Plastic Center, Inc._First Amendment to Development AgreementMasterpiece on the Mississippi
Dubuque
kitill
Ai-Anita City
hli ll!
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: First Amendment to Development Agreement with Plastic Center, Inc.
DATE: September 27, 2011
Economic Development Director Dave Heiar recommends City Council approval of the
First Amendment to the Development Agreement with Plastic Center, Inc. on the
properties located at 426 W. 5th Street and 951, 955 and 957 Main Street in downtown
Dubuque. The First Amendment to the Development Agreements extends the deadline
for completion of construction from October 31, 2011 to April 30, 2012.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Department
Dubuque
kittll
AN- America city
11111!
2007
SUBJECT: First Amendment to Development Agreement with Plastic Center, Inc.
DATE: September 27, 2011
INTRODUCTION
This memorandum presents for City Council consideration a Resolution approving a
First Amendment to the Development Agreement on the properties located at 426 W. 5th
Street and 951, 955 and 957 Main Street in downtown Dubuque.
BACKGROUND
City staff has worked with Plastic Center, Inc. to formulate a funding package to
redevelop the properties located at 426 W. 5th Street and 951, 955 and 957 Main Street.
Plastic Center, Inc. plans to invest $2,000,000 in redeveloping 951 -957 Main Street to
include creating seven apartments for market -rate rental and maintaining the first floor as
commercial space and creating four apartments in the building located at 426 W. 5th Street.
The original Development Agreement was approved on February 7, 2011. The
Development Agreement provides for several incentives to encourage redevelopment of
the properties.
The key elements of the Development Agreement include the following:
1) The project will receive up to $110,000 ($10,000 per residential unit) in incentives
through the Downtown Housing Incentive Program. The City Council previously
authorized this funding on July 19, 2010.
2) Plastic Center, Inc. will receive a 15 year TIF rebate in the form of a yearly tax
rebates on the increased value of the assessable improvements.
3) A Downtown Rehabilitation Loan Program loan of $300,000 for the Main Street
buildings. The expected year of funding this is FY2012, and was approved by
the City Council on January 7, 2008.
4) Fa9ade and Planning and Design grants will also be made to the Main Street
buildings. The expected year of funding these grants is FY2012, which was
approved by the City Council on January 7, 2008.
5) Developer will spend at least $2 million to create 11 market -rate residential units
on West 5th and Main Street. This renovation will include commercial space on
the main floors of 951, 955 and 957 Main Street.
DISCUSSION
The proposed First Amendment to the Development Agreement provides for an
extension of time to complete the Project.
In the request for the extension, the Developer gave the following reasons for needing
the extension; "We are working very hard on these buildings but we did hit a few snags
that have set us back. For one, there were a number of structural issues that were not
visible until we completed all the demolition. We also had to make some revisions as a
result of ADA requirements and those changes needed approval from the State Historic
Preservation Office." Redevelopment projects are more complicated and sometimes do
require additional unanticipated work.
The Developer has requested the construction completion date of October 31, 2011 be
extended to April 30, 2012. This will extend the completion date for both the West 5th
and Main Street renovations.
RECOMMENDATION
I recommend that the City Council approve the attached Resolution approving the First
Amendment to the Development Agreement.
ACTION STEP
The action step for the City Council is to adopt the attached Resolution.
F: \USERS\Econ Dev \Betty Jane Block \20110927 Plastic Center Approve DA 1st Amend Memo.doc
Prepared /Return to: David Heiar, Economic Development, 50 W. 13th Street, Dubuque, IA 52001 (563) 589 -4393
RESOLUTION NO. 334 -11
RESOLUTION APPROVING THE FIRST AMENDMENT TO THE PLASTIC CENTER,
INC. DEVELOPMENT AGREEMENT
Whereas, a Development Agreement (the Agreement), dated February 7, 2011,
was entered into by and between the City of Dubuque, a municipal corporation of the
State of Iowa (City), and Plastic Center, Inc. (Developer); and
Whereas, City and Plastic Center, Inc. now desire to amend the Development
Agreement as set forth attached First Amendment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the First Amendment of the Plastic Center, Inc. Development
Agreement is hereby approved.
Section 2. That the Mayor is hereby authorized and directed to execute said
First Amendment on behalf of the City of Dubuque and the City Clerk is authorized and
directed to attest to his signature.
Section 3. That the City Manager is authorized to take such actions as are
necessary to implement the terms of the First Amendment as herein approved.
Passed, approved and adopted this 3rd day of Octo • er, 2011.
0 Li
Roy D. Buol, Mayor
Attest:
Kevin
r., I 1
rnstahl, City Clerk
F: \USERS \Econ Dev \Betty Jane Block\20111003 Plastic Center Reso first DA amend.doc
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE
AND PLASTIC CENTER, INC.
The First Amendment to the Development Agreement, dated for reference
purposes the 3rd day of October' , 2011, is made and entered into by and
between the City of Dubuque, Iowa (City) and Plastic Center, Inc. (Developer).
Whereas City and Developer previously entered into a Development Agreement
dated the 7th of February, 2011 (the Development Agreement); and
Whereas the Development Agreement provides in Section 2.4 that the Minimum
Improvements shall be complete by October 31, 2011.
Whereas City and Developer have agreed to amend the Development
Agreement to revise the completion date for the Project; and
Whereas the parties desire to amend the Development Agreement to set forth
such amendment in writing.
THEREFORE, in consideration of the mutual terms and covenants contained
herein, the parties agree as follows:
1. Section 2.4. Section 2.4 is hereby amended by striking such provision and in
lieu thereof placing the following:
Timing of Improvements.- Developer hereby agrees th—ta cons ruc ion of the
Minimum Improvements on the Property shall be commenced within thirty (30)
days after the Closing Date, and shall be substantially completed by April 30,
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. Except as modified herein, the Development Agreement shall remain in full
force and effect.
CITY OF DUBUQUE, IOWA
PLASTIC CENTER, INC.
By Roy D. Buol
Tony Pfohl
Roy D. Buol
Tony Phohl, Manager
Mayor
Attest:
Kevin S. FirnstahI
City Clerk
F:\USERS \Econ Dev \Betty Jane Block120110927 Plastic Center First Amendment to DA.doc