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Agreement with Chris Richard for Housing TIF incentives of $10,000 per Low-Income Unit CreatedCity of Dubuque City Council Meeting Action Items # 09. Copyrighted June 5, 2023 ITEM TITLE: Agreement with Chris Richard for Housing TIF incentives of $10,000 per Low -Income Unit Created SUMMARY: City Manager recommending City Council approve city support in the amount of $110,000 in housing TI F funds as a forgivable loan to Chris Richard to assist with rehabilitation costs associated with the rehabilitation of 11 rental units located at 1706 Central Avenue. SUGGESTED DISPOSITION: ATTACHMENTS: Description MVM Memo RESOLUTION Approving a Development Agreement by and between the City of Dubuque, Iowa and CARich Properties LLC. providing for funding assistance through Housing Tax Increment Financing in the amount of $110,000 for the development of 1706 Central Avenue Suggested Disposition: Receive and File; Adopt Resolution(s) Staff Memo Resolution Approving Agreement Application for Housing TI F Agreement Type City Manager Memo Staff Memo Resolutions Supporting Documentation 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: Agreement with Chris Richard for Housing TIF incentives of $10,000 per Low -Income Unit Created DATE: June 1, 2023 Housing & Community Development Director Alexis Steger is recommending City Council approve city support in the amount of $110,000 in housing TIF funds as a forgivable loan to Chris Richard to assist with rehabilitation costs associated with the rehabilitation of 11 rental units located at 1706 Central Avenue. CARich Properties LLC is the first developer to take advantage of this new $10,000 per unit created that is affordable, incentive provided by Housing TIF. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen LVA14NLVAWAi Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Alexis Steger, Housing & Community Development Director THE CITY OF DuB TE Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Alexis M. Steger, Housing & Community Development Director DATE: May 31, 2023 Dubuque MI-Awriu 911y 'MTkMPlCh'IC IFM,I F. 2007.2012 2013.2017 RE: Agreement with Chris Richard for Housing TIF incentives of $10,000 per Low -Income Unit Created Background Chris Richard is requesting Housing Tax Increment Financing (TIF) funding in the amount of $110,000 to assist with rehabilitation costs associated with the rehabilitation of 11 rental units located at 1706 Central Avenue. In September 2022 the City Council passed new incentives to encourage developers to create new affordable housing units. One of these incentives was funding in the amount of $10,000 per unit created that was affordable according to HUD guidelines of affordable to those make 80% or less of the Area Median Income. The funding for this program is provided by Housing TIF. Discussion CARich Properties LLC is the first developer to take advantage of this new $10,000 per unit created that is affordable, incentive provided by Housing TIF. The City of Dubuque is committed to providing safe, healthy and affordable rental opportunities throughout the City. 1706 Central Avenue needs significant rehabilitation and is part of the Central Avenue Corridor that is a City Council priority. These units have been vacant due to their condition and this rehabilitation will put them back on the rental market as low-income housing opportunities that accept Housing Choice Vouchers. The agreement requires these units remain affordable for a period of at least ten years. The owner will be required to certify the affordability each year with the City of Dubuque Housing & Community Development Department during that 10-year period. The total estimated cost of rehabilitation is $2,750,000. The property owner, Chris Richard, has applied for other city grants in the amount of $35,000 and will be able to take advantage of the Urban Revitalization/Renewal area tax abatement. Other funding sources include Federal and State historic tax credits, workforce housing tax credit, greyfield/brownfield tax credit and grants from Dubuque Main Street. The final funding is provided through a private party conventional loan issued to the developer. Consistency with Unified Development Code Projects requesting City support must be zoned for proposed use prior to receiving a financial commitment of support from the City. This property does not need to be rezoned for this project. Projects requesting City support must be compliant with historic preservation regulations for proposed use prior to receiving a financial commitment of support from the City. This project may contain historic preservations efforts, and all requirements will be followed prior to reimbursement for the project. Consistency with City Council Goals & Priorities The City of Dubuque reviews applications for city support to ensure the request is consistent with the City Council Goals & Priorities. This project supports the City Council Goal #2: Vibrant Community: Healthy & Safe and Goal #3: Livable Neighborhoods and Housing: Great Place to Live. Weaved into these goals, the outcome of providing safe, affordable housing options throughout the city. Relocation All units are currently vacant with the exception of a commercial tenant who will vacate the building prior to construction. Source of Income Committee In December 2014, the City Council approved formation of a Source of Income Committee to conduct a two-year study examining the HCV program and its relationship to fair housing, with a goal of identifying ways to enhance fair housing in Dubuque (see Attachment C). In February 2017, the Source of Income Committee ultimately recommended a collective impact approach to adopt and implement a mix of educational, outreach, and financial programs to increase housing provider participation in the HCV program. These recommendations are found in the Comprehensive Plan: Adopt and implement a mix of educational / outreach programs to increase participation in HCV program. Adopt and implement a mix of financial incentives / policies for creation of HCV units throughout community. Based on the Source of Income Committee recommendations, the City now requires housing developers to accept HCV participants in conjunction with approval of an affordable housing development agreement. The owner of the property will be required to follow these guidelines and already accepts Housing Choice Vouchers. Location Affordable housing projects are given a priority for city support if they are located outside an area of concentrated poverty based on the recommendations of the Voluntary Compliance Agreement and U.S. Department of Housing and Urban Development. This project is not outside the area of concentrated poverty and therefore does not meet this objective. Recommendation Staff recommends the City support the efforts of the property owner of 1706 Central Avenue as it meets the goals and priorities of the City Council as well as many other outcomes that the city has identified through the consolidated plan. Chris Richard has proven to be a responsible landlord and has established his want to be a good partner with the City in Economic Development and the cities goals for Economic Prosperity and Livable Neighborhoods & Housing. The property owner already accepts housing choice vouchers and works closely with the Section 8 caseworkers to ensure he is continuing to be an outstanding landlord. Chris Richard is placing significant personal resources into making better units for lower income residents and allowing the units to stay affordable. Action Requested I respectfully request the City Council approve city support in the amount of $110,000 in housing TIF funds as a forgivable loan to Chris Richard for the rehabilitation of 1706 Central Avenue. 3 Prepared by Alexis Steger, mousing & Community Devel., 350 W. 61h St., Suite 312, (563) 690-6072 Return to Adrienne N. Breitfelder, City Cleric, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 186-23 APPROVING A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE, IOWA AND CARICH PROPERTIES LLC. PROVIDING FOR FUNDING ASSISTANCE THROUGH HOUSING TAX INCREMENT FINANCING IN THE AMOUNT OF $110,000 FOR THE DEVELOPMENT OF 1706 CENTRAL AVENUE Whereas, it is the determination of the City Council that approval of the Development Agreement, for development of the Property at 1 706 Central Avenue by CARich Properties LLC 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 between the City of Dubuque and CARich Properties, a copy of which is attached hereto, 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 5th day of June, 2023. .• 114 1 1.• • Attest: Adrienne N. Breltfelder, City Clerk Requesting City Support for Housing Development Projects 1706 Central Ave. 1) Location of Project: The Project is located on the South East corner of the 1700 Block of Central Avenue. A completed project will bring 11 quality and affordable units to an area in need of them. The renovation of the commercial space will hopefully draw new businesses to the Central Avenue Corridor and provide services to people living in the area. This project will also be utilizing State and Federal Historic Tax Credits. The Part 1 has already been approved and the Part 2 has been submitted. We are anticipating an approval very soon. This will ensure that historic preservation standards are met. 2) Legal Description: Parcel ID: 1024261008 S 14' OF S 14'2" OF SM 1/5 CITY LOT 440 & S 1/5 CITY LOT 440 (Taken from accessor website) See attachment A for map. 3) Description of Project and Proposed Improvements: a. Number and type of units proposed a. Mixed -use b. 7-1 bedroom units, 4-2 bedroom units c. Workforce and affordable housing b. Target population a. Units will be marketed to low/moderate income tenants. c. Along with the multiple websites we advertise our vacancies, we intend on marketing our units through the City of Dubuque housing website and will work with organizations such as ECIA and the VNA to reach non-English speaking, non -majority and other populations. d. Amenities and support services N/A e. Property management a. While there is no on -site manager, Chris Richard and CARICH Properties office is in the building next door. b. We have a maintenance, cleaning or management person at our properties on a weekly basis. c. There are no outside entities other than the City of Dubuque planned to inspect the property. f. Will the project accept housing choice vouchers? a. We intend on accepting housing choice vouchers. We own multiple properties in the City of Dubuque. See Attachment B. g. This project fits into many of the City of Dubuque goals for 2022-2024. 1) It helps with the city workforce retention and attraction by creating quality and affordable housing, as well as new commercial space that could provide a variety of services, retail or entertainment. 2) Central Avenue Revitalization Plan —This property is an important piece of revitalizing Central Avenue. Its location, size and historic importance are all reasons to restore this building. Along with directly helping revitalize Central Avenue it will hopefully draw other developers to invest in other buildings with the neighborhood. 3) This project will help with poverty prevention and reduction by creating new quality and affordable units. Working with outreach programs, the homeless or at risk of being homeless will have new options with these units. 4) Current Valuation of Property: 2023 Assessed Value Land - $46,900 Building - $94,430 Dwelling - $4970 5) Anticipated Impact of Improvements: A. The impact of the improvements will make the assessed value of the building go up based on the scope of work and quality of the final product. B. The quality of life for residents and the neighborhood will be impacted positively with the addition of these units. They will be affordable and of very high quality. The improvements on the first floor commercial, allows for new business to come to the area and serve the neighborhood needs. C. We feel Central Avenue, the City of Dubuque, current and future residents and businesses of the downtown area will all benefit from this project. 6) Zoning and Historic Preservation Reviews: a. Zoning Classification: The current zoning of the property is appropriate for the project. b. Zoning Regulations: No variance is needed for this project. c. Historic Preservation: This project will be utilizing Historic Tax Credits so all work will be approved by the State Historic Preservation Office. 7) Engagement a) Property Ownership and Neighborhood Participation: 1. We request the names and addresses of the neighbors from the City of Dubuque. 2. We will hold a meeting with the required neighbors willing to attend at my office located at 1732 Central Ave. b) Review by Boards and Commisions: 1. N/A 2. N/A 3. N/A 8) Acquisition of City Property: We do not request an acquisition of City Property or an easement. 9) Relocation: No families or individuals will be displaced as a result of this project. All residential units in the building are currently vacant and have been for quite some time. There is currently one business located on the first floor of the building, a tavern, Next Phase. They are currently on a month -to -month lease and will have to move out of space. We will give as much notice as possible when we know the project is a go. 10) Funding Sources The funding sources I will identify below include some funding which we are currently applying for. Those sources are not currently promised to the project. This funding would put the project very close to being feasible. Total Project Cost - $2,750,000 Conventional Loan - $800,000 State Historic Tax Credit - $540,000 Federal Historic Tax Credit - $382,000 Workforce Housing Tax Credit - $141,000 Greyfield/Brownfield Tax Credit - $168,000 City Triple Grant - $35,000 Central Ave Forgivable Loan - $110,000 Dubuque Main St. Fagade Grant - $2500 Dubuque Main St. Swap Grant - $130,000 Main St. Challenge Grant - $100,000 Deferred Developer Fee - $120,000 Total - $2,528,500 11) Economic Justification: I will attach a spreadsheet showing cashflow. This was used with my bank and the maximum loan amount they will allow is $800,000. Without this funding and the others listed the project will not work. Attachment B Property List 505 W. 17t" —Single Family 1560 Iowa St. — 7 residential units 1734 Central — 8 residential units, 2 commercial units 1798 Central — 4 residential units, 4 commercial units 1812 Central — 8 residential units, 2 commercial units 278 W. 171h — 30 residential units All of our units currently accept housing choice vouchers and have multiple housing choice tenants. DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE, IOWA AND CARich Properties LLC THIS DEVELOPMENT AGREEMENT (Agreement) dated for reference purposes theme' day of j,; n `' 2023, is made and entered into by and between the City of Dubuque, Iowa (City), and CARich Properties LLC a Wisconsin limited liability company (Developer). WHEREAS, Developer is the owner of the real estate locally known as 1706 Central Avenue, Dubuque, Iowa and legally described as follows (the Property): The South one -fifth and the South 14 feet of the South Middle one -fifth of Out Lot 440 in the City of Dubuque, Iowa WHEREAS, the Property is located in the Greater Downtown Urban Renewal District (the District) which has been so designated by City Council Resolution 104-19 as a slum and blighted area (the Project Area) defined by Iowa Code Chapter 403 (the Urban Renewal Law); and WHEREAS, Developer has undertaken the redevelopment of an eleven (11) unit residential rental property on the Property (the Building) and will be operating the same during the term of this Agreement; and WHEREAS, Developer will make an additional capital investment in building improvements, equipment, and fixtures in the Property (the Project); and WHEREAS, Developer agrees to rent to low or moderate -income families, including those with Housing Choice Vouchers; and WHEREAS, the City Council has identified a need within the community for quality, affordable rental housing; and WHEREAS, pursuant to Iowa Code Section 403.22 Housing Tax Increment Financing funds have limitations on usage for which Developer has agreed to comply; and WHEREAS, the Dubuque City Council believes it is in the best interests of the City to encourage Developer in the development of the Property by providing certain incentives as set forth herein. 9 NOW, THEREFORE, the parties to this Development Agreement, in consideration of the promises, covenants and agreements made by each other, do hereby agree as follows: SECTION 1. REPRESENTATIONS AND WARRANTIES. 1.1 Representations and Warranties of City. In order to induce Developer to enter into this Agreement, City hereby represents and warrants to Developer 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 the time of closing confirming the representations contained herein, in the form attached hereto as Exhibit A. (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. 3 (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. The Developer makes the following representations and warranties: (1) Developer is a limited liability company duly organized under the laws of the State of Wisconsin and validly existing under the laws of the State of Iowa and has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as presently proposed to be conducted, and to enter into and perform its obligations under this Agreement. (2) This Agreement has been duly authorized, executed and delivered by Developer 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 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 shall issue a legal opinion to City, at the time of closing, confirming the representations contained herein, in the form attached hereto as Exhibit B. 51 (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 any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which Developer 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 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 which affects the validity of the Agreement or Developer's ability to perform its obligations under this Agreement. (5) Developer will perform its 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 its best 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 firm commitments for permanent financing for the Project 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 Closing. The closing shall take place on the Closing Date which shall be the 2na day of October, 2023, or such other date as the parties shall agree in writing but in no event shall the Closing Date be later than the 1st day of December, 2023. Consummation of the closing shall be deemed an agreement of the parties to this Agreement that the conditionsof closing shall have been satisfied or waived. 1.4 Conditions to Closing. The closing of the transaction contemplated by this Agreement and all the obligations of Developer 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 to that effect in the form of Exhibit C. (2) Developer shall have the right to terminate this Agreement at any time prior to the consummation of the closing on the Closing Date if Developer determines in its sole discretion that conditions necessary for the successful completion of the 5 Project contemplated herein have not been satisfied in Developer's sole discretion. Upon the giving of notice of termination by Developer to City, this Agreement shall be deemed null and void. (3) Developer 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 Developer's financial ability as City in its reasonable judgment City requires. (5) Developer's counsel shall issue a legal opinion to City confirming the representations contained herein in the form attached hereto as Exhibit B. 1.5 City's Obligations at Closing. At or prior to the 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. Developer must make a capital investment to improve the Property of no less than $2,500,000. The Minimum Improvements must include a minimum of eleven (11) residential rental units. 2.2 [This section intentionally left blank] 2.3 Plans for Construction of Minimum Improvements. 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 Urban Renewal Plan, this Agreement, and all applicable state and local laws and regulations, including but not limited to any covenants, conditions, restrictions, reservations, easements, liens and charges, recorded in the 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. 2.4 Timing of Improvements. Developer hereby agrees that construction of the Minimum Improvements on the Property shall be commenced within sixty (60) days after the Closing Date and shall be substantially completed by October 31, 2024. The time 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, unusual shortages of materials A 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. 2.5 Certificate of Completion. Promptly following the request of Developer upon completion of the Minimum Improvements, City shall furnish Developer with an appropriate instrument so certifying. Such certification (the Certificate of Completion) shall be in form attached as Exhibit J and shall be a conclusive determination of the satisfaction of Developer's obligations to make the Minimum Improvements under this Agreement and completion of the Minimum Improvements by Developer as required by this Agreement. SECTION 3. CITY PARTICIPATION. 3.1 Financial Incentives. The financial incentives set forth in this Section 3 are the only incentives City has agreed to provide Developer. The incentives cannot be modified except by amendment to this Agreement. City is under no obligation to approve any such amendment. 3.2 Housing Tax Increment Financing (TIF) Grant. (1) City will provide Developer a grant of Housing TIF funds of $110,000. (2) Developer acknowledges and understands the usage of Housing TIF funds is governed by Iowa Code Section 403.22. (3) Housing TIF grants are required to provide direct family housing assistance to low or moderate -income families. (4) Low and moderate -income families include families, including single person households, earning no more than eighty percent of the higher of the median family 7 income of the county or the statewide nonmetropolitan area as determined by the latest United States department of housing and urban development, section 8 income guidelines. (5) Developer will provide direct family housing assistance to low or moderate - income families through: a. Accepting Housing Choice Vouchers at the Property. b. Giving low or moderate -income families priority in the application process over non -income qualified families for units at the Property. C. Developer shall strive to reach a goal of 80% occupancy or higher by low or moderate -income families at the Property. (6) Developer agrees to provide annual certifications to the City, on a form provided by the City, related to the income of occupants at the Property. Said certifications shall be submitted to the City by February 1 of each year. (7) The parties recognize there may not be an income qualified family applying for tenancy every time a rental unit is available at the Property. Developer shall make a good faith effort to rent to low or moderate -income families. (8) Developer may be required to show proof of good faith efforts to City, upon request. If, after a good faith effort, Developer is unable to locate a low or moderate -income family to rent an available unit Developer may rent to a family which is not income qualified. (9) The Housing TIF Grant shall be payable from and secured solely and only from the Low or Moderate -Income Housing TIF set-asidefund. 3.3 All of City's obligations under this Agreement, including but not limited to City's Obligation to make a Housing Tax Increment Financing Grant to 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. SECTION 4. COVENANTS OF DEVELOPER. 4.1 Minimum Improvements. The Minimum Improvements shall conform to the City of Dubuque Downtown Design Guidelines. 4.2 [This section intentionally left blank.] 4.3 Books and Records. During the term of this Agreement, Developer shall keep at all times and make available to City upon reasonable request 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 in accordance with generally accepted accounting principles consistently applied throughout the period involved, and Developer shall provide reasonable protection against loss or damage to such books of record and account. 4.4 Real PropertyT. Developer shall pay or cause to be paid, when due, 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. 4.5 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 builder's risk insurance, written on a Completed Value Form in an amount equal to one hundred percent (100%) of the building (including Minimum Improvements) replacement value when construction is completed. Coverage shall include the "special perils" form and developer shall furnish City with proof of insurance in the form of a certificate of insurance. (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 property insurance against loss and/or damage to the building (including the Minimum Improvements) under an insurance policy written with the "special perils" form and in an amount not less than the full insurable replacement value of the building (including the Minimum Improvements). Developer shall furnish to City proof of insurance in the form of a certificate of insurance. (3) The term "replacement value" shall mean the actual replacement cost of the building with 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. (4) Developer shall notify City immediately in the case of damage exceeding $50,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. Net proceeds of any such insurance (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 9 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. 4.6 Preservation of Property. During the term of this Agreement, Developer shall maintain, preserve and keep, or cause others to maintain, preserve and keep, the Minimum Improvements in good repair and working order, ordinary wear and tear accepted, and from time to time shall make all necessary repairs, replacements, renewals and additions. 4.7 Non -Discrimination. In carrying out the project, Developer shall not discriminate against any employee or applicant for employment because of race, religion, color, creed, sex, sexual orientation, gender identity, national origin, age or disability. 4.8 Conflict of Interest. Developer agrees 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 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. 4.9 Non -Transferability. Until such time as the Minimum Improvements are complete (as certified by City under Section 2.5), this Agreement may not be assigned by Developer nor may the Property be transferred by Developer to another party. Thereafter, with the prior written consent of City, which shall not be unreasonably withheld, Developer shall have the right to assign this Agreement, and upon assumption of the Agreement by the assignee, Developer shall no longer be responsible for its obligations under this Agreement. 4.10 No change in Tax Classification. Developer agrees that it will not take any action to change, or otherwise allow, the classification of the Property for property tax purposes to become other than commercial/multi-residential and to be taxed as such under Iowa law. This restriction shall terminate upon the termination of this Agreement. 4.11 Restrictions on Use. Developer agrees for itself, and its successors and assigns, and every successor in interest to the Property or any part thereof, for the duration of this Agreement, that they, and their respective successors and assigns, shall: 10 (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 as a bar/restaurant and upper -story housing, is in full compliance with 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, creed, 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). 4.12 Compliance with Laws. Developer shall comply with all laws, rules and regulations relating to its businesses, other than laws, rules and regulations 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. SECTION 5. EVENTS OF DEFAULT AND REMEDIES. 5.1 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) Transfer of any interest by Developer of the Minimum Improvements in violation of the provisions of this Agreement prior to the issuance of the final Certificate of Completion. (4) Failure by Developer or City to substantially observe or perform any other material covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. 5.2. Remedies on Default by Developer. Whenever any Event of Default referred to in Section 5.1 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 11 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 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) Until issuance of the Certificate of Completion, City shall be entitled to recover from Developer the sum of all amounts expended by City in connection with the funding of the Economic Development Grants to Developer and City may take any action, including any legal action it deems necessary, to recover such amounts from the Developer; (4) City may withhold the Certificate of Completion; or (5) 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. 5.3 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. 5.4 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. 5.5 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. HIP) 5.6 Remedies on Default by City. If City defaults in the performance of this Agreement, Developer 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 to enforce performance and observance of any obligation, agreement, or covenant of City under this Agreement. Developer may suspend their performance under this Agreement until they receive assurances from City, deemed adequate by Developer, that City will cure its default and continue its performance under this Agreement. SECTION 6. GENERAL TERMS AND PROVISIONS. 6.1 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: If to Developer: CARich Properties LLC Attn: Chris Richards 1118 Nealmar Road Platteville, WI 53818 With copy to: Flint Drake Drake Law Firm 300 Main Street, Suite 323 Dubuque, IA 52001 Phone: (563) 582-2000 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. 13t" Street Dubuque IA 52001 or at such other address with respect to either party as that party may, from time to time designate in writing and forward to the other as provided in this Section. 6.2 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of City and Developer and their respective successors and assigns. 6.3 Termination Date. This Agreement and the rights and obligations of the parties hereunder shall terminate on June 5, 2033 (the Termination Date). 13 6A Execution By Facsimile. The parties agree that this Agreement may be transmitted between them by facsimile machine or electronic transmission. The parties intend that the faxed or electronic signatures constitute original signatures and that a faxed or electronically transmitted Agreement containing the signatures (original, electronically transmitted or faxed) of all the parties is binding on the parties. 6.5 Memorandum of Development Agreement. City shall promptly record a Memorandum of Development Agreement in the form attached hereto as Exhibit D in the office of the Recorder of Dubuque County, Iowa. Developer shall pay the costs for so recording. 6.6 Governing Law. The law governing this Agreement shall be that of the State of Iowa. In the event suit is brought by either Party to this Agreement, the Parties agree that venue shall be exclusively vested in Iowa District Court in and for Dubuque County. 6.7 Entire Agreement and Amendments. This Agreement contains all the agreements of the Parties with respect to any matter covered or mentioned in this Agreement, and no other agreement or understanding pertaining to any such matter shall be effective for any purpose. No provision of this Agreement may be amended or added, except by an agreement in writing signed by the Parties. 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 has caused this Agreement to be duly executed on or as of the first above written. CITY OF DUBUQUE, IOWA :.. Attest: vrz Adrienne N. Breitfelder, City Clerk CARICH PROPERTIES, LLC By: Chris Richards, Managing Member 14 (City Seal) STATE OF IOWA SS COUNTY OF DUBUQUE On this U day of JWit'- 20 before me the undersigned, a Notary Public in and for the said County and State, personally appeared Brad M. Cavanagh and Adrienne N. Breitfelder, to me personally known, who, being by me duly sworn, didsay that they arethe Mayor and City Clerk, respectively, of the City of Dubuque, Iowa, amunicipal corporation executing the instrument to which this is attached; that the sealaffixed hereto is the seal of said municipal corporation; that said instrument was signedand sealed on behalf of the City of Dubuque, Iowa, by authority of its City Council; andthat said Mayor and City Clerk acknowledged the execution of said instrument to be thevoluntary act and deed of said City, by it and by them voluntarily aecuted., --�- Notary Public STATE OF IOWA SS COUNTY OF DUBUQUE �•+ i.+ TUSDEE L"Id BL1l5 COMM1551011member $42A79 my Comm. Exp. A- " On this day of 20_, before me the undersigned, a Notary Public in and for the State of Iowa, personally appeared Chris Richards, to me personally known, who, being by me duly sworn, did say that he is Managing Member of CARich Properties ILL. the limited liability company executing the instrument to which this is attached and that as said Managing Member of CARich Properties LLC acknowledged the execution of said instrument to be the voluntary act and deed of said company, by it and by him voluntarily executed. Notary Public I& LIST OF EXHIBITS EXHIBIT A — City Attorney's Certificate EXHIBIT B — Opinion of Developer's Counsel EXHIBIT C — City Certificate EXHIBIT D — Memorandum of Development Agreement EXHIBIT E — Urban Renewal Plan EXHIBIT F — Certification of Completion 16 *:1:1I 3 k r_1 CITY ATTORNEY'S CERTIFICATE 17 Barry A. Lindahl, Esq. Senior Counsel Suite 330, Harbor View Place 300 Main Street Dubuque, Iowa 52001-6944 (563) 583-4113 office (563) 583-1040 fax balesc@a cityofdubuque.org Office Hours: 8:00 AM — 5:00 PM, T-W-Th 8:00 AM — 12:00 PM, F N =1 Dear THE COF DtUB E Masterpiece on the Mississippi (DATE) Dubuque 111•Anenee City 2007.2012 2013.2017 I have acted as counsel for the City of Dubuque, Iowa, in connection with the execution and delivery of a certain Development Agreement between (Developer) 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, Barry A. Lindahl, Esq. Senior Counsel BAL:tIs *:1:113k9 1 OPINION OF DEVELOPER'S COUNSEL 19 Mayor and City Councilmembers City Hall 13th and Central Avenue Dubuque IA 52001 Re: Development Agreement Between the City of Dubuque, Iowa and Dear Mayor and City Councilmembers: We have acted as counsel for . 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 2023. 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 a limited liability company organized and existing under the laws of the State of Iowa and has full power and authority to execute, deliver and perform in full the 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 a 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. To our actual knowledge with no duty to inquire, 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 our actual knowledge with no duty to inquire, 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. 20 This opinion is rendered for the sole benefit of the City of Dubuque and no other party may rely on this opinion. This opinion is rendered and valid as of the date of this letter and we have no duty to update this opinion for any matters which come to our knowledge after the date of this letter. Sincerely, 21 EXHIBIT C CITY CERTIFICATE W) Dubuque THE CITY OF AII•AneHu C01 UBEIIII 2007•2012 Masterpiece on the Mississippi 2013.2017 (DATE) Dear City Manager's Office City Hall 50 West 13t" Street Dubuque, Iowa 52001- 4864 (563) 589-4110 office (563) 589-4149 fax ctymgr@cityofdubuque.org 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 between (Developer) and the City of Dubuque, Iowa (City) dated for reference purposes the day of , 20. On behalf of the City of Dubuque, I hereby represent and warrant to Developer that: (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 23 affects the validity of the Agreement or City's ability to perform its obligations under this Agreement. (6) 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 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. Sincerely, Michael C. Van Milligen City Manager MCVM:jh MEMORANDUM OF DEVELOPMENT AGREEMENT 25 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 CARich Properties LLC. was made regarding the following described premises: The South one -fifth and the South 14 feet of the South Middle one -fifth of Out Lot 440 in the City of Dubuque, Iowa The Development Agreement is dated for reference purposes the day of , 2023, and contains covenants, conditions, and restrictions concerning the sale and 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 , 2023. 26 CITY OF DUBUQUE, IOWA Brad M. Cavanagh, Mayor Attest: Adrienne F. Breitfelder City Clerk STATE OF IOWA ) SS COUNTY OF DUBUQUE ) CARich Properties LLC By Chris Richard, Managing Member On this day of , 20_, before me, a Notary Public in and for the State of Iowa, in and for said county, personally appeared Brad M. Cavanagh and Adrienne F. Breitfelder, to me personally known, who being by me duly sworn did say that they are the Mayor and City Clerk, respectively of the City of Dubuque, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to said instrument is the seal of said Municipal Corporation and that said instrument was signed and sealed on behalf of said Municipal corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. Notary Public, State of Iowa 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 Chris Richard, to me personally known, who, being by me duly sworn, did say that he is Managing Member of CARich Properties LLC, the limited liability company executing the instrument to which this is attached and that as said Managing Member of CARIch Properties LLC, acknowledged the execution of said instrument to be the voluntary act and deed of said company, by it and by him voluntarily executed. Notary Public, State of Iowa 27 URBAN RENEWAL PLAN 9.1 AMENDED and RESTATED URBAN RENEWAL PLAN Greater Downtown Urban Renewal District (Including the former Downtown Dubuque, Ice Harbor, Kerper Boulevard, East 7th Street, Quebecor, Holy Ghost and Dubuque Brewing & Malting Urban Renewal Districts) City of Dubuque, Iowa This Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District traces its beginnings to the merger of the Downtown Urban Renewal Area Project Number Iowa R-15, originally established by Resolution 123-67 by the City Council of the City of Dubuque, Iowa on May 18, 1967, and subsequently amended and restated by Resolution 79-71 on March 15, 1971, by Resolution 73-74 on March 11, 1974, by Resolution 107-82 on May 3, 1982, by Resolution 191-84 on June 25, 1984, by Resolution 371-93 on December 6, 1993, by Resolution 145-94 on May 2, 1994, by Resolution 479-97 on November 17, 1997, by Resolution 476-98 on October 19, 1998 and by Resolution 187-02 on April 1, 2002, with the Ice Harbor Urban Renewal District, originally established by Resolution 403-89 of the City Council of the City of Dubuque, Iowa on December 18, 1989, and subsequently amended and restated by Resolution 241-00 on June 5, 2000, and by Resolution 114-02 on March 4, 2002. The Urban Renewal Plan for the Greater Downtown Urban Renewal District resulting from that merger was later amended by Resolution 170-04 on April 19, 2004, by Resolution 391-06 on August 21, 2006, by Resolution 108-07 on February 201h, 2007, by Resolution 597-07 on December 17, 2007, by Resolution 300-08 on September 2, 2008, by Resolution 393-09 on October 5, 2009, and by Resolution 26-10 on July 19, 2010. On May 2, 2011 the Kerper Boulevard Industrial Park Economic Development District originally established by Resolution 274-94 on August 15, 1994, and the East 7ch Street Economic Development District, originally established by Resolution 144-97 on April 7, 1997, were merged into and became part of the Greater Downtown Urban Renewal District, pursuant to Resolution 155-11 approved on May 2, 2011. The Quebecor Economic Development District, originally established by Resolution 479-02 on September 16, 2002, was merged into and became part of the Greater Downtown Urban Renewal District pursuant to Resolution 271-12 approved on October 1, 2012. The Urban Renewal Plan for the Greater Downtown Urban Renewal District resulting from that merger and amendment was thereafter amended and restated by Resolution 173-13 on June 03, 2013. The Holy Ghost Urban Renewal District, originally established by Resolution 234-11 on July 18, 2011, was merged into and became part of the amended and restated Greater Downtown Urban Renewal District pursuant to Resolution 178-14 approved on June 16, 2014. The Urban Renewal Plan for the Greater Downtown Urban Renewal District resulting from that merger was later amended by Resolution 372-15 approved on October 19, 2015. The Dubuque Brewing & Malting Urban Renewal District, originally established by Resolution 29 301-08 approved on September 2, 2008, and subsequently amended and restated by Resolution 170-13 approved on June 3, 2013, was merged into and became part of the Greater Downtown Urban Renewal District pursuant to Resolution 401-16 approved on November 21, 2016. By Resolution 90-17, adopted on March 6, 2017, the City Council approved and adopted an Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District. The Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal District was subsequently amended and restated by Resolution 206-17, adopted on June 5, 2017, by Resolution 381-17, adopted on December 4, 2017, and by Resolution _-19, adopted on , 2019. 30 W:/:11 Oki; CERTIFICATE OF COMPLETION 31 Prepared by/Return to: Jill Connors, City of Dubuque, 50 W. 13th Street, Dubuque, IA 52001 (563) 589-4393 CERTIFICATE OF COMPLETION WHEREAS, the City of Dubuque, Iowa, a municipal corporation (the "Grantor"), has granted incentives to CARich Properties LLC (the "Grantee"), in accordance with a Development Agreement dated as of [Date] (the "Agreement"), by and among the Grantor, and the Grantee (collectively, the "Agreement"), certain real property located within the Greater Downtown Urban Renewal District of the Grantor and as more particularly described as follows: The South one -fifth and the South 14 feet of the South Middle one -fifth of Out Lot 440 in the City of Dubuque, Iowa (the "Development Property"); and WHEREAS, said Agreement incorporated and contained certain covenants and conditions with respect to the rehabilitation of the Development Property, and obligated the Grantee to construct certain Minimum Improvements (as defined therein) in accordance with the Agreement; and WHEREAS, the Grantee 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 the Grantor to permit the execution and recording of this certification; and NOW, THEREFORE, pursuant to Section 2.5 of the Agreement, this is to certify that all covenants and conditions of the Agreement with respect to the obligations of the Grantee, and its successors and assigns, to construct the Minimum Improvements on the Development Property have been completed and performed by the Grantee to the satisfaction of the Grantor and such covenants and conditions are hereby satisfied. 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 as set forth in said Agreement, and that the Agreement shall otherwise remain in full force and effect. (SEAL) CITY OF DUBUQUE, IOWA M Michael C. Van Milligen, City Manager 32 STATE OF IOWA ) ) SS COUNTY OF DUBUQUE ) On this day of , 2019, before me, the undersigned, a notary public in and for the State of Iowa, personally appeared and acknowledged the execution of the instrument to be his/her voluntary act and deed. Notary Public in and for Dubuque County, Iowa 33