Brownfield IDED Grt Port of Dbq
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MEMORANDUM
June 15, 2004
TO:
The Honorable Mayor and City Council Members
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FROM:
Michael C. Van Milligen, City Manager
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SUBJECT: Brownfield Project Financial Assistance Agreement
Iowa Department of Economic Development
Award Number 04-BRN-04
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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