to serve the development site. Details of the agreement are still being negotiated. Following is a summary of the salient points of the proposed agreement, in the order in which they appear: 1. The developer may not seek tax exempt status or locate a tax exempt business in the development site. 2. The developer is required to construct the minimum improvements in accordance with City standards. The minimum improvements are defined as installation of streets, street lighting, sanitary sewers, storm sewers, sanitary sewer trunkline extension, sanitary sewer lift station, sanitary sewer force main extension, water main extension, waterlines, sidewalks, extension of Oakdale Boulevard and Moss Place, together with other related site improvements, public utilities, public utility extensions, as well as all design, engineering, inspection, construction supervision, legal and financing costs. 3. The developer is required to construct the minimum improvements within ten years or the City has the option to terminate the agreement. 4. The amount of tax increment generated will be certified annually and the developer will provide proof that all property taxes have been paid. 5. The City will make up to 20 annual grants to the developer, commencing in 2014 and ending in 2033, not to exceed $13.7 million which is the estimated expense of the minimum improvements that have been agreed to by the City. 6. The annual economic development grants will be equal to 50% of the newly created tax increment from the property. 7. Total economic development grants paid to the developer will be the lesser of: a) 20 years of 50% of the tax increment collected; b) the actual cost of the minimum improvements; or c) $13.7 million. 8. Grants are payable only from the Moss Green TIF account, which is created by the new incremental property taxes derived from new development on the Moss Green property. Please bring any comments or questions to the May 25 EDC meeting. We are asking for a recommendation for the City Council to consider at their meeting on June 1. First Assistant City Attorney Sarah Holecek, who drafted the proposed agreement, will be present to answer questions. If the proposed agreement is not satisfactory to a majority of the Committee, we would appreciate your clarifying what is acceptable so that we can have the agreement ready for the June 1 City Council meeting. cc: Sarah Holecek ppddir/mem/EcDev-5-25-2010Meeting.doc 2 AGREEMENT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE CITY OF IOWA CITY, IOWA AND MOSS GREEN DEVELOPMENT CORPORATION FOR DEVELOPMENT IN THE CITY OF IOWA CITY, IOWA -1- AGREEMENT FOR PRIVATE DEVELOPMENT THIS AGREEMENT FOR PRIVATE DEVELOPMENT (the "Agreement"), is entered into this day of ,2010, by and between the City of Iowa City, Iowa, a political subdivision (the "City") established pursuant to the Code of Iowa and acting under the authorization of Chapter 403 of the Code of Iowa, 2009, as amended, (hereinafter called the "Urban Renewal Act") and Moss Green Development Corporation, an Iowa corporation, having an office for the transaction of business at 3354 Kenruth Circle NE, Iowa City, Iowa 52240 (the "Developer"). WITNESSETH: WHEREAS, in furtherance of the objectives of the Urban Renewal Act, the City has undertaken a program for the revitalization and development of an economic development area in the City of Iowa City, Iowa, and, in this connection, is engaged in carrying out urban renewal project activities in an area known as the Moss Green Urban Village Urban Renewal Plan Area, which area is described in the Moss Green Urban Renewal Plan, approved for such area by Resolution No. 10-137 on April 27, 2010; and WHEREAS, a copy of the foregoing Urban Renewal Plan, as amended, has been recorded among the land records in the office of the Recorder of Johnson County, Iowa; and WHEREAS, the Developer has the right to occupy certain real property located in the foregoing Urban Renewal Area as more particularly described in Exhibit A attached hereto and made a part hereof (which property as so described is hereinafter referred to as the "Development Property"); and WHEREAS, the Developer is willing to cause certain infrastructure and other improvements to be constructed on the Development Property and thereafter to cause the same to be administered in accordance with this Agreement; and WHEREAS, the City believes that the development of the Development Property pursuant to this Agreement and the fulfillment generally of this -2- Agreement are in the vital and best interests of the City and in accord with the public purposes and applicable provisions of State and local laws and requirements under which the foregoing project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I. DEFINITIONS Section 1.1. Definitions. In addition to other definitions set forth in this Agreement, all capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context: Agreement means this Agreement and all appendices hereto, as the same may be from time to time modified, amended or supplemented. Certificate of Completion means one or more certifications in the form of the certificate attached hereto as Exhibit C provided to the Developer pursuant to Section 3.4 of this Agreement. City means the City of Iowa City, Iowa. Code means the Code of Iowa, 2009, as amended. Construction Plans means the plans, specifications, drawings and related documents reflecting the construction work to be performed by the Developer on the Development Property; the Construction Plans shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the city engineer and/or building inspector of the City as required by applicable City codes. County means the County of Johnson, Iowa. Developer means Moss Green Development Corporation, an Iowa Corporation, and its successors and assigns to the extent permitted in this Agreement. -3- Development Property means that portion of the Urban Renewal Area of the City described in Exhibit A attached hereto. Economic Development Grants mean the Tax Increment payments to be made by the City to the Developer under Article VIII of this Agreement. Event of Default means any of the events described in Section 10.1 of this Agreement. First Mortoaoe means any Mortgage granted to secure any loan made pursuant to either a mortgage commitment obtained by the Developer from a commercial lender or other financial institution to fund any portion of the construction costs of the Minimum Improvements, or all such Mortgages as appropriate. Minimum Improvements shall mean the construction of the sanitary sewer trunk line extension, sanitary sewer lift station, force main extension, water main extension, extension of Oakdale Boulevard and Moss Place, together with storm sewer and other related site improvements as outlined in Exhibit "B" attached hereto and incorporated herein. Minimum improvements shall include the Developer's legal, engineering and design expenses to facilitate the development and the costs of financing the construction of said Minimum Improvements. Mortoaoe means any mortgage or security agreement in which the Developer has granted a mortgage or other security interest in the Development Property, or any portion or parcel thereof, or any improvements constructed thereon. Moss Green Development Corporation - Moss Green TIF Account NO.1 means a separate account within the Moss Green Urban Village Urban Renewal Tax Increment Revenue Fund of the City, in which there shall be deposited 50% of the Tax I ncrements received by the City with respect to the Development Property described in Exhibit A. Moss Green Urban Villaoe Urban Renewal Area Tax Increment Fund means the special fund of the City created under the authority of Section 403.19(2) of the Code and the Ordinance, which fund was created in order to pay the principal of and interest on loans, monies advanced to, indebtedness or grants, whether funded, refunded, assumed or otherwise, including bonds or other obligations issued under the authority of Section 403.9 or 403.12 of the Code, incurred by the City to finance or refinance, in whole or in part, projects undertaken pursuant to the Urban Renewal Plan for the Project Area. -4- Net Proceeds means any proceeds paid by an insurer to the Developer under a policy or policies of insurance required to be provided and maintained by the Developer, as the case may be, pursuant to Article V of this Agreement and remaining after deducting all expenses (including fees and disbursements of counsel) incurred in the collection of such proceeds. Ordinance means Ordinance No. of the City, under which the taxes levied on the taxable property in the Project Area shall be divided and a portion paid into the Moss Green Urban Village Urban Renewal Tax Increment Revenue Fund of the City of Iowa City. Proiect means the construction and administration of the Minimum Improvements on the Development Property, as described in this Agreement. State means the State of Iowa. Tax Increments means the property tax revenues with respect to the Development Property added since the date of this Agreement that are divided and made available to the City by the Johnson County Auditor for deposit in the Moss Green Urban Village Urban Renewal Area Tax Increment Revenue Fund under the provisions of Section 403.19 of the Code and the Ordinance. Termination Date means the date of termination of this Agreement, as established in Section 12.9 of this Agreement. Unavoidable Delays means delays resulting from acts or occurrences outside the reasonable control of the party claiming the delay including but not limited to storms, floods, fires, explosions or other casualty losses, unusual weather conditions, strikes, boycotts, lockouts or other labor disputes, delays in transportation or delivery of material or equipment, litigation commenced by third parties, or the acts of any federal, State or local governmental unit (other than the City). Urban Renewal Plan means the Moss Green Urban Village Urban Renewal Plan, as amended, approved in respect of the Moss Green Urban Village Urban Renewal Plan of the City, described in the preambles hereof. ARTICLE II. REPRESENTATIONS AND WARRANTIES -5- Section 2.1. Representations and Warranties of the City. The City makes the following representations and warranties: (a) The City is a municipal corporation and political subdivision organized under the provisions of the Constitution and the laws of the State of Iowa and has the power to enter into this Agreement and carry out its obligations hereunder. (b) The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a breach of, the terms, conditions or provisions of any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which the City is now a party or by which it is bound, nor do they constitute a default under any of the foregoing. Section 2.2 Covenants, Oblioations, Representations and Warranties of Developer. The Developer makes the following representations and warranties: (a) The Developer is a corporation duly organized and validly existing under the laws of the State of Iowa and has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as presently proposed to be conducted, and to enter into and perform its obligations under the Agreement. (b) This Agreement has been duly and validly authorized, executed and delivered by the Developer and, assuming due authorization, execution and delivery by the City, is in full force and effect and is a valid and legally binding instrument of the Developer enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights generally. Attached hereto and incorporated herein as Exhibit F is the opinion of Developer's counsel confirming this covenant. (c) The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a violation or breach of, the terms, conditions or provisions of the Articles of Incorporation and Bylaws of the Developer or its parents or -6- subsidiaries of any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it or its property is bound, nor do they constitute a default under any of the foregoing. (d) There are no actions, suits or proceedings pending or threatened against or affecting the Developer in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the business (present or prospective), financial position or results of operations of the Developer or which in any manner raises any questions affecting the validity of this Agreement or the Developer's ability to perform its obligations under this Agreement. (e) The Developer will cause the Minimum Improvements to be constructed in accordance with the terms of this Agreement, the Urban Renewal Plan and all applicable local, State and federal laws and regulations, except for permitted variances necessary to construct the Minimum Improvements. Subject to unavoidable delay, construction of said Minimum Improvements shall be completed within ten (10) years of the execution of this Agreement, with the City's remedy for failure to complete same being the option to terminate this Agreement as outlined in Section 11.2. All construction plans for the Minimum Improvements shall be approved by the City in accordance with City construction standards prior to commencement of construction of same. The Developer acknowledges and agrees that Moss Place shall continue to be held by Developer as a private street, and the Developer shall continue to maintain such street unless and until Moss Place is otherwise dedicated to and accepted by an organized and viable lot owners' association; the City shall have no maintenance obligations for Moss Place. However, the Developer shall grant to the City, on behalf of the City and the general public at large, a public, emergency and service vehicle access easement over Moss Place, the general terms of which shall be in the form of Exhibit E attached hereto. The Developer also acknowledges and agrees that certain outlots as indicated on the approved preliminary plat shall be held by Developer as private open space, and the Developer shall continue to maintain such open space unless and until the street is otherwise dedicated to and accepted by an organized and viable lot owners' -7- association; the City shall have no maintenance obligations for any private open space. (f) The Developer will use its best efforts to obtain, or cause to be obtained, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, State, and federal laws and regulations which must be obtained or met in connection with the Project. (g) The Developer represents that the Minimum Improvements, with the exception of Moss Place and outlots to be held as private open space, shall be dedicated to the City subject to the terms of this Agreement, and shall exercise its best efforts to accomplish same in a timely manner. (h) The Developer has not received any notice from any local, State or federal official that the activities of the Developer with respect to the Development Property mayor will be in violation of any environmental law or regulation (other than those notices, if any, of which the City has previously been notified in writing). The Developer is not currently aware of any State or federal claim filed or planned to be filed by any party relating to any violation of any local, State or federal environmental law, regulation or review procedure applicable to the Development Property, and the Developer is not currently aware of any violation of any local, State or federal environmental law, regulation or review procedure which would give any person a valid claim under any State or federal environmental statute with respect thereto. (i) The Developer will cooperate fully with the City in resolution of any traffic, parking, trash removal, excessive noise or public safety problems which may arise in connection with the construction of the Minimum Improvements. (j) The Developer would not undertake its obligations under this Agreement without the payment by the City of the Economic Development Grants being made to the Developer pursuant to this Agreement. (k) As a covenant running with the land, the Developer shall not, prior to the expiration of this aQreement, cause or voluntarilv permit the Development Property and/or Minimum Improvements to become -8- other than taxable property by applying for or seeking any industrial property tax exemption, by being owned by a utility or any other entity of a type where the assessed value of taxable property of such entity is not treated as taxable or as located within the Development Property, by beino owned by any entity havino tax exempt status or by applyino for or seekino a deferral. abatement or exemption from property tax pursuant to any present or future statute or ordinance. Developer agrees to memorialize this requirement as a covenant and restriction within any deed issued for any real estate contained, in whole or part, within the Development Property. Said deed restriction shall take the form of the language outlined in this paragraph. (I) Upon completion of the Minimum Improvements, and after the City has issued a Certificate of Completion, the Developer will provide the City with a deed to convey the rights for said public improvements and related rights of way free and clear of all liens pursuant to section 2.2(e). (m) In amplification, and not in restriction of, the provisions of the preceding Section, it is intended and agreed that the City and its successors and assigns shall be deemed beneficiaries of the agreements and covenants provided in Section 2.2 hereof, both for and in its own right and also for the purposes of protecting the interests of the community and other parties, public or private, in whose favor or for whose benefit such agreements and covenants have been provided. Such agreements and covenants shall run in favor of the City, without regard to whether the City has at any time been, remains, or is an owner of any land or interest therein to or in favor of which such agreements and covenants relate. ARTICLE III. CONSTRUCTION AND DEVELOPMENT REQUIREMENTS Section 3.1 Construction of Minimum Improvements. The Developer agrees that it will cause the Minimum Improvements and all related site improvements, as more fully described on Exhibit "8" attached hereto, to be constructed on the Development Property in conformance with the Construction Plans submitted to, and approved by, the City. The Developer agrees that the scope and scale of the Minimum Improvements to be constructed shall not be significantly less than the scope and scale thereof as detailed and outlined in Exhibit "8" and the Construction Plans, as so approved. -9- Section 3.2. Construction Plans. The Developer shall present the Construction Plans for the Minimum Improvements to the City for approval and shall be in conformity with the Urban Renewal Plan, this Agreement, and all applicable State and local laws and regulations. The City's approval of said Construction Plans shall be signified by the City issuing a building permit; and the City shall approve the Minimum Improvement Construction Plans contemporaneously with its approval of the Final Plat for the Moss Green Urban Village Subdivision. The Construction Plans shall (a) conform to the terms and condition of this Agreement; (b) conform to the terms and conditions of the Urban Renewal Plan; (c) conform to all applicable federal, State and local laws, ordinances, rules and regulations, and (d) shall be adequate for the purposes of this Agreement to provide for the construction of the Minimum Improvements. Provided, however, that any such approval of the Construction Plans pursuant to this Section 3.2 shall constitute approval for the purposes of this Agreement only and shall not be deemed to constitute approval or waiver by the City for any other purpose, including but not limited to, any building, fire, zoning or other ordinances or regulations. Approval of the Construction Plans by City shall not relieve the Developer of any obligation to comply with the remaining terms and provisions of this Agreement, or the provisions of applicable federal, State and local laws, ordinances and regulations, nor shall approval of the Construction Plans by the City be deemed to constitute a waiver of any Event of Default. Approval of Construction Plans hereunder is solely for purposes under this section of this Agreement, and shall not constitute approval for any other City purpose or subject the City to any liability for the Minimum Improvements or Minimum Improvements as constructed. Section 3.3 Commencement and Completion of Construction of Minimum Improvements. Subject to Unavoidable Delays, the Developer shall cause construction of the Minimum Improvements to be undertaken and completed in conformity with the Construction Plans approved by the applicable City building officials or any amendments thereto as may be approved by City building officials, with construction of said Minimum Improvements to be completed within ten (10) years of the execution of this Agreement, with the City's remedy for failure to complete same being the option to terminate this Agreement as outlined in Section 11.2. The Developer agrees that it shall permit designated representatives of the City, upon reasonable notice to the Developer (which does not have to be written), to enter upon the Development Property during the construction of the Minimum -10- Improvements in order to inspect such construction and the progress thereof. However, such inspection shall not relieve or release the Developer from the responsibility to construct said Minimum Improvements pursuant to the approved plans and specifications. Further, said inspections shall not create a duty or warranty on the part of the City to ensure construction of said improvements in accordance with said plans and specifications. Upon notice of completion of the Minimum Improvements, or any portion thereof then being dedicated to the City by the Developer, the City shall inspect the Minimum Improvements and determine whether they have been completed in accordance with this Agreement. If the City finds that the applicable portion of the Minimum Improvements has been duly completed and acceptance is in the best interests of the City, the City shall accept dedication of those completed Minimum Improvements. If the City determines that the Minimum Improvements are not acceptable, it shall notify the Developer within ten (10) days in the form described in Section 3.4 below. Section 3.4. Certificate of Completion for Minimum Improvements. Upon written request of the Developer, after completion of any or a portion of the Minimum Improvements, the City shall inspect, and if satisfied, shall accept said Improvements, and, after acceptance, furnish the Developer with a Certificate of Completion in recordable form, in substantially the form set forth in Exhibit C attached hereto. Such Certificate of Completion shall be a conclusive determination of satisfactory termination of the covenants and conditions of this Agreement solely with respect to the obligations of the Developer to construct the applicable portion of the Minimum Improvements. The Certificate of Completion may be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Development Property at the Developer's sole expense. If the City shall refuse or fail to provide a Certificate of Completion in accordance with the provisions of this Section 3.4, the City shall, within twenty (20) days after written request by the Developer, provide the Developer with a written statement indicating in adequate detail in what respects the Developer has failed to complete the applicable portion of the Minimum Improvements in accordance with the provisions of this Agreement, or is otherwise in default under the terms of this Agreement, and what measures or acts will be necessary, in the opinion of the City, for the Developer to take or perform in order to obtain such Certificate of Completion. ARTICLE IV. RESERVED ARTICLE V. INSURANCE -11- Section 5.1. Insurance Requirements. (a) Insurance Durino Construction. Developer will provide and maintain (or cause to be maintained in the case of construction by another entity) at all times during the process of constructing the Minimum Improvements, at its sole cost and expense (prior to acceptance of dedication of any applicable portion by City) (and, from time to time at the request of the City, furnish the City with proof of payment of premiums on) insurance as follows: (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured through property policies against risk by similar businesses, including (without limitation the generality of the foregoing) fire, extended coverage, vandalism and malicious mischief, explosion, water damage, demolition cost, debris removal, and collapse in an amount not less than the full insurable replacement value of the Minimum Improvements, but any such policy may have a deductible amount of not more than $250,000. No policy of insurance shall be so written that the proceeds thereof will produce less than the minimum coverage required by the preceding sentence, by reason of co-insurance provisions or otherwise, without the prior consent thereto in writing by the City. The term "full insurable replacement value" shall mean the actual replacement cost of the Minimum Improvements (excluding foundation and excavation costs and costs of underground flues, pipes, drains and other uninsurable items) and equipment, and shall be determined from time to time at the request of the City, but not more frequently than once every three years, by an insurance consultant or insurer selected and paid for by the Developer and approved by the City. (ii) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations, contractual liability and personal injury liability for injuries to persons and/or property, including any injuries resulting from the operation of automobiles or other motorized vehicles on or about the development property) with limits against bodily injury and property damage of at least $1,000,000 per occurrence and for each year. The City shall -12- be named as an additional insured for the City's liability or loss arising out of or in any way associated with the project and arising out of any act, error, or omission of Developers; Developers' directors, officers, shareholders, contractors and subcontractors or anyone else for whose acts the City may be held responsible (with coverage to the City at least as broad as that which is provided to Developers and not lessened or avoided by endorsement). The policy shall contain a "severability of interests" clause and provide primary insurance over any other insurance maintained by the City. (ii) Worker's compensation insurance, with statutory coverage. (b) All insurance required by this Article V to be provided prior to the Termination Date shall be taken out and maintained in responsible insurance companies selected by the Developer which are authorized under the laws of the State of Iowa to assume the risks covered thereby. The Developer will deposit annually with the City copies of policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V, each policy shall contain a provision that the insurer shall not cancel or modify it without giving written notice to the Developer and the City at least thirty (30) days before the cancellation or modification becomes effective. Not less than fifteen (15) days prior to the expiration of any policy, the Developer shall furnish the City evidence satisfactory to the City that the policy has been renewed or replaced by another policy conforming to the provisions of this Article V, or that there is no necessity therefore under the terms hereof. In lieu of separate policies, the Developer may maintain a single policy, or blanket or umbrella policies, or a combination thereof, which provide the total coverage required herein, in which event the Developer shall deposit with the City a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. (c) The Developer agrees to notify the City immediately in the case of damage exceeding $250,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. Net Proceeds of any such insurance shall be paid directly to the Developer, and the Developer will forthwith repair, reconstruct and restore the Minimum Improvements to substantially the same or an improved condition or value as they existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, the Developer will -13- apply the Net Proceeds of any insurance relating to such damage received by the Developer to the payment or reimbursement of the costs thereof. (d) The Developer shall complete the repair, reconstruction and restoration of the Minimum Improvements, whether or not the Net Proceeds of insurance received by the Developer for such purposes are sufficient. ARTICLE VI. COVENANTS OF THE DEVELOPER Section 6.1. Maintenance of Properties. The Developer will maintain, preserve and keep the Development Property and the Minimum Improvements in good repair and working order, ordinary wear and tear excepted, and from time to time will make all necessary repairs, replacements, renewals and additions. This duty shall cease as to any Minimum Improvements dedicated to or conveyed to and accepted by the City, and/or upon a permitted sale of any Minimum Improvements. Section 6.2. Maintenance of Records. The Developer will keep at all times proper books of record and account in which full, true and correct entries will be made of all dealings and transactions of or in relation to the business and affairs of the Developer in accordance with generally accepted accounting principles, consistently applied throughout the period involved, and the Developer will provide reasonable protection against loss or damage to such books of record and account. Section 6.3. Compliance with Laws. The Developer will comply with all applicable laws, rules and regulations relating to the Development Property. Section 6.4. Non-Discrimination. In constructing the Minimum Improvements and selling lots within the Development Property, the Developer shall not discriminate against any person because of race, creed, color, sex, national origin, age, gender identity, marital status, religion, disability or sexual orientation. The Developer shall ensure that applicants, employees, potential purchasers and tenants are considered and are treated without regard to their race, creed, color, sex, national origin, age, gender identity, marital status, religion, physical disability, sexual orientation or familial status Section 6.5 Reserved. Section 6.6. Reserved. -14- Section 6.7. Annual Certification. To assist the City in monitoring the performance of the Developer hereunder, a duly authorized officer of the Developer shall annually provide to the City for each phase of the project the following: (a) a written statement from the County Auditor showing the amount of estimated Tax Increments (as defined in Section 1.1 of this Agreement) in respect of each phase of the project (excluding increases in assessed or actual value due to market factors) for the following fiscal year; (b) proof that all ad valorem taxes on the Development Property due and payable by Developer or other third parties have been paid for the prior fiscal year; and (c) certification that such officer has re-examined the terms and provisions of this Agreement and, to the best of that officer's knowledge and belief at the date of such certificate, and during the preceding twelve (12) months, the Developer was not in default in the fulfillment of any of the terms and conditions of this Agreement and that no Event of Default (or event which, with the lapse of time or the given of notice, or both, would become an Event of Default) is occurring or has occurred as of the date of such certificate or during such period, or if the signer is aware of any such default, event or Event of Default, said officer shall disclose in such statement the nature thereof, its period of existence and actions taken to correct any such default; (d) receipts, invoices and any other proof of payment or expense for which it seeks reimbursement for construction of the Minimum Improvements with a corresponding spreadsheet in both hard-copy and electronic format. Such statement, proof and certificate described above, shall be provided to the City for each phase of the Project not later than November 1 of each year, commencing November 1, 2011. -15- ARTICLE VII. ASSIGNMENT AND TRANSFER Section 7.1. Status of the Developer: Transfer of Substantiallv All Assets. As security for the obligations of the Developer under this Agreement, the Developer represents and agrees that, prior to the Termination Date, the Developer will maintain its existence as an adequately capitalized corporation and will not wind up or otherwise dispose of all or substantially all of the Minimum Improvements and Development Property, or assign, participate, or otherwise act in such manner as to convey to any third party any interest in this Agreement to any other party unless (i) the transferee, partnership, corporation, limited liability company or individual assumes in writing all of the obligations of the Developer under this agreement and (ii) the City consents thereto in writing in advance thereof, which consent shall not be unreasonably denied, delayed or withheld. Notwithstanding the foregoing, however, or any other provisions of this Agreement, the Developer may (1) pledge any and/or all of its assets and real estate as security for any financing of the Minimum Improvements or construction of other improvements on the Project to a commercial lender, or; (2) sell one or more individual lots in the Development Property to third parties after approval of a final plat containing the Minimum Improvements or a portion thereof in accordance with the terms of any Subdivider's Agreement for said final plat. ARTICLE VIII. ECONOMIC DEVELOPMENT GRANTS Section 8.1. Economic Development Grants. (a) For and in consideration of the obligations being assumed by the Developer hereunder, and in furtherance of the goals and objectives of the Urban Renewal Plan for the Project Area and the Urban Renewal Act, the City agrees to make up to a maximum of twenty (20) annual grants to the Developer, subject to the Developer having received a Certificate of Completion and being and remaining in compliance with the terms of this Agreement and subject to the terms of this Article VIII. Such annual grants will commence once the developer requests to certify debt, which must occur no later than November 1 of the year in which the Developer wishes to certify debt. If the Developer wishes to certify debt and the City certifies debt to the County Auditor per section 6.7, the Developer shall receive the first economic development grant on June 1 following the fiscal year after such certification (for example, if the City shall certify to the County prior to December 1 of the year of Developer's -16- request, it shall be eligible for the available Tax Increments resulting from the assessments imposed by the County as of January 1 of that year, to be collected by the City as taxes are paid during the following fiscal year and which shall thereafter be disbursed to the Developer on June 1 of that fiscal year. (Example: if Developer and the City each so certify in November 2012, the first Economic Development Grant would be paid to Developer on June 1,2014.) Such economic development grants shall cease when the total of all grants is equal to the lesser of $13,700,000, the total amount of certified expenditures on the Minimum Improvements or twenty (20) years from the date of the first certification of debt. All annual grants shall be equal to fifty percent (50%) per fiscal year of the Tax Increments or the total of receipts, invoices and any other proof of payment or expense for which it seeks reimbursement for construction of the Minimum Improvements per section 6.7 (unless the total grant amount of $13,700,000 or twenty (20) years from the date of certification is reached first) collected by the City with respect to the Development Property pursuant to Section 403.9 of the Urban Renewal Act under the terms of the Ordinance (without regard to any averaging that may otherwise be utilized under Section 403.19(6) and excluding any interest that may accrue thereon prior to payment to the Developer) during the preceding twelve month period in respect of the Development Property and Minimum Improvements, but subject to adjustment and conditions precedent as provided in this Article (such payments being referred to collectively as the "Economic Development Grants"). (b) The obligation of the City to make an Economic Development Grant to the Developer in any year shall be subject to and conditioned upon the terms of this Article and timely filing by the Developer of the annual statement, proof and certification required under Section 6.7 hereof. Beginning with the first November 1 certification, if such annual statement, proof and certification is timely filed and contains the information required under Section 6.7 and the City approves of the same, the City shall certify to the appropriate County office prior to December 1 of that year its request for the available Tax Increments resulting from the assessments imposed by the County as of January 1 of that year, to be collected by the County as taxes are paid during the following fiscal year and which shall thereafter be disbursed to the Developer pursuant to 8.1 (a). (For example, if the Developer and the City each so certify on November and December -17- 2012, respectively, the first Economic Development Grant would be paid to the Developer on June 1, 2014). (c) In the event that the annual statement, proof or certificate required to be delivered by the Developer under Section 6.7 is not delivered to the City by November 1 of any year, the Developer recognizes and agrees that the City may have insufficient time to review and approve the same and certify its request for Tax Increments to the County and that, as a result, no Economic Development Grant may be made to the Developer in respect thereof. The City covenants to act in good faith to appropriately review and consider any late certification on the part of the Developer, but the City shall not be obligated to make any certification to the County for the available Tax Increments or make any corresponding payment of the Economic Development Grant to the Developer if, in the reasonable judgment of the City, it is not able to give appropriate consideration (which may include, but not be limited to, specific discussion before the City Council at a regular meeting with respect thereto) to the Developer's certification due to its late filing. In the event Developer fails to timely file an annual statement, proof or certificate due to an Unavoidable Delay and, as a result, an Economic Development Grant cannot be made, Developer may give written notice to the City and, if the City finds that Developer's failure is due to an Unavoidable Delay, the missed Economic Development Grant shall be made in the year succeeding the last scheduled Economic Development Grant under Section 8.1, subject to Developer's filing under Section 6.7 and all other provisions of this Article VIII with respect to such grant, it being the intention of the parties to allow twenty (20) annual Economic Development Grants if Developer is in compliance with this Agreement. (d) The total aggregate amount of all Economic Development Grants that may be paid to the Developer under this Agreement shall be equal to the lesser of: (a) 50% of the Tax Increments collected with respect to the assessments imposed on the Development Property as of January 1 after the date of first certification of debt and on January 1 of each of the following nineteen (19) years; (b) the actual cost of the Minimum Improvements for which bills and proof of payment have been submitted to the City as of the date of any payment, but constructed by the Developer; or c) Thirteen Million, Seven Hundred Thousand Dollars ($13,700,000). It is understood and agreed by the parties hereto that no Economic Development -18- Grant will be paid to the Developer unless and until Developer provides to the City bona fide copies of receipts, invoices and any other proof of payment or expense for each amount for which Developer seeks reimbursement as defined in Exhibit "B" of this Agreement. Economic Development Grants shall, at all times, be subject to suspension and termination, in accordance with the terms of this Article VIII and Article X. Thereafter, the taxes levied on the Development Property shall be divided and applied in accordance with the Urban Renewal Act and the Ordinance. The parties recognize that the total aggregate amount set forth above is a maximum amount 'only and that the actual amount of each Economic Development Grant will be determined after the Minimum Improvements are completed and valuations of the Development Property with the improvements thereon, have been determined by the City Assessor. (e) In the event that any certificate filed by the Developer under Section 6.7 or other information available to the City discloses the existence or prior occurrence of an Event of Default that was not cured or cannot reasonably be cured under the provisions of Article X (or an event that, with the passage of time or giving of notice, or both, would become an Event of Default that cannot reasonably be cured under the provisions of Article X), the City shall have no obligation thereafter to make any further payments to the Developer in respect of the Economic Development Grants and may proceed to take one or more of the actions described in Article X hereof. Section 8.2. Source of Grant Funds Limited. (a) The Economic Development Grants shall be payable from and secured solely and only by amounts deposited and held in the Moss Green Development Corporation-Moss Green TIF Account NO.1 of the City. The City hereby covenants and agrees to maintain the Ordinance in force during the term hereof and, subject to Developer compliance and annual appropriation by the City Council, to apply the incremental taxes collected in respect of the Development Property and allocated to the Moss Green Development Corporation- Moss Green TIF Account NO.1 to pay the Economic Development Grants, as and to the extent set forth in Section 8.1 hereof. The Economic Development Grants shall not be payable in any manner by other tax increment revenues or by general taxation or from any other City funds. -19- (b) Notwithstanding the provisions of Section 8.1 hereof, the City shall have no obligation to make an Economic Development Grant to the Developer if at any time during the term hereof the City fails to appropriate funds into the Moss Green Development Corporation- Moss Green TIF Account No.1, or receives an opinion from its legal counselor a controlling decision of an Iowa court having jurisdiction over the subject matter hereof to the effect that the use of Tax Increments resulting from the Development Property to fund an Economic Development Grant to the Developer, as contemplated under said Section 8.1, is not authorized or otherwise an appropriate project activity permitted to be undertaken by the City under the Urban Renewal Act or other applicable provisions of the Code, as then constituted. The right of non-appropriation reserved to the City in this Section is intended by the parties, and shall be construed at all times, so as to ensure that the City's obligation to make future Economic Development Grants shall not constitute a legal indebtedness of the City within the meaning of any applicable constitutional or statutory debt limitation prior to the adoption of a budget which appropriates funds for the payment of that installment or amount. In the event that any of the provisions of this Agreement are determined by a court of competent jurisdiction to create, or result in the creation of, such a legal indebtedness of the City, the enforcement of the said provision shall be suspended, and the Agreement shall at all times be construed and applied in such a manner as will preserve the foregoing intent of the parties, and no event of default by the City shall be deemed to have occurred as a result thereof. If any provision of this Agreement or the application thereof to any circumstance is so suspended, the suspension shall not affect other provisions of this Agreement which can be given effect without the suspended provision. To this end the provisions of this Agreement are severable. (c) The City makes no representation with respect to the amounts that may finally be paid to the Developer as the Economic Development Grants, and under no circumstances shall the City, its agents, governing body members, attorneys, employers, successors or assigns, in any manner be liable to the Developer so long as the City timely applies the Tax Increments actually collected and held in the Moss Green Development Corporation-Moss Green TIF Account No. 1...(regardless of the amounts thereof) to the payment of the -20- Economic Development Grants to the Developer, as and to the extent described in this Article. Section 8.3. Use of Other Tax Increments. Subject to this Article VIII, the City shall be free to use any and all Tax Increments collected in respect of increases in valuation on the Development Property or any other properties within the Urban Renewal Area, or any available Tax Increments resulting from the suspension or termination of the Economic Development Grants under Section 8.1 hereof, for any purpose for which the Tax Increments may lawfully be used pursuant to the provisions of the Urban Renewal Act, and the City shall have no obligations to the Developer with respect to the use thereof. ARTICLE IX. INDEMNIFICATION Section 9.1. Release and Indemnification Covenants. (a) The Developer releases the City and the governing body members, officers, agents, attorneys, servants and employees thereof (hereinafter, for purposes of this Article IX, the "Indemnified Parties") from, covenants and agrees that the Indemnified Parties shall not be liable for, and agrees to indemnify, defend and hold harmless the Indemnified Parties against, any claim, demand, lawsuit, loss or damage to any person in connection with the Minimum Improvements, the Development Property or this Agreement. (b) Except for any willful misrepresentation or any willful or wanton misconduct or any unlawful act of the indemnified parties, the Developer agrees to protect and defend the indemnified parties, now or forever, and further agrees to hold the indemnified parties harmless, from any claim, demand, suit, action or other proceedings whatsoever by any person or entity whatsoever arising or purportedly arising from (i) any violation of any agreement or condition of this Agreement (except with respect to any suit, action, demand or other proceeding brought by the Developer against the City to enforce his rights under this Agreement), (ii) the acquisition and condition of the Development Property and the construction, installation, ownership, and administration of the Minimum Improvements or (iii) any hazardous substance or environmental contamination located in or on the Development Property relating to conditions caused by Developer after the effective date of this Agreement. -21- (c) The indemnified parties shall not be liable for any damage or injury to the persons or property of the Developer or its officers, agents, servants or employees or any other person who may be on or about the Minimum Improvements due to any act of negligence of any person, other than any act of negligence on the part of any such indemnified party or its officers, agents, servants or employees. (d) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, attorney, servant or employee of the City in the individual capacity thereof. (e) The provisions of this Article IX shall survive the termination of this Agreement. ARTICLE X. DEFAULT AND REMEDIES Section 10.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement, anyone or more of the following events: (a) Failure by the Developer to cause the construction of the Minimum Improvements to be commenced and completed within ten (10) years of the execution of this agreement and pursuant to the terms, conditions and limitations of this Agreement; (b) Transfer of any interest (either directly or indirectly) in this Agreement or the Development Property and minimum improvements in violation of the provisions of Article VII of this Agreement; (c) Failure by the Developer to substantially observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement; (d) If the holder of any Mortgage on the Development Property owned by Developer, or any improvements thereon, or any portion thereof, commences foreclosure proceedings as a result of any default by Developer under the applicable Mortgage documents; (e) If the Developer shall: -22- (A) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act of 1978, as amended, or under any similar federal or State law; or (B) make an assignment for the benefit of its creditors; or (C) admit in writing its inability to pay its debts generally as they become due; or (D) be adjudicated as bankrupt or insolvent; or if a petition or answer proposing the adjudication of the Developer as a bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or State law shall be filed in any court and such petition or answer shall not be discharged or denied within ninety (90) days after the filing thereof; or a receiver, trustee or liquidator of the Developer or the Development Property or part thereof, shall be appointed in any proceedings brought against the Developer, and shall not be discharged within ninety (90) days after such appointment, or if the Developer shall consent to or acquiesce in such appointment; (f) If any representation or warranty made by the Developer in this Agreement, or made by the Developer in any written statement or certificate furnished by the Developer pursuant to this Agreement which shall be proven to have been incorrect, incomplete or misleading and such misstatement was known by Developer at the time it was made, in any material respect on or as of the date of the issuance or making thereof. Section 10.2. Remedies on Default. Whenever any Event of Default referred to in Section 10.1 of this Agreement occurs and is continuing, the City as specified below, may take anyone or more, or a combination, of the following actions after (except in the case of an Event of Default under subsection (d) or (e) of said Section 10.1, in which case action may be taken immediately) the giving of thirty (30) days' written notice by the City to the Developer and the holder of the First Mortgage (but only to the extent the City has been informed in writing of the existence of a First Mortgage and been provided with the address of the holder thereof) of the Event of Default, but only if the Event of Default has not been -23- cured within said thirty (30) days and the Developer does not provide assurances reasonably satisfactory to the City that the Event of Default will be cured as soon as reasonably possible: (a) The City may suspend its performance under this Agreement until it receives assurances from the Developer, deemed adequate by the City, that the Developer will cure its default and continue its performance under this Agreement; (b) The City may terminate this Agreement; (c) The City may withhold a Certificate of Completion; (d) The City may take any action, including legal, equitable or administrative action, which may appear necessary or desirable to recover damages or to enforce performance and observance of any obligation, agreement, or covenant of the Developer, as the case may be, under this Agreement; or (e) The City shall be entitled to recover from the Developer, and the Developer shall re-pay to the City, as amount equal to all Economic Development Grants previously made to the Developer under Article VIII hereof, and the City may take any action, including any legal action it deems necessary, to recover such amount from the Developer. Section 10.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each and every remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 10.4. No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by any other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. -24- Section 10.5. Aoreement to Pay Attorneys' Fees and Expenses. Whenever any Event of Default occurs and either party shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement herein contained, the party in default agrees that it shall, on demand therefor, pay to the other party the reasonable fees of such attorneys and such other expenses as may be reasonably and appropriately incurred by them in connection therewith. ARTICLE XI. OPTION TO TERMINATE AGREEMENT Section 11.1. Developer's Option to Terminate. This Agreement may be terminated by the Developer if (i) the Developer is in compliance with all material terms of this Agreement and no Event of Default has occurred which has not been cured in accordance with the provisions of Section 10.2 hereof; and (ii) the City fails to appropriate under Section 8.2(b) hereof, or fails to comply with any material term of this Agreement, and, after written notice by the Developer of such failure, the City has failed to cure within ninety (90) days of receipt of such notice, or, if such action cannot reasonably be cured by the City within ninety (90) days of receipt of such notice, the City has not provided assurances reasonably satisfactory to the Developer that such action will be cured as soon as reasonably possible. Section 11.2. City's Option to Terminate. This Agreement may be terminated by the City if (i) the City is in compliance with all material terms of this Agreement and no Event of Default has occurred which has not been cured in accordance with the provisions of Section 10.2 hereof (with the exception of nonappropriation under Section 8.2(b )); and (ii) the Developer fails to complete all of the Minimum Improvements outlined in Exhibit "8" within ten (10) years of the execution of this agreement, or fails to comply with any material term of this Agreement, and, after written notice by the City of such failure, the Developer has failed to cure within ninety (90) days of receipt of such notice, or, if such action cannot reasonably be cured by the Developer within ninety (90) days of receipt of such notice, the Developer has not provided assurances reasonably satisfactory to the City that such action will be cured as soon as reasonably possible. Section 11.3. Effect of Termination. If this Agreement is terminated pursuant to this Article XI, this Agreement shall be from such date forward null and void and of no further effect; provided, however, that the City's rights to indemnification under Article IX hereof shall in all events survive and provided further that the termination of this Agreement shall not affect the rights of any party to institute any action, claim or demand for damages suffered as a result of -25- breach or default of the terms of this Agreement by another party, or to recover amounts which had accrued and become due and payable as of the date of such termination. In any such action, the prevailing party shall be entitled to recover its reasonable attorneys fees and related expenses incurred in connection therewith (but only, in the case of the City to the extent permitted by applicable law). Upon termination of this Agreement pursuant to this Article XI, the Developer shall be free to proceed with the construction and administration of the Minimum Improvements at its own expense and without regard to the provisions of this Agreement. ARTICLE XII. MISCELLANEOUS Section 12.1. Conflict of Interest. The Developer represents and warrants that, to its best knowledge and belief after due inquiry, no officer, agent, attorney or employee of the City, or its designees or agents, nor any consultant or member of the governing body of the City, and no other public official of the City who exercises or has exercised any functions or responsibilities with respect to the Project during his or her tenure, or who is in a position to participate in a decision- making process or gain insider information with regard to the Project, has had or shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work or services to be performed in connection with the Project, or in any activity, or benefit therefrom, which is part of the Project at any time during or after such person's tenure. Section 12.2. Notices and Demands. A notice, demand or other communication under this Agreement by any party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and (a) In the case of the Developer, is addressed or delivered personally to the Developer at 3354 Kenruth Circle NE, Iowa City, Iowa 52240 with a copy to Developer's attorney addressed to Mark C. Danielson, Leff Law Firm, L.L.P., 222 South Linn Street, Iowa City, Iowa 52240. (b) In the case of the City, is addressed to or delivered personally to the City at the City Hall, 410 E. Washington Street, Iowa City, Iowa 52240, Attn: City Clerk, with a copy to the City Attorney at the same address; or to such other designated individual or officer or to such other address as any party shall have furnished to the other in writing in accordance herewith. -26- Section 12.3. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 12.4. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 12.5. Governino Law. This Agreement shall be governed and construed in accordance with the laws of the State of Iowa. Section 12.6. Memorandum of Aoreement. The parties agree to execute and record a Memorandum of Agreement for Private Development, in substantially the form attached as Exhibit 8, to serve as notice to the public of the existence and provisions of this Agreement, and the rights and interests held by the City by virtue hereof. The Developer shall pay all costs of recording. Section 12.7. Entire Aoreement. This Agreement and the exhibits hereto reflect the entire agreement between the parties regarding the subject matter hereof, and supersedes and replaces all prior agreements, negotiations or discussions, whether oral or written. This Agreement may not be amended except by a subsequent writing signed by all parties hereto. Section 12.8. Successors and Assions. This Agreement is intended to and shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. Section 12.9. Termination Date. Unless terminated earlier, this Agreement shall terminate and be of no further force or effect on and after December 31, 2034. [Remainder of this page intentionally left blank. Signature pages to follow.] -27- IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf by its Mayor of the City and its seal to be hereunto duly affixed and attested by the Clerk, and the Developer has caused this Agreement to be duly executed in its name and behalf by its President, all on or as of the day first above written. (SEAL) CITY OF IOWA CITY, IOWA By: Matthew J. Hayek, Mayor ATTEST: By: Marian K. Karr, City Clerk MOSS GREEN DEVELOPMENT CORPORATION By: Stephen Moss, President ATTEST: By: Title: -28- STATE OF IOWA ) ) COUNTY OF JOHNSON) On this day of , 2010, before me a Notary Public in and for said State, personally appeared Matthew J. Hayek and Marian K. Karr to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Iowa City, Iowa, a municipal corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said City, and that said instrument was signed and sealed on behalf of said City by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said City by it voluntarily executed. Notary Public in and for the State of Iowa STATE OF IOWA ) ) COUNTY OF JOHNSON) On this day of , 2010, before me the undersigned, a Notary Public in and for said State, personally appeared Stephen Moss and to me personally known, who being duly sworn, did say that they are the President and respectively of Moss Green Development Corporation and that said instrument was signed on behalf of said corporation; and that the said President and , as such officers acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by them voluntarily executed. Notary Public in and for the State of Iowa -29- EXHIBIT A DEVELOPMENT PROPERTY The Development Property is described as consisting of all that certain parcel or parcels of land located in the City of Iowa City, County of Johnson, State of Iowa, more particularly described as follows: MOSS-GREEN URBAN VILLAGE A part of the subdivision of the Northeast One-Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, as recorded in Plat Book 1 at Page 11 in the Records of the Johnson County Recorder, Johnson County, Iowa, more particularly described as follows: Lots Four (4), Five (5) and Ten (10) and the South nine (9) acres of Lot Six (6), and the South 12-1/2 acres of Lot Eight (8), all of the subdivision of Northeast Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, containing 60.67 acres, more or less; and All of the Northeast Quarter of the Southeast Quarter, a part of the Southeast Quarter of the Southeast Quarter lying North of the Interstate 80 Right-of-Way line and the East 63.75 acres of the West Half of the Southeast Quarter lying North of the Interstate 80 Right-of-Way line, all of said Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, being more particularly described as follows: BEGINNING at the East Quarter Corner of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa; THENCE South 00046'46" East, a distance of 1,980.54 feet to the North Right-of- Way line of Interstate 80; THENCE South 82024'15" West, along the North Right-of-Way line of Interstate 80, a distance of 646.23 feet; THENCE continuing west along the North. Right-of-Way line of Interstate 80, North 88011'05" West, a distance of 1,731.77 feet; THENCE North 00054'55" West, a distance of 2,023.65 feet to the North line of the Southeast Quarter of said Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa; THENCE South 89041 '57" East, along said North line of the Southeast Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, a distance of 2,376.88 feet to the POINT OF BEGINNING, containing 111.22 acres, more or less; and HILLS BANK & TRUST and NEAL N. LLEWELLYN: The Southwest Quarter of the of the Northwest Quarter of Section 36, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa A-I and that portion of The Southeast Quarter of the of the Northwest Quarter of Section 36, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa lying West of Iowa Highway 1 (North Dodge Street) containing 71.35 acres, more or less. A - 2 EXHIBIT B MINIMUM IMPROVEMENTS Minimum Improvements shall consist of the installation of streets, street lighting, sanitary sewers, storm sewers, sanitary sewer trunk line extension, sanitary sewer lift station, force main extension, water main extension, waterlines, sidewalks, extension of Oakdale Boulevard and Moss Place together with other related site improvements, public utilities, public utility extensions and the lands thereunder, as well as all design, engineering, inspection, construction supervision, legal and financing costs, within the Development Property directly related to the Minimum Improvements which are outlined and depicted on the Moss Green Urban Village Master Plan, approved Sensitive Areas Development Plan, approved Overlay Planned Development, the approved Preliminary Plat and as described in the Construction Plans to be submitted and approved by the City under Article III, all of which are incorporated by reference herein. The Developer shall submit copies of actual receipts, invoices and any other proof of payment or expense for which it seeks reimbursement for the Minimum Improvements as required by Section 8.1 (d). It is anticipated that actual construction costs of the Minimum Improvements will be: MOSS GREEN URBAN VILLAGE Oakdale Boulevard Item Amount Unit Unit Cost Total $ $ Paving 35640 S.Y. 60.00 2,138,400 $ $ Trail 6072 S.Y. 25.00 151,800 $ $ Sidewalk 3036 S.Y. 20.00 60,720 $ $ Water Main 5400 L.F. 25.00 135,000 $ $ Water Main Encasement 675 L.F. 75.00 50,625 $ $ Bridges 39550 S.F. 70.00 2,768,500 $ $ Road Fill/Pond Excavation 270,000 C.Y. 4.00 1,080,000 $ $ Storm Water Chambers 300 E.A. 530.00 159,000 $ $ 15" Storm Sewer 5900 L.F. 30.00 177,000 $ $ Storm Sewer Intake 20 EA. 2,500.00 50,000 $ $ Street Lighting 1 L.S. 300,000.00 300,000 A - 3 $ Un forsee nil ncede n to Is 10% $ 7,071,045 707,105 $ 7,778,150 Moss Place $ $ Paving with Trails, Porous Pavement, Parking 24000 S.Y. 60.00 1,440,000 $ $ Water Main 5200 L.F. 25.00 130,000 $ $ Water Main Encasement 225 L.F. 75.00 16,875 $ $ Bridge 9000 S.F. 70.00 630,000 $ $ Road Fill/Pond Excavation 30,000 C.Y. 2.50 75,000 $ $ Storm Water Chambers 660 E.A. 530.00 349,800 $ $ 15" Storm Sewer 4800 L.F. 30.00 144,000 $ $ Storm Sewer Intake 34 EA. 2,500.00 85,000 $ $ Street Lighting 1 L.S. 200,000.00 200,000 $ Un forsee nil ncede n to Is 10% $ 3,070,675 307,068 $ 3,377,743 Sanitary Sewer New System $ $ 24" San. Sewer 6300 L.F. 360.00 2,268,000 $ $ 6" Force Main 6300 L.F. 18.00 113,400 $ $ 8" San. Sewer 4238 L.F. 26.00 110,188 $ $ Lift station 180 TDH @ 200 gpm 1 L.S. 300,000.00 300,000 $ Unforsee nil ncede n to Is 10% $ 2,791,588 279,159 $ 3,070,747 Fees $ Engineering, Legal, Accounting and others 906,000 $ Interest on Construction Loan(assumed 8 year return) 2,100,000 $ TOTAL PROJECT ESTIMATE 13,632,639 A-4 Prepared By: Return To: EXHIBIT C CERTIFICATE OF COMPLETION WHEREAS, the City of Iowa City, Iowa (the "City") and Moss Green Development Corporation, having an office for the transaction of business at 3354 Kenruth Circle NE, Iowa City, Iowa 52240 (the "Developer"), did on or about the day of , 2010, make, execute and deliver, each to the other, an Agreement for Private Redevelopment (the "Agreement"), wherein and whereby the Developer agreed, in accordance with the terms of the Agreement, to develop and maintain certain real property located within the City and as more particularly described as follows: MOSS-GREEN URBAN VILLAGE A part of the subdivision of the Northeast One-Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, as recorded in Plat Book 1 at Page 11 in the Records of the Johnson County Recorder, Johnson County, Iowa, more particularly described as follows: Lots Four (4), Five (5) and Ten (10) and the South nine (9) acres of Lot Six (6), and the South 12-1/2 acres of Lot Eight (8), all of the subdivision of Northeast Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, containing 60.67 acres, more or less; and All of the Northeast Quarter of the Southeast Quarter, a part of the Southeast Quarter of the Southeast Quarter lying North of the Interstate 80 Right-of-Way line and the East 63.75 acres of the West Half of the Southeast Quarter lying North of the Interstate 80 Right-of-Way line, all of said Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, being more particularly described as follows: BEGINNING at the East Quarter Corner of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa; THENCE South 00046'46" East, a distance of 1,980.54 feet to the North Right-of- Way line of Interstate 80; THENCE South 82024'15" West, along the North Right-of-Way line of Interstate 80, a distance of 646.23 feet; THENCE continuing west along the North Right-of-Way line of Interstate 80, C - 1 North 88011'05" West, a distance of 1,731.77 feet; THENCE North 00054'55" West, a distance of 2,023.65 feet to the North line of the Southeast Quarter of said Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa; THENCE South 89041 '57" East, along said North line of the Southeast Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, a distance of 2,376.88 feet to the POINT OF BEGINNING, containing 111.22 acres, more or less; and HILLS BANK & TRUST and NEAL N. LLEWELLYN: The Southwest Quarter of the of the Northwest Quarter of Section 36, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa and that portion of The Southeast Quarter of the of the Northwest Quarter of Section 36, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa lying West of Iowa Highway 1 (North Dodge Street) containing 71.35 acres, more or less. WHEREAS, the Agreement incorporated and contained certain covenants and restrictions with respect to the development of the Development Property, and obligated the Developer to construct certain Minimum Improvements (as defined therein) in accordance with the Agreement; and WHEREAS, the Developer has to the present date performed said covenants and conditions insofar as they relate to the construction of said Minimum Improvements in a manner deemed by the City to be in conformance with the approved building plans to permit the execution and recording of this certification. NOW, THEREFORE, pursuant to Section 3.4 of the Agreement, this is to certify that all covenants and conditions of the Agreement with respect to the obligations of the Developer, and its successors and assigns, to construct the Minimum Improvements on the Development Property have been completed and performed by the Developer and are hereby released absolutely and forever terminated insofar as they apply to the land described herein. The County Recorder of Johnson County is hereby authorized to accept for recording and to record the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions of said Agreement 'with respect to the construction of the Minimum Improvements on the Development Property. C-2 All other provisions of the Agreement shall otherwise remain in full force and effect until termination as provided therein. (SEAL) CITY OF IOWA CITY, IOWA By: Matthew J. Hayek, Mayor ATTEST: By: Marian K. Karr, City Clerk STATE OF IOWA ) ) SS COUNTY OF JOHNSON ) On this _day of , 2010, before me a Notary Public in and for said County, personally appeared Matthew Hayek and Marian Karr, to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Iowa City, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said Municipal Corporation, and that said instrument was signed and sealed on behalf of said Municipal Corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. Notary Public in and for Johnson County, Iowa C - 3 EXHIBIT D MEMORANDUM OF AGREEMENT FOR PRIVATE DEVELOPMENT WHEREAS, City of Iowa City, Iowa, (the "City" ) and Moss Green Development Corporation (the "Developer") did on or about the day of June 2010, make, execute and deliver an Agreement for Private Development (the Agreement) wherein and whereby the Developer agreed, in accordance with the terms of the Agreement, to develop and maintain certain real property located within the City and more particularly described as follows: MOSS-GREEN URBAN VILLAGE A part of the subdivision of the Northeast One-Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, as recorded in Plat Book 1 at Page 11 in the Records of the Johnson County Recorder, Johnson County, Iowa, more particularly described as follows: Lots Four (4), Five (5) and Ten (10) and the South nine (9) acres of Lot Six (6), and the South 12-1/2 acres of Lot Eight (8), all of the subdivision of Northeast Quarter of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, containing 60.67 acres, more or less; and All of the Northeast Quarter of the Southeast Quarter, a part of the Southeast Quarter of the Southeast Quarter lying North of the Interstate 80 Right-of-Way line and the East 63.75 acres of the West Half of the Southeast Quarter lying North of the Interstate 80 Right-of-Way line, all of said Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa, being more particularly described as follows: BEGINNING at the East Quarter Corner of Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa; THENCE South 00046'46" East, a distance of 1,980.54 feet to the North Right-of-Way line of Interstate 80; THENCE South 82024'15" West, along the North Right-of-Way line of Interstate 80, a distance of 646.23 feet; THENCE continuing west along the North Right-of-Way line of Interstate 80, North 88011'05" West, a distance of 1,731.77 feet; THENCE North 00054'55" West, a distance of 2,023.65 feet to the North line of the Southeast Quarter of said Section 35, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa; THENCE South 89041 '57" East, along said North line of the Southeast Quarter of Section 35, Township 80 North, Range 6 West of the Fifth C-4 Principal Meridian, Johnson County, Iowa, a distance of 2,376.88 feet to the POINT OF BEGINNING, containing 111.22 acres, more or less; and HillS BANK & TRUST and NEAL N. llEWEll YN: The Southwest Quarter of the of the Northwest Quarter of Section 36, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa and that portion of The Southeast Quarter of the of the Northwest Quarter of Section 36, Township 80 North, Range 6 West of the Fifth Principal Meridian, Johnson County, Iowa lying West of Iowa Highway 1 (North Dodge Street) containing 71.35 acres, more or less. WHEREAS, the terms of this Agreement shall commence on the day of June, 2010, and terminate on or about the 31st day of December, 2032, as set forth in the Agreement; and WHEREAS, the City and the Developer desire to record a Memorandum of the Agreement referring to the Development Property and their respective interests therein. NOW, THEREFORE, IT IS AGREED AS FOllOWS: 1 . That the recording of this Memorandum of Agreement for Private Development shall serve as notice to the public that the Agreement contains provisions restricting development and use of the Development Property and the improvements located and operated on such Development Property. 2. That all of the provisions of the Agreement and any subsequent amendments thereto, if any, even though not set forth herein, are by the filing of this Memorandum of Agreement for Private Development made a part hereof by reference, and that anyone making any claim against any of said Development Property in any manner whatsoever shall be fully advised as to all of the terms and conditions of the Agreement, and any amendments thereto, as if the same were fully set forth herein. 3. That a copy of the Agreement and any subsequent amendments thereto, if any, shall be maintained on file for public inspection during ordinary business hours in the Office of the City Clerk, City Hall, Iowa City, Iowa. C - 5 IN WITNESS WHEREOF, the City and the Developer has executed this Memorandum of Agreement for Private Development as of the day of June, 2010. (SEAL) CITY OF IOWA CITY, IOWA By: Matthew J. Hayek, Mayor ATTEST: By: Marian K. Karr, City Clerk MOSS GREEN DEVELOPMENT CORPORATION By: Stephen Moss, President ATTEST: By: Title: C-6 STATE OF IOWA ) ) COUNTY OF JOHNSON) On this day of , 2010, before me a Notary Public in and for said State, personally appeared Matthew J. Hayek and Marian K. Karr to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Iowa City, Iowa, a municipal corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing instrument is the seal of said City, and that said instrument was signed and sealed on behalf of said City by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said City by it voluntarily executed. Notary Public in and for the State of Iowa STATE OF IOWA ) ) COUNTY OF JOHNSON) On this day of I 2010, before me the undersigned, a Notary Public in and for said State, personally appeared Stephen Moss and to me personally known, who being duly sworn, did say that they are the President and respectively of Moss Green Development Corporation and that said instrument was signed on behalf of said corporation; and that the said President and , as such officers acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by them voluntarily executed. Notary Public in and for the State of Iowa C -7 EXHIBIT E PUBLIC, EMERGENCY AND SERVICE VEHICLE ACCESS EASEMENT AGREEMENT C - 8 EXHIBIT F FORM OF LEGAL OPINION City of Iowa City 410 E. Washington Street Iowa City, Iowa 52240 RE: Agreement for Private Development by and between the City of Iowa City, Iowa and Moss Green Development Corporation Gentlemen: As counsel for Moss Green Development Corporation (the "Developer"), and in connection with the execution and delivery of a certain Development Agreement (the "Development Agreement") between the Developer and the City of Iowa City, Iowa (the "City") dated as of ,2010, we hereby render the following opinion: We have examined the original, certified copy, or copies otherwise identified to our satisfaction as being true copies of such documents and records as we have deemed relevant and necessary as a basis for the opinion set forth herein. Based on the pertinent law, the foregoing examination and such other inquiries as we have deemed appropriate, we are of the opinion that: The Development Agreement has been duly and validly authorized, executed and delivered by Moss Green Development Corporation, and, assuming due authorization, execution and delivery by the other parties thereto, is in full force and effect and is valid and legally binding instrument of the Developer enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights generally. Very truly yours, C-9