Resolution Approving the Proposed First Amendment to Development Agreement by and between the City of Dubuque and Seippel Warehouse, LLC providing for the Inssuance of Urban Renewal Tax Increment Revenue Grant Obligations Pursuant to the Development Agree Copyrighted
May 1, 2023
City of Dubuque Public Hearings # 02.
City Council Meeting
ITEM TITLE: ResolutionApproving the Proposed FirstAmendmentto Development
Agreement by and between the City of Dubuque and Seippel
Warehouse, LLC providing forthe Issuance of Urban Renewal Tax
Increment Revenue Grant Obligations Pursuant to the Development
Agreement
SUM MARY: Proof of publication on notice of public hearing to consider City Council
adopt a resolution approving the First Amendment to Development
Agreement by and between the City of Dubuque and Seippel
Warehouse, LLC (Developer) providing forthe issuance of Urban
Renewal Tax Increment Revenue Grant Obligations, and City Manager
recommending approval.
RESOLUTION Approving the First Amendment to Development
Agreement between the City of Dubuque, lowa and Seippel Warehouse,
LLC
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
1stAmendment Supporting Documentation
Resolution of Approval Resolutions
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution Approving 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 26, 2023
Economic Development Director Jill Connors is recommending City Council
adopt a resolution approving the 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.
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. 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 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.
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
2
Dub�que Economic Development
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Resolution Approving 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 26, 2023
INTRODUCTION
This memorandum is a request for the City Council to adopt the attached resolution
approving 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 adopting the First
Amendment to Development Agreement, including the issuance of Urban Renewal Tax
Increment Revenue Grant Obligations.
DocuSign Envelope ID:69310698-DDCB-4231-9DCB-3D6A0719C260
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
p Y ppp
(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:
04062023ba1
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 SEIPPEL WAREHOUSE, INC.
By: mom.m „
Brad M. Cavanag , ayor Mary Mulgrew Gronen, President
ATTEST:
By:
—_Adrienne Breitfelder, City Clerk
Irish Gleasen, Assistant City Clerk
04062023bal
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Prepared by:Jill Connors, Economic Development, 50 W. 13Ih Street, Dubuque IA 52001,563 589-4393 Return
to:Jill Connors, Economic Development, 50 W. 13'h Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 135-23
APPROVING 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 overportions of the Brehm Property and to
p Y
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 in the attached First Amendment; and
Whereas, the City Council held a public hearing on the proposed First Amendment
and overruled all objections thereto; and
Whereas, the City Council finds that the First Amendment should be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the First Amendment to Development Agreement by and between
the City of Dubuque and Seippel Warehouse, LLC, a copy of which is attached hereto, is
hereby approved.
Section 2. The City Manager is hereby authorized and directed to take such action
as may be necessary to carry out the Development Agreement as amended.
Passed, approved, and adopted this 1st day of May, 2023.
rad M. Cava. , Mayor
Attest:
Trish Gleason, Assistant, City Clerk
#135-23