Loading...
First Amendment to Grant Agreement with 84 Main, LLCCity of Dubuque City Council Meeting Consent Items # 6. Copyrighted July 6, 2021 ITEM TITLE: First Amendment to Grant Agreement Between the Cityof Dubuque and 84 Main, L L C for the Creation of Rental Units at 84 Main Street SUMMARY: City Manager recommending approval of the First Amendment to Grant Agreement between the City of Dubuque and 84 Main, LLC for its creation of rental units at 84 Main Street. RESOLUTION Approving the FirstAmendmentto Grant Agreement between the City of Dubuque, Iowa and 84 Main, L L C SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: Description Type First Amendment to Grant Agreement with 84 Main- City Manager Memo MVM Memo Staff Memo Staff Memo Resolution Resolutions F i rst Amendment Supporting Documentation THE C Dubuque DUUB-.-*.-TE *Awiu Ciq ' iece on the Mississippi Masterpiece PP zoo�•zoi 2-2013 zoi7*2019oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: First Amendment to Grant Agreement Between the City of Dubuque and 84 Main, LLC for the Creation of Rental Units at 84 Main Street DATE: June 21, 2021 Economic Development Director Jill Connors recommends City Council approval of the First Amendment to Grant Agreement between the City of Dubuque and 84 Main, LLC for its creation of rental units at 84 Main Street. The amendment changes the completion date to October 1, 2021. 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 THE CITY OF E Masterpiece on the Mississippi Dubuque AII•Amerin City NniK���i rnz: u;v�ur 2007-2012.2013 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Jill M. Connors, Economic Development Director Economic Development Department 1300 Main Street Dubuque, Iowa 52001-4763 Office (563) 589-4393 TTY (563) 690-6678 http://www.cityofdubuque.org SUBJECT: First Amendment to Grant Agreement Between the City of Dubuque and 84 Main, LLC for the Creation of Rental Units at 84 Main Street DATE: June 18, 2021 INTRODUCTION This memorandum presents for City Council consideration and action the attached resolution approving a First Amendment to Grant Agreement between the City of Dubuque and 84 Main, LLC for its creation of rental units at 84 Main 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 December 2, 2019 the Dubuque City Council awarded to 84 Main, LLC a grant in the amount of $40,000 for the creation of four new rental units at 84 Main Street. The original agreement required the minimum improvements to the property be completed by December 31, 2020. DISCUSSION The creation of four new rental units at 84 Main Street is well underway. 84 Main, LLC is working closely with Starka Johnson Architects as well as City Staff across numerous departments to unsure these quality rental units are finished as soon as possible. Unfortunately, supply and labor shortages due to the ongoing pandemic have pushed the project behind schedule. 84 Main, LLC has requested an amended completion date of October 1, 2021. This will allow time for the project to be completed and properly inspected. RECOMMENDATION / ACTION STEP I respectfully request City Council approval of the attached resolution approving the First Amendment to Grant Agreement between the City of Dubuque and 84 Main, LLC 2 Prepared by: Jill Connors, Economic Development, 50 W. 1311 Street, Dubuque IA 52001, 563 589-4393 Return to: Jill Connors, Economic Development, 50 W. 1311 Street, Dubuque IA 52001, 563 589-4393 RESOLUTION NO. 224-21 APPROVING THE FIRST AMENDMENT TO GRANT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND 84 MAIN, LLC WHEREAS, the City of Dubuque (City) and 84 Main, LLC (Grant Recipient) previously entered into a Grant Agreement dated December 2, 2019 for the creation of four new rental units at 84 Main Street in the City of Dubuque, Iowa (the Project); and WHEREAS, City and Grant Recipient desire to amend the Grant Agreement as set forth in the attached First Amendment to Grant Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the First Amendment to Grant Agreement between the City of Dubuque, Iowa and 84 Main, LLC, 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 First Amendment to Grant Agreement as herein approved. Passed, approved and adopted this 6t" day of July, 2021. t% / Roy . Buol, M yor Attest: �� /' 41�" Adrienne N. Breitfelder, City Clerk FIRST AMENDMENT TO GRANT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND 84 MAIN, LLC This First Amendment to Grant Agreement, dated for reference purposes the r day of Tue y , 2021, is made and entered into by the City of Dubuque, Iowa, a municipalit (City), established pursuant to the Iowa Code and acting under authorization of Iowa Code Chapter 403, as amended (the Urban Renewal Act), and 84 Main, LLC (Grant Recipient), also referred to as Cutting Edge Development Inc. Whereas, City and Grant Recipient previously entered into a Grant Agreement dated December 2, 2019 (the Grant Agreement); and Whereas, City and Grant Recipient desire to 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 1.2 of the Grant Agreement is hereby amended to read as follows: 1.2 Completion of Minimum Improvements. Grant Recipient shall complete construction of the Minimum Improvements by October 1, 2021. City shall determine in its sole discretion (following an inspection by City's Building Services Department and/or Housing & Community Development Department, and/or Planning Department) when the Minimum Improvements have been completed. In order to be considered completed, the Minimum Improvements must be constructed in accordance with the terms of this Agreement, in compliance with the regulations of the Downtown Rehabilitation Grant Program, and in substantial conformity with Grant Recipient's application to that Program and the Design Letter attached hereto. 2. Section 2.1 of the Grant Agreement is hereby amended to read as follows: 2.1. Operation of Development Property; Housing Vouchers. For and in consideration of the Grant offered under this Agreement, during the operation of the Development Property as a rental residential property, Grant 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. Grant Recipient 052721BAL shall not deny any tenant a lease based on a public assistance source of income. A public assistance source of income means income and support derived from any tax supported federal, state or local funds, including, but not limited to, social security, supplemental security income, temporary assistance for needy families, family investment program, general relief, food stamps, and unemployment compensation, housing choice voucher subsidies and similar rent subsidy programs. This Section 4.2 shall survive the termination of this Agreement. If Grant Recipient, or Grant Recipient's successors or assigns violates the requirements of this Section 2.1 as determined by the City Manager in the City Manager's sole discretion after the termination of this Agreement, Grant Recipient or Grant Recipient's successors or assigns shall not be eligible for any City financial assistance programs. 3. Except as modified herein, the Grant Agreement shall remain in full force and effect. CITY OF DUBUQUE, IOWA 84 MAIN, LLC By: ILi By: Roy . Buol, Mayor ( 9 _ Bria�mers, Managing Member