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