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Second Amendment to Development Agreement for 253 Main Street Copyrig hted March 1, 2021 City of Dubuque Consent Items # 7. City Council Meeting ITEM TITLE: SecondAmendmentto DevelopmentAgreementfor253 MainStreet SUM MARY: City Manager recommending approval of a Second Amendment to the DevelopmentAgreement with Kenneth Oberbroeckling, as assigned to Ned Oberbroeckling, for the redevelopment of the property at 253 Main Street. RESOLUTION Approving the Second Amendment to Development Agreement between the City of Dubuque, lowa and Ned Oberbroeckling SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type Second Amendment to Development Agreement for 253 City Manager Memo Main Street-MVM Memo Staff Memo Staff Memo Resolution Resolutions Second Amendment 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: Second Amendment to Development Agreement for 253 Main Street DATE: February 23, 2021 Economic Development Director Jill Connors recommends City Council approval of a Second Amendment to the Development Agreement with Kenneth Oberbroeckling, as assigned to Ned Oberbroeckling, for the redevelopment of the property at 253 Main Street. The agreement was executed with an incorrect Termination Date of June 1, 2026. The project is scheduled to receive tax increment financing rebates through May 1, 2027. The Second Amendment will establish a Termination Date of June 1, 2027. 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 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: Second Amendment to Development Agreement for 253 Main Street DATE: February 21, 2021 INTRODUCTION This memorandum presents for review and approval a Second Amendment to the Development Agreement with Kenneth Oberbroeckling, as assigned to Ned Oberbroeckling, for the redevelopment of the property at 253 Main Street. BACKGROUND City Council approved a Development Agreement with Kenneth Oberbroeckling for the redevelopment of 253 Main Street on April 6, 2015. The Agreement calls for a capital investment of at least $600,000 and the creation of four (4) market rate apartments. A First Amendment to Development Agreement was approved on December 21, 2015 by Resolution No. 429-15 to amend the project completion date. On March 1, 2021, the City Council considered an assignment of Development Agreement to Ned Oberbroeckling. DISCUSSION The Agreement for the project at 253 Main Street was executed with an incorrect Termination Date of June 1, 2026. The project is scheduled to receive tax increment financing rebates through May 1, 2027. The Second Amendment will establish a Termination Date of June 1, 2027. RECOMMENDATION/ ACTION STEP I recommend City Council approval of the attached resolution, authorizing the Mayor to sign the Second Amendment to Development Agreement for the rehabilitation of 253 Main Street. 2 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. 54-21 APPROVING THE SECOND AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND NED OBERBROECKLING WHEREAS, the City of Dubuque (City) and Kenneth Oberbroeckling entered into a Development Agreement, dated for reference purposes the 6th day of April, 2015, as amended by the First Amendment to Development Agreement, 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, Kenneth Oberbroeckling conveyed the Property and assigned the Development Agreement to Ned Oberbroeckling by Assignment dated the 23rd day of February, 2021; and WHEREAS, City and Ned Oberbroeckling, as Developer, desire to further amend the Development Agreement as set forth in the attached Second Amendment to Development Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Second Amendment to Development Agreement between the City of Dubuque, Iowa and Ned Oberbroeckling, a copy of which is attached hereto, is hereby approved. Section 2. That the Mayor is hereby authorized and directed to execute the Second Amendment to Development Agreement on behalf of the City of Dubuque 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 Second Amendment to Development Agreement as herein approved. Passed, approved and adopted this 1 st day of March, 2021. Roy D. Bu , Mayor Attest: Adrienne N. Breitfelder, City Clerk SECOND AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND NED OBERBROECKLING This Second Amendment to Development Agreement, dated for reference purposes the 1-5+- day of March, 2021, is made and entered into by and between the City of Dubuque, Iowa (City) and Ned Oberbroeckling. WHEREAS, City and Kenneth Oberbroeckling previously entered into a Development Agreement dated for reference purposes the 6th day of April, 2015, as r amended by the First Amendment dated December 21, 2015, fo situated in Dubuque, Iowa: the following property, 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, Kenneth Oberbroeckling conveyed the Property and assigned the Development Agreement to Ned Oberbroeckling by Assignment dated the 13 day of 2021; and WHEREAS, City and Ned Oberbroeckling as Developer desire to further amend the Development Agreement as set forth herein. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES THAT THE DEVELOPMENT AGREEMENT IS AMENDED AS FOLLOWS: Section 1. Section 6.3 of the Development Agreement is hereby amended to read as follows: Termination Date. This Agreement and the rights and obligations of the parties hereunder shall terminate on June 1, 2027 (the Termination Date). Section 2. All other terms and conditions of the Development Agreement remain in full force and effect. CITY OF DUBUQUE, IOWA NED OBERBROECKLING By: Roy B Mayor Attest: