Loading...
Consent to Assignment of Development Agreement By and Between the City of Dubuque, Iowa and Carmac Management, Inc. to Linseed Lofts, LLC Copyrighted April 6, 2026 City of Dubuque ITEMS SET FOR PUBLIC HEARING # 4. City Council ITEM TITLE: Consent to Assignment of Development Agreement By and Between the City of Dubuque, lowa and Carmac Management, Inc. to Linseed Lofts, LLC SUMMARY: City Manager recommending City Council adopt the resolution setting a public hearing for April 20, 2026, for the Consent to Assignment of a Development Agreement by and between the City of Dubuque, lowa and Carmac Management, Inc. to Linseed Lofts, LLC. RESOLUTION Fixing The Date For A Public Hearing Of The City Council Of The City Of Dubuque, lowa On The Assignment Of A Development Agreement By And Between The City Of Dubuque, lowa And Carmac Management, Inc. To Linseed Lofts, LLC And Providing For The Publication Of Notice Thereof SUGGUESTED Receive and File; Adopt Resolution(s), Set Public Hearing for DISPOSITION: April 20, 2026 ATTACHMENTS: 1. MVM Memo Assignment of Development Agreement By and Between the City of Dubuque, lowa and Carmac Management, Inc. to Linseed Lofts, LLC 2. Staff Memo 3. Carmac Management Memorandum to Council 4. Assignment of Development Agreement signed by Buyer and Seller 5. Carmac Assignment Resolution 6. Notice of Public Hearing Carmac Page 1144 of 2358 Dubuque THE CITY OF � uhA�eMa cin DuB E ; . � , I � � I. Maste iece on the Mississi t 2oo�•zoiz•zois �P Pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Consent to Assignment of Development Agreement By and Between the City of Dubuque, lowa and Carmac Management, Inc. to Linseed Lofts, LLC DATE: March 31, 2026 Senior Counsel Barry Lindahl is recommending City Council adopt the resolution setting a public hearing for April 20, 2026, for the Consent to Assignment of a Development Agreement by and between the City of Dubuque, lowa and Carmac Management, Inc. to Linseed Lofts, LLC. The property at 151 East 9th Street has transferred through several related entities over the years to support the project's use of tax credits. Carmac Management, Inc., the current Developer, has completed the project and the property is now fully operational, though tax-increment financing payments and other obligations under the Development Agreement remain. Carmac has reached an agreement to sell the property to Linseed Lofts, LLC and, as part of that sale, will transfer all of its rights and responsibilities under the Development Agreement to Linseed Lofts, LLC. I concur with the recommendation and respectfully request Mayor and City Council approval. � 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 Page 1145 of 2358 Dubuque THE CITY OF � ul-A�eriea ciq DuB E ;,,t : , I� � I. Masterpiece on the Mississippi �°'�Z°lz 2013•2017 BARRY A. LINDAHL, ESQ. SENIOR COUNSEL MEMO To: City Manager Michael C. Van Milligen DaTE: March 26, 2026 RE: Consent to Assignment of Development Agreement By and Between the City of Dubuque, lowa and Carmac Management, Inc. to Linseed Lofts, LLC Attached to this Memorandum is an Assignment of Development Agreement executed by Carmac Management, Inc. (Carmac), and Linseed Lofts, LLC. The City and Wilmac Property Company (Wilmac) entered into a Development Agreement dated March 7, 2013, for the property at 151 East 9t" Street, which Development Agreement was assigned by Wilmac to Betty Building, LLC (Betty) by an Assignment dated October 6, 2014 and further assigned by Betty to Carmac Management, Inc. by an Assignment dated November 2, 2021. All of these transfers were between related entities and were necessary to facilitate the use of tax credits for the project. Carmac is now the Developer. Carmac has completed the project contemplated by the Development Agreement and the property is fully operational. Tax increment financing payments and continuing obligations of the Developer remain under the Development Agreement. Carmac has entered into an agreement to sell the property subject to the Development Agreement to Linseed Lofts, LLC. As a part of that transaction Carmac has agreed to assign its rights and obligations under the Development Agreement to Linseed Lofts, LLC and that entity has agreed to accept all such rights and obligations. The attached Assignment accomplishes this assignment, subject to the City's agreement and consent. Carmac Management, Inc. has requested City Council approval and consent to the Assignment of the Development Agreement and authorizing the Mayor to execute the Assignment on behalf of the City of Dubuque. I request that City Council adopt the attached Resolution setting a public hearing for April 20, 2026, on the Assignment. OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 33�, HARBOR VIEW PLACE, 3OO MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563)583-4113/Fax (563)583-1040/EMai� balesq@cityofdubuque.org Page 1146 of 2358 CC: Crenna Brumwell, City Attorney Jill Connors, Economic Development Director OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 33�, HARBOR VIEW PLACE, 3OO MAIN STREET DUBUQUE, IA 52001-6944 TE�EPHONE (563)583-4113/F,vc (563)583-1040/EMai� tsteckle@cityofdubuque.org Page 1147 of 2358 Drake Law Firm, P.c. ATTORNEYS D. Flint Drake* 300 Main Street,Suite323 Samuel M.DeGree fdrake(a�drakelawpacom Dubuque,IA 52001 sdegree(a�drakelawpc.com Both admitted in Iowa Telephone:(563)582-2000 Facsimile:(563)583-5225 March 24, 2026 MEMORANDUM TO: Barry Lindahl, Senior Counsel RE: Assignment of Development Agreement by and between Carmac Management, Inc. and Linseed Lofts,LLC FROM: Drake Law Firm, PC Barry: Attached to this Memorandum is an Assignment of Development Agreement executed by Carmac Management, Inc, and Linseed Lofts, LLC. The City and Wilmac Property Company (Wilmac) entered into a Development Agreement dated March 7, 2013, for the property at 151 E. 9th St., Dubuque, lowa, which Development Agreement was assigned by Wilmac to Betty Building, LLC (Betty) by an Assignment dated October, 2014 and further assigned by Betty to Carmac Management, Inc. by an Assignment dated October, 2021. All of these transfers were between related entities and were necessary to facilitate the use of tax credits for the project. Carmac is now the Developer. Carmac has completed the project contemplated by the Development Agreement and the property is fully operational. Tax increment financing payments and continuing obligations of the Developer remain under the Development Agreement. Carmac has entered into an agreement to sell the property subject to the Development Agreement to Linseed Lofts, LLC. As a part of that transaction Carmac has agreed to assign its rights and obligations under the Development Agreement to Linseed Lofts, LLC and that entity has agreed to accept all such rights and obligations. Page 1148 of 2358 The attached Assignment accomplishes this assignment, subject to the City's agreement and consent. On behalf of Carmac Management, Inc., we request that the City Council approve and consent to the Assignment of the Development Agreement and authorize the mayor to execute the Assignment on behalf of the City of Dubuque. Please advise of any additional questions. Thank you. Page 1149 of 2358 ASSIGNMENT OF DEV�LOPMENT AGREEMENT' This Assignment of Developnlent Agreement�is entered into this��"day of March, 2026 by and between , Caimac Management�, Inc. ("Carmac"), Linseed Loft�s, LLC ("Buyer") and the C�ity of Dubuqne, Iowa("City"). � RECITALS A. Ciry and Wilmac Property Company("Wilmac") e�ntered into a Development Agreement dated March 7, 2013 which agreement was assigned by Wilmac to Betty Building, LLC ("Betty")by an Assignment dated Oct�ober, 2014 and further assigned by Betty to Carmac by Assignment dated in October, 2021 (the"Development Agreeinent"); B. PursuanY to the terms of the Development Agreement Witnlac was to prov�ide certain improvements to real estate owned by Wilmac, such property locally known as 151 East 9`'' St., Dubuque, Iowa and legally described as: City Lot 379 and the South 15 feet of City Lot 380 in Dubuque, Iowa(the "Property"). Subject to the requirements and restrictions of that� Development Agreement City agreed to take certain actions to a�id in the rehabilitation of the Property. C. In order to facilitate rehabilitation of the Property, and in particular to accommodate the �ise of h�istoric tax credits, the �Property was deeded to Bet�ty at the t�ime of the initial Assignment. The recapture period for the historic tax credit transaction passed, the ownership structure was simplified a�nd the underlying Property was deeded to Carnlac. Carnlac has now a�need to sell the underlying Property to Buyer and Carmac desires to assign all of its rights and obligations under the Developinent� Agreement� to B�ryer and Buyer desires to accept such i-ights and obligations; D. The parties desire to set f'arth their agreeinent regarding such assib ment in writing. Therefore, in consideration of the tnutual ternls and covenants herein, the parties agree as follows: AGREEMENT 1. Assi#;nment. Carmac does hereby assign, transfer and convey to Buyer each and every right and obligation of Carmac in and under the Development Agreement, including the right to receive tax increment tinancing payinents, effective Apri1 1, 2026. 2. Acceptance. Buyer does hereby accept all rights and obligations of Cannac under the Development A�,�reement and a��rees to be bound by such agreetnent and to be responsible for every obli�ation of Developer therellnder. 3. Consent. City does hereby consent to the assignment as set f'orth herein and releases Page 1150 of 2358 Betry fiom any obligations that accrue ur7der the terms of the Development Agreement after the date hereof. 4. Miscellaneous. This agreement is binding upon the parties hereto and their successors and permitted assi�ns and shall be governed by and construed under the laws of the state of Iowa. City of Dubuque, Iowa By: Brad Cavanagh, Mayor Carmac Manag,�ment, Inc. _ � gy. �. ' � ;� --_ - _ Patrick 1VI�cNamara Linseed Lofts, LLC, Buyer By: , ' � 1�'"' l� .� !— 3e-S�cr� P� l�and.ec5 Page 1151 of 2358 Prepared by Barry A. Lindahl, Esq., 300 Main Street Suite 330, Dubuque, IA 52001, (563) 589-4113 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 110-26 FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA ON THE CONSENT TO ASSIGNMENT OF A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE, IOWA AND CARMAC MANAGEMENT, INC. TO LINSEED LOFTS, LLC AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF WHEREAS, the City of Dubuque and Wilmac Property Company (Wilmac) entered into a Development Agreement dated March 7, 2013, for the property at 151 East 91h Street, which Development Agreement was assigned by Wilmac to Betty Building, LLC (Betty) by an Assignment dated October 6, 2014 and further assigned by Betty to Carmac Management, Inc. (Carmac) by an Assignment dated November 2, 2021; and WHEREAS, Carmac is now the Developer and has completed the project contemplated by the Development Agreement and the property is fully operational; and WHEREAS, Carmac has entered into an agreement to sell the property subject to the Development Agreement to Linseed Lofts, LLC; and WHEREAS, as a part of that transaction Carmac has agreed to assign its rights and obligations under the Development Agreement to Linseed Lofts, LLC and that entity has agreed to accept all such rights and obligations; and WHEREAS, Carmac has requested that the City Council approve and consent to the Assignment of the Development Agreement; and WHEREAS, the City Council finds that consent to the Assignment is in the best interests of the City of Dubuque. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: Section 1. The City Clerk is hereby authorized and directed to cause a notice to be published as prescribed by Iowa Code Section 403.9 of a public hearing on the City's intent to approve the attached Assignment of Development Agreement by and between City of Dubuque and Carmac Management, Inc. to be held on the 20th day of April 2026 at 6:30 p.m. for the purpose of receiving public input and comment regarding the proposed Assignment of Development Agreement. Section 2. The City Council will meet at said time and place for the purpose of taking action on the matter of approving the consent to the Assignment of Development Agreement. Section 3. 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 issuance of said Obligations. Section 4. That the notice of the meeting shall be in substantially the form attached hereto. Passed, approved and adopted this 6th day of April, 2026. Attest: -'n-e ��'SJL— Adrienne N. Breitfelder, City�Clerk CITY OF DUBUQUE, IOWA OFFICIAL NOTICE PUBLIC NOTICE is hereby given that the Dubuque City Council will conduct a public hearing on the 20t" day of April, 2026 at 6:30 p.m., in the Historic Federal Building, 350 W. 6th Street, 2�d floor, Dubuque, lowa, at which meeting the City Council proposes to approve the consent to Assignment of Development Agreement by and between City of Dubuque and Carmac Management, Inc. to Linseed Lofts, LLC. 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://dubuqueia.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. 13t" 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 lowa by dialing 711 or (800) 735-2942. Published by order of the City Council given on the _ day of , 2026. Adrienne N. Breitfelder, CMC, City Clerk Page 1154 of 2358