CARich Properties - 2nd Amendment to DA for 278 W. 17th Street Copyrighted
August 3, 2020
City of Dubuque Consent Items # 7.
City Council Meeting
ITEM TITLE: CARich Properties -2nd Amendment to DA 278 W. 17th St
SUM MARY: City Manager recommending approval of a Second Amendment to
Development Agreement with CARich Properties, LLC for
redevelopment of property at 278 W. 17th Street that modifies the
closing date on the project to July 31, 2020.RESOLUTION Approving
the Second Amendment to the Development Agreement between the
City of Dubuque, lowa and CARich Properties, LLC.
RESOLUTION Approving the Second Amendment to Development
Agreement between the City of Dubuque, lowa and CARich Properties,
LLC
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
CARich Properties Second Amendment to
Development Agreement for 278 W. 17th Street-MVM City Manager Memo
Memo
Staff Memo Staff Memo
2nd Amendment to DA Supporting Documentation
Resolution of Approval Resolutions
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Second Amendment to Development Agreement between the City of
Dubuque and CARich Properties, LLC to Redevelop Property at 278 W.
17th Street
DATE: July 28, 2020
Economic Development Director Jill Connors recommends City Council approval of a
Second Amendment to Development Agreement with CARich Properties, LLC for
redevelopment of property at 278 W. 17t" Street.
The Development Agreement was amended on May 18, 2020 to commit downtown
rehabilitation grants for which it was eligible but which program did not have funds at the
time of application of the grants.
The Second Amendment modifies the closing date on the project to no later than
August 31, 2020. The Second Amendment also inserts standard release and
indemnification covenants which should have been included in the Development
Agreement
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
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
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: Second Amendment to Development Agreement between the City of
Dubuque and CARich Properties, LLC to Redevelop Property at 278
W. 17t" Street
DATE: July 23, 2020
INTRODUCTION
This memorandum presents for City Council consideration and action the attached
resolution approving a Second Amendment to Development Agreement between the City
of Dubuque and CARich Properties, LLC.
BACKGROUND
The City and CARich Properties, LLC entered into a Development Agreement dated
May 20, 2019 for the creation of a 30-unit residential complex affordable to
low/moderate income residents.
The work is remediating past water intrusion hazards, adding energy efficient upgrades,
drainage systems, heating/cooling systems, flooring, bathrooms, and kitchen
improvements, replacing all windows throughout the building, adding new roof, gutters,
and downspouts, new entry doors and transoms, and regrading the front area of the
building with new landscaping.
DISCUSSION
A First Amendment to Development Agreement was approved on May 18, 2020 to
commit to downtown rehabilitation grants for which the project was eligible. However,
the Downtown Rehabilitation program did not have funds at the time of application for
the grants.
A Second Amendment has now been prepared which modifies the closing date on the
project to no later than August 31, 2020. The Second Amendment also inserts standard
release and indemnification covenants which should have been included in the
Development Agreement.
RECOMMENDATION/ ACTION STEP
I respectfully request City Council approval of the attached resolution approving the
Second Amendment to Development Agreement between the City of Dubuque, lowa
and CARich Properties, LLC.
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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. 230-20
APPROVING THE SECOND AMENDMENT TO DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF DUBUQUE, IOWA AND CARICH PROPERTIES, LLC.
WHEREAS, the City of Dubuque (City) and CARich Properties, LLC (Developer)
previously entered into a Development Agreement dated May 20, 2019, as amended by
the First Amendment dated May 18, 2020, for the redevelopment of 278 W. 17th Street in
the City of Dubuque, Iowa (the Project); and
WHEREAS, City and Developer desire to amend the Development Agreement as
set forth in the attached Second Amendment to Development Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA THAT:
Section 1. The Second 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 Second
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 Second Amendment to Development Agreement as herein
approved.
Passed, approved and adopted this 3rd day of Au 6 st 2020.
Roy Duol, Mayor
Attest:
Kevin/S. Firnstahl✓, City Clerk
072320ba1
SECOND AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
CARICH PROPERTIES, LLC
This Sao .• Amend nt to Development Agreement, dated for reference
purposes the day of % , 2020, is made and entered into by the City
of Dubuque, Iowa, a municipalit (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 as amended by the First
Amendment dated May 18, 2020; 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 1.3 of the Development Agreement is hereby amended to read as
follows:
1.3 Closing. The closing shall take place on the Closing Date which shall
be the 31 st day of July, 2020, or such other date as the parties shall agree in
writing but in no event shall the Closing Date be later than the 31st day of
August, 2020. Consummation of the closing shall be deemed an agreement
of the parties to this Agreement that the conditions of closing shall have been
satisfied or waived.
2. Section 4.6.1 is hereby added to the Development Agreement as follows:
4.6.1 Release and Indemnification Covenants.
(1) Developer releases City and the governing body members, officers,
agents, servants and employees thereof (hereinafter, for purposes of this
Section, the Indemnified Parties) from and covenants and agrees that the
Indemnified Parties shall not be liable for, and agrees to indemnify, defend
and hold harmless the Indemnified Parties against any loss or damage to
property or any injury to or death of any person occurring at or about or
resulting from any defect in the Minimum Improvements.
070120ba1
(2) Except for any gross negligence, willful misrepresentation or any
willful or wanton misconduct or any unlawful act of the Indemnified Parties,
Developer agrees to protect and defend the Indemnified Parties, now or
forever, and further agrees to hold the Indemnified Parties harmless, from
any claim, demand, suit, action or other proceedings whatsoever by any
person or entity whatsoever arising or purportedly arising from (1) any
violation of any agreement or condition of this Agreement (except with
respect to any suit, action, demand or other proceeding brought by
Developer against City based on an alleged breach of any representation,
warranty or covenant of City under this Agreement and/or to enforce its
rights under this Agreement); or (2) the acquisition, construction,
installation, ownership, and operation of the Minimum Improvements or (3)
the condition of the Property and any hazardous substance or
environmental contamination located in or on the Property, caused and
occurring after Developer takes possession of the Property.
(3) The Indemnified Parties shall not be liable to Developer for any
damage or injury to the persons or property of Developer or its officers,
agents, servants or employees or any other person who may be on, in or
about the Minimum Improvements due to any act of negligence of any
person, other than any act of negligence on the part of any such Indemnified
Party or its officers, agents, servants or employees.
(4) All covenants, stipulations, promises, agreements and obligations of
City contained herein shall be deemed to be the covenants, stipulations,
promises, agreements and obligations of City, and not of any governing
body member, officer, agent, servant or employee of City in their individual
capacity thereof.
(5) The provisions of this Section shall survive the termination of this
Agreement.
3. Except as modified herein, the Development Agreement shall remain in full
force and effect.
CITY OF DUB _ QUE, IOWA CARICH PROPERTIES, LLC
Bv:
By:
Buol, Mayor S'Richard, Managing Member
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