IBM Second Amendment to Incentives AgreementTHE CITY OF
Masterpiece ova the Mis ~i~ippi
IBAFZRY LINDA L
CITY ATTORN Y
T'o: Mayor Roy D. Buol and
Members of the City Council
DATE: June 18, 2009
Re: City of Dubuque -IBM Second Amendment to Incentives Agreement
On February 16, 2009, the City and International Business Machines Corporation (IBM)
entered into an Incentives Agreement with respect to the Roshek .Building Project. The
Agreement is subject to, among other things, the condition that IBM may terminate the
Agreement at any time on or before May 1, 2009 in the event that IBM determines that
the financial assistance agreement with the State of Iowa Department of Economic
Development (IDED) is unsatisfactory to IBM. By the First Amendment to the Incentives
Agreement, the deadline for reaching an agreement with IDED was extended to July 1,
2009.
have been advised by IBM representatives that the agreement for financial assistance
between IDED and IBM has not been finalized. IBM has requested that the Incentives
Agreement be amended to extend the deadline for finalizing the IDED assistance
agreement to September 1, 2009.
Attached is a Second Amendment to the Incentives Agreement, as well as a Resolution
Approving the Second Amendment to Incentives Agreement, which extends the
deadline for finalizing the IDED assistance agreement to September 1, 2009.
I recommend City Council consideration and approval of the Second Amendment to
Incentives Agreement.
BAL:tIs
Attachment
cc: Michael C. Van Milligen, City Manager
Dave Heiar, Economic Development Director
F:\USERS\tsteckle\Lindahl\IBM\MayorCouncil_SecondAmendmentlncentivesAgreement_061809.doc
Prepared by Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
RESOLUTIN NO. 209-09
APPROVING THE SECONOD AMENDMENT TO INCENTIVES AGREEMENT
BETWEEN THE CITY OF DUBUQUE, IOWA, AND INTERNATIONAL
BUSINESS MACHINES CORPORATION
Whereas, the City of Dubuque, Iowa (City) and International Business
Machines Corporation (Employer) have entered into an Incentives Agreement
(the Agreement) dated February 16, 2009, as amended by the First Amendment;
and
Whereas, the Agreement is subject to the condition that Employer may
terminate the Agreement at any time on or before July 1, 2009 in the event
Employer determines that financial assistance with the State of Iowa Department
of Economic Development (the IDED Assistance) is unsatisfactory to Employer;
and
Whereas, documentation far the IDED Assistance has not been finalized
by Employer and IDED; and
Whereas, City and Employer desire to amend the Incentives Agreement to
extend the termination date to September 1, 2009.
NOW, THEREFORE, BE IT RESOLVED EY THE CITY COUNCIL OF
THE CITY OF DUBUQUE, IOWA, AS FOLLOWS:
Section 1. The Second Amendment attached hereto is hereby
approved.
Section 2. The Mayor is authorized and directed to sign the Second
Amendment on behalf of the City of Dubuque.
Passed, approved and adopted this 23rd day of June , 2009.
Roy D. Buol, Mayor
Attest:
J anne F. Schneider, City Clerk
This Second Amendment to incentives Agreement between the City of
Dubuque, Iowa, and international Business Machines Corporatian, dated for
reference purposes the ~-'~' day of a t..~.t d~ , 2009.
Whereas, the City of Dubuque, laws {City} and Internat'sanal Business
Machines Corparatian {Employer} have entered iota an incentives Agreement
{the Agreement} dated February 16, 2009, as amended by the First Amendment;
and
Whereas, the Agreement is subject to the condition that Employer may
terminate the Agreement at any time on ar before Juiy 1, 2009 in the event
Employer determines that financial assistance with the State of lows Department
of Economic Development {the IDED Assistance} is unsatisfactory to Employer;
and
Whereas, documentation for the IDED Assistance has not been finalized
by Employer and IDED; and
Whereas, City and Employer desired to amend to incentives Agreement to
extend the termination date to September 1, 2009.
NC~W, T(i~lEF~IcFC)RE, lT lS o~~REEMENT ~Y ANl7 ~ET~dEE~! THE
~'Al~~'lES AS F~LL~tf1JS:
1. Par. 1.1 of the Incentives Agreement is amended to read as
follows:
1.1 This Agreement becomes effective when the Employer executes an
agreement {inclusive of all ether agreements and all related documentation} for
financial assistance with the State of [awe Department of Economic Development
on such terms and conditions as Employer in its sole, absolute and unfettered
discretian deems to be satisfactory {the "IDED Assistance„) (Employer will
provide written notice to the City if and when the IDED Assistance has been
obtained; such native being a condition precedent to the Effective Date actually
occurring, notwithstanding any other provision to the contrary} and {ii} the City
Council of the City of Dubuque, lows, in its sale, absolute and unfettered
discretian, having approved a Development Agreement between City and
Developer {the "Develapment Agreement" or "DA"}} by not later than February
'i9, 2(?{~9 in #orn~ and substance satisfactory to Err4ployer (City shall deliver to
Employer {i) for review and cor~~ment eac#t draft of the dA at such time as any
such draft is delivered to developer and (ii) the finai, executed #orm of the dA
within five (~} days of its execution. Employer may terminate this. Ac~reen~ent at
any time vn car before Ceptember 1, 2~?t~9 (k,y delivering written notice thereof to
the City) in the event Employer determines that the IdED Assistance is
unsatisfactory to Employer.
~. All other terms and conditions of the Incentives Agreerrment shall
remain in full farce and effect.
CITY" C3i° dt~~iJ~IJE, IQ11~i'A
" ;~'
By: c ' ~:
Roy C~° l3uol, lVlayor
a
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~`~'Jearrne F. Schneider City Clerk
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