Resolution Approving a Second Amendment to Development Agreement with 799 Main, LLCCity of Dubuque
City Council Meeting
Consent Items # 014.
Copyrighted
December 4, 2023
ITEM TITLE: Resolution Approving a Second Amendment to Development
Agreement by and between the City of Dubuque, Iowa and 799 Main,
LLC
SUMMARY: City Manager recommending City Council adopt the attached resolution
approving a Second Amendment to Development Agreement by and
between the City of Dubuque, Iowa and 799 Main, LLC (Developer).
RESOLUTION Approving a Second Amendment to Development
Agreement by and between the City of Dubuque, Iowa and 799 Main,
LLC (Developer).
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Second Amendment Supporting Documentation
Resolution 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 Second Amendment to Development Agreement
by and between the City of Dubuque, Iowa and 799 Main, LLC
DATE: November 29, 2023
Economic Development Director Jill Connors is recommending City Council adopt the
attached resolution approving a Second Amendment to Development Agreement by
and between the City of Dubuque, Iowa and 799 Main, LLC (Developer).
Due to state funding timelines, supply chain issues, and other circumstances impacting
the development industry, the Developer has requested the completion date for this
project be modified to July 1, 2025. A Second Amendment has been prepared to adjust
the completion date, the closing date, the schedule of economic development grants to
Developer, and the overall termination date of the Agreement.
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
E
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 Second Amendment to Development Agreement
by and between the City of Dubuque, Iowa and 799 Main, LLC
DATE: November 29, 2023
INTRODUCTION
This memorandum is a request for the City Council to adopt the attached resolution
approving a Second Amendment to Development Agreement by and between the City
of Dubuque, Iowa and 799 Main, LLC.
BACKGROUND
The City Council previously entered into a Development Agreement with 799 Main, LLC,
dated for reference the 17th day of July, 2023, as amended. The Agreement covers the
redevelopment of 799 Main street including the creation of 16 rental units and first -floor
commercial space.
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.
The project will utilize historic tax credits with the remainder of the funding being a
combination of private and public financing.
DISCUSSION
Due to state funding timelines, supply chain issues, and other circumstances impacting
the development industry, the Developer has requested the completion date for this
project be modified to July 1, 2025. This request is not uncommon. Past redevelopment
projects of this scale have requested and been granted extensions on the project
completion date. A Second Amendment has been prepared to adjust the completion
date, the closing date, the schedule of economic development grants to Developer, and
the overall termination date of the Agreement.
RECOMMENDATION/ ACTION STEP
I recommend the City Council adopt the attached resolution approving a Second
Amendment to Development Agreement by and between the City of Dubuque, Iowa,
and 799 Main, LLC.
2
SECOND AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
799 MAIN, LLC
This Second Amendment fro Development Agreement, dated for reference
purposes the day of f 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, as amended (the Agreement); and
WHEREAS, City and Developer desire to further 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 1.3 of the Agreement is hereby amended to read as follows:
1.3 Closing. The closing shall take place on the Closing Date which shall be
the 315t day of January, 2024, or such other date as the parties shall agree in
writing but in no event shall the Closing Date be later than the 28th day of February,
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.
Section 2. Section 2.3 of the Agreement is hereby amended to read as follows:
2.3 Timing of Improvements. Developer hereby agrees that construction of the
Minimum Improvements on the Property shall begin by May 1, 2024, and shall be
substantially completed by July 1, 2025. The time for the performance of these
obligations shall be suspended due to unavoidable delays meaning delays, outside
the control of the party claiming its occurrence in good faith, which are the direct
result.of strikes, other labor troubles, unusual shortages of materials or labor,
unusually severe or prolonged bad weather, acts of God, fire or other casualty to
the Minimum Improvements, 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 acts of any federal, state or local government which
directly result in extraordinary delays. The time for performance of such
obligations shall be extended only for the period of such delay.
Section 3. Section 3 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, 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
November 1, 2042
May 1, 2043
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.
3.2 To fund the Economic Development Grants, City shall certify to the County prior
to December 1, 2026 its request for the available Developer Tax Increments resulting
2
from the assessments imposed by the County as of January 1 of that year and each
year thereafter until and including January 1, 2043, to be collected by City as taxes are
paid during the following fiscal year and which shall thereafter be disbursed to the
Developer on November 1 and May 1 of that fiscal year. (Example: if City so certifies in
December, 2026, the Economic Development Grants in respect thereof would be paid
to the Developer on November 1, 2027, and May 1, 2028.)
Section 4. Section 7 of the Agreement is hereby amended to read as follows:
7.4 Termination Date. This Agreement and the rights and obligations of the parties
hereunder shall terminate on December 31, 2043 (the Termination Date).
Section 5. Except as modified herein, the Agreement shall remain in full force
and effect.
CITY OF DUBUQUE, IOWA 799 MAIN, LLC
By: By -
Hi ad Chris Miller, Owner
Ko'�y A,
WA I>,�,� MC%yiar frC T� M
Attest:
NI-1k), &."ne A, e, il " �/-
Adrienne N. Breiffelder, City Clerk
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. 397-23
APPROVING A SECOND AMENDMENT TO DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF DUBUQUE, IOWA AND 799 MAIN, LLC
WHEREAS, the City of Dubuque, Iowa (City) and 799 Main, LLC entered into a
Development Agreement, dated for reference the 17t" day of July, 2023, as amended,
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 and 799 Main, LLC desire to further amend the Agreement;
and
WHEREAS, it is the determination of the City Council that approval of the Second
Amendment to Development Agreement for redevelopment of the Property by 799 Main,
LLC, according to the terms and conditions set out in the Second 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 Second Amendment to Development Agreement by and
between the City of Dubuque, Iowa, and 799 Main, LLC, a copy of which is attached
hereto, is hereby approved.
Section 2. That the Mayor is hereby authorized and directed to execute the
Second Amendment to 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 Second Amendment to Development
Agreement as herein approved.
Passed, approved and adopted this 4t" day of December, 2023.
Attest;
6y�
Adrienne N. Breltfelder, City Clerk
k
Katy A. Wethal, Mayor Pro Tern
N