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Rose of Dubuque LP Development Agreement_HearingMasterpiece on the Mississippi Dubuque Au- AmeiicaCity 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Approval of a Development Agreement with The Rose of Dubuque, L.P. DATE: September 13, 2011 Economic Development Director Dave Heiar recommends City Council approval of a Development Agreement with The Rose of Dubuque, L.P. for a 70 -unit affordable assisted living facility on Lake Ridge Drive. City staff has worked with Rose Development, controlled by Greg McClenahan, to build a $9.3 million 70 -unit `affordable assisted living facility' on Lake Ridge Drive. This would be the sixth Rose development built in Iowa since 2005. The Rose developments have all been assisted by the Iowa Finance Authority through the Low - Income Housing Tax Credit Program. The recent award of these tax credits reduces the need for conventional mortgage financing and lowers development costs, allowing lower rents. Residents in these projects must all qualify by income, at 60% or Tess of area median income. Many qualify for Section 8 housing vouchers and Medicaid services. Rents will be in a range of $450 -$550. The services the resident receives are provided by a contracted licensed health care provider, such as the VNA. The costs for those services are paid by Medicaid HCBS waiver programs. With this package of subsidies, the low- income resident can afford the full spectrum of housing and supported services that would otherwise approach $3,000 per month. On August 1, 2011, the City Council approved the establishment of an Urban Renewal District for this area. The key elements of the Development Agreement include: 1) Rose Development must develop property located on Lake Ridge Drive at a cost of approximately $9,300,000 and be substantially completed by December 31, 2012. 2) Rose Development will receive a 10 year TIF not to exceed the amount of taxes allowed to be distributed through TIF based on the assessed valuation or $19,355 per year, whichever is less. 3) In return for committing to the annual TIF payment, the City will receive a commitment that the units in the project are compliant with the HUD Fair Market Rent for the 10 years. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Vale Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director 2 Masterpiece on the Mississippi Dubuque kitirg AN- America city , 2007 TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director 1,j '4 ti SUBJECT: Approval of a Development Agreement with The Ro of of Dubuque, L.P. DATE: September 12, 2011 INTRODUCTION On September 6, the City Council set a public hearing for September 19th on a proposed Development Agreement with The Rose of Dubuque, L.P. This memorandum presents for City Council consideration a Resolution approving a Development Agreement with The Rose of Dubuque, L.P. on property located on Lake Ridge Drive. The attached Resolution approves the development agreement. BACKGROUND City staff has worked with Rose Development, controlled by Greg McClenahan, to build a $9.3 million 70 -unit 'affordable assisted living facility' on Lake Ridge Drive. This would be the sixth Rose development built in Iowa since 2005. The Rose developments have all been assisted by the Iowa Finance Authority through the Low - Income Housing Tax Credit Program. The recent award of these tax credits reduces the need for conventional mortgage financing and lowers development costs, allowing lower rents. Residents in these projects must all qualify by income, at 60% or less of area median income. Many qualify for Section 8 housing vouchers and Medicaid services. Rents will be in a range of $450 -$550. The services the resident receives are provided by a contracted licensed health care provider, such as the VNA. The costs for those services are paid by Medicaid HCBS waiver programs. With this package of subsidies, the low- income resident can afford the full spectrum of housing and supported services that would otherwise approach $3000 per month. On August 1, 2011, the City Council approved the establishment of an Urban Renewal District for this area. DISCUSSION The Development Agreement provides for tax increment financing to encourage development of the property. The Development Agreement requires the development of property located on Lake Ridge Drive into a seventy (70) unit affordable assisted living facility. The key elements of the Development Agreement include the following: 1) Rose Development must develop property located on Lake Ridge Drive at a cost of approximately $9,300,000 and be substantially completed by December 31, 2012. 2) Rose Development will receive a 10 year TIF not to exceed the amount of taxes allowed to be distributed through TIF based on the assessed valuation or $19,355 per year, whichever is less. 3) In return for committing to the annual TIF payment, the City will receive a commitment that the units in the project are compliant with the HUD Fair Market Rent for the 10 years. Additional terms and conditions are included within the attached Development Agreement. RECOMMENDATION Following the public hearing, I recommend that the City Council approve the attached resolution approving a Development Agreement with The Rose of Dubuque, L.P. which includes urban renewal tax increment obligations for the purpose of developing property located on Lake Ridge Drive into a seventy (70) unit affordable assisted living facility as detailed in the attached Development Agreement. ACTION STEP The action step for the City Council is to adopt the attached Resolution. F: \USERS\Econ Dev \Rose of Dubuque \Development Agreement\20110912 The Rose Memo Public Hearing Approve DA.docx 2 , _. , ..: ..i. ,....4., . I v u art: { CC Q . et; a r �/ CC �; (c)\j''4' :4 - - ` ., ` - '�` Li ,., iN, o, 0 • „,,,,,,,:,,,,_,„;...,;,-14° ' -, . ,I, ce, ,... „.::X::;-;:;::,,7::::,:L;.,.z.,„..:i.,_,.7.,,,..,...::..,-::;,,p.:',,,,,,,.t:.',.:.'"v',„, J.:,;,\ ,c,r,e,")\...,. } F . t ,�.. .; ii, 1, i ! ; t.,,, .. ii,:+., I 4 l'iliN . 1 ti. Rose of Dubuque Project Location .. \� r updated 2011 -02 -24 RESOLUTION NO. 302 -11 FIXING THE DATE FOR A PUBLIC HEAR- ING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA ON THE PROPOSED ISSUANCE OF URBAN RENEWAL TAX INCREMENT REV- ENUE OBLIGATIONS AND THE EXECUTION OF A DEVELOPMENT AGREEMENT RELAT- ING THERETO WITH THE ROSE OF DUBUQUE, L.P., AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF Whereas, City and The Rose of Dubuque, L.P. have entered into a Development Agree- ment, subject to the approval of the City Council, a copy of which is now on file at the Office of the City Clerk, City Hall, 13th and Central Avenue, Dubuque, Iowa; and Whereas, the City Council has tentatively determined that it would be in the best interests of the City to approve the Devel- opment Agreement, with The Rose of Dubuque, L.P.; and Whereas, it is deemed necessary and advis- able that City should authorize Urban Renewal Tax Increment Revenue obligations, as provided by Chapter 403 of the Code of Iowa, and to enter into the Development Agreement relating thereto for the purpose of carrying out an Urban Renewal Plan as hereinafter described; and Whereas, before said obligations may be approved, Chapter 403 of the Code of Iowa requires that the City Clerk publish a notice of the proposal and of the time and place of the meeting at which the City Council proposes to take action thereon and at which meeting the City Council shall receive oral and /or written objections from any resident or property owner of said City to such proposed action. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Clerk is hereby authorized and direct- ed to cause this Resolution and a notice to be published as prescribed by Iowa Code Section 403.9 of a public hearing on the City's intent authorize Urban Renewal Tax Increment Revenue obligations, to be held on the 19th day of September, 2011, at 6:30 o'clock p.m. in the City Council Chambers at the Historic Federal Building, 350 W. 6th St., Dubuque, Iowa. Section 2. The City Council will meet at said time and place for the purpose of taking action on the matter of authorizing Urban Renewal Tax Increment Revenue obligations and the execution of the Development Agreement relating thereto with The Rose of Dubuque, L.P., the proceeds of which obligations will be used to carry out certain of the special financing activities described in the Urban Renewal Plan for the Lake Ridge Urban Renewal District, consisting of the funding of economic developments grants to The Rose of Dubuque, L.P. pursuant to the Development Agreement under the terms and conditions of said Urban Renewal Plan. It is expected that the aggregate amount of the Tax Increment Revenue obligations is approx- imately $193,550. Section 3. The Clerk is hereby directed to cause at least one publication to be made of a notice of said meeting, in a news- paper, printed wholly in the English lang- uage, published at least once weekly, and having general circu- lation in said City, said publication to be not less than four days nor more than twenty days before the date of said meeting on the issuance of said obligations. Section 4. That the notice of the proposed action to issue said obligations shall be in substantially the form attached hereto. Passed, approved and adopted this 6th day of September, 2011. Roy D. Buol, Mayor Attest: Kevin S. Firnstahl, Acting City Clerk NOTICE OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED AUTHORIZATION OF URBAN RENEWAL TAX INCREMENT REVENUE OBLIGATIONS AND THE EXECUTION OF A DEVELOPMENT AGREEMENT RELATING THERETO WITH THE ROSE OF DUBUQUE, LP. PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will hold a public hearing on the 19th day of September, 2011, at 6:30 p.m. in the City Council Chambers at the Historic Federal Building, 350 W. 6th St., Dubuque, Iowa, at which meeting the City Council proposes to take action for the authorization of Urban Renewal Tax Increment Revenue obligations and the execution of a Development Agree- ment relating thereto with The Rose of Dubuque, L.P., in order to carry out certain of the special financing activities in the Urban Renewal Plan for the Lake Ridge Urban Renewal District, con- sisting of the funding of economic develop- ment grants to The Rose of Dubuque, L.P., pursuant to a Devel- opment Agreement entered into with The Rose of Dubuque, L.P. under the terms and conditions of said Urban Renewal Plan. It is expected that the aggregate amount of the Tax Increment Revenue obligations is approximately $193,550. At the meeting, the City Council will receive oral and written objections from any resident or property owner of said City to the above action. After all objec- tions have been received and con- sidered, the City Council may at this meeting or at any adjournment thereof, the approval of the Development Agree- ment, and authori- zation of such Tax Increment Revenue obligations or will abandon the proposal. By order of the City Council said hearing and appeals there from shall be held in accordance with and governed by the provisions of Section 403.9 of the Code of Iowa. This notice is given by order of the City Council of the City of Dubuque, Iowa, as provided by Chapter 403 of the Code of Iowa. Dated this 9th day of September, 2011. Kevin S. Firnstahl Acting City Clerk of Dubuque, Iowa It 9/9 Access Dubuque STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: September 09, 2011, and for which the charge is $76.45. Subscribed to before me, a tary Public in and for Dubuque County, Iowa, this day 20 // Notary Public in and for Dubuque County, Iowa. MARY K. WESTERMEI Commission Number 154 % -1.41164440 RESOLUTION NO. 323 -11 RESOLUTION APPROVING A DEVELOPMENT AGREEMENT WITH THE ROSE OF DUBUQUE, L.P. FOR PROPERTY LOCATED ON LAKE RIDGE DRIVE Whereas, the City of Dubuque, Iowa, has undertaken an Urban Renewal project for the purpose of advancing the community's ongoing economic development efforts in the Lake Ridge Urban Renewal District; and Whereas, the City Council, by Resolution No. 302 -11, dated September 6, 2011 declared its intent to enter into a Development Agreement with The Rose of Dubuque, L.P. for property located on Lake Ridge Drive; and Whereas, pursuant to published notice, a public hearing was held on the proposed disposition on September 19, 2011 at 6:30 p.m. in the Historic Federal Building, 350 W. 6th Street, Dubuque, Iowa; and Whereas, the City of Dubuque, Iowa is encouraging the use of urban renewal tax obligations for the purpose of developing property located on Lake Ridge Drive into a seventy (70) unit affordable assisted living facility; and Whereas, it is the determination of this Council that approval of the Development Agreement for the purpose of developing property located on Lake Ridge Drive by The Rose of Dubuque, L.P. according to the terms and conditions set out in the Development Agreement is in the public interest of the City of Dubuque. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Development Agreement with The Rose of Dubuque, L.P. is hereby accepted and approved. Section 2. That the Mayor is hereby authorized to execute, on behalf of the City Council of the City of Dubuque, Iowa, the attached Development Agreement with The Rose of Dubuque, L.P. Section 3. That the City Manager is authorized to take such actions as are necessary to comply with the terms of the Development Agreement as herein approved. Passed, approved and adopted this 19th day of September, 2011. Attest Kev S. Firn ahl, City Clerk Lynn V. Sutton, Mayor Pro -Tem F: \USERS \Econ Dev \Rose of Dubuque \Development Agreement\20110913_Res Approve DA Rose of Dubuque.docx Y 11111111 IER 11111 u AA Doc ID' 010486550001 Type GEN Kind: AGREEMENT Recorded: 05/14/2020 at 04:24:35 PM Fee Amt: $7.00 Page 1 of 1 Dubuque County Iowa John Murphy Recorder Fi1e2020-00006255 Prepared by: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 Return to: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 MEMORANDUM OF DEVELOPMENT AGREEMENT A Development Agreement by and among the City of Dubuque, Iowa, an Iowa municipal corporation, and The Rose of Dubuque, LP, was made regarding the following described premises: Lot 1 of Cedar Lake Plaza 4th Addition which is a portion of Lot 2 of Lot 2 of Cedar Lake Plaza 3rd Addition in the City of Dubuque The Development Agreement is dated for reference purposes the 26th day of September, 2011, and contains covenants, conditions, and restrictions concerning the sale and use of said premises. This Memorandum of Development Agreement is recorded for the purpose of constructive notice. In the event of any conflict between the provisions of this Memorandum and the Development Agreement itself, executed by the parties, the terms and provisions of the Development Agreement shall prevail. A complete counterpart of the Development Agreement, together with any amendments thereto, is in the possession of the City of Dubuque and may be examined at its offices as above provided. Dated this/? 1a r of May, 2020. CITY OF DUB By: E, IOWA 1 Barry A Lindahl, Senior Counsel STATE OF IOWA : ss: DUBUQUE COUNTY On this Jjday of May, 2020, before me, a Notary Public in and for the State of Iowa, in and for said county, personally appeared Barry A. Lindahl, to me personally known, who being by me duly sworn did say that he is the Senior Counsel of the City of Dubuque, that said instrument was signed on behalf of City of Dub que and the Senior Counsel acknowledged said instrument to be his free act and deed on behalf of the ity of Dubuque. 4./1 L AAA Notary Public, ' . e of Iowa TRACEY L. STECKLEN Commission Number 716016 My Comm Exp. /-1i' .1 Prk--C74 DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF DUBUQUE, IOWA AND THE ROSE OF DUBUQUE, L. P. THIS DEVELOPMENT AGREEMENT (Agreement) dated for reference purposes the day of 14- r , 2011 is made and entered into by and between the City of Dubuque, Iowa (City), and The Rose of Dubuque, L.P. (Developer). WHEREAS, Developer intends to purchase the following described real estate (the Property): Lot 1 of Cedar Lake Plaza 4th Addition which is a portion of Lot 2 of Lot 2 of Cedar Lake Plaza 3rd Addition in the City of Dubuque; and WHEREAS, the Property is located in the Lake Ridge Urban Renewal District (the District) which has been so designated by City Council Resolution 247 -11 as an Economic Development area (the Project Area) defined by Iowa Code Chapter 403 (the Urban Renewal Law); and WHEREAS, Developer has undertaken the construction of an affordable senior housing project located on the Property and will be operating the same during the term of this Agreement; and WHEREAS, Developer will make an additional capital investment in landscaping, equipment, furniture and fixtures on the Property (Project); and WHEREAS, pursuant to Iowa Code Section 403.6(1), and in conformance with the Urban Renewal Plan for the Project Area adopted on August 1, 2011, City has the authority to enter into contracts and agreements to implement the Urban Renewal Plan; and WHEREAS, the Dubuque City Council believes it is in the best interests of the City to encourage Developer in the development of the Property by providing certain incentives as set forth herein. NOW, THEREFORE, the parties to this Development Agreement, in consideration of the promises, covenants and agreements made by each other, do hereby agree as follows: 082611djh080911ba1 SECTION 1. REPRESENTATIONS AND WARRANTIES 1.1 Representations and Warranties of City. In order to induce Developer to enter into this Agreement, City hereby represents and warrants to Developer that to the best of City's knowledge: (1) City has duly obtained all necessary approvals and consents for its execution, delivery and performance of this Agreement and that it has full power and authority to execute, deliver and perform its obligations under this Agreement. City's attorney shall issue a legal opinion to Developer at time of closing confirming the representation contained herein, in the form attached hereto as Exhibit A. (2) City shall exercise its best efforts to cooperate with Developer in the development process. (3) City shall exercise its best efforts to resolve any disputes arising during the development process in a reasonable and prompt fashion. (4) The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a violation or breach of, the terms, conditions or provisions of the charter of City, any evidence of indebtedness, agreement or instrument of whatever nature to which City is now a party or by which it or its property is bound, or constitute a default under any of the foregoing. (5) There are no actions, suits or proceedings pending or threatened against or affecting City in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the financial position or operations of City or which affects the validity of the Agreement or City's ability to perform its obligations under this Agreement. (6) No ordinance or hearing is now before any local governmental body that either contemplates or authorizes any public improvements or special tax levies, the cost of which may be assessed against the Property. To the best of City's knowledge, there are no plans or efforts by any government agency to widen, modify, or re -align any street or highway providing access to the Property and there are no pending or intended public improvements or special assessments affecting the Property which will result in any charge or lien be levied or assessed against the Property. (7) The representations and warranties contained in this article shall be correct in all respects on and as of the Closing Date with the same force and effect as if such representations and warranties had been made on and as of the Closing Date. 2 1.2 Representations and Warranties of Developer. The Developer makes the following representations and warranties: (1) Developer is a limited partnership duly organized and validly existing under the laws of the State of Iowa, and has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as presently proposed to be conducted, and to enter into and perform its obligations under the Agreement. (2) This Agreement has been duly authorized, executed and delivered by Developer and, assuming due authorization, execution and delivery by the City, is in full force and effect and is a valid and legally binding instrument of Developer enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights generally. Developer's counsel shall issue a legal opinion to the City, at time of closing, confirming the representations contained herein, in the form attached hereto as Exhibit B. (3) The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a violation or breach of, the terms, conditions or provisions of the articles of incorporation or the bylaws of Developer or any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which Developer is now a party or by which it or its property is bound, or constitute a default under any of the foregoing. (4) There are no actions, suits or proceedings pending or threatened against or affecting Developer in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the business, financial position or result of operations of Developer or which affects the validity of the Agreement or Developer's ability to perform its obligations under this Agreement. (5) Developer will perform its obligations under this Agreement in accordance with the material terms of this Agreement, the Urban Renewal Plan and all local, State and federal laws and regulations. (6) Developer will use its best efforts to obtain, or cause to be obtained, in a timely manner, all material requirements of all applicable local, state, and federal laws and regulations which must be obtained or met. (7) Developer has firm commitments for permanent financing for the Project in an amount sufficient, together with equity commitments, to successfully complete the requirements of this Agreement and shall provide evidence thereof to City prior to the Closing Date. 3 1.3 Closing. The closing shall take place on such date as the parties shall agree in writing but in no event shall the Closing Date be later than the 31St day of October, 2011. Consummation of the closing shall be deemed an agreement of the parties to this , Agreement that the conditions of closing shall have been satisfied or waived. 1.4 Conditions to Closinq. The closing of the transaction contemplated by this Agreement and all the obligations of Developer under this Agreement are subject to fulfillment, on or before the Closing Date, of the following conditions: (1) The representations and warranties made by City in Section 1.1 shall be correct as of the Closing Date with the same force and effect as if such representations were made at such time. At the closing, City shall deliver a certificate to that effect in the form of Exhibit C. (2) Developer shall have the right to terminate this Agreement at any time prior to the consummation of the closing on the Closing Date if Developer determines in its sole discretion that conditions necessary for the successful completion of the Project contemplated herein have not been satisfied in Developer's sole discretion. Upon the giving of notice of termination by Developer to City, this Agreement shall be deemed null and void. (3) Developer and City shall be in material compliance with all the terms and provisions of this Agreement. (4) Developer shall have furnished City with evidence, in a form satisfactory to City (such as a letter of commitment from a bank or other lending institution), that Developer has firm financial commitments in an amount sufficient, together with equity commitments, to complete the Minimum Improvements (as defined herein) in conformance with the Construction Plans (as defined herein), or City shall have received such other evidence of Developer's financial ability as the reasonable judgment of the City requires. (5) Developer's counsel shall issue a legal opinion to the City confirming the representations contained herein in the form attached hereto as Exhibit B. 1.5 City's Obligations at Closing. At or prior to the Closing Date, City shall deliver to Developer such other documents as may be required by this Agreement, all in a form satisfactory to Developer. SECTION 2. DEVELOPMENT ACTIVITIES 2.1 Required Minimum Improvements. Developer will make a capital investment of not less than Nine Million Three Hundred Thousand Dollars ($9,300,000.00) to acquire and improve the Property (the Minimum Improvements). These Minimum Improvements 4 include creating a not less than seventy (70) unit affordable assisted senior housing development. 2.2 The Minimum Improvements shall comply with the HUD Fair Market Rent regulations and standards for the term of this Agreement. 2.3 Plans for Construction of Minimum Improvements. Plans and specifications with respect to the development of the Property and the construction of the Minimum Improvements thereon (the Construction Plans) shall be in conformity with Urban Renewal Plan, this Agreement, and all applicable state and local laws and regulations, including but not limited to any covenants, conditions, restrictions, reservations, easements, liens and charges, recorded in the records of Dubuque County, Iowa. Developer shall submit to City, for approval by City, plans, drawings, specifications, and related documents with respect to the improvements to be constructed by Developer on the Property. All work with respect to the Minimum Improvements shall be in substantial conformity with the Construction Plans approved by City. 2.4 Timing of Improvements. Developer hereby agrees that construction of the Minimum Improvements on the Property shall be commenced within thirty (30) days after the Closing Date, and shall be substantially completed by December 31, 2012. The time frames for the performance of these obligations shall be suspended due to unavoidable delays meaning delays, outside the control of the party claiming its occurrence in good faith, which are the direct result of strikes, other labor troubles, unusual shortages of materials or labor, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion directly results in delays, or acts of any federal, state or local government which directly result in extraordinary delays. The time for performance of such obligations shall be extended only for the period of such delay. 2.5 Certificate of Completion. Promptly following the request of Developer upon completion of the Minimum Improvements, City shall furnish Developer with an appropriate instrument so certifying. Such certification (the Certificate of Completion) shall be in recordable form and shall be a conclusive determination of the satisfaction and termination of the agreements and covenants in this Agreement. SECTION 3. CITY PARTICIPATION 3.1 This section intentionally left blank. 3.2 Economic Development Grant to Developer. For and in consideration of Developer's obligations hereunder, and in furtherance of the goals and objectives of the urban renewal plan for the Project Area and the Urban Renewal Law, City agrees, subject to Developer being and remaining in compliance with the terms of this Agreement, to make twenty (20) consecutive semi - annual payments (such payments being referred to collectively as the Economic Development Grants) to Developer: 5 November 1, 2014 November 1, 2015 November 1, 2016 November 1, 2017 November 1, 2018 November 1, 2019 November 1,2O2O November 1, 2021 November 1, 2022 November 1.2O23 May 1.2015 May 1,2810 May 1.ZO17 May 1, 2018 May 1,2O1S May 1.2O2O May 1'2Q21 May 1.3022 May 1.2O33 May 1.2O24 pursuant to Iowa Code Section 403.9 of the Urban Renewal Law in amounts equal to a portion of the tax increment revenues collected by City under Iowa Code Section 403.19 (without regard to any averaging that may otherwise be utilized under Iowa Code Section 403.19 and excluding any interest that may accrue thereon prior to payment to Developer) during the preceding six-month period in respect of the Minimum Improvements constructed by Developer (the Developer Tax Increments). For purposes of calculating the amount of the Economic Development Grants provided in this Section, the Developer Tax Increments shall be only those tax increment revenues collected by City in respect of the increase in the assessed value of the Property above the assessment of January 1, 2011 (an amount not greater than $335,000). The Developer Tax Increments shall not include any property taxes collected for the payment of bonds and interest of each taxing district, (ii) any taxes for the regular and voter-approved physical plant and equipment levy, (iii) the remaining actual amount of tax increment revenues collected by City in respect of the valuations of the Property prior to January 1, 2012 and (iv) any other portion required to be excluded by Iowa law, and thus such incremental taxes will not include all amounts paid by Developer as regular property taxes. The Economic Development Grant shall not exceed $9,680 in any six month period. 3.3 To fund the Econornic Devebpment Grants, City shall certify to Dubuque County Iowa prior to December 1, 2012, its request for the available Developer Tax Increments resulting from the assessments imposed by the County as of January 1 of that year and each year thereafter until and including January 1, 2022, to be collected by City as taxes are paid during the fotiowing fiscal year and which shall thereafter be disbursed to the Developer on November 1 and May 1 of that fiscal year. (Example: if City so certifies in December, 2012, the Economic Development Grants in respect thereof would be paid to the Developer on November 1'2014' and May 1.2O15.\ 3.4 The Economic Devetopment Grants shall be payable from and secured solely and only by the Developer Tax Increments paid to City that, upon receipt, shalt be deposited and held in a special account created for such purpose and designated as the Rose TIF Account of City. City hereby covenants and agrees to maintain its TIF ordinance in force during the term hereof and to apply the incremental taxes collected in respect of the Minimum Improvements and allocated to the Rose TIF Account to pay the Economic 6 Development Grants, as and to the extent set forth in Section 3.2 hereof. The Economic Development Grants shall not be payable in any manner by other tax increments revenues, or by general taxation or from any other City funds. City makes no representation with respect to the amounts that may be paid to Developer as the Economic Development Grants in any one year and under no circumstances shall City in any manner be liable to Developer so long as City timely applies the Developer Tax Increments actually collected and held in the Rose TIF Account (regardless of the amounts thereof) to the payment of the Economic Development Grants to Developer as and to the extent described in this Section. 3.5 City shall be free to use any and all tax increment revenues collected in respect of other properties within the Project Area and the remaining actual amount of the property taxes paid by Developer to City, or any available Developer Tax Increments resulting from the termination of the annual Economic Development Grants under Section 3.2 hereof, for any purpose for which such tax increment revenues may lawfully be used pursuant to the provisions of the Urban Renewal Law, and City shall have no obligations to Developer with respect to the use thereof. SECTION 4. COVENANTS OF DEVELOPER 4.1 The Minimum Improvements shall conform to all applicable city and state building codes. 4.2 This section intentionally left blank. 4.3 Books and Records. During the term of this Agreement, Developer shall keep at all times and make available to City upon reasonable request proper books of record and account in which full, true and correct entries will be made of all dealings and transactions of or in relation to the business and affairs of Developer in accordance with generally accepted accounting principles consistently applied throughout the period involved, and Developer shall provide reasonable protection against loss or damage to such books of record and account. 4.4 Real Property Taxes. Developer shall pay or cause to be paid, when due, all real property taxes and assessments payable with respect to all and any parts of the Property. 4.5 No Other Exemptions. During the term of this Agreement, Developer agrees not to apply for any state or local property tax exemptions which are available with respect to the Development Property or the Minimum Improvements located thereon that may now be, or hereafter become, available under state law or city ordinance during the term of this Agreement, including those that arise under Iowa Code Chapters 404 and 427, as amended; however, the income approach provided in 701- 71.5(2)IAC is specifically permitted. 7 4.6 Insurance Requirements. (1) Developer shall provide and maintain or cause to be maintained at all times during the process of constructing the Minimum Improvements and at its sole cost and expense builder's risk insurance, written on a Completed Value Form in an amount equal to one hundred percent (100 %) of the building (including Minimum Improvements) replacement value when construction is completed. Coverage shall include the "special perils" form and developer shall furnish City with proof of insurance in the form of a certificate of insurance. (2) Upon completion of construction of the Minimum Improvements and up to the Termination Date, Developer shall maintain, or cause to be maintained, at its cost and expense property insurance against loss and /or damage to the building (including the Minimum Improvements) under an insurance policy written with the "special perils" form and in an amount not less than the full insurable replacement value of the building (including the Minimum Improvements). Developer shall furnish to City proof of insurance in the form of a certificate of insurance. (3) The term "replacement value" shall mean the actual replacement cost of the building with Minimum Improvements (excluding foundation and excavation costs and costs of underground flues, pipes, drains and other uninsurable items) and equipment, and shall be reasonably determined from time to time at the request of City, but not more frequently than once every three (3) years. (4) Developer shall notify City immediately in the case of damage exceeding $50,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. Net proceeds of any such insurance (Net Proceeds), shall be paid directly to Developer as its interests may appear, and Developer shall forthwith repair, reconstruct and restore the Minimum Improvements to substantially the same or an improved condition or value as they existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, Developer shall apply the Net Proceeds of any insurance relating to such damage received by Developer to the payment or reimbursement of the costs thereof, subject, however, to the terms of any mortgage encumbering title to the Property (as its interests may appear). Developer shall complete the repair, reconstruction and restoration of Minimum Improvements whether or not the Net Proceeds of insurance received by Developer for such purposes are sufficient. 4.7 Preservation of Property. During the term of this Agreement, Developer shall maintain, preserve and keep, or cause others to maintain, preserve and keep, the Minimum Improvements in good repair and working order, ordinary wear and tear accepted, and from time to time shall make all necessary repairs, replacements, renewals and additions. 8 4.8 Non - Discrimination. In carrying out the project, Developer shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, sexual orientation, gender identity, national origin, age or disability. 4.9 Conflict of Interest. Developer agrees that no member, officer or employee of City, or its designees or agents, nor any consultant or member of the governing body of City, and no other public official of City who exercises or has exercised any functions or responsibilities with respect to the project during his or her tenure, or who is in a position to participate in a decision - making process or gain insider information with regard to the project, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the project, or in any activity, or benefit therefrom, which is part of this project at any time during or after such person's tenure. In connection with this obligation, Developer shall have the right to rely upon the representations of any party with whom it does business and shall not be obligated to perform any further examination into such party's background. 4.10 Non - Transferability. Until such time as the Minimum Improvements are complete (as certified by City under Section 2.5), this Agreement may not be assigned by Developer nor may the Property be transferred by Developer to another party without the written consent of City. Thereafter, with the prior written consent of City, which shall not be unreasonably withheld, Developer shall have the right to assign this Agreement, and upon assumption of the Agreement by the assignee, Developer shall no longer be responsible for its obligations under this Agreement. 4.11 No change in Tax Classification. Developer agrees that it will not take any action to change, or otherwise allow, the classification of the Property for property tax purposes to become other than commercial property and to be taxed as such under Iowa law. 4.12 Restrictions on Use. Developer agrees for itself, and its successors and assigns, and every successor in interest to the Property or any part thereof that they, and their respective successors and assigns, shall: (1) Devote the Property to, and only to and in accordance with, the uses specified in the Urban Renewal Plan (and City represents and agrees that use of the Property as an affordable assisted senior living facility, is in full compliance with the Urban Renewal Plan) (however, Developer shall not have any liability to City to the extent that a successor in interest shall breach this covenant and City shall seek enforcement of this covenant directly against the party in breach of same); and (2) Not discriminate upon the basis of race, religion, color, sex, sexual orientation, gender identity, national origin, age or disability in the sale, lease, rental, use or occupancy of the Property or any improvements erected or to be erected thereon, or any part thereof (however, Developer shall not have any liability to City to the extent that a successor in interest shall breach this covenant and City shall seek enforcement of this covenant directly against the party in breach of same). 9 4.13 Compliance with Laws. Developer shall comply with all laws, rules and regulations relating to its businesses, other than laws, rules and regulations the failure to comply with or the sanctions and penalties resulting therefrom, would not have a material adverse effect on the business, property, operations, financial or otherwise, of Developer. SECTION 5. EVENTS OF DEFAULT AND REMEDIES 5.1 Events of Default Defined. The following shall be Events of Default under this Agreement and the term Event of Default shall mean, whenever it is used in this Agreement, any one or more of the following events: (1) Failure by Developer to pay or cause to be paid, before delinquency, all real property taxes assessed with respect to the Minimum Improvements and the Property. (2) Failure by Developer to cause the construction of the Minimum Improvements to be commenced and completed pursuant to the terms, conditions and limitations of this Agreement. (3) Transfer of any interest by Developer of the Minimum Improvements in violation of the provisions of this Agreement prior to the issuance of the final Certificate of Completion. (4) Failure by Developer or City to substantially observe or perform any other material covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. 5.2. Remedies on Default by Developer. Whenever any Event of Default referred to in Section 5.1 of this Agreement occurs and is continuing, City, as specified below, may take any one or more of the following actions after the giving of written notice by City to Developer (and the holder of any mortgage encumbering any interest in the Property of which City has been notified of in writing) of the Event of Default, but only if the Event of Default has not been cured by Developer or its limited partner within sixty (60) days following such notice, or if the Event of Default cannot be cured within sixty (60) days and neither Developer nor its limited partner provides assurances to City that the Event of Default will be cured as soon as reasonably possible thereafter: (1) City may suspend its performance under this Agreement until it receives assurances from the Developer deemed adequate by City, that the Developer will cure its default and continue its performance under this Agreement; (2) Until the Closing Date, City may cancel and rescind this Agreement; (3) City shall be entitled to recover from Developer the sum of all reasonable amounts necessarily expended by City in connection with the funding of the 10 Economic Development Grants to Developer and City may take any action, including any legal action it deems necessary, to recover such amounts from the Developer; (4) City may withhold the Certificate of Completion; or (5) City may take any action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement. 5.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to City is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 5.4 No Implied Waiver. In the event any agreement contained in this Agreement should be breached by any party and thereafter waived by any other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. 5.5 Agreement to Pay Attorneys' Fees and Expenses. If any action at law or in equity, including an action for declaratory relief or arbitration, is brought to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of litigation from the other party. Such fees and costs of litigation may be set by the court in the trial of such action or by the arbitrator, as the case may be, or may be enforced in a separate action brought for that purpose. Such fees and costs of litigation shall be in addition to any other relief that may be awarded. 5.6 Remedies on Default by City. If City defaults in the performance of this Agreement, Developer may take any action, including legal, equitable or administrative action that may appear necessary or desirable to collect any payments due under this Agreement, to recover expenses of Developer, or to enforce performance and observance of any obligation, agreement, or covenant of City under this Agreement. Developer may suspend their performance under this Agreement until they receive assurances from City, deemed adequate by Developer, that City will cure its default and continue its performance under this Agreement. SECTION 6. GENERAL TERMS AND PROVISIONS 6.1 Notices and Demands. Whenever this Agreement requires or permits any notice or written request by one party to another, it shall be deemed to have been properly given if and when delivered in person or three (3) business days after having been deposited in 11 any U.S. Postal Service and sent by registered or certified mail, postage prepaid, addressed as follows: If to Developer: The Rose of Dubuque c/o Gregory A. McClenahan 16670 Franklin Trail, Suite 240 Prior Lake, MN 55372 With copy to: WNC & Associates, Inc. Attn: Michael J. Gaber 17782 Sky Park Circle Irvine, CA 92614 If to City: City Manager 50 W. 13th Street Dubuque, Iowa 52001 Phone: (563) 589 -4110 Fax: (563) 589 -4149 With copy to: City Attorney City Hall 50 W. 13th Street Dubuque IA 52001 Or at such other address with respect to either party as that party may, from time to time designate in writing and forward to the other as provided in this Section. 6.2 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of City and Developer and their respective successors and assigns. 6.3 Termination Date. This Agreement and the rights and obligations of the parties hereunder shall terminate on June 1, 2024 (the Termination Date). 6.4. Execution By Facsimile. The parties agree that this Agreement may be transmitted between them by facsimile machine. The parties intend that the faxed signatures constitute original signatures and that a faxed Agreement containing the signatures (original or faxed) of all the parties is binding on the parties. 6.5 Memorandum of Development Agreement. Developer shall promptly record a Memorandum of Development Agreement in the form attached hereto as Exhibit D in the office of the Recorder of Dubuque County, Iowa. Developer shall pay the costs for so recording. 12 IN WITNESS WHEREOF, City has caused this Agreement to be duly executed in its name and behalf by its Mayor and attested to by its City Clerk and Developer has caused this Agreement to be duly executed on or as of the first above written. CITY OF DUBUQUE, IOWA By Roy D. But/11 Mayor 13 THE ROSE OF DUBUQUE, L. P. By EVERGREEN REAL ESTATE DEVELOPMENT CORP. Its General Partner By 14\ Gregory 'Clenahan Its President C Seal) STATE OF IOWA S8 COUNTY OF DUBUQUE ' On this l9tbd8Vof September 201I before me the undersigned, a Notary PubIic in and forthe said County and State, personaily appeared Roy D, BuoI and Kevin 5, Firnstahl, to me personally known, who, being by me duly sworn, did say that they are the Mayor and Acting City Clerk, respectively, of the City of Dubuque, Iowa, a municipal corporation executing the instrument to which this is attached; that the seal affixed hereto is the seal of said municipal corporation; that said instrument was signed and sealed on behalf of the City of Dubuque, Iowa, by authority of its City Council; and that said Mayor and Acting City Clerk acknowledged the execution of said instrument to be the voluntary act and deed of said Cdv, by it and by them voluntarily executed, 4, /Ca--i'l-ef-cg....- »�Y � — ^ ommlssion Nu v ar 745861 [ STATE OF [OWA °E. sm"rp, \ ' COUNTY OF DUBUQUE scarT\ SS � C)OthiG1s~�- day of 20// before me the undersTgned a Notary Public in and for the State of �haIIy appeared Gregory A. McClenahan, to me personally kOOVVO. VvhO, being by me duly sworn, did say that he is the President of Evergreen Real Estate Development Corp., General Partner of The Rose of Dubuque, the limited partnership executing the instrument to which this is attached and that as said President of Evergreen Real Estate Development Corp. and of The Rose of Dubuque acknowledges the execution of said instrument to be the voluntary act and deed of said company, by it and by him, an individual, voluntarily executed. F:\USERS\Econ Dev\Rose of Dubuque\Development Agreement\20110826 The Rose of Dubuque oA080911bal_.dou 14 EXHIBIT A — EXHIBIT B — EXHIBIT C EXHIBIT D LIST OF EXHIBITS City Attorney Certificate Opinion of Developer Counsel — City Certificate — Memorandum of Development Agreement EXHIBIT A CITY ATTORNEY'S CERTIFICATE 16 BARRY A. LINDAHL, ESQ. CITY ATTORNEY RE: Dear (DATE) THE CITY OF I have acted as counsel for the City of Dubuque, Iowa, in connection with the execution and delivery of a certain Development Agreement between (Developer) and the City of Dubuque, Iowa (City) dated for reference purposes the day of , 20_ The City has duly obtained all necessary approvals and consents for its execution, delivery and performance of this Agreement and has full power and authority to execute, deliver and perform its obligations under this Agreement, and to the best of my knowledge, the representations of the City Manager in his letter dated the day of , 20, are correct. BAL:tls 17 Very sincerely, Barry A. Lindahl, Esq. City Attorney EXHIBIT B OPINION OF DEVELOPER'S COUNSEL 18 Mayor and City Councilmembers City Hall 13t and Central Avenue Dubuque IA 52001 Re: Development Agreement Between the City of Dubuque, Iowa and The Rose of Dubuque, L. P. Dear Mayor and City Councilmembers: We have acted as counsel for The Rose of Dubuque, L. P., (Developer) in connection with the execution and delivery of a certain Development Agreement (Development Agreement) between Developer and the City of Dubuque, Iowa ( "City ") dated for reference purposes the day of , 20_ We have examined the original certified copy, or copies otherwise identified to our satisfaction as being true copies, of the Development Agreement and such other documents and records as we have deemed relevant and necessary as a basis for the opinions set forth herein. Based on the pertinent law, the foregoing examination and such other inquiries as we have deemed appropriate, we are of the opinion that: 1. Developer is a corporation organized and existing under the laws of the State of Iowa and has full power and authority to execute, deliver and perform in full Development Agreement. The Development Agreement has been duly and validly authorized, executed and delivered by Developer and, assuming due authorization, execution and delivery by City, is in full force and effect and is valid and legally binding instrument of Developer enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws relating to or affecting creditors' rights generally. 2. The execution, delivery and performance by Developer of the Development Agreement and the carrying out of the terms thereof, will not result in violation of any provision of, or in default under, the articles of incorporation and bylaws of Developer, any indenture, mortgage, deed of trust, indebtedness, agreement, judgment, decree, order, statute, rule, regulation or restriction to which Developer is a party or by which Developer's property is bound or subject. 3. There are no actions, suits or proceedings pending or threatened against or affecting Developer in any court or before any arbitrator or before or by any governmental body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the business (present or prospective), financial position or results of operations of Developer or which in any manner raises any questions affecting the validity of the Agreement or the Developer's ability to perform Developer's obligations thereunder. Very truly yours, 19 EXHIBIT C CITY CERTIFICATE 20 City Manager's Office 50 West 13th Street Dubuque, Iowa 52001 -4864 (563) 589 -4110 phone (563) 589 -4149 fax ctymgr a ci tyofd ubuque.org Dear (DATE) I am the City Manager of the City of Dubuque, Iowa and have acted in that capacity in connection with the execution and delivery of a certain Development Agreement between (Developer) and the City of Dubuque, Iowa (City) dated for reference purposes the day of , 20_ On behalf of the City of Dubuque, I hereby represent and warrant to Developer that: (1) City has duly obtained all necessary approvals and consents for its execution, delivery and performance of this Agreement and that it has full power and authority to execute, deliver and perform its obligations under this Agreement. City's attorney shall issue a legal opinion to Developer at time of closing confirming the representation contained herein, in the form attached hereto as Exhibit B. (2) City shall exercise its best efforts to cooperate with Developer in the development process. (3) City shall exercise its best efforts to resolve any disputes arising during the development process in a reasonable and prompt fashion. (4) The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this Agreement are not prevented by, limited by, in conflict with, or result in a violation or breach of, the terms, conditions or provisions of the charter of City, any evidence of indebtedness, agreement or instrument of whatever nature to which City is now a party or by which it or its property is bound, or constitute a default under any of the foregoing. (5) There are no actions, suits or proceedings pending or threatened against or affecting City in any court or before any arbitrator or before or by any governmental 21 body in which there is a reasonable possibility of an adverse decision which could materially adversely affect the financial position or operations of City or which affects the validity of the Agreement or City's ability to perform its obligations under this Agreement. (6) No ordinance or hearing is now or before any local governmental body that either contemplates or authorizes any public improvements or special tax levies, the cost of which may be assessed against the Property. To the best of City's knowledge, there are no plans or efforts by any government agency to widen, modify, or re -align any street or highway providing access to the Property and there are no pending or intended public improvements or special assessments affecting the Property which will result in any charge or lien be levied or assessed against the Property. (7) The representations and warranties contained in this article shall be correct in all respects on and as of the Closing Date with the same force and effect as if such representations and warranties had been made on and as of the Closing Date. MCVM:jh 22 Sincerely, Michael C. Van Milligen City Manager EXHIBIT D MEMORANDUM OF DEVELOPMENT AGREEMENT 23 Prepared by: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583 -4113 Return to: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583 -4113 MEMORANDUM OF DEVELOPMENT AGREEMENT A Development Agreement by and among the City of Dubuque, Iowa, an Iowa municipal corporation, of Dubuque, Iowa, and The Rose of Dubuque was made regarding the following described premises: Lot 1 of Cedar Lake Plaza 4th Addition which is a portion of Lot 2 of Lot 2 of Cedar Lake Plaza 3rd Addition in the City of Dubuque. The Development Agreement is dated for reference purposes the 17h day of , 2011, and contains covenants, conditions, and restrictions concerning the sale and use of said premises. This Memorandum of Development Agreement is recorded for the purpose of constructive notice. In the event of any conflict between the provisions of this Memorandum and the Development Agreement itself, executed by the parties, the terms and provisions of the Development Agreement shall prevail. A complete counterpart of the Development Agreement, together with any amendments thereto, is in the possession of the City of Dubuque and may be examined at its offices as above provided. Dated this day of , 2011. 24 CITY OF DUBUQUE, IOWA THE ROSE OF DUBUQUE, L. P. By By EVERGREEN REAL ESTATE Roy D. Buol DEVELOPMENT CORP. Mayor Its eeral Partner r°, M Attest Kevin S. Firnstahl Acting City Clerk STATE OF IOWA ) SS COUNTY OF DUBUQUE ) Byw,,. Gregory" . " McClenahan Its President On this day of , 20_, before me, a Notary Public in and for the State of Iowa, in and for said county, personally appeared Roy D. Buol and Kevin S. Firnstahl, to me personally known, who being by me duly sworn did say that they are the Mayor and Acting City Clerk, respectively of the City of Dubuque, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to said instrument is the seal of said Municipal Corporation and that said instrument was signed and sealed on behalf of said Municipal corporation by authority and resolution of its City Council and said Mayor and Acting City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed, Notary Public, State of Iowa STATE OF IOWA I'''l COUNTY OF SUE e;,; On this ' day of ,it" .nt t p ,�� 20 /1 , before me the undersigned, a Notary Public in and for the State of Iowa, personally appeared Gregory A. McClenahan, to me personally known, who, being by me duly sworn, did say that he is the President of Evergreen Real Estate Development Corp., General Partner of The Rose of Dubuque, the limited partnership executing the instrument to which this is attached and that as said President of Evergreen Real Estate Development Corp. and of The Rose of Dubuque acknowledges the execution of said instrument to be the voluntary act and deed of said company, by it and by him, an individual, voluntarily executed. ) ) ) SS Notary Public, State of fam 25 DALE A. O'HARA NOTARY PUBLIC - FA A,,: <..:SOTA MY ";t: "�0 r� 3� 31,201 September 27, 2011 EverGreen Real Estate Development Corporation Suite 240 16670 Franklin Trail Prior Lake, MN 55372 David J. Heiar Economic Development Director City of Dubuque 50 W. 13th Street Dubuque, IA 52001 Re: The Rose of Dubuque, L.P. Development Agreement Dear Mr. Heiar: (952) 447-2345 Fax (952) 447-2344 www.evergreenredc.com Enclosed please find a fully -executed copy of the Development Agreement. I will make arrangements for the opinion of developer's counsel to be forwarded to you. Thank you for your assistance with getting this matter approved and concluded. We should be closing on the land and financing during the week of October 3 -7th Sincerely, EVERGREEN REAL ESTATE DEVELOPMENT CORP. General Partner of The Rose of Dubuque Gregory A. McClenahan President