Metx, LLC - Amendment to Development Agreement and Collateral Assignment Copyrighted
November4, 2019
City of Dubuque Consent Items # 13.
ITEM TITLE: Mefic, LLC -Amendmentto DevelopmentAgreementand
Collateral Assignment
SUMMARY: City Manager recommending approval of anAmendmentto
Development Agreement and Collateral Assignment of
Development Agreement changing the substantial
completion date to June 1 , 2020.
SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Approve
ATTACHMENTS:
Description Type
MebcAmendmentto De�lopmentAgreement-MVM City Manager Memo
Memo
Staff Memo Staff Memo
Amendmentto DevelopmentAgreement_Partially Supporting Documentation
Executed
Amendmentto DevelopmentAgreement Supporting Documentation
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amendment to Development Agreement and Collateral Assignment of
Development Agreement — Metx, LLC
DATE: October 30, 2019
City Attorney Crenna Brumwell recommends City Council approval of an Amendment to
the Metx, LLC Development Agreement and Collateral Assignment of Development
Agreement changing the substantial completion date to June 1 , 2020.
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
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To: Michael Van Milligen
City Manager
FRonn: Crenna Brumwell
City Attorney
Dare: October 30, 2019
Re: Amendment to Development Agreement and Collateral Assignment of
Development Agreement— Metx, LLC
The development agreement between the City of Dubuque and Metx, LLC, was approved
on October 12, 2017. The Agreement required the construction of the minimum
improvements be commenced within thirty (30) days after the Closing Date, and be
substantially completed by June 1 , 2019. Construction on the project was delayed and
the parties have agreed to amend the completion date for the construction to June 1,
2020.
Additionally, Mebc is scheduled to close on the financing and tax credits with Dubuque
Bank & Trust and its lender requires a Collateral Assignment of the Development
Agreement.
I propose that the attached Amendment to Development Agreement, changing the
substantial completion date to June 1 , 2020, and the Collateral Assignment of the
Development Agreement be forwarded to City Council for review and approval.
Enclosures
AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
METX, LLC
This Amendment to Development Agreement, dated for reference purposes the
'! day of /77 , 2019, is made and entered into by and between the City
of Dubuque, o (City) and Metx, LLC (Developer).,
Whereas, City and Developer previously entered into a Development Agreement
dated October 12,'2017,(the Development Agreement); and
Whereas, City and Developer have agreed to this Amendment to the
Development Agreement to modify the timing of the minimum improvements.
THEREFORE, in consideration of the mutual terms and covenants contained
herein, the parties agree as follows:
1. Section 2.3 of the Development Agreement is hereby amended to read as
follows:
2.3 Timing of Minimum Improvements. Developer hereby agrees that
construction of the Minimum Improvements on the City Property and the
Developer Property shall be commenced within thirty (30) days after the Closing
Date, and shall be substantially completed by June 1, 2020. 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 stakes, ether labor troubles, �n�rsual
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. The remaining provisions of the Development Agreement remain unchanged and
in force.
CITY OF DUBUQUE, IOWA METX, LLC
By:
By:
Its:
[SIGNATURE PAGE TO COLLATERAL ASSIGNMENT OF
DEVELOPMENT AGREEMENT]
THE CITY OF UBUQUE, IOWA
R
By:
Name:
Its:
Roy D. Buol
Mayor