First Amendment to Development Agreement for 210 Jones StreetCopyrighted
April 20, 2020
City of Dubuque Consent Items # 8.
ITEM TITLE: First Amendment to Development Agreement for 210
Jones Street
SUMMARY: City Manager recommending approval of the First
Amendment to Development Agreement between the City
of Dubuque and 210 Jones, LLC, that extends the
commencement date of the tax increment financing rebates
by one year.
SUGGESTED DISPOSITION:
RESOLUTION Approving the First Amendment to
Development Agreement between the City of Dubuque,
Iowa and 210 Jones, LLC
Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
210 Jones Street First Amendment to Development City Manager Memo
Agreement-MVM Memo
Staff Memo Staff Memo
1st Amendment to DA Supporting Documentation
1st Amendment to DA - Partially Executed Supporting Documentation
Resolution of Approval Resolutions
Masterpiece on the Mississippi
Dubuque
All-A.aia City
111111
2007.2012.2013
2017*2019
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: First Amendment to Development Agreement between the City of
Dubuque and 210 Jones, LLC to Redevelop Property at 210 Jones Street
DATE: April 14, 2020
Economic Development Director Jill Connors recommends City Council approval of the
First Amendment to Development Agreement between the City of Dubuque and 210
Jones, LLC, which extends the commencement date of the tax increment financing
rebates by one year, so that the rebates will begin in November 2021.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
/..
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Jill M. Connors, Economic Development Director
Masterpiece on the Mississippi
Dubuque
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AII•America City
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2007*2012*2013
2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
Economic Development
Department
1300 Main Street
Dubuque, Iowa 52001-4763
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
SUBJECT: First Amendment to Development Agreement between the City of
Dubuque and 210 Jones, LLC. to Redevelop Property at 210 Jones
Street
DATE: April 13, 2020
INTRODUCTION
This memorandum presents for City Council consideration and action the attached
resolution approving a First Amendment to Development Agreement between the City of
Dubuque and 210 Jones, LLC.
BACKGROUND
The building at 210 Jones Street has sat vacant for several years. Chris Miller
approached City staff in 2016 to begin discussions on the possible redevelopment of
this property, located adjacent to the intersection of Highways 20, 61, and 151 in
downtown Dubuque
The City of Dubuque and Mr. Miller's company, 210 Jones, LLC executed a
Development Agreement for the redevelopment of the property on June 19, 2017.
The work at the property began following the execution of the Development Agreement.
However, the legal closing on the Development Agreement did not take place.
DISCUSSION
The Development Agreement provided for economic development incentives to assist
the redevelopment of the property. These included downtown rehabilitation grants not
to exceed $35,000, as well as tax increment financing rebates. As the closing has not
yet taken place, none of the grants have to be disbursed. The 10 years of tax increment
financing rebates were scheduled to begin in November 2020.
Redevelopment of the exterior of the building progressed quickly. However,
redevelopment of the interior improvements has been slower than expected. This has
resulted in a lower assessed value of the building than has been anticipated before the
tax increment financing rebates were scheduled to begin. However, the improvements
to date have produced a property that promotes economic development by providing
tenant space for Creative Adventure Lab, which offers co -working space for
entrepreneurs and provides training opportunities for entrepreneurs, small business
owners, and meeting space for companies engaged in innovation work. The building
also accommodates small, independent office space for independent workers.
The developer has met with staff to explain the situation and requested that the rebate
commencement date be extended by one year, so that the rebates would begin in
November 2021. This would allow time to more fully develop the interior of the building,
which would then likely be assessed at a higher value.
RECOMMENDATION/ ACTION STEP
Given the greatly improved exterior appearance of the property at Dubuque's gateway,
and the redevelopment of a property that now promotes economic development in the
community, I respectfully request City Council approval of the attached resolution
approving the First Amendment to Development Agreement between the City of
Dubuque, Iowa and 210 Jones, LLC.
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Prepared by: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393
Return to: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 122-20
APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF DUBUQUE, IOWA AND 210 JONES, LLC.
WHEREAS, the City of Dubuque (City) and 210, LLC (Developer) previously entered
into a Development Agreement dated June 19, 2017, for the redevelopment of 210 Jones
Street in the City of Dubuque, Iowa (the Property); and
WHEREAS, the Development Agreement provides for Tax Increment Financing
Revenue Rebates (TIF Rebates) commencing November 2020; and
WHEREAS, Developer has requested to that the commencement dates for the TIF
Rebates be extended to November 2021; and
WHEREAS, City and Developer desire to amend the Development Agreement as set
forth herein.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA THAT:
Section 1. The First Amendment to Development Agreement by and between the City
of Dubuque and 210 Jones, LLC., a copy of which is attached hereto, is hereby approved.
Section 2. The Mayor is hereby authorized and directed to execute the Development
Agreement on behalf of the City of Dubuque and the City Clerk is authorized and directed
to attest to his signature.
Section 3. The City Manager is authorized to take such actions as are necessary to
comply with the terms of the Development Agreement as herein approved.
Passed, approved and adopted this 20th day of April 2020.
Roy D. Buol, Mayor
Attest:
Kevi S. Firnstal , City Clerk
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
210 JONES, LLC.
This First A endment to Development Agreement, dated for reference purposes
the ($ day of /-"04,- , 2020, is made and entered into by the City of Dubuque,
Iowa, a municipality (City), established pursuant to the Iowa Code and acting under
authorization of Iowa Code Chapter 403, as amended (the Urban Renewal Act), and 210
Jones, LLC. (Developer)).
WHEREAS, City and Developer previously entered into a Development
Agreement dated June 19, 2017 (the Development Agreement); and
WHEREAS, Section 1.3 of the Development provided for a closing date which has
already passed; and
WHEREAS, Section 3.2(1) of the Development Agreement provides for twenty (20)
consecutive semi-annual payments (Economic Development Grants) to Developer on a
schedule set forth in that Section; and
WHEREAS, Section 7.3 of the Development Agreement provides fora Termination
Date that will be affected by changes to Section 3.2(1); and
WHEREAS, City and Developer desire to amend the Development Agreement as
set forth herein.
NOW THEREFORE, in consideration of the mutual terms and covenants
contained herein, City and Developer agree as follows:
1. Section 1.3 of the Development Agreement is hereby amended to read as
follows:
1.3 Closing. The closing shall take place on the Closing Date which shall be
the 30th day of April, 2020, or such other date as the parties shall agree in writing
but in no event shall the Closing Date be later than the 5th day of May, 2020.
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.
2. Section 3.2(1) of the Development Agreement is hereby amended to read
as follows:
3.2 Economic Development Grants.
041020ba1
(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, 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
I`vay 1, 2030
May 1, 2031
pursuant to Iowa Code Section 403.9 of the Urban Renewal Law, in
amounts equal to ninety percent (90%) of 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 Property and Minimum Improvements constructed by
Developer (this 90% share of the collected tax increment revenue being
referred to herein as the Pledged Developer Tax Increments). 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 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.
3. Section 7.3 of the Development Agreement is hereby amended to read as
follows:
7.3 Termination Date. This Agreement and the rights and obligations of the
parties hereunder shall terminate on June 1, 2031 (the Termination Date).
4. Except as modified herein, the Development Agreement shall remain in full
force and effect.
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CITY OF DUBUQUE, IOWA
By:
Roy Duol, Mayor
210 JONES, LLC
By:
Chris Miller, President
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