Resolution Approving the Termination Agreement for the January 2023 Development Agreement with McCoy GroupCity of Dubuque
City Council Meeting
ITEM TITLE:
SUMMARY:
SUGGESTED
DISPOSITION:
ATTACHMENTS:
Description
MVM Memo
Staff Memo
Termination Agreement
Resolution
Copyrighted
September 16, 2024
Consent Items # 06.
Resolution Approving the Termination Agreement for the January 2023
Development Agreement by and between the City of Dubuque, Iowa and
McCoy Group
City Manager recommending City Council approval of the attached
Resolution approving a Termination Agreement by and between the City
of Dubuque, Iowa and McCoy Group, Inc. fora Development Agreement
dated for reference purposes the 3rd day of January 2023 for the
construction of a corporate headquarters on Southpark Court.
RESOLUTION Approving the Termination Agreement and Release
terminating the Development Agreement by and between the City of
Dubuque, Iowa and McCoy Group, Inc.
Suggested Disposition: Receive and File; Adopt Resolution(s)
Type
City Manager Memo
Staff Memo
Supporting Documentation
Resolutions
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
All -America City
1IIr
II
2007.2012.2013
2017*2019
SUBJECT: Resolution Approving the Termination Agreement for the January 2023
Development Agreement by and between the City of Dubuque, Iowa and
McCoy Group
DATE: September 11, 2024
Economic Development Director Jill Connors is recommending City Council approval of
the attached Resolution approving a Termination Agreement by and between the City of
Dubuque, Iowa and McCoy Group, Inc. for a Development Agreement dated for
reference purposes the 3rd day of January 2023 for the construction of a corporate
headquarters on Southpark Court.
In May of 2023, McCoy identified a separate site in the Port of Dubuque that better
accommodates its needs for continued growth in the City of Dubuque. The City and
McCoy entered into a new Development Agreement to redevelop 501 Bell Street into
the new McCoy headquarters. The new Development Agreement included the sale of
City -owned property to accommodate parking for McCoy employees and maintained the
existing requirement to create 18 new jobs by October 1, 2026.
With the new Development Agreement executed and the project underway, City and
McCoy are both in agreement to terminate the January 2023 Development Agreement
on the terms and conditions set forth in the Termination Agreement and Release.
The new Development Agreement by and between the City of Dubuque, Iowa and
McCoy Group, Inc. dated for reference purposes the 20th day of June, 2023 will remain
in full force and effect.
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
2
Masterpiece on the Mississippi
Dubuque
All-Aeenn
%,IX rm:Ii'lI
2007.2012.2013
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: Resolution Approving the Termination Agreement for the January 2023
Development Agreement by and between the City of Dubuque, Iowa and
McCoy Group
DATE: September 10, 2024
INTRODUCTION
This memorandum presents for City Council review and approval the attached Resolution
approving a Termination Agreement by and between the City of Dubuque, Iowa and McCoy
Group, Inc. for a Development Agreement dated for reference purposes the 3rd day of
January 2023 for the construction of a corporate headquarters on Southpark Court.
BACKGROUND
The Dubuque City Council previously approved a Development Agreement by and between
the City of Dubuque, Iowa (City) and McCoy Group, Inc. (McCoy), for the construction of a
new headquarters by McCoy on Southpark Court on McCoy's property. The Development
Agreement required McCoy to invest approximately $33 million to construct a 78,000 sqft
headquarters in the same general location as its existing facility located at 2099 Southpark
Court and create 18 new full-time jobs.
DISCUSSION
In May of 2023, McCoy identified a separate site in the Port of Dubuque that better
accommodates its needs for continued growth in the City of Dubuque. The City and McCoy
entered into a new Development Agreement to redevelop 501 Bell Street into the new
McCoy headquarters. The new Development Agreement included the sale of City -owned
property to accommodate parking for McCoy employees and maintained the existing
requirement to create 18 new jobs by October 1, 2026.
With the new Development Agreement executed and the project underway, City and
McCoy are both in agreement to terminate the January 2023 Development Agreement on
the terms and conditions set forth in the Termination Agreement and Release.
The new Development Agreement by and between the City of Dubuque, Iowa and McCoy
Group, Inc. dated for reference purposes the 20th day of June, 2023 will remain in full force
and effect.
RECOMMENDATION
I recommend the City Council adopt the attached Resolution approving a Termination
Agreement by and between the City of Dubuque, Iowa and McCoy Group, Inc. for a
Development Agreement dated for reference purposes the 3rd day of January 2023.
2
TERMINATION AGREEMENT
OF THE DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
MCCOY GROUP, INC.
This Termination Agreement, dated for reference purposes the 16 day of
, 2024, is made and entered into by and between the City of
Dubuque, Iowa and McCoy Group, Inc.
WHEREAS, the City of Dubuque, Iowa (City) and McCoy Group, Inc. (Developer)
entered into a Development Agreement, dated January 3, 2023 (the Agreement) for the
development of a new headquarters on Developer's property on Twin Valley Drive; and
WHEREAS, Developer has identified a separate site that better accommodates its
needs for continued growth in the City of Dubuque; and
WHEREAS, Developer no longer intends to develop a new headquarters on
Developer's property on Twin Valley Drive and has instead entered into a Development
Agreement for Developer's property in the South Port; and
WHEREAS, City and Developer have agreed to terminate the Development
Agreement upon the terms and conditions set forth herein.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
Section 1. The January 3, 2023 Development Agreement is hereby terminated.
Section 2. The parties release each other from any and all past, present and future
obligations of any kind arising under the Development Agreement.
CITY OF DUBUQUE, IOWA MCCOY GROUP, INC.
rad M gh, Mayor
ATTEST:
,41
Adrienne N. Breitfelder, City Clerk
09032024ba1
By: n-1 ..}f ofAA,k
, Its ~'CreaS:.�2r
Prepared by Ian Hatch, Assistant Economic Development Director, 1300 Main Street, Dubuque, IA 52001, (563) 589-4105
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13'h St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 284-24
APPROVING THE TERMINATION AGREEMENT AND RELEASE TERMINATING THE
DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE, IOWA
AND MCCOY GROUP, INC.
WHEREAS, the City of Dubuque, Iowa (City) and McCoy Group, Inc. (Developer)
entered into a Development Agreement dated for reference purposes the 3rd day of
January 2023 (the January 2023 Development Agreement) for the construction of a new
headquarters by Developer on Twin Valley Drive on Developer's property, legally
described as follows:
TRACT I (PIN 1501401003)
Lot 2 of Lot 3 of Lot 3 of Southpark Addition No. 1, in the City of Dubuque, Iowa,
according to the recorded plat thereof, subject to easements of record
TRACT II (PIN 1501401005)
Lot 2 of Southpark Addition No. 2, in the City of Dubuque, Iowa, according to the
recorded plat thereof, subject to easements of record
TRACT III (PIN 1501402003)
Lot 2 of Southpark Addition No.1, in the City of Dubuque, Iowa, according to the
recorded plat thereof, subject to easements of record (the "Property")
TRACT IV (PIN 1501401004)
Lot 1 of Southpark Addition No. 2, in the City of Dubuque, Iowa, according to the
recorded plat thereof, subject to easement of record
TRACT V (PINS 1501328002 and 1501328003)
Lots 1 and 2 of Gudenkauf Place, City of Dubuque, Iowa
; and
WHEREAS, Developer has identified a separate site that better accommodates its
needs for continued growth in the City of Dubuque; and
WHEREAS, Developer no longer intends to develop the new headquarters on
Developer's property on Twin Valley Drive and has instead entered into a new
Development Agreement for Developer's property in the South Port; and
WHEREAS, City and Developer now desire to terminate the January 2023
Development Agreement on the terms and conditions set forth in this Termination
Agreement and Release, attached hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA THAT:
Section 1. The Termination Agreement and Release Between the City of Dubuque,
Iowa and McCoy Group, Inc. attached hereto is hereby approved.
Section 2. The Mayor is hereby authorized and directed to sign the Termination
Agreement and Release on behalf of the City of Dubuque.
Section 3. The City Manager is authorized to take such actions as are necessary
to comply with the terms of the Termination Agreement and Release as herein approved.
Passed, approved, and adopted this 16th day of September 2024.
rad M agh, Mayor
Attest:
Adrienne N. Breitfelder, City Clerk