|
||||
|
Date
|
January 28, 2008
|
||
|
Agenda
Item No. 59 Roll
Call No. 08- Communication No. 08-027 Submitted by: Richard A. Clark, City Manager |
||||
AGENDA HEADING:
Receive and File an extension request as presented in the accompanying communication from Vision Fuels Des Moines, LLC and direct the City Manager to negotiate the appropriate Urban Renewal Agreement amendment.
SYNOPSIS:
Pursuant
to the terms of the October 22, 2007 Amended and Restated Urban Renewal
Agreement for Sale of Land for Private Development, Vision Fuels Des Moines,
LLC (David W. Walters, Chairman, 2641 86th Street, Urbandale,
IA 50322) is to close on 164 acres of
City-owned land on February 1, 2008 for construction of a 110 million gallon
ethanol plant. Vision Fuels has not
secured the necessary financing and will not be able to close on the land on
February 1, 2008.
Vision
Fuels has requested a deadline extension as outlined in the attached
letter. The key points of the extension
are as follows:
- Vision
Fuels shall have until June 1, 2008 to provide the City Manager written proof
of a commitment for the infusion of equity in an amount not less than
$30,000,000. This commitment shall
be from a reputable source with the financial ability to perform by
delivering the committed equity at financial close.
- Vision
Fuels shall have until June 1, 2008 to provide to the City Manager written
proof of a commitment for the provision of $120,000,000 or more of debt
financing, or sufficient debt financing that no further equity is required
by Vision Fuels as otherwise required in paragraph 1. This commitment for debt financing shall
be from a reputable source with the financial ability to perform by
delivering the funds for debt financing at financial close.
- Vision
Fuels has previously delivered to the City a non-refundable good faith
deposit of $848,000. Vision Fuels
will tender an additional good faith deposit of $100,000 upon the City
Council’s approval of this proposed extension.
- Vision
Fuels agrees that June 1, 2008 is a final “drop dead date” and that if the
conditions set forth in paragraphs 1 through 3 are not met that no further
extensions will be requested.
- In the
event that Vision Fuels successfully meets each condition set forth in
paragraphs 1 through 3 above prior to June 1, 2008, then the City of Des
Moines agrees, without the need for further action, to allow Vision Fuels
until November 1, 2008 to complete due diligence required by its equity
and debt sources necessary to reach final close and to close on the sale
of the land from the City of Des Moines to Vision Fuels.
The
City Manager recommends the City Council authorize the deadline extensions
outlined above and direct the City Manager to negotiate the appropriate changes
to the Amended and Restated Urban Renewal Agreement for Sale of Land for
Private Development. This amendment will
be presented for City Council approval on February 11, 2008. Both the City Manager’s Office and Vision
Fuels agree that no further extensions shall be requested if these revised
dates cannot be reached.
FISCAL IMPACT:
Amount:
$0 provided Vision Fuels meets the newly
established deadlines. Should Vision
Fuels not meet the deadlines they would forfeit $848,000 currently on deposit,
plus the additional $100,000 required by this extension.
Funding
Source: Vision Fuels
ADDITIONAL INFORMATION:
Vision Fuels’
preliminary financing commitment was unsuccessful in 2007. They have since initiated discussions with
other financing sources and feel improved market conditions will increase the
likelihood they will successfully raise the equity and debt required for the project. The Federal government approved a new energy
bill in December 2007. The new bill
stipulates annual biofuels consumption of 36 billion gallons by 2022. This new goal represents an approximate
fivefold increase over current
The City has received no additional interest from developers wishing to pursue the City-owned land.
Performance Benchmarks
Below are the scheduled benchmarks as contained in the October 22, 2007 Amended and Restated Urban Renewal Agreement.
|
Date |
Action |
|
completed |
Have requested a Pre-Application Conference
pursuant to Section 501. |
|
completed |
Have provided the report regarding the use of
innovative technologies required by Section 403. |
|
completed |
Provide preliminary evidence of financing as
required by Section 205(A). |
|
completed |
·
Have submitted a Conceptual Development Plan
pursuant to Article 5 of this Agreement. ·
Have submitted a "PUD" Conceptual
Plan for the Improvements. ·
Have submitted an application to rezone the
Property to the "PUD" Planned Unit Development District
classification, and for approval of the "PUD" Conceptual Plan. ·
Have submitted a Preliminary Subdivision Plat
for the Property |
|
completed |
Have obtained approval of a Preliminary
Subdivision Plat by the Plan and Zoning Commission |
|
completed, pending final review of the office building design |
§
Have obtained approval of the Conceptual
Development Plan. §
Have obtained approval of the "PUD"
Conceptual Plan. (Enactment of the
Rezoning Ordinance may be delayed by the requirement for 3 separate
readings.) |
|
completed |
Have filed a combined “PUD” Development Plan and
Site Plan for the Property and Improvements. |
|
completed |
Have obtained approval of a "PUD"
Development Plan and Site Plan for the Property and Improvements. |
|
Feb 01, 2008 |
·
Closing - Have satisfied the conditions precedent to Closing under Section
205(B) of this Agreement and have tendered Closing. ·
Have provided to
City a copy of the Air Quality Permit pursuant to Section 401(3) or evidence
that Developer has filed the appropriate documentation and is diligently
pursuing such a “minor source” permit. |
|
Mar 01, 2008 |
Have obtained
approval of and recorded a subdivision plat for the Property. |
|
Apr 15, 2008 |
Have obtained
footing and foundation permits and have commenced construction of the
footings and foundations for a substantial portion of the Improvements. |
|
Nov 01, 2009 |
Have
substantially completed the Improvements and qualified for the issuance of
the Certificate of Completion |
|
Dec 31, 2009 |
Startup Date |
PREVIOUS COUNCIL ACTION(S):
Date: November 19, 2007
Roll Call Number: 07-2254
Action: Regarding request from Vision Fuels Des
Moines, LLC to rezone property located in the 3801 block of Vandalia Road from
“M-1” (Light Industrial) to “PUD” (Planned Unit Development) and approve
revised “Vision Fuels” PUD Conceptual Plan for 165 acres of land to be
developed with light industrial and limited heavy industrial uses including
development and production of renewable fuels such as dry mill Ethanol. Moved by Meyer to adopt and approve the
rezoning and Conceptual Plan, subject to final passage of the rezoning
ordinance. Motion Carried 6-1. Nays: Cownie.
Date: October 22, 2007
Roll Call Number: 07-2050
Action: On proposed Amended and Restated Urban
Renewal Agreement for Sale of Land for Private Redevelopment to Vision Fuels
Des Moines, L.L.C. (SE Agribusiness Park-Disposition Parcel No. 1). (Council Communication No. 07-643)
Moved by Meyer to adopt. Motion
Carried 6-1. Nays: Cownie.
Date: October 8, 2007
Roll Call Number: 07-1945
Action:
On proposed Amended and Restated Urban Renewal Agreement for Sale of Land for
Private Redevelopment, to Vision Fuels Des Moines, L.L.C., (10-22-07). Moved by
Hensley to adopt. Motion Carried 6-1.
Nays: Cownie.
Date: September 24, 2007
Roll Call Number: 07-1871
Action: From Vision Fuels Des Moines, L.L.C.,
regarding its progress towards financing and construction of an Ethanol
Production Facility in the SE Agribusiness Park, and requesting amendment to
the Agreement for sale of real estate.
Moved by Meyer to receive and file, and to authorize and direct the City
Manager to negotiate with Vision Fuels on the sale of the additional 36 acres
and other appropriate amendments to the Agreement, for consideration by the
City Council after notice and public hearing at a later date. Motion Carried 6-1. Pass:
Cownie.
Date: January 22, 2007
Roll Call Number: 07-145
Action: On Urban Renewal Agreement for sale of land
for private redevelopment with Vision Fuels Des Moines, L.L.C. (Council Communication No. 07-044)
Moved by Meyer to adopt. Motion
Carried 7-0.
Date: December 18, 2006
Roll Call Number: 06-2499
Action: On
proposed sale of land in the SE Agribusiness Park – Disposition Parcel No. 1,
to Vision Fuels Des Moines, LLC. Moved by Kiernan to
continue the public hearing on the proposed sale of land to Vision Fuels until
January 22, 2007 at 5:00 P.M. Motion Carried 6-0.
Date: December 4, 2006
Roll Call Number: 06-2401
Action:
To
receive supplement to the proposal from Vision Fuels for the purchase and
redevelopment of Disposition Parcel No. 1 in the
Date: December 4, 2006
Roll Call Number: 06-2402
Action: Selecting
Visions Fuels as the Preferred Redeveloper. Moved by Kiernan to
adopt, subject to the addition of the following points to be included in the
final development agreement with Vision Fuels: (i.) In order to ensure
the long-term economic viability of the project, Vision Fuels will be required
to explore, in cooperation with the Iowa Department of Natural Resources and
Iowa State University, the use of innovative technologies such as the use of
combined heat and power (CHP) and the various biofuels options, and to provide
a written report to the Council by April 1, 2007, as to the technical and
economic feasibility of using these technologies at the Agrimergent Technology
Park site. (ii.) Vision Fuels will be required to maximize the use
of LEED to enhance the environment and minimize the pollutants emanating from
its facility, as specified in its proposed boiler technology.
(iii.) Vision Fuels will be required to conform its site development to
the
Date: November 1, 2006
Roll Call Number: 06-2145
Action: Approving
selection of a Preferred Redeveloper and an Alternate Redeveloper of
Disposition Parcel No. 1 in the
Date: October 23, 2006
Roll Call Number: 06-2135
Action: Selection of
Lincolnway Energy, LLC as the Preferred Redeveloper and Vision Fuels Des
Moines, LLC as the Alternate Redeveloper of Disposition Parcel No. 1 in the Des
Moines Agrimergent Technology Park in the SE Agribusiness Urban Renewal
Area. (Council
Communication No. 06-663) Moved by Vlassis to set a
Special Council Meeting for Wednesday, November 1st at 6:00
PM. Each Redeveloper will make a presentation and Council will make a
selection at that meeting. Motion Carried 6-0.
Date: August 21, 2006
Roll Call Number: 06-1713
Action: Resolution
for Competitive Process and Minimum Development Requirements and Competitive
Criteria for the redevelopment of Disposition Parcel No. 1 in the Des Moines
Agrimergent Technology Park in the SE Agribusiness Urban Renewal Area. (Council
Communication No. 06-529) Moved by Kiernan to
approve. Motion Carried 5-1.
Date: July 10, 2006
Roll Call Number: 06-1368
Action: From
Vision Fuels, LLC regarding proposed ethanol facility in the
Date: April 24, 2006
Roll Call Number: 06-799
Action: From
Lincolnway Energy, LLC regarding a proposed ethanol facility in the
Date: December 3, 2001
Roll Call Number: 01-3577
Action: On proposed Des Moines Agrimergent Technology
Park Plan, generally between SE 30th and SE 43rd Streets in vicinity of
Date: December 6, 1999
Roll Call Number: 99-3720
Action: Approving Offer to Purchase approximately 166
acres owned by Archer Daniels Midland, (Council
Communication No. 99-512) Moved
by Brooks to adopt. Motion Carried 5-2. Absent: Daniels and McPherson.
BOARD/COMMISSION ACTION(S):
Date:
October 19, 2006
Roll Call Number: N/A
Action: Urban Design Review Board recommended
selection of Lincolnway Energy, LLC as the preferred redeveloper and Vision
Fuels Des Moines, LLC as the alternate redeveloper of Parcel No. 1 in the
Date: August 15, 2006
Roll Call Number: N/A
Action: Urban Design Review Board recommended
approval of the Minimum Development Requirements and Competitive Criteria for
Disposition Parcel No. 1 in the
ANTICIPATED ACTIONS AND FUTURE COMMITMENTS:
Approval of Urban Renewal Agreement
amendment on February 11, 2008.