Landover Corporation - Development Agreement (Radford Road URVA) Copyrighted
January 7, 2019
City of Dubuque Consent Items # 5.
IT EM T IT LE: Landover Corporation - Development Agreement
SUMMARY: City Manager recommending approval of the GrantAgreementfor
Urban Revitalization Area Designation between the City of
Dubuque and Landover Corporation, which requires the
acceptance of Housing Choice Vouchers in all units developed at
1895 Radford Road.
RESOLUTION Approving a DevelopmentAgreement by and
between the City of Dubuque, lowa and Landover Corporation,
providing for the issuance of Urban Revitalization Area Designation
for the Development of 1895 Radford Road
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File;Adopt Resolution(s)
ATTACHMENTS:
Description Type
Landover Corporation DevelopmentAgreement-MVM City Manager Memo
Memo
Staff Memo Staff Memo
Agreement Supporting Documentation
Resolution Resolutions
THE CITY OF Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Agreement for the Development of Affordable Senior Housing at 1895
Radford Road by Landover Corporation
DATE: December 28, 2018
Housing and Community Development Director Alexis Steger recommends City Council
approval of the Grant Agreement for Urban Revitalization Area Designation between the
City of Dubuque and Landover Corporation, which requires the acceptance of Housing
Choice Vouchers in all units developed at 1895 Radford Road.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen �� �
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Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Alexis M. Steger, Housing & Community Development Director
THE CITY OF Dubuque
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TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing & Community Development Director
DATE: December 28, 2018
RE: Agreement for the Development of Affordable Family Housing at 1895
Radford Road by Landover Corporation.
Introduction
This memorandum presents a review of the development being proposed by Landover
Corporation, and the agreement between the City of Dubuque and Landover
Corporation that requires the acceptance of Housing Choice Vouchers in all units
developed.
Background
Landover Corporation petitioned the city to establish an Urban Revitalization Area at
1895 Radford Road. This would allow the taxable value of the Urban Revitalization
Area to be frozen at its current level for up to ten years after the development of
affordable family housing.
The development plan provides for the construction of a 50-unit affordable residential
housing development for families. Landover Corporation is proposing a $10.5-million-
dollar project utilizing private financing, Tax Credit Equity, and Tax Abatement
incentives to finance the project. The urban revitalization tax exemption will show local
support for the project, which will strengthen Landover Corporations' Tax Credit
application to the lowa Finance Authority.
Prior to the City Council establishing the Urban Revitalization Area requested by
Landover Corporation, the attached agreement needs to be executed in order to
establish the requirement for the developer to accept Housing Choice Vouchers for all
units.
Source of Income Committee
In December 2014, the City Council approved formation of a Source of Income
Committee to conduct a two-year study examining the HCV program and its relationship
to fair housing, with a goal of identifying ways to enhance fair housing in Dubuque (see
Attachment C).
In February 2017, the Source of Income Committee ultimately recommended a
collective impact approach to adopt and implement a mix of educational, outreach, and
financial programs to increase housing provider participation in the HCV program.
These recommendations are found in the Comprehensive Plan:
• Adopt and implement a mix of educational / outreach programs to increase
participation in HCV program.
• Adopt and implement a mix of financial incentives / policies for creation of HCV
units throughout community.
Based on the Source of Income Committee recommendations, the City now requires
housing developers to accept HCV participants in conjunction with approval of an
affordable housing development agreement related to an urban revitalization plan.
The agreement attached satisfies this requirement.
Discussion
The City followed provisions and procedures of Chapter 404 for the preparation, public
comment period, and required number of public hearings prior to making the
recommendation to adopt the Urban Revitalization Area as requested by Landover
Corporation. The City did not receive a petition to hold a second public hearing on the
Urban Revitalization Plan within the 30-day notice period following the initial public
hearing.
At this time, the City Council is able to execute this agreement prior to the adoption of
the Urban Revitalization Plan and the establishment of the Urban Revitalization Area,
to meet the City Council's requirements for accepting Housing Choice Vouchers.
Recommendation/Action Step
I respectfully recommend that the City Council execute the agreement between the City
of Dubuque and Landover Corporation.
Cc: Maurice Jones, Economic Development Director
Jill Connors, Economic Development Director
Laura Carstens, City Planner
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Prepared by Alexis Steger, Housing & Community Devel., 350 W. 6th St., Suite 312, Telephone: 563-690-6072
Return to: Kevin Firnstahl, City Clerk Address: City Hall- 50 W. 13th St Telephone: 589-4121
RESOLUTION NO. 2-19
APPROVING A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF
DUBUQUE, IOWA AND LANDOVER CORPORATION. PROVIDING FOR THE
ISSUANCE OF URBAN REVITALIZATION AREA DESIGNATION FOR THE
DEVELOPMENT OF 1895 RADFORD ROAD
Whereas, it is the determination of the City Council that approval of the
Development Agreement, for development of the Property at 1895 Radford Road by
Landover Corporation. 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 by and between the City of Dubuque
and Landover Corporation, a copy of which is attached hereto, is hereby approved.
Section 2. That the Mayor is hereby authorized and directed to execute the
Development Agreement on behalf of the City of Dubuque and the City Clerk is authorized
and directed to attest to his signature.
Section 3. That the City Manager is authorized to take such actions as are
necessary to comply with the terms of the Development Agreement as herein approved.
Passed, approved and adopted this 7th day of January, 2019.,1
Attest:
Kevi S. Firnsta I, City Clerk
Roy D. Buol, Mayor
GRANT AGREEMENT
FOR URBAN REVITALIZATION AREA DESIGNATION
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
LANDOVER CORPORATION
THIS AGREEMENT (the "Agreement"), dated for reference purposes the 7th day
of January, 2019, by and between the CITY OF DUBUQUE, IOWA, a municipality
established pursuant to the Code of Iowa ("City") and acting under the authorization of
Chapter 404 of the Code of Iowa (the "Urban Revitalization Area Designation") and
Landover Corporation ("Developer").
WITNESSETH:
WHEREAS, in furtherance of the objectives of the Urban Revitalization Area
Designation, City has undertaken a program for the redevelopment of an area in City
known as the Radford Road Urban Revitalization Area (the "Area"), an urban revitalization
area established pursuant to the Urban Revitalization Area Designation; and
WHEREAS, Developer intends to construct a new building located on property
within the Area locally known as 1895 Radford Road, Dubuque, Iowa (the "Development
Property"), which shall include new construction, as more specifically detailed in
Developer's application to the Program; and
WHEREAS, Developer's construction of the Development Property is referred to
herein as the "Project"; and.
WHEREAS, Developer previously applied for city support for the Project from City
under the Program in the form of tax exemption for up to ten years, the terms of which
are set forth in this Agreement; and
WHEREAS, City believes that the development of the Development Property
pursuant to this Agreement and the fulfillment generally of this Agreement, are in the vital
and best interests of City and in accord with the public purposes and provisions of the
applicable state and local laws and requirements under which the foregoing project has
been undertaken and is being assisted.
NOW THEREFORE, in consideration of the promises and obligations of the parties
hereto, each of them does hereby covenant and agree with the others as follows:
SECTION 1. MINIMUM IMPROVEMENTS.
1.1. Developer shall improve the Development Property as follows:
The creation of 50 affordable family housing units.
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(the "Minimum Improvements"). The Minimum Improvements shall be completed in
substantial conformity with the scope and scale described Developer's application to the
Program.
1.2. Construction of Minimum Improvements. Developer shall complete all work with
respect to construction of the Minimum Improvements in conformance with all
requirements of the Program, this Agreement, and all federal, State, and local laws,
ordinances, and regulations.
SECTION 2. FURTHER COVENANTS OF DEVELOPER.
2.1. Operation of Development Property; Housing Vouchers. For and in consideration
of the Urban Revitalization Area Designation offered under this Agreement, during the
operation of the Development Property as a rental residential property, Developer shall
accept, or cause to be accepted, applications from prospective tenants with housing
vouchers (issued under the U.S. HUD's Section 8 voucher program or a similar program)
that are otherwise qualified prospective tenants.
2.2. Non -Discrimination. In carrying out the Project, Developer shall not discriminate
against any employee or applicant for employment or tenant because of race, religion,
color, sex, sexual orientation, gender identity, national origin, age, or disability.
SECTION 3. DOWNTOWN REHABILITATION GRANT PROGRAM.
3.1. Urban Revitalization Area Designation. For and in consideration of Developer's
request for City support in the form of Tax Exemption, City agrees, subject to the terms
and conditions set forth herein, to make the Designation described in Section 3.2, subject
to the terms and conditions of the designation, as stated herein.
3.2. Designation. City agrees to provide Developer the Designation prior to January
15th, 2019; however, the designation shall only be made after, (i) Developer's agreement
to complete the Minimum Improvements should the Project be undertaken, as required
by Section 1.2
SECTION 4. EVENTS OF DEFAULT; REMEDIES.
4.1. Events of Default Defined. Failure by Developer to substantially observe or
perform any covenant, condition, obligation, or agreement on its part to be observed or
performed under this Agreement shall be an "Event of Default."
4.2. Remedies on Default by Grant Recipient. Whenever any Event of Default 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 Grant Recipient of the Event of Default,
but only if the Event of Default has not been cured within thirty (30) days following such
notice, or if the Event of Default cannot be cured within thirty (30) days and Grant
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Recipient does not provide assurances to City that the Event of Default will be cured as
soon as reasonably possible thereafter:
(1) City may act to repeal the Urban Revitalization Area designation related to
the Development Property; or
(2) City may take any action, including legal, equitable, or administrative action,
which may appear necessary or desirable to enforce performance and observance
of any obligation, agreement, or covenant under this Agreement.
4.3. 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.
4.4. 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.
SECTION 5. MISCELLANEOUS.
5.1. Conflict of Interest. Developer represents and warrants that, to its best knowledge
and belief after due inquiry, no 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 a decision-making
process or gain insider information with regard to the Project, has had or shall have any
interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work
or services to be performed in connection with the Project, or in any activity, or benefit
therefrom, which is part of the Project at any time during or after such person's tenure.
5.2. Grants, Notices, and Demands. A notice, demand, or other communication under
this Agreement by any party to the other shall be sufficiently given or delivered if it is
dispatched by registered or certified mail, postage prepaid, return receipt requested, or
delivered personally, and
(1) In the case of Developer, is addressed or delivered personally to Landover
Corporation, 331 Oak Hill, Suite A, Lake Barrington, IL 60010; Attn: Richard Sova;
and
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(2) In the case of City, is addressed to or delivered personally to the City of
Dubuque at City Hall, 50 W. 13th Street, Dubuque, IA 52001; Attn: City Manager
and City Attorney.
or to such other designated individual or officer or to such other address as any party
shall have furnished to the other in writing in accordance herewith.
5.3. Titles of Sections. Any titles of the several parts and Sections of this Agreement
are inserted for convenience of reference only and shall be disregarded in construing or
interpreting any of its provisions.
5.4. Definitions. All capitalized terms used herein shall have the meaning defined
herein, unless a different meaning clearly appears from the context.
5.5. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall constitute one and the same instrument.
5.6. Governing Law. This Agreement shall be governed and construed in accordance
with the laws of the State of Iowa.
5.7. Amendment. This Agreement may not be amended except by a subsequent
writing signed by the parties hereto.
5.8. Successors and Assigns. This Agreement is intended to and shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and
assigns.
5.9. Termination Date. This Agreement shall terminate and be of no further force or
effect upon expiration of tax exempt status of the Project, unless the Agreement is
terminated earlier by the other terms of this Agreement.
5.10. No Third -Party Beneficiaries. No rights or privileges of either party hereto shall
inure to the benefit of any landowner, tenant, contractor, subcontractor, material supplier,
or any other person or entity, and no such landowner, tenant, contractor, subcontractor,
material supplier, or any other person or entity shall be deemed to be a third -party
beneficiary of any of the provisions contained in this Agreement.
5.11. Indemnification. Developer hereby agrees to defend, indemnify, and hold harmless
City against any claims made by Developer, or any third party relating to or arising out of
this Agreement, including costs, expenses, or attorneys' fees.
5.12. No Assignment; Non -Transferability. Following the execution of this Agreement
and until the Termination Date:
(1) Developer represents and agrees that it will not transfer, convey or make
any assignment of any of its rights or interests in the Development Property,
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Minimum Improvements, or this Agreement to any other party unless: (i) the
transferee partnership, corporation, or individual assumes in writing all of the
obligations of Developer under this Agreement, and (ii) City consents thereto in
writing in advance thereof; and
(2) Developer represents and agrees that it will not assign its rights or interests
in this Agreement, to any other party unless City consents thereto in writing in
advance thereof.
CITY OF DUBUQUE, IOWA LANDOVER CORPORATION
By: c\i)Dj
Roy D. Bu , Mayor Richard Sova
ATTEST:
Kevin . Firnstahl, City OIerk
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