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Dubuque Stamping & Manufacturing, Inc. - Development AgreementTO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Expansion of Dubuque Stamp at the Jackson Street Facility DATE: February 24, 2009 Economic Development Director Dave Heiar is recommending approval of a Development Agreement with Dubuque Stamping & Manufacturing, Inc., who will be expanding their operation at the Jackson Street facility, adding 10 new jobs and retaining 161 positions. 1) The company must expand its manufacturing facility along with necessary site work and equipment as contemplated in this Agreement at an estimated cost of approximately $3,000,000. 2) Dubuque Stamp must retain 161 positions and create 10 new jobs within three years. The 171 jobs must be retained for the length of the agreement. 3) The Company will receive a 10-year TIF in the form of a yearly tax rebate on the value of the assessable improvements. concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director THE CITY OF Dubuque DUB E 1 1 Masterpiece on the Mississippi 2007 DATE: February 18, 2009 TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Directo SUBJECT: Expansion of Dubuque Stamp at the Jackson Street Facility INTRODUCTION This memorandum presents for City Council consideration a Resolution approving a Development Agreement with Dubuque Stamping & Manufacturing, Inc., who will be expanding their operations at the Jackson Street Facility. The attached Resolution approves the Development Agreement. BACKGROUND City staff has worked with the Greater Dubuque Development Corporation and Dubuque Stamp on an expansion at the Jackson Street Facility. Dubuque Stamp intends to expand its manufacturing functions. They have committed to retaining the current 161 positions, and adding at least 10 new jobs at the facility. Dubuque Stamp has applied for and received approval of Enterprise Zone benefits for the project. The State has committed to providing an investment tax credit, sales and use tax rebate, and a research and development tax credit. DISCUSSION The proposed Development Agreement provides for a tax rebate to the Company. A 10-year tax rebate has been offered to the company to assist in their expansion. The rebate is a form of tax increment financing without issuing a tax increment finance bond to loan monies to the company upfront. As the company pays its future tax obligation on the new improvements, the City will rebate 100% (minus debt service and the School District Physical Plant and Equipment Levy) of the new TIF increment for 10 years. The attached Development Agreement establishes the terms of the agreement with Dubuque Stamp. The key elements of the agreement include the following: 1) The company must expanded its manufacturing facility along with necessary site work and equipment as contemplated in this Agreement at an estimated cost of approximately $3,000,000. 2) Dubuque Stamp must retain 161 positions and create 10 new jobs within three years. The 171 jobs must be retained for the length of the agreement. 3) The Company will receive a 10 year TIF in the form of a yearly tax rebate on the value of the assessable improvements. Additional terms and conditions of the disposition of the property are included within the attached Development Agreement. RECOMMENDATION I recommend that the City Council approve the attached Development Agreement with Dubuque Stamp for the purpose of expanding their operations at the Jackson Street Facility. This action supports the Council's objectives to assist a local business expand its operations and create new jobs. ACTION STEP The action step for the City Council is to adopt the attached Resolution. F:\USERS\DHeiar\Dubuque Stamp\Council memo to MVM.doc RESOLUTION NO. 80-09 A RESOLUTION APPROVING A DEVELOPMENT AGREEMENT FOR THE EXPANSION OF DUBUQUE STAMPING & MANUFACTURING, INC. AT THE JACKSON STREET FACILITY. Whereas, it is the determination of this Council that approval of the Development Agreement for the expansion of Dubuque Stamp's operations in Dubuque according to the terms and conditions set out in the Development Agreement is in the public interest of the City of Dubuque. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Development Agreement with Dubuque Stamp is hereby accepted and approved. Section 2. That the Mayor is hereby authorized to execute, on behalf of the City Council of the City of Dubuque, Iowa, the attached Development Agreement with Dubuque Stamp. Passed, approved and adotped this 2nd day of March, 2009. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk m ism I II 1111 I I Doc ID• 010486480001 Type GEN Kind: AGREEMENT Recorded: 05/14/2020 at 04:21:28 PM Fee Amt: $7.00 Page 1 of 1 Dubuque County Iowa John Murphy Recorder Fi1e2020-00006248 Prepared by: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 Return to: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 MEMORANDUM OF DEVELOPMENT AGREEMENT A Development Agreement by and among the City of Dubuque, Iowa, an Iowa municipal corporation, Dubuque Stamping & Manufacturing, Inc., and R&S Realty, LLC, an Iowa limited liability, was made regarding the following described premises: Lot D in Liebe's Subdivision No. 2 in the City of Dubuque, Dubuque County, Iowa; and Lot 1-1, Lot 2, Lot 3, and Lot 4 all in Liebe's Subdivision No. 3 in the City of Dubuque, Dubuque County, Iowa The Development Agreement is dated for reference purposes the 2nd day of March, 2009, and contains covenants, conditions, and restrictions concerning the sale and use of said premises. This Memorandum of Development Agreement is recorded for the purpose of constructive notice. In the event of any conflict between the provisions of this Memorandum and the Development Agreement itself, executed by the parties, the terms and provisions of the Development Agreement shall prevail. A complete counterpart of the Development Agreement, together with any amendments thereto, is in the possession of the City of Dubuque and may be examined at its offices as above provided. Dated this 13 ''day of May, 2020. CITY OF DU By: QUE, IOWA Barry A. Lindahl, Senior Counsel STATE OF IOWA : ss: DUBUQUE COUNTY On this ) ?i day of May, 2020, before me, a Notary Public in and for the State of Iowa, in and for said county, personally appeared Barry A. Lindahl, to me personally known, who being by me duly sworn did say that he is the Senior Counsel of the City of Dubuque, that said instrument was signed on behalf of City of Dubuque and the Senior Counsel acknowledged said instrument to be his free act and deed on behalf of the (City of Dubuque. A',L, aek6,6,1,y. Notary PubliF S to of Iowa TRACEY L. STECKLEfN Commission Number 716015 My Comm Exp. kl 11 ' , DEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF DUBUQUE, IOWA, DUBUQUE STAMPING & MANUFACTURING, INC., AND R&S REALTY, LLC THIS DEVELOPMENT AGREEMENT, dated for reference purposes the day of 2009, is made and entered into by and among the City of Dubuque, Iowa ("City"), Dubuque Stamping & Manufacturing, Inc. ("Developer"), and R&S Realty, LLC, an Iowa Limited Liability Company ("Owner"). Whereas, Owner is the owner of the following described real estate (the Property): Lot D in Liebe's Subdivision No. 2 in the City of Dubuque, Dubuque County, Iowa; and Lot 1-1, Lot 2, Lot 3 and Lot 4 all in Liebe's Subdivision No. 3 in the City of Dubuque, Dubuque County, Iowa located at 3190 Jackson Street in the City of Dubuque; and WHEREAS, the Property is located in the Dubuque Brewing & Malting Urban Renewal District (the District) which has been so designated by City Council Resolution 301-08 as a blight area (the Project Area) as defined by Iowa Code Chapter 403 (the Urban Renewal Law); and WHEREAS, Developer desires to make a capital investment in building improvements, equipment, furniture and fixtures in the Property; and WHEREAS, pursuant to Iowa Code Section 403.6(1), and in conformance with the Urban Renewal Plan for the Project Area adopted on September 2, 2008, City has the authority to enter into contracts and agreements to implement the Urban Renewal Plan, as amended, and is available for review at the Dubuque City Clerk's Office (the Urban Renewal Plan); and WHEREAS, the City Council of the City of Dubuque believes it is in the best interests of City to encourage Developer in the development of the Property by providing certain incentives as set forth herein. NOW, THEREFORE, the parties to this Development Agreement, in consideration of the promises, covenants and agreements made by each other, do hereby agree as follows: SECTION 1. REPRESENTATIONS AND WARRANTIES 1.1 Representations and Warranties of City In order to induce Developer to enter into this Agreement, City hereby represents and warrants to Developer that to the best of City's knowledge: (1) City has duly obtained all necessary approvals and consents for its execution, delivery and performance of this Agreement and that it has full power and authority to execute, deliver and perform its obligations under this Agreement. This Agreement, upon execution and delivery by the City (assuming due authorization, execution and delivery by the Developer), is a valid and legally binding instrument of City, enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights generally. (2) City shall exercise its best efforts to cooperate with Developer in the development process. (3) City shall exercise its best efforts to resolve any disputes arising during the development process in a reasonable and prompt fashion. (4) The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a violation or breach of, the terms, conditions or provisions of the charter of City, any evidence of indebtedness, agreement or instrument of whatever nature to which City is now a party or by which it or its property is bound, or constitute a default under any of the foregoing. (5) There are no actions, suits or proceedings pending or threatened against or affecting City in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the financial position or operations of City or which affects the validity of the Agreement or City's ability to perform its obligations under this Agreement. 1.2 Representations and Warranties of Developer and Owner Developer and Owner make the following representations and warranties: (1) Developer is an Iowa corporation and Owner is an Iowa limited liability company and Developer and Owner both are duly organized and validly existing under the laws of the State of Iowa, and have all requisite power and authority to own and operate their properties, to carry on their businesses as now conducted and as presently proposed to be conducted, and to enter into and perform its obligations under the Agreement. (2) This Agreement has been duly authorized, executed and delivered by Developer and Owner and, assuming due authorization, execution and delivery by City, is in full force and effect and is a valid and legally binding instrument of Developer and Owner enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights generally. Developer's and Owner's counsel shall issue a legal opinion to City, at time of closing, confirming the representations contained herein, in forms attached hereto as Exhibits B and C. (3) The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a violation or breach of, the terms, conditions or provisions of the articles of organization or the operating agreement of Developer or Owner or any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which Developer or Owner are now a party or by which they or their property are bound, or constitute a default under any of the foregoing. (4) There are no actions, suits or proceedings pending or threatened against or affecting Developer or Owner in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the business, financial position or result of operations of Developer or Owner or which affects the validity of the Agreement or Developer's or Owner's ability to perform their obligations under this Agreement. (5) Developer and Owner will perform their obligations under this Agreement in accordance with the material terms of this Agreement, the Urban Renewal Plan and all local, state and federal laws and regulations. (6) Developer and Owner will use their best efforts to obtain, or cause to be obtained, in a timely manner, all material requirements of all applicable local, state, and federal laws and regulations which must be obtained or met. (7) Developer has firm commitments for permanent financing for the Project in an amount sufficient, together with equity commitments, to successfully complete the requirements of this Agreement and shall provide evidence thereof to City prior to the Closing Date. 1.3 Closing. The closing shall take place on the Closing Date which shall be the 31St day of December, 2008, or such other date as the parties shall agree. Consummation of the closing shall be deemed an agreement of the parties to this Agreement that the conditions of closing shall have been satisfied or waived. 1.4 Conditions to Closing. The closing of the transaction contemplated by this Agreement and all the obligations of Developer and Owner under this Agreement are subject to fulfillment, on or before the Closing Date, of the following conditions: (1) Developer, Owner and City shall be in material compliance with all the terms and provisions of this Agreement. (2) Developer shall have furnished City with evidence, in a form satisfactory to City (such as a letter of commitment from a bank or other lending institution), that Developer has firm financial commitments in an amount sufficient, together with equity commitments, to complete the Minimum Improvements (as defined herein) in conformance with the Construction Plans (as defined herein), or City shall have received such other evidence of such party's financial ability as in the reasonable judgment of City is required. (3) Developer's and Owner's counsel shall issue a legal opinion to the City confirming the representations contained herein, in the forms attached hereto as Exhibits B and C. (4) Developer or Owner shall have the right to terminate this Agreement at any time prior to the consummation of the closing on the Closing Date if Developer or Owner determines in that party's sole discretion that conditions necessary for the successful completion of the Project contemplated herein have not been satisfied to the full satisfaction of such party in such party's sole and unfettered discretion. Upon the giving of notice of termination by such terminating party to the other parties to this Agreement, this Agreement shall be deemed null and void. 1.5 City's Obligations at Closing. At or prior to the Closing Date, City shall deliver to Developer and Owner such other documents as may be required by this Agreement, all in a form satisfactory to Developer and Owner. SECTION 2. DEVELOPMENT ACTIVITIES 2.1 Required Minimum Improvements. Developer shall make an additional capital investment of $3,000,000.00 in property acquisition, building improvements, machinery, equipment, furniture and fixtures in the Property (the Minimum Improvements). 2.2 [This section intentionally left blank] 2.3 Plans for Construction of Minimum Improvements. Plans and specifications with respect to the development of Property and the construction of the Minimum Improvements thereon (the Construction Plans) shall be in conformity with Urban Renewal Plan, this Agreement, and all applicable state and local laws and regulations, including but not limited to any covenants, conditions, restrictions, reservations, easements, liens and charges, recorded in the records of Dubuque County, Iowa. 2.4 Timing of Improvements. Developer hereby agrees that construction of the Minimum Improvements on the Property shall have been commenced by August 1, 2008, and shall be substantially completed by June 30, 2009. The time frames for the performance of these obligations shall be suspended due to unavoidable delays meaning delays, outside the control of the party claiming its occurrence in good faith, which are the direct result of strikes, other labor troubles, unusual shortages of materials or labor, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction orother similar judicial action or by the exercise of reasonable discretion directly results in delays, or acts of any federal, state or local government which directly result in extraordinary delays. The time for performance of such obligations shall be extended only for the period of such delay. 2.5 Certificate of Completion. Promptly following the request of Developer upon completion of the Minimum Improvements, City shall furnish Developerwith an appropriate instrument so certifying. Such certification (the Certificate of Completion) shall be in recordable form and shall be a conclusive determination of the satisfaction and termination of the agreements and covenants in this Agreement. SECTION 3. CITY PARTICIPATION 3.1 Economic Development Grant to Developer. For and in consideration of Developer's obligations hereunder, and in furtherance of the goals and objectives of the urban renewal plan for the Project Area and the Urban Renewal Law, City agrees, subject to Developer being and remaining in compliance with the terms of this Agreement, to make twenty (20) consecutive semi-annual payments (such payments being referred to collectively as the Economic Development Grants) to Developer: November 1, 2010 May 1, 2011 November 1, 2011 May 1, 2012 November 1, 2012 May 1, 2013 November 1, 2013 May 1, 2014 November 1, 2014 May 1, 2015 November 1, 2015 May 1, 2016 November 1, 2016 May 1, 2017 November 1, 2017 May 1, 2018 November 1, 2018 May 1, 2019 November 1, 2019 May 1, 2020 pursuant to Iowa Code Section 403.9 of the Urban Renewal Law, in amounts equal to a portion of the tax increment revenues collected by City under Iowa Code Section 403.19 (without regard to any averaging that may otherwise be utilized under Iowa Code Section 403.19 and excluding any interest that may accrue thereon prior to payment to Developer) during the preceding six-month period in respect of the Minimum Improvements constructed by Developer (the Developer Tax Increments). For purposes of calculating the amount of the Economic Development Grants provided in this Section, the DeveloperTax Increments shall be only those tax increment revenues collected by the City in respect of the increase in the assessed value of the Property above the assessment of January 1, 2008 ($2,451,900). The Developer Tax Increments shall not include (i) any property taxes collected for the payment of bonds and interest of each taxing district, (ii) any taxes for the regular and voter-approved physical plant and equipment levy, (iii) the remaining actual amount of tax increment revenues collected by the City in respect of the valuations of the Property prior to January 1, 2008 and (iv) any other portion required to be excluded by Iowa law, and thus such incremental taxes will not include all amounts paid by Developer as regular property taxes. 3.2 To fund the Economic Development Grants, City shall certify to the County prior to December 1, 2008, its request for the available Developer Tax Increments resulting from the assessments imposed by the County as of January 1 of that year and each year thereafter until and including January 1, 2019, to be collected by City as taxes are paid during the following fiscal year and which shall thereafter be disbursed to the Developer on November 1 and May 1 of that fiscal year. (Example: if City so certifies in December, 2008, the Economic Development Grants in respect thereof would be paid to the Developer on November 1, 2010, and May 1, 2011.) 3.3 The Economic Development Grants shall be payable from and secured solely and only by the Developer Tax Increments paid to City that, upon receipt, shall be deposited and held in a special account created for such purpose and designated as the Dubuque Stamp TIF Account of City. City hereby covenants and agrees to maintain its TIF ordinance in force during the term hereof and to apply the incremental taxes collected in respect of the Minimum Improvements and allocated to the Dubuque Stamp TIF Account to pay the Economic Development Grants, as and to the extent set forth in Section 3.2 hereof. The Economic Development Grants shall not be payable in any manner by othertax increments revenues, or by general taxation or from any other City funds. City makes no representation with respect to the amounts that may be paid to Owner as the Economic Development Grants in any one year and under no circumstances shall City in any manner be liable to Owner so long as City timely applies the Developer Tax Increments actually collected and held in the Dubuque Stamp TIF Account (regardless of the amounts thereof) to the payment of the Economic Development Grants to Owner as and to the extent described in this Section. 3.4 City shall be free to use any and all tax increment revenues collected in respect of other properties within the Project Area and the remaining actual amount of the property taxes paid by Developer to City, or any available Developer Tax Increments resulting from the termination of the annual Economic Development Grants under Section 3.2 hereof, for any purpose for which such tax increment revenues may lawfully be used pursuant to the provisions of the Urban Renewal Law, and City shall have no obligations to Developer or Owner with respect to the use thereof. SECTION 4. COVENANTS OF DEVELOPER 4.1 Job Creation. Developer shall create ten (10) full-time (2080 hours per year) positions in Dubuque, Iowa after May 2008 and within three years from May 1, 2008, and shall maintain those jobs during the Term of this Agreement. City acknowledges that Developer has existing employees and all persons now or hereafter employed by Developer shall count against the ten (10) full-time employee requirement described herein. It is agreed by the parties that Developer has 161 employees in Dubuque, Iowa, as of May 1, 2008. In the event that the certificate provided to City under Paragraph 9 hereof on September May 1, 2011, discloses that Developer does not as of that date have at least One Hundred Seventy-One (171) full-time employees as provided hereinabove, City shall reduce the semi-annual Economic Development Grants. For the positions that Developer fails to create and maintain for any year during the Term of this Agreement, the semi- annual Economic Development Grants for such year under Section 3.2 shall be reduced by the percentage that the number of such positions bears to the total number of 171 positions required to be created and maintained by this Paragraph. 4.2 Certification. To assist City in monitoring the performance of Developer hereunder, not later than July 1, 2011, and not later than July 1 of each year thereafter during the term of this Agreement, a duly authorized officer of Developer shall certify to City in a form acceptable to City (a) the number of full time employees employed by Developer in Dubuque, Iowa on May 1 of the year of the certification, and (b) a statement that such officer has re-examined the terms and provisions of this Agreement and that at the date of such certificate, and during the preceding twelve (12) months, Developer is not or was not in default in the fulfillment of any of the terms and conditions of this Agreement and that no Event of Default (or event which, with the lapse of time or the giving of notice, or both, would become an Event of Default) is occurring or has occurred as of the date of such certificate or during such period, or if the signer is aware of any such default, event or Event of Default, said officer shall disclose in such statement the nature thereof, its period of existence and what action, if any, has been taken or is proposed to be taken with respect thereto. 4.3 Books and Records. During the term of this Agreement, Developer shall keep at all times and make available to City upon reasonable request proper books of record and account in which full, true and correct entries will be made of all dealings and transactions of or in relation to the business and affairs of Developer in accordance with generally accepted accounting principles consistently applied throughout the period involved, and Developer shall provide reasonable protection against loss or damage to such books of record and account. 4.4 Real Property Taxes. Owner shall pay or cause to be paid, when due, all real property taxes and assessments payable with respect to all and any parts of the Property unless Owner's obligations have been assumed by another person pursuant to the provisions of this Agreement. 4.5 No Other Exemptions. During the term of this Agreement, Owner agrees not to apply for any other state or local property tax exemptions which are available with respect to the Development Property orthe Minimum Improvements located thereon that may now be, or hereafter become, available under state law or city ordinance during the term of this Agreement, including those that arise under Iowa Code Chapters 404 and 427, as amended. 4.6 Insurance Reauirements. (1) Owner shall provide and maintain or cause to be maintained at all times during the process of constructing the Minimum Improvements and at its sole cost and expense a property policy written on a replacement cost basis. Coverage shall include the "special perils" form and developer shall furnish City with proof of insurance in the form of a certificate of insurance. (2) Upon completion of construction of the Minimum Improvements and up to the Termination Date, Owner shall maintain, or cause to be maintained, at its cost and expense property insurance against loss and/or damage to the building (including the Minimum Improvements) under an insurance policy written with the "special perils" form and in an amount not less than the full insurable replacement value of the building (including the Minimum Improvements). Owner shall furnish to City proof of insurance in the form of a certificate of insurance. The term "replacement value" shall mean the actual replacement cost of the building with Minimum Improvements (excluding foundation and excavation costs and costs of underground flues, pipes, drains and other uninsurable items) and equipment, and shall be reasonably determined from time to time at the request of City, but not more frequently than once every three (3) years. (3) Owner shall notify City immediately in the case of damage exceeding $500,000.00 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. Net proceeds of any such insurance (Net Proceeds), shall be paid directly to Owner as its interests may appear, and Owner shall forthwith repair, reconstruct and restore the Minimum Improvements to substantially the same or an improved condition or value as they existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, Owner shall apply the Net Proceeds of any insurance relating to such damage received by Owner to the payment or reimbursement of the costs thereof, subject, however, to the terms of any mortgage encumbering title to the Property (as its interests may appear). Owner shall complete the repair, reconstruction and restoration of Minimum Improvements whether or not the Net Proceeds of insurance received by Ownerfor such purposes are sufficient. 4.7 Preservation of Property. During the term of this Agreement, Owner shall maintain, preserve and keep, or cause others to maintain, preserve and keep, the Minimum Improvements in good repair and working order, ordinary wear and tear accepted, and from time to time shall make all necessary repairs, replacements, renewals and additions. 4.8 Non-Discrimination. In carrying out the project, neither Developer nor Owner shall discriminate against any employee or applicant for employment because of race, religion, color, sex, sexual orientation, national origin, age or disability. 4.9 Conflict of Interest. Developer and Owner agree that no member, officer or employee of City, or its designees or agents, nor any consultant or member of the governing body of City, and no other public official of City who exercises or has exercised any functions or responsibilities with respect to the project during his or her tenure, or who is in a position to participate in adecision-making process or gain insider information with regard to the project, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the project, or in any activity, or benefit therefrom, which is part of this project at any time during or after such person's tenure. In connection with this obligation, Developer and Owner shall have the right to rely upon the representations of any party with whom it does business and shall not be obligated to perform any further examination into such party's background. 4.10 Non-Transferability. Until such time as the Minimum Improvements are complete (as certified by City under Section 2.4), this Agreement may not be assigned by Developer or Owner nor may the Property be transferred by Owner to another party without the prior written consent of City, which shall not be unreasonably withheld. Thereafter, Developer or Owner shall have the right to assign this Agreement and upon assumption of the Agreement by the assignee, Developer and Developer shall no longer be responsible for their obligations under this Agreement. 4.11 Restrictions on Use. Developer and Owner agree for themselves, and their successors and assigns, and every successor in interest to the Property or any part thereof that they, and their respective successors and assigns, shall: (1) Devote the Property to, and only to and in accordance with, the uses specified in the Urban Renewal Plan (and City represents and agrees that use of the Property as an office, is in full compliance with the Urban Renewal Plan) (however, neither Developer nor Owner shall not have any liability to City to the extent that a successor in interest shall breach this covenant and City shall seek enforcement of this covenant directly against the party in breach of same); and (2) Not discriminate upon the basis of race, religion, color, sex, sexual orientation, national origin, age or disability in the sale, lease, rental, use or occupancy of the Property or any improvements erected or to be erected thereon, or any part thereof (however, neither Developer nor Owner shall not have any liability to City to the extent that a successor in interest shall breach this covenant and City shall seek enforcement of this covenant directly against the party in breach of same). 4.12 Compliance with Laws. Developer and Owner shall comply with all laws, rules and regulations relating to its businesses, other than laws, rules and regulations the failure to comply with or the sanctions and penalties resulting therefrom, would not have a material adverse effect on the business, property, operations, financial or otherwise, of Developer or Owner. SECTION 5. EVENTS OF DEFAULT AND REMEDIES 5.1 Events of Default Defined. The following shall be Events of Default under this Agreement and the term Event of Default shall mean, whenever it is used in this Agreement, any one or more of the following events: (1) Failure by Owner to pay or cause to be paid, before delinquency, all real property taxes assessed with respect to the Minimum Improvements and the Property. (2) Failure by Developer to cause the construction of the Minimum Improvements to be commenced and completed pursuant to the terms, conditions and limitations of this Agreement. (3) Transfer of any interest by Developer or Owner of the Minimum Improvements in violation of the provisions of this Agreement prior to the issuance of the final Certificate of Completion. (4) Failure by Developer, Owner, or City to substantially observe or perform any other material covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. 5.2. Remedies on Default by Developer. Whenever any Event of Default referred to in Section 5.1 of this Agreement occurs and is continuing, City, as specified below, may take any one or more of the following actions after the giving of written notice by City to Developer (and the holder of any mortgage encumbering any interest in the Property of which City has been notified of in writing) of the Event of Default, but only if the Event of Default has not been cured within sixty (60) days following such notice, or if the Event of Default cannot be cured within sixty (60) days and Developer or Owner does not provide assurances to City that the Event of Default will be cured as soon as reasonably possible thereafter: (1) City may suspend its performance under this Agreement until it receives assurances from the defaulting party deemed adequate by City, that the defaulting party will cure its default and continue its performance under this Agreement; (2) Until the Closing Date, City may cancel and rescind this Agreement; (3) City shall be entitled to recover from Developer the sum of all amounts expended by City in connection with the funding of the Downtown Rehab Loan/Grant to Developer, and City may take any action, including any legal action it deems necessary, to recover such amounts from the defaulting party; (4) City may withhold the Certificate of Completion; or (5) City may take any action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. 5.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 5.4 No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by any other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. 5.5 Agreement to Pay Attorneys' Fees and Expenses. If any action at law or in equity, including an action for declaratory relief or arbitration, is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of litigation from the other party. Such fees and costs of litigation may be set by the court in the trial of such action or by the arbitrator, as the case may be, or may be enforced in a separate action brought for that purpose. Such fees and costs of litigation shall be in addition to any other relief that may be awarded. 5.6 Remedies on Default by City. If City defaults in the performance of this Agreement, Developer may take any action, including legal, equitable or administrative action that may appear necessary or desirable to collect any payments due under this Agreement, to recover expenses of Developer, or to enforce performance and observance of any obligation, agreement, or covenant of City under this Agreement. Developer may suspend its performance under this Agreement until it receives assurances from City, deemed adequate by Developer, that City will cure its default and continue its performance under this Agreement. SECTION 6. GENERAL TERMS AND PROVISIONS 6.1 Notices and Demands. Wheneverthis Agreement requires or permits any notice or written request by one party to another, it shall be deemed to have been properly given if and when delivered in person or three (3) business days after having been deposited in any U.S. Postal Service and sent by registered or certified mail, postage prepaid, addressed as follows: If to Developer: Dave W. Spahn President Dubuque Stamping & Manufacturing, Inc. 3190 Jackson Street Dubuque, IA 52001 If to ®wner: Dave W. Spahn Member R&S Realty, LLC 3190 Jackson Street Dubuque,lA 52001 If to City: City Manager 50 W. 13th Street Dubuque, Iowa 52001 Phone: (563) 589-4110 Fax: (563) 589-4149 With copy to: City Attorney City Hall 50 W. 13t" Street Dubuque IA 52001 Or at such other address with respect to either party as that party may, from time to time designate in writing and forward to the other as provided in this Section. 6.2 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of City, Developer, and Owner and their respective successors and assigns. 6.3 Termination Date. This Agreement and the rights and obligations of the parties hereunder shall terminate on May 1, 2020 (the Termination Date). 6.4. Execution By Facsimile. The parties agree that this Agreement may be transmitted between them by facsimile machine. The parties intend that the faxed signatures constitute original signatures and that a faxed Agreement containing the signatures (original or faxed) of all the parties is binding on the parties. 6.5 Memorandum of Development Agreement. City shall promptly record a Memorandum of Development Agreement in the form attached hereto as Exhibit A in the office of the Recorder of Dubuque County, Iowa. Developer shall pay the costs for so recording. IN WITNESS WHEREOF, City has caused this Agreementto be duly executed in its name and behalf by its Mayor and attested to by its City Clerk and Developer and Owner have caused this Agreement to be duly executed on or as of the first above written. CITY ®F ®UBUQUE, I®WA ~'v % ~ t, ®UBUQUE STAMPING & MANUFACTUFZING, INC. ,J ~ry '~- sae. y ..~.m.,, {~ Roy D. Buol Mayor Attest: Jeanne F. Schneider City Clerk (City Seal) David W. Spahn President R&S REALTY, LLC. By: David W. Spahn Managing Members On this J„~~~day of r, 2~0$, before me the undersigned, a Notary Public in and for the said County and State, personally appeared Roy D. Buol and Jeanne F. Schneider, to me personally known, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa, a municipal corporation executing the instrument to which this is attached; that the seal affixed hereto is the seal of said municipal corporation; that said instrument was signed and sealed on behalf of the City of Dubuque, Iowa, by authority of its City Council; and that said Mayor and City Clerk acknowledged the execution of said instrument to be the voluntary act and deed of said STATE OF IOWA SS COUNTY OF DUBUQUE ) On this ~ day of r~e~; 2008, before me the undersigned, a Notary Public in and forthe State df Iowa, personally appeared David W. Spahn, to me personally known, who, being by me duly sworn, did say that he is the President of Dubuque Stamping & Manufacturing, Inc. the corporation executing the instrument to which this is attached and that as said President of Dubuque Stamping & Manufacturing, Inc. acknowledged the execution of said instrument to be the voluntary act and deed of said company, by it and by him, an individual, voluntarily executed. STATE OF IOWA ) ) SS COUNTY OF DUBUQUE ) On this 24th day of February, 2008, before me the undersigned, a Notary Pubic in and for the State of Iowa, personally appeared David W. Spahn, to me personally known, who, being by me duly sworn, did say that he is the Managing Member of R&S Realty, LLC., the company executing the instrument to which this is attached and that as said managing member acknowledge the execution of said instrument to be the voluntary act and deed of said company, by it and by him, an individual, voluntarily executed. Notary Public Prepared by: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 Return to: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 EXHIBIT A MEMORANDUM OF DEVELOPMENT AGREEMENT A Development Agreement by and among the City of Dubuque, Iowa, an Iowa municipal corporation, of Dubuque, Iowa, Dubuque Stamping & Manufacturing, Inc., and R&S Realty, LLC, was made regarding the following described premises: Lot D in Liebe's Subdivision No. 2 in the City of Dubuque, Dubuque County, Iowa; and Lot 1-1, Lot 2, Lot 3 and Lot 4 all in Liebe's Subdivision No. 3 in the City of Dubuque, Dubuque County, Iowa The Development Agreement is dated for reference purposes the day of 20_, and contains covenants, conditions, and restrictions concerning the sale and use of said premises. This Memorandum of Development Agreement is recorded for the purpose of constructive notice. In the event of any conflict between the provisions of this Memorandum and the Development Agreement itself, executed by the parties, the terms and provisions of the Development Agreement shall prevail. A complete counterpart of the Development Agreement, together with any amendments thereto, is in the possession of the City of Dubuque and may be examined at its offices as above provided. Dated this day of , 20_ CITY OF DUBUQUE, IOWA By: Roy D. Buol, Mayor By: Jeanne F. Schneider, City Clerk STATE OF IOWA COUNTY OF DUBUQUE SS On this day of , 20 ,before me, a Notary Public in and for the State of Iowa, in and for said county, personally appeared Roy D. Buol and Jeanne F. Schneider, to me personally known, who being by me duly sworn did say that they are the Mayor and City Clerk, respectively of the City of Dubuque, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to said instrument is the seal of said Municipal Corporation and that said instrument was signed and sealed on behalf of said Municipal corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. Notary Public, State of Iowa EXHIBIT B OPINION OF DEVELOPER'S COUNSEL Mayor and City Councilmembers Cit~r Hall 13 and Central Avenue Dubuque IA 52001 Re: Development Agreement Between the City of Dubuque, Iowa and Dubuque Stamping & Manufacturing, Inc. and R&S Realty, LLC Dear Mayor and City Councilmembers: We have acted as counsel for Dubuque Stamping & Manufacturing, Inc., ("Developer") in connection with the execution and delivery of a certain Development Agreement (Development Agreement) between Developer and the City of Dubuque, Iowa ("City") dated for reference purposes the day of , 20_. We have examined the original certified copy, or copies otherwise identified to our satisfaction as being true copies, of the Development Agreement and such other documents and records as we have deemed relevant and necessary as a basis for the opinions set forth herein. Based on the pertinent law, the foregoing examination and such other inquiries as we have deemed appropriate, we are of the opinion that: 1. Developer is a corporation organized and existing underthe laws of the State of Iowa and has full power and authority to execute, deliver and perform in full Development Agreement. The Development Agreement has been duly and validly authorized, executed and delivered by Developer and, assuming due authorization, execution and delivery by City, is in full force and effect and is valid and legally binding instrument of Developer enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights generally. 2. To our knowledge with no duty to inquire the execution, delivery and performance by Developer of the Development Agreement and the carrying out of the terms thereof, will not result in violation of any provision of, or in default under, the articles of incorporation and bylaws of Developer, any indenture, mortgage, deed of trust, indebtedness, agreement, judgment, decree, order, statute, rule, regulation or restriction to which Developer is a party or by which Developer's property is bound or subject. 3. To our knowledge with no duty to inquire there are no actions, suits or proceedings pending or threatened against or affecting Developer in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the business (present or prospective), financial position or results of operations of Developer orwhich in any manner raises any questions affecting the validity of the Agreement or the Developer's ability to perform Developer's obligations thereunder. Very truly yours, EXHIBIT C OPINION OF OWNER'S COUNSEL Mayor and City Councilmembers Cit~r Hall 13t and Central Avenue Dubuque IA 52001 Re: Development Agreement Between the City of Dubuque, Iowa and Dubuque Stamping & Manufacturing, Inc. and R&S Realty, LLC Dear Mayor and City Councilmembers: We have acted as counsel for R&S Realty, LLC. ("Owner") in connection with the execution and delivery of a certain Development Agreement (Development Agreement) between Developer and the City of Dubuque, Iowa ("City") dated for reference purposes the day of , 20_. We have examined the original certified copy, or copies otherwise identified to our satisfaction as being true copies, of the Development Agreement and such other documents and records as we have deemed relevant and necessary as a basis for the opinions set forth herein. Based on the pertinent law, the foregoing examination and such other inquiries as we have deemed appropriate, we are of the opinion that: 1. Owner is a limited liability company organized and existing under the laws of the State of Iowa and has full power and authority to execute, deliver and perform in full Development Agreement. The Development Agreement has been duly and validly authorized, executed and delivered by Owner and, assuming due authorization, execution and delivery by City, is in full force and effect and is valid and legally binding instrument of Owner enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights generally. 2. The execution, delivery and performance by Owner of the Development Agreement and the carrying out of the terms thereof, will not result in violation of any provision of, or default under, the Articles of Organization or Operating Agreement of Owner, any indenture, mortgage, deed or trust, indebtedness, agreement, judgment, decree, order, statute, rule, regulation or restriction to which Owner is a party or by which Owner's property is bound or subject. 3. To our actual knowledge with no duty to inquire, the execution, delivery and performance by Owner of the Development Agreement and the carrying out of the terms thereof, will not result in violation of any provision of, or in default under, the articles of incorporation and bylaws of Owner, any indenture, mortgage, deed of trust, indebtedness, agreement, judgment, decree, order, statute, rule, regulation or restriction to which Owner is a party or by which Owner's property is bound or subject. 4. To our actual knowledge with no duty to inquire, there are no actions, suits or proceedings pending or threatened against or affecting Owner in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the business (present or prospective), financial position or results of operations of Owner or which in any manner raises any questions affecting the validity of the Agreement or the Owner's ability to perform Owner's obligations thereunder. This opinion is rendered for the sole benefit of the City of Dubuque and no other party may rely on this opinion. This opinion is rendered and valid as of the date of this letter and we have no duty to update this opinion for any matters which come to our knowledge after the date of this letter. Very truly yours,