Proposed Downtown Rehabilitation GrantAward for 1047 Bluff Street Copyrighted
August 21, 2023
City of Dubuque Consent Items # 09.
City Council Meeting
ITEM TITLE: Proposed Downtown Rehabilitation GrantAward for 1047 Bluff Street
SUM MARY: City Manager recommending City Council approve a Grant Agreement
by and between the City of Dubuque, lowa and Forward Investments
Group, LLC for the rehabilitation of 1047 Bluff Street in the amount of
$55,000 - $35,000 for Fa�ade, etc. and $20,000.
RESOLUTION Approving a Grant Agreement Between the City of
Dubuque, lowa, and Forward Investments Group LLC forthe
Redevelopment of 1047 Bluff Street
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
Grant Agreement Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proposed Downtown Rehabilitation Grant Award for 1047 Bluff Street
DATE: August 17, 2023
Economic Development Director Jill Connors is recommending City Council approve a
Grant Agreement by and between the City of Dubuque, lowa and Forward Investments
Group, LLC for the rehabilitation of 1047 Bluff Street in the amount of $55,000 - $35,000
for Fa�ade, etc and $20,000.
The Downtown Rehabilitation Loan Program provides several incentives from the
Economic Development Department for the rehabilitation of historic buildings in greater
downtown.
The State Historic Preservation Office has approved the design plans for the project.
The building owner, Forward Investments Group, LLC, plans to create three rental units,
two of which are eligible for the housing creation incentive. Funding the Downtown
Housing Incentive, and Fa�ade Grant would align with the City Council's goal of Vibrant
Community: Healthy and Safe.
In the near future an amendment will be recommended to City Council to reflect the new
housing incentives available in the Downtown Urban Renewal District.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mich el 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
U� � n'�N",`�""""�� Office(563)589-4393
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TTY(563)690-6678
� http://www.cityofdubuque.org
2007*2012�2013
Masterpiece on the Mississippi zoi�*zoi9
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Proposed Downtown Rehabilitation Grant Award for 1047 Bluff Street
DATE: August 15, 2023
INTRODUCTION
This memo presents a resolution approving a Grant Agreement by and between the City
of Dubuque, lowa and Forward Investments Group, LLC for the rehabilitation of 1047
Bluff Street.
BACKGROUND
The Downtown Rehabilitation Loan Program provides several incentives from the
Economic Development Department for the rehabilitation of historic buildings in our
greater downtown.
This program has had a positive impact on the appearance and livability of our
downtown, which leads to a more attractive business and residential environment. The
Economic Development Department also finds these programs to be great tools for
attracting and retaining a quality workforce for our businesses.
DISCUSSION
For this property, staff have performed a "Good Neighbor Inquiry" with Building
Services, Engineering, Finance, Health, Housing, Legal, Planning, Police, Public Works,
and Utility Billing for any concerns based on these or other properties owned by the
applicant. The Good Neighbor Inquiry on this owner and property produced no issues.
Application received May 16, 2022 for the Downtown Housing Incentive Grant and
Fa�ade Grant. In the time since submission, the State Historic Preservation Office has
approved the design plans for the project.
The building owner, Forward Investments Group, LLC, plans to create three rental units,
two of which are eligible for the housing creation incentive. Funding the Downtown
Housing Incentive, and Fa�ade Grant would align with the City Council's goal of Vibrant
Community: Healthy and Safe.
BUDGET IMPACT
CIP USE CURRENT RECOMMENDED REMAINING
BALANCE PROJECTFUNDING BALANCE
6052000002 FA�ADE, ETC. $649,758 $35,000 $614,758
6052000004 HOUSING $970,730 $20,000 $950,730
This takes into consideration all encumbrances and previous balances from all the
consolidated CIP budgets.
The project is also located in the downtown urban revitalization area and will be eligible
to apply for tax abatement on the increased value of the property.
I recommend funding the grants at $35,000 maximum from CIP 6052000002 and
$20,000 maximum from CIP 6052000004, for a total of$55,000.
RECOMMENDATION/ ACTION STEP
I recommend approval of the proposed grant award in the amount detailed above.
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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. 263-23
APPROVING A GRANT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA,
AND FORWARD INVESTMENTS GROUP LLC FOR THE REDEVELOPMENT OF 1047
BLUFF STREET
Whereas, Forward Investments Group LLC is the owner of the building at 1047
Bluff Street in the City of Dubuque, Iowa (the "Development Property") legally described
as:
Lots 3 and 4 of the Subdivision of the East Part of Out Lot 655 in the City of
Dubuque, Iowa, according to the recorded plat thereof, subject to easements,
agreements and restrictive covenants of record and local and municipal zoning
ordinances; and
Whereas, Forward Investments Group LLC has applied to the City of Dubuque
Economic Development Department(the "City")for a Downtown Housing Incentive Grant,
a Fagade Grant, a Planning & Design Grant, and a Financial Consultant Grant (the
"Grants") for the rehabilitation of the Development Property (the "Project"); and
Whereas, the Project is eligible for the Grants; and
Whereas, City and Forward Investments Group LLC has tentatively entered into a
Grant Agreement for the Development Property (the "Grant Agreement"), a copy of which
is attached hereto; and
Whereas, it is the determination of the City Council that approval of the Grant
Agreement for redevelopment of the Development Property by Forward Investments
Group LLC, according to the terms and conditions set out in the Grant 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 Grant Agreement between the City of Dubuque and Forward
Investments Group LLC is hereby approved.
Section 2. That the Mayor is hereby authorized and directed to execute the
Grant 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 Grant Agreement as herein approved.
Passed, approved, and adopted this 21st day of August, 2023.
ra ava #, ayor
Attest:
Trish L. Gleason, Assistant City Clerk
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GRANT AGREEMENT '
FOR THE DOWNTOWN REHABILITATION GRANT PROGRAM
BETWEEN I,
THE CITY OF DUBUQUE, IOWA ii
AND I
FORWARD INVESTMENTS GROUP LLC
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THIS GRANT AGREEMENT (Yhe "AgreemenY"), dated for reference purposes the ,
day of August, 2023, by and between the City of Dubuque, lowa a manicipality
establlshed pursuant to the Gode of lowa ("City") and acting under the authorization of
Chapter 403 of the Code of lowa (the "Urban Renewal AcY') and Forward Investments
Group LLC ("Grant Recipient"). '
WHEREAS, in furtherance of the objec#ives of the Urban Renewal Act, City has
undertaken a program for the development and redevelopment of an area in the city
known as the Greater powntown Urban Renewal District(the"DistricY'), an urban renewal
area established pursuant to the Urban Renewal Act, and in connection therewith has
established the Downtown Rehabilitation Grant Program (the "Program"); and
WHEREAS, Grant Recipient intends to complete the renovation and rehabilitatfon
of a building located on property within the District lacally known as 1047 Bluff Street,
Dubuque, lowa (the "Development Property"), I�gally described as
Lots 3 and 4 of the Subdivision of the East Part of Out Lot 655 in the City
of Dubuque, lowa, according to the recorded plat thereof, subject to
easements, agreements and restrictive covenants of record and local and
municipal zoning ordinances
which will include various improvements to the building, as more specifically detailed in
Grant Recipient's application to the Program (the "ProjecY'); and
WHEREAS, Grant Racipient has applied for a Downtown Mousing incentive Grant,
a Fa�ade Grant, a Planning & Design Grant, and a Financial Consultant Grant for the
Project from City under the Program in amounts collecfively up to Fifty-Five Thousand
Dollars ($55,000) (the "GranY'), the terms of which are set forth in this Agreement; and
WHEREAS, the City Council believes that the development of the Development
Property pursuant to this Agreement and the fulfillment generally of this Agreement, are
in the vital and best interests of City and in accord with the public purposes and provisions
of the applicable state and local laws and requirements underwhich the Project has been
undertaken and is being assisted.
NOW THEREFORE, IN CONSIDERATION OF THE PROMISES AND
OBLIGATIONS OF THE PARTIES HERETO, EACH OF THEM DOES HEREBY
CQVENANT AND AGREE WITH THE OTHER AS FOLLOWS:
07252023ba1
SEC710N 7. MINIMUM IMPROVEMENTS.
1.1. ftequired Minimum Imorovements. Grant Recipient shall improve the Development
Property as follows:
Fagade improvements includinc� rehabilitation of doors and windows,
installation of new structural steel framing system and drip edge that is both
weather resistant and meets all appiicable code, and the creation of two
new residential rental units
(the "Minimum Improvements"). The Minimum Improvements shall be completed in
substantial conformity with the scope and scale described in Grant RecipienYs Application
to the Program, attached hereto as Exhibit B.
1.2. Timina of Minimum Improvements. Grant Recipient shall begin construction of the
Minimum Improvements by October 1, 2023 and complete construction of the Minimum
Improvements by December 31, 2024. City shall determine in its sole discretion,following
an inspection by City's Building Services Department and/or Planning Department, when
the Minimum Improvsments have been completed. In order to be considered completed,
the Minimum Improvements must be constructed in accordance with the terms of this
Agreement, in compliance with fhe regulations of the Program, and in substantial
conformity with Grant RecipienYs Application Design Letter attached hereto as Exhibit A.
1.3 Certificate of Completlon. Prornptly following the request of Grant Recipient and
upon determination by the City Manager that the Minimum Improvements have been
completed as required by this Agreement, the City Manager shall furnish Grant Recipient
with a Certificate of Completion in recordable form which shall be a eonclusive
determination of the satisfaction and termination of the agreements and covenants in this
Agreement.
1.4. Construction of Minimum Improvements. Grant Recipient shall camplete all work
witM respect to construction of the Minimum Improvements in conformance with all
requirements of the Program, this Agreement, and all federal, state, and locai laws,
ordinances, and regulakions.
1.5. InsuranCe.
(1) Grant Recipient 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, naming City as loss payee, 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 Grant Recipient
shall furnish City with proof of insurance in the form of a certifica#e of insurance.
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(2) Upon completion of construction of the Minimum Improvements and up to �
the Termination Date, Developer sf�all maintain, or cause to be maintained, at its �
cost and expense property insurance against loss and/or damage to the building i
(including the Minimum Improvemen#sj 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 tha Minimum Improvements), naming City as loss �
payee. Developer shall furnish to City proof of insurance in the form of a certificate �i
ofinsurance, il
(3) The term "replacemenk 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) Grant Recipient shall notify City immediately in the case of damage I
exceeding $50,000.00 in amount to, or destruction af, the Development Property i
or any portion thereof resu�ting from fire or other casualty. Net proceeds of any i
such insurance (the "Net Proceeds"), shall be paid directly to Grant Recipient as �
its interests may appear, and Grant Recipient shall forthwith repair, recdnstruct '�,
and restore the Development Property to substantially the same or an improved '�
condition or value as it existed prior to the event causing such damage and, to the �
extent necessary to accomplish suah repair, reconstruction and restoration, Grant �I
Recipient shall apply the Net Proceeds of any insurance relating to such damage !,
received by Grant Recipient to the payment or reimbursement of the costs thereof, li
subject, however, to the terms of any mortgage encumbering title to the Property, '
as its interests may appear. Grant Recipient shall complete the repair,
reconstruction and restoration of the Development Property whether or not the Net
Proceeds of insurance received by Grant Recipient for such purposes are
sufficient.
1.6. Closinq,The closing shall take place on the Closing Date which shall be the I,
day of , 2023, or such other date as the parties shall agree in writing but in
no event shall the Closing Date be later than the 1 st day of October, 2023, '
Consummation of the closing shall be deemed an agreement of the parties to this ',
Agreement that the conditions of closing shall have been sa#isfied or waived.
1.7. Conditions ta Ciosing. The closing of the ttansaction contemplated by this
Agreement and all the obligations of Grantee under this Agreement are subject to
fulfiliment, on or before the Closing Date, of the following conditions:
(1) Grant Recipient shall have the right to terminate this Agreement at any time
prior to the consummation of the closing on the Closing Date if Grantee determines
in its sole discretion that conditions necessary for the successful completion of the
Project contemplated herein have not been satisfied in Grant RecipienYs sole
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discretion. Upon the giving of notice of termination by Grant Recipient to City, this '
Agresment shall be deemed null and void. '
(3) Grant Recipient and City shall be in material compliance with all the terms
and provisions of this P�qreement.
(4) Grant Recipient sha�l 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 Grant Recipient has firm financial commitments in an amount
sufficient, together with equity commitments, to complete the Minimum
Improvements (as defined herein) in conformance with the Design Letter (as
defined herein), or City shall have received such other evidence of Grant
Recipient's financial ability as City in its reasonable judgment requires.
1.8. 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 Deve[oper.
SECTION 2. FUR7HER COVENANTS O�' GFtANT RECIPIENT.
2,1, pperation of Development Property; Housinq Vouchers, For and in consideration
of the Grant offered under this Agreement, during the operation of the Development
f�roperty as a rental residential property, Grant Recipient shall accept, or cause to be
accepted, applications from prospeckive tsnants with housing vouchers issued under the
U.B. HUD's Section 8 voucher program or a similar program who are otherwise qualified
prospective tenants. Grant Recipient shall not deny any tenant a lease based on a public
assistance source of income. A public assistance source of income means income and
support derived from any tax supported iederal, state or local funds, including, but not
limited to, social security, suppiemental security income, temparary assistance for needy
families, family investment program, general relief, faod stamps, and uriemployrnent
compensation, housing choice voucher stabsidies and similar rent subsidy progr�ams.This
Section 4,2 shall survive the term[nation ofi this Agreement� lf Grant Recipient, or Grant
RecipienYs successors or assigns violates the requirements of this Section 2.1 as
determined by the City Manager in the City Manager's sole discretion after the termination
of this Agreement, Grant Recipient or Grant FtecipienYs successors or assigns shall not
be eligible for any City financial assisfance programs.
22. Real Propertv Taxes, Grant Recipien#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
Development Property.
2.3. No Other Exemptions. Until the Termination Date, Grant Recipient agrees not to
apply for any state or local property tax exemptions, except for an application for urban
reviYalization tax abatement under lowa Code Chapter 404 and 427, which are available
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with r�sqect to#he Development Property or the Minimum Improvements located thereon
that may now be, or hereafter become, available under state law or city ordinance during
the term of this Agreement.
2.4. Non-Discrimination. In carrying out the Project, Grant Recipient shall not
discriminate against any employee or applicanfi for employment or tenant because of
race, religion/creed, color, familial status, marital status, sex, sexual orientation, gender
identity, national origin, age, or mentaUphysical disability.
SECTION 3. DUWNTOWN REHABILITATION GRANT PROGRAM.
3.1. Downtown Housinq Incentive Grant. City agrees to provide Grant Recipient a grant
in an amount equal to Ten Thousand Dollars ($10,000) for each apartment in the
Development Property for which a Certificate of Completion from the Gity of Dubuque is
issued, but not to exceed Twenty Thousand Dollars ($20,000).
3.2. Faoade Grant. Gity agrees to provide a matching (1:1) grant not to exceed 7en
Thousand Doilars ($10,OQ0) to reimburse Grent Recipient fpr doCument�d costs that
fmprove the overall appearance of the Development Property, provided the Project meets
the criteria of the Fagade Grant Program and on the terms and conditions set forth in the
attached Design Letter.
3.3. Plannina & Qesie�n Grant. City agrees to provide a matching (1:1) grant not to
exce2d Ten Thousand Dollars {$1Q,000) to reimburse Developer for documented
predevelopment costs, architectural and engineering fees and other authorized soft costs
associated with the rehabiiitation of the Property on the terms and conditions set forth in
the attached Design Letter.
3.4. Financfal Consultant Grant. City agrees to provide a matching (1:1 j grant not to
exceed Fifteen Thousand Dollars ($15,OQQ.00) to reimburse Grant Reciqient for
documented costs related to hiring a financial consultant to evaluate the ProjecYs
feasibility on the terms and conditions set forth in the Program.
3.5. Pavment of the Grants. The Grants shali be payabfe as follows:
(1) Any and all portions of the Grants shall be funded solely and only from
available Program funds;
(2) Prior to the release of any grant funds, {i) Grant Recipient shall have
submitted documentation of its eligible expenses under the corresponding grant
program, and (ii) City shall have issued a Certificate of Completion; and
(3) The Grant funds shall be disbursed directly to Grant Recipient.
SECTION 4. EVENTS OF DEFAULT; REMEDIES.
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4.1. Events of Default Defined. Failure by Grant Recipient to substantially observe or
perform any covenant, condition, obligation, or agreement on its part to be observed or
performed under this/�greement shall be an "Event af Default."
' 4.2. Remedies on Default by Grant Recipient. Whenever any Event of Default ocaurs
and is con#inuing, City, as specified below, may take any one or more of the following
actions after the giving of written notice by City to Grant Recipient of the EvenY of Default,
but only if the Event of Default has not been cured within thirty (30) days following such
notice, or if the Event of Default cannot be cured within thifty (30) days and Grant
Recipient 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, including
suspension of the payment of any installment of the Grant to Grant Recipient, until
it receives assurances from Grant Recipient deemed adequate by City, that Grant
Recipient will cure its default and continue its perFormance under this Agreement;
(2) City may terminate this Agreement; or
(3) City may take any action, inGuding Isgal,equitable, or administrative action,
which may appear necessary or desirable to enforce performance and observance
of any obligation, agreement, or covenant under Yhis Agreement.
4.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to City is
intended to be exclusive of any other available rernedy or remedies, but each and every
such remedy shall be cumulafive 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.
4.4. 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 waiva any other
concurrent, previous or subsequent breach hereunder.
SECTION 5, MISCEI.LAN�QU$.
5.1. Conflict of Interest. Grant Recipient represents and warrants that, to its best
knowledge and belief after due inquiry, no officer or employee of City, or its designees or
agents, nor any consultant or member of#he 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 positian to participate in a
decision-making process or gain insider information with regard ta the Project, has had
or shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds
thereof, for work or services to be perFormed in connectian with the Project, or in any
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activity, or benefit therefrom, which is part of the Project at any time during or after such '
person's tenure. '
5.2. Grants. Notices, and Demands. A grant payment, notice, demand, or other �i
communication under this Agreement by any party to the other shall be sufficiently given i
or delivered if it is dispatched by registered or certified mail, postage prepaid, return
receipt requested, or delivered personally, and
(1) In the ca5e of Grant Recipient, is addressed and delivered personally to �
Forward Investments Group LLC, 11368 Rock Grove Court, Dubuque, IA 52001; �
Attn: Josh Jansen; and I
(2) In the case of City, is addressed and delivered personally to the City of
Dubuque at City HaII, 5Q W. 13th Street, Dubuque, IA 52001; Attn: Ci#y Manager
and City Attorney.
or to such other designated individual or officer or to such other address as any party !
shail have furnished to the other in writing in accordance herewith. ;
5.3. Titles of Sections. Any titles of the several parts and Sections of this Agreement '
are inserted for convenience of reference only and shall be disregarded in construing or I�
interpreting any of its provisions. ,
5.4. Definitions. All capitalized terms used herein shall have the meaning defined
herein, unless a different meaning clearly appears from the context.
5.5. Counteraarts. This Agreement may be executed in any number of counterparts,
each of which shall constitute one and the same instrument.
5.6. Governina Law. This Agreement shall be governed and construed in accordance
with the laws of the 5tate of lowa.
5.7. Amendment. This Agreement may not be amended except by a subsequent '
writing signed by the parties hereta '
5.8. Successors and Assiqns. This Agreemen# is intended to and shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and
assigns.
5.9. 7ermination Date. This Agreement shall terminate and be of no further force or
effect December 31, 2029, unless the Agreement is terminated earlier by the other terms
of this Agreement.
5.10. No Third-Partv Beneficiaries. No rights or privileges of either parly hereto shall
inuee to the bene�t of any landowner,tenant, contractor, subcontractor, material supplier,
or any other person or entity, and no such landowner, tenant, contractor, subcontractor,
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material supplier, or any other person or entity shall be deemed to be a third -party
beneficiary of any of the provisions contained in this Agreement.
5.11. Indemnification. Grant Recipient hereby agrees to defend, indemnify, and hold
harmless City, its officer and employees, against any and all claims of any kind made by
Grant Recipient or any third party relating to or arising out of this Agreement, including
costs, expenses, or attorneys' fees.
5.12. No Assignment; Non -Transferability. Following the execution of this Agreement
and until the Termination Date:
(1) Grant Recipient represents and agrees that it will not transfer, convey or
make any assignment of any of its rights or interests in the Development Property,
Minimum Improvements, or this Agreement to any other party unless: (i) the
transferee partnership, corporation, or individual assumes in writing all of the
obligations of Grant Recipient under this Agreement, and (ii) City consents thereto
in writing in advance thereof; and
(2) Grant Recipient represents and agrees that it will not assign its rights or
interests in this Agreement, including the Grant, to any other party unless City
consents thereto in writing in advance thereof.
CITY OF DUBUQUE, IOWA
By.
Brad . Gayar gh, Mayor
ATTEST:
FORWARD INVESTMENTS GROUP LLC
Trish L. Gleason, Assistant City Clerk
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