Walter Development, LLC / Duluth Holdings, Inc._PULLED FROM AGENDACopyrighted
March 23, 2020
City of Dubuque Items to be set for Public Hearing # 1.
ITEM TITLE: Walter Development, LLC / Duluth Holdings, Inc. -
Amended & Restated Development Agreement
SUMMARY: City Manager recommending that the City Council set a
public hearing for April 6, 2020, for approval of an
Amended and Restated Development Agreement by and
among the City of Dubuque, Walter Development, LLC,
and Duluth Holdings, Inc.
RESOLUTION Intent to dispose of an interest in City of
Dubuque real estate pursuant to an amended and Restated
Development Agreement by and among the City of
Dubuque, Walter Development, LLC, and Duluth Holdings,
Inc., fixing the date for a public hearing of the City Council
of the City of Dubuque, Iowa on the Amended and
Restated Development Agreement including the proposed
issuance of Urban Renewal Tax Increment Revenue Grant
Obligations, and providing for the publication of notice
thereof
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s), Set Public Hearing for April 6, 2020
ATTACHMENTS:
Description Type
Walter Development -Duluth Holdings Amended and City Manager Memo
Restated Development Agreement-MVM
Staff Memo Staff Memo
Notice of Hearing Supporting Documentation
Resolution Setting Public Hearing Resolutions
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
bitil
All-A.aia City
111111
2007.2012.2013
2017*2019
SUBJECT: Resolution Setting a Public Hearing for the Amended and Restated
Development Agreement by and among the City of Dubuque, Walter
Development, LLC, and Duluth Holdings, Inc.
DATE: March 20, 2020
Economic Development Director Jill Connors recommends the City Council set a public
hearing for April 6, 2020, for approval of an Amended and Restated Development
Agreement by and among the City of Dubuque, Walter Development, LLC, and Duluth
Holdings, Inc.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
/-.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Jill M. Connors, Economic Development Director
WIC
Masterpiece on the Mississippi
Dubuque
bittd
AII•America City
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111111
2007*2012*2013
2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
Economic Development
Department
50 West 13th Street
Dubuque, Iowa 52001-4864
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
SUBJECT: Resolution Setting a Public Hearing for the Amended and Restated
Development Agreement by and among the City of Dubuque, Walter
Development, LLC, and Duluth Holdings, Inc.
DATE: March 20, 2020
INTRODUCTION
This memorandum presents for City Council consideration and action the attached
resolution setting a public hearing on April 6, 2020 for the approval of an Amended and
Restated Development Agreement by and among the City of Dubuque, Walter
Development, LLC, and Duluth Holdings, Inc.
BACKGROUND
Walter Development, LLC is a local company that has successfully built and occupied
several properties in Dubuque's Industrial Center West, providing services for other
local companies such as John Deere.
In 2019 Walter Development, LLC negotiated leases with two companies, Duluth
Holdings, Inc. and Crown Holdings, looking to relocate operations to the City of
Dubuque. Those two companies collectively agreed to add at least 116 new jobs to the
community. The companies agreed to lease space at Walter Development's property at
7500 Chavenelle Road. In order to accommodate these two new lessees, Walter
Development, LLC entered into a Development Agreement with the City of Dubuque in
November 2019 to construct an industrial building further east of the 7500 Chavenelle
Road property along Chavenelle Road and to relocate its staff in the new building (5955
Chavenelle Road).
Walter Development, LLC has begun to construct the facility of approximately 216,000
square feet at an estimated cost of $9,000,000, as well as a stormwater detention
facility which will serve adjacent properties.
Because a portion of the land Walter Development, LLC acquired had already been
graded by the City for a different anticipated project, and other portions had not been
graded, the Development Agreement provided for different pricing for graded versus
ungraded land, described as Parcel A and Parcel B in the Agreement.
The Development Agreement provided 10 years of Tax Increment Financing (TIF)
rebates, plus an additional 4 years, for a total of 14 years of TIF rebates which includes
costs incurred by the City to finance this urban renewal project. The Development
Agreement also provides a land acquisition grant in order to incentivize this project.
DISCUSSION
Duluth Holdings, Inc.had tremendous success in its initial year in Dubuque, hiring a core
team of fulltime staff as well as several hundred seasonal employees. Duluth Holdings,
Inc. now wishes to grow its distribution operations as well as automate its facility. Doing
so at the 7500 Chavenelle location would create logistical difficulties. In order to
facilitate the company's growth, Walter Development, LLC began discussions with the
company about the possibility of having Duluth Holdings, Inc. install its automated
equipment at 5955 Chavenelle, and to move its distribution operations to that location
after the installation is complete.
The companies have tentatively agreed to enter into a lease for the 7500 Chavenelle
location in order to accommodate Duluth Holdings, Inc's planned growth. To facilitate
Duluth Holdings, Inc's needs at that location, Walther Development, LLC has requested
to purchase additional property from the City, as well as assign its rights and obligations
as an employer in the original Development Agreement to Duluth Holdings, Inc..
The attached Amended and Restated Development Agreement provides for the
disposition of 0.77 acres of City -owned property, increases the Minimum Improvements
from $9 million to $16 million, and transfers the first 10 years of TIF rebates to Duluth
Holdings, Inc. Duluth Holdings, Inc. will retain Twelve (12) fulltime employees.
The rest of the terms and conditions remain as they were in the original Development
Agreement.
RECOMMENDATION/ ACTION STEP
Based on this project's alignment with the City Council's goal of having a robust local
economy, I recommend the City Council adopt the attached resolution to set a public
hearing on April 6, 2020 on the attached Amended and Restated Development
Agreement with Walter Development, LLC and Duluth Holdings, Inc.
NOTICE OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA, ON THE APPROVAL OF AN AMENDED AND RESTATED
DEVELOPMENT AGREEMENT BY AND AMONG WALTER DEVELOPMENT, LLC
AND DULUTH HOLDINGS, INC. PROVIDING FOR THE SALE OF CITY -OWNED REAL
ESTATE TO WALTER DEVELOPMENT, LLC AND AUTHORIZATION FOR THE
ISSUANCE OF URBAN RENEWAL TAX INCREMENT REVENUE GRANT
OBLIGATIONS PURSUANT TO THE DEVELOPMENT AGREEMENT
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque,
Iowa, will hold a public hearing on the 6th day of April, 2020, at 6:30 p.m. in the
City Council Chambers at the Historic Federal Building, 350 W. 6th St., Dubuque,
Iowa, at which meeting the City Council proposes to take action to approve an
Amended and Restated Development Agreement by and among Walter
Development, LLC, and Duluth Holdings, Inc., a copy of which is now on file at the
Office of the City Clerk, City Hall, 50 W. 13th Street, Dubuque, Iowa, providing for the
sale of City -owned real estate and the issuance of economic development grants
(Urban Renewal Tax Increment Revenue Grant Obligations) described therein in
order to carry out the purposes and objectives of the Urban Renewal Plan for the
Dubuque Industrial Center Economic Development District, consisting of the
funding of economic development grants for Walter Development, LLC and Duluth
Holdings, Inc., under the terms and conditions of the Urban Renewal Plan for the
Dubuque Industrial Center Economic Development District. The aggregate amount
of the Urban Renewal Tax Increment Revenue Grant Obligations cannot be
determined at the present time, but is not expected to exceed $2,630,000.
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,
authorize such land disposition and the issuance of the Urban Renewal Tax Increment
Revenue Grant Obligations or 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 Chapter 403 of the Code of Iowa.
Copies of supporting documents for the public hearing are on file in the City Clerk's Office,
City Hall, 50 W. 13th St., Dubuque, Iowa, and may be viewed during normal working hours.
Agendas can be accessed at https://www.cityofdubuque.org/Agendas.
Written comments regarding the above public hearing should be submitted to the City
Clerk's Office, 50 W. 13th St., Dubuque, IA 52001, ctyclerk@cityofdubuque.org, on or
before said time of public hearing. At said time and place of public hearings all interested
citizens and parties will be given an opportunity to be heard for or against said proposal.
Individuals with limited English proficiency, vision, hearing or speech impairments or
requiring special assistance should contact the City Clerk's Office at (563) 589-4100,
TDD/TTY (563) 690-6678, ctyclerk@cityofdubuque.org as soon as feasible. Deaf or hard -
of -hearing individuals can use Relay Iowa by dialing 711 or (800) 735-2942.
Dated this 23rd day of March, 2020.
Kevin S. Firnstahl
City Clerk of Dubuque, Iowa
Prepared by: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4393
Return to: Jill Connors, Economic Development, 1300 Main Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. -20
INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE
PURSUANT TO AN AMENDED AND RESTATED DEVELOPMENT AGREEMENT BY
AND AMONG THE CITY OF DUBUQUE, WALTER DEVELOPMENT, LLC, AND
DULUTH HOLDINGS, INC., FIXING THE DATE FOR A PUBLIC HEARING OF THE
CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA ON THE AMENDED AND
RESTATED DEVELOPMENT AGREEMENT INCLUDING THE PROPOSED
ISSUANCE OF URBAN RENEWAL TAX INCREMENT REVENUE GRANT
OBLIGATIONS, AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF
Whereas, the City of Dubuque, Iowa (City) is the owner of real property in the
Dubuque Industrial Center West totaling approximately 0.77 acres, referred to herein and
in Exhibit B-2 as Parcel C (the Property); and
Whereas, City, Walter Development, LLC, and Duluth Holdings, Inc. have entered
into an Amended and Restated Development Agreement, subject to the approval of the
City Council, pursuant to which City will convey the Property to Walter Development, LLC,
and Walter Development, LLC will construct on the Property and on real property
previously conveyed by City to Walter Development, LLC certain Improvements described
in the Amended and Restated Development Agreement (the Facility); and
Whereas, Duluth Holdings. Inc. will retain employees and employ new employees at
the Facility; and
Whereas, the City Council has tentatively determined that it would be in the best
interests of City to approve the Amended and Restated Development Agreement, including
the conveyance of the Property to Walter Development, LLC; and
Whereas, the Development Agreement provides for the issuance by City of
economic development grants to Duluth Holdings, Inc. and Walter Development, LLC,
032020ba1
referred to therein as Urban Renewal Tax Increment Revenue Grant Obligations, payable
from the tax increment revenues collected in respect of the Improvements to be
constructed by Walter Development, LLC in accordance with the Amended and Restated
Development Agreement, for the purpose of carrying out the objectives of an Urban
Renewal Plan as hereinafter described; and
Whereas, before said obligations may be approved, Chapter 403 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 which
meeting the City Council shall receive oral and/or written objections from any resident or
property owner of said City to such proposed action.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City of Dubuque intends to dispose of its interest in the
foregoing -described Property by Deed to Walter Development, LLC pursuant to the
proposed Amended and Restated Development Agreement.
Section 2. The City Clerk is hereby authorized and directed to cause this
Resolution and a notice to be published as prescribed by Iowa Code Section 364.7 of a
public hearing on the City's intent to dispose of the foregoing -described Property, to be held
on the 6th day of April, 2020 at 6:30 p.m. in the City Council Chambers at the Historic Federal
Building, 350 W. 6th Street, Dubuque, Iowa.
Section 3. The City Council will also meet at said time and place for the purpose
of taking action on the matter of authorizing Urban Renewal Tax Increment Revenue
obligations and the execution of the Amended and Restated Development Agreement
relating thereto with Walter Development, LLC and Duluth Holdings, Inc., the proceeds of
which obligations will be used to carry out certain of the special financing activities described
in the Urban Renewal Plan for the Dubuque Industrial Center Economic Development
District, consisting of the funding of economic development grants to Walter Development,
LLC and Duluth Holdings, Inc. pursuant to the Amended and Restated Development
Agreement 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 approximately
$2,630,000.
Section 4. The City 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 disposal of the City's interest in the Property and the issuance of said
obligations.
Section 5. That the notice of the proposed action shall be in substantially the
form attached hereto.
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Passed, approved and adopted this 23rd day of March, 2020.
Roy D. Buol, Mayor
Attest:
Kevin S. Firnstahl, City Clerk
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