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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 � ui-Aseria cih DuB E , . � . , � II � Maste iece on tj2e Mississi i zoo�•zoiz•zois YP pp zoi�*zoi9 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 2 Dubuque Economic Development Department THE CITY OF � 1300 Main Street All•America Eity Dubuque,lowa 52001-4763 �� � "h�N",`��nz�'��:�:��� Office(563)589-4393 � � TTY(563)690-6678 � http://www.cityofdubuque.org zoo�=zoiz*zoi3 Masterpiece on the Mississippi �oi�*Zoi9 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 2 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. 3 (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 4 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 8 41: vevvie, CONLON CONSTRUCTEON CO, Poc d o Rom, D,Abuque, 500'3 phone tax 11:4reotor Drean-i Center D177. St. Cr Duque, Dwo Dear l‘leberl, Proposed Ication lo the Boildirm for Sthool-Acie Childcare IScgrksfrici '-posec lajil ding up grode5in jdc the Following: Srloctivc:! riomnlitior .for wri nponinrr ord idrr ot 1,-;0 concrete 'Hoot stkicturfe O Concret-o footing crid fourdctior for wevator thalt Ma5or ry elevator shalt wo • Structi rn tn,o1 olovntor haft cornporon15 • coNstructionol re5t,"oorna': corrIplirr with Ears.," Childca,7e, $tandard$ • Now floor. COilinq crd firiShesTh rewly constructed areai New bil... ding entry ramp kywheelchoir access 4 Irinrim dnom and horrtworo n roojroci • ADA cmp4 Poet and loath ,acces5orie3 rol rew fesftroorn filovator sawing c:11 Fur leveis • Floior' eleyctor itt erving lower level morificcVirms to tin firn rilpprOssion win rn <7.11 rcquired ▪ Nry plurnbIlq fIxtu•-es and pfping ,as reouirea • IVAC mocirclion$ for rkew bathroomg • EIocncai upgrdde3 o reojirecl • Acqui9ihori rn Orrnoliticr « ncilar:rht sti:lure 4 Sie, gRiditIq, dI ,ond Feinting of r67airiind g7eeh.sp:ace for :play a'rec gtimcltpri r:oct to Chidclo.orr: tin firnrir.-;' Ri ilrtinq rirdSite, Ploy Areri IS $6.36.000. Costsosr nolu A,•chi° Lngirteerirg, and ,Sof !' r.,...;c,s's for z lokilPnajierl Iludget, .Si ':)4 <174-1•L-- I rn eonlon fiEl.Zrird Chau- or CorcIrL.rfon t,„„•,70.-1 cti.on j \IF,F173cIelliel-112 I 12.CS,c;ft -BUJ, LI itu t'1119 9 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