First Amendments to Development Agreements Regarding Builder's Risk InsuranceCity of Dubuque
City Council
CONSENT ITEMS # 5.
Copyrighted
March 2, 2026
ITEM TITLE: First Amendments to Development Agreements Regarding
Builder's Risk Insurance
SUMMARY: City Manager recommending City Council approval of
amendments to two development agreements, Plastic
Center, Inc at 408 W. 5th Street and Ned Oberbroeckling at
372 Main Street, to delete the builder's risk requirements in
the two development agreements based on the policy
recommendation to limit this requirement to development
agreements involving the sale of City property to the
developer.
RESOLUTION Approving The First Amendment To
Development Agreement By And Between The City Of
Dubuque, Iowa And Plastic Center, Inc.
RESOLUTION Approving The First Amendment To
Development Agreement By And Between The City Of
Dubuque, Iowa And Ned Oberbroeckling
SUGGUESTED Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
1. MVM Memo Builder's Risk Insurance
2. Staff Memo
3. Development Agreement First Amendment
4. Resolution - Plastic Center
5. Ned Oberbroeckling First Amendment to City of Dubuque Development Agreement
2-2026
6. Resolution - Oberbroeckling
Page 149 of 939
THE CITY OF
DUBE
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Builder's Risk Insurance
DATE: February 24, 2026
Dubuque
AI WIN av
2007-2012.2013
2017*2019
Based on concerns expressed by some developers that builder's risk is too expensive
or difficult to obtain for some projects, Senior Counsel Barry Lindahl, along with
Economic Development staff, is recommending that builder's risk should only be
required for development agreements where City property is sold to the developer, and
not required for development agreements where the developer owns the property being
developed.
Attached are amendments to two development agreements, Plastic Center, Inc at 408
W. 5t" Street and Ned Oberbroeckling at 372 Main Street, where the developers own
the development property. The amendments would delete the builder's risk
requirements in the two development agreements.
Senior Counsel Barry Lindahl is recommending City Council approval of two
amendments based on the policy recommendation limiting the builder's risk requirement
to development agreements where there is a sale of City property to the developer.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Barry Lindahl, Senior Counsel
Jill Connors, Economic Development Director
Ian Hatch, Assistant Economic Development Director
Page 150 of 939
THE CITY OF
DUB E
Masterpiece on the Mississippi
BARRY A. LINDAHL, ESQ.
SENIOR COUNSEL
M E M O
To: Michael C. Van Milligen
City Manager
DATE: March 2, 2026
RE: Builder's Risk Insurance
Dubuque
AII•AnerIn Cily
2007-2012.2013
2017*2019
City of Dubuque development agreements require builder's risk and property insurance:
builder's risk during construction and property insurance when construction is completed.
Builder's risk insurance, also known as course of construction insurance, is a specialized
type of property insurance that helps protect buildings under construction. A builder's risk
insurance policy helps cover buildings and structures under construction. It also helps
protect:
Materials
• Supplies
• Equipment on site, in transit or at other locations
Those items are generally not covered by property insurance. Nor does property
insurance cover the increased value of the building during construction.
In the worst case, if a $1 M building is being improved with $1 M in improvements and is
destroyed during construction after the developer has put $500,000 in materials and
supplies into the building, without builder's risk, property damage coverage will only cover
the $1 M original value of the building and not any of the materials and supplies. The
developer will have suffered a $500,000 loss.
With the City's required builder's risk, the developer will be required to have coverage for
the value of the building "as completed": i.e. $2M. The developer can then complete the
project the City bargained for. And the City avoids the possibility of a damaged vacant
building. Without builder's risk, the developer may choose not to complete the
construction or demolition of the damaged building.
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org
Page 151 of 939
The same result occurs if a new building is being constructed on vacant land and is
destroyed during construction.
Based on concerns expressed by some developers that builder's risk is too expensive or
difficult to obtain for some projects, we are recommending, along with Economic
Development staff, that builder's risk should only be required for development
agreements where City property is sold to the developer, and not required for
development agreements where the developer owns the property being developed.
The basis for that distinction is the City's risk in the event of a default. Where City property
is sold to the developer and there is significant damage to a building on the property
during construction, if the developer does not complete the project and is therefore in
default, the development property would revert to the City and the City would want
adequate insurance in place, builder's risk and property insurance, to repair or replace
the building.
For development agreements on property already owned by the developer, it would be
the developer's option to repair or restore the building. No incentives would be paid to the
developer unless the project was completed as required by the development agreement.
Attached are amendments to two development agreements where the developers own
the development property: Plastic Center, Inc. (408 West 5t" Street) and Ned
Oberbroeckling (372 Main Street). The amendments would delete the builder's risk
requirements in the two development agreements.
We recommend submitting the two amendments to the City Council for consideration and
approval based on the policy recommendation limiting the builder's risk requirement to
development agreements where there is a sale of City property to the developer.
cc: Crenna Brumwell, City Attorney
Jill Connors, Economic Development Director
Ian Hatch, Assistant Economic Development Director
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL tsteckle@cityofdubuque.org
Page 152 of 939
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
PLASTIC CENTER, INC.
This First Amendment o Development Agreement, dated for reference purposes
the A"" day of , 2026 is made and entered into by and between
the City of Dubuque, Iowa (City), and Plastic Center, Inc. (Developer).
WHEREAS, City and Developer entered into a Development Agreement dated
June 16, 2025, for the development of the real estate locally known as 408 W 511' Street,
Dubuque, Iowa and legally described as follows (the Property):
The West 107.5 feet of the West 170 feet of Lot 614 in the City of Dubuque,
Iowa, according to the Plat of the Survey thereof in Book of Plats #10 page 88,
records of Dubuque County, Iowa; and
Lot 46 in the City of Dubuque, Iowa, according to the United States
Commissioners' Map of the Town of Dubuque; and
The East 110 feet of Lot 614 in the City of Dubuque, Iowa, according to the Plat
of the Survey thereof in Book of Plats #10 page 88, records of Dubuque County,
Iowa
and
WHEREAS, City and Developer now desire to amend the Development
Agreement as set forth herein, to -wit, deleting the requirement of builders risk
insurance; and
WHEREAS, City and Developer also desire to delete Section 1.4(6) and Exhibit
H; and
WHEREAS, the City Council finds that this First Amendment should be
approved.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES
AS FOLLOWS:
Section 1. Section 5.6(1) of the Development Agreement is deleted.
Section 2. Section 1.4(6) and Exhibit H of the Development Agreement are
deleted.
Section 3. All other terms and conditions of the Development Agreement shall
remain in full force and effect.
CITY OF DUBUQUE, IOWA
Attest:
Adrienne N. Breitfelder, City Clerk
PLASTIC CENTER, INC.
By
L. Anthony Pfohl, Director
Prepared by Barry A Lindahl Esq. 300 Main St Ste 330 Dubuque IA 52001-6944 (563) 583-4113
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 1311 St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 53 - 26
APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF DUBUQUE, IOWA AND PLASTIC CENTER, INC.
WHEREAS, City and Developer entered into a Development Agreement dated
June 16, 2025, for the development of the real estate locally known as 408 W 5th Street,
Dubuque, Iowa and legally described as follows (the Property):
The West 107.5 feet of the West 170 feet of Lot 614 in the City of Dubuque,
Iowa, according to the Plat of the Survey thereof in Book of Plats #10 page 88,
records of Dubuque County, Iowa; and
Lot 46 in the City of Dubuque, Iowa, according to the United States
Commissioners' Map of the Town of Dubuque; and
The East 110 feet of Lot 614 in the City of Dubuque, Iowa, according to the Plat
of the Survey thereof in Book of Plats #10 page 88, records of Dubuque County,
Iowa
and
WHEREAS, City and Developer now desire to amend the Development
Agreement as set forth in the attached First Amendment, to -wit, deleting the requirement
of builders risk insurance; and
WHEREAS, City and Developer also desire to delete Section 1.4(6) and Exhibit H
related to the builders risk requirement; and
WHEREAS, the City Council finds that this First Amendment should be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA AS FOLLOWS:
Section 1. The First Amendment to Development Agreement attached hereto is
hereby approved.
Section 2. The Mayor is hereby authorized and directed to sign the First
Amendment on behalf of the City of Dubuque.
Passed, approved, and adopted this 2nd day of March, 2026.
gh, Mayor
Attest:
Adrienne N. Breitfelder,"City Clerk
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
NED OBERBROECKLING
This First Amendment to Development Agreement, dated for reference purposes
the day of 2026 is made and entered into by and between
the City of Dubuque, Iowa (City), and Ned Oberbroeckling (Developer).
WHEREAS, City and Developer entered into a Development Agreement dated
October 20, 2025, for the development of the real estate legally described as follows:
The Northerly 21 & 4/12ths feet (less the Northerly 8 inches thereof) of Lot 11,
(assessed as the North 1/3 of Lot 11) in the City of Dubuque, Iowa, according
to the United States Commissioners' Map of the Survey of the Town of
Dubuque, Iowa.
locally known as 372 Main Street (the Property); and
WHEREAS, City and Developer now desire to amend the Development
Agreement as set forth herein, to -wit, deleting the requirement of builders risk insurance;
and
WHEREAS, City and Developer also desire to delete Section 1.4(6) and Exhibit H
related to the builders risk requrement; and
WHEREAS, the City Council finds that this First Amendment should be approved.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
Section 1. Section 5.6(1) of the Development Agreement is deleted.
Section 2. Section 1.4(6) and Exhibit H of the Development Agreement are
deleted.
Section 3. All other terms and conditions of the Development Agreement shall
remain in full force and effect.
CITY OF DUBUQUE, IOWA
Brad'��anagh, Mayor
Attest:
Adrienne N. Breitfelder, City Clerk
NED OBERBROECKLING
By
Ned Oberbroeckling
Prepared by Barry A. Lindahl, Esq. 300 Main St., Ste. 330, Dubuque IA 52001-6944 (563) 583-4113
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13"' St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO.54-26
APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF DUBUQUE, IOWA AND NED OBERBROECKLING
Whereas, City and Developer entered into a Development Agreement dated
October 20, 25, for the development of the real estate legally described as follows:
The Northerly 21 & 4/12ths feet (less the Northerly 8 inches thereof) of Lot 11,
(assessed as the North 1/3 of Lot 11) in the City of Dubuque, Iowa, according
to the United States Commissioners' Map of the Survey of the Town of
Dubuque, Iowa.
locally known as 372 Main Street (the Property); and
Whereas, City and Developer now desire to amend the Development Agreement
as set forth in the attached First Amendment, to -wit, deleting the requirement of builders
risk insurance; and
Whereas, the City Council finds that this First Amendment should be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE IOWA AS FOLLOWS:
Section 1. The First Amendment to Development Agreement attached hereto is
hereby approved.
Section 2. The Mayor is hereby authorized and directed to sign the First
Amendment on behalf of the City of Dubuque.
Passed, approved and adopted this 2nd day of March, 2026.
ra . Cavanagh, Mayor
Attest:
Adrienne N. Breitfelder, City Clerk