Development Agreement with CARich Properties for 1706 Central Avenue Copyrighted
August 3, 2020
City of Dubuque Action Items # 1.
City Council Meeting
ITEM TITLE: 1706 Central Ave - DevelopmentAgreement
SUMMARY: City Manager recommending approval of a DevelopmentAgreementwith
CARich Properties, LLC for the redevelopment of 1706 Central Avenue.
RESOLUTION Approving a DevelopmentAgreement between the City
of Dubuque, lowa and CARich Properties, LLC forthe redevelopment
of 1706 Central Avenue
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
CARich Properties Development Agreement for 1706 City Manager Memo
Central Avenue-MVM Memo
Staff Memo Staff Memo
Development Agreement Supporting Documentation
Resolution of Approval Resolutions
Use of Incentives- MVM Memo City Manager Memo
Incentive Master List Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Approving a Development Agreement between the City of Dubuque and
CARich Properties, LLC to Redevelop Property at 1706 Central Avenue
DATE: July 28, 2020
Economic Development Director Jill Connors recommends City Council approval of a
Development Agreement with CARich Properties, LLC for the redevelopment of 1706
Central Avenue.
The Downtown Rehabilitation Loan Program provides for several grant opportunities for
the rehabilitation of historic buildings and the creation of quality rental residential units in
the downtown area. Since 2007, the City Council has awarded at least one of these
grants to 49 different projects. In 2009, the City Council approved the creation of a
funding pool to encourage new residential housing units in downtown Dubuque, which
complements the rehabilitation grants. The program to date has assisted in the creation
of over 340 quality apartments in our downtown.
Together, these grants, along with Tax Increment Financing funds, have incentivized
the rehabilitation of the Historic Millwork District, multiple buildings in nearly every block
along Main Street and many other downtown properties. Some examples are:
Caradco, Novelty Iron Works, Linseed, and Dupaco/Voices Buildings in the Millwork
District; the Roshek Building; mixed-use buildings in nearly every block of Main Street;
multiple buildings along the Central Avenue Corridor; and many others from 1St Street to
32nd Street.
The Downtown Rehabilitation Loan Program has had a positive impact in the
appearance and livability of our downtown, which leads to a more attractive business
and residential environment. As such, the Economic Development Department finds
the program to be a great tool for attracting and retaining a quality workforce for our
businesses.
The property at 1706 Central Avenue is a nearly vacant, mixed-use building in the
Central Avenue Corridor. The property is owned by CARich Properties, LLC, Managing
Member, Chris Richard. Chris has successfully rehabilitated several historic properties
in Dubuque's downtown, including 1804-1812 Central Avenue, which was modified from
a building with a history of regular calls for service from our Police Department before
Chris purchased it, into a beautiful building with several occupied storefronts and eight
quality, affordable apartments.
Chris has also undertaken an extensive project at 278 W. 17th Street, updating both the
interior and exterior of a 30-unit apartment complex, once again creating affordable
housing options in our downtown area. This project is nearly complete and has had
ongoing, successful inspections from our Housing Department, confirming the quality
and scope of his work.
City staff in Economic Development, Housing, and Building Services have found Chris
to be a quality developer and responsible property owner and landlord.
Several developers over the past five-plus years have made proposals to redevelop
1706 Central Avenue, but were unable to move forward on their plans. The current
proposed project will rehabilitate the exterior of the large, corner building, renovate
multiple storefronts, and create ten quality, affordable apartments in the Central Avenue
Corridor, a priority area for the City Council.
The Development Agreement requires and provides for the following:
1. The Developer is required to construct ten rental residential units.
2. The City commits to a grant of $100,000 (10 units x $10,000 per unit) through
the Downtown Housing Creation Program for apartments that meet the City of
Dubuque's Housing Rehabilitation Standards and that receive a certificate of
occupancy.
3. The City commits to Fa�ade, Design & Planning, and Financial Consultant grants
totaling up to a maximum of $35,000.
4. The Developer must accept applications from prospective tenants with housing
choice vouchers (issued under the U.S. HUD's Section 8 voucher program or a
similar program) that are otherwise qualified prospective tenants.
This project aligns with the City Council goal of Livable Neighborhoods and Housing:
Great Place to Live.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
MCVM:jh
Attachment
2
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Jill M. Connors, Economic Development Director
3
Dubuque Economic Development
Department
THE CITY OF � 50 West 13th Street
All•AmericaCity Dubuque, lowa 52001-4864
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1 I I�I TTY(563)690-6678
http://www.cityofd ubuq ue.org
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Approving a Development Agreement between the City of Dubuque
and CARich Properties, LLC to Redevelop Property at 1706 Central
Avenue
DATE: July 23, 2020
INTRODUCTION
This memorandum presents for City Council consideration and action the attached
resolution approving a Development Agreement between the City of Dubuque and
CARich Properties, LLC.
BACKGROUND
The Downtown Rehabilitation Loan Program provides for several grant opportunities for
the rehabilitation of historic buildings and the creation of quality rental residential units in
the downtown area. Since 2007, the City Council has awarded at least one of these
grants to 49 different projects. In 2009, the City Council approved the creation of a
funding pool to encourage new residential housing units in downtown Dubuque, which
complements the rehabilitation grants. The program to date has assisted in the creation
of over 340 quality apartments in our downtown.
Together, these grants, along with Tax Increment Financing funds, have incentivized
the rehabilitation of the Historic Millwork District, multiple buildings in nearly every block
along Main Street and many other downtown properties. Some examples are:
Caradco, Novelty Iron Works, Linseed, and Dupaco/Voices Buildings in the Millwork
District; the Roshek Building; mixed-use buildings in nearly every block of Main Street;
multiple buildings along the Central Avenue Corridor; and many others from 1St Street to
32nd Street.
The Downtown Rehabilitation Loan Program has had a positive impact in the
appearance and livability of our downtown, which leads to a more attractive business
and residential environment. As such, the Economic Development Department finds
the program to be a great tool for attracting and retaining a quality workforce for our
businesses.
DISCUSSION
The property at 1706 Central Avenue is a nearly vacant, mixed-use building in the
Central Avenue Corridor. The property is owned by CARich Properties, LLC, Managing
Member, Chris Richard. Chris has successfully rehabilitated several historic properties
in Dubuque's downtown, including 1804-1812 Central Avenue, which was modified from
a building with a history of regular calls for service from our Police Department before
Chris purchased it, into a beautiful building with several occupied storefronts and eight
(8) quality, affordable apartments.
Chris has also undertaken an extensive project at 278 W. 17t" Street, updating both the
interior and exterior of a 30-unit apartment complex, once again creating affordable
housing options in our downtown area. This project is nearly complete and has had
ongoing, successful inspections from our Housing Department, confirming the quality
and scope of his work.
City staff in Economic Development, Housing, and Building Services have found Chris
to be a quality developer and responsible property owner and landlord.
Several developers over the past five-plus years have made proposals to redevelop
1706 Central Avenue but were unable to move forward on their plans. The current
proposed project will rehabilitate the exterior of the large, corner building, renovate
multiple storefronts, and create 10 quality, affordable apartments in the Central Avenue
Corridor, a priority area for the City Council.
The Development Agreement requires and provides for the following:
1. The Developer is required to construct Ten (10) rental residential units.
2. The City commits to a grant of$100,000 (10 units x $10,000 per unit) through
the Downtown Housing Creation Program for apartments that meet the City of
Dubuque's Housing Rehabilitation Standards and that receive a certificate of
occupancy.
3. The City commits to Fa�ade, Design & Planning, and Financial Consultant grants
totaling up to a maximum of $35,000.
2
4. The Developer must accept applications from prospective tenants with housing
choice vouchers (issued under the U.S. HUD's Section 8 voucher program or a
similar program) that are otherwise qualified prospective tenants.
This project aligns with the City Council goal of Livable Neighborhoods and Housing:
Great Place to Live.
BUDGETIMPACT
The $100,000 grant for housing creation will be funded from CIP 3602438, Greater
Downtown Housing Creation Grant Program, which has a current balance of $141,315.
The $35,000 in Fa�ade, Design & Planning, and Financial Consultant grants will be
funded from CIP 2411942, Downtown Rehabilitation Grant Program, which has a
current balance of$35,000.
RECOMMENDATION/ ACTION STEP
I recommend the City Council adopt the attached resolution approving the Development
Agreement between the City of Dubuque and CARich Properties, LLC for the
redevelopment of 1706 Central Avenue.
3
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. 241-20
APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE,
IOWA AND CARICH PROPERTIES, LLC FOR THE REDEVELOPMENT OF 1706
CENTRAL AVENUE
Whereas, CARich Properties, LLC is the owner of the vacant building a 1706 Central
Avenue in the City of Dubuque, Iowa (the Building); and
Whereas, CARich Properties, LLC has applied to the Economic Development
Department for grants under the Downtown Rehabilitation Loan Program (the Grants) for
the redevelopment of 1706 Central Avenue in the City of Dubuque, Iowa (the Project);
and
Whereas, the Project is eligible for the Grants; and
Whereas, it is the determination of the City Council that approval of the Development
Agreement for redevelopment of the Property by CARich Properties, LLC, including the
Grants, according to the terms and conditions set out in the Development Agreement, 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 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 Grant
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 Development Agreement as herein approved.
Passed, approved and adopted this 3rd day of August 2020.
oy D. Buol, Mayor
Attest:
072320ba1
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA,
AND
CARich PROPERTIES, LLC
THIS DEVELOPMENT AGREEMENT (the Agreement) dated for reference
purposes the day of , 2020 is made and entered into by and between
the City of Dubuque, Iowa (City and CARich Properties, LLC (Developer).
WHEREAS, Developer is the owner of the following described real estate (the
Property):
THE SOUTH ONE -FIFTH AND THE SOUTH 14 FEET OF THE SOUTH MIDDLE
ONE -FIFTH OF OUT LOT 440 IN THE CITY OF DUBUQUE, IOWA, ACCORDING
TO THE UNITED STATES COMMISSIONERS MAP OF THE TOWN OF
DUBUQUE, IOWA;
(locally known as 1706 Central Avenue); and
WHEREAS, the Property is located in the Greater Downtown Urban Renewal
District (the District) which has been so designated by City Council Resolution 154-20 as
a slum and blighted area (the Project Area) defined by Iowa Code Chapter 403 (the Urban
Renewal Law); and
WHEREAS, Developer will undertake the redevelopment of a vacant building
located on the Property and will be operating the same during the term of this Agreement;
and
WHEREAS, Developer will make a capital investment in building improvements,
equipment, furniture and fixtures in the Property (Project); and
WHEREAS, the Property is historically significant, and it is in the City's best interest
to preserve the Property; and
WHEREAS, pursuant to Iowa Code Section 403.6(1), and in conformance with the
Urban Renewal Plan for the Project Area adopted on May 18, 1967 and last amended on
May 18, 2020, City has the authority to enter into contracts and agreements to implement
the Urban Renewal Plan, as amended; and
WHEREAS, the City of Dubuque City Council believes it is in the best interests of
the City to encourage Developer in the development of the Property by providing certain
incentives as set forth herein.
NOW, THEREFORE, the parties to this Development Agreement, in consideration
of the promises, covenants and agreements made by each other, do hereby agree as
072820ba1
follows:
SECTION 1. REPRESENTATIONS AND WARRANTIES
1.1 Representations and Warranties of City. In order to induce Developer to enter into
this Agreement, City hereby represents and warrants to Developer that to the best of
City's knowledge:
(1) City has duly obtained all necessary approvals and consents for its
execution, delivery and performance of this Agreement and that it has full power
and authority to execute, deliver and perform its obligations under this Agreement.
City's attorney shall issue a legal opinion to Developer at time of closing confirming
the representation contained herein, in the form attached hereto as Exhibit A.
(2) City shall exercise its best efforts to cooperate with Developer in the
development process.
(3) City shall exercise its best efforts to resolve any disputes arising during the
development process in a reasonable and prompt fashion.
(4) The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the
terms and conditions of this Agreement are not prevented by, limited by, in conflict
with, or result in a violation or breach of, the terms, conditions or provisions of the
charter of City, any evidence of indebtedness, agreement or instrument of
whatever nature to which City is now a party or by which it or its property is bound,
or constitute a default under any of the foregoing.
(5) There are no actions, suits or proceedings pending or threatened against or
affecting City in any court or before any arbitrator or before or by any governmental
body in which there is a reasonable possibility of an adverse decision which could
materially adversely affect the financial position or operations of City or which
affects the validity of the Agreement or City's ability to perform its obligations under
this Agreement.
(6) No ordinance or hearing is now before any local governmental body that
either contemplates or authorizes any public improvements or special tax levies,
the cost of which may be assessed against the Property. To the best of City's
knowledge, there are no plans or efforts by any government agency to widen,
modify, or re -align any street or highway providing access to the Property and there
are no pending or intended public improvements or special assessments affecting
the Property which will result in any charge or lien be levied or assessed against
the Property.
(7) The representations and warranties contained in this article shall be correct
in all respects on and as of the Closing Date with the same force and effect as if
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such representations and warranties had been made on and as of the Closing
Date.
(8) As of the date of this Agreement there has been prepared and approved by
City an Urban Renewal Plan for the Project Area consisting of the Urban Renewal
Plan for the Greater Downtown Urban Renewal Plan, most recently approved by
City Council of City on May 18, 2020, and as subsequently amended through and
including the date hereof, attached as Exhibit E (the Urban Renewal Plan). A copy
of the Urban Renewal Plan, as constituted on the date of this Agreement and in
the form attached hereto, in on file records in the office of the City Clerk and has
been recorded among the land records of the Dubuque County Recorder.
1.2 Representations and Warranties of Developer. Developer makes the following
representations and warranties:
(1) Developer is a Wisconsin limited liability company duly organized and
validly existing under the laws of the State of Wisconsin and has all requisite power
and authority to own and operate its properties, to carry on its business as now
conducted and as presently proposed to be conducted, and to enter into and
perform its obligations under the Agreement.
(2) This Agreement has been duly authorized, executed and delivered by
Developer and, assuming due authorization, execution and delivery by the City, is
in full force and effect and is a valid and legally binding instrument of Developer
enforceable in accordance with its terms, except as the same may be limited by
bankruptcy, insolvency, reorganization or other laws relating to or affecting
creditors' rights generally. Developer's counsel shall issue a letter to the City, at
time of closing, confirming the representations contained herein, in the form
attached hereto as Exhibit B.
(3) The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the
terms and conditions of this Agreement are not prevented by, limited by, in conflict
with, or result in a violation or breach of, the terms, conditions or provisions of the
articles of incorporation or the bylaws of Developer or any contractual restriction,
evidence of indebtedness, agreement or instrument of whatever nature to which
Developer is now a party or by which it or its property is bound, or constitute a
default under any of the foregoing.
(4) There are no actions, suits or proceedings pending or threatened against or
affecting Developer in any court or before any arbitrator or before or by any
governmental body in which there is a reasonable possibility of an adverse
decision which could materially adversely affect the business, financial position or
result of operations of Developer or which affects the validity of the Agreement or
Developer's ability to perform its obligations under this Agreement.
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(5) Developer will perform its obligations under this Agreement in accordance
with the material terms of this Agreement, the Urban Renewal Plan and all local,
State and federal laws and regulations.
(6) Developer will use its best efforts to obtain, or cause to be obtained, in a
timely manner, all material requirements of all applicable local, state, and federal
laws and regulations which must be obtained or met.
(7) Developer has firm commitments for permanent financing for the Project in
an amount sufficient, together with equity commitments, to successfully complete
the requirements of this Agreement and shall provide evidence thereof to City prior
to the Closing Date.
1.3 Closing. The closing shall take place on the Closing Date which shall be the 1st
day of October, 2020 or such other date as the parties shall agree in writing but in no
event shall the Closing Date be later than the 31 st day of October, 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.
1.4 Conditions to Closing. The closing of the transaction contemplated by this
Agreement and all the obligations of Developer under this Agreement are subject to
fulfillment, on or before the Closing Date, of the following conditions:
(1) The representations and warranties made by City in Section 1.1 shall be
correct as of the Closing Date with the same force and effect as if such
representations were made at such time. At the closing, City shall deliver a
certificate to that effect in the form of Exhibit C.
(2) Developer shall have the right to terminate this Agreement at any time prior
to the consummation of the closing on the Closing Date if Developer determines
in its sole discretion that conditions necessary for the successful completion of the
Project contemplated herein have not been satisfied in Developer's sole discretion.
Upon the giving of notice of termination by Developer to City, this Agreement shall
be deemed null and void.
(3) Developer and City shall be in material compliance with all the terms and
provisions of this Agreement.
(4) Developer shall have furnished City with evidence, in a form satisfactory to
City (such as a letter of commitment from a bank or other lending institution), that
Developer has firm financial commitments in an amount sufficient, together with
equity commitments, to complete the Minimum Improvements (as defined herein)
in conformance with the Construction Plans (as defined herein), or City shall have
received such other evidence of Developer's financial ability as the reasonable
judgment of the City requires.
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(5) Developer's counsel shall issue a letter to the City confirming the
representations contained herein in the form attached hereto as Exhibit B.
1.5 City's Obligations at Closing. At or prior to the Closing Date, City shall deliver to
Developer such other documents as may be required by this Agreement, all in a form
satisfactory to Developer.
SECTION 2. DEVELOPMENT ACTIVITIES
2.1 Required Minimum Improvements. Developer will make a capital investment of
approximately One Million Five Hundred Thousand Dollars ($1,500,000.00) to improve
the Property (the Minimum Improvements). The Minimum Improvements shall consist of
the creation of ten (10) apartments.
2.2 The Minimum Improvements shall conform to the U.S. Secretary of the Interior's
Standards for Rehabilitation. However, if the Project is not awarded Historic Tax Credits
by December 30, 2021, the U.S. Secretary of the Interior's Standards for Rehabilitation
will be interpreted by City, in its sole discretion, to apply only to the Exterior Improvements.
2.3 Plans for Construction of Minimum Improvements. Plans and specifications with
respect to the development of the Property and the construction of the Minimum
Improvements thereon (the Construction Plans) shall be in conformity with Urban
Renewal Plan, this Agreement, and all applicable state and local laws and regulations,
including but not limited to any covenants, conditions, restrictions, reservations,
easements, liens and charges, recorded in the records of Dubuque County, Iowa.
Developer shall submit to City, for approval by City, plans, drawings, specifications, and
related documents with respect to the improvements to be constructed by Developer on
the Property. All work with respect to the Minimum Improvements shall be in substantial
conformity with the Construction Plans approved by City.
2.4 Timing of Improvements. Developer hereby agrees that construction of the
Minimum Improvements on the Property shall be commenced within ninety (90) days after
the Closing Date and shall be substantially completed by December 30, 2022. The time
frames for the performance of these obligations shall be suspended due to unavoidable
delays meaning delays, outside the control of the party claiming its occurrence in good
faith, which are the direct result of strikes, other labor troubles, unusual shortages of
materials or labor, unusually severe or prolonged bad weather, acts of God, fire or other
casualty to the Minimum Improvements, litigation commenced by third parties which, by
injunction or other similar judicial action or by the exercise of reasonable discretion
directly results in delays, or acts of any federal, state or local government which directly
result in extraordinary delays. The time for performance of such obligations shall be
extended only for the period of such delay.
2.5 Certificate of Completion. Promptly following the request of Developer upon
completion of the Minimum Improvements, City shall furnish Developer with an
appropriate instrument so certifying in the form attached as Exhibit F. Such certification
5
(the Certificate of Completion) shall be in recordable form and shall be a conclusive
determination of the satisfaction and termination of the agreements and covenants in this
Agreement.
SECTION 3. CITY PARTICIPATION
3.1 Downtown Housing Incentive Grant.
(1) City agrees to provide to Developer, on the terms and conditions set forth
herein, a grant in the amount of One Hundred Thousand Dollars ($100,000.00).
(2) The grant funds shall be paid in Ten Thousand Dollar ($10,000.00)
payments for each market -rate apartment that receives a Certificate of Completion
up to a maximum of ten (10) market rate apartments.
3.2 Planning and Design Grant. City agrees to provide a matching (1:1) 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
Exhibit G.
3.3 Facade Grant. City agrees to provide a matching (1:1) grant not to exceed Ten
Thousand Dollars ($10,000) for documented costs that improve the overall appearance
of the Development Property, provided the Project as completed meets the criteria on the
terms and conditions set forth in Exhibit H.
3.4 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 on the
terms and conditions set forth in Exhibit I.
3.5 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, (i) Grant Recipient 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 Grant Recipient.
SECTION 4. COVENANTS OF DEVELOPER
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4.1 Subject to Sec. 2.2, the Minimum Improvements shall conform to the U.S.
Secretary of the Interior's Standards for Rehabilitation.
4.2 Operation of Development Property; Housing Vouchers. For and in consideration
of the Grants offered under this Agreement, during the operation of the Development
Property as a rental residential property, Developer Recipient shall accept, or cause to
be accepted, applications from prospective tenants with housing vouchers (issued under
the U.S. HUD's Section 8 voucher program or a similar program who are otherwise
qualified prospective tenants. This Section shall survive the termination of this
Agreement.
4.3 Books and Records. During the term of this Agreement, Developer shall keep at
all times and make available to City upon reasonable request proper books of record and
account in which full, true and correct entries will be made of all dealings and transactions
of or in relation to the business and affairs of Developer in accordance with generally
accepted accounting principles consistently applied throughout the period involved, and
Developer shall provide reasonable protection against loss or damage to such books of
record and account.
4.4 Real Property Taxes. Developer 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 Property
unless Developer's obligations have been assumed by another person pursuant to the
provisions of this Agreement.
4.5 No Other Exemptions. During the term of this Agreement, Developer agrees that
Developer shall not, without City's consent which shall not be unreasonably withheld,
apply for any state or local property tax exemptions 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, including those that arise under Iowa Code Chapters 404 and 427, as
amended.
4.6 Insurance Requirements.
(1) Developer shall provide and maintain or cause to be maintained at all times
during the process of constructing the Minimum Improvements and at its sole cost
and expense builder's risk insurance, written on a Completed Value Form in an
amount equal to one hundred percent (100%) of the building (including Minimum
Improvements) replacement value when construction is completed, naming City
as an additional insured and loss payee. Coverage shall include the "special
perils" form and developer shall furnish City with proof of insurance in the form of
a certificate of insurance.
(2) Upon completion of construction of the Minimum Improvements and up to
the Termination Date, Developer shall maintain, or cause to be maintained, at its
cost and expense property insurance against loss and/or damage to the building
7
(including the Minimum Improvements) under an insurance policy written with the
"special perils" form and in an amount not less than the full insurable replacement
value of the building (including the Minimum Improvements), naming City as loss
payee. Developer shall furnish to City proof of insurance in the form of a certificate
of insurance.
(3) The term "replacement value" shall mean the actual replacement cost of the
building with Minimum Improvements (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.
(4) Developer shall notify City immediately in the case of damage exceeding
$50,000 in amount to, or destruction of, the Minimum Improvements or any portion
thereof resulting from fire or other casualty. Net proceeds of any such insurance
(Net Proceeds), shall be paid directly to Developer as its interests may appear,
and Developer shall forthwith repair, reconstruct and restore the Minimum
Improvements 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, Developer shall apply the
Net Proceeds of any insurance relating to such damage received by Developer 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).
Developer shall complete the repair, reconstruction and restoration of Minimum
Improvements whether or not the Net Proceeds of insurance received by
Developer for such purposes are sufficient.
4.7 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.
(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
8
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.
4.8 Preservation of Property. During the term of this Agreement, Developer shall
maintain, preserve and keep, or cause others to maintain, preserve and keep, the
Minimum Improvements in good repair and working order, ordinary wear and tear
accepted, and from time to time shall make all necessary repairs, replacements, renewals
and additions.
4.9 Non -Discrimination. In carrying out the project, Developer shall not discriminate
against any employee or applicant for employment because of race, religion, color, sex,
sexual orientation, gender identity, national origin, age or disability.
4.10 Conflict of Interest. Developer agrees that no member, 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 any functions or
responsibilities 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, shall have any interest, direct or indirect, in any contract or subcontract, or the
proceeds thereof, for work to be performed in connection with the project, or in any
activity, or benefit therefrom, which is part of this project at any time during or after such
person's tenure. In connection with this obligation, Developer shall have the right to rely
upon the representations of any party with whom it does business and shall not be
obligated to perform any further examination into such party's background.
4.11 Non -Transferability.
During the Term of this Agreement, this Agreement may not be assigned by Developer
nor may any portion of the Property be sold or otherwise transferred by Developer without
9
the prior written consent of City in City's sole discretion. City has no obligation to consent
to any assignment or sale, however City's consent shall not be unreasonably withheld.
4.12 No change in Tax Classification. Developer agrees that it will not take any action
to change, or otherwise allow, the classification of the Property for property tax purposes
to become other than residential property and to be taxed as such under Iowa law.
4.13 Restrictions on Use. Developer agrees for itself, and its successors and assigns,
and every successor in interest to the Property or any part thereof that they, and their
respective successors and assigns, shall:
(1) Devote the Property to, and only to and in accordance with, the uses
specified in the Urban Renewal Plan (and City represents and agrees that use of
the Property as a residential housing condominium association, is in full
compliance with the Urban Renewal Plan) (however, Developer shall not have any
liability to City to the extent that a successor in interest shall breach this covenant
and City shall seek enforcement of this covenant directly against the party in
breach of same); and
(2) Not discriminate upon the basis of race, religion, color, sex, sexual
orientation, gender identity, national origin, age or disability in the sale, lease,
rental, use or occupancy of the Property or any improvements erected or to be
erected thereon, or any part thereof (however, Developer shall not have any
liability to City to the extent that a successor in interest shall breach this covenant
and City shall seek enforcement of this covenant directly against the party in
breach of same).
4.14 Compliance with Laws. Developer shall comply with all laws, rules and regulations
relating to its businesses, other than laws, rules and regulations the failure to comply with
or the sanctions and penalties resulting therefrom, would not have a material adverse
effect on the business, property, operations, financial or otherwise, of Developer.
SECTION 5. EVENTS OF DEFAULT AND REMEDIES.
5.1 Events of Default Defined. The following shall be Events of Default under this
Agreement and the term Event of Default shall mean, whenever it is used in this
Agreement, any one or more of the following events:
(1) Failure by Developer to pay or cause to be paid, before delinquency, all real
property taxes assessed with respect to the Minimum Improvements and the
Property.
(2) Failure by Developer to cause the construction of the Minimum
Improvements to be commenced and completed pursuant to the terms, conditions
and limitations of this Agreement.
10
(3) Transfer of any interest by Developer of the Minimum Improvements in
violation of the provisions of this Agreement prior to the issuance of the final
Certificate of Completion.
(4) Failure by Developer or City to substantially observe or perform any other
material covenant, condition, obligation or agreement on its part to be observed or
performed under this Agreement.
5.2. Remedies on Default by Developer. Whenever any Event of Default referred to in
Section 5.1 of this Agreement 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
Developer (and the holder of any mortgage encumbering any interest in the Property of
which City has been notified of in writing) of the Event of Default, but only if the Event of
Default has not been cured within sixty (60) days following such notice, or if the Event of
Default cannot be cured within sixty (60) days and Developer 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 until it receives
assurances from Developer deemed adequate by City, that the Developer will cure
its default and continue its performance under this Agreement;
(2) Until the Closing Date, City may cancel and rescind this Agreement;
(3) Developer shall repay to City the amount of the Downtown Rehab
Loan/Grant, and the Downtown Housing Incentive and Economic Development
Grant and shall reimburse City for any costs incurred by City in making such grants,
and City may take any action, including any legal action it deems necessary, to
recover such amounts from the Developer.
(4) City may withhold the Certificate of Completion; or
(5) City may take any action, including legal, equitable or administrative action,
which may appear necessary or desirable to collect any payments due under this
Agreement or to enforce performance and observance of any obligation,
agreement, or covenant under this Agreement.
5.3 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
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.
11
5.4 No Implied Waiver. In the event any agreement contained in this Agreement
should be breached by any party and thereafter waived by any 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.
5.5 Agreement to Pay Attorneys' Fees and Expenses. If any action at law or in equity,
including an action for declaratory relief or arbitration, is brought to enforce or interpret
the provisions of this Agreement, the prevailing party shall be entitled to recover
reasonable attorneys' fees and costs of litigation from the other party. Such fees and
costs of litigation may be set by the court in the trial of such action or by the arbitrator, as
the case may be, or may be enforced in a separate action brought for that purpose. Such
fees and costs of litigation shall be in addition to any other relief that may be awarded.
5.6 Remedies on Default by City. If City defaults in the performance of this Agreement,
Developer may take any action, including legal, equitable or administrative action that
may appear necessary or desirable to collect any payments due under this Agreement,
to recover expenses of Developer, or to enforce performance and observance of any
obligation, agreement, or covenant of City under this Agreement. Developer may
suspend its performance under this Agreement until it receives assurances from City,
deemed adequate by Developer, that City will cure its default and continue its
performance under this Agreement.
SECTION 6. GENERAL TERMS AND PROVISIONS.
6.1 Notices and Demands. Whenever this Agreement requires or permits any notice
or written request by one party to another, it shall be deemed to have been properly given
if and when delivered in person or three (3) business days after having been deposited in
any U.S. Postal Service and sent by registered or certified mail, postage prepaid,
addressed as follows:
If to Developer: CARich Properties, LLC
ATTN: Chris Richard
1118 Nealmar Road
Platteville, WI 53818
With copy to: Flint Drake
Drake Law Firm
300 Main Street, Suite 323
Dubuque, IA 52001
If to City: City Manager
50 W. 13th Street
Dubuque, Iowa 52001
Phone: (563) 589-4110
Fax: (563) 589-4149
12
With copy to:
City Attorney
City Hall
50 W. 13th Street
Dubuque IA 52001
Or at such other address with respect to either party as that party may, from time to time
designate in writing and forward to the other as provided in this Section.
6.2 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit
of City and Developer and their respective successors and assigns.
6.3 Termination Date. This Agreement shall terminate and be of no further force or
effect upon issuance of the Certificate of Completion, unless the Agreement is terminated
earlier by the other terms of this Agreement (the Termination Date).
6.4. Execution By Facsimile. The parties agree that this Agreement may be transmitted
between them by facsimile machine or electronic transmission. The parties intend that
the faxed or electronic transmission signatures constitute original signatures and that a
faxed or electronically transmitted Agreement containing the signatures (original, faxed
or electronically transmitted) of all the parties is binding on the parties.
6.5 Memorandum of Development Agreement. City shall promptly record a
Memorandum of Development Agreement in the form attached hereto as Exhibit D in the
office of the Recorder of Dubuque County, Iowa. Developer shall pay the costs for so
recording.
IN WITNESS WHEREOF, City has caused this Agreement to be duly executed in
its name and behalf by its Mayor and attested to by its City Clerk and Developer has
caused this Agreement to be duly executed on or as of the first above written.
CITY OF DUBUQUE, IOWA
CARich PROPERTIES, LLC
By By
Roy Duol, Mayor' Rird, Managing Member
Attest:
Kevi( S. Firnsta
City Clerk
13
(City Seal)
STATE OF IOWA
COUNTY OF DUBUQUE
)
)
)
SS
On this 8f4 day of J ��,,c,`�- 20a? before me the undersigned, a Notary
Public in and for the said Coul•(ty and State, personally appeared Roy D. Buol and Kevin
S. Firnstahl, to me personally known, who, being by me duly sworn, did say that they are
the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa, a municipal
corporation executing the instrument to which this is attached; that the seal affixed hereto
is the seal of said municipal corporation; that said instrument was signed and sealed on
behalf of the City of Dubuque, Iowa, by authority of its City Council; and that said Mayor
and City Clerk acknowledged the execution of said instrument to be the voluntary act and
deed of said City, by it and by them voluntarily executed.
Notary Public
STATE OF X
COUNTY OF
)
SS
•. TRISFIL. GLEASON
Commission Number 719986
My Commission Expires
• 1 y • 09.0
ELLA LANEY
Notarial Seal - Iowa
Commission Number 743465
My Commission Expires Oct 19, 2021
On this , day of ►cif1 20 3 before me the undersigned, a Notary
Public in and for the State f , personally appeared Chris Richard, to me
personally known, who, being by me duly sworn, did say that he is the Managing Member
of CARich Properties, LLC, the Wisconsin limited liability company executing the
instrument to which this is attached and that as said Managing Member of CARich
Properties, LLC acknowledges the execution of said instrument to be the voluntary act
and deed of said company, by it and by him, an individual, voluntarily executed.
Notary Public
14
LIST OF EXHIBITS
EXHIBIT A City Attorney Certificate
EXHIBIT B Opinion of Developer Counsel
EXHIBIT C City Certificate
EXHIBIT D Memorandum of Development Agreement
EXHIBIT E Urban Renewal Plan
EXHIBIT F Certificate of Completion
EXHIBIT G Planning and Design Grant Program
EXHIBIT H Fa�ade Grant Program
EXHIBIT I Financial Consultant Grant Program
15
EXHIBIT A
CITY ATTORNEY'S CERTIFICATE
16
Dubuque
Barry A.Lindahl,Esq. THE CITY OF , ,
Senior Counsel �II-�meric�Cily
Suite 330,Harbor View Place � �Yn� t�.a�
300 Main Street U B E ����
Dubuque,Iowa 52001-6944
(563)583-4ll3 office �" 2007•2012
(563)583-1040 fax MaStE1"�'IlECE On tllE M�SSlSS�p�'Il 2013•2017
balesq�,citvofdubuque•org
Office Hours: 8:00 AM—5:00 PM,T-W-Th
8:00 AM—12:00 PM,F
(DATE)
RE:
Dear �
I have acted as counsel for the City of Dubuque, lowa, in connection with the execution
and delivery of a certain Development Agreement between
(Developer) and the City of Dubuque, lowa (City) dated for reference purposes the
day of , 20_.
The City has duly obtained all necessary approvals and consents for its execution,
delivery and perFormance of this Agreement and has full power and authority to execute,
deliver and perform its obligations under this Agreement, and to the best of my
knowledge, the representations of the City Manager in his letter dated the day of
, 20_, are correct.
Very sincerely,
Barry A. Lindahl, Esq.
Senior Counsel
BAL:tIs
��
EXHIBIT B
OPINION OF DEVELOPER'S COUNSEL
18
Mayor and City Councilmembers
City Hall
13t" and Central Avenue
Dubuque IA 52001
Re: Development Agreement Between the City of Dubuque, lowa and
CARich Properties, LLC
Dear Mayor and City Councilmembers:
We have acted as counsel for CARich Properties, LLC, (Developer) in connection
with the execution and delivery of a certain Development Agreement (Development
Agreement) between Developer and the City of Dubuque, lowa ("City") dated for
reference purposes the day of , 20_
We have examined the original certified copy, or copies otherwise identified to our
satisfaction as being true copies, of the Development Agreement and such other
documents and records as we have deemed relevant and necessary as a basis for the
statements set forth herein.
Based on the pertinent law, the foregoing examination and such other inquiries as
we have deemed appropriate, to our knowledge as of the date of this letter:
1. Developer is a limited liability company organized and existing under the
laws of the State of Wisconsin and has full power and authority to execute, deliver and
perForm in full Development Agreement. The Development Agreement has been duly
and validly authorized, executed and delivered by Developer and, assuming due
authorization, execution and delivery by City, is in full force and effect and is valid and
legally binding instrument of Developer enforceable in accordance with its terms, except
as the same may be limited by bankruptcy, insolvency, reorganization or other laws
relating to or affecting creditors' rights generally.
2. The execution, delivery and performance by Developer of the Development
Agreement and the carrying out of the terms thereof, will not result in violation of any
provision of, or in default under, the articles of incorporation and bylaws of Developer,
any indenture, mortgage, deed of trust, indebtedness, agreement, judgment, decree,
order, statute, rule, regulation or restriction to which Developer is a party or by which
Developer's property is bound or subject.
3. There are no actions, suits or proceedings pending or threatened against or
affecting Developer in any court or before any arbitrator or before or by any governmental
body in which there is a reasonable possibility of an adverse decision which could
materially adversely affect the business (present or prospective), financial position or
results of operations of Developer or which in any manner raises any questions affecting
the validity of the Agreement or the Developer's ability to perForm Developer's obligations
thereunder.
Very truly yours,
19
EXHIBIT C
CITY CERTIFICATE
20
Dubuque
THE CITY OF � City Manager's Office
All•AnErie�Cit� City Hall
U� � ` �"�''I" 50 West 13"�Street
� I I �� Dubuque,Iowa 52001-4864
(563)589-4110 office
(563)589-4149fax
2007•2012 ctymgr@cityofdubuque.org
Masterpiece on the Mississippi Zo13.201,
(DATE)
Dear �
I am the City Manager of the City of Dubuque, lowa and have acted in that capacity in
connection with the execution and delivery of a certain Development Agreement between
(Developer) and the City of Dubuque, lowa (City) dated for reference
purposes the day of , 20_
On behalf of the City of Dubuque, I hereby represent and warrant to Developer that:
(1) City has duly obtained all necessary approvals and consents for its
execution, delivery and performance of this Agreement and that it has full power
and authority to execute, deliver and perform its obligations under this Agreement.
City's attorney shall issue a legal opinion to Developer at time of closing confirming
the representation contained herein, in the form attached hereto as Exhibit B.
(2) City shall exercise its best efforts to cooperate with Developer in the
development process.
(3) City shall exercise its best efforts to resolve any disputes arising during the
development process in a reasonable and prompt fashion.
(4) The execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the
terms and conditions of this Agreement are not prevented by, limited by, in conflict
with, or result in a violation or breach of, the terms, conditions or provisions of the
charter of City, any evidence of indebtedness, agreement or instrument of
whatever nature to which City is now a party or by which it or its property is bound,
or constitute a default under any of the foregoing.
(5) There are no actions, suits or proceedings pending or threatened against or
affecting City in any court or before any arbitrator or before or by any governmental
body in which there is a reasonable possibility of an adverse decision which could
materially adversely affect the financial position or operations of City or which
affects the validity of the Agreement or City's ability to perForm its obligations under
this Agreement.
21
(6) No ordinance or hearing is now or before any local governmental body that
either contemplates or authorizes any public improvements or special tax levies,
the cost of which may be assessed against the Property. To the best of City's
knowledge, there are no plans or efforts by any government agency to widen,
modify, or re-align any street or highway providing access to the Property and there
are no pending or intended public improvements or special assessments affecting
the Property which will result in any charge or lien be levied or assessed against
the Property.
(7) The representations and warranties contained in this article shall be correct
in all respects on and as of the Closing Date with the same force and effect as if
such representations and warranties had been made on and as of the Closing
Date.
Sincerely,
Michael C. Van Milligen
City Manager
MCVM:jh
22
EXHIBIT D
MEMORANDUM OF DEVELOPMENT AGREEMENT
23
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, lowa, an lowa Municipal
Corporation, of Dubuque, lowa, and CARich Properties, LLC was made regarding the
following described premises:
THE SOUTH ONE-FIFTH AND THE SOUTH 14 FEET OF THE SOUTH MIDDLE ONE-
FIFTH OF OUT LOT 440 IN THE CITY OF DUBUQUE, IOWA, ACCORDING TO THE
UNITED STATES COMMISSIONERS MAP OF THE TOWN OF DUBUQUE, IOWA
(locally known as 1706 Central Avenue).
The Development Agreement is dated for reference purposes the day of
, 2020, 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 day of , 2020.
CITY OF DUBUQUE, IOWA CARich, LLC
By By
Roy D. Buol Chris Richard
Mayor Managing Member
24
Attest:
Kevin S. Firnstahl
City Clerk
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
On this day of , 20_, before me, a Notary Public in and for the State of
lowa, in and for said county, personally appeared Roy D. Buol and Kevin S. Firnstahl, to
me personally known, who being by me duly sworn did say that they are the Mayor and
City Clerk, respectively of the City of Dubuque, a Municipal Corporation, created and
existing under the laws of the State of lowa, and that the seal affixed to said instrument
is the seal of said Municipal Corporation and that said instrument was signed and sealed
on behalf of said Municipal corporation by authority and resolution of its City Council and
said Mayor and City Clerk acknowledged said instrument to be the free act and deed of
said Municipal Corporation by it voluntarily executed.
Notary Public, State of lowa
STATE OF )
) SS
COUNTY OF )
On this day of 20_, before me the undersigned, a Notary
Public in and for the State of , personally appeared Chris Richard, to me
personally known, who, being by me duly sworn, did say that he is the Managing Member
of CARich Properties, LLC, the Wisconsin limited liability company executing the
instrument to which this is attached and that as said Managing Member of CARich
Properties, LLC acknowledges the execution of said instrument to be the voluntary act
and deed of said company, by it and by him, an individual, voluntarily executed.
Notary Public, State of
25
EXHIBIT E
URBAN RENEWAL PLAN
On file at the Office of the City Clerk, City Hall, 50 West 13th Street, Dubuque, lowa
26
EXHIBIT F
CERTIFICATE OF COMPLETION
27
CERTIFICATE OF COMPLETION
WHEREAS, the City of Dubuque, lowa, a municipal corporation (the "Grantor"),
has granted incentives to CARich Properties, LLC (the "Grantee"), in accordance with a
Development Agreement dated as of [Date] (the "Agreement"), certain real property
located within the Greater powntown Urban Renewal District of the Grantor and as more
particularly described as follows:
THE SOUTH ONE-FIFTH AND THE SOUTH 14 FEET OF THE SOUTH MIDDLE ONE-
FIFTH OF OUT LOT 440 IN THE CITY OF DUBUQUE, IOWA, ACCORDING TO THE
UNITED STATES COMMISSIONERS MAP OF THE TOWN OF DUBUQUE, IOWA
(locally known as1706 Central Avenue)(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; and
NOW, THEREFORE, pursuant to Section 2.5 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
STATE OF IOWA )
) SS
2s
COUNTY OFDUBUQUE )
On this day of , 2019, before me, the undersigned, a Notary Public
in and for the State of lowa, personally appeared and
acknowledged said execution of the instrument to be his/her voluntary act and deed.
Notary Public in and for
Dubuque County, lowa
29
EXHIBIT G
PLANNING AND DESIGN GRANT PROGRAM
30
PLANNING & DESIGN GRANT INFORMATION
This program provides grants in the Greater powntown Urban Renewal District for hiring architects,
engineers or other professional services used prior to construction.
Amount of Grant: 1:1 matching grant not to exceed ten thousand dollars ($10,000) be awarded
by the City to qualifying projects to offset the actual pre-development costs.
(Example: $8,500 in eligible project costs would receive$4,250 grant matched
by $4,250 in private contribution; $20,000 or greater eligible project costs
would receive the maximum $10,000 grant.)
Grant Specific Conditions:
• Reimbursement is for architectural and engineering fees, feasibility studies, environmental
assessments or other related soft costs.
• Reimbursable expenditures must be documented.
• Owner/developer fees are not permitted as reimbursable expenditures.
• The grant shall not exceed ten percent(10%) of total project costs.
• Grants will be disbursed upon completion of the project at a rate of $0.50 for each $1.00 of
qualified costs.
Approval Process:
1. Design review by the City Planning Department and/or the Historical Preservation Commission is
required for exterior work on the project.
2. Grant applications will be reviewed by City staff Review Committee and approved by the City
Manager.
3. Funding will be disbursed upon staff review of documented expenditures and inspection of a
completed project.
31
EXHIBIT H
FA�ADE GRANT PROGRAM
32
FACADE GRANT INFORMATION
This program provides grants in the Greater powntown Urban Renewal District for front or rear fa�ade
renovation to restore the fa�ade to its historic appearance or improve the overall appearance.
Amount of Grant: 1:1 matching grant not to exceed ten thousand dollars ($10,000) shall be
awarded by the City to qualifying projects based on total eligible project costs.
(Example: $8,500 in eligible project costs would receive a $4,250 grant
matched by $4,250 in private contribution; $20,000 or greater eligible project
costs would receive the maximum $10,000 grant.)
Grant Specific Conditions:
• Reimbursement is for labor and material costs associated with fa�ade improvements, including
but not limited to, rehabilitating or improving windows, paint, signage, or awnings to enhance
overall appearance.
• Landscaping or screening with fencing or retaining walls may be a reimbursable expense if a
determination is made that property is improved adjacent to public right-of-way.
• In order to receive reimbursement for repointing, a mortar analysis sample may be requested
for each fa�ade that will be repointed. The applicant must adhere to the results of that analysis
in their rehabilitation work as part of their approved project plan. The City may request
verification that the new mortar matches the results of the mortar analysis.
• Language from the National Park Service Technical Preservation Services Briefs may be
attached as a condition for a building permit if the applicant chooses to perform repointing on
the project.
• Reimbursable expenditures must be documented.
• Grants will be disbursed upon completion of work at a rate of$.50 for each $1.00 of qualified
costs.
Approval Process:
1. Design review by the City Planning Department and/or the Historical Preservation Commission is
required for exterior work on the project.
2. Grant applications will be reviewed by City staff Review Committee and approved by the City
Manager.
3. Funding will be disbursed upon staff review of documented expenditures and inspection of a
completed project.
33
EXHIBIT I
FINANCIAL CONSULTANT GRANT PROGRAM
34
FINANCIAL CONSULTANT GRANT INFORMATION
This program provides grants in the Greater powntown Urban Renewal District for hiring a financial
consultant to analyze the feasibility of projects.
Amount of Grant: 1:1 matching grant not to exceed fifteen thousand dollars ($15,000) shall be
awarded to qualifying projects based on total eligible project costs. (Example:
$8,500 in eligible project costs would receive a $4,250 grant matched by
$4,250 in private contribution; $30,000 or greater eligible costs would receive
the maximum $15,000 grant.)
Grant Specific Conditions:
• Reimbursement is for fees associated with hiring a professional financial consultant.
• Reimbursable expenditures must be documented.
• This grant shall not exceed ten percent(10%) of total project costs.
• The rehabilitation project must be completed for the Financial Consultant Grant to be funded.
• Grants will be disbursed upon completion of work at a rate of$.50 for each $1.00 of qualified
costs.
Approval Process:
1. Design review by the City Planning Department and/or the Historical Preservation Commission is
required for exterior work on the project.
2. Grant applications will be reviewed by City staff Review Committee and approved by the City
Manager.
3. Funding will be disbursed upon staff review of documented expenditures and inspection of a
completed project.
35
Dubuque Economic Development
Department
THE CITY OF � 1300 Main Street
All•America Eity Dubuque,lowa 52001-4763
�� � "h�N",`��nz�'��:�:��� Office(563)589-4393
1 I ��� TTY(563)690-6678
http://www.cityofd u bu q ue.org
zoo�=zoiz*zo�3
Masterpiece on the Mississippi �oi�*Zoi9
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Background Information on City Incentives for Housing/Mixed-Use
Projects in Downtown Dubuque
DATE: August 2, 2020
INTRODUCTION
This memorandum provides general information on the type of programs offered from
the City of Dubuque Economic Development Department for the purpose of
incentivizing the creation of downtown rental residential units. It also provides
information on the various other funding and financing sources used by developers of
these projects.
BACKGROUND
For decades, the Economic Development Department has developed and administered
programs to provide funding and financing for projects in the downtown area that create
rental residential units — either with or without an accompanying commercial element to
the project. Programs have been added, deleted, and modified over the years based on
funds available and changing legislation, policies, and needs.
DISCUSSION
The attached spreadsheet gives a listing of projects found in our files that over the past
20 years have made use of City incentives. Projects use a combination of incentive
programs based on eligibility and funds available.
A revolving loan fund was established to provide $300,000 in financing for projects
creating jobs and/or downtown rental residential housing units. The loan is eligible for
partial forgiveness based upon the number of jobs and housing units created. The
program was successful to the point where funds available were not able to keep up
with the demand. The program was suspended shortly after loans began being
committed in future years. Five of these loans are still to be disbursed over the coming
years as funds are available in the revolving loan pool.
The most-used programs from our department are the Housing Creation Grant of
$10,000/unit and a combination of Downtown Rehabilitation Grants (fa�ade, planning &
design, and financial consultant) up to a maximum of $35,000.
Tax Increment Financing (TIF) is also committed to many of the projects. This tool uses
the increased property value at the project location to create the incentive. It is only in
completing the project that the incentive is self-generated. The attached spreadsheet
indicates the estimated total TIF rebates over the life of the commitment. Once the
commitment to the project (typically 10 years) is complete, the full increased property
tax revenue is distributed to the various local taxing bodies (Dubuque Community
School District, Dubuque County, City of Dubuque).
While TIF has been used frequently to assist projects, this will likely not be the case
going forward. A large portion of the downtown area has now been designated as an
Urban Revitalization Area. This means that projects will be eligible for up to 10 years of
tax abatement on the increased value of their property through a streamlined process at
the Assessor's office. This provides the same type of incentive as TIF with no ongoing
City staff time needed, as with TIF agreements that require semi-annual processing of
TIF rebate payments. For any projects not eligible for tax abatement through the Urban
Revitalization program, and for programs where we wish to track job creation numbers,
TIF still remains a potential incentive.
Downtown rehabilitation projects prove difficult to create any return on investment even
with a considerable amount of equity and traditional financing injected into the project.
For this reason, a host of incentive programs have been created at the State and
Federal level as well: Federal Historic Tax Credits, New Markets Tax Credits,
Community Development Block Grant funds, State Historic Tax Credits, Low Income
Housing Tax Credits, Grayfield Tax Credits, Brownfield Tax Credits, Brownfield
Assessment/ Planning/ Cleanup Grants, Main Street lowa Challenge Grants, and
others. Developers typically layer close to a dozen funding and financing sources into
their "capital stack" in order to make the project solvent.
In unique circumstances, sources of funds and financing have been modified to meet
current needs. One example is the increase of the Federal Historic Tax Credit from a
20% to a 26% tax credit in identified areas of the United States following Hurricane
2
Katrina and the Midwest floods of 2008. The temporary increase increased
development during difficult economic times.
Another change at that time was the State of lowa making Community Development
Block Grant funds available to projects in communities affected by the 2008 floods.
This provided approximately $12 million to the $35 million Caradco project. This sort of
tailored assistance is key to moving projects forward when faced with difficult market
conditions.
Our department continuously receives inquiries and applications for our incentive
programs, all of which are over-subscribed early in each fiscal year.
RECOMMENDATION/ ACTION STEP
The ongoing City Council support of these programs has assisted in the creation of
hundreds of quality rental residential space in our downtown over the past two decades.
I recommend continued support for these programs.
3
MASTERLIST OF INCENTIVES - DOWNTOWN HOUSING/MIXED-USE ONLY
REVOLVING DECONSTRUCT FIN CONSULT
FISCAL YEAR NAME ADDRESS TOTAL PROJECT COST LOAN* HOUSING GRANT REHAB LOAN LOAN FA�ADE GRANT PLAN & DESIGN GRANT TIF**
2001 lowa Inn 125 W 9th Street $ 3,900,000.00 $ 220,000.00 $ - $ - $ - $ - $ 10,000.00 $ - $ -
2006 Gronen/1000 Block Main 1000 Block Main Street $ 7,000,000.00 $ 300,000.00 $ - $ - $ - $ - $ - $ - $ -
2009 40 Main, LLC 40 Main Street $ 4,000,000.00 $ 300,000.00 $ 300,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ -
2010 D &J Realty, LLC 163 Main Street $ 450,000.00 $ - $ 30,000.00 $ - $ - $ - $ - $ - $ -
2010 44 Main, LLC 44 Main Street $ 4,000,000.00 $ 300,000.00 $ 240,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 420,000.00
2010 Bricktown -2010 299 Main Street $ 2,620,000.00 $ - $ 210,000.00 $ - $ - $ - $ - $ - $ 339,180.00
2010 Walker Shoe/Victory Cafe 756 Main Street $ 1,000,000.00 $ 300,000.00 $ 40,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 77,588.00
2011 Caradco Building, LLLP 900 Jackson Street $ 23,000,000.00 $ 300,000.00 $ 720,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 1,571,850.00
2011 The Plastic Center Betty Jane Block W 5th $ 2,000,000.00 $ 300,000.00 $ 110,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ - $ 107,259.00
2011 Franklin Investments, LLC 39 Bluff Street $ 1,750,000.00 $ 300,000.00 $ 190,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 5,000.00 $ 321,817.00
2011 Nottingham Properties, LLC 485 Locust Street $ 288,000.00 $ - $ 20,000.00 $ - $ - $ 10,000.00 $ - $ - $ 2,418.00
2012 Bonson Block, LLC 356 Main Street $ 1,767,500.00 $ - $ 80,000.00 $ - $ - $ - $ - $ - $ 147,202.00
2013 Linseed Oil Paintworks 151 E 9th Street $ 4,000,000.00 $ - $ 160,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 89,660.00
2013 Weaver Castle, LLC 324 W Locust Street $ 400,000.00 $ - $ 40,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ -
2013 Novelty Iron Works 333 E 10th Street $ 27,000,000.00 $ - $ 760,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 1,164,007.00
2014 Weaver Castle, LLC 1576-1580 Locust Street $ 300,000.00 $ - $ 30,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ -
2014 Weaver Castle, LLC 407 Loras Boulevard $ 300,000.00 $ - $ 40,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ -
2015 Kenneth Oberbroeckling 253 Main Street $ 600,000.00 $ - $ 40,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 28,810.00
2016 Friends of St. Mary's d/b/a Steeple Square 1501 Jackson Street $ 3,800,000.00 $ - $ 120,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 115,029.00
2016 CA Rich Properties 1812 Central Avenue $ 390,000.00 $ - $ 40,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ -
2017 Stout, LLC 1145 Locust Street $ 150,000.00 $ - $ 50,000.00 $ - $ - $ 20,000.00 $ 10,000.00 $ 15,000.00 $ -
2017 Full Circle Communities, Inc. 180 W 15th Street $ 6,000,000.00 $ - $ 40,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ -
2018 3000 Jackson, LC 3000 Jackson Street $ 30,000,000.00 $ 750,000.00 $ 500,000.00 $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 1,822,000.00
2019 Tbill's Properties, LLC 1358 Locust Street $ 114,565.50 $ - $ 30,000.00 $ - $ - $ 10,000.00 $ - $ - $ -
2019 Marquette Hall, LLC 2222 Queen Street $ 6,000,000.00 $ - $ 30,000.00 $ - $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 179,830.00
2020 84 Main, LLC 84 Main Street $ 95,000.00 $ - $ 40,000.00 $ - $ - $ 10,000.00 $ - $ - $ -
2020 278 W 17th Street 278 W 17th Street $ 400,000.00 $ 330,000.00 $ 120,000.00 $ - $ 10,000.00 $ 10,000.00 $ 15,000.00 $ -
2020 Merge Port of Dubuque $ 18,000,000.00 $ - $ - $ - $ - $ - $ - $ - $ 1,853,588.00
2020 1838 Central - CSB Consulting 1838 Central $ 225,000.00 $ - $ 30,000.00 $ - $ - $ - $ - $ - $ -
2020 Montana House, LLC 245 W 1st Street $ 96,956.00 $ - $ - $ - $ - $ 10,000.00 $ 5,219.00 $ 1,250.00 $ -
Totals $ 149,647,021.50 $ 2,320,000.00 $ 4,470,000.00 $ 120,000.00 $ 500,000.00 $ 240,000.00 $ 205,219.00 $ 261,250.00 $ 8,240,238.00
* REVOLVING LOAN -over subscribed by 2011- AppPDX $2.9 million in loans, $5.2 million in grants, and $8.2 million in TIF have incentivized
no longer used $150 million in housing/mixed-use development .
TIF-downtown is now mostly an urban
** revitalization area, so no longer needed for tax Eve1'y Clty $1.00 leverages approx $9.20.
abatement