Dubuque Dream Center Improvements Downtown Rehabilitation Grant Copyrig hted
J uly 6, 2020
City of Dubuque Action Items # 2.
City Council Meeting
ITEM TITLE: Dubuque Dream Center powntown Rehabilitation Grant
SUM MARY: City Manager recommending approval of a Downtown Rehabilitation
Grant Agreement for physical improvements at the Dubuque Dream
Center facility at 1600 W hite Street.
RESOLUTION Approving a GrantAgreement by and between the City
of Dubuque, lowa and Dubuque Dream Center, I nc. for the
redevelopment of 1600 White Street
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
Dubuque Dream Center powntown Rehabilitation City Manager Memo
Grant-MVM Memo
Staff Memo Staff Memo
Grant Agreement Supporting Documentation
Resolution of Approval Resolutions
Dubuque
THE CITY OF �
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Downtown Rehabilitation Grant for Dubuque Dream Center Improvements
DATE: June 23, 2020
In August 2019, at the annual goal setting process, the Mayor and City Council selected
the Dubuque Dream Center as a Top Priority. City staff met with Dubuque Dream
Center Executive Director Robert Kimble to learn about any barriers to the continued
success of the Dubuque Dream Center. One of the most significant barriers is
operational funding. Mr. Kimble identified a capital improvement project that could be
made at the facility at 1600 White Street that could generate significant operational
funding.
Mr. Kimble described that in routine delivery of services to the almost 200 families who
are engaged in "In Your Life Mentoring," the legal definition of childcare services is met,
qualifying Dubuque Dream Center families for State of lowa childcare financial
assistance. Dubuque Dream Center has many clients who could do direct pay for the
services, with the potential for up to $800,000 per year in annual operating funding.
The obstacle to the Dubuque Dream Center receiving such funding is that the facility
does not meet the State of lowa childcare guidelines, including not having adequate
green space.
The Dubuque Dream Center has identified a $636,000 capital improvement project to
be completed over the next two years that would lead to the Dubuque Dream Center
qualifying for up to $800,000 a year in operating revenues from childcare services. The
Dubuque Dream Center has identified $360,000 in resources for this project, $276,000
short of full funding.
The Mayor and City Council have budgeted $200,000 a year beginning in the current
fiscal year (FY2020) to assist downtown non-profit organizations with building
renovations related to Americans with Disabilities Act (ADA) improvements and for
weatherization, alternative energy and energy efficiencies.
The improvements needed for the Dubuque Dream Center existing facility and the
creation of green space meet the general intent of the funding and as well as this City
Council priority. This project also will fit the City's neighborhood reinvestment and
workforce development goals.
Economic Development Director Jill Connors recommends City Council approval of a
Downtown Rehabilitation Grant Agreement in the amount of$276,000 for physical
improvements at the Dubuque Dream Center facility at 1600 White Street.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Y
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
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Dubuque Economic Development
Department
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All•America Eity Dubuque,lowa 52001-4763
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Downtown Rehabilitation Grant for Dubuque Dream Center Improvements
DATE: June 19, 2020
INTRODUCTION
This memorandum presents for City Council approval a downtown rehabilitation Grant
Agreement for physical improvements at the Dubuque Dream Center facility at 1600
White Street.
BACKGROUND
In August 2019, at the annual goal setting process, the Mayor and City Council selected
the Dubuque Dream Center as a Top Priority. City staff has met with Dubuque Dream
Center Executive Director Robert Kimble to learn about any barriers to the continued
success of the Dubuque Dream Center. One of the most significant barriers is operational
funding. In the Fiscal Year 2021 Economic Development Department budget, there is a
recommendation to provide $40,000 per year for the next two years to provide operational
support to the Dubuque Dream Center. Mr. Kimble identified a capital improvement
project that could be made at the facility at 1600 White Street that could generate
significant operational funding.
Mr. Kimble described that in routine delivery of services to the almost 200 families who
are engaged in "In Your Life Mentoring," the legal definition of childcare services is met,
qualifying Dubuque Dream Center families for State of lowa childcare financial
assistance. Dubuque Dream Center has many clients who could do direct pay for the
services, with the potential for up to $800,000 per year in annual operating funding.
DISCUSSION
The obstacle to the Dubuque Dream Center receiving such funding is that the facility does
not meet the State of lowa childcare guidelines, including not having adequate green
space.
The Dubuque Dream Center has identified a $636,000 capital improvement project to be
completed over the next two years that would lead to the Dubuque Dream Center
qualifying for up to $800,000 a year in operating revenues from childcare services. The
Dubuque Dream Center has identified $360,000 in resources for this project, $276,000
short of full funding.
The Mayor and City Council have budgeted $200,000 a year beginning in the current
fiscal year(FY2020)to assist downtown non-profit organizations with building renovations
related to Americans with Disabilities Act (ADA) improvements and for weatherization,
alternative energy and energy efficiencies.
The improvements needed for the Dubuque Dream Center's existing facility and the
creation of green space meet the general intent of the funding and as well as this City
Council priority. This project also will fit the City's neighborhood reinvestment and
workforce development goals.
RECOMMENDATION/ ACTION STEP
I respectfully recommend that the Mayor and City Council approve the attached
downtown rehabilitation Grant Agreement in the amount of $276,000 for physical
improvements at the Dubuque Dream Center facility at 1600 White Street.
CC: Cori Burbach, Assistant City Manager
2
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. 202-20
APPROVING A GRANT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE, IOWA
AND DUBUQUE DREAM CENTER, INC. FOR THE REDEVELOPMENT OF 1600 WHITE
STREET
WHEREAS, in furtherance of the objectives of the Urban Renewal Law, the City Council of
the City of Dubuque has undertaken a program for the development and redevelopment of an
area in the City of Dubuque known as the Greater Downtown Urban Renewal District (the
"District"), an urban renewal area established pursuant to the Urban Renewal Law, and in
connection therewith has established the Downtown Rehabilitation Grant Program (the
"Program"); and
WHEREAS, Dubuque Dream Center, Inc. intends to complete the renovation and
rehabilitation of a building located at 1600 White Street (the "Property") within the District; and
WHEREAS, the Project is eligible for a Downtown Rehabilitation Grant; and
WHEREAS, the City Council previously approved providing up to $276,000 to Dubuque
Dream Center, Inc.; and
WHEREAS, it is the determination of the City Council that approval of the Grant Agreement
for redevelopment of the Property by Dubuque Dream Center, Inc., according to the terms and
conditions set out in the Grant Agreement attached hereto, is in the public interest of the City of
Dubuque.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA THAT:
Section 1. The Grant Agreement by and between the City of Dubuque and Dubuque Dream
Center, Inc., is hereby approved.
Section 2. The Mayor is hereby authorized and directed to execute the Grant Agreement on
behalf of the City of Dubuque and the City Clerk is authorized and directed to attest to his
signature.
Section 3. That City Manager is authorized to take such actions as are necessary to comply
with the terms of the Grant Agreement as herein approved.
Passed, approved and adopted this 6th day of July 2020.
Roy D. Buol, Mayor
Attest:
Kevi S. Firnsta , City Clerk
GRANT AGREEMENT
FOR A DOWNTOWN REHABILITATION GRANT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
DUBUQUE DREAM CENTER, INC.
THIS GRANT AGREEMENT (the "Agreement"), dated for reference purposes the
Z-1 day of ...-Zee, , 20zc, by and between the CITY OF DUBUQUE, IOWA, a
municipality established pursuant to the Code of Iowa (the "City") and acting under the
authorization of Chapter 403 of the Code of Iowa (the "Urban Renewal Act"), and
Dubuque Dream Center, Inc. ("Grant Recipient").
WHEREAS, in furtherance of the objectives of the Urban Renewal Act, City has
undertaken a program for the development and redevelopment of an area in City known
as the Greater Downtown Urban Renewal District (the "District"), an urban renewal area
established pursuant to the Urban Renewal Act, and in connection therewith has
established the Downtown Rehabilitation Grant Program (the "Program"); and
WHEREAS, Grant Recipient intends to complete the renovation and rehabilitation
of a building located on property within the District legally described as follows:
The South 1/5 of City Lot 485; and the South 11.2 feet of the South Middle
1/5 of City Lot 485; and Lots A, B and C of City Lot 485; in the City of
Dubuque
locally known as 1600 White Street, Dubuque, Iowa (the "Development Property"), which
shall include various improvements to the building, as more specifically detailed in Exhibit
A attached hereto (the "Project"); and
WHEREAS, the City Council of the City of Dubuque, Iowa previously approved
providing up to $276,000 upon the terms set forth in this Agreement; and
WHEREAS, the City Council finds that the development of the Development
Property pursuant to this Agreement and the fulfillment generally of this Agreement are
in the vital and best interests of the pity and in accord with the public purposes and
provisions of the applicable State and local laws and requirements under which the
foregoing Project has been undertaken and is being assisted.
NOW THEREFORE, in consideration of the promises and obligations of the parties
hereto, each of them does hereby covenant and agree with the others as follows:
SECTION 1. MINIMUM IMPROVEMENTS.
1.1. Required Minimum Improvements. Grant Recipient shall improve the Development
Property as follows:
Addition of elevator and building entry ramp, construction of ADA compliant
restrooms, upgrade of fire suppression system, electrical and HVAC modifications,
and preparation of green space
(the "Minimum Improvements") at an estimated cost of $636,000. The Minimum
Improvements shall be completed in substantial conformity with the scope and scale
described in Exhibit A.
1.2. Completion of Minimum Improvements. Grant Recipient shall complete
construction of the Minimum Improvements by June 30, 2021(The Completion Date). The
Completion Date may be extended upon request of Grant Recipient and consent of City,
which consent shall not be unreasonably withheld, for circumstances determined by City
to be beyond the control of Grant Recipient. City shall determine in its sole discretion
(following an inspection by City's Building Services Department and/or Housing &
Community Development Department, and/or Planning Department) when the Minimum
Improvements have been completed. In order to be considered completed, the Minimum
Improvements must be constructed in accordance with the terms of this Agreement.
1.3 Certificate of Completion. Promptly following the request of Grant Recipient and
upon determination of the City Manager that the Minimum Improvements have been
completed as required by Section 1.2 of this Agreement, the City Manager shall furnish
Grant Recipient with the Certificate of Completion in the form attached as Exhibit B which
shall be a conclusive determination of the satisfaction and termination of the agreements
and covenants in this Agreement.
1.4. Construction of Minimum Improvements. Grant Recipient shall complete all work
with respect to construction of the Minimum Improvements in conformance with all
requirements of this Agreement and all federal, State, and local laws, ordinances, and
regulations.
1.5. Insurance.
(1) Grant Recipient shall provide and maintain or cause to be maintained at all
times during the process of constructing the Minimum Improvements (and, from
time to time at the request of City, furnish City with proof of insurance in the form
of a certificate of insurance for each insurance policy):
All risk builder's risk insurance, written on a Completed Value Form in an
amount equal to one hundred percent (100%) of the replacement value of
the Development Property when construction is completed.
(2) Upon completion of construction of the Minimum Improvements and up to
the Termination Date, Grant Recipient shall maintain, or cause to be maintained,
at its cost and expense (and from time to time at the request of City shall furnish
proof of insurance in the form of a certificate of insurance) all-risk property
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insurance against loss and/or damage to the Development Property under an
insurance policy written in an amount not less than the full insurable replacement
value of the Development Property. The term "replacement value" shall mean the
actual replacement cost of the Development Property (excluding foundation and
excavation costs and costs of underground flues, pipes, drains and other
uninsurable items) and equipment, and shall be reasonably determined from time
to time at the request of City, but not more frequently than once every three (3)
years.
(3) Grant Recipient shall notify City immediately in the case of damage
exceeding $50,000.00 in amount to, or destruction of, the Development Property
or any portion thereof resulting from fire or other casualty. Net proceeds of any
such insurance (Net Proceeds), shall be paid directly to Grant Recipient as its
interests may appear, and Grant Recipient shall forthwith repair, reconstruct and
restore the Development Property to substantially the same or an improved
condition or value as they existed prior to the event causing such damage and, to
the extent necessary to accomplish such repair, reconstruction and restoration,
Grant Recipient shall apply the Net Proceeds of any insurance relating to such
damage received by Grant Recipient to the payment or reimbursement of the costs
thereof, subject, however, to the terms of any mortgage encumbering title to the
Property (as its interests may appear). Grant Recipient shall complete the repair,
reconstruction and restoration of the Development Property whether or not the Net
Proceeds of insurance received by Grant Recipient for such Purposes are
sufficient.
SECTION 2. FURTHER COVENANTS OF GRANT RECIPIENT.
2.1. Real Property Taxes. Grant Recipient shall pay or cause to be paid, when due, all
real property taxes and assessments payable with respect to all and any parts of the
Development Property.
2.2. No Other Exemptions. Until the Termination Date, Grant Recipient agrees not to
apply for any state or local property tax exemptions, except for an application for urban
revitalization tax abatement under Iowa Code Chapter 404 and 427, which are available
with respect to the Development Property or the Minimum Improvements located thereon
that may now be, or hereafter become, available under state law or city ordinance during
the term of this Agreement.
2.4. Non -Discrimination. In carrying out the Project, Grant Recipient shall not
discriminate against any employee or applicant for employment or tenant because of
race, religion, color, sex, sexual orientation, gender identity, national origin, age, or
disability.
SECTION 3. CITY PARTICIPATION.
3.1. Downtown Rehabilitation Grant.
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(1) City agrees to provide to Grant Recipient, on the terms and conditions set
forth herein, a Downtown Rehabilitation Grant (the "Grant") of Two Hundred
Seventy -Six Thousand Dollars ($276,000).
3.2. Payment of the Grant. The Grant shall be payable as follows:
(1) Any and all portions of the Grant shall be funded solely and only from
available Program funds;
(2) Prior to the release of any Grant funds under Section 3.1, City shall have
determined that the Project is substantially complete, as required by Sections 1.2
and 1.3; and
(3) The Grant funds shall be disbursed directly to Grant Recipient within 15
days of City furnishing Certificate of Completion and upon written request to City.
SECTION 4. EVENTS OF DEFAULT; REMEDIES.
4.1. Events of Default Defined. Failure by Grant Recipient to substantially observe or
perform any covenant, condition, obligation, or agreement on its part to be observed or
performed under this Agreement shall be an "Event of Default"
4.2. Remedies on Default by Grant Recipient. Whenever any Event of Default occurs
and is continuing, City, as specified below, may take any one or more of the following
actions after the giving of written notice by City to Grant Recipient of the Event of Default,
but only if the Event of Default has not been cured within thirty (30) days following such
notice, or if the Event of Default cannot be cured within thirty (30) days and Grant
Recipient does not provide assurances to City that the Event of Default will be cured as
soon as reasonably possible thereafter:
(1) City may suspend its performance under this Agreement, including
suspension of the payment of any installment of the Grant to Grant Recipient, until
it receives assurances from Grant Recipient deemed adequate by City, that Grant
Recipient will cure its default and continue its performance under this Agreement;
(2) City may terminate this Agreement; or
(3) City may take any action, including legal, equitable, or administrative action,
which may appear necessary or desirable to enforce performance and observance
of any obligation, agreement, or covenant under this Agreement.
4.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to City is
intended to be exclusive of any other available remedy or remedies, but each and every
such remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity or by statute. No
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delay or omission to exercise any right or power accruing upon any default shall impair
any such right or power or shall be construed to be a waiver thereof, but any such right
and power may be exercised from time to time and as often as may be deemed expedient.
4.4. No Implied Waiver. In the event any agreement contained in this Agreement should
be breached by either party and thereafter waived by the other party, such waiver shall
be limited to the particular breach so waived and shall not be deemed to waive any other
concurrent, previous or subsequent breach hereunder.
SECTION 5. MISCELLANEOUS.
5.1. Conflict of Interest. Grant Recipient represents and warrants that, to its best
knowledge and belief after due inquiry, no officer or employee of City, or its designees or
agents, nor any consultant or member of the governing body of City, and no other public
official of City who exercises or has exercised anyfunctions or tespulisibilities with
respect to the Project during his or her tenure, or who is in a position to participate in a
decision -making process or gain insider information with regard to the Project, has had
or shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds
thereof, for work or services to be performed in connection with the Project, or in any
activity, or benefit therefrom, which is part of the Project at any time during or after such
person's tenure.
5.2. Grants, Notices, and Demands. A Grant payment, notice, demand, or other
communication under this Agreement by any party to the other shall be sufficiently given
or delivered if it is dispatched by registered or certified mail, postage prepaid, return
receipt requested, or delivered personally, and
(1) In the case of Grant Recipient, is addressed or delivered personally to
Robert Kimble, 1600 White St., Dubuque, IA 52001, with copy to Tim Conlon, 1100
Rockdale Rd, Dubuque, IA 52003; and
(2) In the case of City, is addressed to or delivered personally to the City of
Dubuque at City Hall, 50 W. 13th Street, Dubuque, IA 52001; Attn: City Manager
and City Attorney;
or to such other designated individual or officer or to such other address as any party
shall have furnished to the other in writing in accordance herewith.
5.3. Titles of Sections. Any titles of the several parts and Sections of this Agreement
are inserted for convenience of reference only and shall be disregarded in construing or
interpreting any of its provisions.
5.4. Definitions. All capitalized terms used herein shall have the meaning defined
herein, unless a different meaning clearly appears from the context.
5
5.5. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall constitute one and the same instrument.
5.6. Governing Law. This Agreement shall be governed and construed in accordance
with the laws of the State of Iowa.
5.7. Amendment. This Agreement may not be amended except by a subsequent
writing signed by all parties hereto.
5.8. Successors and Assigns. This Agreement is intended to and shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and
assigns.
5.9. Termination Date. This Agreement shall terminate and be of no further force or
effect upon issuance of the Certificate of Completion and payment of the Grant as
provided in Section 3, unless the Agreement is terminated earlier by the other terms of
this Agreement.
5.10. No Third -Party Beneficiaries. No rights or privileges of either party hereto shall
inure to the benefit of any landowner, tenant, contractor, subcontractor, material supplier,
or any other person or entity, and no such landowner, tenant, contractor, subcontractor,
material supplier, or any other person or entity shall be deemed to be a third -party
beneficiary of any of the provisions contained in this Agreement.
5.11. Indemnification. Grant Recipient hereby agrees to defend, indemnify and hold
harmless City against any claims made by Grant Recipient, or any third party relating to
or arising out of this Agreement, including costs, expenses, or attorneys' fees.
5.12. No Assignment; Non -Transferability. Following the execution of this Agreement
and until the Termination Date:
(1) Grant Recipient represents and agrees that it will not transfer, convey or
make any assignment of any of its rights or interests in the Development Property,
Minimum Improvements, or this Agreement to any other party unless: (i) the
transferee partnership, corporation, or individual assumes in writing all of the
obligations of Grant Recipient under this Agreement, and (ii) City consents thereto
in writing in advance thereof; and
(2) Grant Recipient represents and agrees that it will not assign its rights or
interests in this Agreement, including the Grant, to any other party unless City
consents thereto in writing in advance thereof.
6
CITY OF DUBUQUE, IOWA
By:
ATTEST:
Kevin S. Firnstahl,City Clerk
DUBUQUE DREAM CENTER, INC.
7
EXHIBIT A
SCOPE OF MINIMUM IMPROVEMENTS
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EXHIBIT B
CERTIFICATE OF COMPLETION
10
CERTIFICATE OF COMPLETION
WHEREAS, the City of Dubuque, Iowa, a municipal corporation (the "Grantor"),
has granted incentives to Dubuque Dream Center, Inc. (the "Grantee"), in accordance
with a Grant Agreement dated as of , 2020 (the "Agreement"), certain
real property located within the Greater Downtown Urban Renewal District of the Grantor
and as more particularly described as follows:
The South 1/5 of City Lot 485; and the South 11.2 feet of the South Middle
1/5 of City Lot 485; and Lots A, B and C of City Lot 485; in the City of
Dubuque
(the "Development Property"); and
WHEREAS, said Agreement incorporated and contained certain covenants and
conditions with respect to the rehabilitation of the Development Property, and obligated
the Grantee to construct certain Minimum Improvements (as defined therein) in
accordance with the Agreement; and
WHEREAS, the Grantee has to the present date performed said covenants and
conditions insofar as they relate to the construction of the Minimum Improvements in a
manner deemed sufficient by the Grantor to permit the execution and recording of this
certification.
NOW, THEREFORE, pursuant to Section 1.3 of the Agreement, this is to certify
that all covenants and conditions of the Agreement with respect to the obligations of the
Grantee, and its successors and assigns, to construct the Minimum Improvements on the
Development Property have been completed and performed by the Grantee to the
satisfaction of the Grantor and such covenants and conditions are hereby satisfied,
The County Recorder of Dubuque County is hereby authorized to accept for recording
and to record the filing of this instrument, to be a conclusive determination of the
satisfaction of the covenants and conditions as set forth in said Agreement, and that the
Agreement shall otherwise remain in full force and effect.
(SEAL) CITY OF DUBUQUE, IOWA
By:
Mike Van Milligen, City Manager
11
STATE OF IOWA
SS
COUNTY OF DUBUQUE )
On this day of , before me, the undersigned, a Notary
Public in and for the State of Iowa, personally appeared and
acknowledged said execution of the instrument to be his/her voluntary act and deed.
Notary Public in and for
Dubuque County, Iowa
12