Assignment of Development Agreement for 356 Main Street_Bonson Block-JHTD LLC Copyrighted
May 1, 2017
City of Dubuque Consent Items # 9.
ITEM TITLE: Assignment of Development Agreement for 356 Main
Street
SUMMARY: City Manager recommending approval of a resolution that
assigns the Development Agreement from Bonson Block
L.L.C. to JHTD Plaza, LLC for redeveloped property at 356
Main Street.
RESOLUTION Approving the Assignment of the
Development Agreement between the City of Dubuque and
Bonson Block, LLC from Bonson Block, LLC to JHTD
Plaza, LLC
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
356 Main Street Assignment of DA-MVM Memo City Manager Memo
Staff Memo Staff Memo
Assignment of DA Supporting Documentation
Resolution of Approval Resolutions
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: Assignment of Development Agreement with Bonson Block L.L.C. to
JHTD Plaza, LLC for redeveloped property at 356 Main Street (Bonson
Block Building)
DATE: April 25, 2017
On December 19, 2011, the City Council approved a Development Agreement with
Bonson Block L.L.C. for the rehabilitation of 356 Main Street (known as the Bonson
Block Building) into eight residential apartments and a ground floor commercial space.
The project was awarded a letter of completion on April 18, 2012.
On August 10, 2016, the property was sold by Bonson Block L.L.C. to JHTD Plaza,
LLC. The new owner is now requesting an assignment of the agreement with the City
to assign the rights and obligations, including the economic development grants listed in
Section 3.2 of the agreement. These grants rebate the allowed property tax increment
through May 1, 2028.
Economic Development Director Maurice Jones recommends City Council approval of a
resolution that assigns the Development Agreement from Bonson Block L.L.C. to JHTD
Plaza, LLC.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
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-America City Dubuque,Iowa 52001-4864
k-rtvd
' k
DUB 1E1 r Office(563)589-4393
I I I TTY(563)690-6678
Masterpiece on the Mississippi I. http://www.cityofdubuque.org200.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Assignment of Development Agreement with Bonson Block
L.L.C. to JHTD Plaza, LLC for redeveloped property at 356
Main Street (Bonson Block Building)
DATE: April 25, 2017
INTRODUCTION
This memorandum is a request for the City Council to approve the assignment of the
Development Agreement with Bonson Block L.L.C. for the property located at 356
Main Street to JHTD Plaza, LLC.
BACKGROUND
On December 19, 2011, the City Council approved a Development Agreement with
Bonson Block L.L.C. for the rehabilitation of 356 Main Street (known as the Bonson
Block Building) into eight (8) residential apartments and a ground floor commercial
space. The project was awarded a letter of completion from the City's Building
Services department on April 18, 2012.
DISCUSSION
On August 10, 2016, the property at 356 Main Street was sold by Bonson Block
L.L.C. to JHTD Plaza, LLC. The new owner is now requesting an assignment of the
agreement with the City. This would assign the rights and obligations, including the
economic development grants listed in Section 3.2 of the agreement. These grants
rebate the allowed property tax increment through May 1, 2028.
RECOMMENDATION/ ACTION STEP
Based on the recent addition of downtown housing and the City's goal to assist in
redeveloping the Greater Downtown, I recommend the City Council adopts the
attached resolution to assign the Development Agreement from Bonson Block L.L.C.
to JHTD Plaza, LLC.
Prepared by Jill Connors. Economic Development. 50 W. 13th St.. Dubuque. IA 52001. 563-589-4393
Return to Kevin Firnstahl, City Clerk, 50 W. 13th St., Dubuque, IA 52001, 563-589-4100
RESOLUTION NO. 152-17
APPROVING THE ASSIGNMENT OF THE DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF DUBUQUE AND BONSON BLOCK, L.L.C. FROM BONSON BLOCK,
L.L.C. TO JHTD PLAZA, LLC.
WHEREAS, the City Council of the City of Dubuque, by Resolution No. 437-11,
dated December 19, 2011 entered into a Development Agreement with Bonson Block,
L.L.C. (Developer), and;
WHEREAS, pursuant to the Development Agreement Developer provided certain
improvements to real estate owned by Bonson Block, L.L.C., known locally as the Bonson
Block Building located at 356 Main Street, Dubuque, Iowa (the Property); and
WHEREAS, the Property has been deeded to JHTD Plaza, LLC, an Iowa limited
liability company; and
WHEREAS, Developer desires to assign the Development Agreement to JHTD
Plaza, LLC pursuant to the Assignment attached hereto following the sale of the Property;
and
WHEREAS, the City Council finds that it is in the best interests of the City of
Dubuque to approve the Assignment.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Assignment is hereby approved.
Section 2. The Mayor is hereby authorized and directed to execute the
Assignment on behalf of the City of Dubuque.
Section 3. The City Clerk's Office is authorized and directed to record this
resolution and the Assignment with the Dubuque County Recorder.
Passed, approved and adopted the 1st day of May, 2017.
Attest:
Kevi S. Firnstahl, Cit erk
Roy D. Bu9,, Mayor
11
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Doc ID: 008650390008 Type GEN
Kind: AGREEMENT
Recorded: 06/08/2017 at 02:08:59 PM
Fee Amt: $42.00 Page 1 of 8
Dubuque County Iowa
John Murphy Recorder
F11e2017-00006768
RECORDER'S COVER SHEET
Assignment of Development Agreement
and Approving Resolution
Preparer Information:
Prepared by Jill Connors, Economic Development, 50 W. 13th St., Dubuque, IA 52001,
563-589-4393
Taxpayer Information:
JHTD Plaza, LLC, 3250 Kennedy Circle, Suite 7, Dubuque, IA 52001
Return Document To:
Kevin Firnstahl, City of Dubuque City Clerk, 50 West 13th Street, Dubuque, IA 52001,
563-589-4121
Legal Description:
Southerly 42 and 8/12ths feet of Lot 11 in the City of Dubuque, Iowa according to the
United States Commissioners Map of the Town of Dubuque, Iowa. The real estate
conveyed herein is also described as the south two thirds (2/3) of the city Lot 11 in the
City of Dubuque, Iowa. Locally known as 356 Main Street (Bonson Block Building).
Grantors: Grantees:
The City of Dubuque, Iowa JHTD Plaza, LLC
50 W, 13th Street 3250 Kennedy Circle, Suite 7,
Dubuque, IA 52001 Dubuque, IA 52001
And
Bonson Block, LLC
321 E. Market Street
Iowa City, IA 52244
Previously Recorded Document(s):
Memorandum of Development Agreement: Instrument No. 2011-00020089
ASSIGNMENT OF DEVELOPMENT AGREEMENT
THIS ASSIGNMENT OF DEVELOPMENT AGREEMENT (Assignment) dated for
reference purposes the „/".„ day of , 2017 is entered into by and between
Bonson Block, L.L.C., an Iowa limited liabili company (Developer), JHTD Plaza, LLC,
an Iowa limited liability company (JHTD), and the City of Dubuque, Iowa (City).
WHEREAS, City and Developer entered into a Development Agreement dated
December 19, 2011 (Development Agreement); and
WHEREAS, pursuant to the terms of the Development Agreement Developer was
to provide certain improvements to real estate owned by Developer, such property local
known as 356 Main St., Dubuque, Iowa and legally described as: The southerly 42 and
8/12ths feet of Lot 11 in the City of Dubuque, Iowa, according to the United States
Commissioners' Map of the Town of Dubuque, Iowa. The real estate conveyed herein is
also locally known as 356 Main Street, Dubuque, Iowa (Property). Subject to the
requirements and restrictions of that Development Agreement, City agreed to take certain
actions to aid in the rehabilitation of the Property; and
WHEREAS, Property was rehabilitated per the terms of the Development
Agreement and was subsequently deeded to JHTD. As such Developer desires to assign
all of its rights and obligations under the Development Agreement to JHTD and JHTD
desired to accept such rights and obligation; and
WHEREAS, the parties desire to set forth their agreement regarding such
assignment in writing.
NOW, THEREFORE, the parties to this Assignment of Development Agreement,
in consideration of the promises, covenants and agreements made by each other, do
hereby agree as follows:
Section 1. ASSIGNMENT. Developer does hereby assign, transfer and convey to
JHTD each and every right and obligation of Developer in and under the Development
Agreement.
Section 2. ACCEPTANCE. JHTD does hereby accept all rights and obligations of
Developer under the Development Agreement and agrees to be bound by such
agreement and to be responsible for every obligation of Developer thereunder.
Section 3. CONSENT. City does hereby consent to the assignment as set forth herein
and releases Developer from any obligations that accrue under the terms of the
Development Agreement after the date hereof.
Section 4. MISCELLANEOUS. This agreement is binding upon the parties hereto and
their successors and permitted assigns and shall be governed by and construed under
the laws of the state of Iowa.
IN WITNESS WHEREOF, City has caused this Agreement to be duly executed in
its name and behalf by its Mayor and attested to by its City Clerk and Developer has
caused this Agreement to be duly executed on or as of the first above written.
CITY OF DUBUQUE, IOWA
LeA.,1
Roy D. B r• , Mayor
Attest:
„ea/.
Kevi S. Firnsta1iI, City Clerk
State of Iowa
) ss:
County of Dubuque )
On this ,_ day of
2017 before me, a Notary Public in and for
said state, personally appeared Rov D. Buol and Kevin S. Firnstahl to me known to be
the person(s) named in and who executed the foregoing instrument, and acknowledged
that they executed the same as their voluntary act and deed.
Commission Numberr 77
RRON
2419
My Comm. Exp. F- -5-2612
LemAirni
Notary Public in tj State f Iowa
My Commission expires: 915/2-01
BONSON BLOCK, L.L.C.
/2L1
ichael D. Frantz, Managoi
State of
County of
Notary Public in the State of Iowa
My Commission expires:_
On this 50 day of , 2017 before me, a Notary Public in and for said
state, personally appeared Micha I D. Frantz to me known to be the person(s) named in
and who executed the foregoing instrument, and acknowledged that they executed the
same as their voluntary act and deed.
OFFICIAL SEAL
CURT TULLEY
Notary Public - State of Illinois
LMy Commission Expires Jul 16, 2017
.....„,41........„...
TD PLAZA, LLC
Toben Murdoc Member
State of Iowa
) ss:
County of Dubuque
)
hibriry Public iri the State of
My Commission expires:
On this day of 017 before me, a Notary Public in and for
said state, personally appeared Toben Mur k, to me known to be the person(s)
named in and who executed the foregoing instr ent, and acknowledged that they
executed the same as their voluntary act and deed.
JHTD PLAZA, LLC
Toben Murdock, Member
State of Iowa
ss:
County of Dubuque ) On this i a) day of kACL
2017 before me, a Notary Public in and for
said state, personally appeared Toben Murdock, to me known to be the person(s)
named in and who executed the foregoing instrument, and acknowledged that they
executed the same as their voluntary act and deed.
MICHELLE M. WAGENER,
Commission Number 742170
My C m ssion xpires
Aidat(01,1,0tit
Notary Public in the State of lo
My Commission expires: ey-10-/q
Prepared by Jill Connors, Economic Development, 50 W. 13th St.. Dubuaue. IA 52001, 563-589-4393
Return to Kevin Firnstahl, City Clerk, 50 W. 13th St., Dubuque, IA 52001, 563-589-4100
RESOLUTION NO. 152-17
APPROVING THE ASSIGNMENT OF THE DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF DUBUQUE AND BONSON BLOCK, L.L.C. FROM BONSON BLOCK,
L.L.C. TO JHTD PLAZA, LLC.
WHEREAS, the City Council of the City of Dubuque, by Resolution No. 437-11,
dated December 19, 2011 entered into a Development Agreement with Bonson Block,
L.L.C. (Developer), and;
WHEREAS, pursuant to the Development Agreement Developer provided certain
improvements to real estate owned by Bonson Block, L.L.C., known locally as the Bonson
Block Building located at 356 Main Street, Dubuque, Iowa (the Property); and
WHEREAS, the Property has been deeded to JHTD Plaza, LLC, an Iowa limited
liability company; and
WHEREAS, Developer desires to assign the Development Agreement to JHTD
Plaza, LLC pursuant to the Assignment attached hereto following the sale of the Property;
and
WHEREAS, the City Council finds that it is in the best interests of the City of
Dubuque to approve the Assignment.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Assignment is hereby approved.
Section 2. The Mayor is hereby authorized and directed to execute the
Assignment on behalf of the City of Dubuque.
Section 3. The City Clerk's Office is authorized and directed to record this
resolution and the Assignment with the Dubuque County Recorder.
Passed, approved and adopted the 1st day of May, 2017.
Roy D. Buq Mayor
Attest:
KevirnS. Firnstahl, Citerk
STATE OF IOWA
CERTIFICATE of the CITY CLERK
) SS:
COUNTY OF DUBUQUE )
I, Kevin S. Firnstahl, do hereby certify that I am the duly appointed, qualified, City Clerk
of the City of Dubuque, Iowa, in the County aforesaid, and as such City Clerk, I have in
my possession or have access to the records of the proceedings of the City Council. I
do further state that the hereto attached Resolution No. 152-17 is a true and correct
copy of the original.
In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque,
Iowa.
Dated at Dubuque, Iowa, on this 6th day of June, 2017.
//://
Kevi S. "rnstahl, CMC, ty Clerk