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Assignment of Development Agreement with Kenneth Oberbroeckling to Ned Oberbroeckling to redevelop 253 Main Street Copyrig hted March 1, 2021 City of Dubuque Consent Items # 6. City Council Meeting ITEM TITLE: Assignment of DevelopmentAgreementwith Kenneth Oberbroeckling to Ned Oberbroeckling to Redevelop Property at 253 Main Street SUM MARY: City Manager recommending approval of an Assignment of Development Agreement for redevelopment of property at 253 Main Street. RESOLUTION Consenting to the Assignment of the Development Agreement between the City of Dubuque and Kenneth Oberbroeckling from Kenneth Oberbroeckling to Ned Oberbroeckling SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type Oberbroeckling Assignment of Development Agreement City Manager Memo for 253 Main Street-MVM Memo Staff Memo Staff Memo Resolution Resolutions Assignment of DevelopmentAgreement Supporting Documentation Dubuque THE CITY OF � ui-Aseria cih DuB E , . � . , � II � Maste iece on tj2e 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: Assignment of Development Agreement with Kenneth Oberbroeckling to Ned Oberbroeckling to Redevelop Property at 253 Main Street DATE: February 23, 2021 Economic Development Director Jill Connors recommends City Council approval of an Assignment of Development Agreement for redevelopment of property at 253 Main Street. On April 6, 2015, the City of Dubuque entered into a Development Agreement with Kenneth Oberbroeckling. Kenneth Oberbroeckling has requested assignment of the Development Agreement to Ned Oberbroeckling. All other terms and conditions of the Development Agreement, as amended, will remain in place. 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 Cori Burbach, Assistant City Manager Jill M. Connors, Economic Development Director Dubuque Economic Development Department THE CITY OF � 1300 Main Street All•America Eity Dubuque,lowa 52001-4763 �� � "h�N",`��nz�'��:�:��� Office(563)589-4393 1 I ��� TTY(563)690-6678 http://www.cityofd u bu q ue.org zoo�=zoiz*zo�3 Masterpiece on the Mississippi �oi�*Zoi9 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director SUBJECT: Assignment of Development Agreement with Kenneth Oberbroeckling to Ned Oberbroeckling to redevelop property at 253 Main Street DATE: February 21, 2021 INTRODUCTION This memorandum requests City Council approval of an Assignment of Development Agreement for the project located at 253 Main Street to Ned Oberbroeckling. BACKGROUND On April 6, 2015, the City of Dubuque entered into a Development Agreement with Kenneth Oberbroeckling for the redevelopment of 253 Main Street. This redevelopment effort included the creation of four residential units and improved first floor commercial space. To incentivize the redevelopment project the City committed $40,000 in incentives through the Downtown Housing Incentive Program, $35,000 in incentives through the Downtown Rehabilitation program, and 10-years of tax increment financing. Oberbroeckling estimated the total development cost to be at least $600,000. In December 2015, a First Amendment to Development Agreement extended the project completion date to March 1, 2016. DISCUSSION Kenneth Oberbroeckling requests to assign the Development Agreement to Ned Oberbroeckling as permitted by Section 4.11 of the Development Agreement. All other terms and conditions of the Development Agreement, as amended, will remain in place. RECOMMENDATION/ ACTION STEP I recommend the City Council adopt the attached resolution approving the Assignment of the Development Agreement to Ned Oberbroeckling. 2 Prepared by and return to Jill M Connors, 50 W 13th Street, Dubuque IA 52001 563 589-4393 RESOLUTION NO. 53-21 CONSENTING TO THE ASSIGNMENT OF THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE AND KENNETH OBERBROECKLING FROM KENNETH OBERBROECKLING TO NED OBERBROECKLING WHEREAS, the City of Dubuque, Iowa and Kenneth Oberbroeckling (Developer) entered into a Development Agreement dated for reference purposes the 6th of April, 2016, for the following property, situated in Dubuque, Iowa: City Lot 75; and City Lot 74A EXCEPT the north 6 inches thereof; in the City of Dubuque, Iowa, according to the Commissioners' Map of the Town of Dubuque, Iowa; (the Property), locally known as 253 Main Street; and WHEREAS, pursuant to the Development Agreement, Developer is required to provide certain improvements to the building located on the Property; and WHEREAS, in order to facilitate development of the Property, the Property has been conveyed by Developer to Ned Oberbroeckling; and WHEREAS, Developer desires to assign the Development Agreement to Ned Oberbroeckling, pursuant to the Assignment attached hereto in order to facilitate the development of the Property; and WHEREAS, the Development Agreement authorizes the conveyance of the Property and assignment, subject to City Council consent; and WHEREAS, the City Council finds that it is in the best interests of the City of Dubuque to consent to the conveyance of the Property and the Assignment. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City of Dubuque hereby consents to the conveyance of the Property and the Assignment of the Development Agreement to Ned Oberbroeckling. Section 2. The Mayor is hereby authorized and directed to execute the Consent to Assignment on behalf of the City of Dubuque. Passed, approved and adopted the Attest: 17, A4�"111 Adrienne N. Breitfelder, City Clerk 1 st day of March, 021. k �Lz Roy D. B I, Mayor Prepared by and Return to: Jill M. Connors, 1300 Main Street, Dubuque, Iowa 52001 r I OPMENT AGREEMENT BETWEEN KENNETH OBERBROECKLING AND NED OBERBROECKLING This Assignment of Development Agreement, dated for reference purposes the day of �11%r , 2021, is made and entered into by and between Kenneth -- ' �1 and - r �Ws Oberbroecklingg (Assignor) and Ned Oberbroeckling (Assignee). WHEREAS, Assignor is the Developer in the Development Agreement between Developer and the City of Dubuque, Iowa, dated April 6, 2015, as amended by the First Amendment, for the following property, situated in Dubuque, Iowa: City Lot 75; and City Lot 74A EXCEPT the north 6 inches thereof, in the City of Dubuque, Iowa, according to the Commissioners' Map of the Town of Dubuque, Iowa; (the Property), locally known as 253 Main Street; and WHEREAS, the Development Agreement specifies various rights and obligations of Assignor and the City of Dubuque related to the development of the building located on the Property; and WHEREAS, Assignor desires to assign all of his interest in and to the Development Agreement to Assignee and Assignee desires to accept such assignment and agrees to be bound by the terms thereof; and WHEREAS, the assignment by Assignor to Assignee hereunder is permanent and complete and Assignor retains no rights under the Development Agreement whatsoever as of the date hereof, and WHEREAS, the City of Dubuque, Iowa has consented to this Assignment as required by the Development Agreement, NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: SeOi.onl - Assignment. Assignor hereby assigns to Assignee, and Assignee hereby accepts from Assignor, this assignment of the Development Agreement, which assignment includes all rights and obligations of any sort whatsoever of Assignor thereunder such that, upon acceptance hereof by Assignee, Assignor shall have no right or interest whatsoever in and to the Development Agreement as of the date hereof and Assignee agrees to be fully bound by the Development Agreement and shall carry out all obligations of, and be entitled to all rights of, Assignor thereunder. Section 2. Law/Binding Effect. This Assignment shall be governed by and construed in accordance with the laws of the State of Iowa, This Assignment shall be binding upon the parties hereto and their respective successors in interest and assigns. In the event of a breach of this Assignment the non -breaching party shall be entitled to all rights and remedies at law or in equity and shall be entitled to recover reasonable attorneys' fees incurred due to the breach. Section 3. Affirmation, The parties hereby affirm the Development Agreement in all respects, except that hereafter the Developer thereunder shall be the Assignee; in all other respects, the Development Agreement shall remain in full force and effect according to its terms. KENNETH OBERBROECKLING NED OBERBROECKLINII CONSENT TO ASSIGNMENT BY THE CITY OF DUBUQUE, IOWA The City of Dubuque hereby consents to the foregoing Assignment. By: Roy' D. Mayor Attest: Adrienne N. Breitfelder, city Clerk STATE OF IOWA COUNTY OF.Z?-" &gss: This instrument was acknowledged before me on Ft-� by Kenneth Oberbroeckling. L 7 Notary Public i�nd for State of Iowa CONNIE J. MUELLER NvMbG( 822W Cw-- ktYCOMM EX-P.DiEC23,2022 STATE OF 10 COUNTY OF ss: This instrument was acknowledged before me on by Ned Oberbroeckling. L114 Jf Notary Public in dfor��� State of Iowa CONNIE J, MUELLER Urmissal n Numba 822849 My Comm. Up. DEC 23,2=