Weaver Castle, LLC - Fourth Amendment to Development 346-348 W. Locust_Stepflug Copyrighted
January 3, 2018
City of Dubuque Consent Items # 7.
ITEM TITLE: Weaver Castle, LLC - Fourth Amendment to Development
Agreement for 346-348 W. Locust Street
SUMMARY: City Manager recommending approval of the 4th
Amendment to the Development Agreement with Weaver
Castle LLC for the redevelopment of the property at 346-
348 West Locust Street, that extends the completion date
to June 30, 2019.
RESOLUTION Approving the Fourth Amendment to the
DevelopmentAgreement between the Cityof Dubuque,
lowa and Weaver Castle, LLC
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
346-348 W. Locust-4th Amendment to Development City Manager Memo
Agreement-NNM Memo
Staff Memo Staff Memo
4th Amendment to DA Supporting Documentation
Resolution of Approval Resolutions
THE CITY OF Dubuque
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Masterpiece on the Mississippi Z°°'�w'2
7A13 2017
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: 4�h Amendment to Development Agreement for 346-348 West Locust
DATE: December 22, 2017
Economic Development Director Maurice Jones recommends City Council approval of
the 4�h Amendment to the Development Agreement with Weaver Castle LLC for the
redevelopment of the property at 346-348 West Locust Street. The 4�h Amendment
extends the completion date to June 30, 2019.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen �� �
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Dubuque Economic Development Department
THE CITY OF 50 West 13t"Street
All-AmericaCitY Dubuque,lowa 52001-4864
1 ' Office(563)589-4393
TTY(563)690-6678
° http://www.cityofdubuque.org
Masterpiece on the Mississippi 200,.2012•2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: 4t" Amendment to Development Agreement for 346-348 West Locust
DATE: December 20, 2017
INTRODUCTION
This memorandum presents for review and approval the 4t" amendment to the
Development Agreement with Weaver Castle LLC for the redevelopment of the property
at 346-348 West Locust Street.
BAC KG RO U N D
City Council approved a Development Agreement with Weaver Castle LLC for the
redevelopment of 346-348 West Locust Street on August 21, 2013. The Agreement
calls for a capital investment of at least $400,000 and the creation of four (4) market
rate apartments.
An amendment was approved by City Council on March 16, 2015 extending the
substantial completion date of the project to December 31, 2015. A second amendment
was approved by City Council on October 19, 2015 extending the substantial
completion date of the project December 31, 2016, and a third amendmentwas
approved on December 19, 2016 extending the completion date to December 31, 2017.
DISCUSSION
Weaver Castle LLC has completed several residential projects in the Loras/W. Locust
area recently, adding quality units to this neighborhood. They have several properties
currently under construction, and have purchased one other property that does not yet
have a Development Agreement with the City, but which they intend to rehabilitate in
the coming years.
The project at 346-348 West Locust has begun, but will likely not meet the substantial
completion date of December 31, 2017, as set forth in the 3rd Amendment to
Development Agreement. Exterior improvements to the property have already been
undertaken, including roof, brick and other work to ensure a sound building envelope,
protecting the interior from damage from the elements. Due to the Developer's lender
requesting Developer secure a historic tax credit investor before providing the bridge
loan financing, work has slowed on this project. The Developer plans to continue their
work in the downtown area, as their currently finished units are completely leased up.
The 4�h Amendment will extend the completion date to June 30, 2019.
RECOMMENDATION/ ACTION STEP
I recommend the Council approves the attached resolution, authorizing the Mayor to
sign the 4�h Amendment.
RESOLUTION NO. 1-18
APPROVING THE FOURTH AMENDMENT TO THE DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF DUBUQUE, IOWA AND WEAVER CASTLE, LLC
Whereas the City of Dubuque, Iowa (City) and Weaver Castle, LLC (Developer)
entered into a Development Agreement dated for reference purposes the 21St day of
August, 2013 for the redevelopment of the property at 346-348 West Locust Street, which
Development Agreement required Developer to complete certain Minimum Improvements
described therein; and
Whereas the First Amendment to Development Agreement, dated the 16th day of
March, 2015, extended the substantial completion date of the Minimum Improvements to
December 31, 2015; and
Whereas the Second Amendment to Development Agreement, dated the 19th day
of October, 2016, extended the substantial completion date of the Minimum
Improvements to December 31, 2016; and
Whereas the Third Amendment to Development Agreement, dated the 19th day
of December, 2016 extended the substantial completion date for the Minimum
Improvements to December 31, 2017; and
Whereas City and Developer now desire to amend the Development Agreement
as set forth in the Fourth Amendment to Development Agreement attached hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City Council hereby approves the Fourth Amendment to
Development Agreement.
Section 2. The Mayor is authorized and directed to sign the Fourth Amendment
to Development Agreement on behalf of the City of Dubuque.
Passed, approved and adopted this 3rd day of Janua , 2018.
X19 /44,6,-ej
Roy D. Bpit, Mayor
Attest:
Ke rf S.' rnstafii Di y Clerk
FOURTH AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
WEAVER CASTLE LLC
This Fourth Amendment to Development Agreement, dated for reference purposes
the 3rd day of January 2018, is made and entered into by and between the City of
Dubuque, Iowa (City) and Weaver Castle LLC (Developer).
Whereas City and Developer previously entered into a Development Agreement
dated the 21St day of August, 2013 (the Development Agreement) for the redevelopment
of the property at 346-348 West Locust Street which required Developer to complete
certain Minimum Improvements as described therein; and
Whereas the First Amendment to Development Agreement, dated the 16th day of
March, 2015, extended the substantial completion date for the Minimum Improvements
to December 31, 2015; and
Whereas the Second Amendment to Development Agreement, dated the 19th day
of October, 2016, extended the substantial completion date for the Minimum
Improvements to December 31, 2016; and
Whereas the Third Amendment to Development Agreement, dated the 19th day of
December, 2016 extended the substantial completion date for the Minimum
Improvements to December 31, 2017; and
Whereas substantial work on the property which is the subject of the Development
Agreement has been performed to date, but the Minimum Improvements required by the
Development Agreement are not yet complete; and
Whereas City and Developer desire to amend the Development Agreement as set
forth herein.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES THAT
THE DEVELOPMENT AGREEMENT IS AMENDED AS FOLLOWS:
1. Section 2.4 of the Development Agreement is hereby amended to read as
follows:
Timing of Improvements. Developer hereby agrees that construction of the
Minimum Improvements on the Property shall be commenced within thirty (30) days after
the Closing Date, and shall be substantially completed by June 30, 2019. The time 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
or other 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. All other terms and conditions of the Development Agreement remain in full
force and effect.
CITY OF DUBUQUE, IOWA WEAVER CASTLE LLC
By:
Roy D.1uol, Mayor
2
By: t X I s�✓`�
Ga'/Stelpflug, Manager