Proposed Grant Award to CARich Properties, LLC for the Redevelopment of 1736 Central AvenueCity of Dubuque
City Council Meeting
Action Items # 3.
Copyrighted
February 21, 2022
ITEM TITLE: Proposed Grant Award to CARich Properties, LLC for the
Redevelopment of 1736 Central Avenue
SUMMARY: City Manager recommending City Council approval of the Grant
Agreement and authorization to execute the attached Loan Agreement
with CARich Properties, LLC for the rehabilitation of 1736 Central
Avenue.
RESOLUTION Approving a Grant Agreement between the City of
Dubuque, Iowa and CARich Properties, LLC for the redevelopment of
1736 Central Avenue
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
FIN ik[91:ILy,121Zk ]
Description Type
Grant Agreement with CARich Properties for City Manager Memo
Redevelopment of 1736 Central Avenue-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
Grant Agreement Supporting Documentation
Loan Agreement Supporting Documentation
THE C
DUjIBQTE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
WAWca 914
ii
2007-2012.2013
2017*2019
SUBJECT: Proposed Grant Award to CARich Properties, LLC for the Redevelopment
of 1736 Central Avenue
DATE: February 16, 2022
Economic Development Director Jill Connors is recommending City Council approval of
the Grant Agreement and authorization to execute the attached Loan Agreement with
CARich Properties, LLC for the rehabilitation of 1736 Central Avenue.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
CC' Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Dubuque
THE CITY OF
All -America My
nni K xvni , nz: a:u�ir,
DUB E
2007-2012.2013
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill 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: Proposed Grant Award to CARich Properties, LLC for the Redevelopment
of 1736 Central Avenue
DATE: February 11, 2022
INTRODUCTION
This memorandum presents for City Council consideration a Grant Agreement and Loan
Agreement awarding grant incentives to CARich Properties, LLC for the redevelopment
of 1736 Central Avenue.
BACKGROUND
The Downtown Rehabilitation Loan Program provides for several grant opportunities for
the rehabilitation of historic buildings and the creation of quality rental residential units in
the downtown area. Since 2007, the City Council has awarded at least one of these grants
to 49 different projects. In 2009, the City Council approved the creation of a funding pool
to encourage new residential housing units in downtown Dubuque, which complements
the rehabilitation grants. The program to date has assisted in the creation of over 340
quality apartments in our downtown. In 2021, the City Council approved the creation of
the Central Avenue Housing Forgivable Loan Program highlighting the area as a City
Council priority. This program provides flexibility for housing projects currently occupied
in the form of a 10-year forgivable loan.
Together, these grants, along with Tax Increment Financing funds, have incentivized the
rehabilitation of the Historic Millwork District, multiple buildings in nearly every block along
Main Street and many other downtown properties. Some examples are: Caradco, Novelty
Iron Works, Linseed, and Dupaco/Voices Buildings in the Millwork District; the Roshek
Building; mixed -use buildings in nearly every block of Main Street; multiple buildings along
the Central Avenue Corridor; and many others from 1 st Street to 32nd Street.
The Downtown Rehabilitation Loan Program has had a positive impact in the appearance
and livability of our downtown, which leads to a more attractive business and residential
environment. As such, the Economic Development Department finds the program to be
a great tool for attracting and retaining a quality workforce for our businesses.
DISCUSSION
The property at 1736 Central Avenue is a nearly vacant, mixed -use structure in the
Central Avenue Corridor. The property is owned by CARich Properties, LLC. CARich
Properties, LLC has successfully rehabilitated several historic properties in Dubuque's
downtown including 1804-1812 Central Avenue and 278 W. 17'" Street. CARich
Properties, LLC successfully updated the interior and exterior of both buildings, creating
38 new quality, affordable apartments between the two projects.
City staff in Economic Development, Housing, and Building Services have found CARich
Properties, LLC to be a quality developer and responsible property owner and landlord.
The current proposed project at 1736 Central Avenue will rehabilitate the interior of the
buildings, creating a total of eight new apartment units with four units being dedicated to
80% Area Medium Income affordable rent rates as determined by the Fair Market Rent
Rates released annually by the US Department of Housing Fair Housing & Urban
Development. The Central Avenue Corridor is a priority area for the Dubuque City
Council.
CARich Properties, LLC is in the process of applying for federal historic rehabilitation tax
credits. This is a rigorous process which ensures the historic architecture and integrity of
the structures remain intact. The proposed Grant Agreement includes a $10,000.00
Planning & Design Grant, and a $15,000.00 Financial Consultant Grant. The Central
Avenue Housing Forgivable Loan includes an $80,000.00 maximum ($10,000 x 8 units)
for the creation of the rental units. Up to the full amount of the loan may be forgiven after
10-years of compliance. City incentives for the project would total $105,000. The project
is estimated to cost at least $650,000.
RECOMMENDATION / ACTION STEP
I recommend approval of the attached Grant Agreement and authorization to execute the
attached Loan Agreement with CARich Properties, LLC for the rehabilitation of 1736
Central Avenue. This project aligns with the City Council goal of Livable Neighborhoods
and Housing: Great Place to Live.
2
Prepared by: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4393
Return to: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 70-22
APPROVING A GRANT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA
AND CARICH PROPERTIES, LLC FOR THE REDEVELOPMENT OF 1736 CENTRAL
AVENUE
Whereas, CARich Properties, LLC is the owner of the following described real
property at 1736 Central Avenue in the City of Dubuque, Iowa (the Development
Property); and
Whereas, CARich Properties, LLC has applied to the Economic Development
Department for grants under the Downtown Rehabilitation Loan Program (the Grants),
and a Central Avenue Housing Forgivable Loan (the Loan) for the redevelopment of the
building on the Development Property (the Building)(the Project); and
Whereas, the Project is eligible for the Grants and the Loan; and
Whereas, it is the determination of the City Council that approval of the Grant
Agreement and Loan Agreement for redevelopment of the Development Property by
CARich Properties, LLC, including the Grants and the Loan, according to the terms and
conditions set out in the Grant Agreement and Loan Agreement, copies of which are
attached hereto, is in the public interest of the City of Dubuque.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the Grant Agreement and Loan Agreement by and between the
City of Dubuque and CARich Properties, LLC are hereby approved.
Section 2. That the Mayor is hereby authorized and directed to execute the
Grant Agreement and Loan 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 Grant Agreement and Loan Agreement as
herein approved.
Passed, approved and adopted this 215t day of February, 2022.
Bra vanagh, Mayor
Attest:
Z r �� //1 A� /
Adrienne N. Breitfelder, City Clerk
GRANT AGREEMENT
FOR THE DOWNTOWN REHABILITATION GRANT PROGRAM
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
CARICH PROPERTIES, LLC
THIS GRANT AGREEMENT (the "Agreement"), dated for reference purposes the
as day of February, 2022, by and between the City of Dubuque, Iowa a municipality
established pursuant to the Code of Iowa ("City") and acting under the authorization of
Chapter 403 of the Code of Iowa (the "Urban Renewal Act") and CARich Properties, LLC
("Grant Recipient").
WHEREAS, in furtherance of the objectives of the Urban Renewal Act, City has
undertaken a program for the development and redevelopment of an area in the city
known as the Greater Downtown Urban Renewal District (the "District"), an urban renewal
area established pursuant to the Urban Renewal Act, and in connection therewith has
established the Downtown Rehabilitation Grant Program (the "Program"); and
WHEREAS, Grant Recipient intends to complete the renovation and rehabilitation
of a building located on property within the District locally known as 1540 Central Avenue,
Dubuque, Iowa (the "Development Property"), legally described as:
TRACT I: The Northerly 37 feet 21/2 inches in the South Middle One -Fifth
of Out Lot 440 in the City of Dubuque, Iowa, according to the United States
Commissioners' Map of the Town of Dubuque, Iowa
TRACT II: The Middle One -Fifth of Out Lot 440, in the City of Dubuque,
Iowa, according to the United States Commissioners' Map of the Town of
Dubuque, Iowa
TRACT III: The North 2 inches of the South 14 feet 2 inches of the South
Middle One -Fifth of Out Lot 440 in the City of Dubuque, Iowa, according
to the United States Commissioners' Map of the Town of Dubuque, Iowa
which will include various improvements to the building, as more specifically detailed in
Grant Recipient's application to the Program (the "Project"); and
WHEREAS, Grant Recipient has applied for a Planning & Design Grant, a
Financial Consultant Grant, and a Central Avenue Housing Forgivable Loan for the
Project from City under the Program in amounts collectively up to One Hundred Five
Thousand Dollars ($105,000.00) (the "Grant"), the terms of which are set forth in this
Agreement; and
WHEREAS, the City Council believes that the development of the Development
Property pursuant to this Agreement and the fulfillment generally of this Agreement, are
01252022bal
in the vital and best interests of City and in accord with the public purposes and provisions
of the applicable state and local laws and requirements under which the Project has been
undertaken and is being assisted.
NOW THEREFORE, IN CONSIDERATION OF THE PROMISES AND
OBLIGATIONS OF THE PARTIES HERETO, EACH OF THEM DOES HEREBY
COVENANT AND AGREE WITH THE OTHER AS FOLLOWS:
SECTION 1. MINIMUM IMPROVEMENTS.
1.1. Required Minimum Improvements. Grant Recipient shall make a capital
investment of not less than Five Hundred Thousand Dollars ($500,000.00) to improve the
Development Property as follows:
Creation of eight (8) affordable housing units
(the "Minimum Improvements"). The Minimum Improvements shall be completed in
substantial conformitywith the scope and scale described in Grant Recipient's Application
to the Program, attached hereto as Exhibit B.
1.2. Timing of Minimum Improvements. Grant Recipient shall begin construction of the
Minimum Improvements by March 1, 2022 and complete construction of the Minimum
Improvements by March 1, 2023. City shall determine in its sole discretion, following an
inspection by City's Building Services Department and/or Planning Department, when the
Minimum Improvements have been completed. In order to be considered completed, the
Minimum Improvements must be constructed in accordance with the terms of this
Agreement, in compliance with the regulations of the Program, and in substantial
conformity with Grant Recipient's Application Design Letter attached hereto as Exhibit A.
1.3 Certificate of Completion. Promptly following the request of Grant Recipient and
upon determination by the City Manager that the Minimum Improvements have been
completed as required by this Agreement, the City Manager shall furnish Grant Recipient
with a Certificate of Completion in recordable form which shall be a conclusive
determination of the satisfaction and termination of the agreements and covenants in this
Agreement.
1.4. Construction of Minimum Improvements. Grant Recipient shall complete all work
with respect to construction of the Minimum Improvements in conformance with all
requirements of the Program, this Agreement, and all federal, state, and local laws,
ordinances, and regulations.
1.5. Insurance.
(1) Grant Recipient shall provide and maintain or cause to be maintained at all
times during the process of constructing the Minimum Improvements and at its sole
cost and expense builder's risk insurance, naming City as loss payee, written on a
Completed Value Form in an amount equal to one hundred percent (100%) of the
building (including Minimum Improvements) replacement value when construction
is completed. Coverage shall include the "special perils" form and Grant Recipient
shall furnish City with proof of insurance in the form of a certificate of insurance.
(2) Upon completion of construction of the Minimum Improvements and up to
the Termination Date, Developer shall maintain, or cause to be maintained, at its
cost and expense property insurance against loss and/or damage to the building
(including the Minimum Improvements) under an insurance policy written with the
"special perils" form and in an amount not less than the full insurable replacement
value of the building (including the Minimum Improvements), naming City as loss
payee. Developer shall furnish to City proof of insurance in the form of a certificate
of insurance.
(3) The term "replacement value" shall mean the actual replacement cost of the
building with Minimum Improvements (excluding foundation and excavation costs
and costs of underground flues, pipes, drains and other uninsurable items) and
equipment, and shall be reasonably determined from time to time at the request of
City, but not more frequently than once every three (3) years.
(4) Grant Recipient shall notify City immediately in the case of damage
exceeding Fifty Thousand Dollars ($50,000.00) in amount to, or destruction of, the
Development Property or any portion thereof resulting from fire or other casualty.
Net proceeds of any such insurance (the "Net Proceeds"), shall be paid directly to
Grant Recipient as its interests may appear, and Grant Recipient shall forthwith
repair, reconstruct and restore the Development Property to substantially the same
or an improved condition or value as it existed prior to the event causing such
damage and, to the extent necessary to accomplish such repair, reconstruction
and restoration, Grant Recipient shall apply the Net Proceeds of any insurance
relating to such damage received by Grant Recipient to the payment or
reimbursement of the costs thereof, subject, however, to the terms of any
mortgage encumbering title to the Property, as its interests may appear. Grant
Recipient shall complete the repair, reconstruction and restoration of the
Development Property whether or not the Net Proceeds of insurance received by
Grant Recipient for such purposes are sufficient.
SECTION 2. FURTHER COVENANTS OF GRANT RECIPIENT.
2.1. Operation of Development Property: Housing Vouchers. For and in consideration
of the Grant offered under this Agreement, during the operation of the Development
Property as a rental residential property, Grant Recipient shall accept, or cause to be
accepted, applications from prospective tenants with housing vouchers issued under the
U.S. HUD's Section 8 voucher program or a similar program who are otherwise qualified
prospective tenants. Grant Recipient 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
3
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 2.1 shall survive the termination of this Agreement. If Grant Recipient, or Grant
Recipient's successors or assigns violates the requirements of this Section 2.1 as
determined by the City Manager in the City Manager's sole discretion after the termination
of this Agreement, Grant Recipient or Grant Recipient's successors or assigns shall not
be eligible for any City financial assistance programs.
2.2. Real Property Taxes. Grant Recipient shall pay or cause to be paid, when due, all
real property taxes and assessments payable with respect to all and any parts of the
Development Property.
2.3. No Other Exemptions. Until the Termination Date, Grant Recipient agrees not to
apply for any state or local property tax exemptions, except for an application for urban
revitalization tax abatement under Iowa Code Chapter 404 and 427, which are available
with respect to the Development Property or the Minimum Improvements located thereon
that may now be, or hereafter become, available under state law or city ordinance during
the term of this Agreement.
2.4. Non -Discrimination. In carrying out the Project, Grant Recipient shall not
discriminate against any employee or applicant for employment or tenant because of
race, religion/creed, color, familial status, marital status, sex, sexual orientation, gender
identity, national origin, age, or mental/physical disability.
SECTION 3. DOWNTOWN REHABILITATION GRANT PROGRAM.
3.1. Central Avenue Housing Forgivable Loan.
(1) For and in consideration of Developer's obligations hereunder, City agrees,
subject to Developer being and remaining in compliance with the terms of this
Agreement, and a Loan Agreement, to make Developer a ten (10) year zero
percent (0%) interest loan in the amount of Eighty Thousand Dollars
($80,000.00) from funds from the Downtown Housing Incentive Fund.
(2) A Loan Agreement will be executed at the Closing outlining the terms and
conditions of the Central Avenue Forgivable Housing Loan, upon such terms
as are satisfactory to City.
3.2. Planning and Design Grant. City agrees to provide a matching (1:1) grant not to
exceed Ten Thousand Dollars ($10,000.00) to reimburse Grant Recipient for documented
predevelopment costs, architectural and engineering fees and other authorized soft costs
associated with the rehabilitation of the Development Property on the terms and
conditions set forth in the attached design letter.
M
3.3. Financial Consultant Grant. City agrees to provide a matching (1:1) grant not to
exceed Fifteen Thousand Dollars ($15,000.00) to reimburse Grant Recipient for
documented costs related to hiring a financial consultant to evaluate the Project's
feasibility on the terms and conditions set forth in the Program.
3.4. Payment of the Grant. The Grant shall be payable as follows:
(1) Any and all portions of the Grant shall be funded solely and only from
available Program funds;
(2) Prior to the release of any grant funds, (i) Grant Recipient shall have
submitted documentation of its eligible expenses under the corresponding grant
program, and (ii) City shall have issued a Certificate of Completion; and
(3) The Grant funds shall be disbursed directly to Grant Recipient.
SECTION 4. EVENTS OF DEFAULT; REMEDIES.
4.1. Events of Default Defined. Failure by Grant Recipient to substantially observe or
perform any covenant, condition, obligation, or agreement on its part to be observed or
performed under this Agreement shall be an "Event of Default."
4.2. Remedies on Default by Grant Recipient. Whenever any Event of Default occurs
and is continuing, City, as specified below, may take any one or more of the following
actions after the giving of written notice by City to Grant Recipient of the Event of Default,
but only if the Event of Default has not been cured within thirty (30) days following such
notice, or if the Event of Default cannot be cured within thirty (30) days and Grant
Recipient does not provide assurances to City that the Event of Default will be cured as
soon as reasonably possible thereafter:
(1) City may suspend its performance under this Agreement, including
suspension of the payment of any installment of the Grant to Grant Recipient, until
it receives assurances from Grant Recipient deemed adequate by City, that Grant
Recipient will cure its default and continue its performance under this Agreement;
(2) City may terminate this Agreement; or
(3) City may take any action, including legal, equitable, or administrative action,
which may appear necessary or desirable to enforce performance and observance
of any obligation, agreement, or covenant under this Agreement.
4.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to City is
intended to be exclusive of any other available remedy or remedies, but each and every
such remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity or by statute. No
delay or omission to exercise any right or power accruing upon any default shall impair
any such right or power or shall be construed to be a waiver thereof, but any such right
and power may be exercised from time to time and as often as may be deemed expedient.
4.4. No Implied Waiver. In the event any agreement contained in this Agreement should
be breached by any party and thereafter waived by any other party, such waiver shall be
limited to the particular breach so waived and shall not be deemed to waive any other
concurrent, previous or subsequent breach hereunder.
SECTION 5. MISCELLANEOUS.
5.1. Conflict of Interest. Grant Recipient represents and warrants that, to its best
knowledge and belief after due inquiry, no officer or employee of City, or its designees or
agents, nor any consultant or member of the governing body of City, and no other public
official of City who exercises or has exercised any functions or responsibilities with
respect to the Project during his or her tenure, or who is in a position to participate in a
decision -making process or gain insider information with regard to the Project, has had
or shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds
thereof, for work or services to be performed in connection with the Project, or in any
activity, or benefit therefrom, which is part of the Project at any time during or after such
person's tenure.
5.2. Grants, Notices, and Demands. A grant payment, notice, demand, or other
communication under this Agreement by any party to the other shall be sufficiently given
or delivered if it is dispatched by registered or certified mail, postage prepaid, return
receipt requested, or delivered personally, and
(1) In the case of Grant Recipient, is addressed and delivered personally to
CARich Properties, LLC, 6842 Fawn Road, P.O. Box 653, Platteville WI 53818;
Attn: Chris Richard; and
(2) In the case of City, is addressed and delivered personally to the City of
Dubuque at City Hall, 50 W. 13th Street, Dubuque, IA 52001; Attn: City Manager
and City Attorney.
or to such other designated individual or officer or to such other address as any party
shall have furnished to the other in writing in accordance herewith.
5.3. Titles of Sections. Any titles of the several parts and Sections of this Agreement
are inserted for convenience of reference only and shall be disregarded in construing or
interpreting any of its provisions.
5.4. Definitions. All capitalized terms used herein shall have the meaning defined
herein, unless a different meaning clearly appears from the context.
5.5. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall constitute one and the same instrument.
5.6. Governing Law. This Agreement shall be governed and construed in accordance
with the laws of the State of Iowa.
5.7. Amendment. This Agreement may not be amended except by a subsequent
writing signed by the parties hereto.
5.8. Successors and Assigns. This Agreement is intended to and shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and
assigns.
5.9. Termination Date. This Agreement shall terminate and be of no further force or
effect December 31, 2033, unless the Agreement is terminated earlier by the other terms
of this Agreement.
5.10. No Third -Party Beneficiaries. No rights or privileges of either party hereto shall
inure to the benefit of any landowner, tenant, contractor, subcontractor, material supplier,
or any other person or entity, and no such landowner, tenant, contractor, subcontractor,
material supplier, or any other person or entity shall be deemed to be a third -party
beneficiary of any of the provisions contained in this Agreement.
5.11. Indemnification. Grant Recipient hereby agrees to defend, indemnify, and hold
harmless City, its officer and employees, against any and all claims of any kind made by
Grant Recipient or any third party relating to or arising out of this Agreement, including
costs, expenses, or attorneys' fees.
5.12. No Assignment Non -Transferability. Following the execution of this Agreement
and until the Termination Date:
(1) Grant Recipient represents and agrees that it will not transfer, convey or
make any assignment of any of its rights or interests in the Development Property,
Minimum Improvements, or this Agreement to any other party unless: (i) the
transferee partnership, corporation, or individual assumes in writing all of the
obligations of Grant Recipient under this Agreement, and (ii) City consents thereto
in writing in advance thereof; and
(2) Grant Recipient represents and agrees that it will not assign its rights or
interests in this Agreement, including the Grant, to any other party unless City
consents thereto in writing in advance thereof.
CITY OF DUBUQUE, IOWA
"'_
CARich Properties, LLC,
By
Brad M. Cavanagh, Mayor Chris Richard, Manager
ATTEST:
Adrienne N. Breitfelder, City Clerk
EXHIBIT A
DESIGN LETTER
LO I1.111r_1
Applicant is not receiving Fagade Grant funds. The project is applying for historic tax
credits. City design scope and requirements will defer to the State Historic Preservation
Office.
EXHIBIT B
APPLICATION
THE CITY OF
DuB TE
Masterpiece ott the Mississippi
Dubuque
Lcu mn: D`wlopm [ Dcparmw m
1300 MainSvea
411tiltrp1
Duhuque, IA 52001-0964
f
t'
Office (5631599A393
T Y'156336"7g
I i
hnp-../'-y "'y111d0uquc mg
2007-2012.2013
2017*2019
City of Dubuque, Iowa
Application for Downtown Incentive Programs
Name of Applicant (Developer/Company). ��j AAddress of Proposed Project: n 5 JC
Contact Name:
Address:
Phone: C'INrstate:'e a Zip: (..7L
Date of Birth: Email
Total Project Cost:
Estimated Start Date: S P
Estimated Completion Date: / _ c _ � I
With whom has the Applicant discussed details
of this project at the City of Dubuque? -7'/( &nrtor-.
Check each of the Incentives for which you are applyin
A.) Downtown Housing Incentive gq/
B.) Downtown Rehabilitation Grant ( j
( ) Facade Grant
Financial Consultant Grant
Planning and Design Grant
C.) Tax Increment Rebate or Tax Abatement Yv
Please Include Proof of Building Ownership as Attachment A
You may use the following site as a resource for providing this information:
https:/Ibeacon.schneidercoro.com/
If Applicant is not building owner, you must provide proof of building owner's
permission to proceed with project as part of Attachment A:
If the owner is a for -profit or non-profit organization, you must provide a resolution adopted by
the Board of Directors which authorizes both the project and the application attached with the
Minutes of the Meeting when it was adopted. Please Include as Attachment B
Does Applicant own or have ownership interest in other Properties in Dubuque?
NYes ()No
If yes, please list addresses: SOS ii) r 7o")e, 11116 GAfin't
7�T_ T-7Tf nd A -,' I . JLn_9Pa
THE CITY OF
DUB-
E
Masterpiece on the Mississippi
Dubuque
Economic Development Department
I3011 Alum Sircet
b
Dubuque, IA 520014864-0AM
IFI�t1:4
Office (563) 5894393
"
TIY: (563)690.6678
hvp,.!a uv cnyofidubuque.org
2007-2012.2013
2017*2019
A.) Downtown Housing Incentive Program*
*Grant Funds will be disbursed upon receipt of certificate of occupancy for all units in the
project.
"The Rental Property Owner/Property Manager will be required to accept Housing Choice
Vouchers (HCV) provided by the U.S. Department of Housing and Urban Development
(HUD) from qualified prospective tenants for the duration of the forgivable loan
agreement. c o� i7 b
How many units are being created? 0 ` 4
Housing units created must be greater than 650 Square Feet. A minimum of 2 units are
required for eligibility, and a maximum of 75 units are eligible. (housing units that have been
vacant for over three years are considered new units)
Amount of Assistance Requested (No more QQ d 0 0
than $10,000 per unit is eligible) $ B
Does the project have bank financing?F;4 I L
If yes, what financial institution? �k
�
Please Include Letter of Commitment from Financial Institution as Attachment F
A 10-year pro forma must be attached if requesting housing grant. Please include
as Attachment G
Does the pro forma show a developer's fee? ( )Yes ()No
If yes, over what period of time will this fee be paid?
Will residential units have any income restrictions? ( )Yes PNO
If yes, how many residential units will have income restrictions?
(This could be 0% to 65% of the rental units can have a restriction
of 80% area median income.)
Is a Floor plan for all units attached? Please attach X;IQes ()No
as Attachment H )"
Dubuque Economic Doclopmcm Department
THE CITY OF , u0010ain stmet
..T/■ R Dubuque, lA 52001-t861
L" L AI 1�1110 �1 OITcc:(5631589J393
1 � I�'r TfY: 1563) 690-6678
hup:dwww.ci yofdubuque.org
2007-2012.2013
Masterpiece on the Mississippi 2017.2019
Do the above properties comply with all applicable City of Dubuque ordinances and regulations,
including but not limited to: Housing, Building, Zoning, Fire, Health and Vacant & Abandoned
Building regulations? kYes ()No
'Grant Recipient must complete all work in conformance with all requirements of the Program,
this Agreement, and all federal, State, and local laws, ordinances, and regulations.
Please list all sources of funding and financing for this project besides the requested grants, and
whether the sources are already secured (i.e. Historic Tax Credits, Grants, IEDA Incentives).
Current Physical Condition of the Building - Written:
Please 1 /ude up to 3 Current Photos as Attachment C
�f PY4rior -, S-ll^J r�'�rf o� 'PhQ bU��•K 4rC
Proposed Modification of Building/Intended Improvements - Written:
Pleas Include Rendering/Drawing as Attachment
��oIPi+o., fI arc w% / j�( bPa �% Lu I D� ixdror
�m b,'&
L ,A OW$ oMMo , IJ
q r aS J
NO comet qse r a ^.e.J
/I rn
Community Benefit/Impact of Project (how will the project further the revitalization of downtown):
if additional space is needed, please Includeas Attachment/ E L _ 1 (yam
rz,� .0 Ord ,m /la H1.�� v.jA il-C 7D "odt l'u I/`r I-,"eL 'YJ-
('%a 6 6r1-" ).
THE CITY OF
DUB E
Masterpiece on the Mississippi
Dubuque Economic Development Department
bISOII Main Street
� � Dubuque,IA 520014864
O111ce: ISM13I)5894393
11 I I l frY 0-6678
hltpavnvw.rityoyofdfJubuubuyuaarg
2007-2012-2013
2017*2019
B.) Downtown Rehabilitation Grant"
"Grant Funds will be disbursed upon completion of work, documentation of costs, and an
inspection of completed project. Disbursements are at a rate of $.50 for each $1.00 of costs
incurred, up to maximum amount of grant committed. Written requests for payment must be
submitted to the Economic Development Department.
"Paid invoices and/or cancelled checks will be required to confirm expenditures.
Professional drawings and scope of work showing dimensions, architectural details, and labels
must be attached to the application. Please include as Attachment I
Planning and Design Grant
Estimated costs for planning and design
How much assistance is the project requesting?
Fagade Grant
Estimated costs for facade improvements
How much assistance is the project requesting?
Will the project include repointing or tuck pointing?
If yes, a mortar analysis sample may be required.
The sample would be a reimbursable expenditure.
$ ?oJ000
$ lo, 000
()Yes ()No
Do existing signs on the project property comply with City Zoning regulations and design
guidelines? ( )Yes ()No ( )N/A
If the above answer is no, or the Applicant is proposing new signs, please describe the design
materials and colors that will be used on the sign face, how the sign will be displayed, and any
lighting proposed.
With whom has the Applicant discussed details of this project in the City of Dubuque
Planning Department? This is mandatory.
THE CITY OF
DUB I
Masterpiece oil the Mississippi
Dubuque Economic Development Depanment
1300 Main street
Dubuque, IA 52001-4864
AY l�eklCro Ot7se: (563)5894393
690-6678
ht Ipi/www.cityofJubuyuc.orgc.org
2007-2012.2013
2017*2019
Has Applicant reviewed the City's Design Review Guidelines at
http://citvofdubugue org/1295/Design-Guideline ?
P4Yes ()No
Financial Consultant Grant
Estimated costs for financial consultant services $ 30, o a 0
How much assistance is the project requesting? $ 1 S-, o o 0
Bids: Please attach bid(s) for ALL proposed work as Attachment J
Certificate of Insurance: Please attach a certificate of insurance for the individual/company
bidding the work as Attachment K
C.) Tax Increment Rebate or Tax Abatement
Please contact the Economic Development Department to discuss tax incentives at
(563) 589-4393.
I certify that I am applying for the above incentives before having begun the eligible
work, and project work is scheduled to start in fewer than 6 months of the date of this
applicatioi
Signature:�/S�� Date: /L)'
To be considered for approval, a fully completed application with attachments and exhibits
must be submitted via one of the following.
• Website: https://www.cityofdubuque.org/l13/Facade-Grant
• email: econdevpcitvofdubuque.org
• drop off: Economic Development Department, 1300 Main Street, Dubuque, Iowa 52001
• US Post: Economic Development Department, 1300 Main Street, Dubuque, Iowa 52001
CITY OF DUBUQUE, IOWA
DOWNTOWN REHABILITATION LOAN PROGRAM
LOAN AGREEMENT
NUMBER: # 1 - 22
This AGREEMENT, dated as of the dol day of Fc6rurx1,, 2022, is entered into by and
between the CITY OF DUBUQUE, IOWA, a municipal corporation orgahized and existing under the laws
of the State of Iowa (hereinafter referred to as the "City") and CARich Properties, LLC (hereinafter referred
to as the "Owner").
WITNESSETH:
Whereas, a Letter of Commitment and Additional Actions Concerning a Downtown Rehabilitation
Loan, Design Grant and Financial Consultant Grant with Owner was approved by the Dubuque City Council
on FbNa,y A , 2022 by Resolution No.70-22 to provide an $80,000 Central Avenue Housing Forgivable
Loan for the project.
Whereas, Owner's property at 1734-1736 Central Avenue, Dubuque, Iowa, legally described as
follows:
TRACT I: The Northerly 37 feet 21/2 inches in the South Middle One -Fifth of Out Lot
440 in the City of Dubuque, Iowa, according to the United States Commissioners'
Map of the Town of Dubuque, Iowa
TRACT II: The Middle One -Fifth of Out Lot 440, in the City of Dubuque, Iowa,
according to the United States Commissioners' Map of the Town of Dubuque, Iowa
TRACT III: The North 2 inches of the South 14 feet 2 inches of the South Middle One -
Fifth of Out Lot 440 in the City of Dubuque, Iowa, according to the United States
Commissioners; Map of the Town of Dubuque, Iowa
(the "Property"), and upon which is located a building (the "Building"), is located within the boundaries of
the Greater Downtown Urban Renewal District most recently established by Resolution No. 70-22 on
February 21, 2022; and
Whereas, the goals and objectives of the Greater Downtown Urban Renewal Plan (the "Plan")
provide for the creation of the financial incentives needed to eliminate conditions of blight through a program
of voluntary or compulsory repair and rehabilitation of buildings and to retain or create employment and/or
housing opportunities within the District; and
Whereas, the City desires to assist Owner in its efforts to bring said Building into compliance with
local codes and ordinances, to eliminate certain conditions of physical decay, and to retain or create
housing opportunities within the District; and
Whereas, without the assistance of the Central Avenue Housing Forgivable Loan Program, Owner
would be unable to operate the Building to its fullest capacity, thereby threatening local housing
opportunities.
NOW THEREFORE, in consideration of the premises and respective covenants, agreements and
representations hereinafter set forth, the parties agree as follows:
1. SOURCE OF FUNDS. City is prepared to provide financial assistance to qualified parties
through the use of tax increment financing under Chapter 403 of the Iowa Code, and has allocated funds
sufficient to carry out its obligations under this Agreement.
2. LOAN TERMS. City agrees to loan to Owner on the terms and conditions set forth herein
the amount of eighty thousand dollars ($80,000) that shall consist of the Central Avenue Housing Forgivable
Loan Program funds.
The term of the loan shall be ten (10) years. Interest on the loan shall be zero percent (0.0%) per
annum. Monthly interest payments shall become due and payable on March 1st, 2022. Unless forgiven, the
entire balance of the loan, including interest and principal, shall become due and payable not later than
March 1s', 2032.
At the time of the initial disbursement of loan funds to Owner, Owner shall execute the Promissory
Note in the form attached hereto as Exhibit A payable to the order of the City in the principal amount of
Eighty Thousand dollars ($80,000) and the Mortgage, attached as Exhibit B.
3. DISBURSEMENT AND USE OF LOAN FUNDS. Loan funds shall be disbursed to Owner
by City upon completion of the Qualifying Housing Rental Units, defined in Paragraph 27(c), for amounts
not in excess of the total sum of $80,000.
It shall be a condition precedent to the approval of this Agreement that Owner shall have paid all
real property taxes and assessments due and payable with respect to the Property and provide evidence
of such payment to City prior to approval of this Agreement by City.
Owner shall furnish to City written requests for disbursement of loan funds. Such request shall be
accompanied by a statement of Owner's Qualifying Housing Rental Units and appropriate documentation
of City Inspection and Construction Services approval. It is expressly understood that all funds advanced
under this Agreement shall be used by Owneronlyforthe purpose of creating the Qualifying Housing Rental
Units set forth in such written requests.
Owner shall substantially complete the Project, defined in Paragraph 27(b), in accordance with the
terms of this Agreement, on or before March 1, 2023.
4. SECURITY. The loan shall be secured by a Mortgage on the Property, a copy of which is
attached as Exhibit B. The value of the Property shall at no time be less than the unpaid balance of any
First Mortgage plus the unpaid balance of the City's mortgage.
5. AVAILABLE INCENTIVES. Up to the full amount of the loan shall be forgiven by the City
as an incentive for the creation of new housing opportunities. The amount of the loan to be forgiven shall
be determined one hundred twenty (120) months from the completion of the improvements.
The amount of the loan forgiven shall be as follows:
(a) Ten thousand dollars ($10,000) may be forgiven for each new housing unit created. A new
housing unit shall be defined as one of the following:
(1) The creation of a housing unit where one did not previously exist; or
(2) An existing housing unit which has been significantly transformed and improved.
6. STATUS OF OWNER. Owner represents that it is an organization duly organized and
existing under the laws of the State of Iowa; that it is authorized to borrow under this Agreement, to execute
and deliver the note and otherwise perform the obligations of this Agreement; that it has authority and power
to own its property and conduct its business as it is currently carried on; that the performance of its
obligations under this Agreement and the issuance of any note under it will not conflict with any provision
of law, the Articles of Incorporation or the Bylaws of Corporation, or any agreement binding on it. Owner
also represents, except as disclosed in writing to City, that it is not a party to any pending or threatened
litigation or to any proceeding or action for the assessment or collection of additional taxes, and that it
knows of no known contingent liabilities not provided for or disclosed in the financial statement provided to
City which would affect the ability of Owner to repay this loan.
7. FINANCIAL CONDITION OF OWNER. Owner has delivered to City a statement of
Owner's financial condition as of the date of application for financial assistance which fairly represents the
financial condition of Owner as of the date stated, all in accordance with generally accepted accounting
principles consistently applied, and that the statements still correctly reflect the financial condition and
status of its operations as of the date of this Agreement.
8. TITLE OF OWNER. Subject to the liabilities reflected on Owner's financial statement as
well as those incurred in relation to this Project, Owner represents that it has good and marketable title to
the Property, free of any mortgage, pledge, lien, security interest, encumbrance, or charge to all those
assets reflected on the financial statement and to assets since acquired. Owner shall provide to City a title
and lien search showing no unsatisfied mortgages, judgements, personal taxes, special assessments, tax
liens, mechanics liens, or liens of any kind adverse to the title of the Property at Owner's sole cost. Taxes
not due or payable or otherwise delinquent are excepted.
9. CONDITIONS OF BORROWING. On the date on which any sum is to be borrowed,
Owner, in addition to the Note, shall deliver to City such other papers and documents as may be required
to comply with the conditions of this Agreement, as counsel for City may reasonably request.
Owner shall be required at the Closing Date defined herein Paragraph 27(a) to comply, or establish
compliance, as follows:
(a) That the representations and warranties of Owner are correct on the Closing Date;
(b) That Owner has fully complied with the covenants and agreements to the extent required
before the Closing Date;
(c) That no default or event which might mature into a default has occurred or continues to the
Closing Date;
(d) That no litigation or proceeding is pending against Owner which would materially affect the
assets of Owner, taking into account the entire assets and overall business of Owner;
(e) That there has been no material adverse change in the financial condition of Owner from that
shown by the financial statement delivered to City under paragraph 8;
(f) That no fire or casualty has occurred in any building or to any inventories or property of
Owner that might substantially, adversely affect the conduct of its business; and
(g) That all taxes due as of the Closing date have been paid.
10. SPECIAL CONDITIONS. Owner agrees to comply with the following requirements
established by the City for the Central Avenue Forgivable Loan Program:
(a) All exterior work must coincide with the historic character of the Building.
it. INSURANCE REQUIREMENTS. Owner agrees to comply with the following requirements
established by the City for the Central Avenue Forgivable Loan Program:
(a) Developer shall provide and maintain or cause to be maintained at all times during the process
of constructing the Minimum Improvements (and, from time to time at the request of City,
furnish City with proof of insurance in the form of a certificate of insurance for each insurance
policy):
All risk builder's risk insurance, written on a Completed Value Form in an amount equal to
one hundred percent (100%) of the replacement value when construction is completed.
(b) Upon completion of construction of the Minimum Improvements and up to the Termination
Date, Owner shall maintain, or cause to be maintained, at its cost and expense property
insurance against loss and/or damage to the building (including the Minimum Improvements)
under an insurance policy written with the "special perils' form and in an amount not less
than the full insurable replacement value of the building (including the Minimum
Improvements), naming City as loss payee. Owner shall furnish to City proof of insurance in
the form of a certificate of insurance.
(c) The term "replacement value" shall mean the actual replacement cost of the building with
Minimum Improvements (excluding foundation and excavation costs and costs of
underground flues, pipes, drains and other uninsurable items) and equipment, and shall be
reasonably determined from time to time at the request of City, but not more frequently than
once every three (3) years.
(d) Owner shall notify City immediately in the case of damage exceeding $50,000 in amount to,
or destruction of, the Minimum Improvements or any portion thereof resulting from fire or
other casualty. Net proceeds of any such insurance (Net Proceeds), shall be paid directly to
Owner as its interests may appear, and Owner shall forthwith repair, reconstruct and restore
the Minimum Improvements to substantially the same or an improved condition or value as
they existed prior to the event causing such damage and, to the extent necessary to
accomplish such repair, reconstruction and restoration, Owner shall apply the Net Proceeds
of any insurance relating to such damage received by Owner to the payment or
reimbursement of the costs thereof, subject, however, to the terms of any mortgage
encumbering title to the Property (as its interests may appear). Owner shall complete the
repair, reconstruction and restoration of Minimum Improvements whether or not the Net
Proceeds of insurance received by Owner for such purposes are sufficient.
12. COVENANTS OF OWNER. Owner covenants that it will
(a) Correct code deficiencies in accordance with all applicable building and fire codes within the
scope of the project.
(b) Provide for the repair and rehabilitation of the Building in accordance with all applicable
building, zoning, fire and housing codes.
(c) Substantially complete the Project on or before March 1, 2023.
(d) Maintain at all times insurance as described in the attached Insurance Schedule A as
evidenced by Exhibit C attached hereto and entitled "Certificate of Insurance". Said
certification shall be renewed on an annual basis and provided to City within thirty (30) days
of the anniversary date of this Agreement.
(e) Pay when due all taxes, assessments and other liabilities, except those contested in good
faith where notice of such contest has been given to the City.
(f) Not create or permit to exist any other pledge, security interest, lien or other encumbrance
on the security for this Agreement provided in Paragraph 4 above and the Note provided
pursuant to this Loan Agreement without written consent of City.
(g) Give prompt notice in writing to City of any adverse development, financial or otherwise,
which would materially affect its business, properties or affairs, or the ability of Owner to
perform its obligations under this Agreement or the Note executed pursuant to the terms of
this Agreement.
(h) Use loan funds only for purposes authorized herein.
(1) Pay all recording and filing fees, mortgage taxes, documentary stamps, and any other taxes
payable in connection with this transaction.
Q) For and in consideration of the loan offered under this Agreement, during the operation of
the Property as a rental residential property, Owner 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. Owner 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,
unemployment compensation, housing choice voucher subsidies, and similar rent subsidy
programs. This shall survive the termination of this Agreement. If Owner, or Owner's
successors or assigns violates this requirement as determined by the City Manager in the
City Manager's sole discretion after the termination of this Agreement, Owner or Owner's
successors or assigns shall not be eligible for any City financial assistance programs.
(k) For and in consideration of the loan offered under this Agreement, during the operation of
the Property as a rental residential property, Owner shall dedicate 4 units to 80% Area
Medium Income affordable rent rates as determined by the Fair Market Rent Rates released
annually by the U.S. Department of Housing & Urban Development.
13. DEFAULT. Owner shall be in default upon the occurrence of any of the following events:
(a) Owner fails to pay any installment of principal or interest on any note (whether to City or any
other public or private lender) when due or within thirty (30) days thereafter;
(b) Owner becomes insolvent or admits in writing its inability to pay its debts as they mature; or
applies for, consents to or acquiesces in the appointment of a trustee or receiver for any of
its property; or in the absence of an application for consent or acquiescence, a trustee or
receiver is appointed for it or a substantial part of its property and is not discharged within
ten (10) days; or it otherwise commits an act of bankruptcy; or any bankruptcy,
reorganization, debt arrangement or other proceeding under any bankruptcy or insolvency
law, or any dissolution or liquidation proceeding is instituted by or against it and if instituted
is consented to or acquiesced in by it or remains for ten days undismissed;
(c) Owner fails in the performance of any of the terms and conditions of this Agreement including
the creation of less than eight (8) Qualifying Rental Units, four (4) of which are dedicated to
80% Area Medium Income affordable rent rates as determined by the Fair Market Rent Rates
released annually by the U.S. Department of Housing & Urban Development and such non-
performance continues for ten (10) days after written notice thereof from City or from the
holder of a note;
(d) Any warranty made by Owner is untrue in any material respect, or any schedule, statement,
report, notice or writing furnished by Owner to City is untrue in any material respect on the
date as of which the facts set forth are stated or certified, provided any such error is not the
result of unintentional errors which are capable of correction without prejudice to the City;
(e) Any government board, agency, department, commission or public or private lender takes
possession or control of any substantial part of any property of Owner.
14. ACCELERATION AT OPTION OF CITY. If any event of default occurs, City may, after ten
days' written notice of default to Owner, declare Note immediately due and payable, at which time all unpaid
principal and interest shall immediately become due and payable. City shall promptly advise Owner in
writing of any acceleration under this paragraph, but the failure to do so shall not impair the effect of such
declaration.
15. MAINTENANCE OF RECORDS AND RIGHT TO INSPECT. Owner shall keep and
maintain books, records and other documents relating directly to the receipt and disbursement of loan
funds; and any duly authorized independent accounting representative of City shall at all reasonable times
have access to and the right to inspect, copy, audit and examine all such books and other documents of
Owner pertaining to the project until the completion of all close out procedures respecting City's loan and
the final settlement and conclusion of all issues arising out of said loan.
16. ADDRESS. Owners principal business address is:
CARich Properties, LLC
6842 Fawn Road
P.O. Box 653
Platteville, WI 53818
Owner shall promptly give City written notice of any further change in its principal office address.
City's address is:
City Manager
City Hall
50 West 13th Street
Dubuque, Iowa 52001
17. LIMITATION OF CITY'S LIABILITY FOR PROJECT ACTIVITIES. City shall not be liable
to Owner, or to any party, for the completion of, or the failure to complete, any activities which are part of
the Project, except as may be specifically provided in this Agreement or other written agreements between
City and Owner or any of Owner's affiliates or subsidiaries. Owner agrees to indemnify, hold harmless and
defend City from any such claims.
18. CONFLICT OF INTEREST. Owner certifies that to its knowledge no member, officer or
employee of City, or its designees or agents, nor any consultant or member of the governing body of City,
and no other public official of City who exercises or has exercised any functions or responsibilities with
respect to the Project during his or her tenure, or who is in a position to participate in a decision making
process or gain inside information with regard to the Project, has nor shall have any interest, direct or
indirect, in any contract or subcontract, or in any activity, or benefit therefrom, which is part of this Project
at any time during or for one year after such person's tenure.
19. NONDISCRIMINATION. In carrying out the project, Developer shall not discriminate
against any employee or applicant for employment because of age, color, familial status, gender identity,
marital status, mental/physical disability, national origin, race, religion/creed, sex, or sexual orientation.
Owner shall post in a conspicuous place, available to employees and applicants for employment, notices
to be provided by City setting forth the provisions of this nondiscrimination clause. Owner shall state that
all qualified applicants will receive consideration for employment without regard to race, religion, color, sex,
sexual orientation, gender identity, national origin, age or disability.
20. DISCLAIMER OF RELATIONSHIPS. Nothing contained in this Agreement between the
parties, nor any act of City or Owner shall be deemed or construed by any of the parties, or by any third
persons, to create any relationship of third party beneficiary, principal or agent, limited or general
partnership, or joint venture.
21. NOTICE. Any notice, if mailed by United States certified mail, shall be deemed given when
mailed, postage prepaid, addressed to the other party at its address shown above, or at any other address
subsequently designated by either party to the other.
22. SUCCESSORS AND ASSIGNS. All covenants, representations, warranties and
agreements herein set forth shall be binding upon Owner, and its legal representatives, successors and
assigns. This Agreement may not be assigned by City or Owner without the express written consent of the
other party.
23. LEGALITY. If any provision of this Agreement shall, for any reason, be held to be invalid
or unenforceable, such invalidity or unenforceability shall not affect any other provision hereof, but this
Agreement shall be construed as if such invalid or unenforceable provision had never been contained
herein.
24. GOVERNING LAW. This Agreement and all rights and duties hereunder, including but not
limited to all matters of construction, validity and performance shall be governed by the laws of the State of
Iowa.
25. SURVIVAL OF REPRESENTATIONS. All representations or warranties of Owner shall
survive the execution and delivery of this Agreement and any note executed and delivered under it, and no
investigation by City nor any closing shall affect the representations or warranties or the right of City to rely
on and enforce them.
26. DELAY. No delay on the part of City or the holder of any note in the exercise of any right
shall operate as a waiver, nor shall any single or partial exercise of any right preclude other or additional
exercise of any right.
27. DEFINITIONS.
(a) "Closing Date" shall mean the date on which this Agreement is executed by the parties.
(b) "Project" shall mean the rehabilitation project of Owner's property at 1734-1736 Central
Avenue, Dubuque, Iowa, identified in Owner's application for financial assistance. Said
application is on file in the office of the Economic Development Department, 1300 Main
Street, Dubuque, Iowa 52001.
(c) "Qualifying Housing Rental Units" shall mean those eight (8) residential rental units created
by Owner during and for the Project and identified in Owner's application for financial
assistance.
(d) "New housing unit" shall mean either a housing unit created where one did not previously
exist, or an existing housing unit which has been significantly transformed and improved.
Dated this day of Rbr1)oP1 2022.
CITY OF DUBUQUE, IOWA
By:
Brad M, nagh, Mayor
CARICH PR pE IES, LLC
By:
Chrig4trofiard, Mk6ager
Gt
Adrienne N. Breitfelder, City Clerk
EXHIBIT A
PROMISSORY NOTE
City of Dubuque, Iowa
PROMISSORY NOTE
EXHIBIT A
Date: 2022
Loan Number: # 1 - 22
Fund Source: Downtown Housing Creation Incentive (TIF)
$80,000
FOR VALUE RECEIVED, the undersigned, CARich Properties, LLC, 6842 Fawn Road, P.O. Box 653,
Platteville WI 53818, promises to pay to the order of the City of Dubuque, Iowa, 50 W. 13th Street, Dubuque,
Iowa, 52001, or at such place as it may direct, the sum of EIGHTY THOUSAND DOLLARS ($80,000),
together with interest at the rate of 0 % per annum, upon the unpaid balance, in monthly interest only
payments beginning April 1, 2023 and on the first day of each month thereafter until February 1, 2033. The
entire outstanding principal balance and interest, if not forgiven, shall be paid in full on March 1, 2033.
If a default occurs under this Promissory Note or any of the other agreements between the undersigned
and the holder and is not cured within TEN (10) DAYS after written notice to the undersigned, then the
holder may, as its right and option, declare immediately due and payable the principal balance of this
Promissory Note and interest accrued hereon. The undersigned further agrees to pay all costs of collection,
including reasonable attorneys' fees. The City of Dubuque may at any time renew this Promissory Note or
extend its maturity date for any period and release any security for, or any party to this Promissory Note,
all without notice to or consent of and without releasing any maker, accommodation maker, endorser or
guarantor from any liability on the Promissory Note. Presentment or other demand for payment, notice of
dishonor and protest are hereby waived by the undersigned and each endorser and guarantor.
This Promissory Note is subject to the Loan Agreement of same date by and between the undersigned and
the City of Dubuque (including but not limited to a reduction in the principal amount of this Promissory Note
as authorized by paragraph 5 of said Loan Agreement) and any default under said Loan Agreement is a
default under this Promissory Note.
Signed,
CARich Properties, LLC
Chris Richard, Manager
EXHIBIT B
MORTGAGE
10
EXHIBIT B
Prepared by: Jill M. Connors 1300 Main Street, Dubuque, Iowa 52001 Phone: 563-583-4213
Return to: same
MORTGAGE
THIS MORTGAGE is made between CARich Properties, LLC ("Mortgagor") and City of Dubuque, Iowa ("Mortgagee").
[ ] If this box is checked, this Mortgage is a Purchase Money Mortgage as defined in the Iowa Code.
1. Grant of Mortgage and Security Interest. Mortgagor hereby sell, convey and mortgage unto Mortgagee, and grant a
security interest to Mortgagee in the following described property:
a. Land and Buildings. All of Mortgagor's' right, title and interest in and to the following described real estate situated
in Dubuque County, Iowa (the "Land");
TRACT I: The Northerly 37 feet 21/2 inches in the South Middle One -Fifth of Out Lot440 in the City of Dubuque,
Iowa, according to the United States Commissioners' Map of the Town of Dubuque, Iowa
TRACT II: The Middle One -Fifth of Out Lot 440, in the City of Dubuque, Iowa, according to the United States
Commissioners' Map of the Town of Dubuque, Iowa
TRACT III: The North 2 inches of the South 14 feet 2 inches of the South Middle One -Fifth of Out Lot 440 in
the City of Dubuque, Iowa, according to the United States Commissioners; Map of the Town of Dubuque, Iowa
b. Personal Property. All fixtures and other personal property integrally belonging to, or hereafter becoming an integral
part of the Land or Buildings. whether attached or detached, including but not limited to, light fixtures, shades, rods,
blinds, Venetian blinds, awnings, storm windows, screens, linoleum, water softeners, automatic heating and air-
conditioning equipment and all proceeds, products, increase, issue, accessions, attachments, accessories, parts,
additions, repairs. replacements and substitutes of, to, and for the foregoing (the "Personal Property").
c. Revenues and Income. All rents, issues, profits, leases, condemnation awards and insurance proceeds now or
hereafter arising from the ownership, occupancy or use of the Land, Buildings and Personal Property, or any part thereof
(the "Revenues and Income").
TO HAVE AND TO HOLD the Land, Buildings, Personal Property and Revenues and Income (collectively called the
"Mortgaged Property"), together with all privileges, hereditaments thereunto now or hereafter belonging, or in any way
appertaining and the products and proceeds thereof, unto Mortgagee, its successors and assigns.
2. Obligations. This Mortgage secures the following (hereinafter collectively referred to as the "Obligations"):
a. The payment of the loan made by Mortgagee to CARich Properties, LLC evidenced by a promissory note dated
, 2022 in the principal amount of $80,000.00, any renewals, extensions, modifications or refinancing
thereof and any promissory notes issued in substitution therefor; and
b. All other obligations of Mortgagor to Mortgagee, now existing or hereafter arising, whether direct or indirect, contingent
or absolute and whether as maker or surety, including, but not limited to, future advances and amounts advanced and
expenses incurred by Mortgagee pursuant to this Mortgage.
3. Representations and Warranties of Mortgagor. Mortgagor represents, warrants and covenants to Mortgagee that (i)
Mortgagors hold clear title to the Mortgaged Property and title in fee simple in the Land; (ii) Mortgagor has the right, power and
authority to execute this Mortgage and to mortgage, and grant a security interest in the Mortgaged Property; (iii) the Mortgaged
Property is free and clear of all liens and encumbrances, except for real estate taxes not yet delinquent and except as otherwise
stated in subparagraph 1 a. herein; (iv) Mortgagor will warrant and defend title to the Mortgaged Property and the lien and priority of
this Mortgage against all claims and demands of all persons, whether now existing or hereafter arising; and (v) all buildings and
improvements now or hereafter located on the Land are, or will be, located entirely within the boundaries of the Land.
4. Payment and Performance of the Obligations. Mortgagor will pay all amounts payable under the Obligations in
accordance with the terms of the Obligations when and as due and will timely perform all other obligations of Mortgagor under the
Obligations. The provisions of the Obligations are hereby incorporated by reference into this Mortgage as if fully set forth herein.
5. Taxes. Mortgagor shall pay each installment of all taxes and special assessments of every kind, now or hereafter levied
against the Mortgaged Property before the same become delinquent, without notice or demand, and shall deliver to Mortgagee proof
of such payment within fifteen (15) days after the date in which such tax or assessment becomes delinquent.
6. Liens. Mortgagor shall not create, incur or suffer to exist any lien, encumbrance, security interest or charge on the
Mortgaged Property or any part thereof which might or could be held to be equal or prior to the lien of this Mortgage, other than the
lien of current real estate taxes and installments of special assessments with respect to which no penalty is yet payable. Mortgagor
shall pay, when due, the claims of all persons supplying labor or materials to or in connection with the Mortgaged Property.
7. Compliance with Laws. Mortgagor shall comply with all present and future statutes, laws, rules, orders, regulations and
ordinances affecting the Mortgaged Property, any part thereof or the use thereof.
8. Permitted Contests. Mortgagor shall not be required to (i) pay any tax, assessment or other charge referred to in
paragraph 5 hereof, (ii) discharge or remove any lien, encumbrance or charge referred to in paragraph 6 hereof, or (iii) comply with
any statute, law, rule, regulation or ordinance referred to in paragraph 7 hereof, so long as Mortgagor shall contest, in good faith, the
existence, amount or the validity thereof, the amount of damages caused thereby or the extent of Mortgagor's liability therefor, by
appropriate proceedings which shall operate during the pendency thereof to prevent (A) the collection of, or other realization upon
the tax, assessment, charge or lien, encumbrances or charge so contested, (B) the sale, forfeiture or loss of the Mortgaged Property
or any part thereof, and (C) any interference with the use or occupancy of the Mortgaged Property or any part thereof. Mortgagor
shall give prompt written notice to Mortgagee of the commencement of any contest referred to in this paragraph 8.
9. Care of Property. Mortgagor shall take good care of the Mortgaged Property; shall keep the Buildings and Personal
Property now or later placed upon the Mortgaged Property in good and reasonable repair and shall not injure, destroy or remove
either the Buildings or Personal Property during the term of this Mortgage. Mortgagor shall not make any material alteration to the
Mortgaged Property without the prior written consent of Mortgagee.
10. Insurance.
a. Risks to be Insured. Mortgagor, at its sole cost and expense, shall maintain insurance on the Buildings and other
improvements now existing or hereafter erected on the Land and on the Personal Property included in the Mortgaged
Property against loss by fire, extended coverage perils and such other hazards as Mortgagee may from time to time
require, such insurance to have a "Replacement Cost" endorsement attached thereto, with the amount of the insurance at
least equal to the balance of the Obligations. Such insurance shall name Mortgagee as a loss payee. At Mortgagor's
option, such policy may have a coinsurance clause of not less than 90% of replacement cost provided the policy contains
an appropriate form of cost escalation endorsement. Mortgagor will at its sole cost and expense, from time to time, and at
any time at the request of Mortgagee, provide Mortgagee with evidence satisfactory to Mortgagee of the replacement cost
of Mortgaged Property. Mortgagor will maintain such other insurance as Mortgagee may reasonably require.
b. Policy Provisions. All insurance policies and renewals thereof maintained by Mortgagor pursuant to this Mortgage
shall be written by an insurance carrier satisfactory to Mortgagee, contain a mortgagee clause in favor of and in form
acceptable to Mortgagee, contain an agreement of the insurer that it will not amend, modify or cancel the policy except
after thirty (30) days prior written notice to Mortgagee, and be reasonably satisfactory to Mortgagee in all other respects.
c. Delivery of Policy or Certificate. If requested by Mortgagee, Mortgagor will deliver to Mortgagee original policies
satisfactory to Mortgagee evidencing the insurance which is required under this Mortgage, and Mortgagor shall promptly
furnish to Mortgagee all renewal notices and, upon request of Mortgagee, evidence of payment thereof. At least ten (10)
days prior to the expiration date of a required policy, Mortgagor shall deliver to Mortgagee a renewal policy in form
satisfactory to Mortgagee.
d. Assignment of Policy. If the Mortgaged Property is sold at a foreclosure sale or if Mortgagee shall acquire title to
the Mortgaged Property, Mortgagee shall have all of the right, title and interest of Mortgagor in and to any insurance
policies required hereunder, and the unearned premiums thereon, and in and to the proceeds thereof resulting from any
damage to the Mortgaged Property prior to such sale or acquisition.
e. Notice of Damage or Destruction; Adjusting Loss. If the Mortgaged Property or any part thereof shall be
damaged or destroyed by fire or other casualty, Mortgagor will, within five (5) calendar days after the occurrence of such
damage or destruction, give written notice thereof to the insurance carrier and to Mortgagee and will not adjust any
damage or loss which is estimated by Mortgagor in good faith to exceed $25,000 unless Mortgagee shall have joined in or
concurred with such adjustment; but if there has been no adjustment of any such damage or loss within four (4) months
from the date of occurrence thereof and if an Event of Default shall exist at the end of such four (4) month period or at any
time thereafter, Mortgagee may alone make proof of loss, adjust and compromise any claim under the policies, and
appear in and prosecute any action arising from such policies. In connection therewith, Mortgagor do hereby irrevocably
authorize, empower and appoint Mortgagee as attorney -in -fact for Mortgagor (which appointment is coupled with an
interest) to do any and all of the foregoing in the name and on behalf of Mortgagor.
f. Application of Insurance Proceeds. All sums paid under any insurance policy required by this Mortgage shall be
paid to Mortgagee, which shall, at its option, apply the same (after first deducting therefrom Mortgagee's expenses
incurred in collecting the same including but not limited to reasonable attorney's fees) to the reduction of the Obligations
or to the payment of the restoration, repair, replacement or rebuilding of Mortgaged Property that is damaged or destroyed
in such manner as Mortgagee shall determine and secondly to the reduction of the Obligations. Any application of
insurance proceeds to principal of the Obligations shall not extend or postpone the due date of the installments payable
under the Obligations or change the amount of such installments.
g. Reimbursement of Mortgagee's Expenses. Mortgagor shall promptly reimburse Mortgagee upon demand for all of
Mortgagee's expenses incurred in connection with the collection of the insurance proceeds, including but not limited to
reasonable attorneys fees, and all such expenses shall be additional amounts secured by this Mortgage.
11. Inspection. Mortgagee, and its agents, shall have the right at all reasonable times, to enter upon the Mortgaged Property
for the purpose of inspecting the Mortgaged Property or any part thereof. Mortgagee shall, however, have no duty to make such
inspection. Any inspection of the Mortgaged Property by Mortgagee shall be entirely for its benefit and Mortgagor shall in no way
rely or claim reliance thereon.
12. Protection of Mortgagee's Security. Subject to the rights of Mortgagor under paragraph 8 hereof, if Mortgagor fails to
perform any of the covenants and agreements contained in this Mortgage or if any action or proceeding is commenced which affects
the Mortgaged Property or the interest of the Mortgagee therein, or the title thereto, then Mortgagee, at Mortgagee's option, may
perform such covenants and agreements, defend against or investigate such action or proceeding, and take such other action as
Mortgagee deems necessary to protect Mortgagee's interest. Any amounts or expenses disbursed or incurred by Mortgagee in good
faith pursuant to this paragraph 12 with interest thereon at the rate of 10% per annum, shall become an Obligation of Mortgagor
secured by this Mortgage. Such amounts advanced or disbursed by Mortgagee hereunder shall be immediately due and payable by
Mortgagor unless Mortgagor and Mortgagee agree in writing to other terms of repayment. Mortgagee shall, at its option, be
subrogated to the lien of any mortgage or other lien discharged in whole or in part by the Obligations or by Mortgagee under the
provisions hereof, and any such subrogation rights shall be additional and cumulative security for this Mortgage. Nothing contained
in this paragraph shall require Mortgagee to incur any expense or do any act hereunder, and Mortgagee shall not be liable to
Mortgagor for any damage or claims arising out of action taken by Mortgagee pursuant to this paragraph.
13. Condemnation. Mortgagor shall give Mortgagee prompt notice of any action, actual or threatened, in condemnation or
eminent domain and hereby assign, transfer and set over to Mortgagee the entire proceeds of any award or claim for damages for
all or any part of the Mortgaged Property taken or damaged under the power of eminent domain or condemnation. Mortgagee is
hereby authorized to intervene in any such action in the names of Mortgagor, to compromise and settle any such action or claim,
and to collect and receive from the condemning authorities and give proper receipts and acquittances for such proceeds. Any
expenses incurred by Mortgagee in intervening in such action or compromising and settling such action or claim, or collecting such
proceeds shall be reimbursed to Mortgagee first out of the proceeds. The remaining proceeds or any part thereof shall be applied to
reduction of that portion of the Obligations then most remotely to be paid, whether due or not, or to the restoration or repair of the
Mortgaged Property, the choice of application to be solely at the discretion of Mortgagee.
14. Fixture Filing. From the date of its recording, this Mortgage shall be effective as a financing statement filed as a fixture
filing with respect to the Personal Property and for this purpose the name and address of the debtor is the name and address of
Mortgagor as set forth in paragraph 20 herein and the name and address of the secured party is the name and address of the
Mortgagee as set forth in paragraph 20 herein.
15. Events of Default. Each of the following occurrences shall constitute an event of default hereunder ("Event of Default"):
a. Mortgagor shall default in the due observance or performance of or breach its agreement contained in paragraph 4
hereof or shall default in the due observance or performance of or breach any other covenant, condition or agreement on
its part to be observed or performed pursuant to the terms of this Mortgage.
b. Mortgagor shall make an assignment for the benefits of its creditors, or a petition shall be filed by or against Mortgagor
under the United States Bankruptcy Code or Mortgagor shall seek or consent to or acquiesce in the appointment of any
trustee, receiver or liquidator of a material part of its properties or of the Mortgaged Property or shall not, within thirty (30)
days after the appointment of a trustee, receiver or liquidator of any material part of its properties or of the Mortgaged
Property, have such appointment vacated.
c. A judgment, writ or warrant of attachment or execution, or similar process shall be entered and become a lien on or be
issued or levied against the Mortgaged Property or any part thereof which is not released, vacated or fully bonded within
thirty (30) days after its entry, issue or levy.
d. An event of default, however defined, shall occur under any other mortgage, assignment or other security document
constituting a lien on the Mortgaged Property or any part thereof.
16. Acceleration; Foreclosure. Upon the occurrence of any Event of Default and at any time thereafter while such Event of
Default exists, Mortgagee may, at its option, after such notice as may be required by law, exercise one or more of the following
rights and remedies (and any other rights and remedies available to it):
a. Mortgagee may declare immediately due and payable all Obligations secured by this Mortgage, and the same shall
thereupon be immediately due and payable, without further notice or demand.
b. Mortgagee shall have and may exercise with respect to the Personal Property, all the rights and remedies accorded
upon default to a secured party under the Iowa Uniform Commercial Code. If notice to Mortgagor of intended disposition
of such property is required by law in a particular instance, such notice shall be deemed commercially reasonable if given
to Mortgagor at least ten (10) days prior to the date of intended disposition.
c. Mortgagee may (and is hereby authorized and empowered to) foreclose this Mortgage in accordance with the law of
the State of Iowa, and at any time after the commencement of an action in foreclosure, or during the period of redemption,
the court having jurisdiction of the case shall at the request of Mortgagee appoint a receiver to take immediate possession
of the Mortgaged Property and of the Revenues and Income accruing there from, and to rent or cultivate the same as he
may deem best for the interest of all parties concerned, and such receiver shall be liable to account to Mortgagor only for
the net profits, after application of rents, issues and profits upon the costs and expenses of the receivership and
foreclosure and upon the Obligations.
17. Redemption. It is agreed that if this Mortgage covers less than ten (10) acres of land, and in the event of the foreclosure
2
of this Mortgage and sale of the property by sheriffs sale in such foreclosure proceedings, the time of one year for redemption from
said sale provided by the statues of the State of Iowa shall be reduced to six (6) months provided the Mortgagee, in such action files
an election to waive any deficiency judgment against Mortgagor which may arise out of the foreclosure proceedings; all to be
consistent with the provisions of Chapter 628 of the Iowa Code. If the redemption period is so reduced, for the first three (3) months
after sale such right of redemption shall be exclusive to the Mortgagor, and the time periods in Sections 628.5, 628.15 and 628.16 of
the Iowa Code shall be reduced to four (4) months. It is further agreed that the period of redemption after a foreclosure of this
Mortgage shall be reduced to sixty (60) days if all of the three following contingencies develop: (1) The real estate is less than ten
(10) acres in size; (2) the Court finds affirmatively that the said real estate has been abandoned by the owners and those persons
personally liable under this Mortgage at the time of such foreclosure; and (3) Mortgagee in such action files an election to waive any
deficiency judgment against Mortgagor or their successors in interest in such action. If the redemption period is so reduced,
Mortgagor or their successors in interest or the owner shall have the exclusive right to redeem for the first thirty (30) days after such
sale, and the time provided for redemption by creditors as provided in Sections 628.5, 628.15 and 628.16 of the Iowa Code shall be
reduced to forty (40) days. Entry of appearance by pleading or docket entry by or on behalf of Mortgagor shall be a presumption that
the property is not abandoned. Any such redemption period shall be consistent with all of the provisions of Chapter 628 of the Iowa
Code. This paragraph shall not be construed to limit or otherwise affect any other redemption provisions contained in Chapter 628 of
the Iowa Code.
18. Attorneys' Fees. Mortgagor shall pay on demand all costs and expenses incurred by Mortgagee in enforcing or
protecting its rights and remedies hereunder, including, but not limited to, reasonable attorneys' fees and legal expenses.
19. Forbearance not a Waiver, Rights and Remedies Cumulative. No delay by Mortgagee in exercising any right or
remedy provided herein or otherwise afforded by law or equity shall be deemed a waiver of or preclude the exercise of such right or
remedy, and no waiver by Mortgagee of any particular provisions of this Mortgage shall be deemed effective unless in writing signed
by Mortgagee. All such rights and remedies provided for herein or which Mortgagee or the holder of the Obligations may have
otherwise, at law or in equity, shall be distinct, separate and cumulative and may be exercised concurrently, independently or
successively in any order whatsoever, and as often as the occasion therefor arises.
20. Notices. All notices required to be given hereunder shall be in writing and deemed given when personally delivered or
deposited in the United States mail, postage prepaid, sent certified or registered, addressed as follows:
a. If to Mortgagor, CARich Properties, LLC, 6842 Fawn Road, P.O. Box 653, Platteville WI 53818
b. If to Mortgagee, to: Economic Development Department; 1300 Main Street, Dubuque, Iowa 52001
or to such other address or person as hereafter designated in writing by the applicable party in the manner provided in this
paragraph for the giving of notices.
21. Severability. In the event any portion of this Mortgage shall, for any reason, be held to be invalid, illegal or unenforceable
in whole or in part, the remaining provisions shall not be affected thereby and shall continue to be valid and enforceable and if, for
any reason, a court finds that any provision of this Mortgage is invalid, illegal, or unenforceable as written, but that by limiting such
provision it would become valid, legal and enforceable then such provision shall be deemed to be written, construed and enforced
as so limited.
22. Further Assurances. At any time and from time to time until payment in full of the Obligations, Mortgagor will, at the
request of Mortgagee, promptly execute and deliver to Mortgagee such additional instruments as may be reasonably required to
further evidence the lien of this Mortgage and to further protect the security interest of Mortgagee with respect to the Mortgaged
Property, including, but not limited to, additional security agreements, financing statements and continuation statements. Any
expenses incurred by Mortgagee in connection with the recordation of any such instruments shall become additional Obligations of
Mortgagor secured by this Mortgage. Such amounts shall be immediately due and payable by Mortgagor to Mortgagee.
23. Successors and Assigns bound; Number; Gender; Agents; Captions. The rights, covenants and agreements
contained herein shall be binding upon and inure to the benefit of the respective legal representatives, successors and assigns of
the parties. Words and phrases contained herein, including acknowledgment hereof, shall be construed as in the singular or plural
number, and as masculine, feminine or neuter gender according to the contexts. The captions and headings of the paragraphs of
this Mortgage are for convenience only and are not to be used to interpret or define the provisions hereof.
24. Governing Law. This Mortgage shall be governed by and construed in accordance with the laws of the State of Iowa.
25. Release of Rights of Dower, Homestead and Distributive Share. Each of the undersigned hereby relinquishes all
rights of dower, homestead and distributive share in and to the Mortgaged Property and waives all rights of exemption as to any of
the Mortgaged Property.
26. Acknowledgment of Receipt of Copies of Debt Instrument. Mortgagor hereby acknowledge the receipt of a copy of
this Mortgage together with a copy of each promissory note secured hereby.
27. Additional Provisions.
Dated: 2022.
CARich Properties, LLC, Mortgagor
Chris Richard, Manager
I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS
AND EXEMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS MORTGAGE, I VOLUNTARILY GIVE UP MY RIGHT TO
THIS PROTECTION FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON THIS MORTGAGE.
Dated:
STATE OF IOWA
ss:
COUNTY OF DUBUQUE
On this day of , 2022, before me, the undersigned, a Notary Public, personally appeared Chris Richard, to me
known to be the identical person named in and who executed the foregoing instrument, and acknowledged that they executed the
same as their voluntary act and deed.
Notary Public
EXHIBIT C
CERTIFICATE OF INSURANCE
11
City of Dubuque Insurance Requirements for Lessees of City Property and Right of Way
Licensees or Permittees
INSURANCE SCHEDULE A
Lessee shall furnish a signed certificate of insurance to the City of Dubuque, Iowa for the
coverage required in Exhibit I prior to the lease, license, or permit commencement. All lessees of
City property and right of way licensees or permittees shall submit an updated certificate
annually. Each certificate shall be prepared on the most current ACORD form approved by the
Iowa Insurance Division or an equivalent. Each certificate shall include a statement under
Description of Operations as to why the certificate was issued. Loan Agreement dated
2. All policies of insurance required hereunder shall be with an insurer authorized to do business in
Iowa and all insurers shall have a rating of A or better in the current A.M. Best's Rating Guide.
3. Each certificate shall be furnished to the Finance Department of the City of Dubuque.
4. The lessee, licensee, or permittee shall be required to carry the minimum coverage/limits, or
greater if required by law or other legal agreement, in Exhibit I. Failure to provide the required
minimum coverage shall not be deemed a waiver of such requirements by the City of Dubuque.
5. Failure to obtain or maintain the required insurance shall be considered a material breach of the
lease, license, or permit.
6. All required endorsements shall be attached to certificate.
7. Whenever a specific ISO form is referenced the current edition of the form must be used unless
an equivalent form is approved by the Director of Finance and Budget. The lessee, licensee, or
permittee must identify and list in writing all deviations and exclusions from the ISO form.
8. If lessee's, licensee's, or permittee's limits of liability are higher than the required minimum limits
then the lessee's, licensee's, or permittee's limits shall be this agreement's required limits.
9. Lessee, licensee, or permittee shall require all subcontractors and sub -subcontractors to obtain
and maintain during the performance of work insurance for the coverages described in this
Insurance Schedule and shall obtain certificates of insurance from all such subcontractors and
sub -subcontractors. Lessee, licensee, or permittee agrees that it shall be liable for the failure of a
subcontractor and sub -subcontractor to obtain and maintain such coverage. The City may
request a copy of such certificates from the lessee, licensee, or permittee.
10. Lessee, license & permittees shall be responsible for deductibles and self -insured retention and
for payment of all policy premiums and other costs associated with the insurance policies
required below.
11. All certificates of insurance must include agents name, phone number and email address.
12. The City of Dubuque reserves the right to require complete, certified copies of all required
insurance policies, including endorsements, required by this Schedule at any time.
13. The City of Dubuque reserves the right to modify these requirements, including limits, based on
changes in the risk or other special circumstances during the term of the agreement, subject to
mutual agreement of the parties.
Page 1 of 4 Schedule A Lessees of City Property; Right of Way Licensees or Permittees April 2021
City of Dubuque Insurance Requirements for Lessees of City Property and Right of Way
Licensees or Permittees
INSURANCE SCHEDULE A (Continued)
EXHIBIT I
A) COMMERCIAL GENERAL LIABILITY
General Aggregate Limit $2,000,000
Products -Completed Operations Aggregate Limit $1,000,000
Personal and Advertising Injury Limit $1,000,000
Each Occurrence $1,000,000
Fire Damage Limit (any one occurrence) $50,000
Medical Payments $5,000
1) Coverage shall be written on an occurrence, not claims made, form. The general
liability coverage shall be written in accord with ISO form CG 00 01 or business
owners form BP 00 02. All deviations from the standard ISO commercial general
liability form CG 0001, or Business owners form BP 00 02, shall be clearly
identified.
2) Include ISO endorsement form CG 25 04 "Designated Location(s) General
Aggregate Limit."
3) Include endorsement indicating that coverage is primary and non-contributory.
4) Include Preservation of Governmental Immunities Endorsement (Sample
attached).
5) Include additional insured endorsement for:
The City of Dubuque, including all its elected and appointed officials, all its
employees and volunteers, all its boards, commissions and/or authorities and
their board members, employees and volunteers. Use ISO form CG 20 10
(Ongoing operations) or its equivalent.
6) Policy shall include Waiver of Right to Recover from Others Endorsement.
B) WORKERS' COMPENSATION & EMPLOYERS LIABILITY
Statutory Benefits covering all employees injured on the job by accident or disease as
prescribed by Iowa Code Chapter 85.
Coverage A Statutory —State of Iowa
Coverage B Employers Liability
Each Accident $100,000
Each Employee -Disease $100,000
Policy Limit -Disease $500,000
Policy shall include Waiver of Right to Recover from Others endorsement.
Coverage B limits shall be greater if required by the umbrella/excess insurer.
OR
If, by Iowa Code Section 85.1A, the lessee, licensee, or permittee is not required to
purchase Workers' Compensation Insurance, the lessee, licensee, or permittee shall
have a copy of the State's Nonelection of Workers' Compensation or Employers' Liability
Coverage form on file with the Iowa Workers' Compensation Insurance Commissioner, as
required by Iowa Code Section 87.22. Completed form must be attached.
Page 2 of 4 Schedule A Lessees of City Property; Right of Way Licensees or Permittees April 2021
City of Dubuque Insurance Requirements for Lessees of City Property and Right of Way
Licensees or Permittees
C)
D)
E)
INSURANCE SCHEDULE A (Continued)
POLLUTION LIABILITY
Coverage required: _ Yes X No
Pollution liability coverage shall be required if the lessee, contracting party, or permittee
has any pollution exposure for abatement of hazardous or contaminated materials
including, but not limited to, petroleum products, the removal of lead, asbestos, or PCBs.
Pollution product and completed operations coverage shall also be covered.
Each occurrence
Policy Aggregate
$2,000,000
$4,000,000
1) Policy to include job site and transportation coverage.
2) Include additional insured for:
The City of Dubuque, including all its elected and appointed officials, all its
employees and volunteers, all its boards, commissions and/or authorities and
their board members, employees and volunteers. Use ISO form CG 2010.
(Ongoing operations) or its equivalent and CG2037(completed operations) or
its equivalent.
3) Include Preservation of Governmental Immunities Endorsement.
4) Provide evidence of coverage for 5 years after completion of project.
PROPERTY INSURANCE REQUIRED BY LEASE, LICENSE, OR PERMIT
X Yes No
Evidence of property coverage provided: X Yes
Include the City of Dubuque as Lender Loss Payable.
RIGHT-OF-WAY WORK ONLY:
UMBRELLA/EXCESS
X Yes No
$1,000,000
The General Liability, Automobile Liability and Workers Compensation insurance
requirements may be satisfied with a combination of primary and Umbrella or Excess
Liability Insurance. If the Umbrella or Excess Insurance policy does not follow the form of
the primary policies, it shall include the same endorsements as required of the primary
policies including Waiver of Subrogation AND Primary and Non-contributory in favor of
the City.
F) FLOOD INSURANCE
Yes X No
If Required Coverage
Page 3 of 4 Schedule A Lessees of City Property; Right of Way Licensees or Permittees April 2021
City of Dubuque Insurance Requirements for Lessees of City Property and Right of Way
Licensees or Permittees
Please be aware that naming the City of Dubuque as an additional insured as is required by this
Insurance Schedule may result in the waiver of the City's governmental immunities provided in Iowa Code
sec. 670.4. If you would like to preserve those immunities, please use this endorsement or an equivalent
form.
PRESERVATION OF GOVERNMENTAL IMMUNITIES ENDORSEMENT
1. Nonwaiver of Governmental Immunity. The insurer expressly agrees and states that the purchase
of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any
of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa
Section 670.4 as it is now exists and as it may be amended from time to time.
2. Claims Coverage. The insurer further agrees that this policy of insurance shall cover only those
claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it
now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa
Section 670.4 shall be covered by the terms and conditions of this insurance policy.
3. Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible for asserting
any defense of governmental immunity, and may do so at any time and shall do so upon the timely written
request of the insurer.
4. Non -Denial of Coverage. The insurer shall not deny coverage under this policy and the insurer
shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for
reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of
the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa.
No Other Change in Policy. The above preservation of governmental immunities shall not otherwise
change or alter the coverage available under the policy.
SPECIMEN
(DEPARTMENT MANAGER: FILL IN ALL BLANKS AND CHECK BOXES)
Page 4 of 4 Schedule A Lessees of City Property; Right of Way Licensees or Permittees April 2021