Proposed First Amendment to Development Agreement with Seippel Warehouse, LLC_InitiateCity of Dubuque
City Council Meeting
Copyrighted
April 17, 2023
Items to be set for Public Hearing #
01.
ITEM TITLE: Resolution Setting a Public Hearing on the Proposed First Amendment
to Development Agreement by and between the City of Dubuque and
Seippel Warehouse, LLC providing for the Issuance of Urban Renewal
Tax Increment Revenue Grant Obligations Pursuant to the Development
Agreement
SUMMARY: City Manager recommending City Council adopt the attached resolution
setting a public hearing for May 1, 2023 on the proposed First
Amendment to Development Agreement by and between the City of
Dubuque and Seippel Warehouse, LLC (Developer) providing for the
issuance of Urban Renewal Tax Increment Revenue Grant Obligations.
RESOLUTION Setting a public hearing on the First Amendment to
Development Agreement between the City of Dubuque, Iowa and
Seippel Warehouse, LLC
SUGGESTED Receive and File; Adopt Resolution(s), Set Public Hearing for May 1,
DISPOSITION: 2023Suggested Disposition:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
F i rst Amendment Supporting Documentation
Notice of Hearing 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 Setting a Public Hearing on the Proposed First Amendment to
Development Agreement by and between the City of Dubuque and
Seippel Warehouse, LLC providing for the Issuance of Urban Renewal
Tax Increment Revenue Grant Obligations Pursuant to the Development
Agreement
DATE: April 12, 2023
Economic Development Director Jill Connors is recommending City Council adopt the
attached resolution setting a public hearing for May 1, 2023 on the proposed First
Amendment to Development Agreement by and between the City of Dubuque and
Seippel Warehouse, LLC (Developer) providing for the issuance of Urban Renewal Tax
Increment Revenue Grant Obligations.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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 13th Street
All -A erill Dubuque, Iowa 52001-4864
DUB 1111.
n" "''' Office (563) 589-4393
0-6678
1 ' TTY (563) 690-6678
http://www.cityofdubuque.org
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 Setting a Public Hearing on the Proposed First
Amendment to Development Agreement by and between the City of
Dubuque and Seippel Warehouse, LLC providing for the Issuance of
Urban Renewal Tax Increment Revenue Grant Obligations Pursuant
to the Development Agreement
DATE: April 12, 2023
INTRODUCTION
This memorandum is a request for the City Council to adopt the attached resolution
setting a public hearing for May 1, 2023 on the proposed First Amendment to
Development Agreement by and between the City of Dubuque and Seippel Warehouse,
LLC (Developer) providing for the issuance of Urban Renewal Tax Increment Revenue
Grant Obligations.
BACKGROUND
City and Developer previously entered into a Development Agreement by Resolution
No. 55-23, dated February 20, 2023.
The key elements of the Development Agreement include the following:
1. The purchase price was $1,489,500. ($150,000.00 per acre x 9.93 usable acres),
with a total acquisition of 15.47 acres. An Acquisition Grant to the Developer reduces
the purchase price to be paid to $75,000 per usable acre.
2. The property was conveyed to the Developer on April 10, 2023.
3. The Developer must construct a building of not less than 190,000 square feet
with a cost of approximately $22,500,000.
4. After the building is constructed, Seippel Warehouse, LLC will lease the building
to Simmons.
5. Simmons must retain its current 271 full-time positions at the current facility and
create 10 new jobs at the current facility or the new building by December 1, 2024. The
281 jobs must be retained through the term of the Development Agreement.
6. The Acquisition Grant requires Simmons to create and maintain at least 281 jobs
during the term of the Development Agreement.
7. The Developer 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 Simmons Pet Food, Inc. First Amendment to Development
Agreement, which will be considered at the May 1, 2023 City Council meeting, following
the public hearing for the Seippel Warehouse, LLC Development Agreement.
DISCUSSION
Developer now intends to increase the size of the warehouse to be constructed to a
facility of approximately 250,000 square feet at a cost of $24,500,000. The expansion of
the facility footprint will extend the structure over portions of additional property adjacent
to the Property previously sold to Developer. The additional property being acquired by
Developer is specifically a portion of the Brehm property and a portion of the Wilming
property shown on the exhibit attached to the First Amendment. The Brehm property
being acquired by Developer does not currently reside within the City limits.
Key modifications to the Development Agreement, outlined in the First Amendment
include the following:
1. Developer must construct a warehouse facility of approximately 250,000 square
feet at an estimated cost of $24,500,000.
2. City Agrees to annex the Brehm property, to include that parcel in the Declaration
of Covenants, Conditions, Restrictions, Reservations, Easements, Liens and
Charges recorded February 5, 2014 as Instrument No. 2014-1147, as amended,
and to include that parcel in the Dubuque Industrial Center Economic
Development District.
3. City agrees to work with British Petroleum Corp. with the assistance of Developer
to narrow the scope of the existing gas line easement on the Property.
4. City agrees to relocate the existing hiking trail easement through the Property.
5. Developer will be responsible for grading the trail easement area.
6. The previously approved 10 years of tax increment financing incentives will be
increased because of the additional property being acquired by Developer.
RECOMMENDATION/ ACTION STEP
I recommend the City Council adopt the attached resolution setting a May 1, 2023
public hearing on the First Amendment to Development Agreement providing for the
issuance of Urban Renewal Tax Increment Revenue Grant Obligations.
Prepared by: Jill Connors, Economic Development, 50 W. 13M Street, Dubuque IA 52001, 563 589-4393
Return to: Jill Connors, Economic Development, 50 W. 1P Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 115-23
SETTING A PUBLIC HEARING ON THE FIRST AMENDMENT TO DEVELOPMENT
AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND SEIPPEL
WAREHOUSE, LLC
WHEREAS, the City of Dubuque (City) and Seippel Warehouse, LLC (Developer)
previously entered into a Development Agreement dated February 20, 2023, for the
development of real estate legally described as:
Lot 2 of Dubuque Center South First Additions, City of Dubuque, Iowa:
(the "Initial Property"); and
WHEREAS, Developer desires to acquire additional real estate adjoining the Initial
Property described as follows:
Lot 2 of Lot 3 of Dubuque Industrial Center South First Addition, Dubuque Iowa
(the "Wilming Property"); and
Lot 2 in Brehm Acres Plat 3, Dubuque, Iowa (the "Brehm Property")
(the "Property") all of which shall be combined in a consolidated plat; and
WHEREAS, Developer intends to expand the size of the warehouse to be
constructed on the Initial Property, to extend the structure over portions of the Brehm
Property and to obtain access to the structure over the Wilming Property; and
WHEREAS, the parties desire to amend the Development Agreement to include
the Wilming Property and the Brehm Property in the definition of Property in the
Development Agreement and to otherwise modify the Development Agreement to
accommodate additional property; and
WHEREAS, City and Developer desire to amend the Development Agreement as
set forth herein.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City Council intends to approve the First Amendment to
Development Agreement by and between the City of Dubuque and Seippel Warehouse,
LLC, a copy of which is attached hereto.
Section 2. 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's intent to to enter into a First Amendment to Development
Agreement by and between the City of Dubuque and Seippel Warehouse, LLC, to be held
on the 1 st day of May, 2023 at 6:30 p.m. in the form attached hereto.
Section 3. 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 and the execution of the First Amendment to Development Agreement relating
thereto with Seippel Warehouse, LLC, 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 Dubuque Industrial Center Economic Development District, consisting of the
funding of economic development grants to Seippel Warehouse, LLC, 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 $4,803,760.
Section 4. 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 City's interest in the Property and the issuance of said
obligations.
Section 5. That the notice of the proposed action shall be in substantially the
form attached hereto.
Passed, approved and adopted this 17t" day of April, 2023.
s—
.dQdTia-e4h, Mayor
Attest:
Adrienne N. Breitfelder, City Clerk
DocuSign Envelope ID: 69310B98-DDCB-4231-9DCB-3D6A0719C26D
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
SEIPPEL WAREHOUSE, LLC
This First Amendment to Development Agreement, dated for reference purposes
the 21st day of February, 2023, is made an entered into by the City of Dubuque, Iowa a
municipality (City) and Seippel Warehouse, LLC, an Iowa business corporation
(Developer) with respect to real estate legally described as:
Lot 2 of Dubuque Industrial Center South First Additions, City of Dubuque, Iowa;
(the Initial Property).
WHEREAS, Developer desires to acquire additional real estate adjoining the
Initial Property described as follows:
Lot 2 of Lot 3 of Dubuque Industrial Center South First Addition, Dubuque, Iowa
(the "Wilming Property")
and
Lot 2 in Brehm Acres Plat 3, Dubuque, Iowa (the "Brehm Property")
("the Property") all of which shall be combined in a consolidated plat; and
WHEREAS, Developer intends to expand the size of the warehouse to be
constructed on the Initial Property, to extend the structure over portions of the Brehm
Property and to obtain access to the structure over the Wilming Property; and
WHEREAS, the parties desire to amend the Development Agreement to include
the Wilming Property and the Brehm Property in the definition of Property in the
Development Agreement and to otherwise modify the Development Agreement to
accommodate the additional property; and
WHEREAS, the parties have reached agreement on the terms of an amendment
and desire to set forth their agreement regarding the amendment as set forth herein.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL TERMS AND
CONDITIONS HEREIN AND IN THE DEVELOPMENT AGREEMENT, THE PARTIES
AGREE AS FOLLOWS:
Section 1. The Sixth Whereas clause is amended to read as follows:
04062023bal
DocuSign Envelope ID: 69310B98-DDCB-4231-9DCB-3D6A0719C26D
WHEREAS, Developer has requested that City sell to Developer
15.47 acres of which 9.93 acres are usable, as shown the Plat, Exhibit B
and B-1, legally described as follows:
Lot 2 of Dubuque Industrial Center South First Addition, City of
Dubuque, Iowa
with all easements, tenements, hereditaments, and appurtenances
belonging thereto and Developer has acquired the following described real
property:
Lot 2 of Lot 3 of Dubuque Industrial Center South First Addition, Dubuque,
Iowa
(the "Wilming Property");
and
Lot 2 in Brehm Acres Plat 3, Dubuque, Iowa (the "Brehm
Property"); and
so that Developer may construct the Facility on the Property located in
the Project Area, for the construction, use, and leasing 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
Section 2. Sec. 2.1 is hereby deleted and the following substituted in lieu thereof:
2.1 Required Minimum Improvements. City acknowledges that the Facility is
an industrial warehouse facility. Specifically, Developer agrees to the following:
A warehouse facility of approximately two hundred fifty thousand (250,000)
square feet at an estimated cost of Twenty Four Million Dollars ($24,000,000.00)
(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.
Section 3. In Section 3.2 (A)(1) the following sentence is amended to read:
City and Developer agree that for purposes of this Section 3.2(1), the assessed
value of the Property as of January 1, 2023 is $81,315.
Section 4. The following new Section is added to the Development Agreement:
3.5 Additional City Representations.
04062023ba1
DocuSign Envelope ID: 69310B98-DDCB-4231-9DCB-3D6A0719C26D
(1) City agrees to annex the Brehm property into the City of Dubuque and to
include that parcel in the Declaration of Covenants, Conditions, Restrictions,
Reservations, Easements, Liens and Charges recorded February 5, 2014 as
Instrument No. 2014-1147, as amended, and to include that parcel in the
Dubuque Industrial Center Economic Development District;
(2) City agrees to work with British Petroleum Corp. ("BP"), with the assistance of
Developer, to narrow the scope of the existing BP easement on the Property
shown on Exhibit EX3; and
(3) City agrees to relocate the existing hiking trail easement through the Property
to the location shown on Exhibit EX3, Grading Plan, provided by Origin Design
and attached hereto. Developer will be responsible for grading the trail easement
area consistent with Exhibit EX3.
Section 5. References to "the Property" in Sec. 6.3 of the Development
Agreement related to the acquisition or re -vesting of title with respect to Lot 2 of
Dubuque Industrial Center South First Addition shall mean only the Initial Property and
shall not include the Wilming or Brehm Properties.
Section 6. Except as modified herein, the terms of the Development Agreement
shall govern the rights and obligations of the parties with respect to the Project and the
Property.
CITY OF DUBUQUE, IOWA
la
Brad M. Cavanagh, Mayor
ATTEST:
Adrienne Breitfelder, City Clerk
04062023ba1
SEIPPEL WAREHOUSE, INC.
By: "-t ""V— Cane.,,
Mary Mulgrew Gronen, President
DocuSign Envelope ID: 69310B98-DDCB-4231-9DCB-3D6A0719C26D
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04062023ba1
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public
hearing on the 1st day of May, 2023, at 6:30 p.m., in the Historic Federal Building, 350
W. 6t" Street, 2nd floor, Dubuque, Iowa, at which meeting the City Council proposes to
take action to approve the First Amendment to Development Agreement by and between
the City of Dubuque, Iowa and Seippel Warehouse, LLC, a copy of which is now on file
at the Office of the City Clerk, City Hall, 50 W. 13th 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 Economic Development
District, consisting of the funding of economic development grants for Seippel
Warehouse, LLC under the terms and conditions of the Urban Renewal Plan for the
Dubuque Industrial Center 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 $4,803,760.
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. 13t" 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 17th day of April 2023.
Adrienne N. Breitfelder, City Clerk