First Amendment to Development Agreement with HG APT LLC for the Rehabilitation of 2901 Central AvenueCity of Dubuque
City Council
CONSENT ITEMS # 5.
Copyrighted
January 21, 2025
ITEM TITLE: First Amendment to Development Agreement between the
City of Dubuque and HG APT LLC for the Rehabilitation of
2901 Central Avenue
SUMMARY: City Manager recommending City Council approval of the
attached Resolution approving the First Amendment to
Development Agreement between the City of Dubuque and
HG APT LLC.
RESOLUTION Approving The First Amendment To
Development Agreement By And Between The City Of
Dubuque, Iowa And HG Apt LLC
SUGGUESTED Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Staff Memo
3. First Amendment
4. Resolution
Page 77 of 740
Dubuque
THE CITY OF
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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 between the City of
Dubuque and HG APT LLC for the Rehabilitation of 2901 Central Avenue
DATE: January 15, 2025
Economic Development Director Jill Connors is recommending City Council approval of
the attached Resolution approving the First Amendment to Development Agreement
between the City of Dubuque and HG APT LLC. This project will further the goals and
priorities of the City Council and bring 18 new market rate rental units to the Central
Avenue Corridor.
The rehabilitation of 2901 Central Avenue is nearing completion. A majority of the units
and the fagade have been completed, but some Minimum Improvements required in the
Development Agreement remain outstanding. The Developer has remained in close
communication with City staff and believe the project will be fully completed by April 1,
2025. The attached Resolution approves the First Amendment to Development
Agreement extending the project completion date to April 1, 2025. This will allow time
for the project to be completed and properly inspected.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Y
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Page 78 of 740
Dubuque Economic Development
Department
THE CITY OF 1300 (wain street
All•Ameria10V Dubuque, Iowa 52001-4763
UB E I k"I""`"I""q Office (563) 589-4393
1 I I TTY (563) 690-6678
I® http://www.cityofdubuque.org
2007-2012*2013
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: First Amendment to Development Agreement between the City of
Dubuque and HG APT LLC for the Rehabilitation of 2901 Central Avenue
DATE: January 14, 2025
INTRODUCTION
This memorandum presents for City Council consideration and action the attached
Resolution approving a First Amendment to Development Agreement between the City
of Dubuque and HG APT LLC for the Rehabilitation of 2901 Central Avenue.
:1_Ty:Tr]:1111110]Z I C,
The Downtown Rehabilitation Loan Program (DRLP) provides several incentives from the
Economic Development department for the rehabilitation of historic buildings in our
greater downtown.
This program has had a positive impact in the appearance and livability of our downtown,
which leads to a more attractive business and residential environment. As such, the
Economic Development Department finds these programs to be great tools for attracting
and retaining a quality workforce for our businesses.
The City entered into a Development Agreement dated September 5, 2023 for the
redevelopment of 2901 Central Avenue. The Agreement includes a Housing Creation
Incentive in an amount not to exceed $180,000 (18 units at $10,000 per unit), a Downtown
Rehabilitation Grant not to exceed $35,000 for costs related to the fagade of the structure,
and 15 years of tax increment financing.
The original agreement required the minimum improvements to the property be
completed by December 31, 2024.
Page 79 of 740
DISCUSSION
The rehabilitation of 2901 Central Avenue is nearing completion. A majority of the units
and the fagade have been completed, but some Minimum Improvements required in the
Development Agreement remain outstanding. The Developer has remained in close
communication with City staff and believe the project will be fully completed by April 1,
2025. The attached Resolution approves the First Amendment to Development
Agreement extending the project completion date to April 1, 2025. This will allow time for
the project to be completed and properly inspected.
RECOMMENDATION / ACTION STEP
I respectfully request City Council approval of the attached Resolution approving the First
Amendment to Development Agreement between the City of Dubuque and HG APT LLC.
This project will further the goals and priorities of the City Council and bring 18 new market
rate rental units to the Central Avenue Corridor.
K
Page 80 of 740
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
HG APT LLC
This First Amendment to Development Agreement, dated for reference purposes
the fn,L day of 2025, is made and entered into by the City of Dubuque,
Iowa, a municipality (City), Istabished pursuant to the Iowa Code and acting under
authorization of Iowa Code Chapter 403, as amended (the Urban Renewal Act), and HG
APT LLC (Developer).
WHEREAS, City and Developer entered into a Development Agreement dated
September 5, 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 2.4 of the Agreement is hereby amended to read as follows:
2.4 Timing of Improvements. Developer hereby agrees that construction
of the Minimum Improvements on the Property shall be commenced by
November 1, 2023 and shall be substantially completed by April 1, 2025. The
time frames 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 2. Except as modified herein, the Agreement shall remain in full force
and effect.
CITY OF DUBUQUE, IOWA HG APT LLC
Page 81 of 740
Ago!&
i • 1 •
Attest:
Adrienne N. Breiifelder, City Clerk
By: I "
Josh Manders, Owner
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" St., Dubuque, IA 52001. (563) 589-4100
RESOLUTION NO. 9-25
APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF DUBUQUE, IOWA AND HG APT LLC
Whereas, the City of Dubuque (City) and HG APT LLC (Developer) entered into a
Development Agreement dated September 5, 2023 for the redevelopment of 2901 Central
Avenue in the City of Dubuque, Iowa (the Project); and
Whereas, City and Developer desire to amend the Development Agreement as set forth in
the attached First Amendment to Development Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA THAT:
Section 1. The First Amendment to Development Agreement by and between the City of
Dubuque, Iowa and HG APT LLC, copy of which is attached hereto, in hereby approved.
Section 2. 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. 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 21 st day of January, 2025.
Attest:
Adrienne N. Breitfelder, City Clerk