Second Amendment to a Development Agreement with Kretschmer, LLC to Redevelop Property at 220 E 9th St.City of Dubuque
City Council Meeting
Consent Items # 07.
Copyrighted
July 5, 2022
ITEM TITLE: Approving a Second Amendment to a Development Agreement between
the City of Dubuque and Kretschmer, LLC to Redevelop Property at 220
E 9th Street
SUMMARY: City Manager recommending City Council adopt a resolution approving a
Second Amendment to a Development Agreement between the City of
Dubuque and Kretschmer, LLC.
RESOLUTION Approving the Second Amendment to Development
Agreement by and between the City of Dubuque, Iowa and Kretschmer,
LLC
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
Second Amendment to Development Agreement with City Manager Memo
Kretschmer, LLC-MVM Memo
Staff Memo
Resolution
Second Amendment
Staff Memo
Resolutions
Supporting Documentation
THE C
Dubuque
DUj!BQTE
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: Approving a Second Amendment to a Development Agreement between
the City of Dubuque and Kretschmer, LLC to Redevelop Property at 220 E
9th Street
DATE: June 29, 2022
Economic Development Director Jill Connors is recommending City Council adopt the
resolution approving a Second Amendment to a Development Agreement between the
City of Dubuque and Kretschmer, LLC. The project promotes the City's goal of Livable
Neighborhoods and Housing: Great Place to Live. This amendment modifies the
completion date to November 1, 2022.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
If•[yT/f•iW111111111111111 111111111
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: Approving a Second Amendment to a Development Agreement between
the City of Dubuque and Kretschmer, LLC to Redevelop Property at 220 E
9th Street
DATE: June 28, 2022
INTRODUCTION
This memorandum presents for City Council consideration and action the attached
resolution approving a Second Amendment to a Development Agreement between the
City of Dubuque and Kretschmer, LLC.
BACKGROUND
The property at 220 E 9th Street is a vacant building in the Historic Millwork District. The
original master plan for the Historic Millwork District calls for a mixed -use district. The
addition of apartments at this time complements the area's existing housing offerings and
balances the commercial and residential development also underway in the district.
Tim Conlon has also contributed to the Historic Millwork District with the construction of
the Intermodal Parking Facility.
The City entered into a Development Agreement with Kretschmer, LLC by Resolution
242-20 dated August 3, 2020. The Development Agreement awards a Downtown Housing
Incentive Grant at a maximum of $480,000 for the creation of 48 rental units and a
maximum of $35,000 in Fagade, Planning & Design, and Financial Consultant Grants.
The total cost for the project is estimated at $10.5 million.
This project was previously delayed due to financing. Large restoration projects, such as
this one, typically require an extensive amount of time to properly gather the remaining
funding necessary and to identify all financing sources.
A First Amendment to the Development agreement modified the Closing date to be March
19, 2021 and updated language in Section 4.2 Operation of Development Property; Public
Assistance Source of Income; Housing Vouchers to better align with City Council goals
and priorities. The project completion date of May 1, 2022 remained unchanged.
DISCUSSION
The rehabilitation and housing creation project at 220 E 9t" Street is nearing completion.
In addition to some financing delays, this project has had to weather the uncertainty
across industries brought about by the COVID-19 pandemic. The attached Second
Amendment and Resolution modifies the project completion date to be November 1,
2022.
RECOMMENDATION / ACTION STEP
I recommend that the City Council adopt the attached resolution approving a Second
Amendment to a Development Agreement between the City of Dubuque and Kretschmer,
LLC. The project promotes the City's goal of Livable Neighborhoods and Housing: Great
Place to Live.
2
Prepared by: Jill Connors, Economic Development, 50 W. 13" Street, Dubuque IA 52001, 563 589-4393
Return to: Jill Connors, Economic Development, 50 W. 13" Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 240-22
APPROVING THE SECOND AMENDMENT TO DEVELOPMENT AGREEMENT BY
AND BETWEEN THE CITY OF DUBUQUE, IOWA AND KRETSCHMER, LLC
WHEREAS, the City of Dubuque (City) and Kretschmer, LLC (Developer)
previously entered into that certain Development Agreement dated August 3, 2020, as
amended, with respect to the matters specified therein; and
WHEREAS, the parties desire to further modify the Development Agreement as
set out in the Second Amendment to Development Agreement attached hereto; and
WHEREAS, the City Council finds that it is in the interests of the City of Dubuque
to approve the Second Amendment to Development Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the Second Amendment to Development Agreement between
the City of Dubuque, Iowa and Kretschmer, 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 Development Agreement on behalf of the City and the City Clerk
is authorized and directed to attest to his signature.
Section 3. That the City Manager is authorized to take such actions as are
necessary to comply with the terms of the Second Amendment to Development
Agreement as herein approved.
Passed, approved and adopted this 5th day of July, 2022.
BraT-M. Cavarniagh,
Attest:
Adrienne N. Breitfelder, City Clerk
SECOND AMENDMENT
TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
KRETSCHMER,LLC
This Second Amendment to Development Agreement, dated for reference
purposes the µday of T I V , 2022, is made and entered into by the City
of Dubuque, Iowa, a municipals y ("City"), and Kretschmer, LLC, an Iowa limited liability
company ('Developer"). City and Developer are hereinafter sometimes collectively
referred to as the Parties.
WHEREAS, City and Developer previously entered into that certain Development
Agreement dated August 3, 2020, as amended (the "Agreement'), with respect to the
matters specified therein; and
WHEREAS, City and Developer desire to further modify the Agreement as set forth
herein.
NOW THEREFORE, in consideration of the mutual terms and covenants contained
herein, the receipt and sufficiency of which are acknowledged by the parties, the parties
agree as follows:
1. Section 2.4 of the Development Agreement is hereby amended to read as
follows:
2.4 Timing of Improvements. Developer hereby agrees that construction
of the Minimum Improvements on the Property shall be commenced within
thirty (30) days after the Closing Date, and shall be substantially completed
by November 1, 2022. The time frames for performing 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, 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 similarjudicial 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. All other terms of the Development Agreement, as amended, shall remain
in full force and effect.
06212022BAL
CITY OF DUBUQUE, IOWA KRETSCHMER, LLC
ert�er�
By: By:
gra'VVFCav h, Mayor Timothy J. Conlon, Manager
ATTEST:
Adrienne N. Breitfelder, City Clerk