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Brownfield IDED Grt Port of Dbq D~~@UE ~~~ MEMORANDUM June 15, 2004 TO: The Honorable Mayor and City Council Members S'- FROM: Michael C. Van Milligen, City Manager . , SUBJECT: Brownfield Project Financial Assistance Agreement Iowa Department of Economic Development Award Number 04-BRN-04 cr' """ >k: c6 ëS 0 "-~ On March 18, 2004, the Iowa Department of Economic Development awarded the City a forgivable loan in the amount of $142,655 to assist in the cleanup of petroleum contamination in the Port of Dubuque. This project is also being assisted by a $200,000 EPA grant. The City has entered into a contract with Terracon to design and engineer the remediation project at a total cost of $545,000. Economic Development Director Bill Baum recommends City Council approval of a State of Iowa Brownfield Project Financial Assistance Agreement for $142,655 for petroleum cleanup in the Port of Dubuque. Repayment of the award will be based on the increase in taxable property valuation for the redevelopment area. The ten-year 0% loan will be entirely forgiven if there is less than 15% increase in taxable value at the project completion date of July 31, 2007. I concur with the recommendation and respectfully request Mayor and City Council approval. fYlJj ~ Ai MiclÍael C. Van Milligen ---- MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager William Baum, Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM June 14, 2004 TO: Michael Van Milligen, City Manager William Baum, Economic Development Director~ FROM: SUBJECT: Brownfield Project Financial Assistance Agreement Iowa Department of Economic Development Award Number 04-BRN-O4 INTRODUCTION This memorandum presents for City Council review and approval a Resolution relating to a State of Iowa Brownfield Redevelopment Fund award for petroleum cleanup in the Port of Dubuque. The Resolution authorizes the execution of a Brownfield Project Financial Assistance Agreement of $142,655 by and between the Iowa Department of Economic Development (IDEO) and the City of Dubuque. BACKGROUND On March 18,2004, IDEO awarded the City a forgivable loan in the amount of $142,655 to assist in the cleanup of petroleum contamination in the Port of Dubuque. This project is also being assisted by a $200,000 EPA grant. The City has entered into a contract with Terracon to design and engineer the remediation project at a total cost of $545,000. DISCUSSION The attached Assistance Agreement and Promissory Note have been sent to the City for approval and signature. Repayment of the award will be based on the increase in taxable property valuation for the Redevelopment Area. The ten year 0% loan will be entirely forgiven if there is less than 15% increase in taxable value at the Project Completion Date of July 31,2007. RECOMMENDATION I recommend that the City Council adopt the attached Resolution authorizing the execution of the Assistance Agreement of $142,655 to support the remediation project. ACTION STEP The Action Step for the City Council is to adopt the attached Resolution. attachments F:IUSERS'PmyhreIWPDOCSIEP A'statecontractmemo.doc IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT BROWNFIELD PROJECT FINANCIAL ASSISTANCE AGREEMENT BETWEEN: IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT 200 East Grand Avenue Des Moines, Iowa 50309 (hereinafter "IDED or Department") AWARD NUMBER: 04-BRN-O4 AND: CITY OF DUBUQUE 50 West 13th Street Dubuque, IA 52001 (hereinafter "Community") TOTAL AWARD AMOUNT $142,655 in the form: $ 0 GRANT $142,655 FORGN ABLE LOAN $ 0 LOAN In consideration ofthe promises and mutual covenants and agreements contained herein, the Parties agree as follows: 1. DEFINITIONS. As used in this Agreement, the following terms shall apply: 1.1 Award Date. "Award Date" Means March 18, 2004. 1.2 Project Completion Date. "Project Completion Date" Means July 31,2007. 1.3 Expiration Date. "Expiration Date" Means March 18, 2014. 1.4 Redevelopment Area. "Redevelopment Area" means the broader geographic area affected by the Project activity(ies) as defined in Attachment A of this Agreement and the application. 1.5 Brownfield Project Area. "Brownfield Project Area" means the site(s) upon which acquisition, remediation or redevelopment occurs as defined in Attachment A. 1.6 Project. "Project" means the acquisition, remediation or redevelopment activities of a qualified brownfield site to be accomplished within the Brownfield Project Area as derIDed in Attachment A. 1.7 Grant. "Grant" means an award made by the Department to the Community for the purpose of assisting the Community with the Project as described within this Agreement for which repayment of funds is not expected by IDED. 1.8 Forgivable Loan. "Forgivable Loan" means an award made by the Department to the Community for which repayment is eliminated in part or entirely if the Community fails to demonstrate a substantial increase in taxable property valuations within the Redevelopment Area. 1.9 Loan. "Loan" means funds advanced by the Department to the Community of which full payment is expected as provided for within this Agreement. Contrnct Number 04.BRN-D4 Page 1 of5 2. PRIOR EXPENSES. No expenditures for Project activities made prior to the Award Date may be reimbursed from the State Brownfield Redevelopment Fund but may be included as part of the Community's required seventy-five percent match. 3. FUNDING. Community will receive funding in accordance with the terms as indicated below: State funds $142.655 in the form of a $142.655 forgivable loan with Community providing a match of $427.965 for total Project costs of $570.620. TOTAL PAYMENT OF STATE FUNDS UNIIER THIS AGREEMENT IS NOT TO EXCEED $142.655. 4. PROMISSORY NOTE. The obligation to repay the Loan or Forgivable loan portion of this Agreement, if any, shall be evidenced by a Promissory Note(s) (Attachment B) executed by the Community, but the liability ofthe Community shall at no time exceed the balance actually disbursed. 5. TERM FOR FORGIVABLE LOAN. If a portion of the Brownfield Redevelopment award is a Forgivable Loan, the Department shall require repayment of Forgivable Loan proceeds as follows: The Forgivable Loan shall have a term often (10) years from the Award Date. There will be no principal or interest payments or accruals for years one through five. Upon the Project Completion Date the Department will determine the amount of the Forgivable Loan to be repaid by the Community. The amount of the Forgivable Loan portion to be repaid to the Department shall be determined upon the following schedule: Percentage Increase in Taxable Property Valuation for the Percentage of Forgivable Loan to Percentage of Loan to be Repaid Redevelopment Area be Fon!Íven < 15% 100% 0% 16% - 20% 87.5% 12.5% 21% - 25% 75% 25% 24% - 30% 62.5% 37.5% 31% - 35% 50% 50% 36% - 40% 37.5% 62.5% 41%-45% 25% 75% 46% - 50% 12.5% 87.5% 50%> 0% 100% Total taxable property valuation for the Redevelopment Area shall be established from the City/County Assessor Office appraisals for all real property within the Redevelopment Area at the Award Date (base taxable property valuation) and at the Project Completion Date. The term of the repayment, if any is due, shall be at zero percent (0%) and for five (5) years from the Project Completion Date, with the Community making ten (10) equal semi -annual payments of the amount due as determined by the Department. Contrnct Number 04.BRN.O4 Page2of5 6. MATCH REOUIREMENTS. The Community shall provide a minimum match of 75 percent of all funds expended for the Project. 7. COST VARIATION. In the event that the total Project cost is less than the amount specified in this Agreement, IDED's participation shall be reduced at the same ratio as IDED funds are to the total Project budget, and any funds disbursed in excess ofthe ratio specified in Attachment A shall be returned immediately to IDED. Upon request ofthe Community, IDED may waive this article upon a good faith showing by the Community if Project costs are less than specified in the Agreement for reasons including but not limited to the following: realized Project efficiencies, saving realized when the Project is completed ahead of schedule. 8. REPORTS. The Community shall submit progress reports, as identified in Attachment C, to IDED. The report will assess progress toward the goals of the Brownfield Project and the activities taking place within 12 months after the contract is in force. Measurable initiatives for the specific Brownfield Project site may include completion of acquisition, remediation, and redevelopment of brownfield property. Additional measures may include increases in taxable property values (commercial, residential, or industrial), number of housing units, jobs, or resulting private investment. The required measurable initiatives and report timelines are described in Attachment A - Project Description. The Community shall forward to the Department upon completion of the Brownfield Project a summary report of cumulative measurement initiatives as described in Attachment A. The Department may perform field visits as deemed necessary. Fiscal reports for the Agreement period shall be submitted to IDED in a format and for time periods specified by IDED. 9. CLAIM\PAYMENT PROCEDURES. Release of funds to reimburse Community for eligible Project expenditures shall be based upon the match requirement ofthe Community described in this Agreement. Funds will be released to reimburse Community for approved expenses as described in Attachment A - Program Description. The Community may request payment prior to actual expenditure. Any release of funds prior to actual expenditure by the Community will be based upon demonstrable need as submitted by the Community for planned and anticipated expenditures through documentation such as purchase order, contractual obligation or other acceptable form of documentation approved by the Department. Funds released to the Community shall be used for approved expenditures within fifteen days of release by the Department. Claims for payment shall be made using the standard IDED claim form or a detailed invoice that contains the same information as the IDED claim form. If the total grant award amount has not been claimed within sixty (60) days of the Project Completion Date, then the IDED shall be under no further obligation for further disbursement. 10. DEFAULT AND NOTICE OF DEFAULT. The occurrence of any one or more of the following events shall constitute cause for IDED to declare Community in default of its obligations under this Agreement: a) non-performance; b) a failure of Community to make substantial and timely progress toward performance of the Agreement; c) a failure of Community's work product and services to conform with any specifications noted herein; d) a breach of any term of this Agreement. The Department shall issue a written notice of default providing therein a thirty (30) day period in which the Business shall have an opportunity to cure, provided that cure is possible and feasible. 11. TERMINATION. This Agreement may be terminated in the following circumstances: a) As a result of Community's default under this Agreement as determined by the Department; b) As a result of the termination or reduction of funding to IDED. REMEDY UPON TERMINATION. In the event oftermination ofthis Agreement or reduction of the Agreement amount, the exclusive, sole and complete remedy of Community shall be payment for allowable costs incurred prior to termination. 12. Contract Number 04.BRN.O4 Page3ofS 23. 24. 25. INTEGRATION. This Agreement contains the entire understanding between the Community and IDED and any representations that may have been made before or after the signing ofthis Agreement, which are not contained herein, are nonbinding, void and of no effect. Neither of the parties have relied on any such prior representation in entering into this Agreement. DOCUMENTS INCORPORATED BY REFERENCE. The following documents are hereby incorporated by reference: a. Attachment A, "Program Description." b. Attachment B, "Promissory Note." c. Attachment C, "Report of Performance Measures." d. Attachment D, "Application for Brownfield Redevelopment Funds." Attachment D will not be attached to this Agreement, but will be kept on file at the Iowa Department of Economic Development. It shall, nevertheless, be considered an incorporated item of this Agreement. ORDER OF PRIORITY.. In the event of a conflict between documents ófthis Agreement, the following order of priority shall govern: a. Articles 1 through 25 herein. b. Attachment A, "Program Description." c. Attachment B, "Promissory Note." d. Attachment D, "Application for Brownfield Redevelopment Funds." e. Attachment C, "Report of Performance Measures." IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, effective as of the Award Date. FOR COMMUNITY: Signature Date FOR IDED: Michael T. Blouin, Director Date Contract Numb" 04-BRN-D4 Page 5 of 5 TafQeted Initiative PROJECT DESCRIPTION Name of Recipient: Economic Development Brownfield Program (ATTACHMENT A) page 1 of 1 City of Dubuque Contract #: 04-BRN-04 The forgivable loan shall be used for site remediation of a petroloeum plume affecting both soil and groundwater in the heart of the Port of Dubuque Mississippi Riverfront Development Area. The city-owned site was formerly the location of Malo 011 Company's above-ground storage tank and formerly part of the Fischer Company Cold Storage Facility. Currently, the property is used as open space and a paved public parking lot. Approximately 3 acres will be available for potential expansion of the newly opened Grand Harbor Resort and Waterpark. PERFORMANCE TARGETS The proposed biosparging remediation is estimated to take 3 years as it is structured in a 3 phase process. Key target dates include: Remediation Design Plan 3/04; Construction/lnstallation Report 7/04; Phase 1 Operation and Maintenance Report 7/05; Phase 2 Operation and Maintenance Report 7/06; Phase 3 - Final Report 7/07. The current assessed value of the property is 296,000 and anticipated assessed value after redevelopment is $915,000. USE OF FUNDS ACTIVITY Site investigation Site Remediation Site Acquisition Rehabiliation Utilities Other Infrastructure Other - IDNR LRP AMOUNT BUDGETED Source A Source B Source C $142,655 $200,000 $219,715 Source D Source E Source F $8,250 -*:;',$;) Source B: EPA Cleanup Grant Source c: City of Dubuque 200,000 Grant 227,965 General Funds NIA NIA N/A N/A Conditions Loan shall be forgivable in the event there is no significant inc",ase in property value in the designated loan period. Grantee shall provide accaptable documentation to IDEO that all source of funds has been received by the Grantee. State award shall dec",ase pro- proportionately in the event all funds are not ",ceived by Grantee Number of units "'developed LEVERAGE $427,965 30 Total State Brownfield Funds $142,655 Total State Brownfield Funds: $142,655 Brownfield funds per Unit $4.755.17 Ratio of State funds to "Other" $0.33 ATTACHMENT B PROMISSORY NOTE City of Dubuque IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT BROWNFIELD REDEVELOPMENT PROGRAM PROMISSORY NOTE Loan Number 04-BRN-O4 Des Moines, Iowa (City and State) Amount: $142.655 April I. 2004 (Date) FOR VALUE RECEIVED, the undersigned (hereafter called the "Maker") promises to pay to the order of the State ofIowa, Department of Economic Development (hereafter called the "Payee"), at its office at 200 East Grand Avenue, Des Moines, Iowa 50309, or upon notice to the Maker, at such other place as may be designated from time to time by the holder, the principal sum of one hundred forty two thousand six hundred ïúty five ($142,655), to be paid as follows: A one hundred forty two thousand six hundred ïúty five ($142,655) forgivable loan at zero (0%) perceut interest to be paid as follows: A ten (10) year, $142,655 forgivable loan. There will be no principal or interest payments or accruals for years one through five. At the Project Completion Date, if the Maker has failed to obtain the terms ofthe forgivable loan, the balance will be forgiven based upon the schedule below: Percentage Increase in Taxable Percentage of Forgivable Loan to Percentage of Loan to be Property Valuation for the be Forgiven Repaid Redevelopment Area < 15% 100% 0% 16%-20% 87.5% 12.5% 21%-25% 75% 25% 24% - 30% 62.5% 37.5% 31% - 35% 50% 50% 36% - 40% 37.5% 62.5% 41% - 45% 25% 75% 46% - 50% 12.5% 87.5% 50%> 0% 100% Total taxable property valuation for the Redevelopment Area shall be established from the City/County Assessor Office appraisals for all real property within the Redevelopment Area at the Award Date (base taxable property valuation) and at the Project Completion Date The term of the repayment, if any is due, shall be at zero percent (0%) and for five (5) years from the Project Completion Date with the Community making ten (10) equal semi-annual payments of the amount due as detennined by the Depar1ment. 1. Payments. All payments under the Note shall be applied in this order: (I) to interest, and (2) to principal. 2. Loan Agreement; Aeeeleration Upon Defanlt. This Note is issued by Maker to evidence au obligation to repay a loan aeeording to the tenns of Loan Agreement 04-BRN-04 of March 18, 2004 between the Payee and Maker and, at the election of the holder without notice to the Maker, shall become immediately due and payable in the event any payment is not made when due or upon the occurrence of any event of default under the tenus of the Loan Agreement. 3. Reduced Amount. In the event the Maker fails to requisition and spend the full face amount of the Note as set out above, then the amount of each installment payment shall be reduced accordingly in equal amounts. 4. Seeurity. Payment of this Note is secured by: Unsecured. 5. Waiver. No delay or omission on the part of the holder in exercising any right under this Note shall operate as a waiver of that right or of any other right under this Note. A waiver on anyone occasion shall not be construed as a bar to or waiver of any right and/or remedy on any future oceasion. 6. Waiver of Protest. Each maker, surety, endorser and guarantor of this Note, expressly waives presentment, protest, demand, notice of dishonor or default, and notice of any kind with respect to this Note. 7. Costs of Collection. The Maker will pay on demand all costs of collection, maintenance of collateral, legal expenses, and attomeys' fees incurred or paid by the holder in collecting and/or euforcing this Note on default. 8. Meaning of Terms. As used in this Note, "holder" shall mean the Payee or other endorsee of this Note, who is in possession of it, or the bearer hereof, if this Note is at the time payable to the bearer. The word "Maker" shall mean each of the undersigned. If this Note is signed by more than one person, it shall be the joint and several liabilities of such persons. 9. Miscellaneous. The captions of paragraphs in this Promissory Note are for the convenience of reference only, shall not define or limit the provisions hereof and shall not have any legal or other significance whatsoever. ADDRESS: City of Dubuque 50 West 13th Street Dubuque, IA 52001 BY: TITLE: DATE: ATTEST: TITLE: DATE: ATTACHMENT C Report on Performance Measures The Community shall submit to the Iowa Department of Economic Development by the date indicated a brief report on the completion of the following: Prior To Release of Funds Initial Report A. Report of Base taxable property valuation within the Redevelopment Area. B. Report on current taxable property values for the Brownfield Area properties. Report 1 A. Report on aggregate property values for area designated as the Redevelopment Area. B. Report on current taxable property values for the Brownfield Area properties. C. Narrative on status of Project activities. D. Project fiscal summary of costs incurred on Project Activities. Report 2 A. Report on aggregate property values for area designated as the Redevelopment Area. B. Report on current taxable property values for the Brownfield Area properties. C. Narrative on status of Project activities. D. Project fiscal summary of costs incurred on Project Activities. Report 3 A. Report on aggregate property values for area designated as the Redevelopment Area. B. Report on current taxable property values for the Brownfield Area properties. C. Narrative on status of Project activities. D. Project fiscal summary of costs incurred on Project Activities. Report 4 A. Report on aggregate property values for area designated as the Redevelopment Area. B. Report on current taxable property values for the Brownfield Area properties. C. Narrative on status of Project activities. D. Project fiscal summary of costs incurred on Project Activities. Report 5, Summary Report A. Report on aggregate property values for area designated as the Redevelopment Area. R Report on current taxable property values for the Brownfield Area properties. C. Narrative on status of Project activities. D. Project fiscal summary of costs incurred on Project Activities. Julv 31. 2005 JulV 31, 2006 Julv 31. 2007 Julv 31. 2008 Julv 31,2009 RESOLUTION NO. 255-04 A RESOLUTION AUTHORIZING THE EXECUTION OF A BROWNFIELD PROJECT FINANCIAL ASSISTANCE AGREEMENT FOR ONE HUNDRED FORTY-TWO THOUSAND SIX HUNDRED FIFTY-FIVE DOLLARS ($142,655) FOR PETROLEUM CLEANUP IN THE PORT OF DUBUQUE. Whereas, the State Brownfield Redevelopment Fund has been created by the Iowa Department of Economic Development to assist in the economic development efforts of local jurisdictions; and Whereas, on March 18, 2004, the City of Dubuque, Iowa was awarded a One Hundred Forty-Two Thousand Six Hundred Fifty-Five dollar ($142,655) forgivable loan from the Iowa Department of Economic Development; and Whereas, the City of Dubuque, Iowa desires to utilize the funding to assist in the cleanup of petroleum contamination in the Port of Dubuque; and Whereas, the Assistance Agreement, Award Number 04-BRN-04, hereto attached and by this reference made a part hereof, is to be executed between the community and the Iowa Department of Economic Development. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Mayor be and he is hereby authorized and directed to endorse, on behalf of the City Council of the City of Dubuque, Iowa, the attached Assistance Agreement and Promissory Note for Award Number 04-BRN-04. Passed, approved and adopted this 21st day of June, 2004. Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider City Clerk F: \U S ER S 'Pmyh re \ WP DOCS IEP A \state co n Ira ctres. doc IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT BROWNFIELD PROJECT FINANCIAL ASSISTANCE AGREEMENT BETWEEN: IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT 200 East Grand Avenue Des Moines, Iowa 50309 (hereinafter "IDED or Department") AWARD NUMBER: 04-BRN-O4 AND: CITY OF DUBUQUE 50 West 13th Street Dubuque, IA 52001 (hereinafter "Community") TOTAL AWARD AMOUNT $142,655 in the form: $ 0 GRANT $142,655 FORGN ABLE LOAN $ 0 LOAN In consideration of the promises and mutual covenants and agreements contained herein, the Parties agree as follows: 1. DEFINITIONS. As used in this Agreement, the following terms shall apply: 1.1 Award Date. "Award Date" Means March 18, 2004. 1.2 Project Completion Date. "Project Completion Date" Means July 31,2007. 1.3 Expiration Date. "Expiration Date" Means March 18, 2014. 1.4 Redevelopment Area. "Redevelopment Area" means the broader geographic area affected by the Project activity(ies) as defined in Attachment A of this Agreement and the application. 1.5 Brownfield Project Area. "Brownfield Project Area" means the site(s) upon which acquisition, remediation or redevelopment occurs as defined in Attachment A. 1.6 Project. "Project" means the acquisition, remediation or redevelopment activities of a qualified brownfield site to be accomplished within the Brownfield Project Area as defined in Attachment A. 1.7 Grant. "Grant" means an award made by the Department to the Community for the purpose of assisting the Community with the Project as described within this Agreement for which repayment of funds is not expected by IDED. 1.8 Forgivable Loan. "Forgivable Loan" means an award made by the Department to the Community for which repayment is eliminated in part or entirely if the Community fails to demonstrate a substantial increase in taxable property valuations within the Redevelopment Area. 1.9 Loan. "Loan" means funds advanced by the Department to the Community of which full payment is expected as provided for within this Agreement. Contract Number 04-BRN-O4 Pagelof5 2. PRIOR EXPENSES. No expenditures for Project activities made prior to the Award Date may be reimbursed from the State Brownfield Redevelopment Fund but may be included as part of the Community's required seventy-five percent match. 3. FUNDING. Community will receive funding in accordance with the terms as indicated below: State funds $142.655 in the form ofa $142.655 forgivable loan with Community providing a match of $427.965 for total Project costs of$570.620. TOTAL PAYMENT OF STATE FUNDS UNDER THIS AGREEMENT IS NOT TO EXCEED $142.655. 4. PROMISSORY NOTE. The obligation to repay the Loan or Forgivable loan portion of this Agreement, if any, shall be evidenced by a Promissory Note(s) (Attachment B) executed by the Community, but the liability ofthe Community shall at no time exceed the balance actually disbursed. 5. TERM FOR FORGIVABLE LOAN. Ifa portion of the Brownfield Redevelopment award is a Forgivable Loan, the Department shall require repayment of Forgivable Loan proceeds as follows: The Forgivable Loan shall have a term often (10) years from the Award Date. There will be no principal or interest payments or accruals for years one through five. Upon the Project Completion Date the Department will determine the amount ofthe Forgivable Loan to be repaid by the Community. The amount of the Forgivable Loan portion to be repaid to the Department shall be determined upon the following schedule: Percentage Increase in Taxable Property Valuation for the Percentage of Forgivable Loan to Percentage of Loan to be Repaid Redevelopment Area be For2Ìven < 15% 100% 0% 16% - 20% 87.5% 12.5% 21% - 25% 75% 25% 24% - 30% 62.5% 37.5% 31% - 35% 50% 50% 36% - 40% 37.5% 62.5% 41% - 45% 25% 75% 46% - 50% 12.5% 87.5% 50%> 0% 100% Total taxable property valuation for the Redevelopment Area shall be established from the City/County Assessor Office appraisals for all real property within the Redevelopment Area at the Award Date (base taxable property valuation) and at the Project Completion Date. The term of the repayment, if any is due, shall be at zero percent (0%) and for five (5) years from the Project Completion Date, with the Community making ten (10) equal semi-annual payments of the amount due as determined by the Department. Contract Number 04-BRN-O4 Page2of5 6. 7. 8. MATCH REOUIREMENTS. The Community shall provide a minimum match of 75 percent of all funds expended for the Project. COST VARIATION. In the event that the total Project cost is less than the amount specified in this Agreement, IDED's participation shall be reduced at the same ratio as IDED funds are to the total Project budget, and any funds disbursed in excess of the ratio specified in Attachment A shall be returned immediately to IDED. Upon request of the Community, IDED may waive this article upon a good faith showing by the Community if Project costs are less than specified in the Agreement for reasons including but not limited to the following: realized Project efficiencies, saving realized when the Project is completed ahead of schedule. REPORTS. The Community shall submit progress reports, as identified in Attachment C, to IDED. The report will assess progress toward the goals of the Brownfield Project and the activities taking place within 12 months after the contract is in force. Measurable initiatives for the specific Brownfield Project site may include completion of acquisition, remediation, and redevelopment of brown field property. Additional measures may include increases in taxable property values (commercial, residential, or industrial), number of housing units, jobs, or resulting private investment. The required measurable initiatives and report timelines are described in Attachment A - Project Description. The Community shall forward to the Department upon completion of the Brownfield Project a summary report of cumulative measurement initiatives as described in Attachment A. The Department may perform field visits as deemed necessary. Fiscal reports for the Agreement period shall be submitted to IDED in a format and for time periods specified by IDED. 9. CLAIM\PAYMENT PROCEDURES. Release of funds to reimburse Community for eligible Project expenditures shall be based upon the match requirement of the Community described in this Agreement. Funds will be released to reimburse Community for approved expenses as described in Attachment A - Program Description. The Community may request payment prior to actual expenditure. Any release of funds prior to actual expenditure by the Community will be based upon demonstrable need as submitted by the Community for planned and anticipated expenditures through documentation such as purchase order, contractual obligation or other acceptable form of documentation approved by the Department. Funds released to the Community shall be used for approved expenditures within fifteen days ofrelease by the Department. Claims for payment shall be made using the standard IDED claim form or a detailed invoice that contains the same information as the IDED claim form. If the total grant award amount has not been claimed within sixty (60) days of the Project Completion Date, then the IDED shall be under no further obligation for further disbursement. 10. DEFAULT AND NOTICE OF DEFAULT. The occurrence of any one or more of the following events shall constitute cause for IDED to declare Community in default of its obligations under this Agreement: a) non-performance; b) a failure of Community to make substantial and timely progress toward performance of the Agreement; c) a failure of Community's work product and services to conform with any specifications noted herein; d) a breach of any term of this Agreement. The Department shall issue a written notice of default providing therein a thirty (30) day period in which the Business shall have an opportunity to cure, provided that cure is possible and feasible. 11. TERMINATION. This Agreement maybe terminated in the following circumstances: a) As a result of Community's default under this Agreement as determined by the Department; b) As a result of the termination or reduction of funding to IDED. REMEDY UPON TERMINATION. In the event oftermination of this Agreement or reduction of the Agreement amount, the exclusive, sole and complete remedy of Community shall be payment for allowable costs incurred prior to termination. 12. Contract Number 04-BRN-O4 Page 3 of 5 13. 14. 15. 16. 17. NONASSIGNMENT. This Agreement may not be assigned without prior IDED written consent. WRITING REQUIRED. No change, modification, or termination of any of the terms, provisions or conditions of this Agreement shall be effective unless made in writing and signed by both parties. COMPLIANCE WITH LAWS AND REGULATIONS: DECLARATION OF COMMUNITY. Community shall comply with all applicable state and federal laws, rules, ordinances, regulations and orders. Community declares that it has complied with all federal, state, and local laws regarding business permits and licenses that may be required to carry out the work to be performed under this Agreement. COMPLIANCE WITH EEO/ AA PROVISIONS. Community shall comply with the provisions of federal, state and local laws, rules and executive orders to insure that no employee or applicant for employment is discriminated against because of race, religion, color, age, sex, national origin, or disability. A breach of this provision shall be considered a material breach of this Agreement. INDEMNIFICATION AGAINST LOSS OR DAMAGE. Community shall jointly and severally defend, indemnifY and hold IDED, its successors and assigns, harmless from and against any liability, loss, damage or expense, including reasonable counsel fees, which IDED may incur or sustain by reason of (a) the failure of Community to fully perform and comply with the terms and obligations of this Agreement; (b) Community's performance or attempted performance of this Agreement; (c) Community's activities with sub-grantees and thirdparties. 18. ACCESS TO RECORDS. Community shall permit IDED or its agents to access and examine, audit, excerpt and transcribe any directly pertinent books, documents, reports, papers and records of Community relating to orders, invoices, or payments or any other documentation or materials pertaining to this Agreement. 19. RECORDS RETENTION. All records of Community relating to this Agreement shall be retained for a period of three (3) years following the date of final payment or completion of any Project activities, whichever is later. 20. UNALLOWABLE COSTS. IfIDED determines at any time, whether through monitoring, audit, closeout procedures or by other means that the Community has received Brownfield Redevelopment Program funds or requested reimbursement for costs which are unallowable under the terms of this Agreement, the Community will be notified of the questioned costs and given an opportunity to justifY questioned costs prior to IDED's final determination of the disallowance of costs. If it is IDED's final determination that costs previously paid by IDED are unallowable under the terms ofthe Agreement, the expenditures will be disallowed and the Community shall inunediately repay to IDED any and all disallowed costs. 21. SURVIVAL OF AGREEMENT. If any portion of this Agreement is held to be invalid or unenforceable, the remainder shall be valid and enforceable. 22. GOVERNING LAW. This Agreement shall be interpreted in accordance with the law of the State of Iowa, and any action relating to the Agreement shall only be commenced in the Iowa District Court for Polk County or the United States District Court for the Southern District of Iowa. Contract Number 04-BRN-O4 Page4of5 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, effective as of the Award Date. ~.z. ~. FOR COMMUNITY: S' ature FOR IDED: Michael T. Blouin, Director 23. 24. 25. INTEGRATION. This Agreement contains the entire understanding between the Community and IDED and any representations that may have been made before or after the signing of this Agreement, which are not contained herein, are nonbinding, void and of no effect. Neither ofthe parties have relied on any such prior representation in entering into this Agreement. DOCUMENTS INCORPORATED BY REFERENCE. The following documents are hereby incorporated by reference: a. Attachment A, "Program Description." b. Attachment B, "Promissory Note." c. Attachment C, "Report of Performance Measures." d. Attachment D, "Application for Brownfield Redevelopment Funds." Attachment D will not be attached to this Agreement, but will be kept on file at the Iowa Department of Economic Development. It shall, nevertheless, be considered an incorporated item of this Agreement. ORDER OF PRIORITY.. In the event of a conflict between documents òfthis Agreement, the following order of priority shall govern: a. Articles 1 through 25 herein. b. Attachment A, "Program Description." c. Attachment B, "Promissory Note." d. Attachment D, "Application for Brownfield Redevelopment Funds." e. Attachment C, "Report of Performance Measures." 4/7//;r/; ¿7Zl¿;J ~ ?fuîe Date Contract Number 04-BRN-O4 Page50fS Economic Development Brownfield Program (ATTACHMENT AI page 1 of 1 Name of Recipient: City of Dubuque 04cBRN-04 Contract #: PROJECT DESCRIPTION Tar~eted Initiative The forgivable loan shall be used for site remediation of a petroioeum plume affecting both soil and groundwater in the heart of the Port of Dubuque Mississippi Riverfront Development Area. The city-owned site was formerly the location of Molo Oil Company's above-ground storage tank and formerly part of the Fischer Company Cold Storage Facility. Currently, the property is used as open space and a paved public parking lot. Approxlmat€>ly 3 acres will be available for potential expansion of the newly opened Grand Harbor Resort and Waterparl<. PERFORMANCE TARGETS The proposed biosparging remediation is estimat€>d to take 3 years as it is structured in a 3 phase process. Key target dates include: Remediation Design Plan 3/04; Constructlon/lnstallalion Report 7/04; Phase 1 Operation and Maintenance Report 7/05; Phase 2 Operation and Maintenance Report 7/06; Phase 3 - Final Report 7/07. The current assessed value of the property is 296,000 and anticipated assessed value after redevelopment is $915,000. AMOUNT BUDGETED USE OF FUNDS ACTIVITY Site investigation Site Remediation Site Acquisition Rehabiliation Utilities Other Infrastructure Other - IDNR LRP Source A Source B Source C Source 0 $142,655 $200,000 $219,715 $8,250 Source of Funds Source A: State Brownfield Funds Tenm 5 year Source B: EPA Cleanup Grant Source C: City of Dubuque 200,000 Grant 227.965 General Funds N/A N/A N/A N/A Number of units radeveloped '!?Z:~1!;;~)\ LÐlÊAAGE PEífi'ORMANéE TARGETS Total of "Other' Funds in Project 30 Total State Brownfield Funds $142.655 Total State Brownfield Funds: Brownfield funds per Unit $4,755.17 Ratio of State funds to .Othec" Source E Source F }$<J? . .~5¡$~, Condülons Loan shall be forgivable in the event there is no significant Increase In property value in the designated loan period. Grantee shall provide acceptable documentation to IDED that all source of funds has been raceived $427.965 $142,655 $0.33 ATTACHMENTB PROMISSORY NOTE City (¡fDubuque IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT BROWNFIELD REDEVELOPMENT PROGRAM PROMISSORY NOTE Loan Number 04-BRN-O4 Des Moines, Iowa (City and State) Amount: $142,655 April!. 2004 (Date) FOR VALUE RECEIVED, the undersigned (hereafter called the "Maker") promises to pay to the order of the State ofIowa, Department of Economic Development (hereafter called the "Payee"), at its office at 200 East Grand Avenue, Des Moines, Iowa 50309, or upon notice to the Maker, at such other place as may be designated from time to time by the holder, the principal sum of one hundred forty two thousand six hundred fifty five ($142,655), to be paid as follows: A one hnndred forty two thonsand six hundred iIfty five ($142,655) forgivable loan at zero (0%) percent interest to be paid as follows: A ten (10) year, $142,655 forgivable loan. There will be no principal or interest payments or accruals for years one through five. At the Project Completion Date, if the Maker has failed to obtain the tenus of the forgivable loan, the balance will be forgiven based upon the schedule below: Percentage Increase in Taxable Percentage of Forgivable Loan to Percentage of Loan to be Property Valuation for the be Forgiven Repaid Redevelonment Area < 15% 100%. 0% 16%-20% 87.5% 12.5% 21% - 25% 75% 25% 24% - 30% 62.5% 37.5% 31%-35% 50% 50% 36% - 40% 37.5% 62.5% 41%-45% 25% 75% 46% - 50% 12.5% 87.5% 50%> 0% 100% Total taxable property valuation for the Redevelopment Area shall be established from the City/County Assessor Office appraisals for all real property within the Redevelopment Area at the Award Date (base taxable property valuation) and at the Project Completion Date The tenn of the repayment, if any is due, shall be at zero percent (0%) and for five (5) years from the Project Completion Date with the Community making ten (10) equal semi-annual payments of the amount due as detennined by the Department. 1. Payments. All payments under the Note shall be applied in this order: (I) to interest, and (2) to principal. 2. Loan Agreement; Acceleration Upon Default. This Note is issued by Maker to evidence an obligation to repay a loan according to the tenus of Loan Agreement 04-BRN-04 of March 18, 2004 between the Payee and Maker and, at the election of the holder without notice to the Maker, shall become immediately due and payable in the event any payment is not made when due or upon the occurrence of any event of default under the tenus of the Loan Agreement. 3. Reduced Amount. In the event the Maker fails to requisition and spend the full face amount of the Note as set out above, then the amount of each installment payment shall be reduced accordingly in equal amounts. 4. Security. Payment of this Note is secured by: Unsecured. 5. Waiver. No delay or omission on the part of the holder in exercising any right under this Note shall operate as a waiver of that right or of any other right under this Note. A waiver on anyone occasion shall not be construed as a bar to or waiver of any right and/or remedy on any future occasion. 6. Waiver of Protest. Each maker, surety, endorser and guarantor of this Note, expressly waives presentment, protest, demand, notice of dishonor or default, and notice of any kind with respect to this Note. 7. Costs of Collection. The Maker will pay on demand all costs of collection, maintenance of collateral, legal expenses, and attorneys' fees incurred or paid by the holder in collecting and/or enforcing this Note on default. 8. Meaning of Terms. As used in this Note, "holder" shall mean the Payee or other endorsee of this Note, who is in possession of it, or the bearer hereof, if this Note is at the time payable to. the bearer. The word "Maker" shall mean each of the undersigned. If this Note is signed by more than one person, it shall be the joint and several liabilities of such persons. 9. Miscellaneous. The captions of paragraphs in this Promissory Note are for the convenience of reference only, shall not define or limit the provisions hereof and shall not have any legal or other significance whatsoever. ADDRESS: City of Dubuque 50 West 13th Street Dubuque, IA 52001 ~~~ DATE: June 21, 2004 A TTESV~¿;¡Z~ TITLE: City C1 erk DATE: June 21, 2004 ATTACHMENT C Report on Performance Measures The Community shall submit to the Iowa Department of Economic Development by the date indicated a brief report on the completion of the following: Prior To Release of Funds Initial Renort A. Report of Base taxable property valuation within the Redevelopment Area. B. Report on current taxable property values for the Brownfield Area properties. Renort 1 A. Report on aggregate property values for area designated as the Redevelopment Area. B. Report on current taxable property values for the Brownfield Area properties. C. Narrative on status of Project activities. D. Project fiscal summary of costs incurred on Project Activities. Renort 2 A. Report on aggregate property values for area dèsignated as the Redevelopment Area. B. Report on current taxable property values for the Brownfield Area properties. C. Narrative on status of Project activities. D. Project fiscal sununary of costs incurred on Project Activities. Renort 3 A. Report on aggregate property values for area designated as the Redevelopment Area. B. Report on current taxable property values for the Brownfield Area properties. C. Narrative on status of Project activities. D. Project fiscal sununary of costs incurred on Project Activities. Renort 4 A. Report on aggregate property values for area designated as the Redevelopment Area. B. Report on current taxable property values for the Brownfield Area properties. C. Narrative on status of Project activities. D. Project fiscal sununary of costs incurred on Project Activities. Renort 5, Summary Renort A. Report on aggregate property values for area designated as the Redevelopment Area. B. Report on current taxable property values for the Brownfield Area properties. C. Narrative on status of Project activities. D. Project fiscal sununary of costs incurred on Project Activities. July 31, 2005 JulV 31, 2006 JulV 31. 2007 July 31, 2008 Julv 31, 2009