Setting a Public Hearing on First Amendment to Development Agreement with 799 Main LLC_InitiateCity of Dubuque
City Council Meeting
Copyrighted
November 6, 2023
Items to be set for Public Hearing #
01.
ITEM TITLE: Resolution Setting a Public Hearing on a Proposed First Amendment to
Development Agreement by and between the City of Dubuque, Iowa and
799 Main, LLC Providing for the Issuance of Urban Renewal Tax
Increment Revenue Grant Obligations Pursuant to the Development
Agreement
SUMMARY: City Manager recommending City Council adopt the attached resolution
setting a public hearing for November 20, 2023, on a proposed
Development Agreement by and between the City of Dubuque, Iowa and
799 Main, LLC providing for the issuance of Urban Renewal Tax
Increment Revenue Grant Obligations.
RESOLUTION Fixing the date for a public hearing of the City Council of
the City of Dubuque, Iowa on a First Amendment to Development
Agreement by and between the City of Dubuque, Iowa and 799 Main,
LLC, including the proposed issuance of urban renewal tax increment
revenue obligations relating thereto and providing for the publication of
notice thereof
SUGGESTED Receive and File; Adopt Resolution(s), Set Public Hearing for November
DISPOSITION: 20, 2023Suggested Disposition:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
F i rst Amendment Supporting Documentation
Notice of Public Hearing Supporting Documentation
Resolution Resolutions
THE CITY OF
Dubuque
DUB TEE1.
All -America City
Masterpiece on the Mississippi
� pp
zoo�•*o 13
zoi720zoi9
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution Setting a Public Hearing on a Proposed First Amendment to
Development Agreement by and between the City of Dubuque, Iowa and
799 Main, LLC Providing for the Issuance of Urban Renewal Tax
Increment Revenue Grant Obligations Pursuant to the Development
Agreement
DATE: November 1, 2023
Economic Development Director Jill Connors is recommending City Council adopt the
attached resolution setting a public hearing for November 20, 2023, on a proposed
Development Agreement by and between the City of Dubuque, Iowa and 799 Main, LLC
providing for the issuance of Urban Renewal Tax Increment Revenue Grant Obligations.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
k�4
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 ' 50 West 131h Street
All•AmerieaNy Dubuque, Iowa 52001-4864
DUB &http://www.cityofdubuque.org
E
1111.
Office (563) 589-4393
TTY (563) 690-6678
f '
2007*2012.2013
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Resolution Setting a Public Hearing on a Proposed First Amendment to
Development Agreement by and between the City of Dubuque, Iowa and
799 Main, LLC Providing for the Issuance of Urban Renewal Tax
Increment Revenue Grant Obligations Pursuant to the Development
Agreement
DATE: October 31, 2023
INTRODUCTION
This memorandum is a request for the City Council to adopt the attached resolution
setting a public hearing for November 20, 2023 on a proposed Development Agreement
by and between the City of Dubuque, Iowa and 799 Main, LLC providing for the
issuance of Urban Renewal Tax Increment Revenue Grant Obligations.
BACKGROUND
The City Council, by Resolution No. 233-23 previously entered into a Development
Agreement with 799 Main, LLC providing for the issuance of Urban Renewal Tax
Increment Revenue Grant Obligations for 10 years.
799 Main, LLC is owned by Chris Miller. Chris Miller has successfully completed
numerous historic redevelopment projects in the City of Dubuque, including 40-44 Main
Street, and 210 Jones Street. The property located at 799 Main Street has had vacant
upper story residential space for several years. The first -floor commercial space has
only been 30% occupied over the past several years.
799 Main, LLC intends to rehabilitate the structure to revitalize the first -floor commercial
space and create 36 new market -rate rental units in the upper stories. The project will
utilize historic tax credits with the remainder of the funding being a combination of
private and public financing.
DISCUSSION
Shortly after this Development Agreement was approved, the City Council introduced a
new housing creation incentive. This new incentive increases the allowable tax
increment financing from 10 years to 15 years for new housing creation in the Greater
Downtown Urban Renewal District. If this project had waited a few weeks before
seeking City Council support and approval, it would have already been awarded this
new housing creation incentive.
The attached First Amendment to Development Agreement increases the previously
awarded tax increment financing rebates from 10 years to 15 years. This amendment is
in keeping with recent City Council action further incentivizing housing creation projects
in the greater downtown that have not yet been completed.
The Development Agreement continues to require Developer to accept applications
from prospective tenants with housing choice vouchers (issued under the U.S. HUD's
Section 8 voucher program or a similar program) that are otherwise qualified
prospective tenants.
RECOMMENDATION/ ACTION STEP
I recommend the City Council adopt the attached resolution setting a November 20,
2023 public hearing on the first Amendment to Development Agreement including the
issuance of Urban Renewal Tax Increment Revenue Grant Obligations.
2
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
799 MAIN, LLC
This First Amendment to Development Agreement, dated for reference purposes
the day of &,Z6,66,4_ , 2023, is made and entered into by the City of Dubuque,
Iowa, a municipality (City), established pursuant to the Iowa Code and acting under
authorization of Iowa Code Chapter 403, as amended (the Urban Renewal Act), and 799
Main, LLC (Developer).
WHEREAS, City and Developer entered into a Development Agreement dated July
17, 2023 (the Agreement); and
WHEREAS, City and Developer desire to amend the Agreement as set forth
herein.
NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL TERMS AND
COVENANTS CONTAINED HEREIN, CITY AND DEVELOPER AGREE AS FOLLOWS:
Section 1. Section 3.1 of the Agreement is hereby amended to read as follows:
3.1. Economic Development Grants to Developer. 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 thirty (30) consecutive semi-annual payments (such
payments being referred to collectively as the Economic Development Grants) to
Developer:
November 1, 2026
May 1, 2027
November 1, 2027
May 1, 2028
November 1, 2028
May 1, 2029
November 1, 2029
May 1, 2030
November 1, 2030
May 1, 2031
November 1, 2031
May 1, 2032
November 1, 2032
May 1, 2033
November 1, 2033
May 1, 2034
November 1, 2034
May 1, 2035
November 1, 2035
May 1, 2036
November 1, 2036
May 1, 2037
November 1, 2037
May 1, 2038
November 1, 2038
May 1, 2039
November 1, 2039 May 1, 2040
November 1, 2040 May 1, 2041
November 1, 2041 May 1, 2042
pursuant to Iowa Code Section 403.9 of the Urban Renewal Law, in amounts equal to a
portion of the 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 Minimum Improvements
constructed by Developer (the Developer Tax Increments). For purposes of calculating
the amount of the Economic Development Grants provided in this Section, the Developer
Tax Increments shall be only those tax increment revenues collected by City in respect
of the increase in the assessed value of the Property above the assessed value on
January 1, 2023 ($847,200). The Developer Tax Increments shall not include (i) any
property taxes collected for the payment of bonds and interest of each taxing district, (ii)
any taxes for the regular and voter -approved physical plant and equipment levy, (iii) the
remaining actual amount of tax increment revenues collected by City in respect of the
valuations of the Property prior to January 1, 2023 and (iv) 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.
Section 2. Except as modified herein, the Agreement shall remain in full force
and effect.
CITY OF DUBUQUE, IOWA 799 MAIN, LLC
13
Brad M. Cavanagh, Mayor
Attest:
Adrienne N. Breitfelder, City Clerk
By:..
Chris Miller, Owner
2
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public
hearing on the 20th day of November, 2023, at 6:30 p.m., in the Historic Federal Building,
350 W. 6t" Street, 2nd floor, Dubuque, Iowa, at which meeting the City Council proposes
to take action to approve a First Amendment to Development Agreement between the
City of Dubuque, Iowa and 799 Main, LLC, a copy of which is now on file at the Office of
the City Clerk, City Hall, 50 W 13th Street, Dubuque, Iowa, providing for the issuance of
economic development grants (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 Downtown Urban Renewal Area Economic
Development District, consisting of the funding of economic development grants for 799
Main, LLC, under the terms and conditions of the Urban Renewal Plan for the Greater
Downtown Urban Renewal Area Economic Development District. The aggregate amount
of the Urban Renewal Tax Increment Revenue Grant Obligations pursuant to the First
Amendment cannot be determined at the present time, but is not expected to exceed
$2,210,129.
At the meeting, the City Council will receive oral and written comments from any resident
or property owner of said City to the above action. The official agenda will be posted the
Friday before the meeting and will contain public input options. The City Council agenda
can be accessed at https://cityofdubuque.novusagenda.com/AgendaPublic/ or by
contacting the City Clerk's Office at 563-589-4100, ctyclerk@cityofdubuque.org.
Written comments regarding the above public hearings may be submitted to the City
Clerk's Office via email at ctyclerk@cityofdubuque.org or by mail to City Clerk's Office,
City Hall, 50 W. 13t" St., Dubuque, IA 52001, before said time of public hearing. At said
time and place of public hearings the City Council will receive any written comments.
Copies of supporting documents for the public hearings are on file in the City Clerk's
Office and may be viewed Monday through Friday between 8:00 a.m. and 5:00 p.m.
Individuals with limited English proficiency, vision, hearing, or speech impairments
requiring special assistance should contact the City Clerk's Office at (563) 589-4100, TDD
(563) 690-6678, ctyclerk@cityofdubuque.org as soon as feasible. Deaf or hard -of -hearing
individuals can use Relay Iowa by dialing 711 or (800) 735-2942.
Published by order of the City Council given on the 6th day of November 2023.
Adrienne N. Breitfelder, City Clerk
Prepared by/Return to: Jill Connors, Economic Development. 50 W. 13th Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 366-23
FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA ON A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
BY AND BETWEEN THE CITY OF DUBUQUE, IOWA AND 799 MAIN, LLC,
INCLUDING THE PROPOSED ISSUANCE OF URBAN RENEWAL TAX INCREMENT
REVENUE OBLIGATIONS RELATING THERETO AND PROVIDING FOR THE
PUBLICATION OF NOTICE THEREOF
WHEREAS, City and 799 Main, LLC previously entered into a Development
Agreement dated July 17, 2023; and
WHEREAS, City and Developer desire to amend the Development Agreement as set
forth a First Amendment to Development Agreement attached hereto; and
WHEREAS, it is deemed necessary and advisable that City should authorize Urban
Renewal Tax Increment Revenue obligations, as provided by Iowa Code Chapter 403
pursuant to the Development Agreement; and
WHEREAS, before said obligations may be approved, Iowa Code Chapter 403
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 a notice to
be published as prescribed by Iowa Code Section 403.9 of a public hearing on the City's
intent to authorize Urban Renewal Tax Increment Revenue obligations, to be held on the
20th day of November, 2023, at 6:30 o'clock p.m. The official agenda will be posted on
Friday, November 17, 2023 and will contain listening, viewing, and public input options. The
City Council agenda can be accessed at
https:Hcityofdubuque.novusagenda.com/AgendaPublic/ or by contacting the City Clerk's
Office at 563-589-4100, ctyclerk@cityofdubuque.org.
Section 2. The City Council will meet at said time and place for the purpose of
taking action on the matter of authorizing Urban Renewal Tax Increment Revenue
obligations and the execution of the Development Agreement relating thereto with 799
Main, LLC, the proceeds of which obligations will be used to carry out certain of the special
financing activities described in the Urban Renewal Plan for the Greater Downtown Urban
Renewal District, consisting of the funding of economic developments grants to 799 Main,
LLC pursuant to the Development Agreement. It is expected that the aggregate amount
of the Tax Increment Revenue obligations to be issued pursuant to the First Amendment
will be approximately $2,210,129.
Section 3. The 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 issuance of said obligations.
Section 4. That the notice of the proposed action to issue said obligations shall
be in substantially the form attached hereto.
Passed, approved and adopted this 6th day of November, 2023.
Attest:
Adrienne N. Breitfelder, City Clerk
2