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Housing Enterprise Zone Agreement 1st Amendment_St. Raphael SchoolTHE CITY OF Dubuque ~T T~ ~ All-AmerlcaCity ~J I ~ Masterpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: First Amendments to Housing Enterprise Zone Program Agreement Number 09-HEZ-008 for St. Raphael School Project DATE: October 14, 2009 On August 11, 2008, the City Enterprise Zone Commission approved an application to the Iowa Department of Economic Development (IDED) on behalf of Lofts at Cathedral Square for Housing Enterprise Zone benefits related to the redevelopment of the former St. Raphael school house on Bluff Street. IDED approved the application on August 27, 2008. The agreement was approved by the City Council on October 6, 2009. The project has changed developers and the group doing the project is now B&C Cathedral Development, LLC. Economic Development Director Dave Heiar recommends City Council approval of an amendment to the Housing Enterprise Zone Program Agreement to reflect the change in developers to B&C Cathedral Development. I 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 ©F Dubuque ~T T~ E (.,,J AlaAmericaC~y 1 r MasteYpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: First Amendments to Housing Enterprise Zone Program Agreement Number 09-HEZ-008 for St. Raphael School Project DATE: October 14, 2009 On August 11, 2008, the City Enterprise Zone Commission approved an application to the Iowa Department of Economic Development (IDED) on behalf of Lofts at Cathedral Square for Housing Enterprise Zone benefits related to the redevelopment of the former St. Raphael school house on Bluff Street. IDED approved the application on August 27, 2008. The agreement was approved by the City Council on October 6, 2008. The project has changed developers and the group doing the project is now B&C Cathedral Development, LLC. Economic Development Director Dave Heiar recommends City Council approval of an amendment to the Housing Enterprise Zone Program Agreement to reflect the change in developers to B&C Cathedral Development. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael 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 ~D.u,,b~uq,,u.~e A&Am~ DUB E ~ - Masterpiece on the Mississippi 2007 TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director ~ I~ SUBJECT: First Amendments to Housing Enterprise Zone Program Agreement Number 09-HEZ-008 for St. Raphael School Project DATE: September 30, 2009 INTRODUCTION This memorandum presents for City Council approval an amendment to the Housing Enterprise Zone Program Agreement by and among the Iowa Department of Economic Development (IDED), the City and Lofts at Cathedral Square. The City Council is requested to adopt a resolution approving the amendment. BACKGROUND On August 11, 2008, the City Enterprise Zone Commission approved an application to IDED on behalf of Lofts at Cathedral Square for Housing Enterprise Zone benefits related to the redevelopment of the former St. Raphael school house on Bluff Street. IDED approved the application on August 27, 2008. The agreement was approved by the City Council on October 6, 2008. DISCUSSION Attached to this memorandum is a resolution that provides for the approval of an amendment to the agreement for Housing Enterprise Zone benefits for Lofts at Cathedral Square. The project has changed developers and the group doing the project is now B&C Cathedral Development, LLC. The resolution authorizes and directs the Mayor to execute the amendment on behalf of the City. The agreement outlines the State benefits that will accrue to the housing business based on their role as developer of the housing project. The project will provide 25 new housing units in the downtown area. The project has estimated a capital investment of $4,000,000 within the Enterprise Zone related to the housing units. A copy of the amendment is attached to the resolution. RECOMMENDATION I recommend that the City Council approve the proposed amendment to the Housing Enterprise Zone Program Agreement for the St. Raphael school project by adopting the attached resolution. This agreement will provide State of Iowa financial benefits to a local housing developer 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\Econ Dev\Lofts at Cathedral Square\Enterprise Zone\20090930 First Amendment Council Memo.doc Prepared by: Aaron DeJong, Asst. ED Director, 50 West 13t" Street, Dubuque IA 52001 563 589-4393 Return to: Jeanne Schneider, City Clerk, 50 West 13t" Street, Dubuque IA 52001 563 589-4121 RESOLUTION NO. 406-09 RESOLUTION APPROVING AN AMENDMENT TO A HOUSING ENTERPRISE ZONE PROGRAM AGREEMENT BY AND AMONG THE IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT, THE CITY OF DUBUQUE AND LOFTS AT LATHED L SQUARE. Whereas, the City of Dubuque has established two Enterprise Zones and an Enterprise Zone Commission; and Whereas, the Enterprise Zone Commission on August 11, 2008 approved the application of Lofts at Cathedral Square for Housing Enterprise Zone benefits; and Whereas, Lofts at Cathedral Square's application was approved by the Iowa Department of Economic Development on August 27, 2008; and Whereas, the Enterprise Zone Agreement was approved by the City Council by Resolution No.341-08 on October 6, 2008; and Whereas, an amendment is needed to transfer the agreement to B&C Cathedral Development, LLC as it is the new developer for the project; and Whereas, the City Council finds that the proposed amendment is acceptable and necessary to the growth and development of the city. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Iowa Department of Economic Development Housing Enterprise Zane Program Agreement Amendment 1, Number 09- HEZ-008, is hereby approved. Section 2. That the Mayor is hereby authorized and directed to execute the amendment 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 October, 200 ~H ., ;~ _~ ~~- ~' Roy D. Buol, Mayor Attest: -~-- eanne F. Schneider, City Cler F:\USERS\Econ Dev\Lofts at Cathedral Square\Enterprise Zone\20081019 Amendment Resolution.doc IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT HOUSING ENTERPRISE ZONE PROGRAM AGREEMENT CONTRACT AMENDMENT NUMBER EZ AGREEMENT NUMBER: 09-HEZ-008 THIS AMENDMENT 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 W 13th ST, Dubuque, IA 52001, ("Community") and B & C Cathedral Development, L.L.C., 600 Star Brewery Drive, STE 300, Dubuque, IA 52001, ("Housing Business"). Contract Number 09-HEZ-008 is hereby modified as follows: Modification 1: The Housing Business named in the Agreement as The Lofts at Cathedral Square has been replaced and shall be known as B & C Cathedral Development, L.L.C. Except as otherwise revised above, the terms, provisions, and conditions of Contract Number 09-HEZ-008 remain unchanged and are in full force and effect: FOR THE COMMUNITY: City of Dubuque Signature richael Van riilligen City Manager Type or Prm Name, Title FOR IDED: Michael Miller, Investment Management FOR THE HOING BUSINESS: B & C Catj~edr I Development, L.L.C. 'Sig ature ~ ~, Type or Print Name, e FOR THE COMMUNITY: City Dubuque 1 ~ ~~ ,-~ ~,~ ~:~_ Roy uol, Mayor k HEZ Format revised 10/2005 Chad Walsh B & C Cathedral Development, L.L.C. 600 Star Brewery Drive, STE 300 Dubuque,lA 52001 RE: Enterprise Zone Program, Housing component Agreement # 09-HEZ-008 Dear P~lr. Walsh: Enclosed is a copy of the unsigned amendment to the agreement authorizing the housing business, B & C Cathedral Development, L.L.C., to receive Enterprise Zone benefits. This agreement must be signed by representatives from the business, City of Dubuque, and the Iowa Department of Economic Development in order for B & C Cathedral Development, L.L.C. to receive Enterprise Zone benefits. Please have an official of the City of Dubuque and an official of B & C Cathedral Development, L.L.C., review it, sign it, and send the agreement amendment to me. When all the necessary signatures have been obtained, I will send you a copy of the executed agreement for your files. If you have any questions about the agreement, please do not hesitate to contact me. For questions on your actual project please contact Kent Powell at 515.725.3037. Also please return the original Iowa Tax Credit Certificate to me. Once we have the signed amendment at original ITC we will issue you an amended Iowa Tax Credit Certificate so you may have that document when you file the housing business's tax return. Also note that Kent Powell has recalculated a slightly lower value of the ITC $343,500 vs $350,000 due to an error on our part that required us to subtract out the value of the Federal Historic Tax Credits. As the ITC in our initial calculation is an estimate, the final value will depend on final rehabilitation costs. The maximum possible ITC is capped at $350,000 for 25 units. Sincerely, _ _ / ~'~ / Tim Metz Contract and Compliance Manager encs cc: Aaron DeJong, City of Dubuque file ChesterJ.Culver,Governor IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT PattyJudge,LieutenarrtGovernor Richard Oshlo, Interim Director 200 East Grand Avenue, Des Moines, Iowa USA 50309 Phone: 515.725.3000 Fax:515.725.3010 vvvuvv.iowalifechanging.com ;~'.~