Metx, LLC - Amendment to Development Agreement Copyrighted
October 21 , 2019
City of Dubuque Consent Items # 9.
ITEM TITLE: Mefic, LLCAmendmentto DevelopmentAgreement
SUMMARY: City Manager recommending approval of an Amendment to
DevelopmentAgreementwith Mefic, LLC that provides for
the purchase price due at closing will be paid from the TI F
funds received.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Amendmentto Mebc DevelopmentAgreement-MVM City Manager Memo
Memo
Staff Memo Staff Memo
Amendment Supporting Documentation
Dubuque
THE CITY OF �
uI�AaMca cih
DuB E � �
I � � I
Maste iece on the Mississi i Zoo�•zoiz•zois
YP pp zoi�*zoi9
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amendment to Development Agreement — Metx, LLC
DATE: October 15, 2019
City Attorney Crenna Brumwell recommends City Council approval of an Amendment to
Development Agreement with Metx, LLC that provides the $49,000 purchase price due
at closing will be paid from the TIF funds received.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
THE CTTY OF Dubuque
�"
ui���eNe�qry
DUB E 'il��i;'
Masterpiece on the Mississippi Z°°' Z°'Z
2013 2017
To: Michael Van Milligen
City Manager
FRonn: Crenna Brumwell
City Attorney
Dare: October 8, 2019
Re: Amendment to Development Agreement — Metx, LLC
The development agreement between the City of Dubuque and Mebc, LLC, as approved
on October 12, 2017, required the purchase price of$49,000 at closing. After approval, it
was discovered that the purchase price of $49,000 could be paid from the TIF funds
received. Therefore, an amendment to the Development Agreement is required.
I propose that the attached Amendment to Development Agreement be forwarded to City
Council for review and approval.
Enclosure
AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
METX, LLC
This Amendment to Development Agreement, dated for reference purposes the
/D-day of 44 , 2019, is made and entered into by and between the City
of Dubuque, Iowa (City) and Metx, LLC (Developer).
Whereas, City and Developer previously entered into a Development Agreement
dated October 12, 2017 (the Development Agreement); and
Whereas, City and Developer have agreed to this Amendment to the Development
Agreement to modify the closing date and clarify the Economic Development Grants due
to Developer.
THEREFORE, in consideration of the mutual terms and covenants contained
herein, the parties agree as follows:
1. Section 1.1 of the Development Agreement is hereby amended to read as follows:
1.1 Purchase Price. City agrees to sell and Developer agrees to purchase the
City Property shown on Exhibit L for the Purchase Price of $49,887.84 subject to
compliance with the Iowa Code requirements for disposition of municipally owned
real estate. The Purchase Price will go to the Sales Tax Increment Fund as the
City Property was originally purchased with Sales Tax Increment funding. The
Purchase Price shall be paid as outlined in Section 3.2.
2. Section 1.5 of the Development Agreement is hereby amended to read as follows
as follows:
1.5 Closing. The Closing shall take place on the Closing Date which shall be
the 30th day of October, 2019, or such other date as the parties shall agree in
writing. Consummation of the Closing shall be deemed an agreement of the parties
to this Agreement that the conditions of Closing shall have been satisfied or
waived.
3. Section 3.2(1) of the Development Agreement is hereby amended to read as
follows as follows:
(1) For and in consideration of Developer's obligations hereunder, and in
furtherance of the goals and objectives of the Urban Renewal Plan for the Project
Area and the Urban Renewal Law, City agrees, subject to Developer being and
remaining in compliance with the terms of this Agreement, to make twenty (20)
consecutive semi-annual payments (such payments being referred to collectively
as the Economic Development Grants) to Developer, with the City retaining 10%
of each Economic Development Grant payment due to the Developer until such
time as the purchase price of $49,887.84 for the real estate as outlined in Section
1.1 is paid in full, as follows:
November 1, 2021
November 1, 2022
November 1, 2023
November 1, 2024
November 1, 2025
November 1, 2026
November 1, 2027
November 1, 2028
November 1, 2029
November 1, 2030
May 1, 2022
May 1, 2023
May 1, 2024
May 1, 2025
May 1, 2026
May 1, 2027
May 1, 2028
May 1, 2029
May 1, 2030
May 1, 2031
pursuant to Iowa Code Section 403.9 of the Urban Renewal Law, in amounts equal
to the actual amount of tax increment revenues collected by City under Iowa Code
Section 403.19 (without regard to any averaging that may otherwise be utilized
under Iowa Code Section 403.19 and excluding any interest that may accrue
thereon prior to payment to Developer) during the preceding six-month period in
respect of the City Property and Developer Property and Minimum Improvements
constructed by Developer (the Developer Tax Increments). For purposes of
calculating the amount of the Economic Development Grants provided in this
Section, the Developer Tax Increments shall be only those tax increment revenues
collected by City in respect of the increase in the assessed value of the City
Property and Developer Property above the assessment of January 1, 2017
($772,405.00 total value, with the City Property valued at $54,300.00, and
Developer Property valued at $718,105.00). Developer recognizes and agrees
that the Economic Development Grants shall be paid solely and only from the
incremental taxes collected by City in respect to the City Property and Developer
Property and Minimum Improvements, which does not include property taxes
collected for the payment of bonds and interest of each taxing district, and taxes
for the regular and voter -approved physical plant and equipment levy, instructional
support levy, and any other portion required to be excluded by Iowa law, and thus
such incremental taxes will not include all amounts paid by Developer as regular
property taxes.
4. The remaining provisions of the Development Agreement remain unchanged
and in force.
METX, LLC
CITY OF DUBUQUE, IOWA
By:
By:
Its: