Approving a First Amendment to Development Agreement with Gronen Development, Inc.City of Dubuque
City Council
PUBLIC HEARING # 1.
Copyrighted
March 23, 2026
ITEM TITLE: Approving a First Amendment to Development Agreement
between the City of Dubuque, Iowa and Gronen
Development, Inc.
SUMMARY: Proof of publication on notice of public hearing to consider
City Council adopt the attached resolution approving the First
Amendment to 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, and City Manager recommending approval.
RESOLUTION Approving A First Amendment To
Development Agreement By And Between The City Of
Dubuque And Gronen Development, Inc.
SUGGUESTED Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
1. MVM Memo Approving a First Amendment to Development Agreement between
the City of Dubuque, Iowa and Gronen Development, Inc
2. Staff Memo
3. 1 st Amendment
4. Resolution of Approval
Page 4 of 36
Dubuque
THE C
D!Uj-!B
AII-America Ciq
11111.1
II
Masterpiece on the Mississippi
YP PP
zoo�•*o 13
2017202019
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Approving a First Amendment to Development Agreement between the
City of Dubuque, Iowa and Gronen Development, Inc.
DATE: March 18, 2026
Economic Development Director Jill Connors is recommending City Council adopt the
attached resolution approving the First Amendment to 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 51" and Main Streets.
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
"Additional Property") 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 "Additional Property").
• 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.
All other terms and conditions of the original Development Agreement remain
unchanged.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
/-� _� LT
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jill Connors, Economic Development Director
Page 5 of 36
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: Approving a First Amendment to Development Agreement between the City
of Dubuque, Iowa and Gronen Development, Inc.
DATE: March 17, 2026
INTRODUCTION
This memorandum presents for City Council consideration a resolution approving a First
Amendment to Development Agreement by and between the City of Dubuque, Iowa and
Gronen Development, Inc.
:J_TeJ:(r]:lomk,Ic'
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
"Additional Property") 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 "Additional Property").
• 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 6 of 36
All other terms and conditions of the original Development Agreement remain unchanged.
RECOMMENDATION
I recommend the City Council adopt the attached resolution approving the attached First
Amendment to Development Agreement for the construction of a mixed -use building at
the corner of 5t" and Main Streets.
Page 7 of 36
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 Tia('c h , 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 6th 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:
03112026bal
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, 5t" Street,
6t" Street, and Main Street Rights of Way) and above ground building
(5t" Street and Main Street Rights of Way), structural eyebrows/facia.
Page 9 of 36
(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 6th 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 6th 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 10 of 36
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 11 of 36
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
B
Y
Brad M. C,��gh, Mayor
ATTEST:
By:�� w�
Adrienne Breitfelder, City Clerk
03112026bal
GRO EN DEVELOPMENT, INC.
By:
Its Vic resident
EXHIBIT A
PROPERTY
03112026ba1
STREET RIGHT OF
WAY TO BE
VACATED BY CITY
AND ACQUIRED BY
DEVELOPER(THE
ADDITIONAL
PROPERTY)
ORIGINAL
CENTERLINE OF
MAIN ST.
po-
Page 13 of 36
Prepared by: Jill Connors, Economic Development, 50 W. 131h Street, Dubuque IA 52001, 563 589-4393
Return to: Jill Connors, Economic Development, 50 W. 13'h Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 96-26
APPROVING A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BY AND
BETWEEN THE CITY OF DUBUQUE AND GRONEN DEVELOPMENT, INC.
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, the City Council, by Resolution No. 86-26, dated March 16, 2026,
declared its intent to enter into a First Amendment to Development Agreement by and
between the City of Dubuque, Iowa, and Gronen Development, Inc.; and
WHEREAS, pursuant to published notice, a public hearing was held on the
proposed First Amendment to Development Agreement on March 23, 2025 at 6:00 p.m.;
and
WHEREAS it is the determination of the City Council that approval of the Development
Agreement for redevelopment of the Property by Gronen Development, Inc., according to
the terms and conditions set out in the Development Agreement, is in the public interest of
the City of Dubuque..
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 First Amendment to Development
Agreement.
Section 2. That the Mayor is hereby authorized and directed to execute the
Development Agreement on behalf of the City of Dubuque and the City Clerk is authorized
and directed to attest to his signature.
Section 3. That the City Manager is authorized to take such actions as are
necessary to comply with the terms of the Development Agreement as herein approved.
Passed, approved and adopted this 23rd day of March, 2026.
Bra_d4 e'avanagh, Mayor
Attest:
Adrienne N. Breitfelder, City Clerk