Approving the Fourth Amendment to Development Agreement between the City of Dubuque, Iowa and 210 Jones, LLC Copyrighted
October 16, 2023
City of Dubuque Consent Items # 017.
City Council Meeting
ITEM TITLE: Approvingthe FourthAmendmentto DevelopmentAgreementbetween
the City of Dubuque, lowa and 210 Jones, LLC
SUM MARY: City Manager recommending City Council adopt a Resolution approving
the Fourth Amendment to Development Agreement between the City of
Dubuque, lowa (City)and 210 Jones, LLC (Developer).
RESOLUTION Approving the Fourth Amendment to Development
Agreement Between the City of Dubuque, lowa and 210 Jones, LLC
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
Fourth Amendment Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Approving the Fourth Amendment to Development Agreement between
the City of Dubuque, lowa and 210 Jones, LLC
DATE: October 12, 2023
Economic Development Director Jill Connors is recommending City Council adopt a
Resolution approving the Fourth Amendment to Development Agreement between the
City of Dubuque, lowa (City) and 210 Jones, LLC (Developer).
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
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Approving the Fourth Amendment to Development Agreement between
the City of Dubuque, lowa and 210 Jones, LLC
DATE: October 12, 2023
INTRODUCTION
This memorandum presents for City Council review and approval a Resolution approving
the Fourth Amendment to Development Agreement between the City of Dubuque, lowa
(City) and 210 Jones, LLC (Developer).
BACKGROUND
City and Developer entered into Development Agreement dated June 19, 2017, as
amended, for the rehabilitation of 210 Jones Street. The project included a $2.6 Million
capital investment for the development of 22,000 square feet of commercial space. The
Development agreement also called for the creation of 12 parking stalls. In the
Development agreement, City granted $35,000 in fa�ade grant package funding and 20
semi-annual tax increment financing rebates equal to 90% of the actual amount of tax
increment revenues collected by City.
The Development Agreement has previously been amended to adjust the closing date,
adjust the parking lot construction timing and requirements, and to add a party to the
responsibilities and obligations of the Development Agreement.
DISCUSSION
It has been the City's practice to grant tax increment rebates above a property's assessed
value as of January 1 of the year the agreement is signed. Section 3.2 of the Development
Agreement does not specifically state the tax increment to be rebated back to the
Developer is above the assessed value as of January 1, 2017. Without mention of the
January 1, 2017 assessed value, state statute requires the tax increment collected and
rebated back to Developer to be above the assessed value of the Property as of January
1 of the year it was incorporated into the Greater powntown Urban Renewal Area. In the
case of 210 Jones Street, the property had a higher assessed value when it is was
incorporated into the Greater powntown Urban Renewal Area (1967), than it did in 2017.
Because this error would negatively impact the allowable tax increments rebates to
Developer, and is not in line with past practice, City staff recommend amending the
agreement to set the base value for the property at the assessed value as of January 1,
2017.
RECOMMENDATION/ ACTION STEP
I recommend approving the attached Fourth Amendment to Development Agreement
between the City of Dubuque, lowa, and 210 Jones, LLC.
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RESOLUTION 335-23
APPROVING THE FOURTH AMENDMENT TO DEVELOPMENT AGREEEMENT
BETWEEN THE CITY OF DUBUQUE, IOWA AND 210 JONES, LLC
Whereas, City and (Developer) entered into a Development Agreement dated
June 19, 2017 (the Agreement), as amended; and
Whereas, the Agreement provides the issuance of Urban Renewal Tax Increment
Revenue Obligations, as provided by Chapter 403 of the Code of Iowa; and
Whereas, City and Developer desire to further amend the Agreement as set forth
in the attached Fourth Amendment to Development Agreement; and
Whereas, the City Council finds that it is in the best interests of the City of Dubuque
to approve the Fourth Amendment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1 . That the Fourth Amendment to Development Agreement between
the City of Dubuque and 210 Jones, LLC, is hereby approved.
Section 2. The Mayor is hereby authorized and directed to execute the Fourth
Amendment 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 Fourth Amendment to Development Agreement
as herein approved.
Passed, approved, and adopted this 16th day of October, 2023.
Brad M. Cavanpgi, ayor
Attest:
Trish L. Gleason, Assistant City Clerk
FOURTH AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
210 JONES, LLC
This Fourth Amendment to Development Agreement, dated for reference purposes
the OM day of 19crcgf,se_ , 2023, is made an entered into by and between the City of
Dubuque, Iowa City) and 210 Jones, LLC (Developer).
WHEREAS, City and Developer entered into a Development Agreement dated
June 19, 2017), as amended; and
WHEREAS, the Development Agreement provides for the issuance of Urban
Renewal Tax Increment Revenue Obligations, as provided by Chapter 403 of the Code
of Iowa; and
WHEREAS, the Development Agreement did not include a base assessed value
from which the increment on the Property could be generated; and
WHEREAS, Chapter 403 of the Code of Iowa establishes the default base
assessed value above which increment can be generated as the assessed value as of
January 1 of the year in which property is included in an urban renewal area and that
base assessed value was $515,400; and
WHEREAS, the assessed value of the Property at the date of the Development
Agreement was $254,005; and
WHEREAS, City and Developer desire to further amend the Development
Agreement as set forth herein, revising the base assessed value for purposes of
calculating the of Urban Renewal Tax Increment Revenue Obligations to be $254,005
effective with the payment November 1, 2022.
NOW THEREFORE, in consideration of the mutual terms and covenants
contained herein, City and Developer agree as follows:
1. Section 3.2(1) of the Development Agreement is amended to read as
follows:
(1) For and in consideration of Developer's obligations hereunder, and in
furtherance of the goals and objectives of the Urban Renewal Plan for the Project
Area and the Urban Renewal Law, City agrees, subject to Developer being and
remaining in compliance with the terms of this Agreement, to make twenty (20)
consecutive semi-annual payments (such payments being referred to collectively
as the Economic Development Grants) to Developer, as follows:
November 1, 2020 May 1, 2021
November 1, 2021 May 1, 2022
November 1, 2022 May 1, 2023
November 1, 2023 May 1, 2024
November 1, 2024 May 1, 2025
November 1, 2025 May 1, 2026
November 1, 2026 May 1, 2027
November 1, 2027 May 1, 2028
November 1, 2028 May 1, 2029
November 1, 2029 May 1, 2030
pursuant to Iowa Code Section 403.9 of the Urban Renewal Law, in amounts equal
to ninety percent (90%) of the actual amount of tax increment revenues collected
by City under Iowa Code Section 403.19 (without regard to any averaging that may
otherwise be utilized under Iowa Code Section 403.19 and excluding any interest
that may accrue thereon prior to payment to Developer) during the preceding six-
month period in respect of the Property and Minimum Improvements constructed
by Developer(this 90% share of the collected tax increment revenue being referred
to herein as the Pledged Developer Tax increments). Developer and City agree
that for the purposes of this Section 3.2(1),the base assessed value of the property
for calculating the Grants for all Grants paid after May 1, 2022 is $254,005;
Developer recognizes and agrees that the Economic Development Grants shall be
paid solely and only from the incremental taxes collected by City in respect to the
Property and Minimum Improvements, which does not include property taxes
collected for the payment of bonds and interest of each taxing district, and taxes
for the regular and voter-approved physical plant and equipment levy, instructional
support levy, and any other portion required to be excluded by Iowa law, and thus
such incremental taxes will not include all amounts paid by Developer as regular
property taxes.
2. All other terms and conditions of the Development Agreement shall remain in full
force and effect.
CITY OF DUBUQUE, IOWA 210 JONES, LLC
By: By: C .
Brad M. Cayynadh, Mayor Chris Miller, President
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