Second Amendment to Grant Agreement with Montana House, LLC Copyrighted
January 4, 2021
City of Dubuque Consent Items # 5.
City Council Meeting
ITEM TITLE: SecondAmendmentto GrantAgreementbetweenthe Cityof Dubuque
and Montana House, LLC to redevelop property at 245 West 1 st Street
SUM MARY: City Manager recommending approval of a Second Amendment to Grant
Agreement between the City of Dubuque and Montana House, LLC for
rehabilitation of 245 West 1 st Street to provide an additional $5,000 in
grant funding.
RESOLUTION Approving the Second Amendment to Grant Agreement
between the City of Dubuque, lowa and Montana House, LLC.
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
Montana House Second Amendment to Grant City Manager Memo
Agreement-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
Second Amendment Supporting Documentation
Dubuque
THE CITY OF �
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Second Amendment to Grant Agreement between the City of Dubuque
and Montana House, LLC to Redevelop Property at 245 W 1 st Street
DATE: December 23, 2020
The rehabilitation project for 245 W 1 st Street is nearly completed. The project has met
all design standards and requirements previously provided by City Staff. However,
there is one additional aspect of the fa�ade that staff have just recently recognized that
needs to be addressed. The drip edge on the front farade is not in keeping with the
character of the brick overlay. Additionally, the way the drip edge is installed would
allow water to penetrate the fa�ade and potentially damage the visible storefront.
Requirements for the drip edge were not specifically addressed in the previous Design
Letter from the City. Therefore, addressing these concerns essentially asks the
Developer to perform additional work not required in the original letter. In addition to the
City's interest in having this prominent building at the southern gateway be a shining
example of the quality of our downtown, it is also in the City's best interest to protect
what has already been invested in the project by working with the building owner to
correct the issue.
Economic Development Director Jill Connors recommends City Council approval of a
Second Amendment to Grant Agreement between the City of Dubuque and Montana
House, LLC for rehabilitation of 245 W 1St Street to provide an additional $5,000 in grant
funding.
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
Cori Burbach, Assistant City Manager
Jill M. Connors, Economic Development Director
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
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TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: Second Amendment to Grant Agreement between the City of
Dubuque and Montana House, LLC to Redevelop Property at 245 W
1 St Street
DATE: December 21, 2020
INTRODUCTION
This memorandum presents for City Council consideration and action the attached
resolution approving a Second Amendment to Grant Agreement between the City of
Dubuque and Montana House, LLC for its rehabilitation of 245 W 1St Street.
BACKGROUND
The Downtown Rehabilitation Loan Program (DRLP) provides several incentives from the
Economic Development department for the rehabilitation of historic buildings in our
greater downtown.
This 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 these programs to be great tools for attracting
and retaining a quality workforce for our businesses.
On April 20, 2020 the Dubuque City Council awarded to Montana House, LLC a grant in
the amount of $16,469 for the redevelopment of 245 W 1St Street. Improvements to the
building include improved commercial space and storefront and the creation of four
market-rate residential apartments. Several unforeseen issues have arisen while the
improvements to the building have been made, including but not limited to, roof
replacement, new sprinkler system and fire suppression requirements, and issues with
the water line regarding neighboring property.
Additionally, City Staff have worked with the building owner to adjust window design,
window color, ghost signs, and appropriate mortar as architectural discovery has
uncovered obstacles throughout this rehabilitation. To resolve these complicated issues
while maintaining the historic character of the building, a First Amendment was approved
by Resolution 292A-20.
Since the building is such a visible component of the downtown city entrance, City Staff
have worked diligently with the building owner to address fa�ade aspects through a state
historic tax credit lens. Overall, the building owner has been very willing to meet these
high restoration standards, even when unexpected challenges have emerged throughout
the process.
DISCUSSION
The rehabilitation project for 245 W 1 St Street is nearly completed. The project has met all
design standards and requirements previously provided by City Staff. However, there is
one additional aspect of the fa�ade that staff have just recently recognized that needs to
be addressed. The drip edge on the front farade is not in keeping with the character of
the brick overlay. Additionally, the way the drip edge is installed would allow water to
penetrate the fa�ade and potentially damage the visible storefront. Requirements for the
drip edge were not specifically addressed in the previous Design Letter from the City.
Therefore, addressing these concerns essentially asks the Developer to perform
additional work not required in the original letter. In addition to the City's interest in having
this prominent building at the southern gateway be a shining example of the quality of our
downtown, it is also in the City's best interest to protect what has already been invested
in the project by working with the building owner to correct the issue.
A similar situation arose with the rehabilitation of the Stout House — a prominent building
further north on Locust Street—when the costs to properly rehabilitate the building began
to exceed estimates. Our department awarded an additional $10,000 to the fa�ade grant
for that project.
Staff have determined that an additional $5,000 in grant funding would be enough to
properly design and install a new drip edge. This funding would be available as a 1:1
match for the farade work, as is always required for this grant program
2
BUDGETIMPACT
CIP USE CURRENT RECOMMENDED REMAINING
BALANCE PROJECTFUNDING BALANCE
2411942 FA�ADE, ETC. $15,760 $5,000 $10,760
3602436 FA�ADE, ETC. - - -
3602438 HOUSING $1,970 - $1,970
3602267 HOUSING - - -
The above chart takes into consideration all encumbrances and previous balances from
all the consolidated CIP budgets and leaves a remaining total of $12,730 in our
rehabilitation grant programs for the remainder of FY 2021
Assistant Planner Chris Happ Olson has provided an amended Design Letter with
modifications to the farade. A Second Amendment has been prepared which
designates the minimum improvements shall be in conformity with the amended Design
Letter.
RECOMMENDATION / ACTION STEP
I respectfully request City Council approval of the attached resolution approving the
Second Amendment to Grant Agreement between the City of Dubuque, lowa and
Montana House, LLC.
3
Prepared by: Jill Connors, Economic Development, 50 W. 1311 Street, Dubuque IA 52001, 563 589-4393
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13th St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 2-21
APPROVING THE SECOND AMENDMENT TO GRANT AGREEMENT BETWEEN THE CITY
OF DUBUQUE, IOWA AND MONTANA HOUSE, LLC.
WHEREAS, the City of Dubuque (City) and Montana House, LLC (Grant Recipient)
previously entered into a Grant Agreement dated April 20, 2020 for the redevelopment of 245 W
1st Street in the City of Dubuque, Iowa (the Project); and
. WHEREAS, City and Grant Recipient agreed to and the City Council approved a First
Amendment to the Grant Agreement by Resolution 292A-20 dated September 21, 2020; and
WHEREAS, City and Grant Recipient desire to further amend the Grant Agreement as
set forth in the attached Second Amendment to Grant Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1 That- the Second Amendment to Grant Agreement between the City of
Dubuque, Iowa and Montana House, .: LL' C, a copy of which is attached hereto, is hereby
approved.
Section 2. That the Mayor is hereby authorized and directed to execute the First
Amendment to 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 the City Manager is authorized to take such actions as are necessary
to comply with the terms of the Second Amendment to Grant Agreement as herein approved.
Passed, approved and adopted this 4th day of January, 2021.
0
Attest:
aiAu� //6444,
Adrienne N. Breitfelder, City Clerk
Roy D. Buol, Mayor
SECOND AMENDMENT
TO
GRANT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
MONTANA HOUSE, LLC
This Second Amendment to Grant Agreement, dated for reference purposes the
4th day of January , 2021, is made and entered into by the City of Dubuque,
Iowa, a municipality (City), established pursuant to the Iowa Code and acting under
authorization of Iowa Code Chapter 403, as amended (the Urban Renewal Act), and
Montana House, LLC (Grant Recipient).
Whereas, City and Grant Recipient previously entered into a Grant Agreement
dated April 20, 2020 (the Grant Agreement); and
Whereas, City and Grant Recipient agreed to and the City Council approved a First
Amendment to the Grant Agreement by Resolution 292A-20 dated September 21, 2020;
and
Whereas, °City and Grant Recipient desire to further amend the Grant Agreement
as set forth herein.
NOW THEREFORE, in consideration of the mutual terms and covenants contained
herein, City and Grant Recipient agree as follows:
1. Section 1.1 of the Grant Agreement is hereby amended to read as follows:
1.1 Required Minimum Improvements. Grant Recipient shall improve the
Development Property as follows:
Fagade improvements including rehabilitation of doors and
windows. The lintel/beam that runs the entire width of the
storefronts, below the Montana House ghost sign, shall be
covered with a new fabricated metal panel according to the
attached design and proposal by Giese. Existing wood
substructure to be properly fitted by cutting and/or sinking to
create substructure which is flush with the surrounding bricks.
Recessed panel on each column shall be finished with a 2-
inch cap at the top of each column, creating rectangular
recess, as it meets the new metal panel at the lintel above.
(the "Minimum Improvements"). The Minimum Improvements shall be
completed in substantial conformity with the scope and scale described in
Grant Recipient's application to the program and the Amended Design Letter
attached hereto.
2. Section 3.1 of the Grant Agreement is hereby amended to read as follows:
3.1 Fapade Grant. City agrees to provide a matching (1:1) grant not to exceed
Fifteen Thousand Dollars ($15,000) to reimburse Grant Recipient for documented
costs that improve the overall appearance of the Development Property, provided
the Proiect as completed meets the criteria of the Facade Grant Program.
3. Except as modified herein, the Grant Agreement shall remain in full force
and effect.
CITY OF DUBUQUE, IOWA MONTANA HOUSE, LLC
By: PY. B
Roy D. ol, Mayor a y 'lurle caner
2
AMENDED DESIGN LETTER
3
Dubuque Planning Services Department
THE CITY OF � City Hall - 50 West 13th Street
lul-l�nerie�ci� Dubuque, IA 52001-4845
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(563) 589 4221 fax
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MEMORANDUM
TO: Jill Connors, Economic Development Director
FROM: Chris Happ Olson, Assistant Planner C�-v
SUBJECT: Fa�ade Grant Amendment #2: 245-249 W. 1 St Street- the Montana House
DATE: December 21, 2020
Introduction
This memorandum is a second amendment to the previous design review letter (4-3-
2020) and amendment (9-3-2020) for work funded with a Fa�ade Grant for the property
located at 245-249 W. 1 St Street- the historic Montana House.
Backqround
The previously mentioned design review letter and amendment stand. All specifications
remain in place, unless expressly addressed in this memorandum.
NO CHANGES TO PREVIOUS LETTER
#2 Window Design
#3 Window Color
#4 Ghost Signs
#5 Necessary Egress
#6 Bricked in windows or doors
#7 Mortar
MODIFICATIONS TO AMENDMENT DATED 9-3-2020
#1 Storefront: Previous information regarding the Storefront in the original letter and
amendment stand. New review requirements include:
Historic wood lintel/beam: The lintel/beam that runs the entire width of the
storefronts, below the Montana House ghost sign, shall be covered with a new
fabricated metal panel according to the attached design and proposal by Giese
Sheet Metal. Existing wood substructure to be properly fitted by cutting and/or
sinking to create substructure which is flush with the surrounding bricks. See
appendix.
Historic wood columns: Recessed panel on each column shall be finished with a
2" cap at the top of each columns, creating a rectangular recess, as it meets the
new metal panel at the lintel above. Location of cap is noted in red below.
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Requirements
The project, if done in accordance with the described scope of work and drawings will
meet the applicable guidelines and standards and is recommended for approval in
terms of design review. Any deviation from the approved scope of work must be
reviewed and approved by the Economic Development and Planning Services
Departments prior to initiation. It is the property owner's responsibility to read and
understand the terms of approval as well as ensure compliance with the project
requirements. It is the property owner's responsibility to obtain the necessary
building permits prior to starting work. It is the property owner's responsibility to
ensure all contractors understand and properly execute all expectation of the
project. Failure to comply with the approved scope of work will result in forfeiture
of all funding.
APPENDIX:
• Giese Sheet Metal — section rendering and specifications
2
' .:� ' • •
December 16, 2020
Mr. Sam Murley
14157 Deerfield Court
Dubuque, IA 52003
RE: Monta�a House LLC - 245 W 15{ Street, Dubuque, IA 52001
Revise Trim Metal fo Cover Head�r Board
Dear Sam:
As per our onsite meeting regarding the trim metal to caver the header boaz•d, we propase to
fabricate and izastall �0 LF of new 22-gauge prefinished steel decorative trim metal. Plea�e see
attached detaiI. Work to include the following;
1. We recommend leaving the newly installed cut in countez•flashing rnetal to �.ot damage
the mo��ar joint.
2. We would cut the hem of the existing counter flashing �netal with a power tool called a
"double cut."
3, Slide behind the counter flashing meta140 LF of nernr 22-gauge prefinished steel
decorative trim metal, black in color,
4. Install end caps on left and right of trim metal to rz�atch profile.
5. Use of ladders and a ladder pick to install new decorative trim metal.
NOTES:
1. The above proposal does not include removal/reinstall of electrical conduit and light
fixtures,
2. The above proposal is only valid for thirty (30} days.
3. A 3% surcharge will be ADDED to the billed amount if paid with a credit ca�•d.
Thank you for the o�portunity to bid on this project. �f you have any questions please feel fi•ee to
call.
Sincerely,
�� ; 2�--_ _
Dann S rank - -
y p Cell; (563} 590 1228
Projeet Manager/Estimator Emai1: dspr4inl.�a�giesecc�,cc��n
Giese Roofing Company
2820 Elm 5treet, Dubuque, IA 52001
(563)588-2060 Fhone•(563)588-2068 Fax
www.gieseco.com
3/4"—�
1 1/2" 2„
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10" 18" ove r a I I
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