First Amendment to Development Agreement with Three Amigos, LLC for 898 Jackson StreetCopyrighted
October 18, 2021
City of Dubuque Consent Items # 15.
City Council Meeting
ITEM TITLE: First Amendment to Development Agreement between the Cityof
Dubuque, Iowa and Three Amigos, LLC fora Project at 898 Jackson
Street
SUMMARY: City Manager recommending approval of the First Amendment to
Development Agreement between the City of Dubuque, Iowa and Three
Amigos, LLC for the rehabilitation of property at 898 Jackson Street.
RESOLUTION Approving the FirstAmendmentto Development
Agreement between the City of Dubuque, Iowa and Three Amigos, LLC
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
FIN ik[O]:ILyil21zIII l+]
Description Type
Three Amigos First Amendment to Development City Manager Memo
Agreement-MVM Memo
Staff Memo Staff Memo
Resolution
Resolutions
F i rst Amendment Supporting Documentation
THE CITY OF
Dubuque
DUB TEE
All -America City
Masterpiece on the Mississippi
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: First Amendment to Development Agreement between the City of
Dubuque, Iowa and Three Amigos, LLC for a Project at 898 Jackson
Street
DATE: October 12, 2021
Economic Development Director Jill Connors recommends City Council approval of the
First Amendment to Development Agreement between the City of Dubuque, Iowa and
Three Amigos, LLC for the rehabilitation of property at 898 Jackson Street. The First
Amendment provides a $5,000 Fagade Grant.
An adjoining single -story concrete block building has been demolished, exposing the
east wall of 898 Jackson Street, which was previously an interior wall and does not
match the brick exterior of the building. Three Amigos, LLC plans to install a full brick
veneer utilizing the same common red brick to cover the exposed concrete block
portions of the wall.
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
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Masterpiece on the Mississippi
Dubuque
Economic Development
Department
1300 Main Street
All-AmericaCiity
Dubuque, Iowa 52001-4763
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Office (563) 589-4393
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TTY (563) 690-6678
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http://www.cityofdubuque.org
2007-2012.2013
2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Jill M. Connors, Economic Development Director
SUBJECT: First Amendment to Development Agreement between the City of
Dubuque, Iowa and Three Amigos, LLC for a Project at 898 Jackson
Street
DATE: October 8, 2021
INTRODUCTION
This memorandum presents for City Council review and approval a First Amendment to
a Development Agreement between the City of Dubuque, Iowa and Three Amigos, LLC
for the rehabilitation of property at 898 Jackson Street.
BACKGROUND
On April 15, 2019 the City of Dubuque entered into a Development Agreement with Three
Amigos, LLC, for the rehabilitation of property located at 898 Jackson Street. Upon
completion, Delta 3 Engineering, which is headquartered in Platteville, Wisconsin, began
to occupy the northern portion of the redeveloped building. Delta 3 Engineering, Inc. was
established in 2003 and has continued to develop and expand in the 18 years since its
inception. Delta 3 Engineering specifically chose to expand its business in Dubuque
because it saw the area as a great fit for its business and community relationships to
grow.
In addition to creating space for Delta 3 Engineering, Three Amigos, LLC created two
additional tenant spaces and committed to the creation of at least ten (10) full time
equivalent jobs at the property during the term of the agreement.
The Development Agreement provided for incentives to support the redevelopment of the
property including Downtown Rehabilitation grants for Planning & Design and for
Financial Consultant totaling $25,000, along with 10 years of Tax Increment Finance (TIF)
rebates which are estimated to total $48,000 over the term of the agreement. Additional
terms and conditions are described in the Development Agreement.
DISCUSSION
An adjoining single -story concrete block building has been demolished, exposing the east
wall. The east wall of the building at 898 Jackson Street was previously an interior wall
and does not match the brick exterior of the building. The damaged brick along the base
and at the outside corner of the wall have been replaced with common red brick from the
area. The wall has been cleaned to remove paint. Three Amigos, LLC plans to install a
full brick veneer utilizing the same common red brick to cover the exposed concrete block
portions of the wall. The red brick will be salvaged to match the color and wear of the
existing brick fagade. A steel angle will be installed at the base of the wall to support the
brick veneer. The existing portion of the steel beam will be removed, and the wall will be
patched.
Our office has determined that a matching Fagade Grant in the amount of $5,000 will be
sufficient to properly blend the exposed fagade with the existing rehabilitated fagade. It is
important the City protect its previous investment in the property. Funding the Fagade
Grant would align with the City Council's goal Livable Neighborhoods and Housing: A
Great Place to Live.
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Based on the importance of the City's goal to assist in redeveloping the downtown and
the adjacent Historic Millwork area, I recommend the City Council approve the First
Amendment to Development Agreement with Three Amigos, LLC.
2
Pared by Jill Connors Economic Development 1300 Main St Dubuque IA 52001 (563) 589-4393
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13t" St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 354-21
APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF DUBUQUE, IOWA AND THREE AMIGOS, LLC
WHEREAS, the City of Dubuque and Three Amigos, LLC, a Wisconsin limited
liability company entered into that certain Development Agreement dated April 15, 2019
with respect to the matters specified therein or the property at 898 Jackson Street in the
City of Dubuque, Iowa; and
WHEREAS, the parties desire to modify the Development Agreement as set out in
the First Amendment to Development Agreement attached hereto; and
WHEREAS, the City Council finds that it is in the best interests of the City of
Dubuque to approve the First Amendment to Development Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF DUBUQUE,
IOWA AS FOLLOWS:
Section 1. The First Amendment to Development Agreement is hereby approved.
Passed, approved and adopted this 18th day of October, 2020.
Roy D45uol, Mayor
Attest:
Adrienne N. Breitfelder, City Clerk
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
THREE AMIGOS, LLC
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the "First
Amendment'), dated for reference purposes the It day of October, 2021, is made
and entered by and between the CITY OF DUBUQUE, IOWA, a municipality ("City") and
THREE AMIGOS, LLC, an Iowa limited liability company (`Developer") (City and
Developer are hereinafter sometimes collectively referred to as the "parties").
WHEREAS, City and Developer entered into that certain Development Agreement
dated April 15, 2019 (the "Agreement') with respect to the matters specified therein for
the property at 898 Jackson Street, in the City of Dubuque, Iowa; and
WHEREAS, the parties desire to modify the Agreement as hereinafter provided.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
CONTAINED HEREIN, THE RECEIPT AND SUFFICIENCY OF WHICH ARE
ACKNOWLEDGED BY THE PARTIES, THE PARTIES AGREE AS FOLLOWS:
1. Section 3.4 of the Development Agreement is amended to read as follows:
3.4. Facade Grant. City agrees to provide a matching (1:1) grant not to
exceed Five Thousand Dollars ($5,000) to reimburse Developer for
documented costs that improve the overall appearance of the Property,
provided the Project as completed meets the criteria of the Fagade Grant
Program. The Project must be completed in substantial conformity with the
scope and scale described in Developer's Application Design Letter
attached hereto as Exhibit I. The Project must be completed by August 1,
2022.
2. Section 3.5 of the Development Agreement is amended to read as follows:
3.5. Written requests for payment of grant funds must be submitted to the
Economic Development Department together with all required
documentation.
3. All other terms of the Development Agreement, as amended, shall remain in full
force and effect.
CITY OF DUBUQUE, IOWA THREE AMIGOS, LLC
10082021bal
By: i, e, B
Roy . Buol, Mayor 4a Nies, P.E., Member
ATTEST:
ajo,v�z h 644, —
Adrienne N. Breitfelder, C ty Clerk
EXHIBIT I
DESIGN LETTER
THE CITY OF
DUB E
Masterpiece on the Mississippi
Dubuque Planning Services Department
City Hall - 50 West 131h Street
���1°"' 1 Dubuque, IA 52001-4845
1 I I I (563) 589-4210 phone
(563) 589-4221 fax
2007,2012.2013 (563) 690-6678 TDD
2017*2019 plan ning(cD_cityofdubugue.org
MEMORANDUM
TO: Jill Connors, Economic Development Director
FROM: Chris Happ Olson, Assistant Planner
SUBJECT: Fagade Grant: 898 Jackson Street — rear/east facade
Delta 3 Engineering
DATE: October 8, 2021
Introduction
This memorandum forwards the requested design review for work funded with a Fagade
Grant for the property located at 898 Jackson Street.
Background
The City of Dubuque Architectural Guidelines, the Secretary of the Interior Standards for
Rehabilitation and applicable Technical Preservation Services Preservation Briefs
published by the National Park Service (NPS) apply to this project. The latter collection
can be found at the NPS website. Particularly, these two Briefs area helpful for repairs at
this structure:
• Preservation Brief #2 Repointing Mortar Joints
• Preservation Brief #6 Dangers of Abrasive Cleaning
Discussion
The scope of work is defined as:
• Conservative removal of bituminous coating from various points at the wall,
• Conservative removal of paint, whitewash, debris and soot buildup, and gentle
cleaning,
• Structural and protective repair of masonry with in -kind brick/stone replacement
as necessary,
• Mortar repointing as necessary,
• Removal of non-functional end of I-beam protruding past the exterior wall,
• Installation of a structural angle at lower concrete masonry unit (CMU) wall to
support new brick veneer, and
• New brick veneer consists of installation of a similar sized and patinaed red brick
to blend in with north and south brick facade sections, obscuring all areas of
CMUs.
See attached images supplied by the applicant.
Please note that all work completed must have relevant permitting and permission,
working with the Inspection and Construction Services Division (formerly Building
Department).
Requirements
The project, if done in accordance with the described scope of work, 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.
ENCLOSURES: Applicant's compiled materials
CC: Mike Belmont, Building Official
Jeff Zasada, Inspector
E
Starting Condition - provided by owner
Prior condition of wall when single story building was demolished.
Wall was covered with paint that was cleaned off.
Starting Condition - provided by owner
Damaged brick at base of wall. Brick was removed and replaced with common red brick from the area.
Starting Condition - provided by owner
Limestone base was repaired and stone was repointed.
Starting Condition - provided by owner
Corner of wall was repaired.
In process condition - provided by owner
View of full east wall in current condition.
In process condition - provided by owner
View of concrete block areas of east wall.
Proposed plan for new brick veneer - provided by owner