First Amendment to Development Agreement with Farley & Loetscher, LLCCity of Dubuque
City Council Meeting
Consent Items # 010.
Copyrighted
March 18, 2024
ITEM TITLE: First Amendment to Development Agreement by and between the City of
Dubuque, Iowa, and Farley& Loetscher, LLC
SUMMARY: City Manager recommending adoption of the attached resolution
approving the First Amendment to Development Agreement by and
between the City of Dubuque, Iowa, and Farley & Loetscher, LLC.
SUGGESTED
DISPOSITION:
ATTACHMENTS:
Description
MVM Memo
Staff Memo
Resolution of Approval
1 st Amendment
RESOLUTION Approving a First Amendment to Development
Agreement by and Between the City of Dubuque, Iowa, and Farley &
Loetscher, LLC
Suggested Disposition: Receive and File; Adopt Resolution(s)
Type
City Manager Memo
Staff Memo
Resolutions
Supporting Documentation
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: First Amendment to Development Agreement by and between the City of
Dubuque, Iowa, and Farley & Loetscher, LLC
DATE: March 12, 2024
Economic Development Director Jill Connors is recommending City Council adopt the
attached resolution approving the First Amendment to Development Agreement by and
between the City of Dubuque, Iowa, and Farley & Loetscher, LLC.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
CC' Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Dubuque
THE CITY OF
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Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
Economic Development
Department
1300 Main Street
Dubuque, Iowa 52001-4763
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
SUBJECT: First Amendment to Development Agreement by and between the
City of Dubuque, Iowa, and Farley & Loetscher, LLC
DATE: February 15, 2024
INTRODUCTION
This memorandum presents for City Council consideration and action the attached
resolution approving a First Amendment to Development Agreement by and between the
City of Dubuque, Iowa, and Farley & Loetscher, LLC for the redevelopment of property at
801 Jackson Street.
BACKGROUND
In 2010, the City of Dubuque began to construct public improvements that were in the
best interest of the City and the Historic Millwork District in orderto support and encourage
private development in the District. In order to accomplish these improvements, the City
negotiated voluntary assessment agreements with several District property owners,
including the property owner for 801 Jackson Street, Wilmac Property Company.
The assessment was to be forgiven when the property owner constructed certain
minimum improvements on the property. Those minimum improvements at 801 Jackson
Street were not completed and in February 2013, the City Council adopted the final
assessment schedule authorizing the county treasurer to begin collecting the annual
required payments of the assessment. The property at 801 Jackson Street was assessed
$34,121.50.
DISCUSSION
On September 5, 2023 the City Council executed a development agreement with Farley &
Loetscher, LLC for the redevelopment of 801 Jackson Street. The developer will make
interior and exterior improvements of approximately $25 million for the creation of 126
residential units. The developer is now requesting the forgiveness of the balance of the
special assessment. The current principal balance is $9,099.08.
As precedent, in 2019 the City agreed to forgive the balance of the special assessment
when Dupaco redeveloped the Voices Building in an amount of $101,691.67.
RECOMMENDATION
I recommend the City Council adopt the attached resolution approving the First
Amendment to Development Agreement by and between the City of Dubuque, Iowa, and
Farley & Loetscher, LLC.
2
Prepared by: Jill Connors, Economic Development, 50 W. 1N' 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. 57-24
APPROVING A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
BY AND BETWEEN THE CITY OF DUBUQUE, IOWA, AND FARLEY &
LOETSCHER, LLC
Whereas, the City of Dubuque, Iowa (City) and Farley & Loetscher, LLC
(Developer) entered into a Development Agreement dated for reference purposes
September 5, 2023, for the redevelopment of 801 Jackson Street in the City of Dubuque,
Iowa (the Property); and
Whereas, City and Developer desire to amend the Development Agreement as set
forth in the attached First Amendment to Development Agreement; and
Whereas, it is the determination of the City Council that approval of 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 Farley & Loetscher, LLC is hereby approved.
02152024bal
Section 2. That the Mayor is hereby authorized and directed to execute the First
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 First Amendment to Development Agreement
as herein approved.
Passed, approved and adopted this 18t' day of March, 2024.
Attest:
Adrienne N. Breitfelder, City Clerk
Brad 6-G"nagh, Mayor
2
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA,
AND
FARLEY & LOETSCHER, LLC
This First Amendment to Development Agreement (Agreement) dated for
reference purposes the 29th day of February 2024, is made and entered into
by and between the City of Dubuque, Iowa (City) and Farley & Loetscher, LLC
(Developer).
WHEREAS, City and Developer entered into a Development Agreement dated for
reference purposes September 5, 2023; and
WHEREAS City and Developer desire to amend the Development Agreement as
set forth herein.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN CITY AND
DEVELOPER AS FOLLOWS:
1. Section 2 is amended by adding the following Section 2.6:
2.6 Special Assessment. A Special Assessment of $34,121.55 was assigned
in 2013 to Wilmac Property Company, a previous owner of the Property, related to
pavement improvements adjacent to the Property.
The remaining balance of the special assessment will be forgiven upon receipt by
the City of the financial commitment letter (Section 1.4(4)), certificate of insurance
(Section 4.6), and approved plans (Section 2.3).
2. Section 4.6 is amended to read as follows:
4.6 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
Improvements) replacement value when construction is completed, naming City
as lender loss payable. Coverage shall include the "special perils" form and
developer shall furnish City with proof of insurance in the form of a certificate of
insurance.
02152024bal
(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), naming City as lender
loss payable. Developer shall furnish to City proof of insurance in the form of a
certificate of insurance.
3. All other terms of the Development Agreement shall remain in full force and
effect.
CITY OF DUBUQUE, IOWA
By
Brad M. Cavana°g /,Mayor
Attest
Adrienne N. Breitfelder, City Clerk
FARLEY & LOETSCHER, LLC
Matt Mulligan, Member
V,
STATE OF IOWA )
SS
COUNTY OF DUBUQUE )
On this day of 20_, before me the undersigned, a Notary
Public in and for the State of Iowa, personally appeared Joe Hearn, to me personally
known, who, being by me duly sworn, did say that he is the President & CEO of Dupaco
Community Credit Union, the Iowa organization executing the instrument to which this is
attached and that as said President & CEO of Dupaco Community Credit Union
acknowledges the execution of said instrument to be the voluntary act and deed of said
company, by it and by him, an individual, voluntarily executed.
Notary Public
STATE OF IOWA )
SS
COUNTY OF DUBUQUE )
On this 2gth day of February 2024,_before me the undersigned, a Notary
Public in and for the State of Iowa, personally appeared Matthew Mulligan, to me
personally known, who, being by me duly sworn, did say that he is a Member of Farley
& Loetscher, LLC, the Iowa organization executing the instrument to which this is
attached and that as Member of Farley & Loetscher, LLC said acknowledges the
execution of said instrument to be the voluntary act and deed of said company, by it and
by him, an individual, voluntarily executed.
6�dOZZZ , azz !t MICHELE MAFIE STEFFEN
_ z Commission Number 703023
Notary Public �_ My Comm. Exp. y 1
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