Loading...
Dbq Area Ind. Devel. Agre AmendMEMORANDUM May 12, 2003 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:First Amendment to Development Agreement/Dubuque Area Industrial Development Corporation -Tax Increment Financing Economic Development Director Bill Baum recommends City Council approval of the First Amendment to Development Agreement between the City and Dubuque Area Industrial Development Corporation (DAIDC). The amendment provides for the issuance of tax increment revenue obligations to assist DAIDC's speculative building project at the Dubuque Industrial Center West. The amendment responds to DAIDC's request for a 10-year rebate of taxes paid on the new incremental value of their building. The spec building has been vacant until recently when DAIDC entered into a 3-year lease with a local import/export company, DDI, for a portion of the building. DDI currently employs 15 persons and expects to add 5 additional employees over the next two years. Since the building is no longer vacant, the property is not eligible for property tax exemption. The DDI lease will provide DAIDC a revenue stream to cover its debt service obligations, but it is insufficient to pay the estimated $31,500 increase in yearly property taxes. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager William Baum, Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM May 9, 2003 TO:Michael Van Milligen, City Manager FROM:William Baum, Economic Development Director SUBJECT:First Amendment to Development Agreement/Dubuque Area Industrial Development Corporation - Tax Increment Financing INTRODUCTION This memorandum presents for City Council consideration an amendment to the Development Agreement between the City and Dubuque Area Industrial Development Corporation (DAIDC). The amendment provides for the issuance of tax increment revenue obligations to assist DAIDC's speculative building project at the Dubuque Industrial Center West. A public hearing has been set for May 19, 2003. DISCUSSION On May 5, 2003, the City Council set for public hearing the First Amendment to Development Agreement (attached hereto). The amendment responds to DAIDC's request for a 10-year rebate of taxes paid on the new incremental value of their building. The spec building has been vacant until recently when DAIDC entered into a 3-year lease with a local import/export company, DDI, for a portion of the building. DDI currently employs 15 persons and expects to add 5 additional employees over the next two years. Since the building is no longer vacant, the property is not eligible for property tax exemption. The DDI lease will provide DAIDC a revenue stream to cover its debt service obligations, but it is insufficient to pay the estimated $31,500 increase in yearly property taxes. It is expected that the total reimbursement over the 10-year period would be approximately $315,000; however, it is not yet clear what impacts the legislation being considered by the Iowa Legislature may have on these resources. RECOMMENDATION I recommend that the City Council approve the attached First Amendment to Development Agreement by and between the City and Dubuque Area Industrial Development Corporation. ACTION STEP The action step for the City Council is to adopt the attached Resolution. attachments F:\USERS\Prn~hre\WPDOCS\LOAN DOC\DAIDC~amend.mem.doc CITY OF DUBUQUE, IOWA MEMORANDUM April 25, 2003 TO:Michael Van Milligen, City Manager FROM:William Baum, Economic Development Director SUBJECT:Tax Increment Financing for the Dubuque Area Industrial Development Corporation INTRODUCTION This memorandum presents for City Council review and approval a Resolution setting for public hearing the proposed issuance of tax increment revenue obligations for the Dubuque Area Industrial Development Corporation (DAIDC). The public hearing would be held on May 19, 2003. A letter from Rick Dickinson, on behalf of DAIDC, is attached requesting the tax increment financing assistance. BACKGROUND On October 25, 1999, the City Council approved a Development Agreement with DAIDC for the sale and development of Lot 1 in the Dubuque Industrial Center West for a 40,000 square foot speculative industrial building costing not less than $900,000. The DAIDC agreement did not require the corporation to create jobs except to make best efforts in that regard to sell or lease the property to an employer who would create new jobs or retain existing jobs in the community. The Development Agreement provided for an acquisition grant to DAIDC that was equal to the full price of the land with the stipulation that should DAIDC sell the developed property at a profit, the City would recoup a portion of the acquisition grant (land price). No other public financial assistance was provided to the project at that time. By 2001, DAIDC had still not sold the property and requested a property tax exemption on the building. State law allows the exemption for non-profit corporations owning vacant, speculative industrial properties. Currently, taxes are paid on the land value only, about $7,000 per year. DISCUSSION In 1999, DAIDC took a risk in developing and financing the industrial spec building project that was the inaugural development in the new west-side industrial park. The development of a spec building was part of an overall economic development marketing and recruitment strategy to spur new opportunities for the community. The project was also essential in helping the City win RISE funding for Chavenelle Drive. The building has been vacant until recently when DAIDC entered into a 3-year lease with a local import/export company, DDI, for a portion of the building. DDI currently employs 15 persons and expects to add 5 additional employees over the next two years. Since the building is no longer vacant, however, the property is no longer eligible for property tax exemption. The DDI lease will provide DAIDC funds to cover its debt service obligations but is insufficient to pay the estimated $31,500 increase in yearly property taxes. DAIDC has asked the City to support their project by approving the use of tax increment proceeds to make reimbursement to DAIDC of the actual new increment of property taxes that they will pay over the next ten (10) years. The total reimbursement from tax increment revenues over the ten (10) year period is expected to be $315,000, more or less. It is not clear yet what impacts legislation being considered by the Iowa Legislature may have on these resources. It is proposed that following the public hearing, the City Council would enter into a First Amendment to Development Agreement (attached for your review) with DAIDC that sets forth the terms for reimbursement of the TIF revenues generated from the property. The annual TIF reimbursement would apply only to DAIDC as owner of the property. RECOMMENDATION I recommend that the City Council adopt the attached Resolution setting a date for public hearing on the proposed use of tax increment proceeds to support DAIDC's speculative industrial building project in the Dubuque Industrial Center West. ACTION STEP The action step for the City Council is to adopt the attached Resolution. attachments F:\USERS~Pm~re\WPDOCS~_OANDOC~DAIDC\TIF.MEM.doc FIRST AMENDMENT TO DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the "Amendment"), made and executed as of this day of ,2003, by and between the CITY OF DUBUQUE, IOWA, a municipality (the "City"), acting under authorization of Chapter 403 of the .Code of Iow~, as amended (the "Urban Renewal Act") and DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION, an Iowa nonprofit corporation with its principal place of business in Dubuque, Iowa (Developer), WITNESSETH: WHEREAS, the above-identified parties have executed a certain Development Agreement dated October 25, 1999 pertaining to, interalia, the purchase, sale, development and use of certain real property located in the City of Dubuque, County of Dubuque, State of Iowa (the "Property") which is more fully described as: Lot 1 Dubuque Industrial Center West in the City of Dubuque; and WHEREAS, (the "Property"), which is located in the Dubuque Industrial Center Economic Development District (the "District"), has been so designated by City Council Resolution 478-97 as an Economic Development Area (the "Project Area") as defined by the Urban Renewal Law; and WHEREAS, the Developer has constructed a 40,000 square foot speculative industrial building at a cost of not less than Nine Hundred Thousand Dollars ($900,000) (the "Minimum improvements") on the Property for purposes of promoting and marketing economic development opportunities in the City of Dubuque; and WHEREAS, pursuant to Section 403.6(1) of the Iowa Code, and in conformance with the Amended and Restated Urban Renewal Plan for the Project Area adopted on November 17, 1997, the City has the authority to enter into contracts and agreements to implement the Urban Renewal Plan. NOW, THEREFORE, in consideration of the Development Agreement, the foregoing recitals, the mutual covenants, terms and conditions hereinafter set forth and other valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the City and the Developer do hereby agree to modify, amend and supplement the Development Agreement, as follows: 1. In furtherance of the goals and objectives of the Urban Renewal Plan for the Project Area and the Urban Renewal Law, the City agrees, subject to the Developer being and remaining in compliance with the terms of the Agreement, to make up to ten (10) consecutive annual payments (such payments being referred to collectively as the "Economic Development Grants") to the Developer, pursuant to Section 403.9 of the Urban Renewal Law, in amounts equal to the actual amount of tax increment revenues collected by the City (without regard to any averaging that may otherwise be utilized under Section 403.19 and excluding any interest that may accrue thereon prior to payment to the Developer) during the preceding twelve-month period in respect of the Minimum Improvements constructed by the Developer (the "Developer Tax Increments"). 2. To fund the Economic Development Grants, the City shall certify to the Dubuque County prior to December 1 of each year, commencing December 1, 2003, its request for the available Developer Tax Increments resulting from the assessments imposed by the County on the Minimum Improvements as of January I of that year, to be collected by the City as taxes are paid during the following fiscal year and which shall thereafter be disbursed to the Developer on June 1 of that fiscal year. (Example: If the City so certifies in December, 2003, the Economic Development Grant in respect thereof would be paid to the Developer on June 1, 2005). 3. The Economic Development Grants shall be payable from and secured solely and only by the Developer Tax Increments, which, upon receipt, shall be deposited and held in a special account created for such purpose and designated as the "DAIDC TIF Tax Increment Financing Account" of the City. The City hereby covenants and agrees to maintain its TIF ordinance in force during the term hereof and to apply the incremental taxes collected in respect of the Minimum Improvements and allocated to the DAIDC TIF Account to pay the Economic Development Grants, as and to the extent set forth in Section 1 hereof. The Economic Development Grants shall not be payable in any manner by other tax increment revenues or by general taxation or from any other City funds. The City makes no representation with respect to the amounts that may be paid to the Developer as the Economic Development Grants in any one year, and under no circumstances shall the City in any manner be liable to the Developer se long as the City timely applies the Developer Tax Increments actually collected and held in the DAIDC TIF Account (regardless of the amounts thereof) to the payment of the Economic Development Grants to the Developer as and to the extent described in this Section. 4. The City shall be free to use any and all tax increment revenues collected in respect of other properties within the Project Area, or any available Developer Tax Increments resulting from the termination of the annual Economic Development Grants under Section 1 hereof, for any purpose for which such tax increment revenues may lawfully be used pursuant to the provisions of the Urban Renewal Law, and the City shall have no obligations to the Developer with respect to the use thereof. 5. The Economic Development Grants described herein shall be paid only to the Developer and not to any of its successors or assigns. 6. The parties hereby ratify and reaffirm all terms and conditions of the Development Agreement which are not expressly modified, amended or supplemented herein and acknowledge and agree that the Development Agreement, as modified, amended and supplemented hereby, shall be and hereby is reinstated and shall continue in full force and effect for the duration and the extent therein provided. IN WITNESS WHEREOF, the parties have caused this First Amendment to Development Agreement to be executed by their respective duly authorized officers or representatives as of the date and year first above written. CiTY OF DUBUQUE, IOWA by: Terrance M. Duggan, Mayor by: Jeanne F. Schneider, City Clerk DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION by: Jeffrey Bullock, President F:\US ERS~°m~hre\WPDOCS\LOANDOC\DAIDC~DAamend.doc RESOLUTION NO. 176-03 AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT WITH DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION Whereas, the City Council of the City of Dubuque, Iowa, after public hearing, duly adopted an Urban Renewal Plan (the Plan) for the Dubuque Industrial Center Economic Development District (the District); and Whereas, the Plan provides.that the City may undertake special financing activities, including loans or grants to pdvate developers, to meet the objectives of the Plan and to encourage the development of the District; and Whereas, the City Council has determined, in accordance with Section 15A. 1 of the Iowa Code, that DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION is qualified to receive such loan or grant assistance to assist with the construction of its facility in the District; and Whereas, pursuant to published notice, the City Council has held a public hearing on the proposition of obligating Tax Increment Revenue to assist the DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION, and has considered and overruled any and all objections thereto; and Whereas, it is expected that the aggregate amount of the Tax Increment Revenue obligations will be $315,000, more or less, due to assessment increases and/or tax rate adjustments; and Whereas, a First Amendment to Development Agreement, hereto attached and by this reference made a part hereof, sets forth the terms and conditions of the disbursement of Tax Increment Revenue proceeds to the DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the First Amendment to Development Agreement by and between the City of Dubuque and DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPQRATION, attached hereto, is hereby approved. Section 2. That the Mayor and City Clerk are hereby authorized and directed to execute, on behalf of the City of Dubuque, Iowa, said First Amendment to Development Agreement. Passed, approved and adopted this 19th day of May 2003.//~~ Terrance M. Duggan, Mayor Attest: Jeanne F Schneider, City Clerk City Clerk F:\USERS~Pmyhre\WPDOCS%OAN DOC\DAIDC\TIF,res.doc MEMORANDUM April 28, 2003 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Tax increment Financing for the Dubuque Area Industrial Development Corporation On October 25, 1999, the City Council approved a Development Agreement with Dubuque Area Industrial Development Corporation (DAIDC) for the sale and development of Lot 1 in the Dubuque Industrial Center West for a 40,000 square foot speculative industrial building costing not less than $9003000. The DAIDC agreement did not require the corporation to create jobs except to make best efforts in that regard to sell or lease the property to an employer who would create new jobs or retain existing jobs in the community. The Development Agreement provided for an acquisition grant to DAIDC that was equal to the full pdce of the land with the stipulation that should DAIDC sell the developed property at a profit, the City would recoup a portion of the acquisition grant (land price). No other public financial assistance was provided to the project at that time. By 2001, DAIDC had not sold the property and requested a property tax exemption on the building. State law allows the exemption for non-profit corporations owning vacant, speculative industrial properties. Currently, taxes are paid on the land value only, about $7,000 per year. In 1999, DAIDC took a risk in developing and financing the industrial spec building project that was the inaugural development in the new west-side industrial park. The development of a spec building was part of an overall economic development marketing and recruitment strategy to spur new opportunities for the community. The project was also essential in helping the City win RISE funding for Chavenelle Ddve. The building has been vacant until recently when DAIDC entered into a 3-year lease with a local import/export company, DDI, for a portion of the building. DDI currently employs 15 persons and expects to add 5 additional employees over the next two years. Since the building is no longer vacant, however, the property is no longer eligible for property tax exemption. The DDI lease will provide DAIDC funds to cover its debt service obligations, but is insufficient to pay the estimated $31,500 increase in yeady property taxes. DAIDC has asked the City to support their project by approving the use of tax increment proceeds to make reimbursement to DAIDC of the actual new increment of property taxes that they will pay over the next ten years, which is expected to be approximately $315,000. Economic Development Director Bill Baum is recommending City Council approval of the issuance of tax increment revenue obligations for the Dubuque Area Industrial Development Corporation and that a public headng be set for May 19, 2003. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel William Baum, Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM April 25, 2003 TO:Michael Van Milligen, City Manager FROM:William Baum, Economic Development Director SUBJECT:Tax Increment Financing for the Dubuque Area Industial Development Corporation INTRODUCTION This memorandum presents for City Council review and approval a Resolution setting for public hearing the proposed issuance of tax increment revenue obligations for the Dubuque Area Industrial Development Corporation (DAIDC). The public hearing would be held on May 19, 2003. A letter from Rick Dickinson, on behalf of DAIDC, is attached requesting the tax increment financing assistance. BACKGROUND On October 25, 1999, the City Council approved a Development Agreement with DAIDC for the sale and development of Lot 1 in the Dubuque Industrial Center West for a 40,000 square foot speculative industrial building costing not less than $900,000. The DAIDC agreement did not require the corporation to create jobs except to make best efforts in that regard to sell or lease the property to an employer who would create new jobs or retain existing jobs in the community. The Development Agreement provided for an acquisition grant to DAIDC that was equal to the full price of the land with the stipulation that should DAIDC sell the developed property at a profit, the City would recoup a portion of the acquisition grant (land price). No other public financial assistance was provided to the project at that time. By 2001, DAIDC had still not sold the property and requested a property tax exemption on the building. State law allows the exemption for non-profit corporations owning vacant, speculative industrial properties. Currently, taxes are paid on the land value only, about $7,000 per year. DISCUSSION In 1999, DAIDC took a risk in developing and financing the industrial spec building project that was the inaugural development in the new west-side industrial park. The development of a spec building was part of an overall economic development marketing and recruitment strategy to spur new opportunities for the community. The project was also essential in helping the City win RISE funding for Chavenelle Drive. The building has been vacant until recently when DAIDC entered into a 3-year lease with a local import/export company, DDI, for a portion of the building. DDI currently employs 15 persons and expects to add 5 additional employees over the next two years. Since the building is no longer vacant, however, the property is no longer eligible for property tax exemption. The DDI lease will provide DAIDC funds to cover its debt service obligations but is insufficient to pay the estimated $31,500 increase in yearly property taxes. DAIDC has asked the City to support their project by approving the use of tax increment proceeds to make reimbursement to DAIDC of the actual new increment of property taxes that they will pay over the next ten (10) years. The total reimbursement from tax increment revenues over the ten (10) year period is expected to be $315,000, more or less. It is not clear yet what impacts legislation being considered by the Iowa Legislature may have on these resources. It is proposed that following the public hearing, the City Council would enter into a First Amendment to Development Agreement (attached for your review) with DAIDC that sets forth the terms for reimbursement of the TIF revenues generated from the property. The annual TIF reimbursement would apply only to DAIDC as owner of the RECOMMENDATION I recommend that the City Council adopt the attached Resolution setting a date for public hearing on the proposed use of tax increment proceeds to support DAIDC's speculative industrial building project in the Dubuque Industrial Center West. ACTION STEP The action step for the City Council is to adopt the attached Resolution. attachments F:\USERS~Pm~hre\WPDOCS\LOANDOC~DAIDC\TIF.MEM.doc April 25, 2003 Mr. William J. Baum Economic Development Director City of Dubuque 50 W. 13th Street Dubuque, Iowa 52001 Dear Bill: Please accept this request of the City of Dubuque for a 10 year TIF Rebate for the Dubuque Area Industrial Development Corporation (DAIDC) spec building located at 7425 Chavenelle Drive. Ttfis consideration by the city of Dubuque will allow DAIDC to cash flow the lease of this facility to DDI, Inc., a fast growing start-up company that projects a $1,300,000 payroll in 2003. The incentive will allow DDI, Inc. to lease 15,000 sq. ft. of warehousing space and 3,200 sq. ft. of office space at $4.12 per sq. ft. or $75,000 per year. The remaining 25,000 sq. ft of warehousing space will be leased to a second tenant. DDI, Inc. is an S Corporation started in Dubuque in 1999. The partners in this import/export company are Dr. J.B. Priest and Dr. Zhenhai Li. The 15 employees in Dubuque and 6 employees in Kent, Washington had a combined payroll in 2002 of $930,000 and DDI, Inc. projects they will hire five new Dubuque employees in the next 24 months for an annual payroll of $1,300,000 or an average of $50,000 per employee. DDI, Inc. custom designs import programs for manufacturers, retailers and ag equipment distributors with satellite offices in Japan and Europe. Under the lease purchase agreement, DAIDC is responsible for 100 ¼ of property taxes that presently run approximately $7,000 per year. Without TIF, DAIDC's property tax obligation will increase by over $31,000 per year. We appreciate the City's consideration of our request and we are excited about DDI, Inc.'s future here in the Greater Dubuque area. Should you have any questions regarding their project, please contact our office at 557-9049. Sincerely, Rick Dickinson Director RESOLUTION NO. FIXING THE DATE FOR A MEETING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA ON THE PROPOSED ISSUANCE OF URBAN RENEWAL TAX INCREMENT REVENUE OBLIGATIONS AND THE EXECUTION OF A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT RELATING THERETO WITH DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION, AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF. Whereas, it is deemed necessary and advisable that the City of Dubuque, Iowa, should issue Urban Renewal Tax Increment Revenue obligations, as authorized by Chapter 403 of the Code of Iowa, and to enter into a First Amendment to Development Agreement relating thereto with DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION, for the purpose of carrying out an Urban Renewal Project as hereinafter described; and Whereas, before said obligation may be approved, Section 403.9 of the Code of Iowa requires that the City Clerk publish a notice of the proposal and of the time and place of the meeting at which the City Council proposes to take action thereon and at resident or prope~y owner of said Ci~ to such proposed action. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City Council meet in the Auditorium of the Carnegie-Stout Public Library in Dubuque, Iowa, at 6:30 p.m. on the 19th day of May, 2003, for the purpose of taking action on the matter of the issuance of Urban Renewal Tax Increment Revenue obligations and the execution of a First Amendment to Development Agreement relating thereto with DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION, the proceeds of which will be used to carry out certain of the special financing activities described in the Dubuque Industrial Center Urban Renewal Plan, consisting of the funding of economic developments grants to DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION pursuant to a First Amendment to Development Agreement entered into with DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION under the terms and conditions of said Urban Renewal Plan. It is expected that the aggregate amount of the Tax Increment Revenue obligations will be $315,000, more or less, due to assessment increases and/or tax rate adjustments. Section 2. That the Clerk is hereby directed to cause at least one publication to be made of a notice of said meeting, in a newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in said City, said publication to be not less than four days nor more than twenty days before the date of said meeting on the issuance of said obligations. Section 3. That the notice of the proposed action to issue said obligations shall be in substantially the form attached hereto. Passed, approved and adopted this 5th day of May 2003. Terrance M. Duggan Mayor Attest: Jeanne F. Schneider CkS, J~ NOTICE OF A MEETING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF URBAN RENEWAL TAX INCREMENT REVENUE OBLIGATIONS AND THE EXECUTION OF A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT RELATING THERETO WITH DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION, AND THE HEARING ON THE ISSUANCE THEREOF. PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will hold a public hearing on the 19th day of May 2003, at 6:30 p.m. in the Carnegie-Stout Public Library Auditorium, 360 West 11th Street, Dubuque, Iowa, at which meeting the City Council proposes to take action for the issuance of Urban Renewal Tax Increment Revenue Obligations and the execution of a First Amendment to Development Agreement relating thereto with DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION, in order to carry out certain of the special financing activities in the Dubuque Industrial Center Urban Renewal Plan, consisting of the funding of economic development grants to DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION pursuant to a First Amendment to Development Agreement entered into with DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION under the terms and conditions of said Urban Renewal Plan. It is expected that the aggregate ~.m~.r~t ~nf~he Tax ]ncrem~e~nt .R_e_v~n~t~_obJk'j~ti~n_s wilLh~_~3~%~QO_O,_m~e~r Jes~ to assessment increases and/or tax rate adjustments. At the meeting, the City Council will receive oral and written objections from any resident or property owner of said City to the above action. After all objections have been received and considered, the City Council may at this meeting or at any adjournment thereof, take additional action for the issuance of such Tax Increment Revenue Obligations or will abandon the proposal. By order of the City Council said , hearing and appeals therefrom shall be held in accordance with and governed by the provisions of Section 403.9 of the Code of Iowa. This notice is given by order of the City Council of the City of Dubuque, Iowa, as provided by Sections 403.9 of the Code of Iowa. Dated this day of 2003. Jeanne F. Schneider City Clerk of Dubuque, Iowa FIRST AMENDMENT TO DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the "Amendment"), made and executed as of this day of ,2003, by and between the CITY OF DUBUQUE, IOWA, a municipality (the "City"), acting under authorization of Chapter 403 of the Code o£1owa, as amended (the "Urban Renewal Act") and DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION, an Iowa nonprofit corporation with its principal place of business in Dubuque, Iowa (Developer), WITNESSETH: WHEREAS, the above-identified parties have executed a certain Development Agreement dated October 25, 1999 pertaining to, interalia, the pumhase, sale, development and use of certain real pro~,~,.~ ~d m ~J3e ~ ~-'~u..m.~que, County~f O~q~., -State ~of J ~,~.~a ~.~ "~D~ ~)~,~Hch~ ~ is more fully described as: Lot 1 Dubuque Industrial Center West in the City of Dubuque; and WHEREAS, (the "Property"), which is located in the Dubuque Industrial Center Economic Development District (the "District"), has been so designated by City Council Resolution 478-97 as an Economic Development Area (the "Project Area") as defined by the Urban Renewal Law; and WHEREAS, the Developer has constructed a 40,000 square foot speculative industrial building at a cost of not less than Nine Hundred Thousand Dollars ($900,000) (the "Minimum Improvements") on the Property for purposes of promoting and marketing economic development opportunities in the City of Dubuque; and WHEREAS, pursuant to Section 403.6(1) of the Iowa Code, and in conformance with the Amended and Restated Urban Renewal Plan for the Project Area adopted on November 17, 1997, the City has the authority to enter into contracts and agreements to implement the Urban Renewal Plan. NOW, THEREFORE, in consideration of the Development Agreement, the foregoing recitals, the mutual covenants, terms and conditions hereinafter set forth and other valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the City and the Developer do hereby agree to modify, amend and supplement the Development Agreement, as follows: 1. In furtherance of the goals and objectives of the Urban Renewal Plan for the Project Area and the Urban Renewal Law, the City agrees, subject to the Developer being and remaining in compliance with the terms of the Agreement, to make up to ten (10) consecutive annual payments (such payments being referred to collectively as the "Economic Development Grants") to the Developer, pursuant to Section 403.9 of the Urban Renewal Law, in amounts equal to the actual amount of tax increment revenues collected by the City (without regard to any averaging that may otherwise be utilized under Section 403.19 and excluding any interest that may accrue thereon prior to payment to the Developer) during the preceding twelve-month period in respect of the Minimum Improvements constructed by the Developer (the "Developer Tax Increments"). 2. To fund the Economic Development Grants, the City shall certify to the Dubuque County prior to December 1 of each year, commencing December 1, 2003, its request for the available Developer Tax Increments resulting from the assessments imposed by the County on the Minimum Improvements as of January 1 of that year, to be collected by the City as taxes are paid during the following fiscal year and which shall thereafter be disbursed to the Developer on June 1 of that fiscal year. (Example: If the City so certifies in December, 2003, the Economic Development Grant in respect thereof would be paid to the Developer on June 1, 2005). 3. The Economic Development Grants shall be payable from and secured solely and only by the Developer Tax Increments, which, upon receipt, shall be deposited and held in a special account created for such purpose and designated as the "DAIDC TIF Tax Increment Financing Account" of the City. The City hereby covenants and agrees to maintain its TIF ordinance in force during the term hereof and to apply the incremental taxes collected in respect of the Minimum Improvements and allocated to the DAIDC TIF Account to pay the Economic Development Grants, as and to the extent set forth in Section 1 hereof. The Economic Development Grants shall not be payable 'in any manner by other tax increment revenues or by general taxation or from any other City funds. The City makes no representation with respect to the amounts that may be paid to the Developer as the Economic Development Grants in any one year, and under no circumstances shall the City in any manner be liable to the Developer so long as the City timely applies the Developer Tax Increments actually collected and held in the DAIDC TiF Account (regardless of the amounts thereof) to the payment of the Economic Development Grants to the Developer as and to the extent described in this Section. 4. The City shall be free to use any and all tax increment revenues collected in respect of other properties within the Project Area, or any available Developer Tax Increments resulting from the termination of the annual Economic Development Grants under Section 1 hereof, for any purpose for which such tax increment revenues may lawfully be used pursuant to the provisions of the Urban Renewal Law, and the City shall have no obligations to the Developer with respect to the use thereof. 5. The Economic Development Grants described herein shall be paid only to the Developer and not to any of its successors or assigns. 6. The parties hereby ratify and reaffirm all terms and conditions of the Development Agreement which are not expressly modified, amended or supplemented herein and acknowledge and agree that the Development Agreement, as modified, amended and supplemented hereby, shall be and hereby is reinstated and shall continue in full force and effect for the duration and the extent therein provided. IN WITNESS WHEREOF, the parties have caused this First Amendment to Development Agreement to be executed by their respective duly authorized officers or representatives as of the date and year first above written. CITY OF DUBUQUE, IOWA by: Terrance M. Duggan, Mayor by: Jeanne F. Schneider, City Clerk DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION by: Jeffrey Bullock, President F:\USERS\Prn~hre\WPDOCS~OANDOC~DAIDC\DAamend.doc RESOLUTION NO. AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT WITH DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION Whereas, the City Council of the City of Dubuque, Iowa, after public hearing, duly adopted an Urban Renewal Plan (the Plan) for the Dubuque Industrial Center Economic Development District (the District); and Whereas, the Plan provides that the City may undertake special financing activities, including loans or grants to private developers, to meet the objectives of the Plan and to encourage the development of the District; and Whereas, the City Council has determined, in accordance with Section 15A.1 of the Iowa Code, that DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION is qualified to receive such loan or grant assistance to assist ~th the construction of its facility in the District; and Whereas, pursuant to published notice, the CityCouncil has held a public hearing on the proposition of obligating Tax Increment Revenue to assist the DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION, and has considered and overruled any and all objections thereto; and _W~he~r_e_a_s~ itis e~q3ected that the agore(~ate amount ofthe Tax Increment Revenue obligations will be $315,000, more or less, due to assessment increases and/or taxrate adjustments; and Whereas, a First Amendment to Development Agreement, hereto attached and bythis reference made a part hereof, sets forth the terms and conditions ofthe disbursement of Tax Increment Revenue proceeds to the DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the First Amendment to Development Agreement by and between the City of Dubuque and DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION. attached hereto, is hereby approved. Section 2. That the Mayor and City Clerk are hereby authorized and directed to execute, on behalf of the City of Dubuque, Iowa, said First Amendment to Development Agreement. Passed, approved and adopted this 19th day of May 2003. Attest: Terrance M. Duggan Mayor Jeanne F. Schneider City Clerk F:\U S ERS',P m~hre\WP D OCS~LOAN DOC',DAIDC\TIFd aidc.doc RESOLUTION NO. AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT WITH DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION Whereas, the City Council of the City of Dubuque, Iowa, after public hearing, duly adopted an Urban Renewal Plan (the Plan) for the Dubuque Industrial Center Economic Dewlopment District (the District); and Whereas, the Plan provides that the City may undertake special financing activities, including loans or grants to pdvate developers, to meet the objectives of the Plan and to encourage the development of the District; and Whereas, the City Council has determined, in accordance with Section 15A. 1 of the Iowa Code, that DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION is qualified to receive such loan or grant assistance to assist with the construction of its facility in the District; and Whereas, pursuant to published notice, the CityCouncil has held a public hearing on the proposition of obligating Tax Increment Revenue to assist the DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION, and has considered and overruled any and all objections thereto; and Whereas, it is e~pected that the aggregate amount ofthe Tax Increment Revenue obligations will be $315,000, more or less, due to assessment increases and/or taxrate adjustments; and Whereas, a First Amendment to Development Agreement, hereto attached and bythis reference made a part hereof, sets forth the terms and conditions of the disbursement of Tax Increment Revenue proceeds to the DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION. NOW, THEREFORE, BE IT RESOLVED BYTHE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the First Amendment to Dewlopment Agreement by and between the City of Dubuque and DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION, attached hereto, is hereby approved. Section 2. That the Mayor and City Clerk are hereby authorized and directed to execute, on behalf of the City of Dubuque, Iowa, said First Amendment to Development Agreement. Passed, approved and adopted this 19th day of May 2003. Attest: Terrance M. Duggan Mayor Jeanne F. Schneider City Clerk F:\USERS\Prn~hre\WPDOCS\LOANDOC\DAIDC\TIFdaidc.doc FIRST AMENDMENT TO DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the "Amendment"), made and executed as of this day of ., 2003, by and between the CITY OF DUBUQUE, IOWA, a municipality (the "City"), acting under authorization of Chapter 403 of the Code of Iowa, as amended (the "Urban Renewal Act") and DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION, an Iowa nonprofit corporation with its principal place of business in Dubuque, Iowa (Developer), WITNESSETH: WHEREAS, the above-identified parties have executed a certain Development Agreement dated October 25, 1999 pertaining to, interalia, the purchase, sale, development and use of certain real property located in the City of Dubuque, County of Dubuque, State of Iowa (the "Property") which is more fully described as: Lot 1 Dubuque Industrial Center West in the City of Dubuque; and WHEREAS, (the "Property"), which is located in the Dubuque Industrial Center Economic Development District (the "District"), has been so designated by City Council Resolution 478-97 as an Economic Development Area (the "Project Area") as defined by the Urban Renewal Law; and WHEREAS, the Developer has constructed a 40,000 square foot speculative industrial building at a cost of not less than Nine Hundred Thousand Dollars ($900,000) (the "Minimum Improvements") on the Property for purposes of promoting and marketing economic development opportunities in the City of Dubuque; and WHEREAS, pursuant to Section 403.6(1) of the Iowa Code, and in conformance with the Amended and Restated Urban Renewal Plan for the Project Area adopted on November 17, 1997, the City has the authority to enter into contracts and agreements to implement the Urban Renewal Plan. NOW, THEREFORE, in consideration of the Development Agreement, the foregoing recitals, the mutual covenants, terms and conditions hereinafter set forth and other valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the City and the Developer do hereby agree to modify, amend and supplement the Development Agreement, as follows: 1. In furtherance of the goals and objectives of the Urban Renewal Plan for the Project Area and the Urban Renewal Law, the City agrees, subject to the Developer being and remaining in compliance with the terms of the Agreement, to make up to ten (10) consecutive annual payments (such payments being referred to collectively as the "Economic Development Grants") to the Developer, pursuant to Section 403.9 of the Urban Renewal Law, in amounts equal to the actual amount of tax increment revenues collected by the City (without regard to any averaging that may otherwise be utilized under Section 403.19 and excluding any interest that may accrue thereon prior to payment to the Developer) during the preceding twelve-month period in respect of the Minimum Improvements constructed by the Developer (the "Developer Tax Increments"). 2. To fund the Economic Development Grants, the City shall certify to the Dubuque County prior to December 1 of each year, commencing December 1, 2003, its request for the available Developer Tax Increments resulting from the assessments imposed by the County on the Minimum Improvements as of January 1 of that year, to be collected by the City as taxes are paid during the following fiscal year and which shall thereafter be disbursed to the Developer on June 1 of that fiscal year. (Example: If the City so certifies in December, 2003, the Economic Development Grant in respect thereof would be paid to the Developer on June 1, 2005). 3. The Economic Development Grants shall be payable from and secured solely and only by the Developer Tax Increments, which, upon receipt, shall be deposited and held in a special account created for such purpose and designated as the "DAIDC TIF Tax Increment Financing Account" of the City. The City hereby covenants and agrees to maintain its TIF ordinance in force during the term hereof and to apply the incremental taxes collected in respect of the Minimum Improvements and allocated to the DAIDC TIF Account to pay the Economic Development Grants, as and to the extent set forth in Section 1 hereof. The Economic Development Grants shall not be payable in any manner by other tax increment revenues or by general taxation or from any other City funds. The City makes no representation with respect to the amounts that may be paid to the Developer as the Economic Development Grants in any one year, and under no circumstances shall the City in any manner be liable to the Developer so long as the City timely applies the Developer Tax Increments actually collected and held in the DAIDC TIF Account (regardless of the amounts thereof) to the payment of the Economic Development Grants to the Developer as and to the extent described in this Section. 4. The City shall be free to use any and all tax increment revenues collected in respect of other properties within the Project Area, or any available Developer Tax Increments resulting from the termination of the annual Economic Development Grants under Section 1 hereof, for any purpose for which such tax increment revenues may lawfully be used pursuant to the provisions of the Urban Renewal Law, and the City shall have no obligations to the Developer with respect to the use thereof. 5. The Economic Development Grants described herein shall be paid only to the Developer and not to any of its successors or assigns. 6. The parties hereby ratify and reaffirm all terms and conditions of the Development Agreement which are not expressly modified, amended or supplemented herein and acknowledge and agree that the Development Agreement, as modified, amended and supplemented hereby, shall be and hereby is reinstated and shall continue in full force and effect for the duration and the extent therein provided. IN WITNESS WHEREOF, the parties have caused this First Amendment to Development Agreement to be executed by their respective duly authorized officers or representatives as of the date and year first above written. CITY OF DUBUQUE, IOWA by: Terrance M. Duggan, Mayor by: Jeanne F. Schneider, City Clerk DUBUQUE AREA INDUSTRIAL DEVELOPMENT CORPORATION by: Jeffrey Bullock, President F:\USERS\Pm~hre\WPDOCS\LOANDOC\DAIDC~DAamend.doc