First Amendment to Grant Agreement with Forward Investments GroupCity of Dubuque
City Council Meeting
Public Hearings # 01.
Copyrighted
June 3, 2024
ITEM TITLE: First Amendment to Grant Agreement with Forward Investments Group
LLC
SUMMARY: Proof of publication on notice of public hearing to consider City Council
adopt the resolution approving a First Amendment to Grant Agreement
with Forward Investments Group LLC for the rehabilitation of 1047 Bluff
Street, and City Manager recommending approval.
RESOLUTION Approving a First Amendment to Grant Agreement by
and between the City of Dubuque, Iowa and Forward Investments Group
LLC, including the proposed issuance of urban renewal tax increment
revenue obligations relating thereto, and providing for the publication of
notice thereof
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
FIN ik[O]:ILyil21zIII l+]
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
1stAmendment Supporting Documentation
Resolution of Approval 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: First Amendment to Grant Agreement with Forward Investments Group
LLC
DATE: May 30, 2024
Economic Development Director Jill Connors is recommending City Council adopt the
resolution approving a First Amendment to Grant Agreement with Forward Investments
Group LLC for the rehabilitation of 1047 Bluff Street which will create three new
residential rental units, two of which are eligible for the housing creation incentive.
The Project continues to advance as planned. Since this Grant Agreement was
executed on August 21, 2023, the City Council has given additional support to the
creation of housing in the Greater Downtown Urban Renewal Area. Multifamily housing
creation projects are now eligible for either 10-years of tax abatement followed by 5-
years of tax increment financing or 15-years of tax increment financing. The proposed
First Amendment to Grant Agreement includes 15-years of tax increment financing for
the project.
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
THE CITY OF
DUB E
Masterpiece on the Mississippi
Dubuque
Economic Development
Department
1300 Main Street
All-Me1*109ft
Dubuque, Iowa 52001-4763
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Office (563) 589-4393
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TTY (563) 690-6678
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http://www.cityofdubuque.org
2007*2012.2013
2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: First Amendment to Grant Agreement with Forward Investments
Group LLC
DATE: May 30, 2024
INTRODUCTION
This memorandum presents for City Council review and approval a resolution approving
a First Amendment to Grant Agreement with Forward Investments Group LLC.
BACKGROUND
The City of Dubuque previously entered into a Grant Agreement, dated August 21, 2023
by Resolution No. 263-23 for the rehabilitation of 1047 Bluff Street (the Project). The
Project will create three new residential rental units, two of which are eligible for the
housing creation incentive. Additionally, the Project received a facade grant, planning &
design grant, and financial consultant grant to restore the structure's facade. The project
is also utilizing historic tax credits with design plans previously approved by the State
Historic Preservation Office.
DISCUSSION
The Project continues to advance as planned. Between the time this Grant Agreement
was executed and now, the City Council has given additional support to the creation of
housing in the Greater Downtown Urban Renewal Area by adding 5 years of tax
incentives. Multifamily housing creation projects are now eligible for either 10 years of tax
abatement followed by 5 years of tax increment financing or for 15 years of tax increment
financing. The proposed First Amendment to Grant Agreement includes 15 years of tax
increment financing for the project.
RECOMMENDATION/ ACTION STEP
Based on this project's alignment with the City Council's goal of having a Robust Local
Economy and Livable Neighborhoods and Housing, I recommend the City Council adopt
the attached resolution approving the First Amendment to Grant Agreement.
2
FIRST AMENDMENT
TO
GRANT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
FORWARD INVESTMENTS GROUP LLC
This First Amendment to Grant Agreement, dated for reference purposes the
day of March, 2024, 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 Forward Investments
Group LLC (Grant Recipient).
WHEREAS, City and Grant Recipient entered into a Grant Agreement dated
August 21, 2023 (the Grant Agreement); and
WHEREAS, City and Grant Recipient desire to amend the Grant Agreement as set
forth herein.
NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL TERMS AND
COVENANTS CONTAINED HEREIN, CITY AND GRANT RECIPIENT AGREE AS
FOLLOWS:
Section 1. Section 3 of the Grant Agreement is hereby amended by adding the
following:
3.6. Economic Development Grants to Developer. For and in consideration of
Grant Recipient'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 Grant Recipient 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
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 Grant Recipient (the Grant recipient Tax Increments). For purposes of
calculating the amount of the Economic Development Grants provided in this Section, the
Grant Recipient 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 ($73,400). The Grant Recipient 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.
3.7 Non-appropriation/Limited Source of Funding. 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
3.7. 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.
(1) 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.
(2) 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
(2013) § 403.19(2).
2
(3) The right of non -appropriation reserved to City in this Section 3.7 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 2. Section 1 of the Grant Agreement is hereby amended by adding the
following:
1.9 Security Cameras. Grant Recipient shall install security cameras on the exterior
of the Development Property and register said cameras with the "Secure Dubuque
Personal Surveillance System" described at https://cityofdubuque.orgl2980lSecure-
Dubuque.
Section 3.
force and effect.
Except as modified herein, the Grant Agreement shall remain in full
CITY OF DUBUQUE, IOWA
nagh, Mayor
Adrienne N. B
FORWARD INVESTMENTS
GROUP LLC
By:
nWosh n, Organizer
3
Prepared by: Ian C. Hatch, Economic Development. 50 W. 1311 Street, Dubuque IA 52001, 563 589-4393
Return to: Ian C. Hatch, Economic Development. 50 W. 131� Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 168-24
APPROVING A FIRST AMENDMENT TO GRANT AGREEMENT BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA AND FORWARD INVESTMENTS GROUP LLC,
INCLUDING THE PROPOSED ISSUANCE OF URBAN RENEWAL TAX INCREMENT
REVENUE OBLIGATIONS RELATING THERETO, AND PROVIDING FOR THE
PUBLICATION OF NOTICE THEREOF
WHEREAS, City of Dubuque, Iowa (City) and Forward Investments Group LLC
entered into a Grant Agreement, dated the 21 st day of August 2023, providing for a Fagade
Grant, a Planning & Design Grant, a Financial Consultant Grant, and a Housing Creation
Grant; and
WHEREAS, City and Forward Investments Group LLC now desire to amend the Grant
Agreement as set forth in the attached First Amendment; and
WHEREAS, the City Council has tentatively determined that it would be in the best
interests of the City to approve the First Amendment to Grant Agreement with Forward
Investments Group LLC, including the issuance of Urban Renewal Tax Increment Revenue
Obligations; and
WHEREAS, it is deemed necessary and advisable that City should authorize
Urban Renewal Tax Increment Revenue obligations, as provided by Iowa Code Chapter
403, pursuant to the First Amendment to Grant Agreement; and
WHEREAS, before said obligations may be approved, Iowa Code Chapter 403
requires that the City Clerk publish a notice of the proposal and of the time and place of
the meeting at which the City Council proposes to take action thereon and at which
meeting the City Council shall receive oral and/or written objections from any resident or
property owner of said City to such proposed action.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the Grant Agreement between the City of Dubuque and Forward
Investments Group LLC is hereby approved.
Section 2. That the Mayor is hereby authorized and directed to execute the Grant
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 Grant Agreement as herein approved.
Passed, approved and adopted this 3rd day of June, 2024,
Brad M Cavanagh; Mayor
Attest:
Adrienne N. Breitfelder, City Clerk
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:
05/24/2024
and for which the charge is 45.82
r,.
Subscribed to before me, a Notary is in and for
Dubuque County, Iowa,
this 24th day of May, 2024
Qa'� 1�
Nota ublic in and for Du
ybuque County, Iowa.
JANET K. PAPE
z Commission; Number 190659
My Commission Expires
12/11/2025
�n�y�
Ad text
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the Dubuque City Council
will conduct a public bearing on the 3rd day of June, 2024, 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 Grant Agreement between the City of Dubuque, Iowa and
Forward Investments Group 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 Forward Investments Group 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 cannot be determined at the present time but
is not expected to exceed $34,034.
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.conVAgendaPublic/ or by
contacting the City Clerks 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 20th day
of May 2024.
Adrienne N. Breitfelder,
Assistant City Clerk
It 5/24