Setting Public Hearing for a Proposed First Amendment to Development Agreement with Gronen Development, Inc.City of Dubuque
City Council
Copyrighted
March 16, 2026
ITEMS SET FOR PUBLIC HEARING # 1.
ITEM TITLE: Setting Public Hearing for a Proposed First Amendment to
Development Agreement between the City of Dubuque, Iowa
and Gronen Development, Inc.
SUMMARY: City Manager recommending City Council adopt the attached
resolution setting a public hearing for March 23, 2026, at 6:00
PM to consider a First Amendment to the Development
Agreement by and between the City of Dubuque, Iowa and
Gronen Development, Inc. for the construction of a mixed -use
building at the corner of 5th and Main Streets.
RESOLUTION Intent To Dispose Of An Interest In City Of
Dubuque Real Estate By Sale To Gronen Development, Inc.
Pursuant To A First Amendment To Development Agreement
By And Between The City Of Dubuque And Gronen
Development, Inc. And Fixing The Date For A Public Hearing
Of The City Council Of The City Of Dubuque, Iowa On The
First Amendment To Development Agreement And Providing
For The Publication Of Notice Thereof
SUGGUESTED Receive and File; Adopt Resolution(s), Set Public Hearing for
DISPOSITION: March 23, 2026
ATTACHMENTS:
MVM Memo Setting Public Hearing for a Proposed First Amendment to
Development Agreement between the City of Dubuque, Iowa and Gronen
Development, Inc
2. Staff Memo
3. 1 st Amendment
4. Resolution Setting Hearing
5. Notice of Hearing
Page 483 of 811
Dubuque
THE CITY OF
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Setting Public Hearing for a Proposed First Amendment to Development
Agreement between the City of Dubuque, Iowa and Gronen Development,
Inc.
DATE: March 11, 2026
Economic Development Director Jill Connors is recommending City Council adopt the
attached resolution setting a public hearing for March 23, 2026, at 6.00 PM to consider
a First Amendment to the Development Agreement by and between the City of
Dubuque, Iowa and Gronen Development, Inc. for the construction of a mixed -use
building at the corner of 5t" and Main Streets.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Page 484 of 811
Dubuque Economic Development
Department
THE CITY OF 1300 (wain street
All-AM111094 Dubuque, Iowa 52001-4763
UB E vxxwi 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 Connors, Economic Development Director
SUBJECT: Setting Public Hearing for a Proposed First Amendment to Development
Agreement between the City of Dubuque, Iowa and Gronen Development,
Inc.
DATE: March 3, 2026
INTRODUCTION
This memorandum presents for City Council consideration a resolution that sets a public
hearing on the proposed First Amendment to Development Agreement by and between
the City of Dubuque, Iowa and Gronen Development, Inc.
BACKGROUND
The City executed a Development Agreement with Gronen Development, Inc. on March
17, 2025 for the development of a mixed -use building at the corner of 5th and Main Streets.
The project will provide 8,000 square feet of first -floor commercial space and at least eighty
(80) rental residential units at an investment of approximately $24,000,000.
DISCUSSION
Since the execution of the Development Agreement, the Gronen team has worked with City
staff and identified an additional small area of land (which we are referring to as the "Notch")
that is required to "square off' the northeast corner of the property. In order for the City to
convey that property, a First Amendment to the Development Agreement is required. The
Amendment has been prepared in order to allow for the following:
• Adding new land to the project (the "Notch").
• Establishing easement areas and revocable and irrevocable license areas.
• Imposing new infrastructure, utility, and permitting obligations.
• Establishing required bonding, inspections, and platting procedures.
• Creating mechanisms for early site access.
Page 485 of 811
All other terms and conditions of the original Development Agreement remain unchanged.
RECOMMENDATION
I recommend the City Council adopt the attached resolution setting a public hearing for
March 23, 2026 at 6.00 PM to consider the attached First Amendment to Development
Agreement for the construction of a mixed -use building at the corner of 5t" and Main
Streets.
K
Page 486 of 811
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
GRONEN DEVELOPMENT, INC.
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 Gronen Development, Inc. (Developer).
WHEREAS, City and Developer entered into a Development Agreement dated
for reference purposes the 17th day of March, 2025 with respect to real estate legally
described as:
BLK 17 DUBUQUE DOWNTOWN PLAZA, City of Dubuque, Iowa, as
shown on the attached Exhibit A;
(the Initial Property); and
WHEREAS, Developer desires to acquire additional real estate adjoining the
Initial Property described as follows:
That portion of the 6t" Street right of way as shown on the attached Exhibit A
(the Additional Property); and
WHEREAS, the parties desire to amend the Development Agreement to include
the Additional Property in the definition of the Property within the Development
Agreement and to otherwise modify the Development Agreement to accommodate the
Additional Property; and
WHEREAS, the parties desire to amend the Development Agreement to include
additional terms and conditions related to the development contemplated by that
Agreement; and
WHEREAS, the parties have reached agreement on the terms of a First
Amendment and desire to set forth their agreement regarding the amendment in writing.
THEREFORE, IN CONSIDERATION OF THE MUTUAL TERMS AND
CONDITIONS HEREIN AND IN THE DEVELOPMENT AGREEMENT, THE PARTIES
AGREE AS FOLLOWS:
SECTION 1. The first Whereas clause is amended to read as follows:
03112026ba1
Page 487 of 811
WHEREAS, City is the owner of the following real estate located in the City of Dubuque,
County of Dubuque, State of Iowa, consisting of approximately .69 acres:
BILK 17 DUBUQUE DOWNTOWN PLAZA, to include the Additional
Property after completion of the platting process
shown on Exhibit A attached hereto (the "Property");
There shall be no additional Purchase Price under Section 1.1 of the Development
Agreement for the Additional Property. However, the Developer shall be required to
relocate at Developer's sole cost and expense a city utility box located on the Additional
Property.
SECTION 2. Section 10.1 is amended to read as follows:
10.1 Minimum Improvements. Developer will make a capital investment of
approximately Twenty -Four Million Dollars ($24,000,000.00) to improve the Property
(the "Minimum Improvements"). The Minimum Improvements include creating eight
thousand (8,000) square feet of first -floor commercial space and at least eighty (80)
rental residential units. The Minimum Improvements shall also include the following:
(1) Relocating the City -owned lighting controller cabinet from the location on
the Additional Property to a location to be mutually agreed upon by City and
Developer prior to the relocation. The relocation shall include the lighting
controller cabinet and all wiring, conduit and appurtenances associated with that
cabinet in such a manner as to ensure its continued operation and functionality
following relocation. If the relocation is to private property of the Developer,
Developer and City shall agree upon the terms of an Easement Agreement
related to location of the utility box and ingress and egress for City related to
maintenance, repair and replacement of the utility box, all prior to the closing of
the Development Agreement.
(2) City shall coordinate with Mediacom to ensure relocation (removal from
the Property) of the Mediacom fiberoptic cable or other lines prior to the date of
Closing.
(3) Portions of Developer's project will encroach upon property owned by the
City, including City right of way property. City shall grant an irrevocable license
for placement of such items on City property.
03112026ba1
(a) Those items to be granted an irrevocable license include, but may
not be limited to: below ground / building foundation (alley, 5th Street,
6th Street, and Main Street Rights of Way) and above ground building
(5th Street and Main Street Rights of Way), structural eyebrows/facia.
Page 488 of 811
(b) Revocable license shall be granted for pedestrian area lighting
located on the north fagade of the building (to the extent it encroaches
onto City property), transformer and meter bank located in the 61h Street
right of way and a meter bank located in the alley immediately west of the
Initial Property, and protective bollards on the west side of the Building. If
City requires relocation of the transformer or meter banks to
accommodate a public improvement project, City shall assume the cost of
such relocation.
(c) Developer to provide boundary survey grade encroachment
exhibits for the Development Agreement to be approved by Council and
recorded.
(4) There is located upon the Property an irrigation/water utility, including
water pump and associated electric conduit, in the southwest corner of the
Property and an existing storm sewer line running through the Property. City
agrees to abandon the irrigation/water utility, including water pump and
associated electric conduit, and an existing storm sewer line, and Developer
agrees to be responsible for removing them at Developer's cost.
(5) Public Improvements. Developer shall construct, at Developer's cost, a
new sanitary sewer manhole, storm sewer, storm intakes, pavement, curbing,
planter, and landscaping in the 61h Street pedestrian plaza, sidewalk and curbing
replacement on the east (Main Street) and south (5th Street) sides of the
Property, and repaving of the disturbed areas of the alley adjacent to and west of
the Property, consistent with the approved civil project plans, and shall dedicate
the Public Improvements to City for ownership and maintenance.
(6) Developer Improvements. Developer shall provide appropriate private
lighting improvements on the north fagade of the Building to adequately and
safely light the 6th street pedestrian plaza area adjacent to the property. City, at
its sole discretion, shall review and approve the private lighting design.
Developer shall, in perpetuity, own and maintain the private lighting
improvements.
SECTION 3. The following Section is hereby added to the Agreement:
SECTION 19. PLANS AND PERMITS.
19.1 Developer must obtain and submit to City copies of all applicable permits
necessary for the Public Improvements prior to commencing work.
03112026ba1
Page 489 of 811
19.2. Developer must obtain all applicable permits and licenses required for working in
the City right-of-way, if applicable.
19.3. Developer must submit to City final design plans that meet current City
standards, for the Public Improvements prior to commencing work. City will review and
approve such plans before work on the Public Improvements commences. If such plans
are not approved, City will provide feedback regarding the modifications necessary for
approval.
SECTION 4. The following Section is hereby added to the Agreement:
SECTION 20. BONDS.
20.1. Developer must obtain a construction bond or other suitable security for one
hundred ten percent (110%) of the estimated total construction cost of the Public
Improvements.
20.2. Developer must obtain a maintenance bond or other acceptable security for
twenty-five percent (25%) of the estimated total construction cost of the Public
Improvements. Developer must maintain this maintenance bond for two (2) years after
date that the City Council accepts the completed Public Improvements.
SECTION 5. The following Section is hereby added to the Agreement:
SECTION 21. INSPECTIONS AND ACCEPTANCE.
21.1. City will inspect the public improvements work throughout its implementation and
at its completion to ensure compliance with the approved plans and specifications.
Developer must pay to the City an inspection fee in the amount of three percent (3%) of
the estimated total construction cost for the public improvements.
21.2. City will conduct a final inspection upon the completion of the Public
Improvements. If the inspection establishes that the Public Improvements have been
completed in accordance with the approved plans and City requirements and
specifications, the Public Improvements will be accepted by City Council, thus starting
the two (2) year warranty period.
21.3 Repair of damage to alley. Developer agrees to repair any damage to the
adjacent City alley caused by Developer's work at the Property.
SECTION 5. The following Section is hereby added to the Agreement:
SECTION 22. AGREEMENT REGARDING PLATTING PROCESS.
22.1 City and Developer agree that there is included within the Property areas
03112026ba1
Page 490 of 811
upon which City currently has an easement for public right of way (the "Right of Way
Property"), as shown on Exhibit A attached hereto. City shall, at its cost, obtain a survey
that separates the Right of Way Property from the balance of the Property and record
such survey. The Right of Way Property shall be retained by City at closing. Thereafter
or concurrently therewith, Developer shall, at its cost, obtain a survey that vacates the
right of way area of the Additional Property in order to create a lot of record which can
be deeded to Developer by City. Thereafter or concurrently therewith, Developer shall,
at its cost, obtain a survey that incorporates the Additional Property with the Initial
Property into one lot, which lot shall be the Property conveyed to Developer by City
pursuant to the terms of this Agreement.
SECTION 6. The following Section is hereby added to the Agreement:
SECTION 23. SITE ACCESS AGREEMENT.
23.1 The parties agree that if Gronen determines to commence construction
work prior to the Closing Date the parties shall enter into a Site Access Agreement ,
upon terms mutually agreeable to the parties, which Agreement shall allow Developer
access to the Property prior to Closing to begin site preparation and construction
activities.
SECTION 7. All other terms and conditions of the Development Agreement shall remain
in full force and effect.
CITY OF DUBUQUE, IOWA GRONEN DEVELOPMENT, INC.
IN
in
Brad M. Cavanagh, Mayor Its
/_11aIan I
Adrienne Breitfelder, City Clerk
03112026ba1
Page 491 of 811
EXHIBIT A
;ENTERLIIJE OF
,TH ST.
G
EXHIBIT A
PROPERTY
BLOCK 17 /4 4
DUBUQUE
DOWNTOWN
PLAZA - TO BE
ACQUIRED BY
2
DEVELOPER (THE
INITIAL PROPERTY)
ORIGINAL
CENTERLIf'JE OF
ALLEY
1
RIGHT OF WA'r
AREA TO BE
PLATTED AND
RETAINED BY CITY
03112026ba1
1
AO
4000
CENTERLINE OF
5TH ST.
E
Page 492 of 811
Prepared by: Jill Connors, Economic Development, 50 W. 13`' Street, Dubuque IA 52001, 563 589-4393
Return to: Jill Connors, Economic Development, 50 W. 13'�l Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 86-26
INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE BY
SALE TO GRONEN DEVELOPMENT, INC. PURSUANT TO A FIRST AMENDMENT TO
DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE AND
GRONEN DEVELOPMENT, INC. AND FIXING THE DATE FOR A PUBLIC HEARING
OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA ON THE FIRST
AMDENDMENT TO DEVELOPMENT AGREEMENT AND PROVIDING FOR THE
PUBLICATION OF NOTICE THEREOF
Whereas, the City of Dubuque, Iowa (City) is the owner of the following described
real property:
BLK 17 DUBUQUE DOWNTOWN PLAZA, City of Dubuque, Iowa
(the Property)
and
WHEREAS, City has entered into a Development Agreement with Gronen
Development, Inc. for the development of the Property; and
WHEREAS, City is also the owner of the following described real property:
That portion of the 6th Street right of way as shown on the attached Exhibit A
(the Additional Property)
and
WHEREAS, City, and Gronen Development, Inc. have entered into a First
Amendment to Development Agreement, subject to the approval of the City Council,
pursuant to which City will convey the Additional Property to Gronen Development, Inc.
which Additional Property will become part of the Property once platted; and
WHEREAS, the City Council has tentatively determined that it would be in the best
interests of City to approve the First Amendment to Development Agreement, including the
conveyance of the Additional Property to Gronen Development, Inc.; and
WHEREAS, before said First Amendment may be approved, the Code of Iowa
requires that the City Clerk publish a notice of the proposal and of the time and place of
the meeting at which the City Council proposes to take action thereon and at which
meeting the City Council shall receive oral and/or written objections from any resident or
property owner of said City to such proposed action.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City of Dubuque intends to dispose of its interest in the
foregoing -described Additional Property by Special Warranty Deed to Gronen
Development, Inc. pursuant to the proposed Development Agreement.
Section 2. The City Clerk is hereby authorized and directed to cause this
Resolution and a notice to be published as prescribed by Iowa Code Section 364.7 of a
public hearing on the City's intent to dispose of the foregoing -described Additional Property,
to be held on the 23rd day of March, 2026 at 6:00 p.m. in the form attached hereto.
Section 3. The City Council will also meet at said time and place for the purpose
of taking action on the matter of approving the First Amendment to Development Agreement.
Section 4. The City Clerk is hereby directed to cause at least one publication to
be made of a notice of said meeting, in a newspaper, printed wholly in the English
language, published at least once weekly, and having general circulation in said City, said
publication to be not less than four days nor more than twenty days before the date of
said meeting on the disposal of the City's interest in the Additional Property.
Section 5. That the notice of the proposed action shall be in substantially the
form attached hereto.
Passed, approved and adopted this 16th day of March, 2026.
David T Resnick, Mayor Pro Tern
Attest:
Adrienne N. Breiffelder, Ofty Clerk
EXHIBIT A
ADDITIONAL PROPERTY
STREET RIGHT OF
WAY TO BE
VACATED BY CITY
AND ACQUIRED BY
DEVELOPER(THE
ADDITIONAL
PROPERTY)
ORIGINAL
CENTERI-it-JE OF
MAIN ST.
APO
Page 496 of 811
NOTICE OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA, ON THE APPROVAL OF A FIRST AMENDMENT TO
DEVELOPMENT AGREEMENT WITH GRONEN DEVELOPMENT, INC. PROVIDING
FOR THE SALE OF CITY -OWNED REAL ESTATE TO GRONEN DEVELOPMENT,
INC.
PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public
hearing on the 23rd day of March, 2026, at 6:00 p.m., in the Historic Federal Building, 350
W. 6t" Street, 2nd floor, Dubuque, Iowa, at which meeting the City Council proposes to
take action to approve a First Amendment to Development Agreement between the City
of Dubuque, Iowa and Gronen Development, Inc., a copy of which is now on file at the
Office of the City Clerk, City Hall, 50 W 13th Street, Dubuque, Iowa, providing for the sale
of City -owned real estate.
At the meeting, the City Council will receive oral and written comments from any resident
or property owner of said City to the above action. The official City Council agenda will be
posted the Friday before the meeting and will contain public input options. The agenda
can be accessed at https://dubugueia.portal.civicclerk.com/ or by contacting the City
Clerk's Office at 563-589-4100, ctyclerk@cityofdubuque.org.
Written comments on the public hearing may be submitted to the City Clerk's Office by
email at ctyclerk@cityofdubuque.org or by mail to City Hall, 50 W. 131" St., Dubuque, IA
52001, before the scheduled hearing. The City Council will review all written comments
at the time of the hearing.
Documents related to the public hearing are on file in the City Clerk's Office and may be
viewed Monday through Friday between 8:00 a.m. and 5:00 p.m.
Individuals requiring special assistance should contact the City Clerk's Office as soon as
feasible. Deaf or hard -of -hearing individuals can use Relay Iowa by dialing 711 or (800)
735-2942.
Published by order of the City Council given on the 16t" day of March 2026.
Adrienne N. Breitfelder, CMC, City Clerk
Page 497 of 811