Assignment of Development Agreement with Betty Building, LLC toCity of Dubuque
City Council Meeting
Consent Items # 8.
Copyrighted
November 1, 2021
ITEM TITLE: Assignmentof Development Agreement with Betty Building, LLC to
Redevelop Property at 151 E. 9th Street (Linseed Oil Paintworks
Building)
SUMMARY: City Manager recommending approval of an Assignment of Development
Agreement with Betty Building, LLC for property located at 151 E 9th
Street to Carmac Management, Inc.
RESOLUTION Approving the Assignment of the Development
Agreement between the City of Dubuque and Betty Building, LLC from
Betty Building, LLC to Carmac Management, Inc
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description
Betty Building LLC Assignment of Development
Agreement-MVM Memo
Staff Memo
Resolution
Assignment of Development Agreement
Type
City Manager Memo
Staff Memo
Resolutions
Supporting Documentation
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Assignment of Development Agreement with Betty Building, LLC to
Redevelop Property at 151 E. 9th Street (Linseed Oil Paintworks Building)
DATE: October 27, 2021
Economic Development Director Jill Connors recommends City Council approval of an
Assignment of Development Agreement with Betty Building, LLC for property located at
151 E 9t" Street to Carmac Management, Inc.
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
THE CITY OF" 1300 (wain Street
AI�•MBnq Dubuque, Iowa 52001-4763
mx�vncavr rear Office (563) 589-4393
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http://www.cityofd ubuq ue.org
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Assignment of Development Agreement with Betty Building, LLC to
Redevelop Property at 151 E 9th Street (Linseed Oil Paintworks Building)
DATE: October 25, 2021
INTRODUCTION
This memorandum presents for City Council review and approval a resolution assigning
the Development Agreement with Betty Building, LLC for property located at 151 E 911
Street to Carmac Management, Inc.
BACKGROUND
On March 7th, 2013 the City Council approved a Development Agreement with Wilmac
Property Company for the rehabilitation of 151 E. 9th Street (known as the Linseed Oil
Paintworks Building) by Resolution No. 95-13. The project created 16 residential
apartments within the structure. The project was estimated to cost $5,485,347. Incentives
granted in the Development Agreement include $35,000 in Downtown Rehabilitation
grants (Fagade, Planning & Design, and Financial Consultant Grants), $160,000
Downtown Housing Incentive ($10,000 x 16 units), and 10 years of tax increment
financing estimated at $712,695.
In order to facilitate the rehabilitation of the property, and in particular to accommodate
the use of historic tax credits, the property was deeded to Betty Building, LLC. Wilmac
Property Company assigned all rights and obligations to Betty Building, LLC with the City
consenting to this assignment by Resolution No. 308-14.
DISCUSSION
The property has been rehabilitated per the terms of the Development Agreement and
the tax credit investor has exited the project. Thus, the Betty Building, LLC entity has
served its purpose and is no longer facilitating the project. Betty Building, LLC desires to
assign all rights and obligations pursuant to the Development Agreement to Carmac
Management, Inc.
RECOMMENDATION / ACTION STEP
I recommend that the City Council adopt the attached resolution to assign the
Development Agreement with Betty Building, LLC to Carmac Management, Inc.
2
Prepared by Jill Connors, Economic Development, 1300 Main St., Dubuque IA 52001 (563) 589-4393
Return to Adrienne N. Breitfelder, City Clerk, 50 W. IS' St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 370-21
APPROVING THE ASSIGNMENT OF THE DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF DUBUQUE AND BETTY BUILDING, LLC FROM BETTY BUILDING, LLC
TO CARMAC MANAGEMENT, INC
WHEREAS, the City Council of the City of Dubuque, by Resolution No. 95-13,
dated March 18, 2013, entered into a Development Agreement with Wilmac Property
Company (Wilmac); and
WHEREAS, pursuant to the Development Agreement, Wilmac, as Developer, is
required to provide certain improvements to real estate owned by Wilmac, known locally
as Linseed Oil Paintworks Company Building located at 151 East 9th Street, Dubuque,
Iowa (the Property); and
WHEREAS, in order to facilitate rehabilitation of the Property, and in particular to
accommodate the use of historic tax credits, the Property was conveyed by Wilmac to
Betty Building, LLC, an Iowa limited liability company, and on October 6, 2014, with the
consent of the City, the Development Agreement was assigned by Wilmac to Betty
Building, LLC; and
WHEREAS, the Property has been rehabilitated as required by the terms of the
Development Agreement and Betty Building, LLC desires to assign the Development
Agreement to Carmac Management, Inc pursuant to the Assignment of Development
Agreement, a copy of which is attached hereto; and
WHEREAS, the City Council finds that it is in the best interests of the City of
Dubuque to approve the Assignment of Development Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Assignment of Development Agreement assigning the
Development Agreement by Betty Building, LLC to Carmac Management, Inc is hereby
approved.
Section 2. The Mayor is hereby authorized and directed to execute the Assignment
of Development Agreement on behalf of the City of Dubuque.
Passed, approved and adopted the 1st day of November, 2021.
Roy D. Bu ,Mayor
Attest:
([�/i
Adrienne N. Breiffelder, City Clerk
ASSIGNMENT OF DEVELOPMENT AGREEMENT
Novemhe,�
This Assignment of Development Agreement is entered into this a"d day of6eteber,
2021 by and between Betty Building, LLC, an Iowa limited liability company ("Betty") and
Carmac Management, LLC ("Carmac").
RECITALS
A. The City of Dubuque, Iowa ("City") and Wilmac Property Company ("Wilmac")
entered into a Development Agreement dated March 7, 2013 which agreement was assigned by
Wilmac to Betty by an Assignment dated October, 2014 (the "Development Agreement").
B. Pursuant to the terms of the Development Agreement, Wilmac was to provide certain
improvements to real estate owned by Wilmac, such property locally known as 151 East 9`h St.,
Dubuque, Iowa and legally described as: City Lot 379 and the South 15 feet of City Lot 380 in
Dubuque, Iowa (the "Property"). Subject to the requirements and restrictions of that
Development Agreement, City agreed to take certain actions to aid in the rehabilitation of the
Property.
C. In order to facilitate rehabilitation of the Property, and in particular to accommodate
the use of historic tax credits, the Property was deeded to Betty at the time of the initial
Assignment. The recapture period for the historic tax credit transaction has now passed, the
ownership stricture has been simplified and the underlying Property has been deeded to Carmac.
As such Betty desires to assign all of its rights and obligations under the Development Agreement
to Carmac, subject to City's consent, and Carmac desires to accept such rights and obligations;
D. The parties desire to set forth their agreement regarding such assignment in writing.
Therefore, in consideration of the mutual terms and covenants herein, the parties agree as
follows:
1. Assignment. Betty does hereby assign, transfer and convey to Carmac each and every
right and obligation of Betty in and under the Development Agreement, including the right to
receive tax increment financing payments.
2. Acceptance. Carmac does hereby accept all rights and obligations of Betty under the
Development Agreement and agrees to be bound by such Development Agreement and to be
responsible for every obligation of Developer thereunder.
3. Miscellaneous. This Assignment is binding upon the parties hereto and their successors
and permitted assigns and shall be governed by and construed under the laws of the state of Iowa.
Carmac Management, LLC
By:=
Betty Buildint f LLC
By: 4% r I
CITY OF DUBUQUE CONSENT
The City of Dubuque does hereby consent to the assignment as set forth herein and
releases Betty Budding, LLC from any obligations that accrue under the terms of the
Development Agreement after the date hereof.
City ofDubu Ipwa
By: L' L
Roy D uol, Mayor
Attest: 42�',�7jj(/yre' 1/
Adrienne N. Breitfelder, City Clerk
Betty Buildint f LLC
By: 4% r I
CITY OF DUBUQUE CONSENT
The City of Dubuque does hereby consent to the assignment as set forth herein and
releases Betty Budding, LLC from any obligations that accrue under the terms of the
Development Agreement after the date hereof.
City ofDubu Ipwa
By: L' L
Roy D uol, Mayor
Attest: 42�',�7jj(/yre' 1/
Adrienne N. Breitfelder, City Clerk