Approving a First Amendment to Development Agreement with 799 Main, LLC Providing for the Issuance of Urban Renewal Tax Increment Revenue Grant Obligations Pursuant to the Development Agreement_HearingCity of Dubuque
City Council Meeting
Public Hearings # 05.
Copyrighted
November 20, 2023
ITEM TITLE: Resolution Approving a 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: Proof of publication on notice of public hearing to consider City Council
adopt the attached resolution approving a 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, and City Manager recommending approval.
RESOLUTION Approving a FirstAmendmentto Development
Agreement by and between the City of Dubuque, Iowa and 799 Main,
LLC, including the issuance of Urban Tax Increment Revenue
Obligations
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description
MVM Memo
Staff Memo
First Amendment
Resolution
Type
City Manager Memo
Staff Memo
Supporting Documentation
Resolutions
THE CITY OF
Dubuque
DUB TEE1.
All -America City
Masterpiece on the Mississippi
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution Approving a 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 15, 2023
Economic Development Director Jill Connors is recommending City Council adopt the
attached resolution approving a 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.
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.
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.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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
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1111.
Office (563) 589-4393
TTY (563) 690-6678
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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 Approving a 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 14, 2023
INTRODUCTION
This memorandum is a request for the City Council to adopt the attached resolution
approving a 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, following a public hearing, the City Council adopt the attached resolution
approving a 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
By: By; -
Brad M. Cav , Mayor Chris Miller, Owner
Attest:
Adrienne N. Breitfelder, City Clerk
PA
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. 388-23
APPROVING A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF DUBUQUE, IOWA AND 799 MAIN, LLC, INCLUDING THE
ISSUANCE OF URBAN TAX INCREMENT REVENUE OBLIGATIONS
WHEREAS, the City of Dubuque, Iowa (City) and 799 Main, LLC entered into a
Development Agreement, dated for reference the 17t" day of ,duly, 2023, providing for a
Facade Grant, Planning & Design Grant, a Financial Consultant Grant, a Housing
Creation Grant, and Urban Renewal Tax Increment Revenue Obligations; and
WHEREAS, the City Council, by Resolution No. 366-23, dated November 6, 2023,
declared its intent to approve a First Amendment to Development Agreement by and
between City and 799 Main, LLC, including the issuance of Urban Renewal Tax Increment
Revenue Obligations; and
WHEREAS, pursuant to published notice, a public hearing was held on the
proposed First Amendment to Development Agreement on November 20, 2023 at 6:30
p.m.; and
WHEREAS, it is the determination of the City Council that approval of the First
Amendment to Development Agreement for redevelopment of the Property by 799 Main,
LLC, according to the terms and conditions set out in the First Amendment to
Development 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 First Amendment to Development Agreement by and
between the City of Dubuque, Iowa, and 799 Main, LLC, a copy of which is attached
hereto, including the issuance of Urban Renewal Tax Increment Revenue Obligations, is
hereby approved.
Section 2. That the Mayor is hereby authorized and directed to execute the
Development 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 Development Agreement as herein approved.
Passed, approved and adopted this 20th day of November, 2023.
Attest:
s
Adrienne N. Breitfelder, City Clerk
Brad M. Cavana ayor
Z
STATE OF IOWA SS:
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
11/10/2023
and for which the charge is 45.26
Subscribed to before me, a Notary Public in and for
Dubuque County, Iowa,
this loth day of November, 2023
Notary ' i : is in and for Dubuque County, Iowa.
AY-
p,IAL JAPtET K. PAPE
r Commission Number 199659
My Commission Expires
12/11 /2025
/pwA
Ad text :
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.
6th 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. 13th 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
It 11/10