Setting a Public Hearing for the Fourth Amendment to Development Agreement Between the City of Dubuque and Port of Dubuque LLC Copyrighted
August 7, 2023
City of Dubuque Items to be set for Public Hearing #
City Council Meeting 02.
ITEM TITLE: Setting a Public Hearing forthe FourthAmendmentto Development
Agreement Between the City of Dubuque and Port of Dubuque LLC
SUM MARY: City Manager recommending City Council adopt the attached resolution
to set a public hearing on August 21, 2023, on the attached Fourth
Amendment to Development Agreement between the City of Dubuque
and Port of Dubuque LLC.
RESOLUTION Fixing the Date for a Public Hearing of the City Council
of the City of Dubuque, lowa on the Fourth Amendment to Development
Agreement Between the City of Dubuque, lowa and Port of Dubuque
LLC Which Provides forthe Proposed Awarding of Housing Incentive
Acquisition Grants, and Providing for the Publication of Notice Thereof
SUGGESTED Receive and File;Adopt Resolution(s), Set Public Hearing forAugust
DISPOSITION: 21, 2023Suggested Disposition:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution to Set Public Hearing Resolutions
Notice of Hearing Supporting Documentation
Fourth Amendment to DA Supporting Documentation
Dubuque
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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 for the Fourth Amendment to
Development Agreement Between the City of Dubuque and Port of
Dubuque LLC
DATE: August 2, 2023
Economic Development Director Jill Connors is recommending City Council adopt the
attached resolution to set a public hearing on August 21, 2023, on the attached Fourth
Amendment to Development Agreement between the City of Dubuque and Port of
Dubuque LLC.
The fourth amendment has been prepared, which not only extends the closing date to
October 31, 2023, but now also includes a housing incentive acquisition grant which will
reduce the Developer's acquisition cost of the land by $20,000 for every residential unit
created. We believe that this additional financial assistance to the project will move this
project (which was initially proposed in late 2019)forward. This meets City Council's goal
of more aggressively incentivizing the creation of housing in the community.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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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 ' ' 1300 Main Street
All-America City Dubuque,lowa 52001-4763
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Resolution Setting a Public Hearing for the Fourth Amendment to
Development Agreement Between the City of Dubuque and Port of
Dubuque LLC
DATE: August 1, 2023
INTRODUCTION
This memorandum requests City Council set a public hearing for the approval of a Fourth
Amendment to Development Agreement Between the City of Dubuque and Port of
Dubuque LLC.
BACKGROUND
The City of Dubuque and Merge, LLC, an lowa limited liability company doing business
as Merge Urban Development Group, entered into a Development Agreement dated
November 18, 2019 with respect to the development of property in the North Port.
On February 13, 2020, pursuant to an Assignment of Development Agreement, Merge,
LLC as Assignor assigned all of its right, title, and interest in, to, and under the Agreement
to Port of Dubuque LLC as Assignee, and Assignee accepted, assumed, and agreed to
perform all of the obligations and liabilities of Assignor under the Development Agreement
as if it were the original party to the Development Agreement.
On April 6, 2020, a First Amendment to Development Agreement extended the closing
date to October 1, 2020 due to financing and material delays resulting from the COVID-
19 pandemic.
On November 16, 2020 a Second Amendment to Development Agreement provided the
Developer additional time to apply for an lowa Economic Development Authority (IEDA)
Workforce Housing Tax Credit Award and an lowa Redevelopment Tax Credit Award for
Brownfield or Grayfield Sites in the 2021 and 2022 application rounds (in the event the
2021 round was not successful). As such, the Second Amendment also extended the
closing date to December 31, 2022. This amendment also increased the number of years
of economic development grants (TIF rebates) from 10 years to 15 years, to facilitate the
project.
On May 15, 2023 a Third Amendment revised the closing date to July 31, 2023 to
accommodate for the Developer having to put the project out for bid a second time in
order to get better pricing on the project.
DISCUSSION
The Developer has now requested that the closing date be rescheduled to October 31,
2023.
A fourth amendment has been prepared, which not only extends the closing date to
October 31, 2023, but now also includes a housing incentive acquisition grant which will
reduce the Developer's acquisition cost of the land by $20,000 for every residential unit
created. We believe that this additional financial assistance to the project will move this
project (which was initially proposed in late 2019)forward. This meets City Council's goal
of more aggressively incentivizing the creation of housing in the community.
RECOMMENDATION/ ACTION STEP
Based on this project's alignment with the City Council's goal of having a Robust Local
Economy and Livable Neighborhoods and Housing, I recommend the City Council adopt
the attached resolution to set a public hearing on August 21, 2023 on the attached Fourth
Amendment to Development Agreement.
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Prepared by: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4393
Return to: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 251-23
FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA ON THE FOURTH AMENDMENT TO DEVELOPMENT
AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND PORT OF DUBUQUE
LLC WHICH PROVIDES FOR THE PROPOSED AWARDING OF HOUSING
INCENTIVE ACQUISITION GRANTS, AND PROVIDING FOR THE PUBLICATION OF
NOTICE THEREOF
Whereas, the City of Dubuque, Iowa (City) and Merge, LLC entered into a
Development Agreement dated the 18th day of November, 2019, as amended by First
Amendment dated the 6th day of April, 2020, which provided among other things for the
issuance of urban renewal tax increment revenue grant obligations (the Grants); and
Whereas, Merge, LLC assigned the Development Agreement to Port of Dubuque,
LLC on the 13th day of February, 2020, with the consent of City in a Second Amendment
dated November 16, 2020; and
Whereas, a Third Amendment to Development dated May 15, 2020, extended the
closing date of the agreement to July 31, 2023; and
Whereas, City and Port of Dubuque, LLC. now desire to further amend the
Development Agreement as set forth in the attached Fourth Amendment, subject to the
approval of the City Council; and
Whereas, the City Council has tentatively determined that it would be in the best
interests of City to approve the Fourth Amendment to Development Agreement; and
Whereas, before said Fourth Amendment may be approved, Chapter 403 of the
Code of Iowa requires that the City Clerk publish a notice of the proposal and of the time
and place of the meeting at which the City Council proposes to take action thereon and
at which meeting the City Council shall receive oral and/or written objections from any
resident or property owner of said City to such proposed action.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. 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 approve the Fourth Amendment, to be held on the 21st day of August,
2023 in the form attached hereto.
Section 2. The City Council will meet at said time and place for the purpose of taking
action on the matter of approval of the Fourth Amendment to Development Agreement,
providing for Housing Incentive Acquisition Grants in an amount not to exceed the Purchase
Price, and extends the Closing Date to October 31, 2023.
Section 3. 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 4. That the notice of the proposed action shall be in substantially the form
attached hereto.
Passed, approved, and adopted this 7th day of August, 2023.
Braa nagh, Mayor
Attest:
c -Ct-6,102e)),
Trish L. Gleason, Assistant City Clerk
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CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque,
lowa, will hold a public hearing on the 21 St day of August, 2023 at 6:30 p.m. in the Historic
Federal Building, 350 West 6th Street, second floor, Dubuque, lowa.
At said meeting the City Council proposes to take action on the approval of the Fourth
Amendment to Development Agreement between the City of Dubuque, lowa and Port of
Dubuque LLC, as amended, which provided for the issuance of 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 Greater powntown Urban Renewal
District, consisting of the funding of economic development grants to Port of Dubuque,
LLC. The Fourth Amendment provides housing incentive acquisition grants and extends
the closing date to October 31, 2023.
Copies of supporting documents for the public hearing are on file in the City Clerk's Office,
City Hall, 50 W. 13th St., Dubuque, lowa, and may be viewed during normal working hours.
Agendas can be accessed at https://www.cityofdubuque.orq/Aqendas.
Written comments regarding the above public hearing should be submitted to the City
Clerk's Office, 50 W. 13t" St., Dubuque, IA 52001, ctyclerk cityofdubuque.org, on or
before said time of public hearing. At said time and place of public hearings all interested
citizens and parties will be given an opportunity to be heard for or against said proposal.
Individuals with limited English proficiency, vision, hearing or speech impairments or
requiring special assistance should contact the City Clerk's Office at (563) 589-4100,
TDD/TTY (563) 690-6678, ctyclerk cityofdubuque.org as soon as feasible. Deaf or hard-
of-hearing individuals can use Relay lowa by dialing 711 or (800) 735-2942.
Published by order of the City Council given on the 7th day of August 2023.
Trish L. Gleason, Assistant City Clerk
FOURTH AMENDMENTTO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
PORT OF DUBUQUE LLC
THIS FOURTH AMENDMENT TO DEVELOPMENT AGREEMENT (the "Fourth
AmendmenY'), dated for reference purposes the day of , 2023, is
made and entered by and between the CITY OF DUBUQUE, IOWA, a municipality ("City")
and PORT OF DUBUQUE LLC, a Delaware limited liability company, as assignee of
Merge, LLC, an lowa limited liability company, doing business as Merge Urban
Development Group ("Developer°) (City and Developer are hereinafter sometimes
collectively referred to as the "parties").
WHEREAS, City and Merge, LLC, an lowa limited liability company doing business
as Merge Urban Development Group entered into that certain Development Agreement
dated November 18, 2019 (the "AgreemenY'), as amended, with respect to the matters
specified therein; and,
WHEREAS, on February 13, 2020, pursuant to an Assignment of Development
Agreement, Merge, LLC as Assignor assigned ali of its right, title, and interest in, to, and
under the Agreement to Port of Dubuque LLC as Assignee, and Assignee accepted,
assumed, and agreed to perform all of the obligations and liabilities of Assignor under the
Agreement as if it were the original party to the Agreement; and,
WHEREAS, on May 15, 2023, the parties agreed to amend the Agreement to
modify the closing date; and
WHEREAS, the parties desire to further modify the Agreement as hereinafter
provided extending the Closing Date and providing additional incentives to Developer.
NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the receipt and sufficiency of which are acknowledged by the parties, the parties agree
as follows:
1 . Section 5 of the Development Agreement is hereby amended to read as
follows:
SECTION 5. CLOSING. The closing of the purchase and sale of the Property (the
"Closing") shall take place on October 31, 2023 or such other date as the parties
shall agree in writing (the date on which the Closing occurs shall be defined in this
Agreement as the "Closing Date"). Exclusive possession of the Property shall be
delivered on the Ciosing Date, in current condition and in compliance with this
Agreement. All of City's representations and warranties regarding the Property in
Section 2 shall survive the Closing.
i
2. Section 11 of the Development Agreement is hereby amended to read as
follows:
SECTION 11. CITY PARTICIPATION.
11.1 Housing Incentive Acquisition Grant to Developer. For and in
consideration of Developer's obligations hereunder to construct the Minimum
Improvements, City agrees to make Acquisition Grants (defined below) to Developer on
the Closing Date in the following amounts:
(1) The housing incentive acquisition grant for the Property (the "Property
Acquisition GranY') shall be the sum of Twenty Thousand Dollars ($20,000) for
every new residential rental unit created but not to exceed the Purchase Price for
a total Property Acquisition Grant in the amount of approximately $807,842.52.
The actual and final amount of the Property Acquisition Grant shall be determined
using the actual acreage shown on the Plat.
(2) The housing incentive acquisition grant for the Easements (the "Easements
Acquisition GranY') shall be the sum of Twenty Thousand Dollars ($20,000) for
every new residential rental unit created but not to exceed the Purchase Price for
a total Easement Acquisition Grant in the amount of approximately One Hundred
Sixty-Two Thousand Two Hundred Thirty and 67/100 Dollars ($162,230.67). The
actual and final amount of the Easements Acquisition Grant shall be determined
using the actual acreage shown on the Plat.
(4) The parties agree that the Acquisition Grants shall be payable in the form
of credits favoring Devefoper at time of Closing with the effect of directly offsetting
a portion of the Purchase Price obligation of Developer.
3. All other terms of the Development Agreement, as amended, shall remain
in full force and effect.
CITY OF DUBUQUE, IOWA
By:
Brad M. Cavanagh, Mayor
ATTEST:
z
Adrienne N. Breitfelder, City Clerk
DEVELOPER
PORT OF DUBUQUE LLC
A Delaware limited liability company
By: OZ Dubuque LLC
A Delaware limited liability company
Its Manager
By: Merge, LLC
An lowa limited liability company
Its Manager
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BY: ��- _�
Brent Dahlstrom, Manager
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