CARich Properties, LLC - First Amendment to Development Agreement for 278 W. 17th StreetCopyrighted
May 18, 2020
City of Dubuque Consent Items # 12.
ITEM TITLE: CARich Properties, LLC - First Amendment to
Development Agreement for 278 W. 17th Street
SUMMARY: City Manager recommending approval of the First
Amendment to Development Agreement with CARich
Properties, LLC to redevelop property at 278 W. 17th
Street into a 30-unit residential complex affordable to low -
and moderate -income residents.
SUGGESTED DISPOSITION:
RESOLUTION Approving the First Amendment to
Development Agreement between the City of Dubuque,
Iowa and CARich Properties, LLC
Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description
CARich Properties First Amendment to Development
Agreement-MVM Memo
Staff Memo
1st Amendment to DA
Resolution of Approval
Type
City Manager Memo
Staff Memo
Supporting Documentation
Resolutions
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
All-A.aia City
111111
2007.2012.2013
2017*2019
SUBJECT: First Amendment to Development Agreement between the City of
Dubuque and CARich Properties, LLC to Redevelop Property at 278 W.
17th Street
DATE: May 13, 2020
Economic Development Director Jill Connors recommends City Council approval of the
First Amendment to Development Agreement with CARich Properties, LLC to redevelop
property at 278 W. 1 7th Street into a 30-unit residential complex affordable to
low/moderate income residents. The property was eligible to receive the Downtown
Rehabilitation Grants, but there was no funding in the grant program at that time.
Adequate funds for the Downtown Rehabilitation Grants became available in Fiscal
Year 2020. The amendment provides additional support to the project by including
Downtown Rehabilitation Grants in an amount not to exceed $35,000.
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
Masterpiece on the Mississippi
Dubuque
battEl
AII•America City
N• IK: '.I i]7(: I liM7Lil`
1 1p
2007*2012*2013
2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
Economic Development
Department
1300 Main Street
Dubuque, Iowa 52001-4763
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
SUBJECT: First Amendment to Development Agreement between the City of
Dubuque and CARich Properties, LLC to Redevelop Property at 278
W. 17th Street
DATE: May 10, 2020
INTRODUCTION
This memorandum presents for City Council consideration and action the attached
resolution approving a First Amendment to Development Agreement between the City of
Dubuque and CARich Properties, LLC.
BACKGROUND
On January 22, 2019, CARich Properties, LLC submitted an application to the
Economic Development office for fagade, planning & design, and financial consultant
grants (Downtown Rehabilitation Grants) as part of an incentive request for the
redevelopment of 278 W. 17th Street — a 30-unit residential complex affordable to
low/moderate income residents.
The proposed work would remediate past water intrusion hazards, add energy efficient
upgrades, drainage systems, heating/cooling systems, flooring, bathrooms, and kitchen
improvements, replace all windows throughout the building, add new roof, gutters, and
downspouts, new entry doors and transoms, and regrade the front area of the building
with new landscaping.
The property was eligible to receive the Downtown Rehabilitation Grants, but there was
no funding in the grant program at that time.
DISCUSSION
In the ensuing months, the Developer continued to work with City staff, and a
Development Agreement was drafted and executed May 20, 2019 to provide other
available incentives to assist the redevelopment of the 30-unit property.
Adequate funds for the Downtown Rehabilitation Grants became available in FY2020
and are needed to support the project, in order to keep the units affordable for the
residents.
The attached amendment provides additional support to the project by including
Downtown Rehabilitation Grants in an amount not to exceed $35,000.
RECOMMENDATION/ ACTION STEP
As the project is creating quality, affordable housing in our downtown area, I respectfully
request City Council approval of the attached resolution approving the First Amendment
to Development Agreement between the City of Dubuque, Iowa and CARich Properties,
LLC.
2
Prepared by: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393
Return to: Jill Connors, Economic Development, 50 W. 13th Street, Dubuque IA 52001, 563 589-4393
RESOLUTION NO. 149-20
APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF DUBUQUE, IOWA AND CARICH PROPERITES, LLC
WHEREAS, the City of Dubuque (City) and CARich Properties, LLC (Developer)
previously entered into a Development Agreement dated May 20, 2019, for the
redevelopment of 278 W. 17th Street in the City of Dubuque, Iowa (the Project); and
WHEREAS, the Project is eligible for Downtown Rehabilitation Grants; and
WHEREAS, funding for Downtown Rehabilitation Grants is now available; and
WHEREAS, City and Developer desire to amend the Development Agreement as
forth in the attached First Amendment to Development Agreement to provide additional
funds to the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA THAT:
Section 1. The First Amendment to Development Agreement by and between the City
of Dubuque and CARich Properties, LLC., a copy of which is attached hereto, is hereby
approved.
Section 2. The Mayor is hereby authorized and directed to execute the First
Amendment to Development Agreement on behalf of the City of Dubuque and the City
Clerk is authorized and directed to attest to his signature.
Section 3. The City Manager is authorized to take such actions as are necessary to
comply with the terms of the First Amendment to Development Agreement as herein
approved.
Passed, approved and adopted this 18th day of May, 2020.
lb‘„/
Roy D. Buol, Mayor
Attest:
Kevin S. Firnstahl, City Clerk
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
CARICH PROPERTIES, LLC
his First Amendment to Development Agreement, dated for reference purposes
the / %day of , 2020, is made and entered into by the City of Dubuque,
Iowa, a municipality (city), established pursuant to the Iowa Code and acting under
authorization of Iowa Code Chapter 403, as amended (the Urban Renewal Act), CARich
Properties, LLC (Developer).
WHEREAS, City and Developer previously entered into a Development
Agreement dated May 20, 2019 (the Development Agreement); and
WHEREAS, the project is eligible for additional rehabilitation incentives; and
WHEREAS, City and Developer desire to amend the Development Agreement as
set forth herein.
NOW THEREFORE, in consideration of the mutual terms and covenants
contained herein, City and Developer agree as follows:
1. Section 3 of the Development Agreement is amended by adding the
following language:
3.5 Facade Grant. City agrees to provide Developer a grant not to
exceed Ten Thousand Dollars ($10,000) for documented costs that improve
the overall appearance of the Property, provided the Project as completed
meets the criteria of the Facade Grant Program. The final amount of the
Facade Grant shall be determined following City's review of documentation
submitted by Developer showing the eligible expenses (as applicable to the
particular grant) and shall each be in an amount equal to $0.50 for each
$1.00 of eligible expenses incurred by Developer within the scope of the
Project's approved application, up to the maximum amounts stated below.
3.6. Planning & Design Grant. City agrees to provide Developer a grant
not to exceed Ten Thousand Dollars ($10,000) to reimburse Developer for
documented predevelopment costs, architectural and engineering fees and
other authorized soft costs associated with the rehabilitation of the Property
on the terms and conditions set forth in the Design Letter attached as Exhibit
G.
051 220cmb
3.7. Financial Consultant Grant. City agrees to provide a matching (1:1)
grant not to exceed Fifteen Thousand Dollars ($15,000) to reimburse
Developer for documented costs related to hiring a financial consultant to
evaluate the Project's feasibility.
3.8. Payment of the Grants. The Grants shall be payable as follows:
(1) Any and all portions of a Grant shall be funded solely and only
from available Program funds;
(2) Prior to the release of any Grant funds (i) Developer shall have
submitted documentation of its eligible expenses under the
corresponding grant program, and (ii) City shall have determined that
the Project is substantially complete as provided in Section 1.2; and
(3)
The Grant funds shall be disbursed directly to Developer.
2. Except as modified herein, the Development Agreement shall remain in full
force and effect.
CITY OF DUBUQUE, IOWA CARICH PROPERTIES, LLC
By:
Roy P/ = uol, Mayor
B
ehris Rich
anaag�ifig Member
2
EXHIBIT G
DESIGN LETTER
3
Dubuque
Masterpiece on the Mississippi r7013:20"127
MEMORANDUM
TO: Jill Connors, Economic Development Project Coordinator
FROM: Chris Happ Olson, Assistant Planner ell-P
SUBJECT: Facade Grant: 278 W. 17th Street- The Howie Block
DATE: June 24, 2019
Introduction
This memorandum forwards the requested design review for work funded with a Facade
Grant for the property located at 278 W. 17th Street The Howie Block.
Background
The project is in the following Jackson Park districts: Conservation, Urban
Revitalization, Local Historic and National Register Historic Districts. The City of
Dubuque Architectural Guidelines, Secretary of the Interior Standards for Rehabilitation
and applicable Technical Preservation Services Preservation Briefs published by the
National Park Service apply to this project.
Discussion
The scope of work is recommended for approval, provided it aligns with work reviewed
and signed off by Planning Services Department on January 17, 2019, as part of the
commenting process for the Section 106 review and comment. We recommend this
Facade Grant payment be contingent upon approval by the State Historic Preservation
Office as required by the Section 106 process.
Requirement
The project, if done in accordance with the described scope of work and drawings will
meet the applicable guidelines and standards and is recommended for approval in
terms of design review. Any deviation from the approved scope of work must be
reviewed and approved by the Economic Development and Planning Services
Departments prior to initiation. It is the property owner's responsibility to read and
understand the terms of approval as well as ensure compliance with the project
requirements. It is the property owner's responsibility to obtain the necessary
building permits prior to starting work. It is the property owner's responsibility to
ensure all contractors understand and properly execute all expectation of the
4
project. Failure to comply with the approved scope of work will result o eiture
of all funding.
2
5
Masterpiece on the Mississippi
BARRY A. LINDAHL, ESQ.
SENIOR COUNSEL
Dubuque
bland
Morita City
ln<ILnLL<]<ti 1,41,
1111111
2007.2012.2013
2017*2019
MEMO
To: Dubuque County Recorder
DATE: May 18, 2020
RE: Memorandum of Development Agreement / CARich Properties, LLC
Enclosed for recording is a Memorandum of Development Agreement by an among the
City of Dubuque, Iowa, and CARich Properties, LLC. The recording fee should be charged
to the City of Dubuque City Clerk's Office.
Please feel free to contact me at (563) 583-4113 if you have any questions regarding this
matter.
Thank you.
BAL:tls
Enclosure
cc: Jill Connors, Economic Development Director (no enc.)
Kevin Firnstahl, City Clerk (no enc.)
F:\Users\tsteckle\Lindahl\Memos\DubuqueCountyRecorder_RecordCARichMemoOfDA_051820.docx
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563) 583-4113 / FAX (563) 583-1040 / EMAIL balesq@cityofdubuque.org
u
OIu
011
u
11110111
IU 10011
I
i
u
i
Doc ID: 010489460002 Type GEN
Kind: AGREEMENT
Recorded: 05/19/2020 at 12:43:13 PM
Fee Amt: $12.00 Page 1 of 2
Dubuque County Iowa
John Murphy Recorder
Fi1e2020-00006520
Prepared by: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
Return to: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
MEMORANDUM OF DEVELOPMENT AGREEMENT
A Development Agreement by and among the City of Dubuque, Iowa, an Iowa municipal
corporation, and CARich Properties, LLC, was made regarding the following described premises:
The Middle One -fifth of Out Lot 473; Lot 1 of Lot 2 of the North Two -fifths of Out Lot 473; Lot 2 of
Lot 2 of the North Two -fifths of Out Lot 473; Lot 1 of Lot 1 of Lot 1 of the North Two -fifths of Out Lot 473;
Lot 2 of Lot 1 of Lot 1 of the North Two -fifths of Out Lot 473; Lot 1 of Lot 2 of Lot 1 of the North Two -fifths
of Out Lot 473; and Lot 2 of Lot 2 of Lot 1 of the North Two -fifths of Out Lot 473; Subject to right of way for
foot passage as described in Warranty Deed recorded in Book 119TL page 346, and subject to Easement
filed January 30, 1981 as Instrument #583-81, records of Dubuque County, Iowa, and Lot 2 of Lot 6 of Out
Lot 671; Lot 1 of Lot 6 of Out Lot 671; and The East One-half of Lot 2 of Lot 1 of Lot 4 of Out Lot 671; all in
the City of Dubuque, Iowa, according to the recorded plats of said respective Subdivisions. (Out Lots in the
City of Dubuque, Iowa are also sometimes known, called and described as City Lots and/or as Town Lots
in the City of Dubuque, Iowa).
The Development Agreement is dated for reference purposes the 20th day of May, 2019, and
contains covenants, conditions, and restrictions concerning the sale and use of said premises.
This Memorandum of Development Agreement is recorded for the purpose of constructive notice.
In the event of any conflict between the provisions of this Memorandum and the Development Agreement
itself, executed by the parties, the terms and provisions of the Development Agreement shall prevail. A
complete counterpart of the Development Agreement, together with any amendments thereto, is in the
possession of the City of Dubuque and may be examined at its offices as above provided.
Dated this 18th day of May, 2020.
CITY OF DUB E, IOWA
A. Lindahl, Senior Counsel
051820ba1
12°°
'DBQ City Clerk
STATE OF IOWA
ss:
DUBUQUE COUNTY
On this 18th day of May, 2020, before me, a Notary Public in and for the State of Iowa, in and for said
county, personally appeared Barry A. Lindahl, to me personally known, who being by me duly sworn did
say that he is the Senior Counsel of the City of Dubuque, that said instrument was signed on behalf of City
of Dubuque and the Senior Counsel acknowledged said instrument to be his free act and deed on behalf
of the City of Dubuque.
Notary Public, t te`o Iowa
TRACEY L. STECKLEIN
Commission Number 716016
My Comm. Exp.
2
Dubuque
Masterpiece on the Mississippi 22:73:22°01;
MEMORANDUM
TO: Jill Connors, Economic Development Project Coordinator
FROM: Chris Happ Olson, Assistant Planner
SUBJECT: Facade Grant: 278 W. 17th Street- The Howie Block
DATE: June 24, 2019
Introduction
This memorandum forwards the requested design review for work funded with a Facade
Grant for the property located at 278 W. 17th Street — The Howie Block.
Background
The project is in the following Jackson Park districts: Conservation, Urban
Revitalization, Local Historic and National Register Historic Districts. The City of
Dubuque Architectural Guidelines, Secretary of the Interior Standards for Rehabilitation
and applicable Technical Preservation Services Preservation Briefs published by the
National Park Service apply to this project.
Discussion
The scope of work is recommended for approval, provided it aligns with work reviewed
and signed off by Planning Services Department on January 17, 2019, as part of the
commenting process for the Section 106 review and comment. We recommend this
Facade Grant payment be contingent upon approval by the State Historic Preservation
Office as required by the Section 106 process.
Requirement
The project, if done in accordance with the described scope of work and drawings will
meet the applicable guidelines and standards and is recommended for approval in
terms of design review. Any deviation from the approved scope of work must be
reviewed and approved by the Economic Development and Planning Services
Departments prior to initiation. It is the property owner's responsibility to read and
understand the terms of approval as well as ensure compliance with the project
requirements. It is the property owner's responsibility to obtain the necessary
building permits prior to starting work. It is the property owner's responsibility to
ensure all contractors understand and properly execute all expectation of the
4
project. Failure to comply with the approved scope of work will result in forfeiture
of all funding.
2
5