Dubuque Initiatives_Roshek Building_Release of City Loan Guarantee Copyright 2014
City of Dubuque Action Items # 1.
ITEM TITLE: Dubuque Initiatives - Release of City Loan Guarantee for
Roshek Building Project
SUMMARY: Dubuque Bank& Trust Company President and CEO Doug
Horstmann is informing the city of the release of the
Roshek Building City of Dubuque Loan Guarantee on
behalf of Dubuque Initiatives
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
Roshek Building Refinance-Elimination of City's Debt City Manager Memo
Guarantee-MVM Memo
Staff Memo Staff Memo
Refinancing Letter to City Supporting Documentation
THE CITY OF Dubuque
DUB E i"
Masterpiece on the Mississippi 2007.2012.2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Roshek Building Refinance — Elimination of City's Debt Guarantee
DATE: February 2, 2017
Economic Development Director Maurice Jones is advising that Dubuque Bank and
Trust President and CEO Doug Horstmann has sent a letter to the City of Dubuque
releasing the City loan guarantee for Dubuque Initiatives on the Roshek Building
Project.
In 2009 Dubuque Initiatives entered into a Development Agreement with the City in
order to provide for incentives for the redevelopment of the Roshek Building. This
redevelopment created space for the arrival of IBM and over 1,300 quality jobs.
As part of the incentive package contemplated in the Development Agreement and its
ensuing amendments, the City agreed to a $25 million loan guarantee for the
approximately $47.5 million project. Over time, due to faster-than-anticipated retirement
of the debt, the City's guarantee was reduced to $7.5 million. And this year the loan
guarantee would have been reduced to approximately $5.5 million.
However, Dubuque Initiatives has recently refinanced the debt using the substantial
value of the renovated Roshek Building as collateral and the City Loan guarantee has
been released.
/�IJM2� kL A,1-
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
Dubuque Economic Development Department
THE CITY OF 50 West 13th Street
All-AmericaCitY Dubuque,Iowa 52001-4864
DUB36kE1 ' Office(563)589-4393
TTY(563)690-6678
® http://www.cityofdubuque.org
Masterpiece on the Mississippi 200.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Roshek Building Refinance — Elimination of City's Debt Guarantee
DATE: February 2, 2017
INTRODUCTION
The purpose of this memorandum is to inform City Council of the elimination of the
City's previously committed debt guarantee for a portion of the Roshek Building
redevelopment project.
BACKGROUND
In 2009 Dubuque Initiatives entered into a Development Agreement with the City in
order to provide for incentives for the redevelopment of the Roshek Building. This
redevelopment created space for the arrival of IBM and over 1,300 quality jobs.
DISCUSSION
As part of the incentive package contemplated in the Development Agreement and its
ensuing amendments, the City agreed to a $25 million loan guarantee for the
approximately $47.5 million project. Over time, due to faster-than-anticipated retirement
of the debt, the City's guarantee was reduced to $7.5 million. And this year the loan
guarantee would have been reduced to approximately $5.5 million.
However, Dubuque Initiatives has recently refinanced the debt using the substantial
value of the renovated Roshek Building as collateral and the City Loan guarantee has
been released (see attached letter from Mr. Doug Horstmann, President & CEO of
Dubuque Bank and Trust Company).
RECOMMENDATION/ ACTION STEP
Receive and file the communication from Mr. Horstmann.
' DUBUQUE BANK
AND TRUST
February 2, 2017
Honorable Mayor Roy D. Buol
Mayor
City of Dubuque
50 West 13' Street
Dubuque, IA 52001
Re: Refinancing of Roshek Building
Dear Mayor Buol:
This letter is to inform you that Dubuque Bank and Trust Company(DB&T) funded a
loan in January 2017 to Dubuque Initiatives (DI) to refinance the Roshek Building, which
is owned by DI.
DI originally financed the Roshek Building in 2009 with a loan that was supported by
two guarantees from the City of Dubuque. The first guarantee, dated April 28, 2009, was
for the construction phase of the project. The second, dated June 22, 2009, was for
long-term financing of the building. I am pleased to inform you that the refinancing
completed in January does not involve any guarantees from the City of Dubuque, and the
guarantees referenced above are no longer in force.
On behalf of DB&T and the other community banks involved with this financing,thank
you for the City's direct support of this very significant project for our community. As
opportunities for future projects present themselves, we would be very happy to be
involved.
Please contact me if you have any questions.
Sincerely,
Doug as J. Horstmann
President and CEO
Dubuque Bank and Trust Company
1398 Central Avenue,P.O.Box 7781 Dubuque,Iowa 52004-07781P 563.589.20001 F563.589.20111 800.397.20001www.dubuquebank.com QELLO I.M.Ml 10M