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Second Amendment to Grant Agreement with Real Property Investments, LLC for Rehabilitation of 1540 Central AveCopyrighted July 5, 2022 City of Dubuque Consent Items # 06. City Council Meeting ITEM TITLE: Second Amendment to Grant Agreement Between the City of Dubuque and Real Property Investments, LLC for the Rehabilitation of 1540 Central Avenue SUMMARY: City Manager recommending City Council adopt a resolution approving the Second Amendment to Grant Agreement between the City of Dubuque and Real Property Investments, LLC. RESOLUTION Approving the Second Amendment to Grant Agreement between the City of Dubuque, Iowa and Real Property Investments, LLC SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: FIN ik[91:ILyil21zIII l+] Description Type Second Amendment to Grant Agreement with Real City Manager Memo Property Investments, LLC-MVM Memo Staff Memo Staff Memo Resolution Resolutions Second Amendment Supporting Documentation THE C Dubuque DUjIBQTE WAWca 914 Masterpiece on the Mississippi YP pp aoo�•o 13 zai7*20*�oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Second Amendment to Grant Agreement Between the City of Dubuque and Real Property Investments, LLC for the Rehabilitation of 1540 Central Avenue DATE: June 29, 2022 Economic Development Director Jill Connors is recommending City Council adopt the resolution approving the Second Amendment to Grant Agreement between the City of Dubuque and Real Property Investments, LLC. This amendment modifies the completion date to August 1, 2022. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment CC' Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director Dubuque THE CITY OF All -America My nni K xvni , nz: a:u�ir, DUB E 2007-2012.2013 Masterpiece on the Mississippi 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org SUBJECT: Second Amendment to Grant Agreement Between the City of Dubuque and Real Property Investments, LLC for the Rehabilitation of 1540 Central Avenue DATE: June 22, 2022 INTRODUCTION This memorandum presents for City Council consideration and action the attached resolution approving a Second Amendment to Grant Agreement between the City of Dubuque and Real Property Investments, LLC for the rehabilitation of 1540 Central Avenue. BACKGROUND The Downtown Rehabilitation Loan Program (DRLP) provides several incentives from the Economic Development department for the rehabilitation of historic buildings in our greater downtown. This program has had a positive impact in the appearance and livability of our downtown, which leads to a more attractive business and residential environment. As such, the Economic Development Department finds these programs to be great tools for attracting and retaining a quality workforce for our businesses. On September 8, 2021 the Dubuque City Council awarded to Real Property Investments, LLC a grant in the amount of $50,000 for the rehabilitation of 1540 Central Avenue. Terms of the grant included the creation of four residential rental units and rehabilitation of the building fagade. The original agreement required the minimum improvements to the property be completed by March 1, 2022. On March 21, 2022 the Dubuque City Council approved a First Amendment to Grant Agreement by Resolution No. 83-22. The First Amendment modified the date of completion to be June 1, 2022. DISCUSSION The rehabilitation of 1540 Central Avenue is progressing. However, supply chain delays and increased material costs have pushed the project behind schedule. Real Property Investments, LLC has been in consistent communication with our department on the status of the project throughout this rehabilitation process. Real Property Investments, LLC has requested an amended completion date of August 1, 2022. This will allow time for the project to be completed and properly inspected. RECOMMENDATION / ACTION STEP I respectfully request City Council approval of the attached resolution approving the Second Amendment to Grant Agreement between the City of Dubuque and Real Property Investments, LLC. 2 Prepared by: Jill Connors, Economic Development, 50 W. 1311 Street, Dubuque IA 52001, 563 589-4393 Return to: Jill Connors, Economic Development, 50 W. 1311 Street, Dubuque IA 52001, 563 589-4393 RESOLUTION NO. 239-22 APPROVING THE SECOND AMENDMENT TO GRANT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND REAL PROPERTY INVESTMENTS, LLC WHEREAS, the City of Dubuque (City) and Real Property Investments, LLC (Grant Recipient) entered into a Grant Agreement dated September 8, 2021, as amended, for the redevelopment of 1540 Central Avenue in the City of Dubuque, Iowa (the Project); and WHEREAS, City and Grant Recipient desire to further amend the Grant Agreement as set forth in the attached Second Amendment to Grant Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Second Amendment to Grant Agreement between the City of Dubuque, Iowa and Real Property Investments, LLC, a copy of which is attached hereto, is hereby approved. Section 2. That the Mayor is hereby authorized and directed to execute the Second Amendment to Grant Agreement on behalf of the City of Dubuque and the City Clerk is authorized and directed to attest to his signature. Section 3. That the City Manager is authorized to take such actions as are necessary to comply with the terms of the Second Amendment to Grant Agreement as herein approved. Passed, approved and adopted this 5th day of July, 2022. �-15Ead M. Cavanagh, Mayor Attest: Adrienne N. Breitfelder, City Clerk SECOND AMENDMENT TO GRANT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND REAL PROPERTY INVESTMENTS, LLC This SPA--i Amendment to Grant Agreement, dated for reference purposes the day of 1` 2022, is made and entered into by 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 (the Urban Renewal Act), and Real Property Investments, LLC (Grant Recipient). WHEREAS, City and Grant Recipient entered into a Grant Agreement dated September 8, 2021, as amended (the Grant Agreement); and WHEREAS, City and Grant Recipient desire to further amend the Grant Agreement as set forth herein. NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL TERMS AND COVENANTS CONTAINED HEREIN, CITY AND GRANT RECIPIENT AGREE AS FOLLOWS: Section 1. Section 1.2 of the Grant Agreement is hereby amended to read as follows: 1.2 Completion of Minimum Improvements. Grant Recipient shall complete construction of the Minimum Improvements by August 1, 2022. City shall determine in its sole discretion (following an inspection by City's Inspection and Construction Services Department and/or Housing & Community Development Department, and/or Planning Department) when the Minimum Improvements have been completed. In order to be considered completed, the Minimum Improvements must be constructed in accordance with the terms of this Agreement, in compliance with the regulations of the Downtown Rehabilitation Grant Program, and in substantial conformity with Grant Recipient's application to that Program and the Design Letter attached hereto. Section 2. Except as modified herein, the Grant Agreement shall remain in full force and effect. CITY OF DUBUQUE, IOWA REAL PROPERTY INVESTMENTS, LLC By: V Gabriel Mozena, nager Attest: L� AMI" Adrienne N. Breitfelder, City Clerk