Caradco Project_Housing Enterprise Zone AmendmentMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
kritel
`AN- AmericaCity
1
2007
SUBJECT: First Amendment to Housing Enterprise Zone Program Agreement
Number 10 -HEZ -041 for Caradco Project
DATE: October 31, 2011
Economic Development Director Dave Heiar recommends City Council approval of an
amendment to the Housing Enterprise Zone Program Agreement for the Caradco
project approving the change of ownership from Caradco Building, LLLP to Caradco
Landlord, LLC.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
1
chael 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 Director
SUBJECT: First Amendment to Housing Enterprise Zone Program Agreement Number
10 -HEZ -041 for Caradco Project
DATE: October 19, 2011
Dubuque
alr
I'll!
2007
INTRODUCTION
This memorandum presents for City Council approval an amendment to the Housing Enterprise
Zone Program Agreement by and among the Iowa Department of Economic Development
(IDED), the City and Caradco Building, LLLP. The City Council is requested to adopt a
resolution approving the amendment to change ownership from Caradco Building, LLLP to
Caradco Landlord, LLC. The City Council has previously approved this name change for other
City agreements.
BACKGROUND
On February 24, 2010, the City Enterprise Zone Commission approved an application to IDED
on behalf of Caradco Building, LLLP for Housing Enterprise Zone benefits related to the
redevelopment of the former Carr, Ryder & Adams Company building located at 900 Jackson
Street. IDED approved the application on June 10, 2010. The agreement was approved by the
City Council on August 16, 2010.
DISCUSSION
Attached to this memorandum is a resolution that provides for the approval of an amendment to
the agreement for Housing Enterprise Zone benefits for Caradco Building, LLLP. The
developers have changed the name of the developer from Caradco Building, LLLP to Caradco
Landlord, LLC. The resolution authorizes and directs the Mayor to execute the amendment on
behalf of the City. The agreement outlines the State benefits that will accrue to the housing
business based on their role as developer of the housing project. The project will provide 72
multi - family housing units in the downtown area.
The project has estimated a capital investment of $28,000,000 within the Enterprise Zone
related to the housing units. A copy of the amendment is attached to the resolution.
RECOMMENDATION
I recommend that the City Council approve the proposed amendment to the Housing Enterprise
Zone Program Agreement for the Caradco project by adopting the attached resolution. This
agreement will provide State of Iowa financial benefits to a local housing developer making a
substantial investment in our downtown. There is no commitment within the agreement of any
further City assistance.
ACTION STEP
The action step for the Council is to adopt the attached resolution.
Attachments
F: \USERS \Econ Dev \CARADCO \EZ\20111014 First Amendment Council Memo.doc
Prepared by: Aaron DeJong, Asst. ED Director, 50 West 13th Street, Dubuque IA 52001 563 589 -4393
Return to: Kevin Firnstahl, City Clerk, 50 West 13th Street, Dubuque IA 52001 563 589 -4121
RESOLUTION NO. 365 -11
RESOLUTION APPROVING AN AMENDMENT TO A HOUSING ENTERPRISE ZONE
PROGRAM AGREEMENT BY AND AMONG THE IOWA DEPARTMENT OF ECONOMIC
DEVELOPMENT, THE CITY OF DUBUQUE AND CARADCO BUILDING, LLLP
Whereas, the City of Dubuque has established two Enterprise Zones and an
Enterprise Zone Commission; and
Whereas, the Enterprise Zone Commission on February 24, 2010 approved the
application of Caradco Building, LLLP for Housing Enterprise Zone benefits; and
Whereas, Caradco Building, LLLP's application was approved by the Iowa
Department of Economic Development on June 10, 2010; and
Whereas, the Enterprise Zone Agreement was approved by the City Council by
Resolution No. 312 -10 on August 16, 2010; and
Whereas, an amendment is needed to transfer the agreement to Caradco Landlord,
LLC as it is the new developer for the project; and
Whereas, the City Council finds that the proposed amendment is acceptable and
necessary to the growth and development of the city.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the Iowa Department of Economic Development Housing
Enterprise Zone Program Agreement Amendment 1, Number 10-
HEZ -041, is hereby approved.
Attest:
Section 2. That the Mayor is hereby authorized and directed to execute the
amendment on behalf of the City of Dubuque and forward the
executed copy to the Iowa Department of Economic Development for
their approval.
Passed, approved and adopted this 7th day of November, 2011
.rr %%tea'
Kevi S Firnstahl, ity C erk
F: \USERS \Econ Dev \CARADCO \EZ\20111017 EZ Amendment Resolution.doc
D. uol, Mayor
IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT
HOUSING ENTERPRISE ZONE PROGRAM AGREEMENT
CONTRACT AMENDMENT NUMBER: One (1)
EZ AGREEMENT NUMBER: 10 -HEZ -041
THIS AMENDMENT is made by and among the Iowa Department of Economic Development, 200 East Grand
Avenue, Des Moines, Iowa 50309 ( "Department" or "IDED "), City of Dubuque, 50 W 13th ST, Dubuque, IA
52001, ( "Community ") and Caradco Building, LLLP, 1056 Main St, Dubuque, IA 52001, ( "Housing Business ").
Contract Number 10 -HEZ -041 is hereby modified as follows:
Modification 1: The Housing Business and address named inthe Agreement is changed as follows:
"THIS ENTERPRISE ZONE AGREEMENT is made by and among the Iowa Department of Economic
Development, 200 East Grand Avenue, Des Moines, Iowa 50309 ( "Department" or "IDED "), City of Dubuque, 50 W
13th ST, Dubuque, IA 52001, ( "Community ") and Caradco Building, LLLP, CARADCO Landlord, LLC,1056 Main St,
Dubuque, IA 52001, ( "Housing Business ")."
Modification 2: The structure of the Housing Business as stated in Article 3.1 Authority is changed as follows:
has been effectively taken."
The Housing Business is a corporation duly organized and validly existing under the laws of its state of
incorporation and is in good standing, and has complied with all applicable laws of the State of Iowa. The Housing
Business is duly authorized and empowered to execute and deliver this Agreement. All action on the Housing .
Business' part (e.q. where required, appropriate resolution of its Board of Directors) for the execution and delivery
of this Agreement, has been effectively taken.
Except as otherwise revised above, the terms, provisions, and conditions of Contract Number 10 -HEZ -041
remain unchanged and are in full force and effect:
FORTH. COMMUNITY:
City of D buque
FOR IDED:
Signatuj Deborah V. Durham, Director
Roy Buol, Mayor
Type or Print Name, Title
FOR THE HOUSINe[USINESS:
CARADCO Lan y lore► LC
T •e or Print Name, Title
HEZ
Format revised 10/2005