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Kunkel Bounds & Ass Develop Agree Technology Park D~~~E ~ck~ MEMORANDUM June 14,2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Expansion of Kunkel Bounds & Associates, Inc. at the Dubuque Technology Park Economic Development Director Dave Heiar is recommending approval of a Development Agreement with Kunkel Bounds and Associates. They key elements of the agreement are as follows: · Kunkel Bounds will be acquiring 7.69 acres in the Dubuque Technology Park. Of the 7.69 acres, 2.58 acres is considered non-useable because of terrain and other issues. · Kunkel Bounds will build a building of not less than 9,800 square feet, costing approximately $1 million. · Kunkel Bounds must hire 24 new full-time equivalent employees within 36 months, counting existing employees moving here from Wisconsin. · An acquisition grant to the developer reduces the cost of the 5.11 acres to $39,250 per acre. · The company will receive a 10-year property tax rebate. · Failure to create the 24 jobs and maintain them in years four through ten of this agreement would result in an annual pro-rated payment to the City for the property tax rebate. · Failure to maintain the 24 jobs at the end of the ten year term of this agreement will require a pro-rated repayment of the acquisition grant. · Approximately 1.56 acres of the property is identified for future expansion. If the expansion does not occur within ten years, the company must sell that portion of the land back to the City or pay the City full price for that portion of the property. I concur with the recommendation and respectfully request Mayor and City Council approval. , ~' /] ,I t' , ' //, / / I,' ~ j 71./ J Lcl.] ,tvL1..-~ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM June12,2006 TO: FROM: Michael Van Milligen, City Manager David J. Heiar, Economic Development Director SUBJECT: Expansion of Kunkel Bounds & Associates, Inc. at the Dubuque Technology Park INTRODUCTION This memorandum presents for City Council consideration a Resolution approving disposition of approximately 7.69 acres identified on the attached exhibit to Kunkel Bounds & Associates, Inc., who will be constructing a 9,800 square foot office building. A public hearing on the disposition ofthis property has been settor June 19, 2006 BACKGROUND On June 5, the City Council was presented with the attached memorandum recommending that a public hearing be set for June 19 on the proposed disposition of the above described property to Kunkel Bounds and Associates, Inc. to facilitate the construction of a 9,800 square foot home office complex for Kunkel Bounds and Associates, Inc. The Council received the memorandum and set the matter for hearing. DISCUSSION The proposed Development Agreement provides for several incentives to encourage this relocation and expansion. An Acquisition Grant reduces the asking price of the land from $78,500/acre to $39,250/acre. Due to steep slopes associated with the proposed site, only 5.11 acres of the 7.69 acre site are buildable. Kunkel Bounds & Associates, Inc. will not be charged for the 2.58 acres of non-buildable area. A 1 O-year tax rebate has been offered to the company to assist in their expansion and relocation. The rebate is a form of tax increment financing without issuing a tax increment finance bond to loan monies to the company upfront. As the company pays its future tax obligation on the new improvements, the City will rebate100% (minus debt service and the School District Physical Plant and Equipment Levy) of the new TIF increment for 10 years. The attached Development Agreement establishes the terms of the sale of the property to Kunkel Bounds & Associates, Inc. The key elements of the agreement include the following: 1) The purchase price is $78,500 per acre for 5.11 acres. Failure to maintain the 24 jobs at the end of the 10 year term of this agreement will require a pro-rated repayment of this acquisition grant. An Acquisition Grant to the developer reduces the cost to $39,250 per acre. An additional 2.58 acres included with this site are considered non-useable due to the steep terrain and other issues. 2) The property will be conveyed on or before August 15, 2006. 3) The company must construct a building of not less than 9,800 square feet, costing approximately $1,000,000. 4) Approximately 1.56 acres of buildable area on this site is identified for future expansion. If such expansion does not occur, a portion of this acquisition grant will need to be repaid to the City, or sold back to the City at the price the developer paid the City ($39,250Iacre). 5) Kunkel Bounds & Associates, Inc. must create 24 new full-time equivalent employees in the City of Dubuque within the first 36 months of operation which include some positions relocated from Wisconsin. These jobs must be retained for 7 additional years after the initial 36 months. 6) The company will receive a 10-year TIF in the form of a yearly tax rebate on the value ofthe assessable improvements. Failure to create the 24 jobs associated with this project will result in a pro-rated reduction of the TIF rebate. Additional terms and conditions of the disposition of the property are included within the attached Development Agreement. RECOMMENDATION I recommend that the City Council approve the disposition of the Dubuque Technology Park property to Kunkel Bounds & Associates, Inc. for the purpose of constructing a 9,800 sq. ft. office building. This action supports the Council's objectives to assist business expansion and to create new jobs. ACTION STEP The action step for the City Council is to adopt the attached Resolution. F:\USERS\DHeiar\KunkeIBounds\Expansion of Kunkel Bounds at Tech Park dispo memo. doc ----- RESOLUTION NO. RESOLUTION APPROVING A DEVELOPMENT AGREEMENT PROVIDING FOR THE SALE OF LOT 6 BLOCK 2 DUBUQUE TECHNOLOGY PARK IN THE CITY OF DUBUQUE,IOWA, TO KUNKEL BOUNDS & ASSOCIATES, INC. Whereas, the City Council, by Resolution No. 214-06, dated June 5, 2006, declared its intent to enter into a Development Agreement with Kunkel Bounds & Associates, Inc. for the sale of Lot 6 Block 2 Dubuque Technology Park (the Property); and Whereas, pursuant to published notice, a public hearing was held on the proposed disposition on June 19, 2006 at 6:30 p.m. at the Carnegie-Stout Public Library Auditorium, 360 W. 11th Street, Dubuque, Iowa.; and Whereas, it is the determination of the City Council that approval of the Development Agreement for the sale to and development of the Property by Kunkel Bounds & Associates, Inc. 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 attached Development Agreement by and between the City of Dubuque and Kunkel Bounds & Associates, Inc. for the sale of the Property is hereby approved. Section 2. That the Mayor is hereby authorized and directed to execute the Development Agreement on behalf of the City and City Clerk is authorized and directed to attest to his signature. Section 3. That the Mayor and City Clerk are hereby authorized and directed to execute and deliver a Special Warranty Deed for the Property as provided in the Development Agreement. Section 4. 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 June, 2006. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk F;\USERS\OHeiar\KunkeIBounds\Kunkel Bounds final disposition res.doc DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE AND KUNKEL BOUNDS & ASSOCIATES, INC. This Agreement, dated for reference purposes the _ day of , 2006, by and between the City of Dubuque, Iowa, a municipality (City), established pursuant to the Iowa Code and acting under authorization of Iowa Code Chapter 403, as amended (Urban Renewal Act), and Kunkel Bounds and Associates, Inc., with its principal place of business at Mineral Point, Wisconsin (Developer). WHEREAS, in furtherance of the objectives of the Urban Renewal Act, City has undertaken an Urban Renewal project (the Project) to advance the community's ongoing economic development efforts; and WHEREAS, the Project is located within the Dubuque Industrial Center South Economic Development District (the Project Area); and WHEREAS, as of the date of this Agreement there has been prepared and approved by City an Urban Renewal Plan for the Project Area consisting of the Urban Renewal Plan for the Dubuque Industrial Center South Economic Development District, approved by the City Council of City on April 7, 1997, and as subsequently amended through and including the date hereof, (as amended, attached hereto as Exhibit A)(the Urban Renewal Plan); and WHEREAS, a copy of the Urban Renewal Plan, as constituted on the date of this Agreement and in the form attached hereto, has been recorded among the land records in the office of the Recorder of Dubuque County, Iowa; and WHEREAS, Developer has determined that it requires new office space to maintain and expand its operations and employment in the Project Area; and WHEREAS, Developer represents that the new office space is the home office for a multistate business as provided in Iowa Code S 403.8(2); and WHEREAS, Developer has requested that City sell to Developer approximately 7.87 acres, legally described as Lot 6 Block 2 Dubuque Technology Park in the City of Dubuque, Iowa, according to the recorded plat thereof identified on Exhibit B, attached, in the City of Dubuque, Dubuque County, Iowa, together with all easements, tenements, hereditaments, and appurtenances belonging thereto (the Property), so that Developer may develop the Property, located in the Project Area, for the construction, use and occupancy of an office building with appurtenant uses which City has determined and represented to Developer is in accordance with the uses specified in the Urban Renewal Plan and in accordance with this Agreement; and WHEREAS, City believes that the development of the Property pursuant to this Agreement, and the fulfillment generally of this Agreement, are in the vital and best interests of City and in accord with the public purposes and provisions of the applicable federal, state and local laws and the requirements under which the Project has been undertaken and is being assisted. NOW THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: SECTION 1. CONVEYANCE OF PROPERTY TO DEVELOPER 1.1 Purchase Price. The purchase price for the Property (the Purchase Price) shall be the sum of seventy eight thousand, five hundred Dollars ($78,500.00) per acre based on the buildable acres only which the parties agree is 5.11 acres (total acreage is 7.69 acres), which shall be due and payable by Developer in immediately available funds in favor of City, on or before August 15, 2006, or on such other date as the parties may mutually agree (the Closing Date). 1.2 Title to Be Delivered. City agrees to convey good and marketable fee simple title in the Property to Developer subject only to easements, restrictions, conditions and covenants of record as of the date hereof to the extent not objected to by Developer as set forth in this Agreement, and to the conditions subsequent set forth in Section 5.3, below: (1) City, at its sole cost and expense, shall deliver to Developer an abstract of title to the Property continued through the date of this Agreement reflecting merchantable title in City in conformity with this Agreement and applicable state law. The abstract shall be delivered together with full copies of any and all encumbrances and matters of record applicable to the Property, and such abstract shall become the property of Developer when the Purchase Price is paid in full in the manner as aforesaid. (2) Developer shall have until time of the Closing Date to render objections to title, including any easements or other encumbrances not satisfactory to Developer, in writing to City. Developer agrees, however, to review the Abstract promptly following Developer's receipt of Developer's land survey and the Abstract and to promptly provide City with any objections to title identified therein. Nothing herein shall be deemed to limit Developer's rights to raise new title objections with respect to matters revealed in any subsequent title examinations and surveys and which were not identified in the Abstract provided by the City. City shall promptly exercise its best efforts 2 to have such title objections removed or satisfied and shall advise Developer of intended action within ten (10) days of such action. If City shall fail to have such objections removed as of the Closing Date, or any extension thereof consented to by Developer, Developer may, at its sole discretion, either (a) terminate this Agreement without any liability on its part, and any sums previously paid to City by Developer (or paid into escrow for City's benefit) shall be returned to Developer with interest, or (b) take title subject to such objections. City agrees to use its best reasonable efforts to promptly satisfy any such objections. 1.3 Riqhts of Inspection. Testinq and Review. Developer, its counsel, accountants, agents and other representatives, shall have full and continuing access to the Property and all parts thereof, upon reasonable notice to City. Developer and its agent and representatives shall also have the right to enter upon Property at any time after the execution and delivery hereof for any purpose whatsoever, including inspecting, surveying, engineering, test boring, performance of environmental tests, provided that Developer shall hold City harmless and fully indemnify City against any damage, claim, liability or cause of action arising from or caused by the actions of Developer, its agents, or representatives upon the Property (except for any damage, claim, liability or cause of action arising from conditions existing prior to any such entry upon the Property), and shall have the further right to make such inquiries of governmental agencies and utility companies, and to make such feasibility studies and analyses as it considers appropriate. 1.4 Representations and Warranties of City. In order to induce Developer to enter into this Agreement and purchase the Property, City hereby represents and warrants to Developer that to the best of City's knowledge: (1) There is no action, suit or proceeding pending, or to the best of City's knowledge, threatened against City which might result in any adverse change in the Property being conveyed or the possession, use or enjoyment thereof by Developer, including, but not limited to, any action in condemnation, eminent domain or public taking. (2) 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. (3) All leases, contracts, licenses, and permits between City and third parties in connection with the maintenance, use, and operation of the 3 Property have been provided to Developer and City has provided true and correct copies of all such documents to Developer. (4) City has good and marketable fee simple title interest to the Property. (5) The Property has a permanent right of ingress or egress to a public roadway for the use and enjoyment of the Property. (6) There are no notices, orders, suits, judgments or other proceedings relating to fire, building, zoning, air pollution, health violations or other matters that have not been corrected. City has notified Developer in writing of any past notices, orders, suits, judgments or other proceedings relating to fire, building, zoning, air pollution or health violations as they relate to the Property of which it has actual notice. The Property is in material compliance with all applicable zoning, fire, building, and health statutes, ordinances, and regulations. (7) Payment has been made for all labor or materials that have been furnished to the Property or will be made prior to the Closing Date so that no lien for labor performed or materials furnished can be asserted against the Property. (8) The Property will as of the Closing Date be free and clear of all liens, security interests, and encumbrances. (9) The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement do not and shall not result in any material breach of any terms or conditions of any mortgage, bond, indenture, agreement, contract, license, or other instrument or obligation to which City is a party or by which either the City or the Property being conveyed are bound, nor shall the execution, delivery and performance of this Agreement violate any statute, regulation, judgment, writ, injunction or decree of any court threatened or entered in a proceeding or action in which City may be bound or to which either City or the Property being conveyed may be subject. (10) 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 C. 4 (11) The Property is free and clear of any occupants, and no party has a lease to or other occupancy or contract right in the Property that shall in anyway be binding upon the Property or Developer. (12) City represents and warrants that any fees or other compensation which may be owed to a broker engaged directly or indirectly by City in connection with the purchase and sale contemplated in this Agreement are the sole responsibility and obligation of City and that City will indemnify Developer and hold Developer harmless from any and all claims asserted by any broker engaged directly or indirectly by City for any fees or other compensation related to the subject matter of this Agreement. (13) City shall exercise its best efforts to cooperate with Developer in the development process. (14) City shall exercise its best efforts to resolve any disputes arising during the development process in a reasonable and prompt fashion. (15) With respect to the period during which City has owned or occupied the Property, and to City's knowledge after reasonable investigation with respect to the time before City owned or occupied the Property, no person or entity has caused or permitted materials to be stored, deposited, treated, recycled, or disposed of on, under or at the Property, which materials, if known to be present, would require cleanup, removal or some other remedial action under environmental laws. (16) 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. 1.5 Conditions to Closina. 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 1.4 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. (2) Title to the Property shall be in the condition warranted in Section 1.4. (3) Developer, in its sole and absolute discretion, having completed and approved of any inspections done by Developer hereunder. 5 (4) Developer having obtained any and all necessary governmental approvals, including without limitations approval of zoning, subdivision or platting which might be necessary or desirable in connection with the sale and transfer and development of the Property. Any conditions imposed as a part of the zoning, platting or subdivision must be satisfactory to Developer, in its sole opinion. City shall cooperate with Developer in attempting to obtain any such approvals and shall execute any documents necessary for this purpose, provided that City shall bear no expense in connection therewith. In connection therewith, the City agrees (a) to review all of Developer's plans and specifications for the project and to either reject or approve the same in a prompt and timely fashion; (b) to issue a written notification to Developer, following City's approval of same, indicating that the City has approved such plans and specifications, and that the same are in compliance with the Urban Renewal Plan, this Agreement and any other applicable City or affiliated agency requirements, with the understanding that Developer and its lenders shall have the right to rely upon the same in proceeding with the project; (c) to identify in writing within ten (10) working days of submission of said plans and specifications, any and all permits, approvals and consents that are legally required for the acquisition of the Property by Developer, and the construction, use and occupancy of the project with the intent and understanding that Developer and its lenders and attorneys will rely upon same in establishing their agreement and time frames for construction, use and occupancy, lending on the project and issuing legal opinions in connection therewith; and (d) to cooperate fully with Developer to streamline and facilitate the obtaining of such permits, approvals and consents. (5) City having completed all required notice to or prior approval, consent or permission of any federal, state or municipal or local governmental agency, body, board or official to the sale of the Property; and consummation of the closing by City shall be deemed a representation and warranty that it has obtained the same. (6) Developer and City shall be in material compliance with all the terms and provisions of this Agreement. (7) 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 such party's financial ability as in the reasonable judgment of City is required. 6 (8) Receipt of an opinion of counsel to Developer in the form attached hereto as Exhibit D. (9) 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 to the full satisfaction of such party in such party's sole and unfettered discretion. Upon the giving of notice of termination by such terminating party to the other parties to this Agreement, this Agreement shall be deemed null and void. 1.6 Closina. The closing of the purchase and sale shall take place on the Closing Date. Exclusive possession of the Property shall be delivered on the Closing Date, in its current condition and in compliance with this Agreement, including City's representations and warranties regarding the same. 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. 1.7 Citv's Obliaations at Closina. At or prior to the Closing Date, City shall: (1) Deliver to Developer City's duly recordable Special Warranty Deed to the Property (in the form attached hereto as Exhibit E (Deed) conveying to Developer marketable fee simple title to the Property and all rights appurtenant thereto, subject only to easements, restrictions, conditions and covenants of record as of the date hereof and not objected to by Developer as set forth in this Agreement, and to the conditions subsequent set forth in Section 5.3 below. (2) Deliver to Developer the Abstract of Title to the Property. (3) Deliver to Developer such other documents as may be required by this Agreement, all in a form satisfactory to Developer. 1.8 Deliverv of Purchase Price: Obliaations At Closina. At closing, and subject to the terms, conditions, and provisions hereof and the performance by City of its obligations as set forth herein, Developer shall pay the Purchase Price to City pursuant to Section 1.1 hereof, but subject to Developer receiving an offsetting credit pursuant to Section 3.1 below. 1.9 Closina Costs. The following costs and expenses shall be paid in connection with the closing: (1 ) City shall pay: 7 (a) The transfer fee, if any, imposed on the conveyance. (b) A pro-rata portion of all taxes, if any, as provided in Section 1.10. (c) All special assessments, if any, whether levied, pending or assessed. (d) City's attorney's fees, if any. (e) City's broker and/or real estate commissions and fees, if any. (f) The cost of recording the satisfaction of any existing mortgage and any other document necessary to make title marketable. (2) Developer shall pay the following costs in connection with the closing: (a) The recording fee necessary to record the Deed. (b) Developer's attorney's fees. (c) Developer's broker and/or real estate commissions and fees, if any. (d) A pro-rata portion of all taxes as provided in Section 1.10. 1.10 Real Estate Taxes. City shall pay all real estate taxes for all fiscal years that end prior to the Closing Date. Real estate taxes for the fiscal year in which the Closing Date occurs shall be prorated between City and Developer to the Closing Date on the basis of a 365-day calendar year. Developer shall payor cause to be paid all real estate taxes due in subsequent fiscal years. Any proration of real estate taxes on the Property shall be based upon such taxes for the year currently payable. SECTION 2. DEVELOPMENT ACTIVITIES 2.1 Reauired Minimum Imorovements. City acknowledges that Developer is building a commercial office building on the Property. Specifically, Developer is charged with constructing the building and certain internal systems thereto, and with finishing the building including, without limitation, all interior improvements (the Minimum Improvements); all as more particularly depicted and described on the plans and specifications to be delivered to and approved by City as contemplated in this Agreement. Developer hereby agrees to construct on the Property an office facility of not less than nine thousand eight hundred (9800) square feet of floor 8 space along with necessary sitework as contemplated in this Agreement at a cost of approximately $1 ,000,000.00. 2.2 Plans for Construction of Minimum Improvements. Plans and specifications with respect to the development of Property and the construction of 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. 2.3 Timina of Improvements. Developer hereby agrees that construction of Minimum Improvements on the Property shall be commenced within three (3) months after the Closing Date, and shall be substantially completed by June 30, 2007. 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. Employer acknowledges that 2.68 acres of the Property as shown on Exhibit B is intended as an expansion area, of which 1.56 acres are buildable. If such buildable expansion area is not developed within ten years from the date of this Agreement with improvement substantially similar to the Minimum Improvements, Developer shall pay to City within thirty days of such date the Acquisition Grant for such part of the buildable expansion area not so improved ($39,250.00 x number of acres not so improved), or at Developer's option, re-convey the entire expansion area free and clear of all liens and encumbrances to City for $39,250.00 per acre. Such ten- year period shall run from the date of the latest improvement to the Property which is substantially similar to the Minimum Improvements. 2.4 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 9 Agreement and in the Deed with respect to the obligations of Developer to construct Minimum Improvements. The Certificate of Completion shall waive all rights of re-vestment of title in City as provided in Section 5.3, and the Certificate of Completion shall so state. 2.5 Developer's Lender's Cure Riahts. The parties agree that if Developer shall fail to complete the Minimum Improvements as required by this Agreement such that re-vestment of title may occur (or such that the City would have the option of exercising its re-vestment rights), then Developer's lender shall have the right, but not the obligation, to complete such Minimum Improvements. SECTION 3. CITY PARTICIPATION 3.1 Acauisition Grant to Developer. For and in consideration of Developer's obligations hereunder to construct Minimum Improvements, City agrees to make an Acquisition Grant to Developer on the Closing Date, or such other date as the parties shall mutually agree upon in writing, in the amount of thirty nine thousand, two hundred and fifty Dollars ($39,250.00) per acre. The parties agree that the Acquisition Grant shall be payable in the form of a credit favoring Developer at time of Closing with the effect of directly offsetting a portion of the purchase price obligation of Developer. 3.2 Economic Development Grant to Developer. (1) 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 the Developer, commencing November 1, 2007 and continuing until May 1, 2018 pursuant to Iowa Code Section 403.9 of the Urban Renewal Law, in amounts equal to the actual amount of tax increment revenues paid by Developer and 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). Developer recognizes and agrees that the Economic Development Grants shall be paid solely and only from the incremental taxes collected by City in respect to the Minimum Improvements, which does not include property taxes collected for the payment of bonds and interest of each taxing district, and taxes for the regular and voter-approved physical plant and equipment levy, and any other portion required to be excluded by Iowa law, and thus such incremental taxes will not include all amounts paid by Developer as 10 regular property taxes. (2) To fund the Economic Development Grants, City shall certify to the County prior to December 1 of each year, commencing December 1, 2007, its request for the available Developer Tax Increments resulting from the assessments imposed by the County as of January 1 of the following year, to be collected by City as taxes are paid during the following 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 by December, 2007, the Economic Development Grants in respect thereof would be paid to the Developer on November 1, 2008, and May 1, 2009. (3) The Economic Development Grants shall be payable from and secured solely and only by the Developer Tax Increments paid to City that, upon receipt, shall be deposited and held in a special account created for such purpose and designated as the Kunkel Bounds 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 Kunkel Bounds TIF Account to pay the Economic Development Grants, as and to the extent set forth in Section 3.2(1) 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 anyone 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 Kunkel Bounds 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. (4) City shall be free to use any and all tax increment revenues collected in respect of other properties within the Project Area, 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 Job Creation. Developer shall create twenty-four (24) full-time equivalent (2080 hours per year) employees in Dubuque, Iowa by within three (3) years from the date of this Agreement, and shall maintain those jobs during the Term of this Agreement. City acknowledges that Developer has existing employees and all 11 persons now or hereafter employed by Developer shall count against the twenty- four (24) FTE employee requirement described herein. It is agreed by the parties that Developer has no base employment in Dubuque, Iowa, as of June, 2006. In the event that the certificate provided to City under Section 4.2 hereof on July 1, 2016, discloses that Developer does not as of that date have at least twenty-four (24) FTE employees as provided hereinabove, Developer shall pay to City, promptly upon written demand therefor, an amount equal to $8,357.00 per job not created ($200,567.00 divided by 24 FTE employees). In addition, for the positions that Developer fails to create and maintain for any year during the Term of this Agreement, the semi-annual Economic Development Grants for such year under Section 3.2 shall be reduced by the percentage that the number of such positions bears to the total number of positions required to be created and maintained by this Section 4.1. 4.2 Certification. To assist City in monitoring the performance of Developer hereunder, three (3) years from the date of this Agreement, and again each year thereafter during the term of this Agreement, a duly authorized officer of Developer shall certify to City (a) the number of full time equivalent jobs employed at Property, and (b) to the effect that such officer has re-examined the terms and provisions of this Agreement and that at the date of such certificate, and during the preceding twelve (12) months, Developer is not or was not in default in the fulfillment of any of the terms and conditions of this Agreement and that no Event of Default (or event which, with the lapse of time or the giving of notice, or both, would become an Event of Default) is occurring or has occurred as of the date of such certificate or during such period, or if the signer is aware of any such default, event or Event of Default, said officer shall disclose in such statement the nature thereof, its period of existence and what action, if any, has been taken or is proposed to be taken with respect thereto. Such certificate shall be provided not later than July 1, 2009, and on July 1 of each year thereafter during the term of this Agreement. 4.3 Books and Records. During the term of this Agreement, Developer shall keep at all times 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 Prooertv Taxes. From and after the Closing Date, 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 unless Developer's obligations have been assumed by another person pursuant to the provisions of this Agreement. 4.5 No Other Exemotions. During the term of this Agreement, Developer agrees not to apply for any other state or local property tax exemptions which are available 12 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. 4.6 Insurance Reauirements. (1) Developer shall provide and maintain or cause to be maintained at all times during the process of constructing the Minimum Improvements (and, from time to time at the request of City, furnish City with proof of insurance in the form of a certificate of insurance for each insurance policy): (a) All risk builder's risk insurance, written on a Completed Value Form in an amount equal to one hundred percent (100%) of the replacement value when construction is completed; (b) Insurance as set forth in the attached Insurance Schedule. (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 (and from time to time at the request of City shall fumish proof of insurance in the form of a certificate of insurance) insurance as follows: (a) All risk property insurance against loss and/or damage to Minimum Improvements under an insurance policy written in an amount not less than the full insurable replacement value of Minimum Improvements. The term "replacement value" shall mean the actual replacement cost of the 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. (3) Developer shall notify City immediately in the case of damage exceeding $500,000.00 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 13 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 Prooertv. 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. Nothing in this Agreement, however, shall be deemed to alter any agreements between Developer or any other party including, without limitation, any agreements between the parties regarding the care and maintenance of the Property. 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, 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-Transferabilitv. Until such time as the Minimum Improvements are complete (as certified by City under Section 2.4), this Agreement may not be assigned by Developer nor may the Property be transferred by Developer to another party without the prior written consent of City, which shall not be unreasonably withheld. Thereafter, 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. Notwithstanding the foregoing, City hereby consents to Developer assigning this Agreement to an entity in which Developer, or its existing shareholders, own a majority interest. 4.11 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: 14 (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 office building 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, 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). 4.12 Release and Indemnification Covenants. (1) Developer releases City and the governing body members, officers, agents, servants and employees thereof (hereinafter, for purposes of this Section, the Indemnified Parties) from, covenants and agrees that the Indemnified Parties shall not be liable for, and agrees to indemnify, defend and hold harmless the Indemnified Parties against, any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements. (2) Except for any gross negligence, willful misrepresentation or any willful or wanton misconduct or any unlawful act of the Indemnified Parties, Developer agrees to protect and defend the Indemnified Parties, now or forever, and further agrees to hold the Indemnified Parties harmless, from any claim, demand, suit, action or other proceedings whatsoever by any person or entity whatsoever arising or purportedly arising from (1) any violation of any agreement or condition of this Agreement (except with respect to any suit, action, demand or other proceeding brought by Developer against City based on an alleged breach of any representation, warranty or covenant of City under this Agreement and/or to enforce its rights under this Agreement) or (2) the acquisition, construction, installation, ownership, and operation of the Minimum Improvements or (3) the condition of the Property and any hazardous substance or environmental contamination located in or on the Property, occurring after Developer takes possession of the Property. (3) The Indemnified Parties shall not be liable to Developer for any damage or injury to the persons or property of Developer or its officers, 15 agents, servants or employees or any other person who may be on, in or about the Minimum Improvements due to any act of negligence of any person, other than any act of negligence on the part of any such Indemnified Party or its officers, agents, servants or employees. (4) All covenants, stipulations, promises, agreements and obligations of City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of City, and not of any governing body member, officer, agent, servant or employee of City in the individual capacity thereof. (5) The provisions of this Section shall survive the termination of this Agreement. 4.13 ComDliance 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 which 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, anyone or more of the following events: (1) Failure by Developer to payor 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 bv DeveloDer. Whenever any Event of Default referred to in Section 5.1 of this Agreement occurs and is continuing, City, as specified below, may take anyone or more of the following actions after the giving of written 16 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 within sixty (60) days following such notice, or if the Event of Default cannot be cured within sixty (60) days and Developer does not provide 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 defaulting party deemed adequate by City, that the defaulting party 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 amounts expended by City in connection with the funding of the Acquisition Grant to Developer, and City may take any action, including any legal action it deems necessary, to recover such amounts from the defaulting party; (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 Re-Vestina Title in Citv Uoon Haooenina of Event Subseauent to Convevance to Develooer. In the event that subsequent to conveyance of the Property to Developer by City and prior to receipt by Developer of the Certificate of Completion, but subject to the terms of the mortgage granted by Developer to secure a loan obtained by Developer from a commercial lender or other financial institution to fund the acquisition of Property or construction of the Minimum Improvements, (First Mortgage) an Event of Default under Section 5.1 of this Agreement occurs and is not cured within the times specified in Section 5.2, then City shall have the right to re-enter and take possession of the Property and any portion of the Minimum Improvements thereon and to terminate (and re-vest in City pursuant to the provisions of this Section 5.3 subject only to any superior rights in any holder of the First Mortgage) the estate conveyed by City to Developer, it being the intent of this provision, together with other provisions of this Agreement, that the conveyance of the Property to Developer shall be made upon the condition that (and the Deed shall contain a condition subsequent to the effect that), in the event of default under Section 5.1 on the part of Developer and failure on the part of Developer to cure such default within the period and in the manner stated herein, City may declare a termination in favor of City of the title and of all Developer's rights and interests in and to Property conveyed to Developer, and that such title 17 and all rights and interests of Developer, and any assigns or successors in interests of Developer, and any assigns or successors in interest to and in Property, shall revert to City (subject to the provisions of Section 5.3 of this Agreement), but only if the events stated in Section 5.1 of this Agreement have not been cured within the time period provided above, or, if the events cannot be cured within such time periods, Developer does not provide assurance to City, reasonably satisfactory to City, that the events will be cured as soon as reasonably possible. Notwithstanding the foregoing, however, City agrees to execute a Subordination Agreement in favor of Developer's first mortgage lender, in a form reasonably acceptable to City and to Developer's first mortgage lender. 5.4 Resale of Reacquired Propertv: Disposition of Proceeds. Upon the re- vesting in City of title to the Property as provided in Section 5.3 of this Agreement, City shall, pursuant to its responsibility under law, use its best efforts, subject to any rights or interests in such property or resale granted to any holder of a First Mortgage, to resell the Property or part thereof as soon and in such manner as City shall find feasible and consistent with the objectives of such law and of the Urban Renewal Plan to a qualified and responsible party or parties (as determined by City in its sole discretion) who will assume the obligation of making or completing the Minimum Improvements or such other improvements in their stead as shall be satisfactory to City and in accordance with the uses specified for such the Property or part thereof in the Urban Renewal Plan. Subject to any rights or interests in such property or proceeds granted to any holder of a First Mortgage upon such resale of the Property the proceeds thereof shall be applied: (1) First, to pay and discharge the First Mortgage; (2) Second, to pay the principal and interest on mortgage(s) created on the Property, or any portion thereof, or any improvements thereon, previously acquiesced in by City pursuant to this Agreement. If more than one mortgage on the Property, or any portion thereof, or any improvements thereon, has been previously acquiesced in by City pursuant to this Agreement and insufficient proceeds of the resale exist to pay the principal of, and interest on, each such mortgage in full, then such proceeds of the resale as are available shall be used to pay the principal of and interest on each such mortgage in their order of priority, or by mutual agreement of all contending parties including Developer, or by operation of law; (3) Third, to reimburse City for all allocable costs and expenses incurred by City, including but not limited to salaries of personnel, in connection with the recapture, management and resale of the Property or part thereof (but less any income derived by City from the Property or part thereof in connection with such management); any payments made or necessary to be made to discharge any encumbrances or liens (except for mortgage(s) previously acquiesced in by the City) existing on the Property or part thereof 18 at the time of revesting of title thereto in City or to discharge or prevent from attaching or bring made any subsequent encumbrances or liens due to obligations, default or acts of Developer, its successors or transferees (except with respect to such mortgage(s)), any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof, and any amounts otherwise owing to City (including water and sewer charges) by Developer and its successors or transferees; and (4) Fourth, to reimburse Developer up to the amount equal to (1) the sum of the Purchase Price paid to City for the Property and the cash actually invested by such party in making any of the Minimum Improvements on the Property, less (2) any gains or income withdrawn or made by Developer from this Agreement or the Property. 5.5 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. 5.6 No Imolied 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. 5.7 Aqreement to Pay Attorneys' Fees and Exoenses. 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. 5.8 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 19 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 any U.S. Postal Service and sent by registered or certified mail, postage prepaid, addressed as follows: If to Developer: Timothy Kunkel 203 High Street Mineral Point, Wisconsin 53565_ Phone: (608) 987-1155 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 Bindino 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 May 1, 2018 (the Termination Date). [WHEN TIF REBATES END] 6.4. Execution Bv 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 Develooment Aoreement. Developer shall promptly record a Memorandum of Development Agreement in the form attached hereto as Exhibit F in the office of the Recorder of Dubuque County, Iowa. Developer shall pay the 20 costs for so recording. 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 KUNKEL BOUNDS & ASSOCIATES, INC. By: Roy D. Buol, Mayor By: Timothy J. Kunkel, President By: Jeanne Schneider, City Clerk F:\USERS\tsteckle\Lindahl\Agreements\KunkeIBoundsDevelopmentAgreementRedline _0531 06bal.doc Last saved by Tracey Stecklein; 5/31/2006 8:51 AM 21 INSURANCE SCHEDULE A INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE CITY OF DUBUQUE 1 . All policies of insurance required hereunder shall be with an insurer authorized to do business in Iowa. All insurers shall have a rating of A or better in the current A.M. Best Rating Guide. 2. All policies of insurance shall be endorsed to provide a thirty (30) day advance notice of cancellation to the City of Dubuque, except for 10 day notice for non-payment, if cancellation is prior to the expiration date. This endorsement supersedes the standard cancellation statement on the Certificate of Insurance. 3. Developer shall furnish a signed Certificate of Insurance to the City of Dubuque, Iowa for the coverage required in Paragraph 6 below. Such certificates shall include cODies of the following policy endorsements: a) Commercial General Liability policy is primary and non-contributing. b) Commercial General Liability additional insured endorsement. c) Governmental Immunity Endorsements. 4. Each certificate shall be submitted to the contracting department of the City of Dubuque. 5. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of this agreement. 6. Developer shall be required to carry the following minimum coveragellimits or greater if required by law or other legal agreement: a) COMMERCIAL GENERAL LIABILITY General Aggregate Limit Products-Completed Operations Aggregate Limit Personal and Advertising Injury Limit Each Occurrence Limit Fire Damage Limit (anyone occurrence) Medical Payments $2,000,000 $1,000,000 $1,000,000 $1,000,000 $ 50,000 $ 5,000 This coverage shall be written on an occurrence, not a claims made form. Form CG 25 04 03 97 "Designated Location (s) General Aggregate Limit" shall be included. All deviations or exclusions from the standard ISO commercial general iiability form CG 0001, or Business Owners form BP 0002, shall be clearly identified. 22 INSURANCE SCHEDULE A (Continued) INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE CITY OF DUBUQUE Governmental Immunity Endorsement identical or equivalent to form attached. Additional Insured Requirement: The City of Dubuque, inciuding all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees and volunteers shall be named as an additional insured on General Liability Policies using ISO endorsement CG 20 26 0704 "Additional Insured - Designated Person or Organization," or it's equivalent. - See Specimen b) WORKERS' COMPENSATION & EMPLOYERS LIABILITY Statutory for Coverage A Employers Liability: Each Accident Each Employee - Disease Policy Limit - Disease $100,000 $100,000 $500,000 c) UMBRELLA EXCESS LIABILITY LIQUOR OR DRAM SHOP LIABILITY Coverage to be determined on a case by case basis by Finance Director. Completion Checklist D Certificate of Liability Insurance (2 pages) D Designated Location(s) General Aggregate Limit CG 25 04 03 97 (2 pages) D Additional Insured 20 26 07 04 D Governmental Immunities Endorsement 23 CITY OF DUBUQUE, IOWA GOVERNMENTAL IMMUNITIES ENDORSEMENT 1. Nonwaiver of Governmental Immunity. The insurance carrier expressly agrees and states that the purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time. 2. Claims Coveraoe. The insurance carrier further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible for asserting any defense of governmental immunity, and may do so at any time and shall do so upon the timely written request of the insurance carrier. 4. Non-Denial of Coveraoe. The insurance carrier shall not deny coverage under this policy and the insurance carrier shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa. No Other Chanoe in Policy. The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. SPECIMEN 24 POLIC..... NilMrWll COMMERCIAL GEIIIERAL UAB1L1TY CG 2016 0704 THIS ENDORSEMENT CHANGES THE POLICY. PL.EASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION r his el'ldCfSen1en1 rnooifi~ insurance :lfc'..lOHd Ufldttl lht!J 'ull;)'Mr)g CXJMMEcRCIAL GH'ERAlllABllITY COVERAGE PART SCHEDULE Name Of Acklitioo_l:JllfI5ured P9rwon($t Or Organization(s) Th~ r.i~y o~ Oubuque~ inclu~in9 ~l I ll~ pr€~t~n Jrn ~praint~d ()Fir.ic.ls.~ all i:s e"plo:I!:~t'~ ,.Hld \'clfJrlte~r-~~ a-I] l~S rJoardsl (,(,J1!rni ss inns. end/or auti(.or~ ti ~s and t1ei r :J:l{il"r! 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"~Ul\ll I ~;t..,: , 'III' 'I~' ..;."...." 1_!~.Q~Q!) ,'u -__".l~ P .'1 "'" ,.. ;.f ..: r) U! ,-' ;1 l_: ' <_ > .-.... 1 l':jIl1""Y. .~''*''~" A , GCH8'_'_rr. .1.rTo",~: .IR:::' l'Iy C,: 1:111 \- ...., .I'~ F^" ...~,,.....,, !'f":N';"".(l).,,-,'U:; , ~'JI' 'Il \- ':':"~,>:;' :F^., .~.~..1v'; (;~~ ~...!lury tt(~ "'.11"1:' . .fHCN 1 _ ~"'''' ':'I~~,l ~,'II;_ ~ I'I~N A..r'~";l\I ,. , ,,~t:I :;i'~IC8.E ,0,:;:; I:_U:~IU""~LU'. ~TV =:J ': :' ,I~ I ~VJ"'.!: 'M.8( r","I'.".;ll-Hlt.I.' ~.:;,-'p-:r"'~-L '''.-I~'V'l 1M N L I; ...."l!f(r"!\COW'~IIIl...'IJ"...1IIJ _n~J;$::1;'WJllurl' " .<in 11~i':1'1~ ~ 1 ~_""f-'>~:rE.R'EXC:(:,Jr,'.'E <~ I '. 'O-(,t.'a:If"'~~ ~'.~l-J~t..I. "/",,",-fo',,lo' S>.~.>J.FRoJ"'~!-lCt.r; ~..-_ Ul"="'- ); "rnM" r>T1I .' n!' '~h i ' ,r. ~""'_;l ~r.-.I~r'l i., L~=G:~'.;I L"'!I"I"'-:":lrr~ .____....... [~. :.I~~I.:;l ~..: I'.:~ll.'ll E . 100,0 l~,O !,i)(),_9 oe~l:"';:iUN:;>- ~1I.JHlj'l..LI-.iAIIU"~, ...~lft'..l"'~11 OCI Y-oONll"ta!:C In'~5t..I!..r:~r-"e;;I<.:t: ""~ HE CITY OF DUBUOUE. IS USTED AS A.~ AOCITJONAL INSURED 0hI GENERAL LIAIJrun ml Hit... uS-IN(; ISO E.NDORSE, ENl ElJi!JIf {G ZO 25 07 04 "mpTlTOrt-. INSUkEQ-DE.SICNATED PERSON OR OR(lA'IIIZl\TTOtrl'. OR Il'S EQUIVlU,NT. .l:NER:AL LIABILITY POllCY IS PRIMARY AND NON-CONTRIBlITIP\G. RJIlM CG 25 04 03 '97 "DESIGNAlED l.OCATIO'IIS'. ENERAL LIABILITY AG(iIlE(ATf LINn SKA.LL BE INCLUDED. COIJEIt'<<.NTAl TM"'IlNl 11I-~ I:..DOMS'uIE.NT IS ItKllllED. II POLlOrs SH"-LL BE (N)l)R'Sln HI f'KOilOt: 30 DAY ADVANCE NOTICE Of O\fIK[lUllON to (IT,,' OF DUBUQUE mv Of OUIlUOUE CITY HAll SO w. BTII STRrn UUHUUUt, !~ ~lOOl SHCIU.D N!YOF TItEA9O'IE oes;;:J;jlltD POl C.50" rJ.'J!:fl I 1'0 ~-r UllI:: lilt EXI'IIlATlOt~OATETI4ERS:IF.Tl-IellW.:INlONi;uR=-"II~\liIII"'" :HL tAYe 't.f;m~ 1t()'TW'-E'JI')T~rc;rlnrrAlr'tn n"" ",\I,m TO--t::U:~l. ~Jl~iI'.OI~"llI~~~l( ~~JtU,_,"K~~~~?~~.~~~X'l ALf!,,::O'W;l'1: 1Il1!1'~eN'''''''~1! ACeI'm :u 12001,'D8'l .;t;;.ACORO CORPQfUiTIOH 1988 26 IMPORT ANT If the; ct::tir'~m{: h,)IC1~ !~, :In P.DD) ]UN.AL IN~VKI:;D lrl<.: 1J1IIiqiio.;:;": 111.:~j bt~ t:f l"\!''::.~_ .:., ::.W.~lll...t'lt 1111111k; 1;:::lllh;~!I~ ~Ylf.'!'. no! confer r)~rrtl; 10 the t(,';tifk,ale IIdilO::'f ;lIli"'II1l1 ~.Jdl "'lId\:r"~III"'llli:>L If SUB~i)GI\TION I::; '....P,rvt':l), 5l.JIlff"Cl: III UIl;; tI:ioll-l~ olml ClJlHjitil:ll:'; l)[ Il.~ p.li\_l. U:-'!<l;' lJu1ici'-'" may I~Quill~ ;, 11 O::'lll),)f~lrlF.'nt l- SU[f.om.ent on :tll~ car.:ili(:<IIt: l.k.l~~ fII:I':lill:"'1 li~..111" It HI~ U:'I1 ili'.A::II.,. hold~~ ill 1'0) d ";I.I(;~ enr1l'TI\fl:rrif-'"It:,s). DISCLAIMER I he (:er:ifl.~<Jt.: of '1l~lllanf" nn Itlt'! ff'...~r3oP.- $lfle o1lns fJfnl dot::!- rKJot :.l..n:;Utllit: <.I v.)III,.ll)' Id'...~1:'11 :he ,ssung in::;url:l(:':. iilUlfQ(i~c{l repreE.p.nt~l...e or plT.>jll~r, ;lnu ltloJ l.?-IVfic;;'1M JUJu\.: 1101 lo~; il at1lflTall'lely 01 r1~!Jajv~y ,m't;"itr., ~X1f!nCl or after lne co'~rage affun:lo'J bf lilt.! V,IIII)tj": li~I~llI~I~1111 SPECIMEN ACOR[I25 lZ'J011OO1 27 rOL'GY f..lJ'1.l8[J{ COMMERCIAL GENERAL LLABILITI CG25[)40;J9r THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY DESIGNATED LOCATION(S) GENERAL AGGREGATE LIMIT COMMERCIAL GENERAL llARlllrV (:OVF~GE PART Thl!:> t:11l.X.;Il;er-'ant modifie!l ir"!'.IJr:m('P. nro'JIr!i':'rl Iln&.'( tht> klfowing: SPECIMEN SCHEDULE i""9""'Od Loca'ion(.): ,I' 0;) Cf',h.' appears. Ab~...p. irfClnnaticn required to comPlete this en~mF;nl w~1 h~ ~Ii'''''~'rl IfI tho? Decl:;;r.3tior,s: 13~ RnplC3t:it to .J"is ef1torsenEnt.) A. F-or..1I ::;.um5 ,^'h'ch the j "I9U -eo bt'!Q)ln~ l~tl",11y :::bhg~1f:d t.! f""'Y .;le. -:iamaij86. caused bot '[)(:curlBr{'~!::.' ,mdP.r ('.()VFRAGF A (SECTION Jl ,.md to- all rr.edir.al p.xpen'!oe$ cal;Seo tt,' co:> den:s under COVLHAGE C (SECTION Ii, whl{:, can be ~ttributed only to o~erdll('I1S dl 1:l sin~e rJtnit~n~tHd ~1cc:;:a1ion'. $hew, in the SC'XXIU'o .:-i)o..-e: 1. A seoarate D'.!tSlQ'ld:t:ld lOC:l,lon General A;lQfegate _ imit apol'e~ to each deSIgnated 'locatiOn'. 30:1 ~hat imit 13 P.qIAflI Ie me ....1111\;111 tJr ltle Gttlltmd A!}gregare Urn t ::ohONn in the Oecieration!l 2. TIle' Designated ~CBtion C.:.anef'l A9Gffl9",ue I III"! ,~ lh~ must .,~~ will Pdi for the sum of all dBmsges uf'lder CC'oJrR.tl.GC A, excep': dam- 8gee. because of "bodily I 01'... ry , or '.prop::rti ::l<W'n-C'l~e. r"clu:::ted ir rt:e 'product~-cvmpleted operations hal.Cm:r' ;,rt-j rOI medical expf!I"ISlF!~. under COVER4GE C reoor.Jless of the. nUrrI- t>C1 or. iii. nsu'eUli>. b. C<.aiI1lS mad.:.- <)c '':Iouih{ LcovJ' I, fJ( c. Person::; cr org.~rizR'ion~ maki~ cl:tlms l')t hrnglng' SUits. 3_ A.T! payments m~de lmdcr CO\fERAGc: A for damages or lJooe-r c: OVF RAGC C fOI mejlQU e)jJ)e1Ses. shall recuce tte [)e~lIg- nat-:.-O loo.-;.alic1'I Ge.<l;;t1d1 Ay!JldgC:lta Llrnil 10' tha: dcailJr,ated 'lOcs!lon" ~I;;h pu...men'!s Vl~fI not reojlJ'Ce the G~ner3 ,l..g~(~~'".Iif: i II1ItI :>hc:wn in thf!. r1t<f:l.':.IIi-1hnf1l;. '101 S.,3i1 they re-. dute ;:lOI' ot-'ler DeslunatO::l La:::a~ion Gerer;:d ^ggrei}ale Limit for 91V :'":;t;~r de8.1'lMt6d '1n<:ffii::tn. shown in the Sc:hroLie atJO\'e 4. The 'imi1s shown in the C-eclaraoon~ fo! Each OCcu'rc-f'(;C<. FirE Damagf'! ~I"\.i 'AedlCal b.. Pflr,,€- a:on1inue 10 apply. However. nsfeact of bei.-,g !'..ut:Jject to !he Genel'al Agyl8gal:::! lirii SIKM'f in lI'lH Dedaratbns.. !j.lJ(:h Imrts 'Nit be e.u~)l::'(.t lo lilt: '-lplJlit.<.Jtjc )m;,ig-lfrP.:"l t nr.:::;~lon Con~ral Ag9't':9,..j~ lllllil 28 B Fo! ;III SU~~I~ wlIlLl' (h~ ill~..It,d ta':v.:,mes It.g,:::lti obligi]~d tQ "3~ 09'9 cSamaq,*, c9...Jscd b~' '(Il..f..IJftoA'lCee' unctar COVERAGE A :8l:.CIIUN I), ard it: all mec ic~1 ~,~p~:<Il}:,H'" 1"~II~r.<1 h~ ~"'.r.i. U2flU; unoor CO"o/ERf'.GE C (SECTION I) ,'ihch c<.")'lf1<Jt be ::mribWP.rI on 1\' to ::::paral f.ll'lS .JL a sIr, c;le c1esi;]nate::l 'lacahcf" shO\'In ir, the &hedlJl~ <It.:O'l1:l 1" A'1\' ~rrf!n1:=t '1lflde ur>del COVERAGE A far dan.agc~ c.~ .Inde' COVERAGF C :or l1I00l:::a e:-:pense5 shall ~P,dUCE the amCtlnl 3vallatlle. unOEf 111;:1 Wr~F...1 Aggregate Llrnli eo! tl1C P!:.xJUl..:'.::;,C:..l{"ll-'b~1tU ()~lClhw'~ Ag- gle(J~t~ L nill, .....1!lI.h!'N~r ii'l Bppli::SI)!c and 2. ::ilctl paymens ~naU not r~jl..Ce OIrljf O~sjgnate(l LlX"~rKx1 Ckn<.l~-i:I! .A91dFC1d<Jtt: lj'lliL C. "'Ihf:;r, r:.:J;l'='f~!Je fur IO;':':)lltl)' 1"l11>111H:j <n.' (J Hh-:! "Pf(:>dUClf: (:ompleted op-=-r::::tione h;ll.3rrj' Ie pro- viced, ::m~' payments for o:;'Elm-aQo?s bo:f.-;':lI1;;C :>1 "tJodiy irjury..:)! 'prc.:pfrt~ dama';je" nclu.jed in Lilt' "~r(,..:tJu::::l:i;-CotnpleLec o:'er~J(ion$ h37arcf' will reduce ttJe proj\Xis-Comp4:-Hc>d Opo,l!",ll.1n~ A9~ gregala Limil c~)d nO{ rOOliCC lhe Ge"'I~r.:JI/\Q gregate LJft\lt nOt' ltle De81gf13M:::l I. :-:<.~l'ItDn (.ie;~ eral Aggrega1e Limit D. Far tho plJpo$CS 01 miS enoorse:nent :he Defi- nitions t.>eor:m I~ :';ImP.fYl~ t", 'h~ Edji1'on of .he fmlONing ::Ie"m it en "Location" t~lCens prenlses n'r'o;vng tr.e ~G1me or ccnnecbng lots, 0' rrf'!mi!':~ 'IIiD'S!? C(]r1rlCl> ~lQn Is. InteTu:Jted O'll"( l::y a s:reot TOi:ldwElf ','hJ terway ::or ngr-t-cf.'//a, of a railroad E. I he prOVl$lorS at Ilmts. (Jf ln~uran~ lS=:CTION 1I1l n-:rt ottawise mo:iified by 1his tfll..lolsC'"'t.:I\L ~hall GC.'lt'nUi'l tc app~' as .s,tipulatec SPECIMEN 29 URBAN RENEWAL PLAN Dubuque Industrial Center/South Economic Development District (Previously knowu as Site F Economic Development District) City of Dubuque, Iowa This Urban Renewal Plan provides for the development of the Dubuque Industrial Center/South Economic Development District (previously known as Site F Economic Development District). Its preparation was authorized by Resolution 46-97 of the City Council of the City of Dubuque, Iowa on January 20, 1997. The City Council adopted the Plan by Resolution 141-97 on April 7, 1997. Prepared by the Community and Economic Development Department. TABLE OF CONTENTS 31 A. INTRODUCTION Page B. OBJECTIVES Page C. DISTRJCT BOUNDARJES Page 2 D. PUBLIC PURPOSE ACTIVITIES Page 2 E. DEVELOPMENT AND REDEVELOPMENT REQUIREMENTS Page 3 F. LAND ACQUISITION AND DISPOSITION Page 4 G. FINANCING ACTIVITIES Page 5 H. STATE AND LOCAL REQUIREMENTS Page 7 I. DURATION OF APPROVED URBAN RENEWAL PLAN Page 7 J. SEVERABILITY Page 7 K. AMENDMENT OF APPROVED URBAN RENEWAL PLAN Page 8 L. ATTACHMENTS Page 8 32 URBAN RENEWAL PLAN Dubuque Industrial Center/South Economic Development District (Previously kuown as Site F Economic Development District) City of Dubuque, Iowa A. INTRODUCTION This URBAN RENEWAL PLAN (the "Plan") has been prepared to provide for the development and redevelopment of the DUBUQUE INDUSTRIAL CENTER/SOUTH ECONOMIC DEVELOPMENT DISTRICT, previously known as the Site F Economic Development District (the "District") as authorized by Resolution 46-97 of the City Council of the City of Dubuque on January 20, 1997. Its intent is to stimulate economic development activities within the District tlrrough the commitment of public actions as specified herein. To achieve this objective, the City of Dubuque shall undertake the urban renewal actions specified in this Plan, pursuant to the powers granted to it under Chapter 403 of the Iowa Code, Urban Renewal Law. B. OBJECTIVES OF THE PLAN The primary objectives of the Plan are the development and redevelopment of the District for economic development activities, primarily industrial park development, through: 1. Provision of marketable industrial development sites for the purpose of job-creating economic development activities; 2. Provision of public infrastructure improvements, including sanitary sewer, water and stormwater detention, supportive of full development of the District; 3. Provision of a safe, efficient and attractive circulation system; 4. Establishment of design standards which will assure cohesive and compatible development and redevelopment of the District; 5. Provision of public amenities that provide an aesthetically appealing environment, including open space, buffering, landscaping, water features, signage and lighting to create a distinctive and attractive setting; 6. Creation of financial incentives necessary to encourage new and existing businesses to invest in the District; and 7. Expansion of the property tax base of the District. C. DISTRICT BOUNDARIES 1 The District is located within the City of Dubuque, County of Dubuque, State of Iowa. The District shall consist of the real property legally described as follows: Lot 2-1-1 of the NE 1/4 of the SW 1/4, Lot 2 of the NE 1/4 of the SW 1/4, Lot 1-1-1 ofthe NE 1/4 of the SW 1/4, Lot 1-1-8 of the SE 1/4, and the SE 1/4 of the SW 1/4, all in Section 12, Township 88 North, Range 2 East, Fifth Principal Meridian, in Dubuque County, Iowa and any adjoining public right-of-way. The boundaries of the District are delineated on the URBAN RENEWAL DISTRICT map (Attachment A). The City of Dubuque reserves the right to modiJy the boundaries of the District at some future date. Any amendments to the Plan will be completed in accordance with Chapter 403 of the Iowa Code, Urban Renewal Law. D. PUBLIC PURPOSE ACTIVITIES To meet the OBJECTIVES of this Plan, the City of Dubuque is prepared to initiate and support development and redevelopment of the District through, among other things, the following PUBLIC PURPOSE ACTIVITIES: I. Acquisition of property for public improvements and private development; 2. Demolition and clearance of improvements not compatible with or necessary for industrial park development and all site preparation and grading required in connection with such development; 3. Improvement, installation, construction and reconstruction of streets, utilities and other improvements and rights-of-ways including but not limited to the relocation of overhead utility lines, street lights, appropriate landscaping and buffers, open space and signage; 4. Disposition of any property acquired in the District, including sale, initial leasing or retention by the City itself, at its fair value; 5. Preparation of property for development and redevelopment purposes including but not limited to activities such as appraisals and architectural and engineering studies; 6. Use of tax increment financing, loans, grants and other appropriate financial tools in support of eligible public and private development and redevelopment efforts; 7. Enforcement of applicable local, state and federal laws, codes and regulations; 8. Enforcement of established design standards in furtherance of quality development; 9. Development and implementation of a marketing program for the purpose of promoting the purchase and development of industrial sites by private businesses; 10. Coordination of the improvement of U.S. Highway 61/151 as it affects the District's access to that roadway. Public purpose activities are limited to those areas delineated on the PUBLIC PURPOSE ACTIVITY AREA map (Attachment B). 2 All public purpose activities shall be conditioned upon and shall meet the restrictions and limitations placed upon the District by the Plan. E. DEVELOPMENT AND REDEVELOPMENT REQUIREMENTS The LAND USE and PLANNING AND DESIGN CRITERIA set forth herein shall apply to any and all District properties the development and/or the redevelopment of which is assisted by the City through any of the PUBLIC PURPOSE ACTIVITIES listed above. 1. Land Use The intent of this Plan is to promote the development of corrunercial and industrial land uses within a quality industrial park setting. All uses shall be regulated by the zoning district established for the property. LAND USE maps (Attachments C 1 and C2) identifY the existing and the proposed land uses within the District. 2. Plannim! and Desil!n Criteria The planning criteria to be used to guide the physical development of the District are those standards and guidelines contained within the City of Dubuque's Zoning Ordinance and other applicable local, state and federal codes and ordinances. The proposed zoning designation will be PI Planned Industrial District as required by Section 3-5.5 of the City of Dubuque Zoning Ordinance. Development within the District will follow the Planned Unit Development regulations which require a conceptual development plan and specific design and performance standards to be approved by ordinance. F. LAND ACQUISITION AND DISPOSITION The City of Dubuque is prepared to acquire and dispose of property in support of the development and redevelopment of the District within the parameters set forth below. I. Land Acauisition The City has acquired, through contractual agreement, all property within the District for private development purposes. However, the City will acquire, through eminent domain, any property for public or private development and redevelopment purposes should it be unable to acquire land through negotiated purchase. The City also reserves the right to acquire, by negotiation or eminent domain, property rights required for the construction or reconstruction of streets and public utilities, or any other public facility or improvement. 2. Land DisDosition Publicly held land will be sold for the development of viable uses consistent with this Plan and not for purposes of speculation. Land will be disposed of in accordance with the requirements set forth in Chapter 403 of the Iowa Code, 3 Urban Renewal Law. Developers will be selected on the basis of the quality of their proposals and their ability to carry out such proposals while complying with the requirements of this Plan. Developers will be required by contractual agreement to observe the Land Use Requirements and Planning and Design Criteria of this Plan. The contract and other disposition documents will set forth the provisions, standards and criteria for achieving the objectives and requirements outlined in this Plan. 3. Relocation Reouirements The land is currently vacant; no relocation is anticipated. G. FINANCING ACTIVITIES To meet the OBJECTIVES of this Plan and to encourage the development of the District and private investment therein, the City ofDuhuque is prepared to provide financial assistance to qualified industries and businesses through the making of loans or grants under Chapter 15A of the Iowa Code and through the use of tax increment financing under Chapter 403 of the Iowa Code. I. Chapter 15A Loan or Grant The City of Dubuque has determined that the making of loans or grants of public funds to qualified industries and businesses is necessary to aid in the plaIUling, undertaking and completion of urban renewal projects authorized under this Plan within the meaning of Section 384.24(3)(q) of the Iowa Code. Accordingly, in furtherance of the objectives of this Plan, the City of Dubuque may determine to issue bonds or loan agreements, in reliance upon the authority of Section 384.24A, Section 384.24(3)(q), Section 403.12 (general obligation bonds) or Section 403.9 (tax increment bonds), for the purpose of making loans or grants of public funds to qualified businesses. Alternatively, the City may determine to use available funds for the making of such loans or grants. In determining qualifications of recipients and whether to make any such individual loans or grants, the City of Dubuque shall consider one or more of the factors set forth in Section 15A.I of the Iowa Code on a case-by-case basis. 2. Tax Increment Financint! The City of Dubuque is prepared to utilize tax increment financing as a means of financing eligible costs incurred to implement the Public Purpose Activities identified in Part D of this Plan. Bonds or loan agreements may be issued by the City under the authority of Section 403.9 of the Iowa Code (tax increment bonds) or Section 384.24A, Section 384.24(3)(q) and Section 403.12 (general obligation bonds). The City acknowledges that the use of tax increment revenues delays the ability of other local taxing bodies to realize immediately the direct tax benefits of new development in the District. The City believes, however, that the use of tax increment revenues to finance the development of new industrial land and to promote private investment in the District is necessary in the public interest to achieve the OBJECTIVES of this Plan. Without the use of this special financing tool, new investment may not otherwise occur or may occur within another jurisdiction. If new development does not take place in Dubuque, property values could stagnate and the City, County and School District may receive less taxes during the duration of this Plan than they would have if this Plan were not implemented. Tax increment financing will provide a long-term payback in overall increased tax base for the City, County and School District. The initial public investment required to generate new private investment will ultimately increase the taxable value of the District well beyond its existing base value. 4 Tax increment reimbursement may be sought for, among other things, the following costs to the extent they are incurred by the City: a. Planning and administration of the Plan; b. Construction of public infrastructure improvements and facilities within the District; c. Acquisition, installation, maintenance and replacement of public investments throughout the District including but not limited to street lights, landscaping and buffers, signage and appropriate amenities; d. Acquisition ofland and/or buildings and preparation of same for sale to private developers, including any "write down" of the sale price of the land andlor building; e. Preservation, conservation, development or redevelopment of buildings or facilities within the District to be sold or leased to qualified businesses; f. Loans or grants to qualified businesses under Chapter 15A of the Iowa Code, including debt service payments on any bonds issued to finance such loans or grants, for purposes of expanding the business or activity, or other qualifying loan programs established in support of the Plan; and g. Providing the matching share for a variety of local, state and federal grants and loans. 3. ProDosed AmouDt ofIndebtedness At this time, the extent of improvements and new development within the District is only generally known. As such, the amount and duration for use of the tax increment revenues for public improvements and/or private development can only be estimated; however, the actual use and amount of tax increment revenues to be used by the City for District activities will be determined at the time specific development is proposed. It is anticipated that the maximum amount of indebtedness which will qualifY for tax increment revenue reimbursement during the duration of this Plan, including acquisition, public improvements and private development assistance, will not exceed $6,000,000. At the time of adoption of this Plan, the City of Dubuque's current general obligation debt is $14,200,000 (a list of obligations is found as Attachment D) and the applicable constitutional debt limit is $91,286,810. H. STATE AND LOCAL REQUIREMENTS All provisions necessary to conform with state and local laws have been complied with by the City of Dubuque in the implementation of this Plan and its supporting documents. I. DURATION OF APPROVED URBAN RENEWAL PLAN This Plan shall continue in effect until terminated by the City Council; provided, however, that the collection of tax increment revenues from properties located in the District shall be limited to twenty (20) years from the calendar year following the calendar year in which the City first certifies to the County Auditor the amount of any loans, 5 advances, indebtedness or bonds which qualify for payment from the division of tax increment revenue provided for in Section 403.19 (tax increment financing) of the Iowa Code. The DEVELOPMENT AND REDEVELOPMENT REQUIREMENTS established, or as amended from time to time by the City of Dubuque Zoning Ordinance, shall remain in effect in perpetuity. J. SEVERABILITY In the event one or more provisions contained in this Plan shall be held for any reason to be invalid, illegal, unauthorized or unenforceable in any respect, such invalidity, illegality, unauthorization or unenforceability shall not affect any other provision of this Plan and this Urban Renewal Plan shall be construed and implemented as if such provision had never been contained herein. K. AMENDMENT OF APPROVED URBAN RENEWAL PLAN This Plan may be amended from time to time to respond to development opportunities. Any such amendment shall conform to the requirements of Chapter 403 of the Iowa Code. Any change effecting any property or contractual right can be effectuated only in accordance with applicable state and local law. L. ATTACHMENTS A Urban Renewal District Map B Public Purpose Activity Area Map C Land Use Maps C I Existing Land Use C2 Proposed Land Use D List of General Obligations 6 EXHIBIT B LEGAL DESCRIPTION Lot 6 Block 2 Dubuque Technology Park in the City of Dubuque, Iowa, according to the recorded plat thereof 7 I;::: ~ ("l :1: .- Z '"" 'd T' ~ ~ :=~f: r ~ ;;;;5= 2 ---.;Il ,.,....:'<.0> ~ "Ji!" ;;,:~ i ~!-, ~;;:~ .. ~ ~ ~ , "tJ...... -;;; \'" C/'- u.s. ~~WA'i e\ ~ ,Sl -------. \ - .~ . '+ ! ;; , i I- ~ ! ~ \ 11\ .. err'" I . 1 I . g 0 . . . ~ 'l;,. I .. +--- I 8 . "; I '. i ~;,":!! , ~:<:f ~ I " ! ~;~ ~~~~ I '". ! 'i - i . ------ @ ~~ //J ~I ~'4 ~, <t.' i {!" I ~ $ 'f : . ;C \~ c z ,,",, Ii! ! il il ~ ~ ~I &Iili :ql gp~1 ~i I S' "HiluS ~Jli!!!;d ~ Sa;; l'dl'"~~ I Iii ~~r;~~i I,.~ I.... · r 5 .. ~.- i ,.f !Ii i21 ! :~~ I ~Ii . . ill I i Illi It I I I: ,.i ., '~l ! it I lilli ! I . :1111 q !ill! . . "' .1 iI ~ "I .:i . ". 1111 I j. U'~ Ii ~" m i.~' il f.~' & flil flil i~ n ! ! . " ... -- . " . - . II I III Illlllii ~~ rl r~~nrl FINAL PLAT DUBUQUE TECHNOLOCY PARK DUBUQUE, IOWA ---1 ~ 't ~ 1\ I . Ii DDIftll.___u.... --- 3; ----- ~ (""l :I: ~e/t. u,s. MICI-lW,IoY 61 II. 1!51 --- _---.~ - {:IOOJ ,. \". S!L17 '~r;,.r C III d'U"s'- 11 ....., \l'UBUC AREA LOT 13 uL9l "'. . . I ii... ~ A . 1 . " -- J. . ,. . i~ .~ '........, \ n . i .. ~ . . "'" . I ;; . ~ I, " i i:_ "\. gO ~ ~ -? . ~ ! ~ ~ ~ . ~ .. ~ . n ;;3 . i i ~ I I, I! ......~ tw rl rH~~rI i ...... )"''" '^~~ - .... ~ - ! ~ -- i "_I} ,_ --....1. , . -;--: .. ~~h. IIi ~ II~ . 1m q B _--1.------ ~ Ii . I, . , -- . ..."",,' ~ ~ U","'1., 11J&.tf" .i e .. FINAl. PLAT DVaVQl,lt TtCHNOlOCY p'^RK II ,1/1 ~Iii Iii DUBUQUE, lOW... r Z ,., ~L -l ZI I"ri> ~~~ ~ i .:: ,. if~ . . , l :..--.. ....-... .:'1"1 , 12 BAR R Y A. L I N D A H L, ESQ. CITY ATTORNEY IHEiCITYOl' (. ~. L) LI3L 0IT ~ck~ (DATE) RE: Dear 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. Very sincerely, Barry A. Lindahl, Esq. City Attorney BAUls 14 Mayor and City Councilmembers Cit~ Hall 131 and Central Avenue Dubuque IA 52001 Re: Development Agreement Between the City of Dubuque, Iowa and Dear Mayor and City Council members: We have acted as counsel for , (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 limited liability company organized and existing under the laws of the State of and has full power and authority to execute, deliver and perform in full Development Agreement. 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 the 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 16 prospective), financial position or results of operations of Developer or which in any manner raises any questions affecting the validity of the Agreement or Developer's ability to perform Developer's obligations thereunder. Very truly yours, 17 Prepared by: Barry A. Lindahl 300 Main Street ,Suite 330, Dubuque IA 52001 563583-4113 Return to: Barry A. Lindahl 300 Main Street ,Suite 330, Dubuque IA 52001563583-4113 Tax Statement to: SPECIAL WARRANTY DEED KNOW ALL MEN BY THESE PRESENTS: that the City of Dubuque, Iowa, a municipal corporation of the State of Iowa (Grantor), in consideration of the Grantee named below undertaking the obligations of the Developer under the Development Agreement described below and the sum of and no/100 Dollars ($ ) in hand paid, and other good and valuable consideration, and pursuant to the authority of Chapter 403, Code of Iowa, does hereby GRANT, SELL AND CONVEY unto , an Iowa limited liability company (Grantee), the following described parcel(s) situated in the County of Dubuque, State of Iowa, to wit (the Property): This Deed is exempt from transfer tax pursuant to Iowa Code section 428A.2(6). This Deed is given pursuant to the authority of Resolution No. the City Council of the City of Dubuque adopted the _ day of 20_, the terms and conditions thereof, if any, having been fulfilled. of This Deed is being delivered in fulfillment of Grantor's obligations under and is subject to all the terms, provisions, covenants, conditions and restrictions contained in that certain Development Agreement executed by Grantor and Grantee herein, dated the _ day of , 20_ (the Agreement), a memorandum of which was recorded on the _ day of ,20_, in the records of the Recorder of Dubuque County, Iowa, Instrument Number Promptly after completion of the improvements in accordance with the 19 provIsions of the Agreement, Grantor will furnish Grantee with a Certificate of Completion in the form set forth in the Agreement. Such certification by Grantor shall be, and the certification itself shall so state, a conclusive determination of satisfaction and termination of the agreements and covenants of the Agreement and of this Deed with respect to the obligation of Grantee, and its successors and assigns, to construct improvements and the dates for the beginning and completion thereof, it being the intention of the parties that upon the granting and filing of the Certificate of Completion that all restrictions and reservations of title contained in this Deed be forever released and terminated and that any remaining obligations of Grantee pursuant to the Agreement shall be personal only. All certifications provided for herein shall be in such form as will enable them to be recorded with the County Recorder of Dubuque, Iowa. If Grantor shall refuse or fail to provide any such certification in accordance with the provisions of the Agreement and this Deed, Grantor shall, within twenty days after written request by Grantee, provide Grantee with a written statement indicating in adequate detail in what respects Grantee has failed to complete the improvements in accordance with the provisions of the Agreement or is otherwise in default, and what measures or acts will be necessary, in the opinion of Grantor, for Grantee to take or perform in order to obtain such certification. In the event that an Event of Default occurs under the Agreement and Grantee herein shall fail to cure such default within the period and in the manner stated in the Agreement, then Grantor shall have the right to re-enter and take possession of the Property and to terminate and revest in Grantor the estate conveyed by this Deed to Grantee, its assigns and successors in interest, in accordance with the terms of the Agreement. None of the provisions of the Agreement shall be deemed merged in, affected or impaired by this Deed. Grantor hereby covenants to warrant and defend the said premises against the lawful claims of all persons whomsoever claiming by, through and under it. Dated this of ,20_ at Dubuque, Iowa. CITY OF DUBUQUE IOWA Attest: By: Roy D. Buol, Mayor By: Jeanne F. Schneider, City Clerk 20 STATE OF IOWA ) ) ) SS COUNTY OF DUBUQUE On this _ day of , 20_, before me a Notary Public in and for said County, personally appeared Roy D. Buol and Jeanne F. Schneider to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Dubuque, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing 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 in and for Dubuque County, Iowa 21 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 563583-4113 MEMORANDUM OF DEVELOPMENT AGREEMENT A Development Agreement by and among the City of Dubuque, Iowa, an Iowa municipal corporation, of Dubuque, Iowa, and was made regarding the following described premises: The Development Agreement is dated for reference purposes the _ day of ,20_, 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 ,20_ CITY OF DUBUQUE, IOWA By: Roy D. Buol, Mayor 23 By: Jeanne F. Schneider, City Clerk STATE OF IOWA 55: DUBUQUE COUNTY 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 Jeanne F. Schneider, 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, State of Iowa STATE OF IOWA 55: DUBUQUE COUNTY On this _ day of , 20)), before me, a Notary Public in and for the State of Iowa, in and for said county, personally appeared to me personally known, who being by me duly sworn did say that they are the 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. 24 City \t,llhli~t'r'... ()tJilt' 30 West l.jth Stn'd DubuqUl', lllWd :5~UOI-J~h-t (5b1) 38tl-J1l0 ph1ll1l' (5h:'>) 5~9--t l.:ill (",1\ ct\'mgr/I,city~)hi 1I1)uqIJ('.~ )rg ItlEtT1YOF ( ~ L)ll)L ()iT - ~ ~~~ (DATE) Dear 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 to the best of my knowledge: 1. No action in condemnation, eminent domain or public taking proceedings are now pending or contemplated against the Property; 2. No ordinance or hearing is now or before any local governmental body which either contemplates or authorizes any public improvements or special tax levies, the cost of which may be assessed against Property; 3. City has good and marketable fee simple title interest to the Property; 4. There are no notices, orders, suits, judgments or other proceedings relating to fire, building, zoning, air pollution, health violations or other matters that have not been corrected. City has notified Developer in writing of any past notices, orders, suits, judgments or other proceedings relating to fire, building, zoning, air pollution or health violations as they relate to the Property of which it has actual notice; 5. The Property will as of the date of closing be free and clear of all liens, security interests, encumbrances; 6. 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 the time of closing 27 confirming the representation contained herein; 7. All City utilities necessary for the development and use of the Property as provided in the Agreement adjoin the Property, and McGraw-Hili shall have the right to tie into said utilities upon payment of City's connection fees; 8. The Property is free and clear of any occupants, and no party has a lease to or other occupancy or contract right in the Property which shall in anyway be binding upon Developer; 9. City shall exercise its best efforts to cooperate with Developer in the development process; 10. City shall exercise its best efforts to resolve any disputes arising during the development process in a reasonable and prompt fashion; 11. With respect to the period during which City has owned or occupied the Property, and to City's knowledge after reasonable investigation with respect to the time before City owned or occupied the Property, no person or entity has caused or permitted materials to be stored, deposited, treated, recycled, or disposed of on, under or at the Property other than as described in the environmental reports that City has provided to Developer, which materials, if known to be present, would require cleanup, removal or some other remedial action under environmental laws; 12. There are no fees or other charges payable by Developer for City utilities serving the Property, as a result of utility hook-ups, other than the fees for connecting to and installing meters with regard to such utilities; and 13. The property is properly zoned for the use described in the Agreement. Sincerely, Michael C. Van Milligen City Manager MCVM:jh 28 . Dli~~E ~ck~ t/3;S :? c; /19/0~ MEMORANDUM ~ June 1, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Expansion of Kunkel Bounds & Associates, Inc. at the Dubuque Technology Park Economic Development Director Dave Heiar is recommending that a public hearing be set for June 19, 2006 to consider a Development Agreement with Kunkel Bounds and Associates, including a 7.69 acre land sale in the Dubuque Technology Park for construction of a 9,800 square foot office building. I concur with the recommendation and respectfully request Mayor and City Council approval. /hJ/ ~~r14j Mich'ael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director ... , . CITY OF DUBUQUE, IOWA MEMORANDUM May 26, 2006 TO: FROM: SUBJECT: Michael Van Milligen, City Manager David J. Heiar, Economic Development Director~ ~1 Expansion of Kunkel Bounds & Associates, Inc. at the Dubuque Technology Park INTRODUCTION This memorandum presents for City Council consideration a Resolution initiating disposition of approximately 7.69 acres identified on the attached exhibit to Kunkel Bounds & Associates, Inc., who will be constructing a 9,800 square foot office building. The attached resolution sets a public hearing on the disposition of this property for Kunkel Bounds & Associates, Inc. BACKGROUND City staff has worked with the Greater Dubuque Development Corporation and Kunkel Bounds & Associates, Inc. on an expansion at the Dubuque Technology Park. The company plans to relocate its current business office from Wisconsin to create 24 new positions in their new Dubuque facility. DISCUSSION The proposed Development Agreement provides for several incentives to encourage this relocation and expansion. An Acquisition Grant reduces the asking price of the land from $78,500Iacre to $39,250Iacre. Due to steep slopes associated with the proposed site, only 5.11 acres of the 7.69 acre site are buildable. Kunkel Bounds & Associates, Inc. will not be charged for the 2.58 acres of non-buildable area. A 1 O-year tax rebate has been offered to the company to assist in their expansion and relocation. The rebate is a form of tax increment financing without issuing a tax increment finance bond to loan monies to the company upfront. As the company pays its future tax obligation on the new improvements, the City will rebate 1 00% (minus debt service and the School District Physical Plant and Equipment Levy) of the new TIF increment for 10 years. The attached Development Agreement establishes the terms of the sale of the property to Kunkel Bounds & Associates, Inc. The key elements of the agreement include the following: 1) The purchase price is $78,500 per acre for 5.11 acres. An Acquisition Grant to :- . the developer reduces the cost to $39,250 per acre. An additional 2.58 acres included with this site are considered non-buildable due to the steep terrain. 2) The property will be conveyed on or before August 15, 2006. 3) The company must construct a building of not less than 9,800 square feet, costing approximately $1,000,000. 4) Approximately 1.56 acres of buildable area on this site is identified for future expansion. If such expansion does not occur, a portion of this acquisition grant will need to be repaid to the City, or sold back to the City at the price the developer paid the City ($39,250/acre). 5) Kunkel Bounds & Associates, Inc. must create 24 new jobs in the City of Dubuque within the first 36 months of operation which include some positions relocated from Wisconsin. These jobs must be retained for 7 additional years after the initial 36 months. 6) The company will receive a 1 O-year TIF in the form of a yearly tax rebate on the value of the assessable improvements. Additional terms and conditions of the disposition of the property are included within the attached Development Agreement. RECOMMENDATION I recommend that the City Council set for public hearing the disposition of the Dubuque Technology Park property to Kunkel Bounds & Associates, Inc. for the purpose of constructing a 9.800 sq. ft. office building. This action supports the Council's objectives to assist business expansion and to create new jobs. ACTION STEP The action step for the City Council is to adopt the attached Resolution. F:\USERS\OHeiar\KunkeIBounds\Expansion of Kunkel Bounds at Tech Park memo.doc I3tJBUQUE TECHNOLOGY PARK I LOTS . .A.. NORTH Ul'lJATJ:ll' May /2005 LOTi BLOCK 1 4.34 BUILDASLE ACRES o AVAILABLE LOT o OCCUPIED LOT o PUBLIC AREA => ~ GreaterDubuque r u' r LOTi BLOCK 2 4.39 BUILDABLE ACRES LOT 2 BLOCK 1 LOT 2 5.05 BUILDABLE BLOCK 2 ACRES 4.77 BUILDABLE ACRES W > - it: !!! c - ..J DATA COURT '" - ~ ~ C; ~ 2i :!:: Cl LOT 9 LOTS ;: BLOCK 2 BLOCK 2 In MCLEOD USA 5.13 BUILDABLE ACRES 4.83 BUILDABLE ACRES ::l LOT 4 BLOCK 1 4.14 BUILDABLE ACRES LOTiO BLOCK 2 3.35 BUILDABLE ACRES LOTT BLOCK 2 1.53 BUILDABLE ACRES LOT 12 BLOCK 2 3.28 BUILDABLE ACRES LOT 6 BLOCK 2 5.11 BUILDABLE ACRES 300 Main Street, Suite 120, Dubuque, Iowa 52001 P: 563.557.9049 F: 563.557.1059 E: gddc@greaterdubuque.org Prepared by: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563583-4113 Return to: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563583-4113 RESOLUTION NO. 214-06 INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE AND FIXING THE DATE FOR A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA ON THE PROPOSED ISSUANCE OF URBAN RENEWAL TAX INCREMENT REVENUE OBLIGATIONS AND THE EXECUTION OF A DEVELOPMENT AGREEMENT RELATING THERETO WITH KUNKEL BOUNDS & . ASSOCIATES, INC., AND PROVIDING FOR THE PUBLICATION OF NOTICE THEREOF Whereas, the City of Dubuque, Iowa (City) is the owner of the following real property (the Property); Lot 6 Block 2 Dubuque Technology Park in the City of Dubuque, Iowa, according to the recorded plat thereof And Whereas, City and Kunkel Bounds & Associates, Inc. have entered into a Development Agreement, 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, pursuant to which City will convey the Property to Kunkel Bounds & Associates, Inc.; and Whereas, the City Council has tentatively determined that it would be in the best interests of the City to approve the Development Agreement, including the conveyance of the Property to Kunkel Bounds & Associates, Inc.; and Whereas, it is deemed necessary and advisable 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 of Dubuque intends to dispose of its interest in the foregoing- described Property by Deed to Kunkel Bounds & Associates, Inc. Section 2. The City Clerk is hereby authorized and directed to cause this Resolution and a notice to be published as prescribed by Iowa Code Section 364.7 of a public hearing on the City's intent to dispose of the foregoing-described Property, to be held on the 19th day of June, 2006, at 6:30 o'clock p.m. in the Auditorium of the Carnegie- Stout Public Library in Dubuque, Iowa, 11th & Locust, Dubuque, Iowa. Section 3. The City Council will also 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 Kunkel Bounds & Associates, Inc., 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 Dubuque Industrial Center South Economic Development District, consisting of the funding of economic developments grants to Kunkel Bounds & Associates, Inc. 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 will be $300,000 more or less. Section 4. The Clerk is hereby directed to cause at least one publication to be made of a notice of said meeting, in a newspaper, printed wholly in the English language, published at least once weekly, and having general circulation 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 5. That the notice of the proposed action to issue said obligations shall be in substantially the form attached hereto. Passed, approved and adopted this 5th day of June, 2006. ~/~~ , Attest: Ann E. Michalski, Mayor Pro-Tern eanne F. Schneider, City Clerk DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE AND KUNKEL BOUNDS & ASSOCIATES, INC. This Agreement, dated for reference purposes the _ day of , 2006, by and between the City of Dubuque, Iowa, a municipality (City), established pursuant to the Iowa Code and acting under authorization of Iowa Code Chapter 403, as amended (Urban Renewal Act), and Kunkel Bounds and Associates, Inc., with its principal place of business at Mineral Point, Wisconsin (Developer). WHEREAS, in furtherance of the objectives of the Urban Renewal Act, City has undertaken an Urban Renewal project (the Project) to advance the community's ongoing economic development efforts; and WHEREAS, the Project is located within the Dubuque Industrial Center South Economic Development District (the Project Area); and WHEREAS, as of the date of this Agreement there has been prepared and approved by City an Urban Renewal Plan for the Project Area consisting of the Urban Renewal Plan for the Dubuque Industrial Center South Economic Development District, approved by the City Council of City on April 7, 1997, and as subsequently amended through and including the date hereof, (as amended, attached hereto as Exhibit A)(the Urban Renewal Plan); and WHEREAS, a copy of the Urban Renewal Plan, as constituted on the date of this Agreement and in the form attached hereto, has been recorded among the land records in the office of the Recorder of Dubuque County, Iowa; and WHEREAS, Developer has determined that it requires new office space to maintain and expand its operations and employment in the Project Area; and WHEREAS, Developer represents that the new office space is the home office for a multistate business as provided in Iowa Code S 403.8(2); and WHEREAS, Developer has requested that City sell to Developer 7.87 acres, legally described as Lot 6 Block 2 Dubuque Technology Park in the City of Dubuque, Iowa, according to the recorded plat thereof identified on Exhibit B, attached, in the City of Dubuque, Dubuque County, Iowa, together with all easements, tenements, hereditaments, and appurtenances belonging thereto (the Property), so that Developer may develop the Property, located in the Project Area, for the construction, use and occupancy of an office building with appurtenant uses which City has determined and represented to Developer is in accordance with the uses specified in the Urban Renewal Plan and in accordance with this Agreement; and WHEREAS, City believes that the development of the Property pursuant to this Agreement, and the fulfillment generally of this Agreement, are in the vital and best interests of City and in accord with the public purposes and provisions of the applicable federal, state and local laws and the requirements under which the Project has been undertaken and is being assisted. NOW THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: SECTION 1. CONVEYANCE OF PROPERTY TO DEVELOPER 1.1 Purchase Price. The purchase price for the Property (the Purchase Price) shall be the sum of seventy eight thousand, five hundred Dollars ($78,500.00) per acre based on the buildable acres only which the parties agree is 5.22 acres (total acreage is 7.87), which shall be due and payable by Developer in immediately available funds in favor of City, on or before August 15, 2006, or on such other date as the parties may mutually agree (the Closing Date). 1.2 Title to Be Delivered. City agrees to convey good and marketable fee simple title in the Property to Developer subject only to easements, restrictions, conditions and covenants of record as of the date hereof to the extent not objected to by Developer as set forth in this Agreement, and to the conditions subsequent set forth in Section 5.3, below: (1) City, at its sole cost and expense, shall deliver to Developer an abstract of title to the Property continued through the date of this Agreement reflecting merchantable title in City in conformity with this Agreement and applicable state law. The abstract shall be delivered together with full copies of any and all encumbrances and matters of record applicable to the Property, and such abstract shall become the property of Developer when the Purchase Price is paid in full in the manner as aforesaid. (2) Developer shall have until time of the Closing Date to render objections to title, including any easements or other encumbrances not satisfactory to Developer, in writing to City. Developer agrees, however, to review the Abstract promptly following Developer's receipt of Developer's land survey and the Abstract and to promptly provide City with any objections to title identified therein. Nothing herein shall be deemed to limit Developer's rights to raise new title objections with respect to matters revealed in any subsequent title examinations and surveys and which were not identified in the Abstract provided by the City. City shall promptly exercise its best efforts 2 to have such title objections removed or satisfied and shall advise Developer of intended action within ten (10) days of such action. If City shall fail to have such objections removed as of the Closing Date, or any extension thereof consented to by Developer, Developer may, at its sole discretion, either (a) terminate this Agreement without any liability on its part, and any sums previously paid to City by Developer (or paid into escrow for City's benefit) shall be returned to Developer with interest, or (b) take title subject to such objections. City agrees to use its best reasonable efforts to promptly satisfy any such objections. 1.3 Riqhts of Insoection, Testinq and Review. Developer, its counsel, accountants, agents and other representatives, shall have full and continuing access to the Property and all parts thereof, upon reasonable notice to City. Developer and its agent and representatives shall also have the right to enter upon Property at any time after the execution and delivery hereof for any purpose whatsoever, including inspecting, surveying, engineering, test boring, performance of environmental tests, provided that Developer shall hold City harmless and fully indemnify City against any damage, claim, liability or cause of action arising from or caused by the actions of Developer, its agents, or representatives upon the Property (except for any damage, claim, liability or cause of action arising from conditions existing prior to any such entry upon the Property), and shall have the further right to make such inquiries of governmental agencies and utility companies, and to make such feasibility studies and analyses as it considers appropriate. 1.4 Reoresentations and Warranties of Citv. In order to induce Developer to enter into this Agreement and purchase the Property, City hereby represents and warrants to Developer that to the best of City's knowledge: (1) There is no action, suit or proceeding pending, or to the best of City's knowledge, threatened against City which might result in any adverse change in the Property being conveyed or the possession, use or enjoyment thereof by Developer, including, but not limited to, any action in condemnation, eminent domain or public taking. (2) 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. (3) All leases, contracts, licenses, and permits between City and third parties in connection with the maintenance, use, and operation of the 3 Property have been provided to Developer and City has provided true and correct copies of all such documents to Developer. (4) City has good and marketable fee simple title interest to the Property. (5) The Property has a permanent right of ingress or egress to a public roadway for the use and enjoyment of the Property. (6) There are no notices, orders, suits, judgments or other proceedings relating to fire, building, zoning, air pollution, health violations or other matters that have not been corrected. City has notified Developer in writing of any past notices, orders, suits, judgments or other proceedings relating to fire, building, zoning, air pollution or health violations as they relate to the Property of which it has actual notice. The Property is in material compliance with all applicable zoning, fire, building, and health statutes, ordinances, and regulations. (7) Payment has been made for all labor or materials that have been furnished to the Property or will be made prior to the Closing Date so that no lien for labor performed or materials furnished can be asserted against the Property. (8) The Property will as of the Closing Date be free and clear of all liens, security interests, and encumbrances. (9) The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement do not and shall not result in any material breach of any terms or conditions of any mortgage, bond, indenture, agreement, contract, license, or other instrument or obligation to which City is a party or by which either the City or the Property being conveyed are bound, nor shall the execution, delivery and performance of this Agreement violate any statute, regulation, judgment, writ, injunction or decree of any court threatened or entered in a proceeding or action in which City may be bound or to which either City or the Property being conveyed may be subject. (10) 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 C. 4 (11) The Property is free and clear of any occupants, and no party has a lease to or other occupancy or contract right in the Property that shall in anyway be binding upon the Property or Developer. (12) City represents and warrants that any fees or other compensation which may be owed to a broker engaged directly or indirectly by City in connection with the purchase and sale contemplated in this Agreement are the sole responsibility and obligation of City and that City will indemnify Developer and hold Developer harmless from any and all claims asserted by any broker engaged directly or indirectly by City for any fees or other compensation related to the subject matter of this Agreement. (13) City shall exercise its best efforts to cooperate with Developer in the development process. (14) City shall exercise its best efforts to resolve any disputes arising during the development process in a reasonable and prompt fashion. (15) With respect to the period during which City has owned or occupied the Property, and to City's knowledge after reasonable investigation with respect to the time before City owned or occupied the Property, no person or entity has caused or permitted materials to be stored, deposited, treated, recycled, or disposed of on, under or at the Property, which materials, if known to be present, would require cleanup, removal or some other remedial action under environmental laws. (16) 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. 1.5 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 1.4 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. (2) Title to the Property shall be in the condition warranted in Section 1.4. (3) Developer, in its sole and absolute discretion, having completed and approved of any inspections done by Developer hereunder. 5 (4) Developer having obtained any and all necessary governmental approvals, including without limitations approval of zoning, subdivision or platting which might be necessary or desirable in connection with the sale and transfer and development of the Property. Any conditions imposed as a part of the zoning, platting or subdivision must be satisfactory to Developer, in its sole opinion. City shall cooperate with Developer in attempting to obtain any such approvals and shall execute any documents necessary for this purpose, provided that City shall bear no expense in connection therewith. In connection therewith, the City agrees (a) to review all of Developer's plans and specifications for the project and to either reject or approve the same in a prompt and timely fashion; (b) to issue a written notification to Developer, following City's approval of same, indicating that the City has approved such plans and specifications, and that the same are in compliance with the Urban Renewal Plan, this Agreement and any other applicable City or affiliated agency requirements, with the understanding that Developer and its lenders shall have the right to rely upon the same in proceeding with the project; (c) to identify in writing within ten (10) working days of submission of said plans and specifications, any and all permits, approvals and consents that are legally required for the acquisition of the Property by Developer, and the construction, use and occupancy of the project with the intent and understanding that Developer and its lenders and attorneys will rely upon same in establishing their agreement and time frames for construction, use and occupancy, lending on the project and issuing legal opinions in connection therewith; and (d) to cooperate fully with Developer to streamline and facilitate the obtaining of such permits, approvals and consents. (5) City having completed all required notice to or prior approval, consent or permission of any federal, state or municipal or local governmental agency, body, board or official to the sale of the Property; and consummation of the closing by City shall be deemed a representation and warranty that it has obtained the same. (6) Developer and City shall be in material compliance with all the terms and provisions of this Agreement. (7) 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 such party's financial ability as in the reasonable judgment of City is required. 6 (8) Receipt of an opinion of counsel to Developer in the form attached hereto as Exhibit D. (9) 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 to the full satisfaction of such party in such party's sole and unfettered discretion. Upon the giving of notice of termination by such terminating party to the other parties to this Agreement, this Agreement shall be deemed null and void. 1.6 Closina. The closing of the purchase and sale shall take place on the Closing Date. Exclusive possession of the Property shall be delivered on the Closing Date, in its current condition and in compliance with this Agreement, including City's representations and warranties regarding the same. 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. 1.7 Citv's Obliaations at Closina. At or prior to the Closing Date, City shall: (1) Deliver to Developer City's duly recordable Special Warranty Deed to the Property (in the form attached hereto as Exhibit E (Deed) conveying to Developer marketable fee simple title to the Property and all rights appurtenant thereto, subject only to easements, restrictions, conditions and covenants of record as of the date hereof and not objected to by Developer as set forth in this Agreement, and to the conditions subsequent set forth in Section 5.3 below. (2) Deliver to Developer the Abstract of Title to the Property. (3) Deliver to Developer such other documents as may be required by this Agreement, all in a form satisfactory to Developer. 1.8 Delivery of Purchase Price: Obliaations At Closina. At closing, and subject to the terms, conditions, and provisions hereof and the performance by City of its obligations as set forth herein, Developer shall pay the Purchase Price to City pursuant to Section 1.1 hereof, but subject to Developer receiving an offsetting credit pursuant to Section 3.1 below. 1.9 Closina Costs. The following costs and expenses shall be paid in connection with the closing: (1) City shall pay: 7 (a) The transfer fee, if any, imposed on the conveyance. (b) A pro-rata portion of all taxes, if any, as provided in Section 1.10. (c) All special assessments, if any, whether levied, pending or assessed. (d) City's attorney's fees, if any. (e) City's broker and/or real estate commissions and fees, if any. (f) The cost of recording the satisfaction of any existing mortgage and any other document necessary to make title marketable. (2) Developer shall pay the following costs in connection with the closing: (a) The recording fee necessary to record the Deed. (b) Developer's attorney's fees. (c) Developer's broker and/or real estate commissions and fees, if any. (d) A pro-rata portion of all taxes as provided in Section 1.10. 1.10 Real Estate Taxes. City shall pay all real estate taxes for all fiscal years that end prior to the Closing Date. Real estate taxes for the fiscal year in which the Closing Date occurs shall be prorated between City and Developer to the Closing Date on the basis of a 365-day calendar year. Developer shall payor cause to be paid all real estate taxes due in subsequent fiscal years. Any proration of real estate taxes on the Property shall be based upon such taxes for the year currently payable. SECTION 2. DEVELOPMENT ACTIVITIES 2.1 Required Minimum Imorovements. City acknowledges that Developer is building a commercial office building on the Property. Specifically, Developer is charged with constructing the building and certain internal systems thereto, and with finishing the building including, without limitation, all interior improvements (the Minimum Improvements); all as more particularly depicted and described on the plans and specifications to be delivered to and approved by City as contemplated in this Agreement. Developer hereby agrees to construct on the Property an office facility of not less than nine thousand eight hundred (9800) square feet of floor 8 space along with necessary sitework as contemplated in this Agreement at a cost of approximately $1,000,000.00. 2.2 Plans for Construction of Minimum Improvements. Plans and specifications with respect to the development of Property and the construction of 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. 2.3 Timinq of Improvements. Developer hereby agrees that construction of Minimum Improvements on the Property shall be commenced within three (3) months after the Closing Date, and shall be substantially completed by June 3D, 2007. 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. Employer acknowledges that 2.68 acres of the Property as shown on Exhibit B is intended as an expansion area, of which 1.56 acres are buildable. If such buildable expansion area is not developed within ten years from the date of this Agreement with improvement substantially similar to the Minimum Improvements, Developer shall pay to City within thirty days of such date the Acquisition Grant for such part of the buildable expansion area not so improved ($39,250.00 x number of acres not so improved), or at Developer's option, re-convey the entire expansion area free and clear of all liens and encumbrances to City for $39,250.00 per acre. Such ten- year period shall run from the date of the latest improvement to the Property which is substantially similar to the Minimum Improvements. 2.4 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 9 Agreement and in the Deed with respect to the obligations of Developer to construct Minimum Improvements. The Certificate of Completion shall waive all rights of re-vestment of title in City as provided in Section 5.3, and the Certificate of Completion shall so state. 2.5 Develooer's Lender's Cure Riqhts. The parties agree that if Developer shall fail to complete the Minimum Improvements as required by this Agreement such that re-vestment of title may occur (or such that the City would have the option of exercising its re-vestment rights), then Developer's lender shall have the right, but not the obligation, to complete such Minimum Improvements. SECTION 3. CITY PARTICIPATION 3.1 Acquisition Grant to Develooer. For and in consideration of Developer's obligations hereunder to construct Minimum Improvements, City agrees to make an Acquisition Grant to Developer on the Closing Date, or such other date as the parties shall mutually agree upon in writing, in the amount of thirty nine thousand, two hundred and fifty Dollars ($39,250.00) per acre for 5.22 buildable acres. The parties agree that the Acquisition Grant shall be payable in the form of a credit favoring Developer at time of Closing with the effect of directly offsetting a portion of the purchase price obligation of Developer. 3.2 Economic Develooment Grant to Develooer. (1) 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 the Developer, commencing November 1, 2007 and continuing until May 1, 2018 pursuant to Iowa Code Section 403.9 of the Urban Renewal Law, in amounts equal to the actual amount of tax increment revenues paid by Developer and 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). Developer recognizes and agrees that the Economic Development Grants shall be paid solely and only from the incremental taxes collected by City in respect to the Minimum Improvements, which does not include property taxes collected for the payment of bonds and interest of each taxing district, and taxes for the regular and voter-approved physical plant and equipment levy, and any other portion required to be excluded by Iowa law, and thus such incremental taxes will not include all amounts paid by Developer as 10 regular property taxes. (2) To fund the Economic Development Grants, City shall certify to the County prior to December 1 of each year, commencing December 1, 2007, its request for the available Developer Tax Increments resulting from the assessments imposed by the County as of January 1 of the following year, to be collected by City as taxes are paid during the following 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 by December, 2007, the Economic Development Grants in respect thereof would be paid to the Developer on November 1, 2008, and May 1, 2009. (3) The Economic Development Grants shall be payable from and secured solely and only by the Developer Tax Increments paid to City that, upon receipt, shall be deposited and held in a special account created for such purpose and designated as the Kunkel Bounds 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 Kunkel Bounds TIF Account to pay the Economic Development Grants, as and to the extent set forth in Section 3.2( 1) 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 anyone 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 Kunkel Bounds 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. (4) City shall be free to use any and all tax increment revenues collected in respect of other properties within the Project Area, 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 Job Creation. Developer shall create twenty-four (24) full-time equivalent (2080 hours per year) employees in Dubuque, Iowa by within three (3) years from the date of this Agreement, and shall maintain those jobs during the Term of this Agreement. City acknowledges that Developer has existing employees and all 11 persons now or hereafter employed by Developer shall count against the twenty- four (24) FTE employee requirement described herein. It is agreed by the parties that Developer has no base employment in Dubuque, Iowa, as of June, 2006. In the event that the certificate provided to City under Section 4.2 hereof on July 1, 2016, discloses that Developer does not as of that date have at least twenty-four (24) FTE employees as provided hereinabove, Developer shall pay to City, promptly upon written demand therefor, an amount equal to $8,536.00 per job not created ($204,885.00 divided by 24 FTE employees). In addition, for the positions that Developer fails to create and maintain for any year during the Term of this Agreement, the semi-annual Economic Development Grants for such year under Section 3.2 shall be reduced by the percentage that the number of such positions bears to the total number of positions required to be created and maintained by this Section 4.1. 4.2 Certification. To assist City in monitoring the performance of Developer hereunder, three (3) years from the date of this Agreement, and again each year thereafter during the term of this Agreement, a duly authorized officer of Developer shall certify to City (a) the number of full time equivalent jobs employed at Property, and (b) to the effect that such officer has re-examined the terms and provisions of this Agreement and that at the date of such certificate, and during the preceding twelve (12) months, Developer is not or was not in default in the fulfillment of any of the terms and conditions of this Agreement and that no Event of Default (or event which, with the lapse of time or the giving of notice, or both, would become an Event of Default) is occurring or has occurred as of the date of such certificate or during such period, or if the signer is aware of any such default, event or Event of Default, said officer shall disclose in such statement the nature thereof, its period of existence and what action, if any, has been taken or is proposed to be taken with respect thereto. Such certificate shall be provided not later than July 1, 2009, and on July 1 of each year thereafter during the term of this Agreement. 4.3 Books and Records. During the term of this Agreement, Developer shall keep at all times 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 Prooertv Taxes. From and after the Closing Date, 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 unless Developer's obligations have been assumed by another person pursuant to the provisions of this Agreement. 4.5 No Other Exemotions. During the term of this Agreement, Developer agrees not to apply for any other state or local property tax exemptions which are available 12 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. 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, from time to time at the request of City, furnish City with proof of insurance in the form of a certificate of insurance for each insurance policy): (a) All risk builder's risk insurance, written on a Completed Value Form in an amount equal to one hundred percent (100%) of the replacement value when construction is completed; (b) Insurance as set forth in the attached Insurance Schedule. (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 (and from time to time at the request of City shall furnish proof of insurance in the form of a certificate of insurance) insurance as follows: (a) All risk property insurance against loss and/or damage to Minimum Improvements under an insurance policy written in an amount not less than the full insurable replacement value of Minimum Improvements. The term "replacement value" shall mean the actual replacement cost of the 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. (3) Developer shall notify City immediately in the case of damage exceeding $500,000.00 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 13 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 Prooertv. 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. Nothing in this Agreement, however, shall be deemed to alter any agreements between Developer or any other party including, without limitation, any agreements between the parties regarding the care and maintenance of the Property. 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, 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-Transferabilitv. Until such time as the Minimum Improvements are complete (as certified by City under Section 2.4), this Agreement may not be assigned by Developer nor may the Property be transferred by Developer to another party without the prior written consent of City, which shall not be unreasonably withheld. Thereafter, 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. Notwithstanding the foregoing, City hereby consents to Developer assigning this Agreement to an entity in which Developer, or its existing shareholders, own a majority interest. 14 4.11 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 office building 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, 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). 4.12 Release and Indemnification Covenants. (1) Developer releases City and the governing body members, officers, agents, servants and employees thereof (hereinafter, for purposes of this Section, the Indemnified Parties) from, covenants and agrees that the Indemnified Parties shall not be liable for, and agrees to indemnify, defend and hold harmless the Indemnified Parties against, any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements. (2) Except for any gross negligence, willful misrepresentation or any willful or wanton misconduct or any unlawful act of the Indemnified Parties, Developer agrees to protect and defend the Indemnified Parties, now or forever, and further agrees to hold the Indemnified Parties harmless, from any claim, demand, suit, action or other proceedings whatsoever by any person or entity whatsoever arising or purportedly arising from (1) any violation of any agreement or condition of this Agreement (except with respect to any suit, action, demand or other proceeding brought by Developer against City based on an alleged breach of any representation, warranty or covenant of City under this Agreement and/or to enforce its rights under this Agreement) or (2) the acquisition, construction, installation, ownership, and operation of the Minimum Improvements or (3) the condition of the Property and any hazardous substance or environmental contamination located in or on the Property, occurring after Developer takes possession of the Property. 15 (3) The Indemnified Parties shall not be liable to Developer for any damage or injury to the persons or property of Developer or its officers, agents, servants or employees or any other person who may be on, in or about the Minimum Improvements due to any act of negligence of any person, other than any act of negligence on the part of any such Indemnified Party or its officers, agents, servants or employees. (4) All covenants, stipulations, promises, agreements and obligations of City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of City, and not of any governing body member, officer, agent, servant or employee of City in the individual capacity thereof. (5) The provisions of this Section shall survive the termination of this Agreement. 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 which 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, anyone or more of the following events: (1) Failure by Developer to payor 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. 16 5.2. Remedies on Default bv 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 anyone 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 within sixty (60) days following such notice, or if the Event of Default cannot be cured within sixty (60) days and Developer does not provide 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 defaulting party deemed adequate by City, that the defaulting party 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 amounts expended by City in connection with the funding of the Acquisition Grant to Developer, and City may take any action, including any legal action it deems necessary, to recover such amounts from the defaulting party; (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 Re-Vestinq Title in Citv Upon Happeninq of Event Subsequent to Convevance to Developer. In the event that subsequent to conveyance of the Property to Developer by City and prior to receipt by Developer of the Certificate of Completion, but subject to the terms of the mortgage granted by Developer to secure a loan obtained by Developer from a commercial lender or other financial institution to fund the acquisition of Property or construction of the Minimum Improvements, (First Mortgage) an Event of Default under Section 5.1 of this Agreement occurs and is not cured within the times specified in Section 5.2, then City shall have the right to re-enter and take possession of the Property and any portion of the Minimum Improvements thereon and to terminate (and re-vest in City pursuant to the provisions of this Section 5.3 subject only to any superior rights in any holder of the First Mortgage) the estate conveyed by City to Developer, it being the intent of this provision, together with other provisions of this Agreement, that the conveyance of the Property to Developer shall be made upon the condition that (and the Deed shall contain a condition subsequent to the effect that), in the event of default under Section 5.1 on the part of Developer and failure on the part of 17 Developer to cure such default within the period and in the manner stated herein, City may declare a termination in favor of City of the title and of all Developer's rights and interests in and to Property conveyed to Developer, and that such title and all rights and interests of Developer, and any assigns or successors in interests of Developer, and any assigns or successors in interest to and in Property, shall revert to City (subject to the provisions of Section 5.3 of this Agreement), but only if the events stated in Section 5.1 of this Agreement have not been cured within the time period provided above, or, if the events cannot be cured within such time periods, Developer does not provide assurance to City, reasonably satisfactory to City, that the events will be cured as soon as reasonably possible. Notwithstanding the foregoing, however, City agrees to execute a Subordination Agreement in favor of Developer's first mortgage lender, in a form reasonably acceptable to City and to Developer's first mortgage lender. 5.4 Resale of Reacquired Prooertv: Disoosition of Proceeds. Upon the re- vesting in City of title to the Property as provided in Section 5.3 of this Agreement, City shall, pursuant to its responsibility under law, use its best efforts, subject to any rights or interests in such property or resale granted to any holder of a First Mortgage, to resell the Property or part thereof as soon and in such manner as City shall find feasible and consistent with the objectives of such law and of the Urban Renewal Plan to a qualified and responsible party or parties (as determined by City in its sole discretion) who will assume the obligation of making or completing the Minimum Improvements or such other improvements in their stead as shall be satisfactory to City and in accordance with the uses specified for such the Property or part thereof in the Urban Renewal Plan. Subject to any rights or interests in such property or proceeds granted to any holder of a First Mortgage upon such resale of the Property the proceeds thereof shall be applied: (1) First, to pay and discharge the First Mortgage; (2) Second, to pay the principal and interest on mortgage(s) created on the Property, or any portion thereof, or any improvements thereon, previously acquiesced in by City pursuant to this Agreement. If more than one mortgage on the Property, or any portion thereof, or any improvements thereon, has been previously acquiesced in by City pursuant to this Agreement and insufficient proceeds of the resale exist to pay the principal of, and interest on, each such mortgage in full, then such proceeds of the resale as are available shall be used to pay the principal of and interest on each such mortgage in their order of priority, or by mutual agreement of all contending parties including Developer, or by operation of law; (3) Third, to reimburse City for all allocable costs and expenses incurred by City, including but not limited to salaries of personnel, in connection with the recapture, management and resale of the Property or part thereof (but less any income derived by City from the Property or part thereof in 18 connection with such management); any payments made or necessary to be made to discharge any encumbrances or liens (except for mortgage(s) previously acquiesced in by the City) existing on the Property or part thereof at the time of revesting of title thereto in City or to discharge or prevent from attaching or bring made any subsequent encumbrances or liens due to obligations, default or acts of Developer, its successors or transferees (except with respect to such mortgage(s)), any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof, and any amounts otherwise owing to City (including water and sewer charges) by Developer and its successors or transferees; and (4) Fourth, to reimburse Developer up to the amount equal to (1) the sum of the Purchase Price paid to City for the Property and the cash actually invested by such party in making any of the Minimum Improvements on the Property, less (2) any gains or income withdrawn or made by Developer from this Agreement or the Property. 5.5 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. 5.6 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. 5.7 Aqreement 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. 5.8 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 19 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 any U.S. Postal Service and sent by registered or certified mail, postage prepaid, addressed as follows: If to Developer: Timothy Kunkel 203 High Street Mineral Point, Wisconsin 53565 Phone: (608) 987-1155 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 Bindinq 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 May 1,2018 (the Termination Date). 6.4. Execution Bv 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 Aqreement. Developer shall promptly record a Memorandum of Development Agreement in the form attached hereto as Exhibit 20 F in the office of the Recorder of Dubuque County, Iowa. Developer shall pay the costs for so recording. 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. Roy D. Buol, Mayor KUNKEL BOUNDS & ASSOCIATES, INC. , / 1 i / ~ /~ ~'-I. /,. fl / ./! By: /~")V04f."' 1~.' Timothy J. Kl,Hikel, President ( CITY OF DUBUQUE, IOWA By: By: Jeanne Schneider, City Clerk F:\USERS\tsteckle\Lindahl\Agreements\KunkeIBoundsDevelopmentAgreementFinal_0601 06bal.doc Last saved by Tracey Stecklein; 612/2006 9:22 AM 21 INSURANCE SCHEDULE A INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE CITY OF DUBUQUE 1. All policies of insurance required hereunder shall be with an insurer authorized to do business in Iowa. Aii insurers shall have a rating of A or better in the current A.M. Best Rating Guide. 2. All policies of insurance shall be endorsed to provide a thirty (30) day advance notice of cancellation to the City of Dubuque, except for 10 day notice for non-payment, if cancellation is prior to the expiration date. This endorsement supersedes the standard cancellation statement on the Certificate of Insurance. 3. Developer shall furnish a signed Certificate of Insurance to the City of Dubuque, Iowa for the coverage required in Paragraph 6 below. Such certificates shall include cooies of the following policy endorsements: a) Commercial General Liability policy is primary and non-contributing. b) Commercial General Liability additionai insured endorsement. c) Governmental Immunity Endorsements. 4. Each certificate shall be submitted to the contracting department of the City of Dubuque. 5. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the City of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of this agreement. 6. Developer shall be required to carry the following minimum coverage/limits or greater if required by iaw or other legal agreement: a) COMMERCIAL GENERAL LIABILITY General Aggregate Limit Products-Completed Operations Aggregate Limit Personal and Advertising Injury Limit Each Occurrence Limit Fire Damage Limit (anyone occurrence) Medical Payments $2,000,000 $1,000,000 $1,000,000 $1,000,000 $ 50,000 $ 5,000 This coverage shall be written on an occurrence, not a claims made form. Form CG 25 04 03 97 "Designated Location (s) General Aggregate Limit" shall be included. All deviations or exclusions from the standard ISO commercial general liability form CG 0001, or Business Owners form BP 0002, shall be clearly identified. 22 INSURANCE SCHEDULE A (Continued) INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE CITY OF DUBUQUE Governmental Immunity Endorsement identical or equivalent to form attached. Additional Insured Requirement: The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all its boards, commissions and/or authorities and their board members, employees and volunteers shall be named as an additional insured on General Liability Policies using ISO endorsement CG 20 26 0704 "Additional Insured - Designated Person or Organization," or it's equivalent. - See Specimen b) WORKERS' COMPENSATION & EMPLOYERS LIABILITY Statutory for Coverage A Employers Liability: Each Accident Each Employee - Disease Policy Limit - Disease $100,000 $100,000 $500,000 c) UMBRELLA EXCESS LIABILITY LIQUOR OR DRAM SHOP LIABILITY Coverage to be determined on a case by case basis by Finance Director. Completion Checklist D Certificate of Liability Insurance (2 pages) D Designated Location(s) General Aggregate Limit CG 25 04 03 97 (2 pages) D Additional Insured 20 26 07 04 D Governmental Immunities Endorsement 23 CITY OF DUBUQUE, IOWA GOVERNMENTAL IMMUNITIES ENDORSEMENT 1. Nonwaiver of Governmentallmmunitv. The insurance carrier expressly agrees and states that the purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time. 2. Claims Coveraae. The insurance carrier further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government Immunitv. The City of Dubuque, Iowa shall be responsible for asserting any defense of governmental immunity, and may do so at any time and shall do so upon the timely written request of the insurance carrier. 4. Non-Denial of Coveraae. The insurance carrier shall not deny coverage under this policy and the insurance carrier shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa under this policy for reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Dubuque, Iowa. No Other Chanae in Policv. The above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. SPECIMEN 24 POliCY NiJMnrn COMMERCI.6L GENERAL UABILlTY CO 20::2607 Q.4 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZA liON I his. eodOfSernent mooitlee insurance :>Ic'JlO8d UrlOtlI lh~ \.lII:Jwing COMMERCIAL GENERAL LlARlt ITY COVERAGE PART SCHEOULE Name Of Additicft_alln&ured P9r1iOn(sl Or Organization(s) Th Ci-:....:1: OLJbuque~ 'ir.clu{!inlj ~ll' iL'3 e-le::t::.r1 i"lrrJ ,".Pfl':'l1nr.r.d orrii':i.:1s., all i:s e"ploJ"=t'!:. l.lnd \'t..:llmll?~rs.~ all r:!=, fJoar-ds, (Oli~1I1S5. ions. .:nd/o)" autr(or~ ti es llnd t"ei r :.::.an't -IIt>lllbflfS. ~mpluyer.~ ~nd vclu~teers, In~rmatu::!.'JeOJlf'eO ;0 <.:~r~tf" tho;::; Sr:h~,:,.!a n nol .,;hOW') above. '/I:II l;)e S'lo\tln in 1he DeC,~.3f_l!l.ior" $4:c;liUII II - Who ko An 1n6u~d is ilr,lerdCCi 1c In du~ sa 8n edditicna insured th~ fJt~!'"~,u',:~") III' (JI~Jlh zation(i) ;hown in th\: Schedule, but ::.n~r wiT: fe<3~CI to hablhty t'rv'hcdil~' ;n~IlI)''', "prCfJeiy damaf,1(?" uj ~petsOral s!'"ld ad'o';trf5irg InlurY calJSeC I.' whdf! Of in pert by your i::IG~ ur ornis~Klrs or t"e acts or om:s- sior~ 04 ltl:.se ~;~ing 'On 'fOur boer-alf A, In the performance of yourorgctrY-l ooerati(lr~. ()f B. In connel;~i('..n with '/O'Jr ;)femis.es own.ed by or ,,.ntootn 1(l1l :PEC'tt~ ('(.. '0 ,Fi. 07 n.. t~~ ISO P:-noer:ie-s. Inc__ 20C4 PaQe 1 :>f 1 25 i I ~J o l. ACQRQ. CERTIFICATE OF LIABILITY INS~_~ANCE ~;/~;~-;:" I%.AJIY~~~ (563)SS6 027Z VAl( ('itd }~SO-"":~ nus CERT'FICATE 15155UED AS A MATTEI-( Or INf-OMMAfIQN OHL"f ANOCCN.Fe.Rt> NO RKOH1S U~N THE CERTIFICATE l~UKAHLt M...I::Nl '" HOLDER. THIS CERTIFICAT~ 001::::$ NO' AMENlJ, E>CTENfJ OR ~ It.:UI .'WlJf([SS ALTER THE COVEft.\G,E_"FFDRDED flY tHE POUCIES BElO~ lllV, ~1~ll. lIP (oor '''~I.I''tll COllpOlny ~tr~l 4d~n~')'i. (lty, St~t~. 71~ Cnde IN5URCRS ....'TORDING CQ'/ErtAGE 'i;' H , Tns.uranc.e ("Dnlpa~x r.";, I.~.;', -t~AIC II .",,1_1' ,,,..,., n".I,~ I" ~HF pm Jr:IF~ (IF If" ';1:~M'''':1 I.I~iIL_' c:.LLOW I ,l,:~'C DC'" ,r,r,vrD T(I THF lN~llF~[)N.~~t1-I) f.l!J:i'~~ ~'.:'-( It-L .1' JLlI~V ~LI.:IUt' IM';-'J', I'_U r..c.;' ,.,)1 'I~. ''''>11'''' .lor.... 1'!I:~'JIr..Et.;E"'T TE"':M ~'~;'~_Ct>.l~IIIl{JN '.0' N.j~ \:CN I ~."'-_T r_~-~ c.n~p.Do:,ur"Etl; ....II,H FSSPEST IU 'i\Hl';.H ~I~., ~'t'" ,.. W}', ,; l.v,.,. III I~;f; IH! l'lf, 1.1:....' "~H L"-'" i HI Itl::;IJI~,\'''K[ .NTCR:C) ::,'1' -H:: ro .1::;lf~: nf-:!'..C~IH~:J Hl=J,!l=lrl k, ::;1.AlJL':': I I G' ,.\lL' ilL '=-Q.1t. .:xG ; c;,~:t~5\ t.~r' ;~ ::!'..::i1T",-"rN<; OF '-.11("1- f'O.J'.::l:S,AC.(;F!F::....'FI r..IT;:.'~"":l';,'" w.-v I-fl.'.'," l<ILN I.:U;UL:_U ~v 'o"Jl.: '':..A''''': _....'v., T"!'P~(,~N!;IIAM..f" G(1.-::~""I:/I,l:IIIH X 11I~'jof ,n~, :~'.I-"~' I ~"1I1 :.l'.~. "'~':' rx: :',::~.III, r(J.JL....lilJlll:l8'l "",I"'" "', L~,ot., ~--,:",I(:... L~"'iV.',o'~' o L""'! A , "~~:-"l~' ~ ',,;OJ ,".un -.>J.a"':)..I.'.'~~""'--'" J.....":.L I ,> ._~ ~L' '~-~. ,<-,. ,b j", .,~ .~j 'A' I: ,... ' ''',.. 0; .. ~'."--" _ :~." I~l ~',''''~~,-",..", Jrllll: 'I. .~, l ,:,., _ ','.I~' ),. ,:. ---'-- I .,' .'( [i_i-- ,.- ;.//:/"UI- " ,1 .) .........' ~ >- rl ...t~lrrll 1:;1...:, ,\.<, "-,,..,,,.,,, ....JID'O!llEL~EUT" X n.~';',ilr tU'.-...l.jP,','''; 1':~11 y...., y' ",""_.".,, A , ;:::"'O'.UT,".IT"'~' "F:=-:- ,'})' '~'.' "~Il ~.,\"rl' -'I' ,,,; I :~" >; ~~, .,,~ :~," ....,,.....It ~ ~'Jt' 'I 1\' ':~''';';; .~,.,.....,.w,; ..::...f\A(;t;L...!ILrT'( 11l....lI'C' ".1,1<;'" '.,I....~I.:IIH.1 ~r lit." 1 .I~tj '"..T",-""" , ~.~n ....:;:; t;_I.I::t<S&'U_~tLlJ>,L;l8UTV =:J ':.I.,.:,I~ I ~1J\j"'.'; '.0111';.[ r~"-' I f". .1l-'l~1 t"., ,';c.'R::j'.'l. ~.~:l r.- B. E I' !. ",';t.IILI'I .-. _~, ,~'J~;T~~,'_ . -'~~4 ,r. ~"',:I ..-. .1~T~T ' "",Hrll~O:)fIl"~hB"'ll.Jh"'IIU _-()~lil't$'LV.8LJr1 " un I'!CI'I~ ~ I ~1<."'>t<,+.tE.."''EkC-Jr ','E ,:" '-~'<oll"...t~~ t'.~LJ~U '!,'.' ,".--,.., ,., ""~~FR':'>.'1S1C"'-'."'__ Ul""" L., ,l:'::~~;l 1,""Io'I',C'ill 100,0 l~,O SOOO,O E- _, :loE'.~l P'-' 11.'-,1)1' ~ Dl!.m;III;;;ij",:..- lII"tIVO.lIJNd' u.o..:A'IU,,~,';~"""l.~'1 '''.1 r.'o~W~.r.c::eD Il'r ~!IellleNT..~re;a"'.L"""'"'''''''''' HE CITY OF DUBUQUE IS USHD 45 A~ ADDITIONAL INSURED 0t4 GENERAL LIABIUH POI Hit... U~JN(, 1S0 E.NDORSE. (NT E)R" CG 2:0 26 07 04 "NJDTlTf]NAI IN~UI<I:.Il-DESIGNATEQ PERSON OR ORGA"'IlATIQtl" 011 1] S E.QUl\o'IUNT. Nt::RAL lHBILITY POLlCY 15 PRIMARV AND NON-CONTRIBUTIfttG. F()IDIl: CG 2S 04 03 ~7 "DESIGNAlED LOC.\TIO'IS" ENERAL LI,l.BIUTY AaiflE<;4Tf LINI1 SttA.LL BE INCLUOED. COv(R'tflI:.NT~l TM"'lJNt I Lt-~ l::NlJOI(s'I:.PlENT IS INCLlIlED. II POUGES SI-l4lL BE (N)l)liI'Sln HI f'lC'OVIOf: 3Q I:M.Y ADVANCE NOTICE Of C<\NC[U~TION 10 cry OF DUBUQUE CITY Of llU8tnJE CITY 11All SO W, BTII STRffT UUHUQUl::, 14 ~lOOl 8Il0u..0.....YOF TIlEA9Cl'./EOC9:-IilBCOPOt Cll"~ Il' (;."...1:1111111:' I t~~ '''~ .:.xrllljlnct~ DArE THEREOF, THE rialNl; 1'I~\l"FR 'WI'I11 ~'" 101..... }IJ CA'fi: ~~l'm(N1oI011(..e:1l)T~f"(TR'"lf""-"'Tr>1f1 Ol"/ll ".....m 10 ...",L..t:~l. ~~~_.~:.:Itfi~:( ~~JIl~~~~)'_'II'~_~XXXXX~ NJn~t lIIerl'l~Vl'",'.we ACCRC' 26 t2001.'DB'I oJ.\ACOOD CORPQRJt.TIOM 1lNl8 26 - I IMPORT ANT If thl: cu:Ufcatc h.)ICl"'!f I~, ;In p,DOI l-UN.""llt>J~vkI:.O lrw.; pllh.;,;~i.;~'; 111.,:14 b.~ ~ l..XJ--~_ A -::.,^"lo::ll'll2'tlt lIJI II lit; 1;~'lt(JC31~ O:)f.'5. nO! cant€'!" rt~nts to the t.ertifit::.tI1_~ hdrl~r il1li,..,lllll ~.JI~1 nldl"~lIlt~lltl:'::. If SlJB~OG^TION 15 ....'ANrD. !'J.Jllf&O 10 tl'IO:; ~I-l~ ;:lI1C t;J.Illui\il;ll:j ()r II-~rd;"'"f. 1.2:"11<1;(- \-IoIiGit's rnay Il;;IQUHIJ ,,11 tlll(")I"~IY.=:-nl ,:. sUtef""l>E'l1t on :hl~ CSJrtifi!\:<llt;; Ikll:::" mol I :lltlf,.." li~;jlll~ I,. H,,,. u~lhliu:jl~ hDtd(;,'f illllo.! d ~I.t(':.- f'nrllY:";l"rr..,.'1t:.s) DISCLAIMER I hE' L:F.lr.!fK:"IH.: or, n~\L'Mw:,.., ell) lhp. rf'!~~f8@ ~id(> 01 tt1:s f.:lfnl dlJl.;~ rKX U.F1~ljl...tl: oi.l (.;<.11.\1;;11,% I ~h.!f'l"'11 :he Issung in::;urul(:;;;, <JUlr(lf"l~c.;J repre!'.p.ntall...e or !=il>jU-:A:ir, ilnu ;h", t;-:>lt,{il..:~ll.: 1 II.) 1I,,' . Ilt,lI ,Iut-.< it a.t1nrra1I'A:>I.,. QI rl~!J<:tiv~'f ,1I11:t)(!, ~J(tP:nc1 or alter tI1e CO'F.:'r3g(l 3{ftrtlOO b'f UtlJ r"~,lil..:i~~ h,.,.l~ 111"""1'"111' SPECIMEN _.- ACOR[l U. 120011001 27 rm.'cy tLI\18Cn COMMERCIAL GENERAL LtAelL.ITY CG 251)403 91 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. DESIGNATED LOCATION(S) GENERAL AGGREGATE LIMIT COMMERCIALGENERM tIARIII''''Y COVF~AGE PAPT Ttn~ ~IIOOIl:iElf""'l:ln1 moolfie~ if"'!'.llr:mr:;:: nr....'Jl(1,p11 ilM'\('f \hI:' fdkYNing SPECIMEN SCHEDULE ie.i9na'Od Local","!') :I! t'l;) L'r'b.' appears ab~"p' irfcmnaticn re(1Ulroo to compEte this en~m.,.,n1w~1 b~ ~11("'\'rl irl tfto? (1€o':.:!:,Tatior,~ R!'i l'I"pl~b;e to :r,s elicorsE?rlEllt.i A. F-or..1I ;:;.um::. ",'h ch Ihe i"'l'3u-eL: b~(;()(nio!"l 1t-!J.>tHy ;;;b.lig..l~~ 10) f.J.<.Iy .:41; dEima;;lElS C3UEed bol 'nccurrercF.!'-' .In-1P.f" ('llVFRAGf.:: A (SECTION 11- and to- all rr.edir:al f!xp:!n~~ caused b~ ~cc- den:s llnoef COVl:J-.:AGE C (SECTION 1"1, whk:, can be attribuie<:l only to o;;eHHIL'm. <:It a sin;;le IJHl:;I;}rl::ltt!d "locaIion" shew1 in the Sc"'Cdu'c ClJO.te: 1 A se::>arate D6$I{POl ~d Loc,:Elon General A!:jglt?gaie 'mit ap::lt,e5 to e.ach dCSl9nalc,j 'iocaoon'. ::lnj :hat imir I!'. P.fJ1J."l1 to ttle <'IrlnIUlli IJf lilt: Gt:-11t:Hi:l1 A!;jgregate Urn t shown in the Deci&ratlcm~ 2. TIle- Dcsigna1I:d ~cation C~~r.=I AgGf~<Ue III1n\ I~ lilt IHU:sI','J~ will p;l,. for the sum of all d8m.ag~s UI'lGef co'"rn/',GC A, ~);cep': darn- Bgee. b9C3LS8 of "bodity rnJLry' Of "prop:::rti ::f<:In1,;l!JC'" Jr'lr;h..1ed if" the 'prcducts-completl'..<d ::lD€ra1ions bi:llar"c". :ind 101 fnadiCdI E!XrE~~" under COVFRt\GE C reootilcss of the nUrrI- t,C'! of (I, nsu'ecJs b. C 'aims ma~e cF -~uib" L"".}I..<j1 l. IJ< C, Person:; cr org3ri2R-inn!'l rnfiki~ cl:;'llms or hrl"lglng 'sUits' 3. A'l,/ Pa'yTY'IElnts made under CO\/ERA.:';C: A lOr l1amages or un<1~ COVFRAGE C 10r mp.-jlO't! e)lpe1ses $hall fetiu~ tte IJeSlg- nat.:.>c l(,,:.:atiO'1 Got:- ~l<:il J\yl,.lI>:l9i:ll~ limit fa' th6r. designated 'Io~tlon" :J.;;ch purmcn1s ~l"I;11 not re-::lu<:e lhe Ganem '~g~i~~;)lf: ! lllli! ;:.hr.wn in t~ n...r:L::l1 ;.,ahfln~ 'lor ST3i1 they re juo::;e anI' ot"ler De$igt'lj)t'~d Lc:::..:ion Gere~1 ^ggr,egato Limit fOi' W1\" CltioP.r ne$I'.l!"t.ated '1o(:a!i::m" sh('l"l/jn In the Sc:.hooue atlov'2' 4. The 'imi15 shown il1 the C-ed<:lraoon-:: to! Each Occu'rt'rcc. Fire e'BrnFIo,liP. R~ ~Aedt::at b,- p@.r",€ cA,nMue to apply. j lowever. nstead of bei,'tg s.uoiect to ltJe Generdl AgglE:1ga!::l U,.-i1 Sl10wr in ltltt Dooarah:Jns, suo:::h ImftS o,l,I1.. 0::; bU~Jl;1(t tu lilt: :.If-'lJlioLiJljc Jesi[:1unn I nr.::;"lon Cendrel Aggit:gl"llt'! I "1Iil. 28 B. FUl <:ill SWW;;. Wlhlj: lh:: ill":t,'Ir-d ~Jt'::COIll..:::. 1~..II't- o~igi2ted to c;a'y s-e dam&;j'*'! c9.J&od by '(Ju(;lIfra'",Cee' undBr '::OVERAGE A 'Si:.C liON I), ard fc.f ail ~iI.:-:ll "'.lrV""'~"I''''II~~1 h~ ~cr;i. (jent; unoor CO"/ER/'.GE C (SECTION I) -.vh ch cmr.(lt be :Jt1ribl.llP.rl ont.,. tc, :::p€!Iatof'6 ~t a sir. !;Ie desi;jnatej 'locahoo' shown in ~he &hP.dulp atxnl:l 1. kl'y PRVrff>m::l 'TIade Lipdcl COVE-RAGE A tar dan.agc:!. C<~ +mde' COVERAGF C :or IlItkk::a expenses shall r~duc:e the arTIount 3\'311a,DIe- uncel tfl:! ~r1!lal Aggregate L1mi1 Dr t'1C Pr:.;.jut;'.;;.-C~)nvlt::krJ OIJe'Cltf\Jl'~ Ag- ~r~g~tt:: I frlll .....htd)~r is appli::;solc and 2, t:i\,CIl paymerts ~nalJ not IB"Ju::e iJfI'j OtlSiynatoo l.cr.atio!! GEt1:..lfdl ftOOH.:g<Jtt: u:lliL C. ':"hen G:::-vera:Jl:: fur 1';':1:)11'1)' nl'~,"j;ln9 IJ(. cf lh.;:: .prOOtiCI!": compl~ted op€'r:::ione h:JZ.3rd' ie pro. 'Ji(:ed. :m~' p3:,ments for ':!8m3g>?S biir"c;(I':'oC ':1 .bodi", !r.Jur~- or 'pf(Dert~ (jama.~e" ncluded in L11~ "1J1<..:t.lu:::ts-conwl.:lec o~'eraticm5 hanm1' ~.ill reduce l'1e PrMOC-15-Comp~1ed Op!:lf;:,Jtl1r\e A!J+ gregala limit a1d na( rcxlliCC t"'le Ge-lE:rat Ag gfeogate lJmlt IVY Itle l)e$h~nat-e:J I Xffir.,n Ce'l- eral Aggregale Limit D. Far the plfposeS of th'5 enoorsement :he Defi- nltton$ t>eC:II)n I;J r-..mF!n(\f'=d bV lhf'! !3dji1'on of the fcllDHing je'in ii-en: "Localion" t~)danS prCf"'l:ses t'wr),vng tr-e 5ame or ccn!'lect1ng lot!';. ("J' r:ri'!miSle;:;. W~lose COrlfleG- :lQn Is. InteTu::rtec O'lll t'l a s:reu1. rottf.w-'<l.)" -,'d 1erway :.r rigr-t-cfoway af a r~ilrO<.ld E. I he provrSlors Of Iltnts. Of 1n!;.uran:)E I,SEC,ION 1111 Ilo)t otrEfWise mo:lified 0)/ this t:tfOOISe-'lt:l1t shall,:,c:l1t1lJi'l' tc app~ as Sipul.abcc SPECIMEN 29 URBAN RENEWAL PLAN Dubuque Industrial Center/South Economic Development District (Previously known as Site F Economic Development District) City of Dubuque, Iowa This Urban Renewal Plan provides for the development of the Dubuque Industrial Center/South Economic Development District (previously known as Site F Economic Development District). Its preparation was authorized by Resolution 46-97 of the City Council of the City of Dubuque, Iowa on January 20, 1997. The City Council adopted the Plan by Resolution 141-97 on April 7, 1997. Prepared by the Community and Economic Development Department. TABLE OF CONTENTS 31 A. INTRODUCTION Page B. OBJECTIVES Page C. DISTRICT BOUNDARIES Page 2 D. PUBLIC PURPOSE ACTIVITIES Page 2 E. DEVELOPMENT AND REDEVELOPMENT REQUIREMENTS Page 3 F. LAND ACQUISITION AND DISPOSITION Page 4 G. FINANCING ACTIVITIES Page 5 H. STATE AND LOCAL REQUIREMENTS Page 7 I. DURATION OF APPROVED URBAN RENEWAL PLAN Page 7 J. SEVERABILITY Page 7 K. AMENDMENT OF APPROVED URBAN RENEWAL PLAN Page 8 L. ATTACHMENTS Page 8 32 URBAN RENEWAL PLAN Dubuque Industrial Center/South Economic Development District (Previously known as Site F Economic Development District) City of Dubuque, Iowa A. INTRODUCTION This URBAN RENEWAL PLAN (the "Plan") has been prepared to provide for the development and redevelopment of the DUBUQUE INDUSTRIAL CENTER/SOUTH ECONOMIC DEVELOPMENT DISTRICT, previously known as the Site F Economic Development District (the "District") as authorized by Resolution 46-97 of the City Council of the City of Dubuque on January 20, 1997. Its intent is to stimulate economic development activities within the District through the commitment of public actions as specified herein. To achieve this objective, the City of Dubuque shall undertake the urban renewal actions specified in this Plan, pursuant to the powers granted to it under Chapter 403 of the Iowa Code, Urban Renewal Law. B. OBJECTIVES OF THE PLAN The primary objectives of the Plan are the development and redevelopment of the District for economic development activities, primarily industrial park development, through: 1. Provision of marketable industrial development sites for the purpose of job-creating economic development activities; 2. Provision of public infrastructure improvements, including sanitary sewer, water and stormwater detention, supportive of full development of the District; 3. Provision of a safe, efficient and attractive circulation system; 4. Establishment of design standards which will assure cohesive and compatible development and redevelopment of the District; 5. Provision of public amenities that provide an aesthetically appealing environment, including open space, buffering, landscaping, water features, signage and lighting to create a distinctive and attractive setting; 6. Creation of financial incentives necessary to encourage new and existing businesses to invest in the District; and 7. Expansion of the property tax base of the District. C. DISTRICT BOUNDARIES I The District is located within the City of Dubuque, County of Dubuque, State of Iowa. The District shall consist of the real property legally described as follows: Lot 2-1-1 of the NE 1/4 of the SW 1/4, Lot 2 of the NE 1/4 of the SW 1/4, Lot 1-1-1 of the NE 1/4 of the SW 1/4, Lot 1-1-8 of the SE 1/4, and the SE 1/4 of the SW 1/4, all in Section 12, Township 88 North, Range 2 East, Fifth Principal Meridian, in Dubuque County, Iowa and any adjoining public right-of-way. The boundaries of the District are delineated on the URBAN RENEWAL DISTRICT map (Attachment A). The City of Dubuque reserves the right to modifY the boundaries of the District at some future date. Any amendments to the Plan will be completed in accordance with Chapter 403 of the Iowa Code, Urban Renewal Law. D. PUBLIC PURPOSE ACTIVITIES To meet the OBJECTIVES of this Plan, the City of Dubuque is prepared to initiate and support development and redevelopment of the District through, among other things, the following PUBLIC PURPOSE ACTIVITIES: I. Acquisition of property for public improvements and private development; 2. Demolition and clearance of improvements not compatible with or necessary for industrial park development and all site preparation and grading required in connection with such development; 3. Improvement, installation, construction and reconstruction of streets, utilities and other improvements and rights-of-ways including but not limited to the relocation of overhead utility lines, street lights, appropriate landscaping and buffers, open space and signage; 4. Disposition of any property acquired in the District, including sale, initial leasing or retention by the City itself, at its fair value; 5. Preparation of property for development and redevelopment purposes including but not limited to activities such as appraisals and architectural and engineering studies; 6. Use of tax increment financing, loans, grants and other appropriate financial tools in support of eligible public and private development and redevelopment efforts; 7. Enforcement of applicable local, state and federal laws, codes and regulations; 8. Enforcement of established design standards in furtherance of quality development; 9. Development and implementation of a marketing prograru for the purpose of promoting the purchase and development of industrial sites by private businesses; 10. Coordination of the improvement of U.S. Highway 61/151 as it affects the District's access to that roadway. Public purpose activities are limited to those areas delineated on the PUBLIC PURPOSE ACTIVITY AREA map (Attachment B). 2 All public purpose activities shall be conditioned upon and shall meet the restrictions and limitations placed upon the District by the Plan. E. DEVELOPMENT AND REDEVELOPMENT REQUIREMENTS The LAND USE and PLANNING AND DESIGN CRITERIA set forth herein shall apply to any and all District properties the development and/or the redevelopment of which is assisted by the City through any of the PUBLIC PURPOSE ACTIVITIES listed above. 1. Land Use The intent of this Plan is to promote the development of commercial and industrial land uses within a quality industrial park setting. All uses shall be regulated by the zoning district established for the property. LAND USE maps (Attachments CI and C2) identifY the existing and the proposed land uses within the District. 2. Plannint! and Desi!!D Criteria The planning criteria to be used to guide the physical development of the District are those standards and guidelines contained within the City of Dubuque's Zoning Ordinance and other applicable local, state and federal codes and ordinances. The proposed zoning designation will be PI Planned Industrial District as required by Section 3-5.5 of the City of Dubuque Zoning Ordinance. Development within the District will follow the Planned Unit Development regulations which require a conceptual development plan and specific design and performance standards to be approved by ordinance. F. LAND ACQUISITION AND DISPOSITION The City of Dubuque is prepared to acquire and dispose of property in support of the development and redevelopment of the District within the parameters set forth below. 1. Land Acauisition The City has acquired, through contractual agreement, all property within the District for private development purposes. However, the City will acquire, through eminent domain, any property for public or private development and redevelopment purposes should it be unable to acquire land through negotiated purchase. The City also reserves the right to acquire, by negotiation or eminent domain, property rights required for the construction or reconstruction of streets and public utilities, or any other public facility or improvement. 2. Land Disnosilion Publicly held land will be sold for the development of viable uses consistent with this Plan and not for purposes of speculation. Land will be disposed of in accordance with the requirements sel forth in Chapter 403 of the Iowa Code, 3 Urban Renewal Law. Developers will be selected on the basis of the quality of their proposals and their ability to carry out such proposals while complying with the requirements of this Plan. Developers will be required by contractual agreement to observe the Land Use Requirements and Planning and Design Criteria of this Plan. The contract and other disposition documents will set forth the provisions, standards and criteria for achieving the objectives and requirements outlined in this Plan. 3. Relocation Reauirements The land is currently vacant; no relocation is anticipated. G. FINANCING ACTIVITIES To meet the OBJECTIVES of this Plan and to encourage the development of the District and private investment therein, the City of Duhuque is prepared to provide financial assistance to qualified industries and businesses through the making of loans or grants under Chapter I SA of the Iowa Code and through the use of tax increment financing under Chapter 403 of the Iowa Code. I. Chaoter ISA LoaD or GraDt The City of Dubuque has determiDed that the making of loans or grants of public fimds to qualified industries and businesses is necessary to aid in the planning, undertaking and completion of urban renewal projects authorized under this Plan within the meaning of Section 384.24(3)(q) of the Iowa Code. Accordingly. in furtherance of the objectives of this Plan, the City of Dubuque may determine to issue bonds or loan agreements, in reliance upon the authority of Section 384.24A, Section 384.24(3)(q). Section 403.12 (general obligation bonds) or Section 403.9 (tax increment bonds), for the purpose of making loans or grants of public funds to qualified businesses. Alternatively, the City may determine to use available fimds for the making of such loans or grants. In determining qualifications of recipients and whether to make any such individual loans or grants, the City of Dubuque shall consider one or more of the factors set forth in Section I SA. I of the Iowa Code on a case-by-case basis. 2. Tax Increment Financim! The City of Dubuque is prepared to utilize tax increment financing as a means of financing eligible costs incurred to implement the Public Purpose Activities identified in Part D of this Plan. Bonds or loan agreements may be issued by the City under the authority of Section 403.9 of the Iowa Code (tax increment bonds) or Section 384.24A, Section 384.24(3)(q) and Section 403.12 (general obligation bonds). The City acknowledges that the use of tax increment revenues delays the ability of other local taxing bodies to realize immediately the direct tax benefits of new development in the District. The City believes, however, that the use of tax increment revenues to finance the development of new industrial land and to promote private investment in the District is necessary in the public interest to achieve the OBJECTIVES of this Plan. Without the use of this special financing tool, new investment may not otherwise occur or may occur within another jurisdiction. If new development does not take place in Dubuque, property values could stagnate and the City, County and School District may receive less taxes during the duration of this Plan than they would have if this Plan were not implemented. Tax increment financing will provide a long-term payback in overall increased tax base for the City, County and School District. The initial public investment required to generate new private investment will ultimately increase the taxable value of the District well beyond its existing base value. 4 Tax increment reimbursement may be sought for, among other things, the following costs to the extent they are incurred by the City: a. Planning and administration of the Plan; b. Construction of public infrastructure improvements and facilities within the District; c. Acquisition, installation, maintenance and replacement of public investments throughout the District including but not limited to street lights, landscaping and buffers, signage and appropriate amenities; d. Acquisition of land andlor buildings and preparation of same for sale to private developers, including any "write down" of fhe sale price of the land and/or building; e. Preservation, conservation, development or redevelopment of buildings or facilities within the District to be sold or leased to qualified businesses; f. Loans or grants to qualified businesses under Chapter l5A of the Iowa Code, including debt service payments on any bonds issued to finance such loans or grants, for purposes of expanding the business or activity, or ofher qualifying loan programs established in support of fhe Plan; and g. Providing fhe matching share for a variety of local, state and federal grants and loans. 3. ProDosed Amount ofIndebtedness At this time, the extent of improvements and new development within the District is only generally known.. As such, the amount and duration for use of the tax increment revenues for public improvements andlor private development can only be estimated; however, the actual use and amount of tax increment revenues to be used by fhe City for District activities will be determined at the time specific development is proposed. It is anticipated that the maximum amount of indebtedness which will qualify for tax increment revenue reimbursement during the duration of this Plan, including acquisition, public improvements and private development assistance, will not exceed $6,000,000. At fhe time of adoption offhis Plan, fhe City of Dubuque's current general obligation debt is $14,200,000 (a list of obligations is found as Attachment D) and fhe applicable constitutional debt limit is $91,286,810. H. STATE AND LOCAL REQUIREMENTS All provisions necessary to conform with state and local laws have been complied wifh by fhe City of Dubuque in fhe implementation of this Plan and its supporting documents. I. DURATION OF APPROVED URBAN RENEWAL PLAN This Plan shall continue in effect until terminated by fhe City Council; provided, however, fhat fhe collection of tax increment revenues from properties located in fhe District shall be limited to twenty (20) years from fhe calendar year following the calendar year in which the City first certifies to the County Auditor the amount of any loans, 5 advances, indebtedness or bonds which qualify for payment from the division of tax increment revenue provided for in Section 403.19 (tax increment financing) of the Iowa Code. The DEVELOPMENT AND REDEVELOPMENT REQUIREMENTS established, or as amended from time to time by the City of Dubuque Zoning Ordinance, shall remain in effect in perpetuity. J. SEVERABILITY In the event one or more provisions contained in this Plan shall be held for any reason to be invalid, illegal, unauthorized or unenforceable in any respect, such invalidity, illegality, unauthorization or unenforceability shall not affect any other provision of this Plan and this Urban Renewal Plan shall be construed and implemented as if such provision had never been contained herein. K. AMENDMENT OF APPROVED URBAN RENEWAL PLAN This Plan may be amended from time to time to respond to development opportunities. Any such amendment shall conform to the requirements of Chapter 403 of the Iowa Code. Any change effecting any property or contractual right can be effectuated only in accordance with applicable state and local law. L. ATTACHMENTS A Urban Renewal District Map B Public Purpose Activity Area Map C Land Use Maps Cl Existing Land Use C2 Proposed Land Use D List of General Obligations 6 EXHIBIT B LEGAL DESCRIPTION Lot 6 Block 2 Dubuque Technology Park in the City of Dubuque, Iowa, according to the recorded plat thereof 7 \~ :~! ~ ~ 7.::!i: "D., , '" ...~ "" ,... ~.::~ ::.! --;:::ti ..,-:- ~ ---. rl- "~~; ~!-I . ~ = ~~O ~ ""'*- W . <:00 -;;; \<"> c 7; J"l ell. u.s. ~~W..,. ,,, ~ 1S1 'to" . .. ! : , - CIT~ T""':'""'"JfI" I . 1 ~ . ... g, "'t:,.. ~.... I 8 i ~ ii~:!! ;; ~2 : i"~ , ;' -a to" r- .~~~ I ... ~ 'i - I . ---- .-- e 9$ 'f \ . .:: > \~ ,J"l G! Poi ... il il ~1!IUP~lgil q~li!!! ;il Pi ~p. i~ ii I 'I h ~r~i'lil ! ~ lain ~= ; lil;~ "I! I ~ ~ ~ I- · I~~ II J I' Ilt~ f~~~~ ~li GII ! ~i8i III !. " .;;iili ~ i~i 9 ~ ~,i .;; 'i Ir91 8 S ! :~~ m ~ ! it e li!li ! I ,~lId II UII! S . 'I .1 iI ~ . J .:i " . 1111 'I jl ~;: ~ '-a: i 21il flit ~~ u ! I . . - ... -~ . - . . . I, I !II lilll Iii ~ - rl r ~ ~ ~ ~'rl FINAL PLAT DUBUQUE TECHNOLOGY PARK DUBUQUE, IOWA (/il 5l I i\ i I, I DlIII"I.___U'" ___ 3: ------ ~ (1 :I: ;::C/1. U,s. l'4iC!-lW"Y 61 .Ir. l~l ~-- _~-..~ (IGO\ " 5'"" "L17 ~ C II 07U't'-... ....U ~9UC AREA LOt II 011.. . ,. w. . . . . il . ~.. :- ~ I ii . . i . ; i . ~ ~ ~ . . , ~ ~ . n 3; . ~ ! ~ 5 i ! I.....~ twrl r;~~~rl . ...., i ~ -r.. j C "l,.~ t . Ii t- . I I I I I I . ~ r Z ,.., ~L ~~I r- , ~ ~r-~ ~ i ll: ,. if~ - . I.'. .' ,,! .. a Gr''''''- 10 117&" Ii FINAl. PLAT OUIlVQlI!: 'T'f:CHNOLOCY p^RK II I III lieilii DUBUQUE. IOW^ ..-..-...-............; .,11' I I 12 BAR R Y A. L I N D A H L, ESQ. CITY ATTORNEY lHI:iCITYOl' C,-~\ I) l..IR. (JL~- ~<k~ (DATE) RE: Dear 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. Very sincerely, Barry A. Lindahl, Esq. City Attorney BAUls 14 Mayor and City Councilmembers Cit~ Hall 131 and Central Avenue Dubuque IA 52001 Re: Development Agreement Between the City of Dubuque, Iowa and Dear Mayor and City Councilmembers: We have acted as counsel for , (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 limited liability company organized and existing under the laws of the State of and has full power and authority to execute, deliver and perform in full Development Agreement. 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 the 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 16 prospective), financial position or results of operations of Developer or which in any manner raises any questions affecting the validity of the Agreement or Developer's ability to perform Developer's obligations thereunder. Very truly yours, 17 Prepared by: Barry A. Lindahl 300 Main Street ,Suite 330, Dubuque IA 52001 563583-4113 Return to: Barry A. Lindahl 300 Main Street ,Suite 330, Dubuque IA 52001 563583-4113 Tax Statement to: SPECIAL WARRANTY DEED KNOW ALL MEN BY THESE PRESENTS: that the City of Dubuque, Iowa, a municipal corporation of the State of Iowa (Grantor), in consideration of the Grantee named below undertaking the obligations of the Developer under the Development Agreement described below and the sum of and no/100 Dollars ($ ) in hand paid, and other good and valuable consideration, and pursuant to the authority of Chapter 403, Code of Iowa, does hereby GRANT, SELL AND CONVEY unto , an Iowa limited liability company (Grantee), the following described parcel(s) situated in the County of Dubuque, State of Iowa, to wit (the Property): This Deed is exempt from transfer tax pursuant to Iowa Code section 428A.2(6). This Deed is given pursuant to the authority of Resolution No. the City Council of the City of Dubuque adopted the _ day of 20_, the terms and conditions thereof, if any, having been fulfilled. of This Deed is being delivered in fulfillment of Grantor's obligations under and is subject to all the terms, provisions, covenants, conditions and restrictions contained in that certain Development Agreement executed by Grantor and Grantee herein, dated the _ day of , 20_ (the Agreement), a memorandum of which was recorded on the _ day of ,20_, in the records of the Recorder of Dubuque County, Iowa, Instrument Number Promptly after completion of the improvements in accordance with the 19 provIsions of the Agreement, Grantor will furnish Grantee with a Certificate of Completion in the form set forth in the Agreement. Such certification by Grantor shall be, and the certification itself shall so state, a conclusive determination of satisfaction and termination of the agreements and covenants of the Agreement and of this Deed with respect to the obligation of Grantee, and its successors and assigns, to construct improvements and the dates for the beginning and completion thereof, it being the intention of the parties that upon the granting and filing of the Certificate of Completion that all restrictions and reservations of title contained in this Deed be forever released and terminated and that any remaining obligations of Grantee pursuant to the Agreement shall be personal only. All certifications provided for herein shall be in such form as will enable them to be recorded with the County Recorder of Dubuque, Iowa. If Grantor shall refuse or fail to provide any such certification in accordance with the provisions of the Agreement and this Deed, Grantor shall, within twenty days after written request by Grantee, provide Grantee with a written statement indicating in adequate detail in what respects Grantee has failed to complete the improvements in accordance with the provisions of the Agreement or is otherwise in default, and what measures or acts will be necessary, in the opinion of Grantor, for Grantee to take or perform in order to obtain such certification. In the event that an Event of Default occurs under the Agreement and Grantee herein shall fail to cure such default within the period and in the manner stated in the Agreement, then Grantor shall have the right to re-enter and take possession of the Property and to terminate and revest in Grantor the estate conveyed by this Deed to Grantee, its assigns and successors in interest, in accordance with the terms of the Agreement. None of the provisions of the Agreement shall be deemed merged in, affected or impaired by this Deed. Grantor hereby covenants to warrant and defend the said premises against the lawful claims of all persons whomsoever claiming by, through and under it. Dated this of ,20_ at Dubuque, Iowa. CITY OF DUBUQUE IOWA Attest: By: Roy D. Buol, Mayor By: Jeanne F. Schneider, City Clerk 20 STATE OF IOWA ) ) ) SS COUNTY OF DUBUQUE On this _ day of ,20__ before me a Notary Public in and for said County, personally appeared Roy D. Buol and Jeanne F. Schneider to me personally known, who being duly sworn, did say that they are the Mayor and City Clerk, respectively of the City of Dubuque, Iowa, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to the foregoing 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 in and for Dubuque County, Iowa 21 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 was made regarding the following described premises: The Development Agreement is dated for reference purposes the _ day of , 20_, 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 ,20_ CITY OF DUBUQUE, IOWA By: Roy D. Buol, Mayor 23 By: Jeanne F. Schneider, City Clerk STATE OF IOWA 55: DUBUQUE COUNTY 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 Jeanne F. Schneider, 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, State of Iowa STATE OF IOWA 55: DUBUQUE COUNTY On this _ day of , 20)), before me, a Notary Public in and for the State of Iowa, in and for said county, personally appeared to me personally known, who being by me duly sworn did say that they are the 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. 24 City \ltllldgl'r'S UHill' ')(1 \\'l'St Uth Strl'l'l DuhuLJlll', 10\\'<1 52001-.~kb..J (563) SWI--lllO phl'lle (:;h~) 589-.11-111 (,1\ ctvnlgfil,ci tv()hllllluqu(' ,( lrg ]'IIEClTYO/; <. '~~ i )LHllcnJr ~ ~~~ (DATE) Dear 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 to the best of my knowledge: 1. No action in condemnation, eminent domain or public taking proceedings are now pending or contemplated against the Property; 2. No ordinance or hearing is now or before any local governmental body which either contemplates or authorizes any public improvements or special tax levies, the cost of which may be assessed against Property; 3. City has good and marketable fee simple title interest to the Property; 4. There are no notices, orders, suits, judgments or other proceedings relating to fire, building, zoning, air pollution, health violations or other matters that have not been corrected. City has notified Developer in writing of any past notices, orders, suits, judgments or other proceedings relating to fire, building, zoning, air pollution or health violations as they relate to the Property of which it has actual notice; 5. The Property will as of the date of closing be free and clear of all liens, security interests, encumbrances; 6. 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 the time of closing 27 confirming the representation contained herein; 7. All City utilities necessary for the development and use of the Property as provided in the Agreement adjoin the Property, and McGraw-Hili shall have the right to tie into said utilities upon payment of City's connection fees; 8. The Property is free and clear of any occupants, and no party has a lease to or other occupancy or contract right in the Property which shall in anyway be binding upon Developer; 9. City shall exercise its best efforts to cooperate with Developer in the development process; 10. City shall exercise its best efforts to resolve any disputes arising during the development process in a reasonable and prompt fashion; 11. With respect to the period during which City has owned or occupied the Property, and to City's knowledge after reasonable investigation with respect to the time before City owned or occupied the Property, no person or entity has caused or permitted materials to be stored, deposited, treated, recycled, or disposed of on, under or at the Property other than as described in the environmental reports that City has provided to Developer, which materials, if known to be present, would require cleanup, removal or some other remedial action under environmental laws; 12. There are no fees or other charges payable by Developer for City utilities serving the Property, as a result of utility hook-ups, other than the fees for connecting to and installing meters with regard to such utilities; and 13. The property is properly zoned for the use described in the Agreement. Sincerely, Michael C. Van Milligen City Manager MCVM:jh F:IUSERSIDHeiarlKunkelBoundslKunkel Bounds Development Agreement-FINAL-6-2-06.doc 28