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Setting a Public Hearing on a Proposed Development Agreement with Vanguard Enterprises, Inc._InitiateCity of Dubuque City Council Meeting Copyrighted November 6, 2023 Items to be set for Public Hearing # 02. ITEM TITLE: Resolution Setting a Public Hearing on a Proposed Development Agreement between the City of Dubuque, Iowa and Vanguard Enterprises, Inc. 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 between the City of Dubuque, Iowa and Vanguard Enterprises, Inc. 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 the proposed Development Agreement between the City of Dubuque and Vanguard Enterprises, Inc., including the proposed issuance of urban renewal tax increment revenue grant obligations to Vanguard Enterprises, Inc., 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 Development Agreement Supporting Documentation Notice of Public Hearing Supporting Documentation Resolution Resolutions 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: Resolution Setting a Public Hearing on a Proposed Development Agreement between the City of Dubuque, Iowa and Vanguard Enterprises, Inc. 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 between the City of Dubuque, Iowa and Vanguard Enterprises, Inc. 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 Development Agreement between the City of Dubuque, Iowa and Vanguard Enterprises, Inc. 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 between the City of Dubuque, Iowa and Vanguard Enterprises, Inc. providing for the issuance of Urban Renewal Tax Increment Revenue Grant Obligations. BACKGROUND Vanguard Enterprises has been operating in Dubuque for over 60 years. Vanguard is a recognized industry leading manufacturer of laminated and solid surface countertops, granite countertops, commercial cabinets and casework, and other laminated products. Serving vast dealer network in Iowa, Illinois, and Wisconsin comprised of home centers, lumber companies, and kitchen designers, Vanguard is extensively involved in the commercial cabinet and casework market providing products for schools, hospitals, municipal buildings, and private sector commercial buildings. JB Priest purchased Vanguard Enterprises, Inc., then Vanguard Countertops, in 2018 after successfully starting two businesses. DISCUSSION Vanguard intends to construct a 30,000 sqft expansion to its existing facility. The expansion, estimated to cost approximately $1.5 Million between land acquisition, building construction and machinery, is required to satisfy company growth in existing product lines which will be sold to new and existing customers. The project is anticipated to begin in the Spring of 2024. In addition to the physical improvements, Vanguard Enterprises, Inc has committed to the creation of ten (10) full-time equivalent jobs. The key elements of the Development Agreement include the following: 1. The Developer must construct an expansion of not less than 30,000 square feet with a cost of approximately $1,500,000. 2. Vanguard Enterprises, Inc. must retain its current 13 full-time positions and create 10 new jobs by October 1, 2026. The 23 jobs must be retained through the term of the Development Agreement. 3. Vanguard Enterprises, Inc. will receive 10 years of tax increment financing incentives in the form of semi-annual rebates. These incentives are calculated in relation to the number of jobs committed in the Development Agreement. Tax increment financing incentives are not estimated to exceed $271,470. RECOMMENDATION/ ACTION STEP I recommend the City Council adopt the attached resolution setting a November 20, 2023 public hearing on the Development Agreement providing for the issuance of Urban Renewal Tax Increment Revenue Grant Obligations. DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE, IOWA AND VANGUARD ENTERPRISES, INC. This Development Agreement (Agreement), dated for reference purposes the day of , 2023 is made and entered into by and between 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 (Urban Renewal Act), and Vanguard Enterprises, Inc. (Developer), an Iowa limited liability company with its principal place of business in Dubuque, Iowa. WHEREAS, Developer is the owner of the following described real estate (the Property): Lot 1 of Lot 4 of Dubuque Industrial Center West 4th Addition is the City of Dubuque, Iowa according to the recorded Plat thereof. ; and WHEREAS, the Property is located in the Dubuque Industrial Center (the District) which has been so designated by City Council Resolution 478-97 as a slum and blighted area (the Project Area) defined by Iowa Code Chapter 403 (the Urban Renewal Law); and WHEREAS, Developer will make a capital investment including constructing a new facility, equipment, furniture and fixtures in the Property (the Project); and WHEREAS, pursuant to Iowa Code Section 403.6(1), and in conformance with the Urban Renewal Plan for the Project Area adopted on May 2, 1988 and last amended on June 5, 2023, a copy of which is attached hereto as Exhibit A (the Urban Renewal Plan) City has the authority to enter into contracts and agreements to implement the Urban Renewal Plan, as amended; and WHEREAS, the City Council believes it is in the best interests of City to encourage Developer in the development of the Property by providing certain incentives as set forth herein. 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 Re resentations 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: 10262023ba1 (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 -tran actions c ntempla#-ed-hereby, and -the -f-ulfillmertt-ofi-or- cempfiance 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 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. Developer makes the following representations and warranties: (1) Developer is a corporation duly organized and validly existing under the laws of the State of Iowa, and has all requisite power and authority to own and operate its K 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 the 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 time of closing, confirming the representations contained herein, in the form attached hereto as Exhibit C. (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 reasonable commercial 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 15th day of December, 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 January, 2024. Consummation of the closing shall be deemed an agreement of the parties to this Agreement that the conditions of closing shall have been satisfied or waived. 3 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 D. (2) Developer shall have the right to terminate this Agreement at any time prior to the Commencement Date set forth in Section 2.3 if Developer determines in its sole discretion that conditions necessary for the successful completion of the Project contemplated herein have not been satisfied in Developer's sole discretion. Upon the-giving-of-nottee-of termination -by -Developer -to -City tt-his-Agmement-�sha"e— 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 the reasonable judgment of 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 C. 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 Improvem_e_nts. Developer will make a capital investment of approximately One Million Five Hundred Thousand Dollars ($1,500,000) to improve the Property (the Minimum Improvements). The Minimum Improvements include the construction of an industrial facility and related machinery and furnishings. 2.2 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 El 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 in City's reasonable discretion, (which approval shall not be unreasonably refused, conditioned or delayed), 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. 2.3 Timing of Improvements. Developer hereby agrees that construction of the Minimum Improvements on the Property shall commence by June 15, 2024 ("Commencement Date") and shall be substantially completed by December 1, 2024. The timeframes for Developer's performance of its obligations under this Agreement shall be suspended due to supply chain issues, unavailability of labor or materials, or other unavoidable delays including, but not limited to, delays outside of the control of the Party claiming its occurrence in good faith, delays which are the result of strikes or labor stoppages or troubles, delays which are caused by COVID-19 (or the next pandemic) or related shut downs or governmental orders, delays which are caused by severe or prolonged bad weather, acts of God, fire or other casualty to the Minimum Improvements or Developer's Property, delays caused by 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 delays which are caused by acts of any federal, state or local government. Developer's time for performance of any such obligations shall be extended for the greater of: (i) the length of the delays; and (ii) the impact of such delays on the ability of Developer to perform such obligations. 2.4 Certificate of Completion. Promptly following the request of Developer upon completion of the Minimum Improvements, the City Manager shall furnish Developer with an appropriate instrument certifying so. Such certification (the Certificate of Completion) shall be in recordable form and shall be a conclusive determination of the satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligations of Developer to construct the Minimum Improvements. SECTION 3. CITY PARTICIPATION 3.1 Economic Development Grant to Devel❑ er. 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, and subject to adoption of an Amended and Restated Urban Renewal Plan for the Dubuque Industrial Center Economic Development District by no later than December 31, 2024, 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, 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 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 (6) month period in respect of the Minimum Improvements constructed by Developer (the Developer Tax Increments). For purposes of calculating the r ount of the -Economic -Development Grants -providedlnAHs-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 of $1,408,300 (the Baseline Valuation). 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) any taxes for the instructional support levy, (iv) any tax increment revenues collected by City in respect of the Baseline Valuation of the Property during the term of this Agreement and (v) 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. (1) To fund the Economic Development Grants, City shall certify to the County prior to December 1, 2025, its request for the available Developer Tax Increments resulting from the assessments imposed by the County as of January 1 of that year and each year thereafter until December 1, 2036 to be collected by City as taxes are paid during the following fiscal year and which shall thereafter be disbursed to Developer on November 1 st and May 1 st of that fiscal year. (Example: upon City's certification in December, 2025, the Economic Development Grants in respect thereof would be paid to Developer on November 1, 2026, and May 1, 2027.) (2) The Economic Development Grants shall be payable from and secured solely and only by the Developer Tax Increments paid to City that, upon receipt, shall be deposited and held in a special account created for such purpose and designated as the Vanguard Enterprises TIF Account of City. City hereby covenants and agrees to maintain its TIF ordinance in force during the term hereof and to apply the incremental taxes collected in respect of the Minimum Improvements and allocated to the Vanguard Enterprises TIF Account to pay the Economic Development Grants, as and to the extent set forth in Section 3.1 hereof. The Economic Development Grants shall not be payable in any manner by other tax increments revenues, or by general taxation or from any other City funds. City makes no representation with respect to the amounts that may be paid to Developer as the Economic Development Grants in any one year and under no circumstances shall City in any 0 manner be liable to Developer so long as City timely applies the Developer Tax Increments actually collected and held in the Vanguard Enterprises TIF Account (regardless of the amounts thereof) to the payment of the Economic Development Grants to Developer as and to the extent described in this Section. (3) City shall be free to use any and all tax increment revenues collected in respect of other properties within the Project Area and the remaining actual amount of the property taxes paid by Developer to City, or any available Developer Tax Increments resulting from the termination of the annual Economic Development Grants under Section 3.1 hereof, for any purpose for which such tax increment revenues may lawfully be used pursuant to the provisions of the Urban Renewal Law, and City shall have no obligations to Developer with respect to the use thereof. (4) City's obligations to pay the Economic Development Grants 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 by no later than December 31, 2024. 3.2 Other than the Economic Development Grants required by Section 3.1, City shall have no obligation to provide any other funds to Developer. SECTION 4. NON -APPROPRIATION / LIMITED SOURCE OF FUNDING 4.1 Non -appropriation. (1) Notwithstanding anything in this Agreement to the contrary, the obligation of City to pay any installment of the Economic Development Grant shall be an obligation limited to currently budgeted funds, and not a general obligation or other indebtedness of City or a pledge of its full faith and credit under the meaning of any constitutional or statutory debt limitation, and shall be subject in all respects to the right of non -appropriation by the City Council as provided in this Section 4.1(1). City may exercise its right of non -appropriation as to the amount of the installments to be paid during any fiscal year during the term of this Agreement without causing a termination of this Agreement. The right of non -appropriation shall be exercised only by resolution affirmatively declaring City's election to non -appropriate funds otherwise required to be paid to Developer in the next fiscal year under this Agreement. (2) In the event the City Council elects to not appropriate sufficient funds in the budget for any future fiscal year for the payment in full of the installments on the Economic Development Grant due and payable in that fiscal year, then: i) City shall have no further obligation to Developer for the payment of all installments due in the next fiscal year which cannot be paid with the funds then appropriated for that purpose; and, ii) Developer shall be released from all further obligations under this Agreement during that same fiscal year. rl (3) Each installment of the Economic Development Grant shall be paid by City solely from funds appropriated for that purpose by the City Council from taxes levied on the Property that are allocated to the special fund pursuant to Iowa Code §403.19(2). 4.2 The right of non -appropriation reserved to City in this Section 4.1(1) is intended by the parties, and shall be construed at all times, so as to ensure that City's obligation to pay future installments on the Economic Development Grants shall not constitute a legal indebtedness of City within the meaning of any applicable constitutional or statutory debt limitation prior to the adoption of a budget which appropriates funds for the payment of that installment or amount. In the event that any of the provisions of this Agreement are determined by a court of competent jurisdiction to create, or result in the creation of, such a legal indebtedness of City, the enforcement of the said provision shall be suspended, and the Agreement shall at all times be construed and applied in such a manner as will preserve the foregoing intent of the parties, and no event of default shall be deemed to have occurred as a result thereof. If any provision of this Agreement or the application thereof to any circumstance is so suspended, the suspension shall not affect other provisions of this Agreement which can be given effect without the suspended provision. To this end the provisions of this Agreement are severable. SECTION 5. COVENANTS OF DEVELOPER 5.1 Job Creation. During the term of this Agreement, Developer shall comply with the following employment -related covenants for the Property: (1) Developer represents that the number of fulltime equivalent (FTE) employees employed by Developer in the City of Dubuque, Iowa as of the time of application to the program in 2019 was thirteen (13). Developer shall create and maintain 10 additional FTE employees employed by Developer by October 1, 2026 and during the remaining Term of this Agreement for a total of Twenty -Three (23) FTE employees in the City of Dubuque, Iowa. FTE employees shall be calculated by adding fulltime and part-time employees together using 2080 hours per year as an FTE employee. (2) For the positions that Developer fails to create, maintain and employ for any year during the Term of this Agreement, the semi-annual Economic Development Grants for such year under Section 3.1 shall be reduced by the percentage that the number of such positions bears to the total number of positions required to be maintained by this Section 5.1. (For example, if the certification shows 17 FTE on October 1, 2026 the semi-annual Economic Development Grants would be 75% (17/23) of the allowable Developer Tax Increments received by City which would be paid by City to Developer. The percentage reduction of the semi-annual Economic Grants as calculated under this Section shall be the City's sole and exclusive remedy for the failure of the Developer to meet the job creation requirements in this Agreement. FP 5.2 Certification. To assist City in monitoring the performance of Developer hereunder, as of October 1, 2026, and again as of October 1 of each year thereafter during the term of this Agreement, a duly authorized officer of Developer shall certify to City in a form acceptable to City (a) the number of FTE positions employed by Developer within the City of Dubuque, Iowa, and (b) to the effect that such officer has re-examined the terms and provisions of this Agreement and that at the date of such certificate, and during the preceding twelve (12) months, Developer is not or was not in default in the fulfillment of any of the terms and conditions of this Agreement and that no Event of Default (or event which, with the lapse of time or the giving of notice, or both, would become an Event of Default) is occurring or has occurred as of the date of such certificate or during such period, or if the signer is aware of any such default, event or Event of Default, said officer shall disclose in such statement the nature thereof, its period of existence and what action, if any, has been taken or is proposed to be taken with respect thereto. Such certificate shall be provided not later than October 15, 2026, - and -by October-t5 of-each-yearAb reafter: Developer's-certification-obtigations-unde — this Section 5.2 terminate following the final certification on October 1, 2035 (due by October 15, 2035). 5.3 The Minimum Improvements shall conform to all city, state and federal codes. 5.4 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 to verify the cost of the Minimum Improvements 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. 5.5 Real Property Taxes. 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. 5.6 No Other Exemptions. During the term of this Agreement, Developer agrees not to apply for any state or local property tax exemptions which are available with respect to the 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, including those that arise under Iowa Code Chapters 404 and 427, as amended. 5.7 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 01 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- -ues, pipes, drains -and -other a insurable -items -)mod - 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 two hundred thousand dollars ($200,000) 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 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. 5.8 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. Nothing in this Section 5.8 or in this Agreement, however, shall limit or otherwise affect Developer's sole discretion with respect to the means, methods and expenses in carrying out such maintenance and repairs. 5.9 Non -Discrimination. In carrying out the project, Developer shall not discriminate against any employee or applicant for employment because of age, color, familial status, gender identity, marital status, mental/physical disability, national origin, race, religion/creed, sex, or sexual orientation. 10 5.10 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. 5.11 Non -Transferability. During the term of this Agreement, this Agreement may not be assigned by Developer nor may any portion of the Property be sold or otherwise transferred —by Developer -without prior- written consent of City, which sha l-not be unreasonably withheld. City has no obligation to consent to any assignment or sale. 5.12 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 property and to be taxed as such under Iowa law. 5.13 Restrictions on Use. Developer agrees for itself, and its successors and assigns, and every successor in interest to the Property or any part thereof that they, and their respective successors and assigns, shall: (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 retail/commercial, 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 age, color, familial status, gender identity, marital status, mental/physical disability, national origin, race, religion/creed, sex, or sexual orientation 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). 5.14 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 6. EVENTS OF DEFAULT AND REMEDIES 11 6.1 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 Agroc.,mcJnt 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. 6.2. Remedies on Default by Developer. Whenever any Event of Default referred to in Section 6.1 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 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 Developer deemed adequate by City, that 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 Downtown Rehab Loan/Grant and Economic Development Grant to Developer and City may take any action, including any legal action it deems necessary, to recover such amounts from 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 IiK Agreement or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. 6.3 No Remedy Exclusive. Except as otherwise provided in this Agreement, 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 inequity 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. 6.4 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 Rm tedtothe-particular breach-so-waived-and-shalUnot-bc--deemed to -waive —any -other concurrent, previous or subsequent breach hereunder. 6.5 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. 6.6 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 7. GENERAL TERMS AND PROVISIONS 7.1 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: Vanguard Enterprises, Inc. Attn: John B. Priest President 1300 Synergy Court 13 Dubuque IA 52002 Phone: (563) 556-7600 With copy to: Brian Kane Kane, Norby, and Reddick 2100 Asbury Rd Dubuque, Iowa 52001 Phone: (563) 582-7980 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. 13th 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. 7.2 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of City and Developer and their respective successors and assigns. 7.3 Force Majeure. A party shall be excused from its obligations under this Agreement if and to the extent and during such time as the party is prevented, impeded, or hindered, unable to perform its obligations or is delayed in doing so due to events or conditions outside of the party's reasonable control and after the party has taken reasonable steps to avoid or mitigate such event or its consequences (each a "Force Majeure Event") including, without limitation in any way, as the result of any acts of God, war, fire, or other casualty, riot, civil unrest, extreme weather conditions, terrorism, strikes and/or labor disputes, pandemic, epidemic, quarantines, government stay-at-home orders, municipal and other government orders, or other matter beyond the control of such party. Upon the occurrence of a Force Majeure Event, the party incurring such Force Majeure Event will promptly give notice to the other party identifying the Force Majeure Event, explaining how it impacts performance and the estimated duration, identifying the relief requested, agreeing to limit damages to the other party and to immediately resume performance upon termination of the Force Majeure Event, and agreeing to supplement the notice as more information becomes available, and thereafter the parties shall meet and confer in good faith in order to identify a cure of the condition affecting its performance as expeditiously as possible. No obligation to make a payment required by this Agreement is excused by a Force Majeure Event. The 14 nonperforming party shall not be entitled to any damages or additional payments of any kind for any such delay. 7.4 Termination Date. This Agreement and the rights and obligations of the parties hereunder shall terminate on June 1, 2036 (the Termination Date). 7.5 Execution by Facsimile. The parties agree that this Agreement may be transmitted between them by facsimile machine or email attachment. The parties intend that the faxed signatures constitute original signatures and that a faxed Agreement containing the signatures (original or faxed) of all the parties is binding on the parties. 7.6 Memorandum of Development Agreement. City shall promptly record a Memorandum of Development Agreement in the form attached hereto as Exhibit E ie-the office of -the Recorder -of -Dubuque --County, Iowa. Developer shalf-pay-the-- costs for so recording. 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 Brad M. Cavanagh Mayor Attest: Adrienne N. Breitfelder City Clerk VANGUARD ENTERPRISES, INC. �Kn B. Priest resident 15 LIST OF EXHIBITS EXHIBIT A — Urban Renewal Plan EXHIBIT B — City Attorney's Certificate EXHIBIT C — Opinion of Developer's Counsel EXHIBIT D — City Certificate EXHIBIT E — Memorandum of Development Agreement EXHIBIT F — Certificate of Completion `[1 EXHIBIT A URBAN RENEWAL PLAN On file at the Office of the City Clerk, City Hall, 50 West 13th Street, Dubuque, Iowa 17 EXHIBIT B CITY ATTORNEY'S CERTIFICATE IN Barry A. Lindahl, Esq. THE CITY OF Senior Counsel Suite 330, Harbor View Place kaT 300 Main n Street B E Dubuque, Iowa 52001-6944 (563) 583-4113 office (563)583-1040 fax I,gl�t;qic+•:city�if'd,�l,ugnc,or�; Masterpiece on the Mississippi (DATE) q.4 Dear Dubuque AIE-Alnerip C#t� t 2007.2012.2013 2017*2019 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. BAL:tIs Very sincerely, Barry A. Lindahl, Esq. City Attorney 19 EXHIBIT C OPINION OF DEVELOPER'S COUNSEL 20 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 , (Developer) 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 , 20_. 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 corporation organized and existing under the laws of the State of Iowa and has full power and authority to execute, deliver and perform in full 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 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. 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. 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. 21 Very truly yours, 22 EXHIBIT D CITY CERTIFICATE 23 City Manager's Office THE CITY OF 50 West 13"' Street Dubuque, Iowa 4864 phone (563)589-4110 phone (563)589-4149 fax DUB e iv171QT(Cf}.ci lvoi d ubtiou►:.oi,e Masterpiece on the Mississippi (DATE) Dear Dubuque A!!-AmCNp Clay 2007*2012.2013 2017*2019 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 affects 24 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 - MCVM:jh Sincerely, Michael C. Van Milligen City Manager 25 EXHIBIT E MEMORANDUM OF DEVELOPMENT AGREEMENT 26 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 Vanguard Enterprises, Inc. was made regarding the following described premises: Lot 1 of Lot 4 of Dubuque Industrial Center West 4th Addition is the City of Dubuque, Iowa according to the recorded Plat thereof. The Development Agreement is dated for reference purposes the day of , 20 , 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 , 20 CITY OF DUBUQUE, IOWA In Barry A. Lindahl, Esq., Senior Counsel 27 STATE OF IOWA SS COUNTY OF DUBUQUE On this day of , 20_, before me, a Notary Public in and for the State of Iowa, in and for said county, personally appeared Barry A. Lindahl, Esq., to me personally known, who being by me duly sworn did say that he is the Senior Council for 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 Senior Council acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. Notary Public, State of Iowa m EXHIBIT F Certificate of Completion 29 CERTIFICATE OF COMPLETION WHEREAS, the City of Dubuque, Iowa, a municipal corporation (the "City"), has entered into a Development Agreement with Vanguard Enterprises, Inc. (the "Developer"), datedasof , 2023 (the "Agreement"), -certain real property located within the Dubuque Industrial Center Economic Development District and as more particularly described as follows: Lot 1 of Lot 4 of Dubuque Industrial Center West 4th Addition is the City of Dubuque, Iowa according to the recorded Plat thereof locally known as 1300 Synergy Court, (the Development Property); and WHEREAS, said Agreement incorporated and contained certain covenants and conditions with respect to the Minimum Improvements to the Property, in accordance with the Agreement; and WHEREAS, the Developer 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 City to permit the execution and recording of this certification; and NOW, THEREFORE, pursuant to Section 2.4 of the Agreement, this is to certify that all covenants and conditions of the Agreement with respect to the obligations of the Developer, and its successors and assigns, to construct the Minimum Improvements on the Property have been completed and performed by the Developer to the satisfaction of the City and such covenants and conditions are hereby satisfied. The County 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 all Mike Van Milligen, City Manager STATE OF IOWA ) ) SS COUNTY OF DUBUQUE ) On this day of , 2023, before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared and acknowledged said execution of the instrument to be his/her voluntary act and deed. Notary Public in and for Dubuque County, Iowa 31 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 Development Agreement between the City of Dubuque, Iowa and Vanguard Enterprises, Inc., 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 Dubuque Industrial Center Economic Development District, consisting of the funding of economic development grants for Vanguard Enterprises, Inc., under the terms and conditions of the Urban Renewal Plan for the Dubuque Industrial Center Economic Development District. The aggregate amount of the Urban Renewal Tax Increment Revenue Grant Obligations cannot be determined at the present time, but is not expected to exceed $271,470. 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: sill Connors, Economic Development, 50 W. 131h Street, Dubuque IA 52001, 563 589-4393 Return to: Jill Connors, Economic Development, 50 W. 1311 Street, Dubuque IA 52001, 563 589-4393 RESOLUTION NO. 367-23 FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA ON THE PROPOSED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE AND VANGUARD ENTERPRISES, INC., INCLUDING THE PROPOSED ISSUANCE OF URBAN RENEWAL TAX INCREMENT REVENUE GRANT OBLIGATIONS TO VANGUARD ENTERPRISES, INC., AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF Whereas, Vanguard Enterprises, Inc. is the owner of the following described real property: Lot 1 of Lot 4 of Dubuque Industrial Center West 4th Addition in the City of Dubuque, Iowa according to the recorded Plat thereof (the Property) ; and Whereas, City of Dubuque, Iowa (City) and Vanguard Enterprises, Inc. have entered into a Development Agreement, subject to the approval of the City Council, pursuant to which Vanguard Enterprises, Inc. will construct on the Property certain Improvements described in the Development Agreement; and Whereas, the City Council has tentatively determined that it would be in the best interests of City to approve the Development Agreement; and Whereas, the Development Agreement provides for the issuance by City of economic development grants to Vanguard Enterprises, Inc., referred to therein as Urban Renewal Tax Increment Revenue Grant Obligations, payable from the tax increment revenues collected in respect of the Improvements to be constructed by Vanguard Enterprises, Inc. in accordance with the Development Agreement, for the purpose of carrying out the objectives of an Urban Renewal Plan as hereinafter described, and Whereas, before said obligations 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 Council's intent to approve the proposed Development Agreement, to be held on the 20th day of November, 2023 at 6:30 p.m. Section 2. The City Council will also meet at said time and place for the purpose of taking action on the matter of authorizing Urban Renewal Tax Increment Revenue obligations, 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 Dubuque Industrial Center Economic Development District, consisting of the funding of economic development grants to Vanguard Enterprises, Inc., pursuant to the Development Agreement under the terms and conditions of said Urban Renewal Plan. It is expected that the aggregate amount of the Tax Increment Revenue obligations will be approximately $271,470. 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 6th day of November, 2023. Brad M. Cava gh, Mayor Attest: A?t '7 Adrienne N. Breitfelder, City Clerk