Approving a Development Agreement with Scherr Real Estate, L.L.C., and Dubuque Screw Products, Inc. for the Issuance of Urban Renewal Tax Increment Revenue Grant Obligations Pursuant to the Development Agreement_HearingCity of Dubuque
City Council Meeting
Public Hearings # 3.
Copyrighted
April 18, 2022
ITEM TITLE: Resolution Approving a Development Agreement by and among the City
of Dubuque, Iowa, Scherr Real Estate, L.L.C., and Dubuque Screw
Products, Inc. for the Issuance of Urban Renewal Tax Increment
Revenue Grant Obligations Pursuant to the Development Agreement
SUMMARY: Proof of publication on notice of public hearing to consider City Council
adoption of a resolution approving a Development Agreement by and
among the City of Dubuque, Iowa, Scherr Real Estate, L.L.C., and
Dubuque Screw Products, Inc. providing for the issuance of Urban
Renewal Tax Increment Revenue Grant Obligations, and City Manager
recommending approval.
RESOLUTION Approving a Development Agreement by and among the
City of Dubuque, Scherr Real Estate, L.L.C., and Dubuque Screw
Products, Inc. Including the issuance of urban tax increment revenue
obligations to Dubuque Screw Products, Inc.
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
Development Agreement Supporting Documentation
THE CITY OF
Dubuque
DUB TEE1.
All -America City
Masterpiece on the Mississippi
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution Approving a Development Agreement by and among the City
of Dubuque, Iowa, Scherr Real Estate, L.L.C., and Dubuque Screw
Products, Inc. for the Issuance of Urban Renewal Tax Increment Revenue
Grant Obligations Pursuant to the Development Agreement
DATE: April 13, 2022
Economic Development Director Jill Connors is recommending City Council adopt a
resolution approving a Development Agreement by and among the City of Dubuque,
Iowa, Scherr Real Estate, L.L.C., and Dubuque Screw Products, Inc. providing for the
issuance of Urban Renewal Tax Increment Revenue Grant Obligations.
Established in Dubuque in 1946 as a screw machine shop, Dubuque Screw Products,
Inc. prides itself on a commitment to customer service, and forward -thinking
investments into the company, its customers, and the screw industry itself.
Throughout its 76-year history, Dubuque Screw Products has been at the forefront of
machining industry technology. In the late 1970s and early 1980s, Dubuque Screw
Products began utilizing computerized numerical controlled (CNC) machines to produce
higher quantity and quality parts at production prices to better service its customer base.
Today, Dubuque Screw products, Inc. is fully equipped with more than 24 CNC
machines operated by true craftsman who take pride in their work. Industries serviced
by Dubuque Screw Products range from agriculture and construction & forestry to
electrical construction and firearms. With an eye toward continuous improvement,
Dubuque Screw is seeking an expansion of their operations to better serve their client
base.
The key elements of the Development Agreement include the following:
1. The Developer must construct a building of not less than 28,000 square feet
with a cost of approximately $2,500,000.
2. Dubuque Screw Products, Inc. must retain its current 54 full-time equivalent
positions at the current facility and create 10 new full-time equivalent jobs at
the newly expanded facility by January 1, 2024. The 64 jobs must be retained
through the term of the Development Agreement.
3. Dubuque Screw Products, Inc. will receive 10 years of tax increment financing
incentives in the form of semi-annual rebates. These incentives are calculated
in relation to the number of jobs committed in the Development Agreement.
Tax increment financing incentives are not estimated to exceed $327,978.
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 Economic Development
Department
THE CITY OF ' 50 West 131h Street
All•AmerieaNy Dubuque, Iowa 52001-4864
DUB &http://www.cityofdubuque.org
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1111.
Office (563) 589-4393
TTY (563) 690-6678
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2007*2012.2013
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Resolution Approving a Development Agreement by and among the
City of Dubuque, Iowa, Scherr Real Estate, L.L.C., and Dubuque
Screw Products, Inc. for the Issuance of Urban Renewal Tax
Increment Revenue Grant Obligations Pursuant to the Development
Agreement
DATE: April 12, 2022
INTRODUCTION
This memorandum presents for City Council consideration and action the attached
resolution approving a Development Agreement by and among the City of Dubuque,
Iowa, Scherr Real Estate, LLC, and Dubuque Screw Products, Inc. providing for the
issuance of Urban Renewal Tax Increment Revenue Grant Obligations.
BACKGROUND
Established in Dubuque in 1946 as a screw machine shop, Dubuque Screw Products,
Inc. prides itself on a commitment to customer service, and forward -thinking
investments into the company, its customers, and the screw industry itself.
Throughout its 76-year history, Dubuque Screw Products has been at the forefront of
machining industry technology. In the late 1970s and early 1980s, Dubuque Screw
Products began utilizing computerized numerical controlled (CNC) machines to produce
higher quantity and quality parts at production prices to better service its customer base.
Today, Dubuque Screw products, Inc. is fully equipped with more than 24 CNC
machines operated by true craftsman who take pride in their work. Industries serviced
by Dubuque Screw Products range from agriculture and construction & forestry to
electrical construction and firearms. With an eye toward continuous improvement,
Dubuque Screw is seeking an expansion of their operations to better serve their client
base.
DISCUSSION
Scherr Real Estate, L.L.C., as property owner and Developer, intends to construct a
28,000 square foot expansion to their existing facility located in the Dubuque Industrial
Center. The expansion, estimated to cost approximately $2.5 Million between building
construction and machinery, is required to satisfy company growth in existing product
lines which will be sold to new and existing customers. The project is anticipated to
begin in the Summer of 2022.
In addition to the physical improvements, Dubuque Screw Products, Inc. has committed
to the creation of ten (10) full time equivalent jobs.
The key elements of the Development Agreement include the following:
1. The Developer must construct a building of not less than 28,000 square feet
with a cost of approximately $2,500,000.
2. Dubuque Screw Products, Inc. must retain its current 54 full-time equivalent
positions at the current facility and create 10 new full-time equivalent jobs at
the newly expanded facility by January 1, 2024. The 64 jobs must be retained
through the term of the Development Agreement.
3. Dubuque Screw Products, Inc. will receive 10 years of tax increment financing
incentives in the form of semi-annual rebates. These incentives are calculated
in relation to the number of jobs committed in the Development Agreement.
Tax increment financing incentives are not estimated to exceed $327,978.
Approval of the Development Agreement and issuance of Urban Renewal Tax
Increment Revenue Grant Obligations will further the City Council's goal of creating a
robust local economy.
RECOMMENDATION/ ACTION STEP
I recommend the City Council adopt the attached resolution approving a Development
Agreement by and among the City of Dubuque, Iowa, Scherr Real Estate, L.L.C., and
Dubuque Screw Products, Inc. providing for the issuance of Urban Renewal Tax
Increment Revenue Grant Obligations.
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. 140-22
APPROVING A DEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF
DUBUQUE, SCHERR REAL ESTATE, L.L.C., AND DUBUQUE SCREW PRODUCTS,
INC. INCLUDING THE ISSUANCE OF URBAN TAX INCREMENT REVENUE
OBLIGATIONS TO DUBUQUE SCREW PRODUCTS, INC.
WHEREAS, Scherr Real Estate, L.L.C. is the owner of the property legally
described as follows:
Lot One (1) of Lot (5) of Dubuque Industrial Center West 5th Addition in the City of
Dubuque, Iowa, according to the recorded plat thereof, subject to easements of record,
locally known as 6500 Chavenelle Drive Dubuque, Iowa (the Property); and
WHEREAS, the City Council, by Resolution No. 110-22, dated April 4, 2022,
declared its intent to enter into a Development Agreement by and among the City of
Dubuque, Scherr Real Estate, L.L.C., and Dubuque Screw Products, Inc., including the
issuance of Urban Renewal Tax Increment Revenue Obligations to Dubuque Screw
Products, Inc.; and
WHEREAS, pursuant to published notice, a public hearing was held on the
proposed Development Agreement on April 18, 2022 at 6:30 p.m.in the Historic Federal
Building, 350 W 6th St.; and
WHEREAS, it is the determination of the City Council that approval of the
Development Agreement for redevelopment of the Property by Scherr Real Estate, L.L.C.,
according to the terms and conditions set out in the Development Agreement, 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 Development Agreement by and among the City of
Dubuque, Scherr Real Estate, L.L.C., and Dubuque Screw Products, Inc., a copy of which
is attached hereto, including the issuance of Urban Renewal Tax Increment Revenue
Obligations, is hereby approved.
Section 2. That the Mayor is hereby authorized and directed to execute the
Development Agreement on behalf of the City of Dubuque and the City Clerk is authorized
and directed to attest to his signature.
Section 3. That the City Manager is authorized to take such actions as are
necessary to comply with the terms of the Development Agreement as herein approved.
Passed, approved and adopted this 18'h day of April, 2022.
Attest:
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Adrienne N. Breitfelder, City Clerk
Brad M. Cav agh, Mayor
2
DEVELOPMENT AGREEMENT
BY AND AMONG
THE CITY OF DUBUQUE, IOWA,
SCHERR REAL ESTATE, L.L.C. AND
DUBUQUE SCREW PRODUCTS, INC.
ThisAgreement, dated for reference purposes the � day of
d�^a'il.ti 2022, by and among the City of Dubuque, Iowa, a municipality
(City), established pursuant to the Iowa Code and acting under authorization of Iowa
Code Chapter 403, as amended (Urban Renewal Act), Scherr Real Estate, L.L.C., an
Iowa limited liability company, or its successor in interest, with its principal place of
business at Dubuque, Iowa (Developer), and Dubuque Screw Products, Inc., an Iowa
corporation with its principal place of business in Dubuque, Iowa (Employer).
WITNESSETH:
WHEREAS, in furtherance of the objectives of the Urban Renewal Act, City has
undertaken an Urban Renewal Project as described herein to advance the community's
ongoing economic development efforts; and
WHEREAS, the Project is located within the Dubuque Industrial Center
Economic Development District (the Project Area); and
WHEREAS, as of the date of this Agreement there has been prepared and
approved by City an Urban Renewal Plan for the Project Area consisting of the Urban
Renewal Plan for the Dubuque Industrial Center Economic Development District,
approved by the City Council of City on May 2, 1988, and as subsequently amended
through and including the date hereof (the Urban Renewal Plan) attached hereto as
Exhibit A; and
WHEREAS, a copy of the Urban Renewal Plan, as constituted on the date of this
Agreement, is on file with the County Auditor and the City of Dubuque City Clerk; and
WHEREAS, Developer and Employer have determined that they require an
addition to the industrial building/facility currently owned by Developer and occupied by
Employer to maintain and expand their operations and employment in the Project Area
(the Facility); and
WHEREAS, Developer and Employer have entered into an agreement for the
construction of an addition to the Facility; and
03022022balrev1552pm
WHEREAS, Developer is the owner of the following described real estate:
Lot One (1) of Lot Five (5) of Dubuque Industrial Center West 5'1 Addition in the
City of Dubuque, Iowa, according to the recorded plat thereof, subject to
easements of record, locally known as 6500 Chavenelle Drive Dubuque, Iowa
(the Property)
with all easements, tenements, hereditaments, and appurtenances belonging thereto so
that Developer may develop the Property, located in the Project Area, for the
construction, use, and occupancy of the Facility in accordance with the uses specified in
the Urban Renewal Plan and Developer agrees to comply with any amendments to the
Urban Renewal Plan, in accordance with this Agreement; and
WHEREAS, Employer desires to join in this Agreement and assume the rights
and responsibilities provided herein; and
WHEREAS, Developer will undertake the construction of an addition to the
building located on the Property; and
WHEREAS, Employer will lease the existing building and the addition to be built
to the existing building from Developer (the Lease) and employ Employees as provided
herein; and
WHEREAS, Developer or Employer will make a capital investment in the
additional building improvements, equipment, furniture and fixtures in the Facility, all of
the foregoing referred to herein as the Project; and
WHEREAS, City believes that the Project and the further development of the
Property pursuant to this Agreement, and the fulfillment generally of this Agreement, are
in the vital and best interests of City and in accord with the public purposes and
provisions of the applicable federal, state and local laws and the requirements under
which the Project has been undertaken and is being assisted.
NOW, THEREFORE, in consideration of the premises and the mutual obligations
of the parties hereto, each of them does hereby covenant and agree with the other as
follows:
SECTION 1. REPRESENTATIONS AND WARRANTIES
1.1 Representations and Warranties of City. In order to induce Developer and
Employer to enter into this Agreement, City hereby represents and warrants to
Developer and Employer that to the best of City's knowledge:
(1) City has duly obtained all necessary approvals and consents for its
execution, delivery, and performance of this Agreement and that it has full power
and authority to execute, deliver and perform its obligations under this
Agreement. City's attorney shall issue a legal opinion to Developer at time of
closing confirming the representation contained herein, in the form attached
hereto as Exhibit B.
(2) City shall exercise its best efforts to cooperate with Developer in the
development process.
(3) City shall exercise its best efforts to resolve any disputes arising during
the development process in a reasonable and prompt fashion.
(4) The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the
terms and conditions of this Agreement are not prevented by, limited by, in
conflict with, or result in a violation or breach of, the terms, conditions or
provisions of the charter of City, any evidence of indebtedness, agreement or
instrument of whatever nature to which City is now a party or by which it or its
property is bound, or constitute a default under any of the foregoing.
(5) There are no actions, suits or proceedings pending or threatened against
or affecting City in any court or before any arbitrator or before or by any
governmental body in which there is a reasonable possibility of an adverse
decision which could materially adversely affect the financial position or
operations of City or which affects the validity of the Agreement or City's ability to
perform its obligations under this Agreement.
(6) No ordinance or hearing is now before any local governmental body that
either contemplates or authorizes any public improvements or special tax levies,
the cost of which may be assessed against the Property. To the best of City's
knowledge, there are no plans or efforts by any government agency to widen,
modify, or re -align any street or highway providing access to the Property and
there are no pending or intended public improvements or special assessments
affecting the Property which will result in any charge or lien be levied or assessed
against the Property.
(7) The representations and warranties contained in this article shall be
correct in all respects on and as of the Closing Date with the same force and
effect as if such representations and warranties had been made on and as of the
Closing Date.
1.2 Representations and Warranties of Developer and Employer. Developer and
Employer each make the following individual representations and warranties with
respect to their own company (without making any warranties with respect to the other):
(1) Developer and Employer are duly organized and validly existing or
authorized under the laws of the State of Iowa and have all requisite power and
authority to own and operate their properties, to carry on their respective
business as now conducted and as presently proposed to be conducted, and to
enter into and perform their obligations under the Agreement.
(2) This Agreement has been duly authorized, executed and delivered by
Developer and Employer, and assuming due authorization, execution and
delivery by City, is in full force and effect and is a valid and legally binding
instrument of Developer and Employer enforceable in accordance with its terms,
except as the same may be limited by bankruptcy, insolvency, reorganization or
other laws relating to or affecting creditors' rights generally. Developer's counsel
and Employer's counsel shall issue legal opinions to the City, at time of closing,
confirming the representations contained herein, in the form attached hereto as
Exhibit C and Exhibit D.
(3) The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the
terms and conditions of this Agreement are not prevented by, limited by, in
conflict with, or result in a violation or breach of, the terms, conditions or
provisions of the articles of incorporation or the bylaws of Developer or Employer
or any contractual restriction, evidence of indebtedness, agreement or instrument
of whatever nature to which Developer or Employer is now a party or by which it
or its property is bound, or constitute a default under any of the foregoing.
(4) There are no actions, suits or proceedings pending or threatened against
or affecting Developer or Employer in any court or before any arbitrator or before
or by any governmental body in which there is a reasonable possibility of an
adverse decision which could materially adversely affect the business, financial
position or result of operations of Developer or Employer or which affects the
validity of the Agreement or Developer's or Employer's ability to perform its
obligations under this Agreement.
(5) Developer and Employer will perform their obligations under this
Agreement in accordance with the material terms of this Agreement, the Urban
Renewal Plan and all local, State and federal laws and regulations.
(6) Developer will use good faith efforts to obtain, or cause to be obtained, in
a timely manner, all material requirements of all applicable local, state, and
federal laws and regulations which must be obtained or met.
(7) Developer has commitments for permanent financing for the Development
Project and all of their respective obligations under this Agreement in an amount
sufficient, together with equity commitments, to successfully complete the
requirements of this Agreement and shall provide evidence thereof to City prior to
the Closing Date.
1.3 Conditions to Closing. The closing of the transaction (the Closing) contemplated
by this Agreement and all the obligations of Developer and Employer under this
Agreement are subject to fulfillment, on or before the Closing Date, of the following
conditions:
(1) The representations and warranties made by City in Section 1.1 shall be
correct as of the Closing Date with the same force and effect as if such
representations were made at such time. At the Closing, City shall deliver a
certificate in the form of Exhibit E.
(2) Developer having obtained any and all necessary governmental
approvals, including without limitations approval of zoning, subdivision, or platting
which might be necessary or desirable in connection with the development of the
Development Property. Any conditions imposed as a part of the zoning, platting
or subdivision must be satisfactory to Developer, in its sole opinion. City shall
cooperate with Developer in attempting to obtain any such approvals and shall
execute any documents necessary for this purpose, provided that City shall bear
no expense in connection therewith. In connection therewith, City agrees (a) to
review all of Developer's plans and specifications for the Project and to either
reject or approve the same in a prompt and timely fashion; (b) to issue a written
notification to Developer, following City's approval of same, indicating that City
has approved such plans and specifications, and that the same are in
compliance with the Urban Renewal Plan and Developer agrees to comply with
any amendments to the Urban Renewal Plan, this Agreement and any other
applicable City or affiliated agency requirements, with the understanding that
Developer and its lenders shall have the right to rely upon the same in
proceeding with the project; (c) to identify in writing within ten (10) working days
of submission of said plans and specifications, any and all permits, approvals
and consents that are legally required for the acquisition of the Property by
Developer, and the construction, use and occupancy of the project with the intent
and understanding that Developer and its lenders and attorneys will rely upon
same in establishing their agreement and time frames for construction, use and
occupancy, lending on the project and issuing legal opinions in connection
therewith; and (d) to cooperate fully with Developer to streamline and facilitate
the obtaining of such permits, approvals and consents.
(3) Developer, Employer, and City shall be in material compliance with all the
terms and provisions of this Agreement.
(4) Developer shall have furnished City with evidence, in a form satisfactory to
City (such as a letter of commitment from a bank or other lending institution), that
Developer has firm financial commitments in an amount sufficient, together with
equity commitments, to complete the Minimum Improvements (as defined herein)
in conformance with the Construction Plans (as defined herein), or City shall
have received such other evidence of such parry's financial ability as in the
reasonable judgment of City is required.
(5) Employer shall have furnished City with evidence in a form as required by
Section 5.2 and satisfactory to City of Employer's fulltime equivalent employees
(FTE) at 6500 Chavenelle Road in the City of Dubuque, Iowa, as of January 1,
2022.
(6) Receipt of an opinion of counsel to Developer in the form attached hereto
as Exhibit C.
(7) Receipt of an opinion of counsel to Employer in the form attached hereto
as Exhibit D.
(8) Developer and Employer shall have the right to terminate this Agreement
at any time prior to the consummation of the closing on the Closing Date if
Developer or Employer determines in its sole discretion that conditions
necessary for the successful completion of the Project contemplated herein have
not been satisfied to the full satisfaction of such party in such party's sole and
unfettered discretion. Upon the giving of notice of termination by such
terminating party to the other parties to this Agreement, this Agreement shall be
deemed null and void.
(9) Developer and Employer shall have provided City with a copy of the
executed Lease.
1.4 Closinq. The closing shall take place on the Closing Date which shall be the list
day of May, 2022, or such other date as the parties shall agree in writing but in no event
shall the Closing Date be later than the 31st day of May, 2022, Consummation of the
closing shall be deemed an agreement of the parties to this Agreement that the
conditions of closing shall have been satisfied or waived.
1.5 City's Obligations at Closing. At or prior to Closing Date, City shall deliver to
Developer such other documents as may be required by this Agreement, all in a form
satisfactory to Developer.
SECTION 2. DEVELOPMENT ACTIVITIES
2.1 Required Minimum Improvements. City acknowledges that the Facility
Developer is adding onto on the Property is a manufacturing building/facility. Developer
agrees to construct the addition to the building and Employer agrees to add certain
internal systems thereto, including all interior improvements to the building (the
Minimum Improvements); all as more particularly depicted and described on the plans
and specifications to be delivered to and approved by City as contemplated in this
Agreement. Developer hereby agrees the addition being built onto the Facility will be
approximately twenty-eight thousand (28,000) square feet of floor space along with the
necessary site work, machinery and equipment at an estimated cost of approximately
Two Million Five Hundred Thousand Dollars ($2,500,000).
2.2 Plans for Construction of Minimum Improvements. Developer shall provide City
with an approved Site Plan, at City's sole discretion. The parties agree that this
Development Agreement shall be amended to include such Site Plan. Plans and
specifications with respect to the development of the Property and the construction of
the Minimum Improvements thereon (the Construction Plans) shall be in conformity with
the Urban Renewal Plan, this Agreement, and all applicable state and local laws and
regulations, including but not limited to the Amended and Restated Declaration of
Covenants, Conditions, Restrictions, Reservations, Easements, Liens and Charges,
recorded as Instrument No. 2014-00001147, records of Dubuque County, Iowa.
Developer shall submit to City, for approval by City, plans, drawings, specifications, and
related documents with respect to the improvements to be constructed by Developer on
the Property. All work with respect to the Minimum Improvements shall be in substantial
conformity with the Construction Plans approved by City.
2.3 Timing of Improvements. Developer hereby agrees that construction of the
Minimum Improvements on the Property shall be commenced on or before June 1, 2022
and shall be substantially completed by December 31, 2023. The time frame for the
performance of these obligations shall be suspended due to unavoidable delays,
meaning delays outside the control of the party claiming its occurrence in good faith,
which are the direct result of strikes, other labor troubles, shut down due to COVID-19,
unusual shortages of materials or labor, unusually severe or prolonged bad weather,
acts of God, fire or other casualty to the Minimum Improvements, litigation commenced
by third parties which, by injunction or other similar judicial action or by the exercise of
reasonable discretion directly results in delays, or acts of any federal, state or local
government which directly result in extraordinary delays. The time for performance of
such obligations shall be extended only for the period of such delay.
2.4 Certificate of Completion. Promptly following the request of Developer upon
completion of the Minimum Improvements, the City Manager shall furnish Developer
with an appropriate instrument so certifying. Such certification (the Certificate of
Completion) shall be in recordable form and shall be a conclusive determination of the
satisfaction and termination of the agreements and covenants in this Agreement with
respect to the obligations of Developer to construct the Minimum Improvements.
SECTION 3. CITY PARTICIPATION.
3.1 Economic Development Grants.
(1) Employer Economic Development Grants
(a) For and in consideration of Developer's and Employer's obligations
hereunder, and in furtherance of the goals and objectives of the Urban
Renewal Plan for the Project Area and the Urban Renewal Law, City
agrees, subject to Developer and Employer being and remaining in
compliance with the terms of this Agreement, to make twenty (20)
consecutive semi-annual payments (such payments being referred to
collectively as the Employer Economic Development Grants) to Employer,
as follows:
November 1, 2025 May 1, 2026
November 1, 2026
May 1, 2027
November 1, 2027
May 1, 2028
November 1, 2028
May 1, 2029
November 1, 2029
May 1, 2030
November 1, 2030
May 1, 2031
November 1, 2031
May 1, 2032
November 1, 2032
May 1, 2033
November 1, 2033
May 1, 2034
November 1, 2034
May 1, 2035
pursuant to Iowa Code Section 403.9 of the Urban Renewal Law, in
amounts equal to the actual amount of tax increment revenues collected
by City under Iowa Code Section 403.19 (without regard to any averaging
that may otherwise be utilized under Iowa Code Section 403.19 and
excluding any interest that may accrue thereon prior to payment to
Employer) during the preceding six (6) month period in respect of the
Property and Minimum Improvements constructed by Developer (the
Developer Tax Increments). City, Developer, and Employer agree that for
purposes of this Section 3.1(1), the assessed value of the Property as of
January 1, 2021 is $1,512,810. Employer recognizes and agrees that the
Employer Economic Development Grants shall be paid solely and only
from the incremental taxes collected by City in respect to the Property and
Minimum Improvements, which does not include property taxes collected
for the payment of bonds and interest of each taxing district, and taxes for
the regular and voter -approved physical plant and equipment levy,
instructional support levy, and any other portion required to be excluded
by Iowa law, and thus such incremental taxes will not include all amounts
paid by Developer as regular property taxes.
(b) To fund the Employer Economic Development Grants, City shall
certify to the County prior to December 1 of each year, commencing
December 1, 2024, its request for the available Developer Tax Increments
resulting from the assessments imposed by the County as of January 1 of
that year, to be collected by City as taxes are paid during the following
fiscal year and which shall thereafter be disbursed to Employer on
November 1 and May 1 of that fiscal year. (Example: If City so certifies by
December 1, 2024, the Employer Economic Development Grants in
respect thereof would be paid to Employer on November 1, 2025, and
May 1, 2026.)
(c) The Employer Economic Development Grants shall be payable
from and secured solely and only by the Developer Tax Increments paid to
City that, upon receipt, shall be deposited and held in a special account
created for such purpose and designated as the Dubuque Screw TIF
Account of City. City hereby covenants and agrees to maintain its TIF
ordinance in force during the term and to apply the incremental taxes
collected in respect of the Property and Minimum Improvements and
allocated to the Dubuque Screw TIF Account to pay the Employer
Economic Development Grants, as and to the extent set forth in Section
3.1(1) hereof. The Employer Economic Development Grants shall not be
payable in any manner by other tax increments revenues or by general
taxation or from any other City funds. City makes no representation with
respect to the amounts that may be paid to Employer as the Employer
Economic Development Grants in any one year and under no
circumstances shall City in any manner be liable to Employer so long as
City timely applies the Developer Tax Increments actually collected and
held in the Dubuque Screw TIF Account (regardless of the amounts
thereof) to the payment of the Employer Economic Development Grants to
Employer or Developer as and to the extent described in this Section.
(2) City shall be free to use any and all tax increment revenues collected in
respect of other properties within the Project Area, or any available Developer
Tax Increments resulting from the termination of the annual Economic
Development Grants under this Section 3.1 hereof, for any purpose for which
such tax increment revenues may lawfully be used pursuant to the provisions of
the Urban Renewal Law, and City shall have no obligations to Developer with
respect to the use thereof.
(3) All of City's obligations under this Agreement, including but not limited to
City's obligation to pay the Economic Development Grants to Employer or
Developer, shall be subject to City having completed all hearings and other
procedures required to amend the Urban Renewal Plan to describe the Urban
Renewal Project being undertaken in accordance with this Agreement by no later
than December 31. 2022.
3.2 Other than the Economic Development Grants required by Section 3.1, City shall
have no obligation to provide any other funds to Developer.
SECTION 4. NOW APPROPRIATION / LIMITED SOURCE OF FUNDING.
4.1 Non -Appropriation.
(1) Notwithstanding anything in this Agreement to the contrary, the obligation
of City to pay any installment of the Economic Development Grants from the
pledged tax increment revenues shall be an obligation limited to currently
budgeted funds, and not a general obligation or other indebtedness of City or a
pledge of its full faith and credit within the meaning of any constitutional or
statutory debt limitation, and shall be subject in all respects to the right of non -
appropriation by the City Council of City as provided in this Section. City may
exercise its right of non -appropriation as to the amount of the installments to be
paid during any fiscal year during the term of this Agreement without causing a
termination of this Agreement. The right of non -appropriation shall be exercised
only by resolution affirmatively declaring City's election to non -appropriate funds
otherwise required to be paid in the next fiscal year under this Agreement.
(2) In the event the City Council of City elects to not appropriate sufficient
funds in the budget for any future fiscal year for the payment in full of the
installments on the Economic Development Grants due and payable in that future
fiscal year, then City shall have no further obligation to Employer or Developer for
the payment of any installments due in that future fiscal year which cannot be
paid with the funds then appropriated for that purpose.
4.2 The right of non -appropriation reserved to City in this Section is intended by the
parties, and shall be construed at all times, so as to ensure that City's obligation to pay
future installments on the Economic Development Grants shall not constitute a legal
indebtedness of City within the meaning of any applicable constitutional or statutory
debt limitation prior to the adoption of a budget which appropriates funds for the
payment of that installment or amount. In the event that any of the provisions of this
Agreement are determined by a court of competent jurisdiction to create, or result in the
creation of, such a legal indebtedness of City, the enforcement of the said provision
shall be suspended, and the Agreement shall at all times be construed and applied in
such a manner as will preserve the foregoing intent of the parties, and no event of
default shall be deemed to have occurred as a result thereof. If any provision of this
Agreement or the application thereof to any circumstance is so suspended, the
suspension shall not affect other provisions of this Agreement which can be given effect
without the suspended provision, and to this end the provisions of this Agreement are
severable.
SECTION 5. COVENANTS OF EMPLOYER.
5.1 Job Creation and Maintenance. During the term of this Agreement, Employer
shall comply with the following employment -related covenants for the Property:
(1) Employer represents that the number of fulltime equivalent (FTE)
employees employed by Employer at 6500 Chavenelle Road as of January 1,
2022 is Fifty -Four (54). Employer shall create and maintain 10 additional FTE
employees employed by Employer by October 1, 2025 and during the remaining
Term of this Agreement for a total of Sixty -Four (64) FTE employees at 6500
Chavenelle Road and the Facility. FTE employees shall be calculated by adding
fulltime and part-time employees together using 2080 hours per year as a FTE
employee.
(2) For the FTE positions that Employer fails to create and maintain for any
year during the term of this Agreement, the semi-annual Employer Economic
Development Grants for such year under Section 3.1(1) shall be reduced by the
percentage that the number of positions Employer fails to create or maintain as
required by this Section 5.1 bears to the total number of positions required to be
created and maintained (64 FTEs) by this Section 5.1. (For example, if
Developer has 48 FTE employees employed by Employer, the semi-annual
Economic Development Grants to be paid for that year would be reduced by 25%
(48/64 employees) of the Tax Increment Revenues received by City). The
reduction of the semi-annual Economic Development Grants shall be City's sole
remedy for the failure of Developer to meet the job creation requirements of this
subsection 5.1(2).
(3) Employer's job creation and maintenance obligation under Section 5.1(1)
terminates after October 1, 2034.
5.2 Certification. To assist City in monitoring the performance of Employer
hereunder, as of October 1, 2025, and again as of October 1 of each year thereafter
during the term of this Agreement, a duly authorized officer of Employer shall certify to
City in a form acceptable to City (a) the number of FTE positions employed by Employer
at 6500 Chavenelle Road and the Facility, and (b) to the effect that such officer has
reexamined the terms and provisions of this Agreement and that at the date of such
certificate, and during the preceding twelve (12) months, Employer is not or was not in
default in the fulfillment of any of the terms and conditions of this Agreement and that no
Event of Default (or event which, with the lapse of time or the giving of notice, or both,
would become an Event of Default) is occurring or has occurred as of the date of such
certificate or during such period, or if the signer is aware of any such default, event or
Event of Default, said officer shall disclose in such statement the nature thereof, its
period of existence and what action, if any, has been taken or is proposed to be taken
with respect thereto. Such certificate shall be provided not later than October 15, 2025,
and by October 15 of each year thereafter. Employer's certification obligations under
this Section 5.2 terminate following the final certification on October 1, 2034 (due by
October 15, 2034).
5.3 Books and Records. During the term of this Agreement, Developer and
Employer shall keep at all times proper books of record and account in which full, true
and correct entries will be made of all dealings and transactions of or in relation to the
business and affairs of Developer and Employer in accordance with generally accepted
accounting principles consistently applied throughout the period involved, and
Developer and Employer shall provide reasonable protection against loss or damage to
such books of record and account.
5.4 Real Property Taxes. From and after the Closing Date, Developer shall pay or
cause to be paid, when due and before delinquency, all real property taxes and
assessments payable with respect to all and any parts of the Property unless
Developer's obligations have been assumed by another person pursuant to the
provisions of this Agreement.
5.5 No Other Exemptions. During the term of this Agreement, Developer agrees not
to apply for any state or local property tax exemptions which are available with respect
to the 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, including those that arise under Iowa Code Chapters 404 and 427, as
amended.
5.6 Insurance Requirements.
(1) Developer 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 (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 of the Minimum
Improvements. Coverage shall include the "special perils" form.
(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 (and from time to time at the request of City shall furnish proof
of insurance in the form of a certificate of insurance) all risk property insurance
against loss and/or damage to the Minimum Improvements under an insurance
policy written in an amount not less than the full insurable replacement value of
Minimum Improvements. Coverage shall include the "special perils" form.
The term 'replacement value" shall mean the actual replacement cost of
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.
(3) Developer agrees to notify City immediately in the case of damage
exceeding $100,000.00 in amount to, or destruction of, the Minimum
Improvements or any portion thereof resulting from fire or other casualty. The net
proceeds of any such insurance (the Net Proceeds) shall be paid directly to
Developer as its interests may appear, and Developer 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, Developer shall apply the Net Proceeds of any insurance relating
to such damage received by Developer 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). Developer shall complete the
repair, reconstruction and restoration of Minimum Improvements whether or not
the Net Proceeds of insurance received by Developer for such Purposes are
sufficient.
5.7 Preservation of Property. During the term of this Agreement, Developer shall
maintain, preserve and keep, or cause others to maintain, preserve and keep, Minimum
Improvements in good repair and working order, ordinary wear and tear excepted, and
from time to time shall make all necessary repairs, replacements, renewals and
additions. Nothing in this Agreement, however, shall be deemed to alter any
agreements between Developer or any other party including, without limitation, any
agreements between the parties regarding the care and maintenance of the Property.
5.8 Non -Discrimination. 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.
5.9 Conflict of Interest. Developer and Employer agree that 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 insider
information with regard to the project, shall have any interest, direct or indirect, in any
contract or subcontract, or the proceeds thereof, for work to be performed in connection
with the project, or in any activity, or benefit therefrom, which is part of this project at
any time during or after such person's tenure. In connection with this obligation,
Developer and Employer shall have the right to rely upon the representations of any
party with whom it does business and shall not be obligated to perform any further
examination into such party's background.
5.10 Non -Transferability. During the Term of this Agreement, this Agreement may not
be assigned by Developer or Employer nor may any portion of the Property be sold or
otherwise transferred by Developer without the prior written consent of City, which
consent shall not be unreasonably withheld. City has no obligation to consent to any
assignment or sale. Notwithstanding the foregoing or anything else contained herein,
the City understands Developer will be either transferring the Property to another Scherr
family owned entity or Developer will be merged into another entity owned by members
of the Scherr family or one or more trusts. The City specifically agrees that such
transfer or merger of or by Developer into an entity owned by members of the Scherr
family is approved; provided, however, such successor entity shall remain liable for any
obligations of Developer hereunder.
5.11 Restrictions on Use. Developer agrees for itself, and its successors and assigns,
and every successor in interest to the Property or any part thereof that they, and their
respective successors and assigns, shall:
(1) Devote the Property to, and only to and in accordance with, the uses
specified in the Urban Renewal Plan (and City represents and agrees that use of
the Property consistent with its current zoning is in full compliance with the Urban
Renewal Plan and Developer agrees to comply with any amendments to the
Urban Renewal Plan,) (however, Developer shall not have any liability to City to
the extent that a successor in interest shall breach this covenant and City shall
seek enforcement of this covenant directly against the party in breach of same);
and
(2) Not discriminate upon the basis of race, religion, color, sex, sexual
orientation, gender identity, national origin, age or disability in the sale, lease,
rental, use or occupancy of the Property or any improvements erected or to be
erected thereon, or any part thereof (however, Developer shall not have any
liability to City to the extent that a successor in interest shall breach this covenant
and City shall seek enforcement of this covenant directly against the party in
breach of same).
5.12 Release and Indemnification Covenants. Developer and Employer agree to the
following conditions of release and indemnification, except that each company only
agrees to indemnify the Indemnified Parties (defined below), with respect to the
negligence, misrepresentation, or misconduct of their own respective acts. Developer
and Employer do not individually agree to any indemnification from conduct of another
party.
(1) Developer and Employer release City and the governing body members,
officers, agents, servants and employees thereof (hereinafter, for purposes of
this Section, the Indemnified Parties) from and covenants and agrees that the
Indemnified Parties shall not be liable for, and agrees to indemnify, defend and
hold harmless the Indemnified Parties against any loss or damage to property or
any injury to or death of any person occurring at or about or resulting from any
defect in the Minimum Improvements.
(2) Except for any gross negligence, willful misrepresentation or any willful or
wanton misconduct or any unlawful act of the Indemnified Parties, Developer and
Employer agree to protect and defend the Indemnified Parties, now or forever,
and further agrees to hold the Indemnified Parties harmless, from any claim,
demand, suit, action or other proceedings whatsoever by any person or entity
whatsoever arising or purportedly arising from (1) any violation of any agreement
or condition of this Agreement (except with respect to any suit, action, demand or
other proceeding brought by Developer or Employer against City based on an
alleged breach of any representation, warranty or covenant of City under this
Agreement and/or to enforce its rights under this Agreement); or (2) the
acquisition, construction, installation, ownership, and operation of the Minimum
Improvements or (3) the condition of the Property and any hazardous substance
or environmental contamination located in or on the Property, caused and
occurring after Developer takes possession of the Property.
(3) The Indemnified Parties shall not be liable to Developer or Employer for
any damage or injury to the persons or property of Developer or its officers,
agents, servants or employees or any other person who may be on, in or about
the Minimum Improvements due to any act of negligence of any person, other
than any act of negligence on the part of any such Indemnified Party or its
officers, agents, servants or employees.
(4) All covenants, stipulations, promises, agreements and obligations of City
contained herein shall be deemed to be the covenants, stipulations, promises,
agreements and obligations of City, and not of any governing body member,
officer, agent, servant or employee of City in their individual capacity thereof.
(5) The provisions of this Section shall survive the termination of this
Agreement.
5.13 Compliance with Laws. Developer and Employer shall comply with all federal,
state, and local laws, rules and regulations relating to its businesses, other than laws,
rules and regulations for which the failure to comply with or the sanctions and penalties
resulting therefrom, would not have a material adverse effect on the business, property,
operations, financial or otherwise, of Developer or Employer. .
SECTION 6. EVENTS OF DEFAULT AND REMEDIES.
6.1 Events of Default Defined. The following shall be "Events of Default' under this
Agreement and the term "Event of Default' shall mean, whenever it is used in this
Agreement, any one or more of the following events:
(1) Failure by Developer to pay or cause to be paid, before delinquency, all
real property taxes assessed with respect to the Minimum Improvements and the
Property.
(2) Failure by Developer to cause the construction of the Minimum
Improvements to be commenced and completed pursuant to the terms,
conditions and limitations of this Agreement.
(3) Except as provided in Section 5,10, above, which transfers are specifically
allowed, transfer of any interest by Developer in any portion of the Property or
the Minimum Improvements in violation of the provisions of this Agreement.
(4) Failure by Developer or Employer to substantially observe or perform any
other material covenant, condition, obligation or agreement on its part to be
observed or performed under this Agreement.
6.2 Remedies on Default by Developer. Whenever any Event of Default referred to
in Section 6.1 of this Agreement 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
Developer (and the holder of any mortgage encumbering any interest in the Property of
which City has been notified of in writing) of the Event of Default, but only if the Event of
Default has not been cured within sixty (60) days following such notice, or if the Event of
Default cannot be cured within sixty (60) days and the Developer 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 until it receives
assurances from the Developer, deemed adequate by City, that the Developer
will cure its default and continue its performance under this Agreement;
(2) Until the Closing Date, City may cancel and rescind this Agreement;
(3) City may withhold the Certificate of Completion; or
(4) City may take any action, including legal, equitable or administrative
action, which may appear necessary or desirable to collect any payments due
under this Agreement or to enforce performance and observance of any
obligation, agreement, or covenant under this Agreement.
6.3 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.
6.4 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.
6.5 Agreement to Pay Attorneys' Fees and Expenses. If any action at law or in
equity, including an action for declaratory relief or arbitration, is brought to enforce or
interpret the provisions of this Agreement, the prevailing party shall be entitled to
recover reasonable attorneys' fees and costs of litigation from the other party. Such
fees and costs of litigation may be set by the court in the trial of such action or by the
arbitrator, as the case may be, or may be enforced in a separate action brought for that
purpose. Such fees and costs of litigation shall be in addition to any other relief that
may be awarded.
6.6 Remedies on Default by City. If City defaults in the performance of this
Agreement, Developer or Employer may take any action, including legal, equitable or
administrative action that may appear necessary or desirable to collect any payments
due under this Agreement, to recover expenses of Developer or Employer, or to enforce
performance and observance of any obligation, agreement, or covenant of City under
this Agreement. Developer or Employer may suspend performance under this
Agreement until it receives assurances from City, deemed adequate by Developer or
Employer, that City will cure its default and continue its performance under this
Agreement.
SECTION 7. GENERAL TERMS AND PROVISIONS.
7.1 Notices and Demands. Whenever this Agreement requires or permits any notice
or written request by one party to another, it shall be deemed to have been properly
given if and when delivered in person or three (3) business days after having been
deposited in any U.S. Postal Service and sent by registered or certified mail, postage
prepaid, addressed as follows:
(1) If to Developer:
Scherr Real Estate, L.L.C.
6500 Chavenelle
Dubuque, IA 52002
Phone: (563) 583-2770
Fax: (563) 583-1934
(2) If to Employer:
Dubuque Screw Products, Inc.
6500 Chavenelle
Dubuque, IA 52002
Phone: (563) 583-2770
Fax: (563) 583-1934
With copy to:
O'Connor & Thomas Law Firm, P.C.
Attn: Peter Arling
1000 Main Street
Dubuque, IA 52001
Phone: (563) 557-8400
(3) If to City:
City Manager
50 W. 13th Street
Dubuque, Iowa 52001
Phone: (563) 589-4110
Fax: (563) 589-4149
With copy to:
City Attorney
City Hall
50 W. 13th Street
Dubuque, Iowa 52001
or at such other address with respect to any party as that party may, from time to time
designate in writing and forward to the other as provided in this Section.
7.2 Binding Effect. This Agreement shall be binding upon and shall inure to the
benefit of City and Developer and Employer and their respective successors and
assigns.
7.3 Force Maieure. A party shall be excused from its obligations under this
Agreement if and to the extent and during such time as the party is prevented, impeded,
or hindered, unable to perform its obligations or is delayed in doing so due to events or
conditions outside of the party's reasonable control and after the party has taken
reasonable steps to avoid or mitigate such event or its consequences (each a "Force
Majeure Event") including, without limitation in any way, as the result of any acts of God,
war, fire, or other casualty, riot, civil unrest, extreme weather conditions, terrorism,
strikes and/or labor disputes, pandemic, epidemic, quarantines, government stay-at-
home orders, municipal and other government orders, or other matter beyond the
control of such party. Upon the occurrence of a Force Majeure Event, the party
incurring such Force Majeure Event will promptly give notice to the other party
Identifying the Force Majeure Event, explaining how it impacts performance and the
estimated duration, identifying the relief requested, agreeing to limit damages to the
other party and to immediately resume performance upon termination of the Force
Majeure Event, and agreeing to supplement the notice as more Information becomes
available, and thereafter the parties shall meet and confer in good faith in order to
identify a cure of the condition affecting its performance as expeditiously as possible.
No obligation to make a payment required by this Agreement is excused by a Force
Majeure Event. The nonperforming party shall not be entitled to any damages or
additional payments of any kind for any such delay.
7.4 Termination Date. This Agreement and the rights and obligations of the parties
hereunder shall terminate on June 1, 2035 (the Termination Date).
7.5 Execution By Facsimile. The parties agree that this Agreement may be
transmitted among them by email or facsimile machine. The parties intend that the
emailed or faxed signatures constitute original signatures and that an emailed or faxed
Agreement containing the signatures (original, emailed or faxed) of all the parties is
binding on the parties.
7.6 Memorandum of Development Agreement. City shall promptly record a
Memorandum of Development Agreement in the form attached hereto as Exhibit G in
the office of the Recorder of Dubuque County, Iowa. Developer shall pay the costs for
so recording.
IN WITNESS WHEREOF, City has caused this Agreement to be duly executed in
its name and behalf by its Mayor and attested to by its City Clerk and Developer and
Employer has caused this Agreement to be duly executed.
CITY OF DUBUQUE, IOWA SCHERR REAL ESTATE, L.L.C.
(DEVELOPER)
Brad M. Cae6a6h, Mayor Michael R. Scherr, Manager
Attest:
By:a&t 7 / &Pk
Adrienne N. Breitfelder, City Clerk
DUBUQUE SCREW PRODUCTS,
INC,
(EMPLOYER)
Matt Scherr, President
LIST OF EXHIBITS
Exhibit A
Urban Renewal Plan
Exhibit B
Opinion of Counsel to City
Exhibit C
Opinion of Counsel to Developer
Exhibit D
Opinion of Counsel to Employer
Exhibit E
City Certificate
Exhibit F
Certificate of Completion
Exhibit G
Memorandum of Development Agreement
EXHIBIT A
URBAN RENEWAL PLAN
(on file in City Clerk's office, 50 W. 13tn Street, Dubuque, IA 52001)
EXHIBIT B
OPINION OF COUNSEL TO CITY
Barry A. Liudahl, Esq.
Senior Counsel
Suite 330, Harbor View Place THE CITY Or,
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300 Main Street � �../ �.J E
Dubuque, Iowa 52001-6944
(563) 5 83-4 t 13 office
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63)583a040 tix Masterpiece on the Allississip 1t
balcso(3tiTy'ntihd)uquc. m'N
(DATE)
RE:
Dear
DDu�ubuq.uee.
AI4A�ipipG�11
2W i.2013.2i113
2017*201s
I have acted as counsel for the City of Dubuque, Iowa, in connection with the execution
and delivery of a certain Development Agreement by and among Scharr Real Estate,
L.L.C. (Developer), Dubuque Screw Products, Inc. (Employer) and the City of Dubuque,
Iowa (City) dated for reference purposes the _ day of 20_.
The City has duly obtained all necessary approvals and consents for its execution,
delivery and performance of this Agreement and has full power and authority to
execute, deliver and perform its obligations under this Agreement, and to the best of my
knowledge, the representations of the City Manager in his letter dated the _ day of
20, are correct.
Very sincerely,
BarryA. Lindahl, Esq.
Senior Counsel
BAL:JLM
EXHIBIT C
OPINION OF DEVELOPER'S COUNSEL
Mayor and City Councilmembers
City Hall
131 and Central Avenue
Dubuque ]A 52001
Re: Development Agreement By and Among the City of Dubuque, Iowa, Scherr Real
Estate, L.L.C, and Dubuque Screw Products, Inc.
Dear Mayor and City Councilmembers:
We have acted as counsel for Scherr Real Estate, L.L.C., (Developer) in
connection with the execution and delivery of a certain Development Agreement
(Development Agreement) between Developer and the City of Dubuque, Iowa (City)
dated for reference purposes the _ day of 2022.
We have examined the original certified copy, or copies otherwise identified to
our satisfaction as being true copies, of the Development Agreement and such other
documents and records as we have deemed relevant and necessary as a basis for the
opinions set forth herein.
Based on the pertinent law, the foregoing examination and such other inquiries
as we have deemed appropriate, we are of the opinion that:
1. Developer is an Iowa limited liability company with its principal place of
business at Dubuque, Iowa and has full power and authority to execute, deliver and
perform in full Development Agreement. The Development Agreement has been duly
and validly authorized, executed and delivered by Developer and, assuming due
authorization, execution and delivery by City, is in full force and effect and is valid and
legally binding instrument of Developer enforceable in accordance with its terms, except
as the same may be limited by bankruptcy, insolvency, reorganization or other laws
relating to or affecting creditors' rights generally.
2. The execution, delivery and performance by Developer of the
Development Agreement and the carrying out of the terms thereof, will not result in
violation of any provision of, or in default under, the articles of incorporation and bylaws
of Developer, any indenture, mortgage, deed of trust, indebtedness, agreement,
judgment, decree, order, statute, rule, regulation or restriction to which Developer is a
party or by which Developer's property is bound or subject.
3. To the best of our knowledge, there are no actions, suits or proceedings
pending or threatened against or affecting Developer in any court or before any
arbitrator or before or by any governmental body in which there is a reasonable
possibility of an adverse decision which could materially adversely affect the business
(present or prospective), financial position or results of operations of Developer or which
in any manner raises any questions affecting the validity of the Agreement or the
Developer's ability to perform Developer's obligations thereunder.
We have examined such documents and certificates of public officials and
officers of the Developer as we have deemed necessary for the purposes of this
opinion. As to the existence of facts which are material to this opinion, we have relied
upon certificates of public officials, statements by officers and resolutions of the
Members of the Developer. In rendering our opinion, we have assumed (i) the legal
capacity of all natural persons and the capacity and corporate power of all parties to the
documents examined by us other than the Developer, (ii) the due authorization,
execution and delivery of each document examined by us, by all parties to such
documents other than the Developer, (iii) the genuineness of all signatures other than
the signatures of the representatives of the Developer, (iv) the authenticity of all
documents submitted to us as originals; (v) the conformity to original documents of all
documents submitted to us as copies; and (vi) the City has no knowledge, direct or
through their counsel, which would render any of the representations set forth herein
inaccurate or incorrect. We have not made any independent investigation to verify any
assumptions made herein, and have not undertaken any factual investigation into the
business, properties, agreements or litigation of the Developer for the purpose of
rendering the opinions expressed herein. There may exist matters of a factual nature
which could have a bearing on our opinions expressed herein, with respect to which we
have not been consulted or are otherwise unaware. Where used herein, the language
"to the best of our knowledge" or language of similar nature means to our actual
knowledge with no duty to inquire further of any person or document. Said language is
intended to be limited to the actual knowledge of the attorneys within our firm who have
been directly involved in representing the Developer, or whom we reasonably believe
have knowledge of the affairs of the Developer. We have assumed that all
representations and warranties made by any party to the Development Agreement are
true and correct. We have examined the law, the resolutions of the members of
Developer, the Development Agreement, and such company proceedings of the
Developer and such other documents, certificates, instruments and matters as we deem
necessary to render this opinion.
The foregoing opinions are subject to:
(a) Equitable principles of general applicability (including, without limitation,
concepts of materiality, reasonableness, good faith and fair dealing, public policy,
equitable subordination and the possible unavailability of specific performance or
injunctive relief), regardless of whether considered in a proceeding in equity or at law or
whether codified by statute;
(b) The unenforceability of provisions purporting to waive. rights, claims,
demands, liabilities or defenses to obligations, known or unknown, suspected or
unsuspected, where such waivers are contrary to any applicable taw or against public
policy;
(c) The unenforceability, under certain circumstances, of provisions of
agreements to the effect that rights or remedies are not exclusive, that every right or
remedy is cumulative and may be exercised in addition to or with any other right or
remedy, or that the election of some particular remedy or remedies does not preclude
recourse to one or another remedy;
(d) The unenforceability under certain circumstances, of provisions which
purport to govern forum selection or consent to jurisdiction; and
(a) The potential to vary the terms of the Development Agreement on the
basis of parol evidence.
The opinions set forth herein are given as of the date hereof. We disclaim any
obligation to notify you or any other person after the date of this letter if any change in
fact and/or law should change our opinion with respect to any matters set forth herein.
This opinion is for your benefit only and may not be quoted in whole or in part or
otherwise referred to in any documents, or delivered to or filed with any person or entity,
or relied upon by any other person or entity, without our prior written consent.
Very truly yours,
EXHIBIT D
OPINION OF EMPLOYER'S COUNSEL
Mayor and City Councilmembers
City Hall
131" and Central Avenue
Dubuque IA 52001
Re: Development Agreement By and Among the City of Dubuque, Iowa, Scherr Real
Estate, L.L.C. (Developer), and Dubuque Screw Products, Inc. (Employer)
Dear Mayor and City Councilmembers:
We have acted as counsel for Dubuque Screw Products, Inc., (Employer) in
connection with the execution and delivery of a certain Development Agreement
(Development Agreement) among Scherr Real Estate, L.L.C. (Developer), and
Dubuque Screw Products, Inc. (Employer) and the City of Dubuque, Iowa (City) dated
for reference purposes the _ day of 20.
We have examined the original certified copy, or copies otherwise identified to
our satisfaction as being true copies, of the Development Agreement and such other
documents and records as we have deemed relevant and necessary as a basis for the
opinions set forth herein.
Based on the pertinent law, the foregoing examination and such other inquiries
as we have deemed appropriate, we are of the opinion that:
1. Employer is a corporation organized and existing under the laws of the
State of Iowa and has full power and authority to execute, deliver and perform in full
Development Agreement. The Development Agreement has been duly and validly
authorized, executed and delivered by Employer and, assuming due authorization,
execution and delivery by City, is in full force and effect and is valid and legally binding
instrument of Employer enforceable in accordance with its terms, except as the same
may be limited by bankruptcy, insolvency, reorganization or other laws relating to or
affecting creditors' rights generally.
2. The execution, delivery and performance by Employer of the Development
Agreement and the carrying out of the terms thereof, will not result in violation of any
provision of, or in default under, the articles of incorporation and bylaws of Employer,
any indenture, mortgage, deed of trust, indebtedness, agreement, judgment, decree,
order, statute, rule, regulation or restriction to which Employer is a party or by which
Employer's property is bound or subject.
3. To the best of our knowledge, there are no actions, suits or proceedings
pending or threatened against or affecting Employer in any court or before any arbitrator
or before or by any governmental body in which there is a reasonable possibility of an
adverse decision which could materially adversely affect the business (present or
prospective), financial position or results of operations of Employer or which in any
manner raises any questions affecting the validity of the Agreement or the Employer's
ability to perform Employer's obligations thereunder.
We have examined such documents and certificates of public officials and
officers of the Employer as we have deemed necessary for the purposes of this opinion.
As to the existence of facts which are material to this opinion, we have relied upon
certificates of public officials, statements by officers and resolutions of the Board of
Directors of the Employer. In rendering our opinion, we have assumed (i) the legal
capacity of all natural persons and the capacity and corporate power of all parties to the
documents examined by us other than the Employer, (ii) the due authorization,
execution and delivery of each document examined by us, by all parties to such
documents other than the Employer, (iii) the genuineness of all signatures other than
the signatures of the representatives of the Employer, (iv) the authenticity of all
documents submitted to us as originals; (v) the conformity to original documents of all
documents submitted to us as copies; and (vi) the City has no knowledge, direct or
through their counsel, which would render any of the representations set forth herein
inaccurate or incorrect. We have not made any independent investigation to verify any
assumptions made herein, and have not undertaken any factual investigation into the
business, properties, agreements or litigation of the Employer for the purpose of
rendering the opinions expressed herein. There may exist matters of a factual nature
which could have a bearing on our opinions expressed herein, with respect to which we
have not been consulted or are otherwise unaware. Where used herein, the language
"to the best of our knowledge" or language of similar nature means to our actual
knowledge with no duty to inquire further of any person or document. Said language is
intended to be limited to the actual knowledge of the attorneys within our firm who have
been directly involved in representing the Employer, or whom we reasonably believe
have knowledge of the affairs of the Employer. We have assumed that all
representations and warranties made by any party to the Development Agreement are
true and correct. We have examined the law, the resolutions of the Board of Directors
of Employer, the Development Agreement, and such company proceedings of the
Employer and such other documents, certificates, instruments and matters as we deem
necessary to render this opinion.
The foregoing opinions are subject to:
(a) Equitable principles of general applicability (including, without limitation,
concepts of materiality, reasonableness, good faith and fair dealing, public policy,
equitable subordination and the possible unavailability of specific performance or
injunctive relief), regardless of whether considered in a proceeding in equity or at law or
whether codified by statute;
(b) The unenforceability of provisions purporting to waive rights, claims,
demands, liabilities or defenses to obligations, known or unknown, suspected or
unsuspected, where such waivers are contrary to any applicable law or against public
policy;
(c) The unenforceability, under certain circumstances, of provisions of
agreements to the effect that rights or remedies are not exclusive, that every right or
remedy is cumulative and may be exercised in addition to or with any other right or
remedy, or that the election of some particular remedy or remedies does not preclude
recourse to one or another remedy;
(d) The unenforceability under certain circumstances, of provisions which
purport to govern forum selection or consent to jurisdiction; and
(e) The potential to vary the terms of the Development Agreement on the
basis of parol evidence.
The opinions set forth herein are given as of the date hereof. We disclaim any
obligation to notify you or any other person after the date of this letter if any change in
fact and/or law should change our opinion with respect to any matters set forth herein.
This opinion is for your benefit only and may not be quoted in whole or in part or
otherwise referred to in any documents, or delivered to or filed with any person or entity,
or relied upon by any other person or entity, without our prior written consent.
Very truly yours,
EXHIBIT E
CITY CERTIFICATE
City Manager's Office
Dubuque
THE CITY OF�,,�,,,�
UBLIQUE
AgA�neHgiClq
Masterpiece on the Mississippi
c
2007-2012.2013
2017*e019
(DATE)
City Hall
50 West 1W Street
Dubuque, Iowa 52001 A864
(563) 589-4110 office
(563) 589-4149 fax
ctymgr@cltyofdubuque.org
Re: Development Agreement By and Among the City of Dubuque, Iowa, Scherr Real
Estate, L.L.C. and Dubuque Screw Products, Inc.
Dear
I am the City Manager of the City of Dubuque, Iowa and have acted in that capacity in
connection with the execution and delivery of a certain Development Agreement by and
among Scherr Real Estate, L.L.C., (Developer), and Dubuque Screw Products, Inc.
(Employer), and the City of Dubuque, Iowa (City) dated for reference purposes the
day of , 2022.
On behalf of the City of Dubuque, 1 hereby represent and warrant to Developer that:
(1) There is no action, suit or proceeding pending, or to the best of City's
knowledge, threatened against City which might result in any adverse change in
the Property being conveyed or the possession, use or enjoyment thereof by
Developer, including, but not limited to, any action in condemnation, eminent
domain or public taking.
(2) No ordinance or hearing is now or before any local governmental body
that either contemplates or authorizes any public improvements or special tax
levies, the cost of which may be assessed against the Property. To the best of
City's knowledge, there are no plans or efforts by any government agency to
widen, modify, or reralign any street or highway providing access to the Property
and there are no pending or intended public improvements or special
assessments affecting the Property which will result in any charge or lien be
levied or assessed against the Property.
(3) All leases, contracts, licenses, and permits between City and third parties
in connection with the maintenance, use, and operation of the Property have
been provided to Developer and City has provided true and correct copies of all
such documents to Developer.
(4) The Property has a permanent right of Ingress or egress to a public
roadway for the use and enjoyment of the Property.
(5) There are no notices, orders, suits, judgments or other proceedings
relating to fire, building, zoning, air pollution, health violations or other matters
that have not been corrected. City has notified Developer in writing of any past
notices, orders, suits, judgments or other proceedings relating to fire, building,
zoning, air pollution or health violations as they relate to the Property of which it
has actual notice. The Property is in material compliance with all applicable
zoning, fire, building, and health statutes, ordinances, and regulations. The
Property is currently zoned PUD and Developer's intended use of the Property as
a corporate office/industrial facility is a permitted use in such zoning
classification.
(6) The execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated by this Agreement do not and
shall not result in any material breach of any terms or conditions of any
mortgage, bond, indenture, agreement, contract, license, or other instrument or
obligation to which City is a party or by which either the City is bound, nor shall
the execution, delivery and performance of this Agreement violate any statute,
regulation, judgment, writ, injunction or decree of any court threatened or entered
in a proceeding or action in which City may be bound or to which City may be
subject.
(7) City has duly obtained all necessary approvals and consents for its
execution, delivery and performance of this Agreement, and has full power and
authority to execute, deliver and perform its obligations under this Agreement.
City's attorney shall issue a legal opinion to Developer at time of closing
confirming the representation contained herein, in the form attached hereto as
Exhibit C.
(8) City shall exercise its best efforts to assist with Developer in the
development process.
(14) City shall exercise its best efforts to resolve any disputes arising during
the development process in a reasonable and prompt fashion.
(15) With respect to the period during which City has owned or occupied the
Property, and to City's knowledge after reasonable investigation with respect to
the time before City owned or occupied the Property, no person or entity has
caused or permitted materials to be stored, deposited, treated, recycled, or
disposed of on, under or at the Property, which materials, if known to be present,
would require cleanup, removal or some other remedial action under
environmental laws.
(16) All city utilities necessary for the development and use of the Property as an
industrial manufacturing facility adjoin the Property and Developer shall have the
right to connect to said utilities, subject to City's connection fees.
(17) The representations and warranties contained in this article shall be
correct in all respects on and as of the Closing Date with the same force and
effect as if such representations and warranties had been made on and as of the
Closing Date.
Sincerely,
Michael C. Van Milligen
City Manager
MCVMJh
EXHIBIT F
CERTIFICATE OF COMPLETION
Prepared By: Barry A. Lindahl, 300 Main Street, Suite 330, Dubuque, IA 52001 (563) 583-4113
Return to: Barry A. Lindahl, 300 Main Street, Suite 330, Dubuque, IA 52001 (563) 583-4113
CERTIFICATE OF COMPLETION
WHEREAS, the City of Dubuque, Iowa, a municipal corporation (City) has
entered into a Development Agreement with Scherr Real Estate, L.L.C. (Developer)
dated as of (Date], related to certain real property located within the Dubuque Industrial
Center Economic Development District of the Grantor and as more particularly
described as follows:
Lot One (1) of Lot Five (5) of Dubuque Industrial Center West 5th Addition in the City of
Dubuque, Iowa, according to the recorded plat thereof, subject to easements of record.
(the "Property"); and
WHEREAS, the Development Agreement contained certain covenants and
conditions with respect to the development of the Property, and obligated Developer to
construct certain Minimum Improvements in accordance with the Agreement; and
WHEREAS, Developer has to the present date performed said covenants and
conditions insofar as they relate to the construction of the Minimum Improvements in a
manner deemed sufficient by City to permit the execution and recording of this
certification; and
NOW, THEREFORE, pursuant to Section 2.4 of the Agreement, this is to certify
that all covenants and conditions of the Development Agreement with respect to the
obligations of Developer, and its successors and assigns, to construct the Minimum
Improvements on the Property have been completed and performed by Developer to
the satisfaction of City and such covenants and conditions are hereby terminated.
The Recorder of Dubuque County is hereby authorized to accept for recording
and to record the filing of this instrument, to be a conclusive determination of the
satisfaction of the covenants and conditions of the Development Agreement and the
Development Agreement shall otherwise remain in full force and effect.
CITY OF DUBUQUE, IOWA
0
Michael C. Van Milligen, City Manager
STATE OF IOWA )
SS
COUNTY OF DUBUQUE )
On this day of , 20 , before me, the undersigned, a
Notary Public in and for the State of Iowa, personally appeared Michael C. Van Milligen,
to me personally known, who, being by me duly sworn, did say that he is the City
Manager of the City of Dubuque, Iowa, a municipal corporation, and that the instrument
was signed on behalf of the corporation, and Michael C. Van Milligen acknowledged the
execution of the instrument to be his voluntary act and deed.
Notary Public in and for said State
EXHIBIT G
MEMORANDUM OF DEVELOPMENT AGREEMENT
Prepared by: Barry A, Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
Return to: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
MEMORANDUM OF DEVELOPMENT AGREEMENT
A Development Agreement by and among the City of Dubuque, Iowa, an Iowa
municipal corporation, of Dubuque, Iowa, and
SCHERR REAL ESTATE, L.L.C., and DUBUQUE SCREW PRODUCTS, INC.
was made regarding the following described premises:
Lot One (1) of Lot Five (5) of Dubuque Industrial Center West 5" Addition in the City of
Dubuque, Iowa, according to the recorded plat thereof, subject to easements of record.
The Development Agreement is dated for reference purposes the day of
2022, and contains covenants, conditions, and restrictions concerning the
use of said premises.
This Memorandum of Development Agreement is recorded for the purpose of
constructive notice. In the event of any conflict between the provisions of this
Memorandum and the Development Agreement itself, executed by the parties, the
terms and provisions of the Development Agreement shall prevail. A complete
counterpart of the Development Agreement, together with any amendments thereto, is
in the possession of the City of Dubuque and may be examined at its offices as above
provided.
Dated this day of 2022.
CITY OF DUBUQUE, IOWA
0
Barry A. Lindahl, Esq., Senior Counsel
STATE OF IOWA
Ss:
DUBUQUE COUNTY
On this _day of , 2022, before me, a Notary Public in and for the State of
Iowa, in and for said county, personally appeared Barry A. Lindahl, , to me personally
known, who being by me duly sworn did say that he is Senior Counsel of the City of
Dubuque, a Municipal Corporation, created and existing under the laws of the State of
Iowa and that said instrument was signed on behalf of said Municipal corporation by
authority and resolution of its City Council and said Senior Counsel acknowledged said
instrument to be the free act and deed of said Municipal Corporation by it voluntarily
executed.
Notary Public, State of Iowa
Doc ID: 010955970002 Type: GEN
Kind: AGREEMENT
Recorded: 05/10/2022 at 11:50:24 AM
Fee Amt: $12.00 Paqe i of 2
Dubuque County Iowa
John Murphy Recorder
File2022-00006054
Prepared by: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
Return to: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
MEMORANDUM OF DEVELOPMENT AGREEMENT
A Development Agreement by and among the City of Dubuque, Iowa, an Iowa
municipal corporation, of Dubuque, Iowa, and SCHERR REAL ESTATE, L.L.C., and
DUBUQUE SCREW PRODUCTS, INC. was made regarding the following described
premises:
Lot One (1) of Lot Five (5) of Dubuque Industrial Center West 5th Addition in the City of
Dubuque, Iowa, according to the recorded plat thereof, subject to easements of record.
The Development Agreement is dated for reference purposes the 18th day of April,
2022, and contains covenants, conditions, and restrictions concerning the use of said
premises.
This Memorandum of Development Agreement is recorded for the purpose of
constructive notice. In the event of any conflict between the provisions of this
Memorandum and the Development Agreement itself, executed by the parties, the terms
and provisions of the Development Agreement shall prevail. A complete counterpart of
the Development Agreement, together with any amendments thereto, is in the possession
of the City of Dubuque and may be examined at its offices as above provided.
Dated this?'47 day of , 2022.
CITY OF DUBUQU , 10 A
By:
Barry A. Li dahl, Esq., Senior Counsel
Oo
04152022ba1 \�
C iffy DSQ C ler k
STATE OF IOWA
Ss:
DUBUQUE COUNTY
On this 04day of 1 2022, before me, a Notary Public in and for the State of
Iowa, in and for said county, personally appeared Barry A. Lindahl, , to me personally
known, who being by me duly sworn did say that he is Senior Counsel of the City of
Dubuque, a Municipal Corporation, created and existing under the laws of the State of
Iowa and that said instrument was signed on behalf of said Municipal corporation by
authority and resolution of its City Council and said Senior Counsel acknowledged said
instrument to be the free act and deed of said Municipal Corporation by it voluntarily
executed.
r JONI LYN MEDINOER
Comnd"Ion Number =198
xw� -
• tiAy Comml�slon res
N ary Public, State of to
�oN� h/n I f=11�
STATE OF IOWA SS:
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
04/08/2022
and for which the charge is 115.42
Subscribed to before me, a Notary Pu is in and for
Dubuque County, Iowa,
this 8th day of April, 2022
Notary Public in and for Dubuque County, Iowa.
SH.ARON WELBORN
Caamnmli",! mi MM11W 827401
Wy C-aammm. Esp, HEN 10, =3
Ad text : CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the Dubuque City Council
will conduct a public hearing on the 18th day of April, 2022,
at 6:30 p.m., in the Historic Federal Building, 350 W. 6th
Street, 2nd floor, Dubuque, Iowa, at which meeting the City
Council proposes to take action to approve a Development
Agreement by and among the City of Dubuque, Iowa, Scherr Real
Estate, LLC, and Dubuque Screw Products, Inc., a copy of which
is now on file at the Office of the City Clerk, City Hall, 50
W Ath Street, Dubuque, Iowa, providing for the issuance of
economic development grants (Urban Renewal Tax Increment
Revenue Grant Obligations) described therein in order to carry
out the purposes and objectives of the Urban Renewal Plan for
the Dubuque Industrial Center Urban Renewal Area Economic
Development District, consisting of the funding of economic
development grants for Dubuque Screw Products, Inc., under the
terms and conditions of the Urban Renewal Plan for the Dubuque
Industrial Center Urban Renewal Area Economic Development
District. The aggregate amount of the Urban Renewal Tax
Increment Revenue Grant Obligations cannot be determined at
the present time but is not expected to exceed $327,978.
At the meeting, the City Council will receive oral and
written comments from any resident or property owner of said
City to the above action. The official agenda will be posted
the Friday before the meeting and will contain public input
options. The City Council agenda can be accessed at
https://cityofdubuque.novusagenda.com/Agendapublic/ or by
contacting the City Clerk's Office at 563-589-4100,
ctyclerk@cityofdubuque.org.
Written comments regarding the above public hearings may be
submitted to the City Clerk's Office via email at
ctyclerk@cityofdubuque.org or by mail to City Clerk's Office,
City Hall, 50 W. 13th St., Dubuque, IA 52001, before said
time of public hearing. At said time and place of public
hearings the City Council will receive any written comments.
Copies of supporting documents for the public hearings are
on file in the City Clerk's Office and may be viewed Monday
through Friday between 8:00 a.m. and 5:00 p.m.
Individuals with limited English proficiency, vision,
hearing, or speech impairments requiring special assistance
should contact the City Clerk's Office at (563) 589-4100, TDD
(563) 690-6678, ctyclerk@cityofdubuque.org as soon as
feasible. Deaf or hard -of -hearing individuals can use Relay
Iowa by dialing 711 or (800) 735-2942.
Published by order of the City Council given on the 4th day
of April 2022.
Adrienne N. Breitfelder, City Clerk
RESOLUTION NO. 110-22
FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF
THE CITY OF DUBUQUE, IOWA ON THE PROPOSED DEVELOPMENT
AGREEMENT BY AND AMONG THE CITY OF DUBUQUE, SCHERR REAL
ESTATE, LLC, AND DUBUQUE SCREW PRODUCTS, INC., INCLUDING THE
PROPOSED ISSUANCE OF URBAN RENEWAL TAX INCREMENT REVENUE GRANT
OBLIGATIONS TO DUBUQUE SCREW PRODUCTS, INC., AND PROVIDING FOR
THE PUBLICATION OF NOTICE THEREOF
WHEREAS, Scherr Real Estate, LLC, as Developer, is the owner
of the following described real property:
Lot One (1) of Lot Five (5) of Dubuque Industrial Center
West 5th Addition in the City of Dubuque, Iowa, according to
the recorded plat thereof, subject to easements of record,
locally known as 6500 Chavenelle Drive Dubuque, Iowa
(the Property)
; and
WHEREAS, Dubuque Screw Products, Inc., as Employer, leases
the Property from Scherr Real Estate, LLC; and
WHEREAS, Developer and Employer have determined that they
require a new industrial building/facility (the Facility) to
maintain and expand their operations and employment in the
project area; and
WHEREAS, Developer and Employer have entered into an
agreement for the construction of the Facility; and
WHEREAS, City of Dubuque, Iowa (City), Scherr Real Estate,
LLC, and Dubuque Screw Products, Inc. have entered into a
Development Agreement, subject to the approval of the City
Council, pursuant to which Scherr Real Estate, LLC will
construct on the Property certain Minimum Improvements
described in the Development Agreement; and
WHEREAS, the City Council has tentatively determined that it
would be in the best interests of City to approve the
Development Agreement; and
WHEREAS, the Development Agreement provides for the issuance
by City of economic development grants to Dubuque Screw
Products, Inc., referred to therein as Urban Renewal Tax
Increment Revenue Grant Obligations, payable from the tax
increment revenues collected in respect of the Improvements to
be constructed by Scherr Real Estate, LLC in accordance with
the Development Agreement, for the purpose of carrying out the
objectives of an Urban Renewal Plan as hereinafter described;
and
WHEREAS, before said obligations may be approved, Chapter
403 of the Code of Iowa requires that the City Clerk publish a
notice of the proposal and of the time and place of the
meeting at which the City Council proposes to take action
thereon and at which meeting the City Council shall receive
oral and/or written objections from any resident or property
owner of said City to such proposed action.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section L "The City Clerk is hereby authorized and directed
to cause this Resolution and a Notice to be published as
prescribed by Iowa Code Section 364.7 of a public hearing on
the City Councils intent to approve the proposed Development
Agreement, to be held on the 18th day of April, 2022 at 6:30
p.m.
Section 2."The City Council will also meet at said time and
place for the purpose of taking action on the matter of
authorizing Urban Renewal Tax Increment Revenue obligations,
the proceeds of which obligations will be used to carry out
certain of the special financing activities described in the
Urban Renewal Plan for the Greater Downtown Urban Renewal Area
Economic Development District, consisting of the funding of
economic development grants to Dubuque Screw Products, Inc.,
pursuant to the Development Agreement under the terms and
conditions of said Urban Renewal Plan. It is expected that
the aggregate amount of the Tax Increment Revenue obligations
will be approximately $327,978.
Section 3. "The City Clerk is hereby directed to cause at
least one publication to be made of a notice of said meeting,
in a newspaper, printed wholly in the English language,
published at least once weekly, and having general circulation
in said City, said publication to be not less than four days
nor more than twenty days before the date of said meeting on
the disposal of the Citys interest in the Property and the
issuance of said obligations.
Section 4."That the Notice of the proposed action shall be
in substantially the form attached hereto.
Passed, approved and adopted this 4th day of April, 2022.
/sBrad M. Cavanagh, Mayor
Attest: /s/Adrienne N. Breitfelder, City Clerk
It 4/8