Corrected First Amendment Development Agreement with Wilson House Apts, LLC for Rehabilitation of 1243 Locust St.City of Dubuque
City Council
CONSENT ITEMS # 8.
Copyrighted
May 19, 2025
ITEM TITLE: Corrected First Amendment 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
resolution correcting the scrivener's error in the Original First
Amendment to the Development Agreement for 1243 Locust
Street.
RESOLUTION Nunc Pro Tunc Correcting And Amending A
Scrivener's Error In 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. Corrected First Amendment
4. Resolution
Page 165 of 950
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Corrected First Amendment to Development Agreement between the City
of Dubuque and Wilson House Apts, LLC for the Rehabilitation of 1243
Locust Street
DATE: May 13, 2025
Economic Development Director Jill Connors is recommending City Council adopt the
resolution correcting the scrivener's error in the Original First Amendment to the
Development Agreement for 1243 Locust Street.
On April 21, 2025, the Dubuque City Council approved the Original First Amendment tc
Development Agreement allowing the Developer to receive the benefits of the modified
Downtown Rehabilitation Grant program. Subsequently, a scrivener's error was
identified in the numbering of the incentives outlined in Section 3 of the Original First
Amendment. The Original First Amendment to Development Agreement unintentionally
removed an incentive due to a numbering error. The Corrected First Amendment to
Development Agreement renumbers the incentives to correct the error. All other
previously approved terms and conditions remain in full force and effect.
The attached Resolution includes the phrase "Nunc Pro Tunc", which in Latin means
"now for then". This means that the enclosed Resolution is intended to have a
retroactive impact to correct the scrivener's error so that the Resolution will continue to
have the same effective date and such effective date will not be changed by the
corrective Resolution.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
S4.zn'-
Mic ael C. Van Milligen
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Page 166 of 950
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: Corrected First Amendment to Development Agreement between the City
of Dubuque and Wilson House Apts, LLC for the Rehabilitation of 1243
Locust Street
DATE: May 13, 2025
INTRODUCTION
This memorandum presents for City Council consideration and action the attached
Resolution approving a Corrected First Amendment to Development Agreement between
the City of Dubuque and Wilson House Apts, LLC for the Rehabilitation of 1243 Locust
Street.
-f_T61:Tr]:00]LIIewJ
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, including a Housing Creation Incentive, a
Downtown Rehabilitation Grant, and 15 years of tax increment financing.
DISCUSSION
Page 167 of 950
On April 21, 2025, the Dubuque City Council approved the Original First Amendment to
Development Agreement allowing the Developer to receive the benefits of the modified
Downtown Rehabilitation Grant program. Subsequently, a scrivener's error was identified
in the numbering of the incentives outlined in Section 3 of the Original First Amendment.
The Original First Amendment to Development Agreement unintentionally removed an
incentive due to a numbering error. The Corrected First Amendment to Development
Agreement renumbers the incentives to correct the error. All other previously approved
terms and conditions remain in full force and effect.
The attached Resolution includes the phrase "Nunc Pro Tunc", which in Latin means "now
for then". This means that the enclosed Resolution is intended to have a retroactive
impact to correct the scrivener's error so that the Resolution will continue to have the
same effective date and such effective date will not be changed by the corrective
Resolution.
RECOMMENDATION / ACTION STEP
I respectfully request that the attached Resolution correcting the scrivener's error be
adopted to support invest in the greater downtown.
K
Page 168 of 950
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 14"day of r `' •' 2025, 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
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. Is amended by adding the following Section 3.6:
3.6 Downtown Rehabilitation Grant. City agrees to provide a matching (1:1)
grant not to exceed Thirty -Five Thousand Dollars ($35,000) to reimburse Developer
for documented costs related to the following eligible activities:
2
Page 170 of 950
(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) Fagade documented costs that improve the overall appearance of the
Development Property, provided the Project meets the criteria of the Fagade 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 3.7 and Section 3.8 of the Agreement are hereby deleted.
Section 5. 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
Page 171 of 950
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 6. 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 7. Except as modified herein, the Agreement shall remain in full force and
effect.
CITY OF DUBUQUE, IOWA WILSON HOUSE APTS, LLC
By: By: �
4
a or Andrew McCready, Vice President
Attest:
Adrienne N. Breitfelder, City Clerk
C!
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. 131-25-A
RESOLUTION NUNC PRO TUNC CORRECTING AND AMENDING A SCRIVENER'S ERROR
IN 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 1243 Locust Street
in the City of Dubuque, Iowa (the Project); and
Whereas, by Resolution No. 131-25, City and Developer agreed to amend the Development
Agreement as set forth in the Original First Amendment to Development Agreement; and
Whereas, the Original First Amendment to Development Agreement contained a scrivener's
error in the numbering of Section 3; and
Whereas, correcting the scrivener's error does not change the intent of the City Council to
provide incentives under the Original First Amendment to Development Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA THAT:
Section 1. The findings and conclusions set forth in the Original First Amendment to
Development Agreement are hereby ratified and confirmed in all respects as the findings of
this City Council for the Corrected First Amendment to Development Agreement by and
between the City of Dubuque, Iowa and Wilson House Apts, LLC, copy of which is attached
hereto, with the exception of the amended Section 3 as set forth below.
Section 2. Section 3 of the Corrected First Amendment to Development Agreement
approved and adopted by Resolution No. 131-25 on April 21 St, 2025, is hereby corrected, nunc
pro tunc, to provide as set forth in Section 3, attached hereto.
Section 3. The attached Corrected First Amendment to Development Agreement shall be
substituted in lieu of the Original First Amendment to Development Agreement.
Section 4. The Mayor is hereby authorized and directed to execute the Corrected 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 Corrected First Amendment to Development Agreement as herein
approved.
Passed, approved, and adopted this 19th day of May, 2025.
Brad anagh, Mayor
Attest:
Adrienne N. Breitfelder,`City Clerk