First Amendment to Development Agreement with Wilson House Apts, LLC for the Rehabilitation of 1243 Locust StreetCity of Dubuque
City Council
CONSENT ITEMS # 5.
Copyrighted
April 21, 2025
ITEM TITLE: First Amendment to Development Agreement between the
City of Dubuque and Wilson House Apts, LLC for the
Rehabilitation of 1243 Locust Street
SUMMARY: City Manager recommending City Council adopt the attached
resolution approving the attached First Amendment to
Development Agreement by and between the City of
Dubuque and Wilson House Apts, LLC for the Rehabilitation
of 1243 Locust Street.
RESOLUTION Approving The First Amendment To
Development Agreement By And Between The City Of
Dubuque, Iowa And Wilson House Apts, LLC
SUGGUESTED Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Staff Memo
3. First Amendment
4. Resolution
Page 127 of 1152
THE C
D�Uj_!B E-E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
All -America Ciry
IIII1'
2007.2012.2013
2017*2019
SUBJECT: First Amendment to Development Agreement between the City of
Dubuque and Wilson House Apts, LLC for the Rehabilitation of 1243
Locust Street
DATE: April 16, 2025
Economic Development Director Jill Connors is recommending City Council adopt the
attached resolution approving the attached First Amendment to Development
Agreement by and between the City of Dubuque and Wilson House Apts, LLC for the
Rehabilitation of 1243 Locust Street.
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 May 20, 2024 for the
redevelopment of 1243 Locust Street. The Agreement includes a Housing Creation
Incentive in an amount not to exceed $50,000 (5 units at $10,000 per unit), a Downtown
Rehabilitation Grant not to exceed $20,000 for costs related to the facade of the
structure, and 15 years of tax increment financing.
Since executing the Development Agreement, the project has encountered a delay in
securing the required financing for the project and a modification to the City's Downtown
Rehabilitation Grant guidelines now allows for increased funding related to facade
improvements. These circumstances have prompted staff to draft an amendment to the
Development Agreement. The attached First Amendment modifies the milestone dates
to the Agreement and incorporates the changes to the Downtown Rehabilitation Grant,
increasing the available grant total to $35,000.
Page 128 of 1152
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:as
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
2
Page 129 of 1152
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 Wilson House Apts, LLC for the Rehabilitation of 1243
Locust Street
DATE: April 15, 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 Wilson House Apts, LLC for the Rehabilitation of 1243 Locust Street.
BACKGROUND
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 May 20, 2024 for the
redevelopment of 1243 Locust Street. The Agreement includes a Housing Creation
Incentive in an amount not to exceed $50,000 (5 units at $10,000 per unit), a Downtown
Rehabilitation Grant not to exceed $20,000 for costs related to the fagade of the structure,
and 15 years of tax increment financing.
Q 6*61111*11101 Z
Page 130 of 1152
Since executing the Development Agreement, the project has encountered a delay in
securing the required financing for the project and a modification to the City's Downtown
Rehabilitation Grant guidelines now allows for increased funding related to fagade
improvements. These circumstances have prompted staff to draft an amendment to the
Development Agreement. The attached First Amendment modifies the milestone dates
to the Agreement and incorporates the changes to the Downtown Rehabilitation Grant,
increasing the available grant total to $35,000.
:7x010]LTA IM140117_111Is] ►W%TOIM0[+ 9
I respectfully request City Council approval of the attached Resolution approving the First
Amendment to Development Agreement between the City of Dubuque and Wilson House
Apts, LLC. This project will further the goals and priorities of the City Council and bring 5
new market rate rental units to the downtown.
K
Page 131 of 1152
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
WILSON HOUSE APTS, LLC
This First Amendment to Development Agreement, dated for reference purposes
the � I ~ day of Ap r: I , 2025, is made and entered into by the City of Dubuque,
Iowa, a municipality tCity), established pursuant to the Iowa Code and acting under
authorization of Iowa Code Chapter 403, as amended (the Urban Renewal Act), and
WILSON HOUSE APTS, LLC (Developer).
WHEREAS, City and Developer entered into a Development Agreement dated May
20, 2024 (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
August 1, 2025 and shall be substantially completed by December 31, 2026.
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. Section 3.1 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, 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, 2025 ($90,500). 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, 2022 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.
Section 3. Section 3.5 of the Agreement is hereby amended to read as follows:
3.5 Downtown Rehabilitation Grant. City agrees to provide a matching (1:1)
grant not to exceed Thirty -Five Thousand Dollars ($35,000) to reimburse Developer
W
for documented costs related to the following eligible activities:
(1) Planning & Design predevelopment costs, architectural and engineering fees
and other authorized soft costs associated with the rehabilitation of the Development
Property on the terms and conditions set forth by the State Historic Preservation Office,
as set forth in Exhibit G.
(2) Facade documented costs that improve the overall appearance of the
Development Property, provided the Project meets the criteria of the Facade Grant
Program and on the terms and conditions set forth by the State Historic Preservation
Office, as set forth in Exhibit G.
(3) Financial Consultant documented costs related to hiring a financial consultant
to evaluate the Project's feasibility on the terms and conditions set forth in Exhibit G.
Section 4. Section 5.2. of the Agreement is hereby amended to read as follows:
5.2. Operation of Property.
(1) Housing Vouchers. For and in consideration of the Grant offered under this
Agreement, during the operation of the Development Property as a rental
residential property, Developer shall accept, or cause to be accepted, applications
from prospective tenants with housing vouchers issued under the U.S. HUD's
Section 8 voucher program or a similar program who are otherwise qualified
prospective tenants. Developer shall not deny any tenant a lease based on a public
assistance source of income. A public assistance source of income means income
and support derived from any tax supported federal, state or local funds, including,
but not limited to, social security, supplemental security income, temporary
assistance for needy families, family investment program, general relief, food
stamps, and unemployment compensation, housing choice voucher subsidies and
similar rent subsidy programs. This Section 5.2 shall survive the termination of this
Agreement. If Developer or Developer's successors or assigns violates the
requirements of this Section 5.2 as determined by the City Manager in the City
Manager's sole discretion after the termination of this Agreement, Developer or
Developer's successors or assigns shall not be eligible for any City financial
assistance programs.
(2) Short -Term Rental. For and in consideration of the Grant offered under this
Agreement, during the operation of the Development Property as residential rental
property and during the term of this Agreement, no residential rental unit shall be
leased to any tenant for an initial term of fewer than thirty (30) days, and no portion
of the Development Property may be used for short-term rental purposes.
Developer agrees to include similar prohibitions regarding short -terms rentals in
3
each lease agreement for each residential rental unit of the Development Property
during the term of this Agreement. Developer further agrees to include such
prohibitions in each and every lease agreement for any residential rental unit of
the Development Property for so long as any single residential rental unit of the
Development Property remains subject to the terms and conditions of this
Agreement.
Section 5. Section 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 6. Except as modified herein, the Agreement shall remain in full force and
effect.
CITY OF DUBUQUE, IOWA WILSON HOUSE APTS, LLC
By: By: Z'
i
Brad M. gh, Mayor Andrew McCready, Vice Pr sident
Attest:
Adrienne N. Breitfeldet, City Clerk
lH
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. 1311 St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 131-25
APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF DUBUQUE, IOWA AND WILSON HOUSE APTS, LLC
Whereas, the City of Dubuque (City) and Wilson House Apts, LLC (Developer) entered into
a Development Agreement dated May 20, 2024 for the redevelopment of 1234 Locust Street
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 Wilson House Apts, LLC, copy of which is attached hereto, is 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 April, 2025.
Attest:
Adrienne N. Breitfelder`, City Clerk