Adams Co. EDA Loan AgreeMEMORANDUM
July 1, 2003
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Amendment #1 to Contract with the Economic Development
Administration
In December of 2002, the City Council approved a contract with the Economic
Development Administration (EDA) for $2,000,000 to assist the city in acquiring the
Adams Company property, relocating the business and demolishing the existing
structures.
The city's grant agreement with EDA stipulates that the project expenditures would start
by June 17, 2003, and the project would be completed by June 14, 2004. Because the
dates are not realistic, an extension of the contract dates has been requested.
Economic Development Director Bill Baum recommends City Council approval of
Project Amendment #1 with the Economic Development Administration, extending the
start date to December 17, 2003, and the end date to June 17, 2005.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William J. Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
June 17,2003
TO:
FROM:
SUBJECT:
Michael Van Milligen, City Manager
~/i Iml iearr~ On~ eBn~ u#r~ 't ~c~:~r iaCc~ew~' ~i°tPhr~ eEnloD~ r(~ Cmt ;cr E~elo~pment~'-~'--
Administration
INTRODUCTION
The attached resolution provides for the formal approval of an amendment to the City's
existing contract with the Economic Development Administration for a $2 Million grant
for the acquisition of property and relocation of the Adams Company.
DISCUSSION
In December of 2002, the City Council approved a contract with the Economic
Development Administration (EDA) for $2,000,000 to assist the City in acquiring Adams
Company's property, relocating the business, and demolishing the existing structures.
Since that time, the City had been negotiating the terms and conditions of a
Development Agreement with the Company, which the City Council approved on May
19, 2003. We anticipate a closing on the property no later than November 1, 2003.
The City's grant agreement with EDA stipulates that the project expenditures would start
by June 17, 2003, and the project would be completed by June 14, 2004. Because the
dates are not realistic, I requested an extension of the contract dates.
EDA has responded and has provided Project Amendment #1 to the contract, extending
the start date to December 17, 2003, and the end. date to June 17, 2005.
RECOMMENDATION
I recommend the City Council adopt the attached resolution approving the Project
Amendment #1 with the Economic Development Administration.
F:\USERS\WBaum~EDA APPLICATION FOR ADAMS COMPANY~vlemo from Bill Baum to Mike Van Miliigen on EDA contract
extension.doc
RESOLUTION NO. 225-03
RESOLUTION AUTHORIZING THE EXECUTION OF PROJECT AMENDMENT NO.
TO A CONTRACT WITH THE ECONOMIC DEVELOPMENT ADMINISTRATION
Whereas, the City Council of Dubuque has approved a contract with the Economic
Development Administration (EDA) for a $2 Million grant to assist to assist in the
acquisition of property owned by the Adams Company in the Port of Dubuque,
relocation of the Company, and demolition of the existing facility; and
Whereas, because of the need to facilitate the negotiation of a Development
Agreement with the Adams Company for the pumhase of the company's property, the
implementation of the contract has been delayed and an extension of time has been
requested, and
Whereas, EDA has provided a proposed six month extension of time for the start of the
project, and has submitted Project Amendment No. I of the contract to the City for
approval;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the attached Project Amendment #1 with EDA for an extension of time
is hereby approved.
Section 2. That the Mayor is hereby authorized to execute, and the City Manager is
hereby directed to submit said Project Amendment #1 to the Economic Development
Administration.
Passed, approved, and adopted this 7th day of July, 2003.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
F:\USERS\WBaum~EDA APPLICATION FOR ADAMS COMPANY~esolL, tion approwng EDA Amendment #1.doc
U.S. DEPARTMENT OF COMMERCE
Economic Development Administration
DENVER REGIONAL OFFICE
1244 Speer Boulevard, Room 670
Denver, Colorado 80204-3584
(303) 844-5455 FAX (303) 844-3968
E-Mail: MKathrynAIspach@eda.doc.gov
June 4, 2003
In Reply Refer to:
Project No: 05-01-03816
Mr. Wilham J. Baum, Director
Economic Development Department
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
Re: Project Amendment No. 1
Dear Mr. Baum:
An amendment which revises the Project Development Time Schedule, as set forth in Special
Condition No.1 of the Financial Assistance Award, has been processed. This Amendment
provides a 6-month time extension for start of construction of the project.
The principal reasons for the need of a time extension are (1) to facilitate the negotiation of a
development agreement with the Adams Company for the purchase of the company's property
and the relocation of the company. A Phase 1I Environmental Assessment and clean-up plan will
also need to be completed and submitted for EDA's review prior to closing.
The original Project development time schedule was as follows:
Time allowed after approval of the Financial Assistance Award for:
Start of Construction
Construction Period
06 months (June 17, 2003)
18 months (June 17, 2004)
Subject to your acceptance, Special Award Condition No. 1 of the Financial Assistance Award is
hereby amended to reflect the following:
Start of Construction
Construction Period
12 months (December 17, 2003)
18 months (June 17, 2005)
All other terms and conditions of the Financial Assistance Award shall remain in full force and
effect. If the provisions of this Amendment are acceptable, please sign both copies and return one
copy to the Denver Regional Office. Retain the other copy for your files.
Amendment No. 1
EDA Project No. 05-01-03816
City of Dubuque
Page 2
Your acceptance of the Offer to Amend the Financial Assistance Award should be indicated by
the signature of your principal official, and certified by an official other than the accepting
official, on the signed copies of the Amendment. The acceptance copy must be returned to the
Denver Regional Office, Economic Development Administration, 1244 Speer Boulevard; Room
670, Denver Colorado 80204.
Anthony J. Pre~te
Regional Director
Acceptance:
The Grant Amendment is hereby accepted this
by the City of Dubuque, Iowa
day of June, 2003
Signature of Principal Official
Printed Name
Certification:
Signature
Printed Name
U.S. DEPARTMENT OF COMMERCE
Economic Development Administration
DENVER REGIONAL OFFICE
1244 Speer Boulevard, Room 670
Denver, Colorado 80204..3584
(303) 844-5455 FAX (303) 844-3968
E-Mail: MKathrynAIspach@eda.doc.gov
June 4, 2003
In Reply Refer to:
Project No: 05-01-03816
Mr. William J. Baum, Director
Economic Development Department
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
Re: Project Amendment No. 1
Dear Mr. Baum:
An amendment which revises the Project Development Time Schedule, as set forth in Special
Condition No.1 of the Financial Assistance Award, has been processed. This Amendment
provides a 6-month time extension for start of construction of the project.
The principal reasons for the need of a time extension are (1) to facilitate the negotiation of a
development agreement with the Adams Company for the purchase of the company's property
and the relocation of the company. A Phase 1/Environmental Assessment and clean-up plan will
also need to be completed and submitted for EDA's review prior to closing.
The original project development time schedule was as follows:
Time allowed after approval of the Financial Assistance Award for:
Start of Construction
Construction Period
06 months (June 17, 2003)
18 months (June 17, 2004)
Subject to your acceptance, Special Award Condition No. 1 of the Financial Assistance Award is
hereby amended to reflect the following:
Start of Construction
Construction Period
12 months (Deccunber 17, 2003)
18 months (June 17, 2005)
All other terms and conditions of the Financial Assistance Award shall remain in full force and
effect. If the provisions of this Amendment are acceptable, please sign both copies and return one
copy to the Denver Regional Office. Retain the other copy for your files.
Amendment No. 1
EDA Project No. 05-01-03816
City of Dubuque
Page 2
Your acceptance of the Offer to Amend the Financial Assistance Award should be indicated by
the signature of your principal official, and certified by an official other than the accepting
official, on the signed copies of the Amendment. The acceptance copy must be returned to the
Denver Regional Office, Economic Development Administration, 1244 Speer Boulevard; Room
670, Denver Colorado 80204.
~mthony J. Preite
Regional Director
Acceptance:
The Grant Amendment is hereby accepted this
by the City of Dubuque, Iowa
day of June, 2003
Signature of Principal Official
Printed Name
Certification:
Signature
Printed Name