First Amendment to a Development Agreement with Kretschmer, LLC to redevelop 220 East 9th St. Copyrig hted
March 1, 2021
City of Dubuque Consent Items # 5.
City Council Meeting
ITEM TITLE: Approving a FirstAmendmentto a DevelopmentAgreement between
the City of Dubuque and Kretschmer, LLC to Redevelop Property at 220
East 9th Street
SUMMARY: City Manager recommending approval of a FirstAmendment to a
DevelopmentAgreement with Kretschmer, LLC that modifies the closing
date to March 19, 2021 and updates the language in Section 4.2
Operation of Development Property; Public Assistance Source of
I ncome; Housing Vouchers to better align with City Council goals and
priorities.
RESOLUTIONApproving the FirstAmendmentto Development
Agreement between the City of Dubuque, lowa and Kretschmer, LLC
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
Kretschmer First Amendment to Development City Manager Memo
Agreement-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
First Amendment Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Approving a First Amendment to a Development Agreement between the
City of Dubuque and Kretschmer, LLC to Redevelop Property at 220 E 9th
Street
DATE: February 19, 2021
Economic Development Director Jill Connors recommends City Council approval of a
First Amendment to a Development Agreement with Kretschmer, LLC that modifies the
closing date to March 19, 2021 and updates the language in Section 4.2 Operation of
Development Property; Public Assistance Source of Income; Housing Vouchers to
better align with City Council goals and priorities. The project completion date of May 1,
2022 remains unchanged.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill M. Connors, Economic Development Director
Dubuque Economic Development
Department
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All•America Eity Dubuque,lowa 52001-4763
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Approving a First Amendment to a Development Agreement between the
City of Dubuque and Kretschmer, LLC to Redevelop Property at 220 E gt"
Street
DATE: February 18, 2021
INTRODUCTION
This memorandum presents for City Council consideration and action the attached
resolution approving a First Amendment to a Development Agreement between the City
of Dubuque and Kretschmer, LLC.
BACKGROUND
The property at 220 E 9th Street is a vacant building in the Historic Millwork District. The
original master plan for the Historic Millwork District calls for a mixed-use district. The
addition of apartments at this time complements the area's existing housing offerings and
balances the commercial and residential development also underway in the district.
Tim Conlon has also contributed to the Historic Millwork District with the construction of
the Intermodal Parking Facility.
The City entered into a Development Agreement with Kretschmer, LLC by Resolution
242-20 dated August 3, 2020. The Development Agreement awards Downtown Housing
Incentive Grant at a maximum of $480,000 for the creation of 48 rental units and a
maximum of$35,000 in Fa�ade, Planning & Design, and Financial Consultant Grants.
The total cost for the project is estimated at $10.5 million.
DISCUSSION
This project has been delayed due to financing. Large restoration projects, such as this
one, typically require an extensive amount of time to properly gather the remaining
funding necessary and to identify all financing sources. Additionally, this project has had
to weather the uncertainty across industries brought about by the COVID-19 pandemic.
The attached resolution modifies the Closing Date to be March 19, 2021 and updates the
language in Section 4.2 Operation of Development Propertv; Public Assistance Source
of Income; Housing Vouchers to better align with City Council goals and priorities. The
project completion date of May 1, 2022 remains unchanged.
RECOMMENDATION / ACTION STEP
I recommend that the City Council adopt the attached resolution approving a First
Amendment to a Development Agreement between the City of Dubuque and Kretschmer,
LLC. The project promotes the City's goal of Livable Neighborhoods and Housing: Great
Place to Live.
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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. 52-21
APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF DUBUQUE, IOWA AND KRETSCHMER, LLC
WHEREAS, the City of Dubuque (City) and Kretschmer, LLC (Developer)
previously entered into that certain Development Agreement dated August 3, 2020 with
respect to the matters specified therein; and
WHEREAS, the parties desire to further modify the Development Agreement as
set out in the First Amendment to Development Agreement; and
WHEREAS, the City Council finds that it is in the interests of the City of Dubuque
to approve the First Amendment to Development Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the First Amendment to Development Agreement between the
City of Dubuque, Iowa and Kretschmer, LLC, a copy of which is attached hereto, is hereby
approved.
Section 2. That the Mayor is hereby authorized and directed to execute the First
Amendment to Development Agreement on behalf of the City and the City Clerk is
authorized and directed to attest to his signature.
Section 3. That the City Manager is authorized to take such actions as are
necessary to comply with the terms of the First Amendment to Development Agreement
as herein approved.
Passed, approved and adopted this 1 st day of March, 4021.
WRAW
'• " : ` •
Attest:
Adrienne N. Breitfelder, City Clerk
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
KRETSCHMER, LLC
This First Amendment to Development Agreement, dated for reference purposes
the 1st day of March, 2021, is made and entered into by the City of Dubuque, Iowa, a
municipality ("City"), and Kretschmer, LLC, an Iowa limited liability company
("Developer"). City and Developer are hereinafter sometimes collectively referred to as
the Parties.
Whereas, City and Developer previously entered into that certain Development
Agreement dated August 3, 2020 (the "Agreement") with respect to the matters specified
therein; and
Whereas, City and Developer desire to modify the Agreement as set forth herein.
NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL TERMS AND
COVENANTS CONTAINED HEREIN, THE RECEIPT AND SUFFICIENCY OF WHICH
ARE ACKNOWLEDGED BY THE PARTIES, THE PARTIES AGREE AS FOLLOWS:
Section 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 19th day of March, 2021, or other such date as the parties shall agree
in writing but in no event, shall the Closing Date be later than the 1 st day of
April, 2021. 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.
Section 2. Section 2.4 of the Development Agreement is hereby amended to
read as follows:
2.4 Timing of Improvements. Developer hereby agrees that construction
of the Minimum Improvements on the Property shall be commenced within
thirty (30) days after the Closing Date, and shall be substantially completed
by May 1, 2022. The time frames for performing these obligations shall be
suspended due to unavoidable delays meaning delays, outside the control
of the party claiming its occurrence in good faith, which are the direct result
of strikes, other labor troubles, unusual shortages of materials or labor,
unusually severe or prolonged bad weather, acts of God, fire or other
casualty to the Minimum Improvements, litigation commenced by third
parties which, by injunction or other similar judicial action or by the exercise
of reasonable discretion directly results in delays, or acts of any federal,
state or local government which directly result in extraordinary delays. The
time for performance of such obligations shall be extended only for the
period of such delay.
Section 3. Section 4.2 of the Development Agreement is hereby amended to
read as follows:
4.2 Operation of Development Property; Public Assistance Source of
Income; Housing Vouchers. For and in consideration of the grant offered
under this Agreement, during the operation of the Property as a rental
residential property, Developer shall accept, or cause to be accepted,
applications from prospective tenants with a public assistance source of
income including but not limited to housing vouchers issued under the U.S.
HUD's Section 8 voucher program or a similar program who are otherwise
qualified prospective tenants. Developer shall not deny any tenant a lease
based on a public assistance source of income. A public assistance source
of income means income and support derived from any tax supported
federal, state or local funds, including, but not limited to, social security,
supplemental security income, temporary assistance for needy families,
family investment program, general relief, food stamps, and unemployment
compensation, housing choice voucher subsidies and similar rent subsidy
programs. This Section 4.2 shall survive the termination of this Agreement.
If Developer, or Developer's successors or assigns violate the requirements
of this Section 4.2 as determined by the City Manager in the City Manager's
sole discretion after the termination of this Agreement, Developer or
Developer's successors or assigns shall not be eligible for any City financial
assistance programs.
Section 4. All other terms of the Development Agreement, as amended, shall
remain in full force and effect.
CITY OF DUBUQUE, IOWA
By: r
Roy D. Buo Mayor
ATTEST:
Ac L�o ,
Adrienne N. Breitfelder, City Clerk
KRETSCHMER, LLC
By:
Timothy J. Conlon, Manager
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