DB & T Enterprise Zone AgreeMEMORANDUM
August 13, 2002
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Enterprise Zone Agreement #2002-EZDEV-02 for Dubuque Bank & Trust
Economic Development Director Bill Baum recommends City Council approval of an
Enterprise Zone (EZ) Program Agreement with the Iowa Department of Economic
Development (IDED) and Dubuque Bank & Trust related to the redevelopment of the
former Walsh Store Building.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
August 9, 2002
TO:
FROM:
SUBJECT:
Michael Van Milligen, City Manager
William Baum, Economic Development Director
Enterprise Zone Program Agreement #2002-EZDEV-02 for Dubuque Bank
& Trust
INTRODUCTION
This memorandum presents for City Council approval an Enterprise Zone (EZ) Program
Agreement with the Iowa Department of Economic Development (IDED) and Dubuque Bank
& Trust. The City Council is requested to adopt a resolution approving the agreement.
BACKGROUND
On April 25, 2002, the City Enterprise Zone Commission approved an application to IDED on
behalf of Dubuque Bank & Trust for Enterprise Zone benefits related to the company's
redevelopment of the former Walsh Store Building. IDED approved the company's
application on April 29, 2002.
DISCUSSION
Attached to this memorandum is a resolution that provides for the approval of the agreement
for Enterprise Zone benefits for Dubuque Bank & Trust. The resolution authorizes and
directs the Mayor to execute the agreement on behalf of the City. The agreement outlines
the State benefits, including investment tax credits and refunds of sales, service and use
taxes paid during the construction phase of the project, that will accrue to the company
based on their role as developer of the project. There are no employment requirements for
approved development businesses that qualify for Enterprise Zone benefits; however, the
project anticipates 20 new positions within the first year and 45 new positions within 5 years.
Dubuque Bank & Trust has committed to a capital investmen{ of at least $4,000,000 within
the Enterprise Zone. A copy of the agreement is attached to the resolution.
RECOMMENDATION
I recommend that the City Council approve the proposed Enterprise Zone (EZ) Program
Agreement for Dubuque Bank & Trust by adopting the attached resolution. This agreement
will provide State of Iowa financial benefits to a local company making a substantial
investment in our downtown. There is no commitment within the agreement of any further
City assistance.
ACTION STEP
The action step for the Council is to adopt the attached resolution.
Attachments
F:\USERS\Pm~hre\WPDOCS\EZ~DBT~CONTRACT,MEM.doc
RESOLUTION NO. 424-02
RESOLUTION APPROVING AN ENTERPRISE ZONE AGREEMENT BY AND AMONG
THE IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT, THE CITY OF DUBUQUE
AND DUBUQUE BANK & TRUST.
Whereas, the City of Dubuque has established two Enterprise Zones and an
Enterprise Zone Commission; and
Whereas, the Enterprise Zone Commission on April 25, 2002 approved the
application of Dubuque Bank & Trust for Enterprise Zone benefits; and
Whereas, Dubuque Bank & Trust's application was approved by the Iowa
Department of Economic Development on April 29, 2002; and
Whereas, the Iowa Department of Economic Development has prepared and
submitted for City Council approval an agreement relating to Enterprise Zone benefits for
Dubuque Bank & Trust a copy of which is attached hereto and by this reference made a
part hereof; and
Whereas, the City Council finds that the proposed agreement is acceptable and
necessary to the growth and development of the city.
NOW TH EREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1.
That the Iowa Department of Economic Development Enterprise Zone
(EZ) Program Agreement, Number 2002-EZDEV-02, is hereby
approved.
Section 2.
That the Mayor is hereby authorized and directed to execute the
Agreement on behalf of the City of Dubuque and forward the
executed copy to the Iowa Department of Economic Development for
their approval.
Passed, approved and adopted this 19th day of August, 2002.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT
ENTERPRISE ZONE PROGRAM AGREEMENT
EZ AGREEMENT NUMBER:
APPLICA TION APPR OVAL DA TE:
.4GREEMENT EFFECTIVE DA TE:
.4GREEMENT EXPIRA TION DA TE:
ENTERPRISE ZONE NAME:
ZONE CER TIFICA TION DA TE:
;ZONE EXPIRATION DATE:
2002-EZDEV-02
April 29, 2002
April 29, 2002
April 28, 2007
Dubuque EZ-1
November 20, 1997
November 19, 2007
THIS ENTERPRISE ZONE AGREEMENT is made by and among the IOWA DEPARTMENT OF
ECONOMIC DEVELOPMENT, 200 East Grand Avenue, Des Moines, Iowa 50309 ("Department" or "IDED"), City
of Dubuque, 50 West 13th Street, Dubuque, iowa 52001-4864 ("Community") and Dubuque Bank & Trust, 1398
Central Avenue, Dubuque, Iowa 52001, ("Development Business').
WHEREAS, the purpose of the Enterprise Zone Program is to promote new economic development in
economically distressed areas; and
WHEREAS, the Community has designated and the Department has certified the Enterprise Zone
identified above; and
WHEREAS, eligible development businesses with projects located in a certified Enterprise Zone are
authorized under this program to receive certain tax incentives and assistance; and
WHEREAS, the Enterprise Zone Commission responsible for the above-identified Zone has recommended
approval and the Department has found the Development Business' application to be consistent with the Act's
eligibility requirements; and
NOW THEREFORE, in consideration of the mutual promises contained in this Agreement and other good
aind valuable consideration, it is agreed as follows:
ARTICLE I
DEFINITIONS
As used in this Agreement, the following terms shall apply:
1.1 "Ac~' means 2001 Iowa Code sections 15E.191 through 15E.196 as amended by 2002 Iowa Acts,
House File 2378.
~ 1.2 ~Administrative Rules" means 261 Iowa Administrative Code, chapter 59.
1.3 "Agreement Effective Date~ means the date this Agreement becomes effective and the
Development Business is authorized to receive program benefits.
I 1.4 "Agreement Expiration Date" means the date this Agreement ceases to be in force and effect.
1.5 "Application Approval Date" means the date, as identified above, on which the Director of the IDED
a~pproved the Development Business' Enterprise Zone application.
1.6 "Board" means the IDED Board.
EzDEv Format revised 7/2002
EZ Agreement # 2002-EZDEV-02
Page 2
1.7 "Buildinq Space" means the 52,200 square foot area of the building, as described in the
Development Business' Enterprise Zone application, which will be constructed, expanded, or rehabilitated and will
bE} used for manufacturing, processing, cold storege, distribution or office facilities.
I 1.8 "Commission" or "Enterprise Zone Commission" means the Enterprise Zone commission
e~stablished by the Community responsible for the certified Enterprise Zone.
1.9 "DRF" means the Iowa Department of Revenue and Finance.
1.10 "Enterprise Zone" means the site within the Community certified by the Board for the purpose of
attracting private investment.
1.11 "Pre[ecF means the activity, or set of activities, described in this Agreement and the Enterprise
Zone application approved by IDED.
1.12 "Pro[oct Completion" means the date of completion of construction or, if this Project involves
e~pansion or rehabilitation, the date alt imprOvements included in the Project are completed.
ARTICLE II
ENTERPRISE ZONE BENEFITS
2.1 Benefits. The following Enterprise Zone benefits authorized by the Act and IDED administrative
rgles are available to the Development Business under this Agreement:
(a) Investment Tax Credit. The Development Business may claim an investment tax credit up to a
maximum of 10 percent of the new investment which is directly related to the construction, expansion or
r~habilitation of the Building Space. For purposes of this section, "new investment" includes the purchase price of
and and the cost of improvements made to real property. The Development Business may not claim an investment
tax credit for a new investment above the amount stated in Article IV, Section 4.1 of this Agreement. The tax credit
r~ay be claimed by the Development Business for the tax year in which the construction, expansion, or
rehabilitation is completed. The tax credit may be used to reduce tax liabilities imposed under Iowa Code chapter
4~22, Division II, Division III or Division V or under Iowa Code chapter 432. Any credit in excess of the tax liability for
t§e tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs
eerlier.
If the business is a partnership, subchapter S corporation, limited liability company, or estate or trust
e!ecting to have the income taxed directly to the individual, an individual may claim the tax credit allowed. The
amount claimed by the individual shall be based upon the pre-rata share of the individual's earnings of the
partnership, subchapter S corporation, limited liability company, or estate or trust.
(b) Refund Of Sales, Service And Use Taxes Paid To Contractors Or Subcontractors. The
Development Business is eligible for a refund of sales, service and use taxes paid to contractors and
sIJbcontract°rs as authorized in Iowa Code section 15.331A.
(ii)
The Development Business may apply for a refund of the sales and use taxes paid under Iowa
Code chapters 422 and 423 for gas, electricity, water or sewer utility services, goods, wares, or
merchandise, or on services rendered, furnished, or performed to or for a contractor or
subcontractor and used in the fulfillment of a written contract relating to the construction,
expansion, rehabilitation or equipping of the Building Space within the Enterprise Zone.
Taxes attributable to intangible property and furniture and furnishings shall not be refunded.
Format revised 7/2002
EZ Agreement # 2002-EZDEV-02
Page 3
To receive a refund of the sales, service and use taxes paid to contractors or subcontractors, the
Development Business must, within one year after Project Completion, make an application to the DRF. The
Business shall inform the DRF in wdting within two weeks of Project Completion.
(c) Value-Added Property Tax Exemption. The Community has approved an exemption from taxation
all or a portion of the value added to the property upon which the Development Business constructs, expands, or
rehabilitates Building Space in an Enterprise Zone. The amount of the exemption is detailed in Attachment C, "City
Council Resolution Authorizing Property Tax Exemptions for the Enterprise Zone."
I 2.2 Duration Of Benefits. The Enterprise Zone designation shall remain in effect for ten years following
the date of certification. Any state incentives or assistance that may be conferred must be conferred before the
d}esignation expires. However, the benefits of the incentive or assistance may continue beyond the expiration of
the Enterprise Zone designation.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF BUSINESS
To induce the Department and the Community to authorize Enterprise Zone benefits referred to in this
Agreement, the DeveloPment Business represents, covenants and warrants that:
i 3.1 Authority. The Development Business is a corporation duly organized and validly existing under
t~e laws of its state of incorporation and is in good standing, and has complied with all applicable laws of the State
of Iowa. The Development Business is duly authorized and empowered to execute and deliver this Agreement: All
action on the Development Business' part (e.g. where required, appropdata resolution of its Board of Directors) for
the execution and delivery of this Agreement, has been effectively taken.
3.2 Business Information. All written financial statements and related materials concerning the
~meVelopment Business and the Project provided to the Department and the Community are true and correct in all
atedal respects and completely and accurately represent the subject matter thereof as of the effective date of the
s!atements and re]atad materials, and no material adverse change has occurred since that date.
3.3 Application. The contents of the application the Development Business submitted to the
Department for Enterprise Zone program benefits (Attachment A) is a complete and accurate representation of the
Development Business and the Project as of the date of submission and there has been no material adverse
~uange in the organization, operation, business prospects fixed properties or key personnel of the Development
siness since the date the Development Business submitted its application to the Department.
3.4 Claims And Proceedinqs. There are no actions, lawsuits or proceedings pending or, to the
knowledge of the Development Business, threatened against the Development Business affecting in any manner
~W~ufohatsoever its rights to execute this Agreement or to otherwise comply with the obligations of the Development
siness contained under this Agreement. There are no actions, lawsuits or proceedings at law or in equity, or
re any governmental or administrative authority pending or, to the knowledge of the Development Business,
threatened against the Development Business or affecting the Development Business' ability to proceed with the
P[roject.
3.5 Permits. All necessary permits have been issued or will be applied for in a timely manner with
~asonable expectation that they will be issued.
Formatrevised 7/2002
EZ Agreement # 2002-EZDEV-02
Page 4
ARTICLE IV
CONDITIONS TO RECEIPT OF ENTERPRISE ZONE BENEFITS
The Enterprise Zone Benefits authorized under Article II of'this Agreement are available to the
)evetopment Business provided the Development Business, (and where applicable, the Community) satisfies each
of the following condlhons:
4.1 Investment. The Development Business shall construct, expand or rehabilitate the Building Space
vith a capital investment of $4,000,000 within the Enterprise Zone.
4.2 Retail Business. The Building Space constructed, expanded or rehabilitated by the Development
lusiness shall not be occupied by a retail business.
4.3 Completed within Three Years. The Development Business shall complete its construction,
expansion or rehabilitation of the Building Space within three years from the Application Approval Date.
4.4 Lease with Nondevelopment Business. The Development Business shall have an agreement with
at least one nondevelopment business for purposes of locating the nondevelopment business in all or portion of the
Building Space for a period of at least five years.
4.5 Records And Accounts. The Development Business shall maintain information, books, records,
documents and other evidence concerning the Project, in sufficient detail to permit the Department and the
Community to assess compliance with the terms of this Agreement. The Development Business shall retain the
aforementioned records for a period of three (3) years from the Agreement Expiration Date.
4.6 Access To Records/Inspections. The Development Business shall, upon prior reasonable notice
and at any time (during normal business hours), permit the Community and its representatives and the Department,
its representatives or the State Auditor to examine, audit and/or copy:
(i) any plans and work details pertaining to the Project,
(ii) all of the Development Business' books, records and accounts relating to the Project, and
(iii) all other documentation or materials related to this Agreement.
The Development Business shall provide proper facilities for making such examination and/or inspection.
Records of the Development Business furnished to the Department in connection with this Project are subject to the
provisions of Iowa Code chapter 22 and administrative rules adopted by the Department concerning public records
and requests for confidential treatment of records.
4.7 Notice Of Proceedings. The Development Business shall promptly notify the Community and IDED
of the initiation of any claims, lawsuits, bankruptcy proceedings or other proceedings brought against the
Development Business which would adversely impact the Project.
4.8 Notice Of Business Chanqes. The Development Business shall provide prompt advance notice to
the Community and the Department of any proposed change in the Development Business ownership, structure or
control which would materially and directly affect the Project.
ARTICLE V
DEFAULT AND REPAYMENT
5.1 Events Of Default. Enterprise Zone benefits described in Article II are only available to the
Bevelopment Business to the extent the Development Business satisfies the conditions described in Article IV. Any
Of the following shall constitute an Event of Default under this Agreement:
Format revised 7/2002
EZ Agreement # 2002-EZDEV-02
Page 5
(a) Material Misrepresentation. If at any time any representation, warranty or statement made or
furnished to the Department or the Community by, or on behalf of, the Development Business in connection with
this Agreement shall be determined by the Department to be incorrect, false, misleading or erroneous in any
material respect when made or furnished.
(b) Breach Of Agreement. If there is a failure of the Development Business to comply with any of the
covenants, terms or conditions contained in this Agreement.
(c) Relocation Or Abandonment. If there is an abandonment of the Project and the Development
Business fails to renew the Project within the Enterprise Zone within 30 days. If the relocation or abandonment is
due to a natural disaster (e.g. flood, tornado), the Development Business shall have 120 days to renew the Project
within the Enterprise Zone.
(d) Insolvency Or Bankruptcy. If the Development Business becomes insolvent or bankrupt, or admits
in writing its inability to pay its debts as they mature, or makes an assignment for the benefit of creditors, or the
Development Business applies for or consents to the appointment of a trustee or receiver for the Development
Business or for the major part of its property; or if a trustee or receiver is appointed for the Development Business
or for all or a substantial part of the assets of the Development Business and the order of such appointment is not
discharged, vacated or stayed within sixty (60) days after such appointment; or if bankruptcy, reorganization,
arrangement, insolvency, or liquidation proceedings or other proceedings for relief under any bankruptcy or similar
law or laws for the relief of debtors, are instituted by or against the Development Business and, if instituted against
the Development Business, is consented to, or, if contested by the Development Business is not dismissed by the
adverse parties or by an order, decree or judgment within sixty (60) days after such institution.
5.2 Notice Of Default.
(a) From Department. If, through the annual certification report or other means, the Department has
reason to believe the Development Business is in default of the terms of this Agreement, the Department will issue
a written notice of default to the Development Business, setting forth the nature of the default in reasonable
specificity, and providing therein a reasonable period of time, which shall not be less than 30 days from the date of
the notice of default, in which the Development Business shall have an opportunity to cure, provided that cure is
possible and feasible. A copy of any Notice of Default will also be provided to the Community and DRF.
(b) From Community. If, through monitoring, auditing or other means, the Community has reason to
believe the Development Business is in default of the terms of this Agreement, the Community will issue a written
notice of default to the Development Business, set~ing forth the nature of the default in reasonable specificity, and
providing therein a reasonable period of time,.which shall not be tess than 30 days from the date of the notice of
default, in which the Development Business shall have an opportunity to cure, provided that cure is possible and
feasible. A copy of any Notice of Default will also be provided to the Department and DRF.
5.3 Repayment; Loss of Benefits.
(a) Failure to meet/maintain requirements. If the Development Business fails in any year to meet or
maintain any one of the requirements of the Act, the Development Business shall repay the value of the incentives
received for each year during which it was not in compliance.
(b) DRF; community recoveqz. Once it has been established, through the Development Business'
annual certification, monitoring, audit or otherwise, that the Development Business is required to repay all or a
~ortion of the incentives received, the DRF and the Community shall collect the amount owed. The Community has
the authority, pursuant to the Act, to take action to recover the value of taxes not collected as a result of the
exemption provided by the Community to the Development Business. DRF has the authority, pursuant to the Act,
to recover the value of state taxes or incentives provided under the Act. The value of state incentives provided
ulnder the Act includes applicable interest and penalties.
Format revised 7/2002
EZ Agreement # 2002-EZDEV-02
Page 6
ARTICLE VI
GENERAL TERMS AND PROVISIONS
6.1 Compliance With Laws And Regulations. The Development Business shall comply with all
applicable State and federal laws, rules (including the Administrative Rules), ordinances, regulations and orders.
6.2 Termination. This Agreement may be tarminated by the Department or the Community: (a) in the
event of an unremedied matedal Event of Default by the Development Business under Article V of this Agreement;
or (b) by mutual agreement of all parties.
6.3 Survival Of Aqreement. If any portion of this Agreement is held to be invalid or unenfomeable, the
remainder shall be valid and enforceable.
6.4 Governing Law. This Agreement shall be interpreted in accordance with the law of the State of
Iowa, and any action relating to this Agreement shall only be commenced in the Iowa District Court for Polk County
or the United States District Court for the Southern District of Iowa.
6.5 Modification. This Agreement may only be modified by a written document signed by all Parties.
6.6 Notices. Whenever this Agreement requires or permits any notice or written request by one party
to another, it shall be in writing, enclosed in an envelope, addressed to the party to be notified at the address
heretofore stated (or at such other address as may have been designated by written notice), properly stamped,
sealed and deposited in the United States Mail. Any such notice given hereunder shall be deemed delivered upon
the earlier of actual receipt or three (3) business days after posting. The Department may rely on the addresses of
the Development Business and Community set forth heretofore, as modified from time to time, as being the
addresses of the Community and Development Business.
6.7 Waivers.. No waiver by a party of any Event of Default hereunder shall operate as a waiver of any
other Event of Default or of the same Event of Default on any future occasion. No delay on the part of a party in
exercising any right or remedy hereunder shall operate as a waiver thereof. No single or partial exercise of any
right or remedy by a party shall preclude future exercise thereof or the exercise of any other right or remedy.
6.8 Headings. The headings in this Agreement are intended solely for convenience of reference and
shall be given no effect in the construction and interpretation of this Agreement.
6.9 Inteqration. This Agreement contains the entire understanding between the Community,
Development Business and the Department and any representations that may have been made before or after the
signing of this Agreement, which are not contained herein, are nonbinding, void and of no effect. None of the
parties have relied on any such prior representation in entering into this Agreement.
6.10 Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.
6.11 Documents Incorporated By Reference. The following documents are hereby incorporated by
reference:
(a)
(b)
(c)
Attachment A, "Development Business' Enterprise Zone Application."
Attachment B, "Enterprise Zone Commission Resolution Approving the Development Business'
Enterprise Zone Application."
Attachment C, "City Council Resolution Authorizing Property Tax Exemptions for the Enterprise
Zone.=
Format revised 7/2002
EZ Agreement # 2002-EZDEV-02
Page 7
6.12 Order Of PrioritF. In the event of a conflict between documents of this Agreement, the following
order of priority shall govern:
(a)
(b)
(c)
(d)
Articles 1 through 6 herein.
Attachment A, "Development Business' Enterprise Zone Application."
Attachment B, "Enterprise Zone Commission Resolution Approving the Development Business'
Enterprise Zone Application."
Attachment C, "City Council Resolution Authorizing Property Tax Exemptions for the Enterprise
Zone."
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
Effective Date first stated:
FOR THE COMMUNITY:
City of Dubuque
FOR IDED:
Signature
Type or Pdnt Name, Title
C.J. Niles, Director
FOR THE DEVELOPMENT BUSINESS:
Dubuque Bank & Trust. ~ ..
Type or Print Name, Title
Format revised 7/2002
ATTACHMENT A
Development Business' Enterprise Zone Application
ELIGIBLE DEVELOPMENT BUSINESS
As authorized by 2001 Iowa Acts, House File 349
APPLICATION FOR
ENTERPRISE ZONE
BENEFITS
Enterprise Zone
Commission
Eligible Development
Business
Iowa Department of
Economic Development
November 2001
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT
DMSION OF BUSINESS DEVELOPMENT
200 EAST GRAND AVENUE
DES MOINES, IOWA 50509
PUBLIC RECORDS POLICIES
Information Submi#edto IDED. The Iowa Department of Economic Development C!DED) is subject to the
Open Records law (2001 Iowa Code, Chapter 22). Treatment of reformation submitted to IDED in an
Enterprise Zone application is governed by the provisions of the Open Records law. Ail public records are
available for pubhc inspection. Some public records are considered confidential and will not be disdosed to
the public maless ordered by a court, the lawful custodian of the record, or by another person duly author/zed
to rdease the information.
Fallure of an applicant to request confidential record treatment for a record does not preclude DED from
treatlvg it as a confidenfiai recurd. However, if an applicant who has submitted business information to
IDED does not submit a request for cortfidential treatment, IDED may proceed as if that applicant
has no objection to its disclosure to members of the public.
Co.n~dential Rewrdr. The contents of a completed Enterprise Zone application are open to public inspecuon.
Some information that may be submitted in connection with an application is treated as confidential by the
Department. For example:
· Tax records.
· Quarterly Iowa "Employer's Contribution and Payroll Report" prepared by the Iowa
Department of Employment Service.
· Payroll registers.
Other information supplied to IDED as part of the application may be treated as confidential under Iowa
Code section 22.7. Following are the dassifications of records which are recognized as confidenfiai under
Iowa law and which are most frequently applicable to business information submitted to IDED:
a. Trade secrets. [Iowa Code 422.7(3)]
b. Reports to governmental agencies which, if released, would give advantage to competitors
and serve no public purpose. [Iowa Code [22.7(6)]
c. IDED information on an industrial prospect with which the Department is currently
negotiating. [Iowa Code ~22.7(8)]
d. Communications not requked by law, rule or regulation made to the Department by persons
outside of government to the extent that IDED could reasonably believe that those persons
would be discouraged from makLqg them to the Department if they were made available for
general public examination. [Iowa Code §22.7(18)]
How to Request Treatment ora Record as a Confidential Record. A request that a record, or portions of a record, be
treated as confidential muse.
Be in writing and submitted to IDED;
Set forth the legal and factual basis justifyir~g such confidential record treatment for that
record [refer to the list of 422.7 exceptions most applicable];
Identify the specific reasons justifying confidential treatment;
Include the name, address and teleplione number of the person authorized to respond ro any
inquiry or action of IDED concerning the record; and
Submit the odginai record and a copy of the record in wh/ch those portions for which
confidential treatment is requested has been deleted.
If the original record is being submitted to IDED by the person requesting confidential rrearmenr at the time
the request is filed, the original record must conspicuously indicate on the original record that all or pordons
of it are confidential. Requests for treatment ora record as confidential for a limited period of time sha]]
specify the precise period of time for which that treatment is requested. A person requesting treatment of a
record as confidential record may also be required to sign a certified statement or affidavit enumerating the
specific reasons justifying the treatment of that record as a confidential record and to provide any proof
necessary to establish relevant facts.
Request Granted. D.eferred orDenied. If a request for confidential record treatment is denied, IDED will notify
the applicant in wziting of that determination and the reasons for denial. Upon request of the applicant,
DED may engage in good faith, reasonable delay in allowing examinadun of the record so that the applicant
may seek injunctive relief under Iowa Code ~22.8 or other applicable provision of law. However, a record will
not be withheld from public inspecfiun for any period of time it?IX)ED determines that the applicant has no
reasonable grounds to justify treatment of that record as confidential. IDED will notify the applicant in
wziting of the time pm:iod to seek injunctive relief or the reasons for the determination that no reasonable
ground exist to justify confidential treatment.
If a request for confidential record treatment is granted, or if action on the request is deferred, a copy of the
record from wh/ch the matrer in question has been deleted and a copy of the decision to grant the request or
to defer action upon it will be available for public inspection in lieu of the original record.
~tddiiionalln~ormaXion. Copies of Iowa's Open Records law and fi)ED's administrative rules relating to public
records are available from the Department upon request
INTENT: The Enterprise Zones Program was established by the Iowa Legislature with the intent of
promoting new economic development in economically distressed areas of Iowa by encomging communities
to target resources in ways that attract productive private investment.
GENERAL INSTRUCTIONS
If more than six months has elapsed since the date on the front of th/s application, please contact
IDED to see if this version of the application is st/Ii current.
Before filling out this application form, please read 2001 Iowa Code Sections 15E.191 thxough
15E.196, the Enterprise Zone Program administrative rules and 2001 Iowa Acts, House File 349.
Only typed or computer-generated applications will be accepted and reviewed. (Contact DED to
have an electronic copy of this application e-mailed to you.) Any mater/al change to the format.
questions or wording of questions presented in this application, will render the application invalid and
will not be accepted.
Complete the application fully; if any questions are left unanswered or required attachments are not
submitted, an explanation must be included.
Use clear and concise language. Attachments should only be used when requested or as supporting
docurnentation.
6. _Any inaccurate information, of a sig~ficant nature may disqualify the application from consideration.
7. Send the original plus two copies of the completed application and ail required attachments to:
Amy E. Johnson
Project Manager
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, Iowa 50309
Phone: (515) 242-4735
Fax: (515) 242-4795
E-ma/l: amy.johnson~ided.state.La.us
It is not necessary to b'md the application and/or the required attachments. Staples and/or b'mder
clips may be utilized. Please provide photocopies of any documents, which in their orzginal form,
IDED would not be able to 2-hule punch for purposes of creating the applicant's file.
APPLICANT INFORMATION
l~..lioo~'ble Development Business
Name of Development Business:
Business Contact Name & Tide:
Address:
City, State & Zip Code:
Telephone:
Fax:
E-mail Address:
DUBUQUE BANK & TRUST
Nelson P. Klavitter, Vice President Operations & Cashier
1398 Central Avenue
Dubuque, Iowa 52001
(563) 589-2158
(563) 589-2009
nldavitter~htlf, com
£ocM Enterpdse Zone CommissJo~
Enterprise Zone Comtmssion Name:
Commission Contact Name & Tide:
Address:
City, State & Zip Code:
Telephone:
Fax:
E-mail Address:
DUBUQUE ENTERPRISE ZONE COMMISSION
William J. Baum, Economic Development Director
50 West 13th Street
Dubuque, Iowa 52001-4864
(563) 589-4393
(563) 589-1733
wbaum(~_ ~ci _tyo fdubuque .org
CERTIFICATION & R~I,1Z, ASE OF INFORMATION
I, the undersigned, on behalf of the Development Business identified above, hereby submit the folloxving
application under Enterprise Zone Legislation, 2001 Iowa Code Sections 15E. 191 through 15E.I96 as
amended by 2001 Iowa Acts, House File 349. I certify the Development Business is or will be a corporation
duly organized and validly existing trader the laws of the state of incorporation and is in good standing, and
has complied or will upon receipt of approval by the Department, with all applicable laws of the State of Iowa
to conduct business within the State. Further, ail action on the Development Business' part, such as
appropriate resolution of its Board of Directors for the execution and delivery of this Enterprise Zone
Application, including signatory authorization naming the undersigned officer of the Development Business to
execute tiffs Enterprise Zone Application and, if approved, the Enterprise Zone Agreement, has been
effectively taken. I certify that all information, representations, or statements provided to the Iowa
Departmmat of Economic Development 0DED), in connection with this application, are true and correct in
all material respects.
I hereby give permission to IDED to make credit checks, contact the company's financial institution(s),
contact current, past or prospective occupants of the building space described in this application and perform
other related activities necessary for reasonable evaluation of this application.
I understand th/s application is subject to final approval by the Department and am aware that Enterprise
Zone benefits are not available until final Department approval is secured and an agreement is executed with
the Development Business, IDED and the Community, within a reasonable time period following approval.
This application will be used as the basis for the Enterprise Zone agreement.
For the Development Busiaess:
Signature, Title
Nelson P. Klavitter, Vice President Operations & Cashier
Print name and tide
Date
For Enterprise Zone Commissiom
Signature, Tide /
Richard D. Stein, Chairperson
Print name and tide
Dat~ t
APPLICATION INFORMATION
Section 1: Project Information and Description
1. Please provide a brief overview of the Development Bus'mess (include information about
products/services the Development Business provides, its primary markets/customers, the types of
buildings the bu£mess has constructed, expanded or rehaNlitated in the past, em.).
Dubuque Bank & Trust was founded in 1935. The principal services of Dubuque Bank &
Trust are Banking, Insurance and Investment Services to businesses and individuals in
Dubuque County, Iowa, through its nine locations.
Types of buildings Dubuque Bank & Trust has constructed or rehabilitated in the past
include 32,000 sq. ft. addition/remodel to Main Bank Building at 14t~ and Central in 1993-94;
Remodel of Grandview Branch in 1999; Major Remodel of Motor Bank at 14t~ and Iowa in
2000; Major Remodel and Face Lift of Kennedy Mall Branch in 2001. New Branch
Construction is under consideration for Farley, Iowa in 2002.
In which Enterprise Zone will fi'tis project occur (indude the zone's name, number, size in acres, and
date certified)?
This project will occur in Dubuque EZ1, a 1,012 acre EZ certified on 11/20/97, and amended
on 8/17/00.
Please describe the project. Include information about the building space that has been or will be
expanded, constructed or rehabilitated, the size (in square feet) and intended use of the building
space, steps necessary to complete the project, proposed timeline, etc. If any of the building space
will be excluded for purposes of qual/_lying for Enterprise Zone benefits, please also explain why (,i.e.
retail space, will be sold, etc.) and indicate the size (in square fee0 of the building space to be
excluded.
Project includes the Purchase and Rehabilitation of the former Walsh Store Buildings along
Central Avenue between 13t~ and 14t~ Streets. Also includes the acquisition of the Iowa Street
Tm-Value Hardware Store at 13th and Iowa. All of the property is immediately west and
across the street from the Main Office of Dubuque Bank & Trust.
The existing single sto~ construction at the place of the Walsh/Ziepprecht Building will be
removed and a new three story addition will be built in its place. This concept will allow for
the maximization of the available site in the building to be used to its fullest. The core
elements (stairwells, elevator, restrooms, mechanical equipment rooms and chase and
custodial closets) will be built in the new construction. The original building will be used for
offices, meeting rooms and workstations.
This project will include a three-story inllll of approximately 4261 sq. ft. per floor (12.780 sq.
ft. total) and restoration of 42,540 sq. ft. for a total project square footage of 52,200 sq. ft.
including the basement.
The project is expected to be finished by the fourth quarter, 2003.
STEPS AND TIME LINE:
Schematic Design - Spring, 2002
Design Development and Construction Documents - Late Spring through Fall~ 2002
Bidding and Negotiating - Fall 2002
Demolition and Construction - Fall 2002 through Fall 2003
Completion and Occupations - Winter 2003.
What is the current status of the project? If the exp~msion, construction or rehabilitation activities
have been initiated, please describe what activities have occurred.
Property has been purchased. Engineering study underway, as well as lfisturical review to
begin to develop plans and specification for restoration.
Hazard-material investigation completed; removal of asbestos underway.
Attach a legal description of the site on wlfich the project will occur.
Tract I
The Middle 1/5 of Out Lot 449 in the City of Dubuque, Iowa, according the United
States Commissioners' Map thereof.
The South % of the North Middle 1/5 of Out Lot 449 in the City of Dubuque, Iowa,
according to the United States Commissioners' Map thereof.
The North 1/5 and the North 1/: of the North Middle 1/5 of Out Lot 449 in the City
of Dubuque, Iowa~ according to the United States Commissioners' Map
thereof.
Lot 4 of the South % of Out Lot 456, and
Lot 1 of Lot 3 of the South I/2 of Out Lot 456, in the City of Dubuque, Iowa,
according to the recorded Plats thereof.
Tract II
The Southerly 2/5ths of Out Lot 449 in the City of Dubuque, Iowa according to the
United States Commissioners' Map of the Survey of said Town of Dubuque,
Iowa.
LOt 1, Lot 2~ and Lot 2 of Lot 3, all of the Subdivision of the south half of Out Lot 456,
in the City of Dubuque, Iowa, according to the recorded Plats of said respective
Subdivision.
Attach a detMied map (no larger than 8" x 14') shovcMg the project site in relation to the boundaries
of the certified Enterprise Zone.
See Mapattached.
Section 2: Mandatory Requirements
Cap~ital IJ2restme~t: The development business must make a capital investment of at least $500,000 and
complete its project within 3 years of the date on which this application is approved by the IDED.
If applicable, a development bus.mess may utilize one, but not both of the folloxving exemptions to the capital
investment requirement:
(1) If the development business will be buying a vacant building suitable for industrial use, the fak market
value of the building mad land, not to exceed $250,000 as determined by the local Enterprise Zone
Commission, shall be counted toward the mizdmum $500,000 capital investment requirement.
(2) If the development business will be rehabilitating an ~sting building space that has been located within
the area certified as an Enterprise Zone for at least five years, the fair market value as established by an
appraisal of the building, not to exceed $250,000, shall be counted toward the minimum $500,000 capital
investment requirement.
Please ind/cate the capital investment that will be made as the result of this project.
Description of Capital Expenditure Amount
$
Renovation/Rehabilitation $4,000,000.00
$
$
Total $4,000~000.00
No RetMl: The Development Bus'mess, if approved, shall not allow a retail business to occupy space */tthin
the building space described within this application. A retail business will not occupy the building space.
Ze~seA~reeament: The Development Business shall enter into an agreement with at least one other business
for purposes of locating that other business in ali or a portion of the building space for a period of at least five
Does the Development Business have a signed agreement with at !east one, non-retail business for purposes
of locating in all or a portion of the building space for a period of not less than five (5) years? If no, the
IDED will not accept this application for development business benefits.
YES - SEE ATTACHED.
If yes, please prov/de the following information for each of the non-retail businesses for which an agreement
has been signed:
Name
Heartland Financial USA, Inc.
1398 Central Avenue
Dubuque, Iowa 52001
· Primary line(s) of business
Multi-Bank Holding Company primarily operating full-service retail banking office in
Dubuque and Lee counties in Iowa; Jo Daviess, Hancock and Winnebago counties in
Illinois; Dane, Green, Sheboygan, Brown and Eau Claire counties in Wisconsin; and
Bemalillo and Curry counties in New Mexico.
The principal services of Heartland through its subsidiaries are FDIC-Insured Deposit
Accounts and related sexvices, and loans to businesses and individuals. The loans
consist primarily of commercial and commercial real estate and residential real estate.
321 of Heartland's customer transparent operations and support functions (Data
Processing, Loan Review, Credit Analysis, Audit, Compliance, Customer Service,
Operations, Human Resources, Finance) are located in Dubuque, Iowa, and will be
occupying the leased property. These operations and support functions serve all of
Heardand's subsidiaries, and are non-retail.
· Expected employment level
Heartiand~s employment level at all locations is 660; in Dubuque, the total is 270; of
which 76 are in the Operations and support area.
Projected employment level in Dubuque by 2005 is 295/96; 2007 is 300/121.
· Square footage to be occupied at this site
Square footage to be occupied at this site is 55,200 sq. ft.
Attach a copy of the signed agreement for each non-retail business 1/smd.
SEE ATTACHED.
Section 3: Additional Business Requirements
Please attach a iong-term strategic plan for the development project described with/n this application,
which shall, at a minimum, include any projected infrastructure needs at tiffs site.
Heartland Financial USA has grown from $852 million in assets at the end of 1997 to $1.644
billion at the end of 2001. Our plan is to double in size again in the next three to five years,
through internal growth; start up Banks in new markets; and acquisitions, which will mean
increased local employment for operations, which are centralized in Dubuque. These
functions currently are located within Dubuque Bank & Truses building. They will be
relocated to the Heartland Operation Center, which will allow departmental growth.
The Company plans to continue providing innovative products and services by attracting
quality employees. One of the major resources for training these employees will be the
Northeast Iowa Community College, using the New Jobs Training Program. The ability of
the Company to attract quality employees who continually demonstrate the high standards
set by the Company is critical in achieving the Company's long-range goals.
The Company will continue to invest in state-of-the-art technology, which over the next five
years will be a key element off Heartland Financial's success. Heartland will be investing
approximately $1 million in this new equipment, and will be adding approximately $3.5
million in new value to the building proposed for the expansion.
What economic benefits will the Development Business bring ro the area?
The City will benefit from the project in that a vacant historical property will be rehabilitated
to standards regulated by the State Historic Preservation Officer, and the U.S. Department of
Interior. The completion of the project will provide new jobs to City residents in the
Enterprise Zone. 20 new positions will be created within the first year, and 45 new jobs
within five years.
Explain why the Development Business would be considered a good business enterprise.
The Development Business has a long histoty as a Dubuque company. Since 1935, the
company has been providing services to City residents~ and its corporate office is located in
the City Enterprise Zone 1.
Please attach an affidavit that states the Development Business has not, within the last five years,
violated state Or federal envirommental and worker safety statutes, rules, and regulations or, if such
violations have occurred, that there were mitigating circumstances or such violations did not seriously
affect public health or safety or the environment~
SEE ATTACHED LETTER.
Explain why Enterprise Zone benefits are needed in order for the project tO proceed.
The Enterprise Zone benefits are needed as an incentive for the Development Business to
expand in the EZ. The cost of locating the expansion in one of the City's industrial parks is
less costly than renovating existing buildings. Therefore, in analyzing various options, the
Company would have chosen a site at the industrial park, except for the fact that EZ benefits
and other incentives are available at this Walsh store location.
In addition to Enterprise Zone benefits, what other financing sources has or will the Development
Business utilize? Please include other local, state, or federal financial assistance received or appl/ed
for by the Development Business for this project.
The City will be providing tax rebates through TIF, a $500,000 CDBG forgivable loan, and
$310,000 in Downtown TIF Loans. The Company is also attempting to utilize the Historical
Tax Credit Program through the State Historic Preservation Office, and the Iowa New Jobs
program through the Northeast Iowa Community College.
Section 4: Additional Commission Requirements
The local Enterprise Zone Commission is authotized to adopt additional eligibility requirements that a
development business within an Enterprise Zone must meet in order to qualify for benefits.
Additional local requirements that may be considered could include, but are not 1Lmited to:
· requirements that preference in hiring during the expansion, construction or rehabilitation of the
building space by the development business be given to individuals and/or construction companies
located within or near the Enterprise Zone;
· wage threshold requirements, job creation threshold requirements or fringe benefits requirements for
employees of construction companies, expanding, constructing or rehabilitating building space for the
development business;
· the types of industries or businesses the commission wishes to occupy space with_in the expanded,
rehabilitated or newly constructed building space;
· wage threshold reqni~ements, job creation threshold requirements or fringe benefits requirements for
employees of companies occupying space within the building space constructed, expanded, or
rehabilitated by the development business;
· local competition issues; or
· any other criteria the commission deems appropriate.
Please list or attach any additional requirements adopted by the local Enterprise Zone Commission and how
the Development Business will meet each requirement.
ATTACHMENTS
Please make sure the following items are included with this application:
Derelopmeot Business
Legal description of the site on which the project will occur.
Detailed map (no larger than 8" x 14") showing the project site in relation to the boundaries of the
certified Enterprise Zone.
If buying a vacant bu/lding~ documentation of the fair market value of the building and hnd. (Required
when the Development Business is claiming a $250,000 exemption of the $500,000 capital investment
requirement.)
Copy of the appraisal of the building. (Required when the Development Business is rehabilitating an
existing budding space and daiming a $250,000 exemption of the $500,000 capital investment
requirement.)
J Copies of the signed agreements for each non-retail business that will occupy the building space described
in this application.
Long-term strategic plan for the development project, which shall, at a mimmum include any prolected
infrastructure needs at the project site.
Affidavit that states the Development Business has not, within the last five years, v/olated state or federal
envkormaental and worker safety statutes, rules, and regulations.
E~te_cpdse Zone Coawaissio~..
~ Proof that the meeting, in which this application was approved, was open to the public (i.e. a public notice
which was published and/or posted).
· / Certified copy of the meeting minutes ~rom the meeting in which this application was approved.
Resolution by the local Enterprise Zone Commission approving this applicationl
city of dubuque, iowa
EZ-2
EZ-1
Central Ave.
Iowa St.
LEASE - BUSINESS PROPERTY
THIS LEASE AGREEMENT, executed in duplicate, made and entered into effective this
Ist day of March, 2002 by and between DUBUQUE BANK & TRUST COMPANY, an Iowa
banking corporation ("Landlord") whose address tbr the purpose of this lease is 1398 Central
Avenue, Dubuque, Iowa 52001 and HEARTLAND FINANCIAL USA, iNC., an Iowa
corporation C'Tanant")whose address for the purpose of this lease is I398 Central Avenue.
Dubuque, Iowa 52001.
1. PREMISES AND TERM. The Landlord. in consideration of the rents herein
reserved and of the agreements and conditions herein contained, on the part of the Tenant to be
kept and performed, [eases unto the Tenant and Tenant hereby rents and leases from Landlord.
according to the terms and provisions herein, the following described real estate, situated in
Dubuque County, Iowa, to wit:
Parcel A.
Tract I The Middle 1/5 of Out Lot 449 in the City of Dubuque,
Iowa, according the United States Commissioners' Map thereof.
The South ½ of the North Middle 1/5 of Out Lot 449 in the City of Dubuque,
Iowa, according to the United States Commissioners' Map thereo£
The North 1/5 and the North V2 of the North Middle 1/5 of Out Lot 449 in the City
of Dubuque, Iowa. according to the United States Commissioners' Map
thereof.
Lot 4 of the South I/2 of Out Lot 456. and
Lot I of Lot 3 of the South ½ of Out Lot 456. in the City of Dubuque, Iowa,
according to the recorded Plats thereof.
Tract II
The Southerly 2/5ths of Out Lot 449 in the City of Dubuque, Iowa according to
the United States Commissioners' Map of the Survey of said Town of
Dubuque,
Iowa.
AND
Parcel B.
Lot 1, lot 2, and, lot 2 of lot 3, all of the Subdivision of the South half of
Out Lot 456, in the City of Dubuque, Iowa. according to the recorded Plats
of said respective Subdivisions.
(herein designated the "Leased Premises"), with the improvements thereon (including,
but not limited to, parking) and ail rights, easements and apppurtences thereto belonging,
for a term of five (5) years, commencing at midnight of the day previous to the first day
of the lease term, which shall be on the 1st day of March, 2002, and ending at midnight on
the last day of the lease term, which shall be on the last day of February, 2007, upon the
condition that the Tenant pays rent therefor, and otherwise performs as in this lease
provided.
2. RENTAL. Tenant agrees to pay to Landlord as rental for said term, as
follows: $9.00 per square foot for the building on the Leased Premises on an annual
basis, or $469,800.00, to be paid in twelve (I2) equal monthly instailments at the rate of
$39, t50.00.per month, in advance, the first rent payment becoming due upon occupancy
by Tenant of the Leased Premises, and the same amount, per month, in advance, on the
first day of each month thereafter, during the term of this Lease. Rental for any partial
month shall be prorated based upon the mtmber of days in such month Tenant actually
occupies the Leased Premises in such partial month.
All sums shall be paid at the address of Landlord. as above designated, or ar such
other place in Iowa, or elsewhere, as the Landlord may, from time to time. previously
designate in writing.
Delinquent payments shall draw interest at 9% per mmum from the due date. until
paid.
3. POSSESSION. Tenant shall be entitled to possession on the first day of the
term of this lease, and shall yield possession to the Landlord at the time and date of the
close of this lease term, except as herein otherwise expressly provided. Should Landlord
be unable to give possession on said date, Tenant's only damages shall be a rebating of
the pro rata rental.
4. USE OF PREMISES. Tenant covenants and agrees during the term of this
lease to use and to occupy the Leased Premises only for banking and professional offices
and related se~wices. For restrictions on such use, see paragraphs 6(c), 6(d) and 11 (b)
below.
5. QUIET ENJOYMENT. Landlord covenants that its estate in said premises is
fee simple and that the Tenant on paying the rent herein reserved and performing all the
agreements by the Tenant to be performed as provided in this lease, shall and may
peaceably have, hold and enjoy the demised premises for the term of this lease free from
molestation, eviction or distttrbance by the Landlord or any other persons or legal entity
whatsoever. (But see paragraph 14, below.)
Landlord, shall have the right to mortgage ail of its right, title, interest in said
premises at any time without notice, subject to this lease.
6. CARE AND MAINTENANCE OF PREMISES. (al Tenant takes said
premises in their present condition except for such repairs and alterations as may be
expressly herein provided.
(b) LANDLORD'S DUTY OF CARE AND MAINTENANCE. Landlord will
keep the roo~ structural part of the floor, walls and other structural parts of the building
in good repair. Landlord shall, until the termination of this lease, at its own expense,
care for and maintain said premises in a reasonably safe and serviceable condition.
Tenant may furnish its own interior and exterior decorating. Tenant wilI not permit or
allow said premises to be damaged or depreciated in value by any act or negligence of the
Tenant, its agents or employees. Without limiting the generality of the foregoing,
Landlord ;vill make necessary repairs to the sewer, the plumbing, the water pipes and
electrical wiring and Tenant agrees to keep faucets closed so as to prevent waste of water
and flooding of premises; to promptly take care of any leakage or stoppage in any of the
water, gas or waste pipes. The Landlord a~ees to maintain adequate heat to prevent
freezing of pipes. Landlord at its own expense may install floor covering and will
maintain such floor covering in good condition. Landlord will be responsible for the
plate glass in the windows of the Leased Premises and for maintaining the parking area,
driveways and sidewalks on and abutting the Leased Premises, if the Leased Premises
include the ground floor, and if the other terms of this lease include premises so
described. Landlord also agrees to remove snow and ice and other obstacles from the
sidewalk on or abutting the premises. Tenant shall make no structural alterations or
improvements without the written approval of the Landlord first had and obtained, of the
plans and specifications therefor.
(c) TENANT'S DUTY OF CARE. Tenant will make no unlawful use of said
premises and agrees to comply with ali valid regulations of the Board of Health, City
Ordinances or applicable municipality, the la~vs of the State of Iowa and the Federal
government, but this provision shall not be construed as creating any duty by Tenant to
members of the general public. If Tenant, by the terms of this lease is leasing premises
on the ground floor, it wilI not allow trash of any kind to accumulate on said premises in
the halls, if any, or the alley or yard in front, side or rear thereof, mad it will remove same
from the premises at its own expense.
7(a) UTILITIES AND SERVICES. Landlord, during the term of this lease,
shall pay, before delinquency, all charges for use of telephone, water, sewer, gas, heat,
electricity, power, air conditioning, garbage disposal, trash disposal and not limited by
the foregoing all other utilities and services of whatever kind and nature which may be
used in or upon the demised premises.
(b) AIR CONDITIONING equipment shall be furnished at the expense of
Landlord and maintenance thereof at the expense of Landlord.
(c) JANITOR SERVICE shall be furnished at the expense of Landlord.
(d) HEATING EQUIPMENT shall be furnished at the expense of Landlord and
maintenance thereof at the expense of Landlord.
8(a) SURRENDER OF PREMISES AT END OF TERM - REMOVAL OF
FIXTURES. Tenant agrees that upon the termination of this lease, it will surrender,
yield up and deliver the Leased Premises in good and clean condition, except the effects
of ordinary wear and tear and depreciation arising from lapse of time. or damage without
fault or liability of Tenant. [See also 1 I(a) and I l(e) below]
(b) Tenant may, at the expiration of the term of this lease, or renewal or renewals
thereof or at a reasonable time thereafter, if Tenant is not in default hereunder, remove
any fixtures or equipment which said Tenant has installed in the Leased Premises.
providing said Tenant repairs any and all damages caused by removal.
(c) HOLDING OVER. Continued possession, beyond the expiratory date of the
term of this lease, by the Tenant, coupled with the receipt of the specified rental by the
Landlord (and absent a written agreement by both parties for an extension of this lease, or
for a new lease) shall constitute a month to month extension of this lease.
9. ASSIGNMENT AND SUBLETTING. Any assignment of this lease or
subletting of the premises or any part thereof, without the Landlord's written permission
shall, at the option of the Landlord, make the rental for the balance of the lease term due
and payable at once. Such written permission shall not be unreasonably withheld.
10.(a) ALL REAL ESTATE TAXES, except as may be otherwise expressly
provided in this paragraph 10, levied or assessed by lawful authority (but reasonably
preserving Landlord's rights of appeal) against said real property shall be timely paid by
the parties in the following proportions: by Landlord 100%; by Tenant 0%.
(b) Increase in such taxes, except as in the next paragraph provided, above the
amount paid during the base year of July 1,200l to June 30. 2002 (base year if and as
may be defined in this paragraph) shall be paid by Landlord, 100%: by Tenant
(c) Increase in such taxes caused by improvements of Temmt shall be paid by
Landlord 100%; by Tenant 0%.
(d) PERSONAL PROPERTY TAXES. Tenant agrees to timely pay all taxes.
assessments or other public charges levied or assessed by lawful authority ~but
reasonably preserving Tenant's rights of appeal) against its personal property on the
premises, during the term of this lease.
(e) SPECIAL ASSESSMENTS. Special assessments shall be timely paid by the
parties in the following proportions: by the Landlord 100%; by the Tenant 0%.
11. INSURANCE. (a) Landlord and Tenant will each keep its respective
property interests in the premises and its liability in regard thereto, and the personal
property on the pmmises, reasonably insured against hazards and casualties: that is. fire
and those items usually covered by extended coverage; and Tenant will procure and
deliver to the Landlord a certification from the respective insurance companies to that
effect. Such insurance shall be made payable to the parties hereto as their interests may
appear, except that the Tenant's share of such insurance proceeds are hereby assigned and
made payable to the Landlord to secure rent or other obligations then due and owing
Landlord by Tenant. [See also I l(e) below]
(b) Tenant will not do or omit the doing of any act which would vitiate any
insurance, or increase the insurance rates in force upon the real estate improvements on
the premises or upon any personal property of the Tenant upon which the Landlord by
law or by the terms of this lease, has or shall have a lien.
(c) WAIVER OF SUBROGATION. Notwithstanding any other provision in
this lease to the contrary, both Landlord and Tenant herein hereby waive any and all
rights of' recovery, claim, action or causes of action against each other, their agents,
officers and employees, for any loss or damage that may occur to the Leased Premises,
including improvements thereon, or to any property of either party maintained on the
Leased Premises by reason of fire, casualty, the elements, or any other cause which could
be insured against under the terms of standard fire and extended overage insurance
policies, regardless of canse or origin and regardless of the negligenc~ of th'e parties
hereto, ttieir agents, officers, invitees and employees. Each of the parties hereto shall
secure such a waiver of subrogation endorsement from its respective insurance carriers
and provide, upon request, a copy of such insarance endorsement to the other party.
(d) Tenant further agrees to comply with recommendations of Iowa Insurance
Service Bureau and to be liable for and to promptly pay, as if current rental, an~ increase
in insurance rates on said premises and on the building of which said premises are a parr.
due to increased risks or hazards, resulting from Tenant's use of the premises otherwise
than as herein contemplated and agreed.
(e) INSURANCE PROCEEDS. Landlord shall settle and adjust any claim
against any insurance company under its said policies of insurance for the premises, and
said insurance monies shall be paid to and held by the Landlord to be used in payment for
cost of repairs or restoration of damaged building, if the destruction is only partial. [See
also 1 l(a), above.]
12. INDEMNITY AND LIABILITY INSURANCE. Landlord will protect.
indemnify and save harmless the Tenant from and against any and ali loss, costs,
damage and expenses occasioned by, or arising out of, any accident or other occurrence
causing or inflicting injury and/or damage to any person or property, happening or done.
in, upon or about the Leased Premises, or due directly or indirectly to the tenancy, use or
occupancy thereof, or any part thereof by the Tenant or any person claiming through or
under the Tenant. The Landlord further covenants and agrees that it ;vill at its own
expense procure and maintain casualty and liability insurance in a responsible company
or companies anthorized to do business in the State of Iowa, in amotmts not less than one
million dollars for any one person injured, and one million dollars for any one accident_
and xvith limits in the amount of replacement value for property dmnage, protecting tl~e
Landlord and Tenant against such claim, damages, costs or expenses on account of injury
to any person or persons, or to any property belonging to any person or persons, by
reason of such casualty, accident or other happening on or about the demised premises
during the term thereof.
t 3. FIRE AND CASUALTY. PARTIAL DESTRUCTION OF PREMISES.
(a) In the event of a partial destruction or damage of the Leased Premises, which is a
business interference, that is, which prevents the conducting of a normal business
operation and which damage is reasonably repairable within sixty (60) days after its
occurrence, this lease shall not terminate but the rent for the Leased Premises shall abate
during the time of such business interference. In the event of partial destruction.
Landlord shall repair such damages within sixty (60) days of its occurrence unless
prevented from so doing by acts of God, the elements, the public enemy, strikes, riots.
insurrection, government regulations, city ordinances, labor, material or transportanon
shortages, or other causes beyond Landlord's reasonable control.
(b) ZONING. Should the zoning ordinance of the city or municipality in which
this property is located make it impossible for Landlord, using diligent and timely effort
to obtain necessary permits and to repair and/or rebuild so that Tenant is not able lo
conduct its business on these premises, then such partial destruction shall be treated as a
total destruction as in the next paragraph provided.
(c) TOTAL DESTRUCTION OF BUSINESS USE. In the event of a
destruction or damage of the, Leased Premises including the parking area (if a parking
area is a part of the subject matter of this lease) so that Tenant is not able to conduct its
business on the premises or the then current legal use for which the premises are being
used and which damages cannot be repaired within sixty (60) days this lease may be
terminated at the option of either the Landlord or Tenant. Such termination in such event
shall be effected by written notice of one party to the other, within twenty (20) days after
such destruction. Tenant shall surrender possession within ten (I0) days after such notice
issues, and each party shall be released from all future obligations hereunder, Tenant
paying rental pro rata only to the date of such destruction. In the event of such
termination of this lease, Landlord at its option, may rebuild or not, according to its own
wishes and needs.
14. CONDEMNATION. (a) DISPOSITION OF AWARDS. Should the
whole or any part of the demised premises be condemned or taken by a competent
authority for any public or quasi-public use or purpose, each party shall be entitled to
retain, as its own property, any award payable to it. Or in the event that a single entire
award is made on account of the condemnation, each party will then be entitled to tal<e
such proportion of said award as may be fair and reasonable.
(b) DATE OF LEASE TERMINATION. If the whole of the demised premises
shall be so condemned or taken, the Landlord shall not be liable to the Tenant except and
as its rights are preserved as in para~aph 14(a) above.
15. TERMINATION OF LEASE AND DEFAULTS OF TENANT. (a)
TERMINATION UPON EXPIRATION OR UPON NOTICE OF DEFAULTS. This
lease shall terminate upon expiration of the demised term; or if this lease expressly and in
writing provides for any option or options, and if any such option is exercised by the
Tenant, then this lease will terminate at the expiration of the option term or terms. Upon
default in payment of rental herein or upon any other default by Tenant in accordance
with the terms and provisions of this lease, this lease may at the option of the Landlord be
cancelled and forfeited, PROVIDED, HOWEVER, before any such cancellation and
forfeiture except as provided in 15(b) belo~v, Landlord shall give Tenant a written notice
specifying the default, or defaults, and stating that this lease will be cancelled and
forfeited ten (10) days after the giving of such notice, unless such default, or defaults, are
remedied within such grace period. (See paragraph 22, below.) As an additional optional
procedure or as an alternative to the foregoing (and neither exclusive of the other)
Landlord may proceed as in paragraph 2 l, below, provided.
(b) BANKRUPTCY OR INSOLVENCY OF TENANT. tn the event Tenant is
adjudicated a bankrupt or in the event of a judiciai sale or other transfer of Tenant's
-leasehold interest by reason-by any bankruptcy or insolvency proceedings or by other
operation of law. but not by death, and such bankruptcy, judicial sale or transfer has not
been vacated or set aside within ten (10) days from the giving of notice thereof by
Landlord to Tenant, then and in any such events, Landlord may, at its option,
immediately terminate this lease, re-enter said premises, upon giving of ten (10) days'
written notice by Landlord to Tenant, all to the extent permitted by applicable law.
(c') In (a) and (b) above, waiver as to any default shall not constitute a waiver of
any subsequent default or defaults.
(d) Acceptance of keys, advertising and re-renting by the Landlord upon the
Tenant's defhult shall be construed only as an effort to mitigate damages by the Landlord,
and not as an agreenqent to terminate this lease.
16. RIGHT OF EITHER PARTY TO MAKE GOOD ANY DEFAULT OF
THE OTHER. If default shall be made by either party in the performance of, or
compliance with, any of the terms, covenants or conditions of this lease, mad such default
shall have continued for thirty (30) days after written notice thereof from one party to the
other, the person aggrieved, in addition to all other remedies now- or hereafter provided
by law. may, but need not, perform such term, covenant or condition, or make good such
default and any amount advanced shall be repaid forthwith on demand, together with
interest at the rate of 9% per am~um, from date of advance.
17. SIGNS. (a) Tenant shall have the right and privilege of attaching, affixing,
painting or exhibiting signs on the Leased Premises, provided only (1) that any and all
signs shall comply with the ordinances of the city or municipality in which the property is
located and the laws of the State of Iowa; (2) such signs shall not change the structure of
the building; f3) such signs if and when taken down shall not damage the building; and
(4) such signs shall be subject to the written approval of the Landlord, which approval
shall not be tmreasonably withheld.
18. MECHANIC'S LIENS. Neither the Tenant nor anyone claiming by,
through, or under the Tenant, shall have the right to file or place any mechanic's lien or
other lien of any kind or character whatsoever, upon said premises or upon any building
or improvement thereon, or upon the leasehold interest of the Tenant therein, and notice
is hereby given that no contractor, sub-contractor, or anyone else who may furnish any
material, service or labor for any building, improvements, alteration, repairs or any part
thereof, shall at any time be or become entitled to any lien thereon, and for the further
security of the Landlord, the Tenant covenants and agrees to give actual notice thereof in
advance, to any and all contractors and sub-contractors who may furnish or agree to
furnish any such material, service or labor.
19. LANDLORD'S LIEN AND SECURITY INTEREST. Said Landlord shall
have in addition to the lien given by law, a security interest as provided by the Uniform
Commercial Code of Iowa, upon all personal property and ali substitutions therefor, kept
and used on said premises by Tenant. Landlord may proceed at law or in equity with any
remedy provided by law or by this lease for the recovery of rant, or for termination of this
lease because of Tenant's default in its performance.
20. SUBSTITUTION OF EQUIPMENT, MERCHANDISE, ETC. (a) The
Tenant shall have the right, from time to time, during the term of this lease, or renewaI
thereof, to sell or otherwise dispose of any personal property of the Tenant situated on the
said demised premises, when in the judgment of the Tenant it shall have become
obsolete, outworn or unnecessary in connection with the operation of the business on said
premises; provided, however, that the Tenant shall, in such instance (unless no
substituted article or item is necessary) at its own expense, substitute for such items of
personal property so sold or otherwise disposed of, a new or other item in substitution
thereof; in like or greater value and adopted to the affixed operation of the business upon
the demised premises.
(b) Nothing herein contained shall be construed as denying to Tenant the right to
dispose of inventoried merchandise in the ordinary course of the Tenant's trade or
business.
21. RIGHTS CUMULATIVE. The various rights, powers, options, elections
and remedies of either party, provided in this lease, shall be construed as cumulative and
no one of them as exclusive of the others, or exclusive of any rights, remedies or
priorities allowed either party by law', and shall in no way affect or impair the right of
either party to pursue any other equitable or legal remedy to which either party may be
entitled as long as any default remains in any way unremedied, unsatisfied or
undischarged.
22. NOTICES AND DEMANDS. Notices as provided for in this lease shall be
given to the respective parties hereto at their respective addresses designated on page one
of this lease unless either party notifies the other, in writing, of a different address.
Without prejudice to any other method of notifying a party in writing or making a
demand or other communication, such message shall be considered given under the
terms of this lease when sent, addressed as above designated, postage prepaid, by
registered or certified mail, return receipt requested, by the United States mail and so
deposited in a United states mail box.
23. PROVISIONS TO BIND AND BENEFIT SUCCESSORS, ASSIGNS.
ETC. Each and every, covenant and agreement herein contained shall extend to and be
binding upon the respective successors, heirs, administrators, executors and assigns of the
parties hereto; except that if any part of this lease is held in joint tenancy, the successor in
interest shall be the surviving joint tenant.
24. CHANGES TO BE IN WRITING. None of the covenants, provisions.
terms or conditions of this lease to be kept or performed by Landlord or Tenant shall be
in any manner modified, waived or abandoned, except by a written instrument duly
signed by the parties and delivered to the Landlord and Tenant. This lease contains the
whole agreement of the parties.
25. CONSTRUCTION. Words and phrases herein, including acknowlecigment
hereof, shall be construed as in the singular or plural number, and as masculine, feminine
or neuter gender according to the context.
26. ENVIRONMENTAL REPRESENTATION AND INDEMNITY.
(a) Landlord, to Landlord's knowledge based upon reasonable inquiry, represents and
warrants that there is no liability in connection with the Leased Premises by reason of the
presence in or beneath the real estate of solid waste, hazardous substances, underground
storage tanks, wells or any other conditions which may lead to groundwater
contamination, including those substances defined to be hazardous in 42 U.S. Code
Section 9601 et seq. or the laws of the State of Iowa or any political subdivision thereof.
(b) Tenant hereby irrevocably agrees to indemnify and hold Landlord harmless
from and against, and shall reimburse Landlord for, any and all losses, claims, liabilities.
damages, injuries (to person, property, natural resources or otherwise), costs, expenses.
actions or causes of action, arising in connection with the release or presence in or
beneath the real estate of solid waste, haz~dous substances, underground storage tanks.
wells or any other conditions which may lead to groundwater contamination or any
environmental contamination, including those substances defined to be hazardous in 42
U.S. Code Section 9601 et. seq. with the laws of the State of Iowa or any political
subdivision thereofrelating to Tenant's business operations at the Leased Premises.
27. AMERICAN'S WITH DISABILITIES ACT. Landlord shall be solely
responsible for, and agrees to indemnify and hold Tenant harmless from, any and ail
repairs, additions, claims, fines, penalties, fees or any other costs or obligation in any way
imposed by or required by or related to the American's with Disabilities Act in
connection with the Leased Premises.
28. OPTIONS TO RENEW. Tenant shall have the option to renew this Lease
for five (5) additional five (5) year terms. This option to renew shall be atttomatic unless
Tenant notifies Landlord in writing not less than 180 days before the termination of the
then current lease term of Tenant's election to not continue to lease the Leased Property
for the additional five (5) year term.
29. RENTAL ADJUSTMENTS: .For the rene~val period commencing the Ist
day of March, 2007, through the last day of February, 2012, and any renewal period, the
monthly rental to be paid by Lessee in advance on the 1st day of each and every month
shall be adjusted upward, but not downward, fi.om the base period rental by the same
percentage increase as the Consumer Price Index for the United States - All Urban
Consumers North Central Urban Size D on All Items prepared and published by the
Bureau of Labor Statistics of the United States Department of Labor (subject to
modification, amplification and changes in method of computing same as shall be made
by said Bureau from time to time) shall show an increase for the five years immediately
preceding said five year renewal term as against and compared with the previous five
year term hereof.
IN WITNESS WHEREOF, the parties hereto have duly executed this lease in
duplicate the day and year first above written.
DUBUQUE BANK & TRUST COMPANY,
Its President
Its Secretary
STATE OF IOWA )
) SS:
COUNTY OF DUBUQUE )
On this 25TH. day of April, 2002, before me, the undersigned, a Notary Public in and
for the State oftowa, personally appearedgoHN K. SCFZ{IDT and LOIS K, PEARCE , to
me personally known, who being by me duly sworn, did say that they are the
PRESIDENT and SECRETARY respectively, of the corporation executing the
within and ibregoing instrument; that said instrument was signed on behalf of the corporation by
authority of its Board of Directors; andthat JOHN K. SCH~r_DT and LOIS K. PEARCE
as officers acknowledged the execution of the foregoing instrument to be the voluntary act and deed
of the corporation, by it and by them voluntarily executed.
-~ [ COMMISSION NO. 222782 I
.5~.~ ~. \<. '¢&c,-~ ~,. ~,-,~ ~-' /,~o..~ ~,~,o~_1 t~ coM~;ss~oN ~tR~s II
'-'Notary Public in and r the
State of Iowa
H~D FINANCIAL
Its Secret~rTv / ' '
STATE OF IOWA
)
) SSi
COUNTY OF DUBUQUE )
On this 25Ttt day of April. 2002, before me. the undersigned, a Notary Public in and
for the State of Iowa, personally appeared LTrqI, I B. FULLER and LOIS K. PEARCE , to
me personally known, who being by me duly sworn, did say that they are the
PRESIDENT and SECRETARY respectively, of the corporation executing the
within and foregoing instmmem; that said instrument was signed on behalf of the corporation by
authority of its Board of Directors; and that L'Zlql, I B. FULLER and LOIS K. PEARCE
as officers acknowledged the execution of the foregoing instrument to be the voluntary act and deed
of the corporation, by it and by them voluntarily executed.
! ¢,~. ,~ ISUSAN K. KLOPFEN~S~EIN!
I 'J!]~* I t~ COMMISSION EXP[[:!2_.3
--,q4._f,.~x,~ ! ~'~ll~ I COMMISSION NO. 22z~,?
N~tary ?ublic in and for the State of Iowa
G:\WPDOCS\DONNAB\DOCS\Dubuque Bank & Trust Company Heartland Financial Lease - Business Propcrty.wpdDATE \~ "MMMM
d, yyyy"
DUBUQUE BANK& TRUST
MEMBER HEARTLAND FHVANC/AL USA, INC.
f398CENTRALAV£NIJE · P.O. OOX775 · OUOUOU~ A52004-0778
PHONE/553 589-2000 · TOLL FREE ~001 397-2000 · FAX/5~3 589-201
April 24, 2002
Iowa Department of Economic Development
Division of Business Development
200 East Grand Avenue
Des Moines, IA 50309
Please consider this letter an affidavit that Dubuque Bank and Trust Company has not, within the last five
years, violated state or federal environmental and worker safety statutes, rules and regulations, or if such
violations have occurred, there were mitigating circumstances or such violations did not seriously affect
public health or safety or the envirgnment.
DUBUQUE BANK AND TRUST\COMPANY
ATTACHMENT B
Enterprise Zone Commission Resolution Approving the
Development Business' Enterprise Zone Application
CITY OF DUBUQUE, IOWA
ENTERPRISE ZONE COMMISSION
RESOLUTION '~'-02
A RESOLUTION APPROVING THE FILING OF AN APPLICATION WITH
THE IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT REQUESTING
ENTERPRISE ZONE BENEFITS ON BEHALF OF DUBUQUE BANK AND
TRUST/HEARTLAND FINANCIAL USA
Whereas, the State of Iowa Department of Economic Development (IDED) is accepting
applications from eligible businesses pursuant to the authority of House File 724, Enterprise
Zone Legislation; and
Whereas, the City o£Dubuque, Iowa has two certified Enterprise Zones; and
Whereas, the City's Enterprise Zone Commission has been:created by City Ordinance to
review applications for tax incentives and assistance based on criteria specified by law and to
transmit its recommendation to the IDED; and
Whereas, the City's Enterprise Zone Commission has reviewed an application from
Dubuque Bank and Trust/Heartland Financial USA and has found the development business
eligible to apply for Enterprise Zone benefits.
NOW, THEREFORE, BE IT RESOLVED BY THE ENTERPRISE ZONE
COMMISSION OF THE CITY OF DUBUQUE, IOWA:
Section 1. That the Dubuque Bank and Trust/Heartland Financial USA application
for Enterprise Zone benefits is approved.
Section 2. That Dubuque Bank and Trust/Heartland Financial USA will invest
approximately $4 million in Enterprise Zone 1 as part of their building renovation project.
Section 3. That the Chairperson is hereby authorized and directed to execute, on
behalf of the Enterprise Zone Commission, the joint application for Enterprise Zone benefits.
Passed, approved and adopted this 25th day of April, 2002.
Chair
F:\USERSkPmyhre\WPDOCSkt~ZSDB &Tres.doc
* TR~NS~OTION REPORT
, RPR-23-02 TUE 03:53 PM ~
* BRO~DC~ST *
~ DBTE SThRT REOEIVER TX TIME P~GES TYPE NOTE M~ DP ~
* gPR-23 03:50 PM FOX 40 47" 1 SEND OK 688 ~
* 03:51PN TH 26" 1 SEND 0K 688 ~
~ 03:52 PM NDBO 26" I SEND OK 888 ~
* TOTfiL: 28 9S PfiGES: 4 ~
DATE:
TIME:
PLACE:
City of Dubuque
PUBLIC NOTICE OF MEETING
ENTERPRISE ZONE COMMISSION
Thursday~ April 25, 2002
7:30 a.m,
Conference Room B, City Hall
~10 W, 13th Street
Dubuque, Iowa 52001
above.N°tice is hereby given that the above idcmtified governmental body will meet at the time, date ,'md place as set fbrfl~
'l'h¢ tentative agenda Cer lhe meeting is a.q Follows:
CALL TO ORDER
AFFIDAVIT OF COMPLI)kNCE
MINUTES
March 15, 2002
APPLICATIONS
Heartland Financial USA
Former Walsh Store Renovation
City of Dubuque
PUBLIC NOTICE OF MEETING
DATE:
TIME:
PLACE:
ENTERPRISE ZONE COMMISSION
Thursday, April 25, 2002
7:30 a.m.
Conference Room B, City Hall
50 W. 13th Street
Dubuque, Iowa 52001
Notice is hereby given that the above identified governmental body will meet at the time, date and place as set forth
above.
The tentative agenda for the meeting is as follows:
CALL TO ORDER
AFFIDAVIT OF COMPLIANCE
MINUTES
March 15, 2002
APPLICATIONS
Heartland Financial USA
Former Walsh Store Renovation
(materials to be provided)
ITEMS FROM PUBLIC
ITEMS FROM COMMISSION
ITEMS FROM STAFF
ADJOURNMENT
This notice is given pursuant to Chapter 21, Code of Iowa and applicable local regulations of the City of Dubuque
and/or the governmental body holding the meeting.
[~l~n~lent Planne~4~r
NOTICE
Visually or hearing impaired persons needing assistance or persons with special accessibility needs who wish to
attend the meeting should contact the CED Department at (563)5894393 or the Human Rights Department at
(563)5894193 (TDD Number) at least forty-eight (48) hours prior to the meeting.
ENTERPRISE ZONE COMMISSION
City of Dubuque, Iowa
MINUTES
DATE:
TIME:
PLACE:
COMMISSION:
STAFF:
April 25, 2002
7:30 A.M.
Conference Room B, City Hall
50 West 13th Street, Dubuque, Iowa 52001
Present: Doug Buswell, Doug Stillings, Dan LoBianco. Andrea Muntz
Rick Stein, Mike Van Milligen and Dan White
Absent: Dave Baker
Bill Baum, Pamela Myhre
CALL TO ORDER
The meeting was called to order at 7:30 a.m. by Commission Chair Rick Stein. Staff
certified that the meeting was being held in compliance with the Iowa Open Meetings
Law.
MINUTES
Stillings moved and LoBianco seconded a motion to approve the minutes of March 15.
2002. Motion passed unanimously.
BUSINESS
DB&T/Heartland Financial USA Application
Baum provided bac. kground information regarding the "unique" application for a
Development BusinesS. He stated that State law was changed last year to allow a
developer to renovate a building and benefit from EZ incentives without the requirement
for jobs or employee benefits. He indicated that the rush to approve the DB&T
application was due to new changes to State law which will go into effect April 30, 2002
that now require that the developer and the business leasing space in the renovated
building not be under common ownership or management. Unfortunately, that would
impact the DB&T/Heartland Financial USA project. He indicated that IDED staff had
notified the City regarding the upcoming changes in State law in order to expedite the
current application.
Stein referenced the eligibility checklist that indicated that the application did meet all
requirements for a Development Business.
Baum reviewed the application, noting that the company will be creating 45 new jobs
within the next 5 years. He then introduced John Schmidt and Nelson Klavitter from
DB&T. Both thanked the Commission and staff for assistance with the project. Rick
Dickinson, GDDC Executive Director, was also thanked for his encouragement to select
the downtown site instead of locating at the Technology Park. Klavitter described the
project using a poster board illustration of the building renovation. He indicated that the
project would also be applying for historic tax credits. Schmidt explained the
commitment to the downtown site was at a cost that exceeded by $1 million the cost to
develop a new building in the Technology Park. That cost difference made receiving
the EZ incentives crucial to the success of the project.
Buswell asked for an explanation of the relationship between DB&T and Heartland
Financial USA as owner versus tenant. He stated that it was great to see continued
downtown development.
Van Milligen stated that the City was very excited by the project, especially as it sits
across the street from City Hall and will be a wonderful improvement to the immediate
neighborhood.
LoBianco congratulated the company for going above and beyond the basics of building
renovation. He said the project would support the redevelopment of the Upper Main
District, providing one of the new "bookends" to the district--with the newly renovated
Iowa Inn being the other.
Stillings noted that while he must abstain from voting on the project due to his
connection to DB&T, he wanted to say that he has heard much enthusiasm and
excitement about the project in the neighborhood. As a representative from the
downtown census tracts, he said that the project is being discussed very positively at
various venues in the neighborhood.
Stein noted that Heartland Financial USA impacts the community by creating spin-off
jobs in other non-banking sectors of the local economy in addition to the new
expansion.
Public input was solicited by the Chair. Rick Dickinson thanked DB&T for their
commitment to the project and downtown and also thanked the City for providing
options for the business when it was making its decision on a new expansion location.
The project, he Stated, was great news for Dubuque.
Motion by LoBianco, seconded by both Buswell and Van Milligen, to approve the
application. The following vote was taken:
Aye:
Nay:
Abstain:
Buswell, LoBianco, Muntz, Stein, Van Milligen and White
None
Stillings
ADJOURNMENT
Meeting adjourned at 7:50 a.m.
Approved
F:\USERS\Pm~hre\WPDOCS\EZ~MIN4-25-02.doc
Chairperson
ATTACHMENT C
City Council Resolution Authorizing Property Tax
Exemptions for the Enterprise Zone
ATTACHMENT 4
RESOLUTION 449 -97
A RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION WITH THE
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT REQUESTING
ENTERPRISE ZONE CERTIFICATION.
Whereas. the State of Iowa Department of Economic Development (IDED) is taking applications
for a new Enterprise Zone programthat provides benefits and incentives for redevelopment and
reinvestment in areas ora community that meet certain eligibility criteria; and
Whereas, the City of Dubuque, Iowa has identified an area which meets the eligibility
requirements; and
Whereas, the City Council of Dubuque, Iowa has determined that said designation and
certification of an Enterprise Zone will benefit the local economy through the creation of new investment
and new jobs for area residents; and
Whereas, the City of Dubuque, Iowa is eligible to submit an application for the Enterprise Zone
program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the filing of an application for Enterprise Zone Certification is approved.
Section 2. That the schedule of value-added property tax exemption for this Enterprise
Zone shall be One Dollar ($1.00) per year for ten years.
Section 3. That the Mayor is hereby authorized and directed to execute, on behalf of the
City Council of the City of Dubuque, Iowa, the appropriate Enterprise Zone application.
Section 4. That the City Manager is directed to submit the application to the Iowa
Department of Economic Development together with such documents as may be required.
Section 5. That, once the Enterprise Zone is certified, a copy of this resolution and all
supporting documents be forwarded to the City Assessor.
Passed, approved and adopted this 20'ch day of October, 1997.
Attest: /7 C~
Mary N/Davis
City Cfferk
/ Terrafice ~)/~gan
// Mayor
pam~enrerprise.res