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Rousselot, Inc. First Amendment to Management AgreementMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Dubuque kital All- America City II 111! 2012 SUBJECT: First Amendment to Development Agreement with Rousselot, Inc. regarding expansion at 2350 Kerper Boulevard in the Greater Downtown Urban Renewal District DATE: February 13, 2013 The City Council approved a Development Agreement with Rousselot, Inc. on January 22, 2013. The Development Agreement erroneously identified Rousselot, Inc. as the developer and incorrectly stated that it is a Wisconsin company. The Amendment would change the name of the developer from Rousselot, Inc. to Rousselot Dubuque Inc., and would correctly identify the company as a Delaware Corporation. Additionally, the Amendment would delay the start of the minimum improvements until March 1, 2013, in order to allow Rousselot representatives the time to complete the appropriate exhibits associated with the agreement. Economic Development Director Dave Heiar recommends City Council approval of of the First Amendment to Development Agreement with Rousselot, Inc. I concur with the recommendation and respectfully request Mayor and City Council approval. brit44 krt., italy, Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, 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 DATE: February 11, 2013 Dubuque Leal All- America City 111 h/ 2012 SUBJECT: First Amendment to Development Agreement with Rousselot, Inc. regarding expansion at 2350 Kerper Boulevard in the Greater Downtown Urban Renewal District INTRODUCTION This memorandum presents for City Council consideration and action on the attached First Amendment to the Development Agreement with Rousselot, Inc. BACKGROUND The City Council approved a Development Agreement with Rousselot, Inc. on January 22, 2013, providing a 10 -year property tax rebate on new taxable improvements that will be made as part of a $16.3 million expansion that will add 9,000 square foot of production space and at least ten jobs at their location on 2350 Kerper Boulevard. Rousselot, Inc., with 13 gelatin producing plants worldwide, recently underwent corporate restructuring that changed the name of their Dubuque operation to Rousselot Dubuque Inc., which is a subsidiary of Rousselot, Inc., a Delaware company with corporate offices in Mukwonago, Wisconsin. However the Development Agreement erroneously identifies Rousselot, Inc. as the developer and incorrectly states that it is a Wisconsin company. DISCUSSION The proposed Amendment would change the name of the developer from Rousselot, Inc. to Rousselot Dubuque Inc. and would correctly identify the company as a Delaware Corporation. Additionally, the Amendment would delay the start of the minimum improvements until March 1, 2013 in order to allow Rousselot representatives the time to complete the appropriate exhibits associated with the agreement. RECOMMENDATION I recommend that the City Council approve the attached 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 \Rousselot \20130211 First Amendment Rousselot DA Council memo.docx RESOLUTION NO. 47 -13 APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND ROUSSELOT, INC. Whereas, the City of Dubuque, Iowa (City) and Rousselot Dubuque Inc. entered into a Development Agreement (the Development Agreement) dated for reference purposes the 22nd day of January, 2013; and Whereas, the Development Agreement erroneously named Rousselot, Inc. as the Developer, and the correct name of the Developer is Rousselot Dubuque Inc.; and Whereas, City and Rousselot, Inc. now desire to amend the Development Agreement as set forth in the attached First Amendment to Development Agreement attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: 1. The First Amendment to Development Agreement attached hereto is hereby approved. 2. The Mayor is hereby authorized and directed to sign the First Amendment to Development Agreement. Passed, approved and adopted this 18th day of Februar , 2013. Roy D. 'j oI, Mayor Attest: Key S. Firnstah , City Clerk 021113baI 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 between the City of Dubuque, Iowa, and Rousselot Dubuque Inc., was made regarding the following described premises: Lot 1A, Lot 2A, Lot 1 -2 and Lot 1 -2 -2 all in Block 6, River Front Subdivision No. 3 in the City of Dubuque, Iowa The Development Agreement is dated for reference purposes the 22nd day of January, 2013, and contains covenants, conditions, and restrictions concerning the said premises. The Development Agreement incorrectly named Rousselot, Inc. as the Developer and was amended by the First Amendment dated the day of 2013, which corrects the name of the Developer to Rousselot Dubuque Inc. 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 , 2013. CITY OF DU By: By: UQUE, IOWA ROUSSELOT DUBUQUE INC. Roy ol, Mayor Key . Firnstahl, ity C erk 021113bal By: STATE OF IOWA ss: DUBUQUE COUNTY On this 18th day of February, 2013, 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 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 City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. Notary Public, She of Iowa STATE OF IOWA ss: DUBUQUE COUNTY PAMELA J. RAcCAR- Commission Number 772419 My Comm. Exp..!y_51 -2oj On this day of , 20 , before me, a Notary Public in and for the State of Iowa, in and for said county, personally appeared Bob Kral! to me personally known, who being by me duly sworn did say that he is the Plant Manager of Rousselot Dubuque Inc., and that said instrument was signed on behalf of said company by authority of its members and that they acknowledged the execution of this instrument to be'the voluntary act and deed of said company by it voluntarily executed. Notary Public, State of Iowa 2 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND ROUSSELOT, INC. This First Amendment to Development Agreement is dated for reference purposes the day of February, 2013. Whereas, Rousselot Dubuque Inc., represented by its General Manager Robert Kral!, and the City of Dubuque, Iowa (City) entered into a Development Agreement (the Development Agreement) dated for reference purposes the 22nd day of January, 2013; and Whereas, the Development Agreement erroneously identifies Rousselot, Inc., a Delaware corporation with offices in Mukwonago, Wisconsin, as Developer instead of its subsidiary, Rousselot Dubuque Inc., the Delaware corporation that owns and operates the facility at 2350 Kerper Boulevard, Dubuque, Iowa, which is the subject of the Development Agreement; and Whereas, City and Rousselot, Inc. now desire to amend the Development Agreement to correct such error and to make such further changes as are set forth herein. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. All references in the Development Agreement to Developer shall mean and refer to Rousselot Dubuque Inc., a Delaware corporation. The parties to the Development Agreement acknowledge and agree that the identification of Developer as "Rousselot, Inc., a Wisconsin corporation," was a clerical error. 2. Section 1.3 of the Development Agreement is hereby amended to read as follows: 1.3 Timing of Improvements. Developer hereby agrees that construction of the Minimum Improvements on the Property shall be commenced on or before March 1, 2013, and shall be substantially completed by December 1, 2016. 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 021113ba1 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. 3. All other terms and conditions of the Development Agreement will remain in full force and effect. CITY OF DUBUQUE, IOWA ROUSSELOT INC. By: By: Roy D. ol, Mayor 7/KVAII9W Ke in S. Firnstahl, C"Therk By: Steven Smith CFO IN WITNESS WHEREOF, the undersigned, hereby consents to this First Amendment to the Development Agreement, and agrees that it is the Developer under the Development Agreement. ROUSSELOT DUBUQUE INC. By: Robert Kral! General Manager 2