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Sustainable Neighborhood Builders, Inc. Housing Enterprise Zone Agreement AmendmentMasterpiece on the Mississippi Dubuque band AI- America City IIIii! 2007 • 2012 • 2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amendment to Housing Enterprise Zone Program Agreement Number 09 -HEZ -051 for Sustainable Neighborhood Builders, Inc. DATE: August 23, 2013 Acting Economic Development Director Phil Wagner recommends City Council concurrence with the Enterprise Zone Commission approval and execution of Contract Amendment Number 1, and authorizing the Mayor to execute Contract Amendment Number 2 to the Housing Enterprise Zone Program Agreement by and among the Iowa Economic Development Authority, the City and Sustainable Neighborhood Builders, Inc. Amendment Number 1 changed the agreement expiration date until the point at which all 130 units have been certified for occupancy. Contract Amendment Number 1 was executed in September 2012 by the Vice Chair of the Enterprise Zone Commission. Amendment Number 2 changes the developer, or housing business on the contract from Sustainable Neighborhood Builders, Inc. to Novelty Iron Landlord, LLC, adjusts the number of multi - family housing units from 130 to 76, revises the project budget from $38.85 million to $28.97 million, with $13.7 million eligible for the calculation of an investment tax credit, and the contract acknowledges the existence of five multi - family units in the project that are available at income qualified rental rates. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Phil Wagner, Acting Economic Development Director Masterpiece on the Mississippi Dubuque All- America City 1 2007 • 2012 • 2013 TO: Michael Van Milligen, City Manager FROM: Phil Wagner, Acting Economic Development Director SUBJECT: Amendments to Housing Enterprise Zone Program Agreement Number 09 -HEZ -051 for Sustainable Neighborhood Builders, Inc. DATE: August 29, 2013 Introduction This memorandum transmits for City Council ratification of two amendments to Housing Enterprise Zone Program Agreement Number 09 -HEZ -051 by and among the Iowa Economic Development Authority, the City and Sustainable Neighborhood Builders Inc. Background On June 17, 2009, the City Enterprise Zone Commission approved an application to the Iowa Economic Development Authority (then the Iowa Economic Development Department) for Housing Enterprise Zone benefits related to the redevelopment of the Novelty Iron Works Building located at 1079 Elm Street, and the creation of 130 multi- family units. After State approval of the application, Agreement Number 09 -HEZ -051 was sent back to the City for authorization. On August 3, 2009, the City Council approved Resolution No. 266 -09 authorizing the execution of the contract. Since that time, Agreement Number 09 -HEZ -051 has experienced two amendments. The first amendment, approved by the City Enterprise Zone Commission on July 19, 2012, changed the agreement expiration date until the point at which all 130 units have been certified for occupancy. Contract Amendment Number 1 was executed in September by the Vice Chair of the Commission. The second amendment was approved by the Enterprise Zone Commission on July 16, 2013. The amendment has proposed several changes to the contract. The developer, or housing business on the contract, would be changed from Sustainable Neighborhood Builders, Inc. to Novelty Iron Landlord, LLC, the number of multi - family housing units would be adjusted from 130 to 76, the project budget would be revised from $38.85 million to $28.97 million with $13.7 million eligible for the calculation of an investment tax credit and the contract would acknowledge the existence of five multi - family units in the project that are available at income qualified rental rates. An Enterprise Zone resolution and letter detailing the requested changes for the amendment have been sent to the IEDA. Additionally, at the request of the Enterprise Zone Commission, the developer's attorney has written a letter explaining the various funding sources involved with the project and stating how investment tax credits were calculated in accordance with the direction provided by IEDA staff. All three documents were sent to the IEDA on August 21, 2013 for processing. Full execution of Contract Amendment No. 2, which is authorized in the attached resolution, will be required prior to the developer's closing on the property later in September. City staff anticipates receiving Contract Amendment No. 2 from the IEDA shortly. Discussion The Iowa Economic Development Authority allows for final execution of Enterprise Zone contract documents by either the Enterprise Zone Commission or the City Council. In keeping consistent with Agreement Number 09 -HEZ -051, which was originally executed by the City Council, the attached resolution would allow for the mayor to execute Contract Amendment Number 2 upon receipt of documents from the Iowa Economic Development Authority. Additionally, the resolution provides the opportunity for City Council concurrence on Contract Amendment Number 1, which was approved and executed by the Enterprise Zone Commission. Recommendation I recommend approval of the proposed resolution, providing City Council concurrence with the Enterprise Zone Commission approval and execution of Contract Amendment Number 1 to Enterprise Agreement Number 09- HEZ -051, while authorizing the Mayor to execute Contract Amendment Number 2 to EZ Agreement Number 09- HEZ -051. attachments F:IUSERS\Econ DevWovelty Iron Works\Enterprise Zone120130829 Ratification of EZ amendments memo.docx RESOLUTION NO. 283 -13 RESOLUTION PROVIDING CONCURRENCE TO ENTERPRISE ZONE COMMISSION APPROVAL OF CONTRACT AMENDMENT NUMBER 1 TO ENTERPRISE ZONE AGREEMENT NUMBER 09 -HEZ -051 WHILE APPROVING THE APPLICATION FOR CONTRACT AMENDMENT NUMBER 2 TO ENTERPRISE ZONE AGREEMENT NUMBER 09 -HEZ -051 AND AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NUMBER 2 UPON RECEIPT OF CONTRACT DOCUMENTS FROM THE IOWA ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the City of Dubuque has established two Enterprise Zones and an Enterprise Zone Commission; and WHEREAS, the Enterprise Zone Commission on June 17, 2009 approved the application of Sustainable Neighborhood Builders, Inc. for Housing Enterprise Zone benefits; and WHEREAS, Enterprise Zone Agreement Number 09- HEZ -51 (the Agreement), between the City, Sustainable Neighborhood Builders, Inc. and the Iowa Economic Development Authority (IEDA) was approved by the City Council on August 3, 2009; and WHEREAS, the application for Amendment Number 1 to the Contract was approved by the Enterprise Zone Commission on July 19, 2012 and later, the Commission executed the contract documents upon receipt from the IEDA; and WHEREAS, Amendment Number 1 allowed for the Agreement to remain in effect until the creation of 130 multi - family units; and WHEREAS, the application for Amendment Number 2 to the Contract was approved by the Enterprise Zone Commission on July 16, 2013; and WHEREAS, Amendment Number 2 has not yet been approved by the IEDA; and WHEREAS, Amendment Number 2 would amend the housing business in the Agreement from Sustainable Neighborhood Builders, Inc. to Novelty Iron Landlord LLC, the number of multi - family units from 130 to 76, the project investment from $38.85 million to $28.97 million with $13.7 million eligible for the enterprise zone benefits, and acknowledge that five of the units will be available for income qualified rates; and WHEREAS, the IEDA allows local execution of Enterprise Zone Contract documents by the City Council or Enterprise Zone Commission. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF DUBUQUE, IOWA AS FOLLOWS: Section 1. That the City Council concurs with the Enterprise Zone Commission regarding the approval of Amendment Number 1 to Enterprise Zone Agreement Number 09- H EZ -51. Section 2. That the City Council finds that the application for the proposed Amendment Number 2 to Enterprise Zone Agreement Number 09- HEZ -51 is acceptable and necessary to the growth and development of the city. Section 3. That the Mayor is authorized and directed to execute Amendment Number 2 on behalf of the City of Dubuque upon receipt of contract documents from the Iowa Economic Development Authority. Passed, approved and adopted this 3rd day of Sept g tuber, 2013. Attest: Kevin Fi stahl, City Clerk 9 Roy D. Bt.i I, Mayor F: \USERS \Econ Dev \Novelty Iron Works \Enterprise Zone\20130903 Ratification of EZ amendment resolution.docx CITY OF DUBUQUE, IOWA ENTERPRISE ZONE COMMISSION RESOLUTION 04 -2013 A RESOLUTION AMENDING THE HOUSING BUSINESS FROM SUSTAINABLE NEIGBORHOOD BUILDERS, INC TO NOVELTY IRON LANDLORD LLC, THE NUMBER OF MULTI - FAMILY HOUSING UNITS FROM 130 TO 76, THE PROJECT INVESTMENT FROM $38.85 MILLION TO $28.97 MILLION WITH FURTHER DOCUMENTATION ON THE SOURCES OF PRIVATE FINANCING ELIGIBLE FOR ENTERPRISE ZONE BENEFITS AND ACKNOWLEDING FIVE OF THE UNITS WILL BE AVAILABLE FOR AN INCOME QUALIFIED RATES, ALL IN ENTERPRISE ZONE AGREEMENT NO. 09 -HEZ -051, ASSOCIATED WITH REHABILITATION WORK AT 333 EAST 10th STREET. Whereas 333 East 10th Street is located in Enterprise Zone 1; and Whereas, the City's Enterprise Zone Commission has been created by City Ordinance to review applications for tax incentives and assistance based on criteria specified by law and to transmit its recommendation to the Iowa Economic Development Authority (IEDA); and Whereas, the IEDA (then the Iowa Department of Economic Development) approved a Housing Enterprise Zone Agreement No. 09 -HEZ -051, with the City and Sustainable Neighborhood Builders, Inc. on June 23, 2009 for the project with the developer's application attached to the contract as Exhibit A; and Whereas, the IEDA authorized Contract Amendment No. 1 on September 12, 2012, allowing for the agreement to remain in effect until the completion of all 130 multi - family units in the project are certified for occupancy; and Whereas, Sustainable Neighborhood Builders, Inc. has requested the Housing Business listed on Agreement No. 09 -HEZ -051 and Amendment No. 1 be changed to Novelty Iron Landlord LLC, for the purposes of aligning various funding sources under one project name; and Whereas, Sustainable Neighborhood Builders, Inc. has also requested a reduction in the number of multi - family units required in the project from 130 units to 76 units, for the purposes of completing rehabilitation in a more timely manner; and Whereas, Sustainable Neighborhood Builders, Inc. has also requested the total project cost be reduced from $38.85 million to $28.97 million, and acknowledges the decrease in multi - family units and overall project scope will result in the reduction of housing enterprise zone benefits available; and Whereas, Sustainable Neighborhood Builders, Inc. has claimed $13.7 million as financed debt on the project that is eligible for the calculation of investment tax credits; and Whereas, the City of Dubuque has requested a letter from a party affiliated with Sustainable Neighborhood Builders, Inc. or Novelty Iron Landlord LLC providing the sources of the $19.7 million financed debt with justification that the total could be used in calculation of investment tax credits and has requested that letter be sent to the Iowa Economic Development Authority; and Whereas, Sustainable Neighborhood Builders, Inc. has also requested the amount of income qualified units be reduced from 20 percent to approximately 7 percent, amounting to five units; and Whereas, the IEDA will consider amendment encompassing the aforementioned changes upon request by the Enterprise Zone Commission. NOW, THEREFORE, BE IT RESOLVED BY THE ENTERPRISE ZONE COMMISSION OF THE CITY OF DUBUQUE, IOWA: Section 1. That a request has been made to the IEDA to amend Housing Enterprise Zone Agreement No. 09- HEZ -51 and Amendment No. 1 to remove Sustainable Neighborhood Builders Inc. in favor of Novelty Iron Landlord LLC, as the Housing Business on the contract. Section 2. That a request has been made to the IEDA to amend Housing Enterprise Zone Agreement No. 09- HEZ -51 and Amendment No. 1 to reduce the number of multi - family units required in the project from 130 multi - family units to 76 multi - family units. Section 3. That a request has been made to the IEDA to amend Housing Enterprise Zone Agreement No. 09- HEZ -51 to reduce the project cost from $38.85 million to $28.97 million, reflecting $13.7 million as financed debt on the project. Section 4. That the City will receive a letter from a representative of Novelty Iron Landlord describing the debt eligible for the calculation of investment tax credits provided by the IEDA. The City will forward that letter to the I EDA upon execution of this resolution. Section 4. That a request has been made to the IEDA to amend Housing Enterprise Zone Agreement No. 09- HEZ -51 reflecting five of the multi - family units will be available for income qualified tenants. Passed, approved and adopted this 16th day of July, 2013. Richard Stein Chair F: \USERS \Econ Dev \Novelty Iron Works \Enterprise Zone\20130716 EZ resolution amendment no. 2.docx Economic Development Department City Hall - Second Floor 50 West 13th Street Dubuque, Iowa 52001 -4864 (563) 589 -4393 office (563) 589 -1733 fax August 20, 2013 Jeremy Babcock Iowa Economic Development Authority 200 East Grand Avenue Des Moines, IA 50309 -1819 RE: Housing Enterprise Zone Contract No. 09- HEZ -51 Amendment No. 2 Dear Jeremy: THE CITY OF On behalf of Bob Johnson, owner of the Novelty Iron Works Building in Dubuque's Historic Millwork District, the City of Dubuque Enterprise Zone Commission would like to request the Iowa Economic Development Authority authorize Amendment No. 2 to Contract No. 09- HEZ -51 in order to incorporate the following changes: • The name of the Housing Business is Novelty Iron Landlord LLC. • The project address is 333 East 10th Street. • The project will create 76 multi - family units. • A total of 93% of the units will be market rate. The remaining will have income qualifications. • The overall project budget is $28.97 million with $13.7 of privately financed debt eligible for investment tax credits (see attached letter from Novelty Iron Landlord LLC for verification.) • Project pre- construction, planning and design began in June 2010. Actual construction will commence August 2013. Thank you for your consideration. Should you have any questions, please contact Phil Wagner at (563) 589 -4213. Sincerely, i Richard Stein, Chair City of Dubuque Enterprise Zone Commission Service People Integrity Responsibility Innovation Teamwork DAMsBRo LAW FIRM REPLY TO DES MOINES OFFICE August 20, 2013 City of Dubuque, Iowa 50 West 13th Street Dubuque, Iowa VIA -E -MAIL Re: Novelty Iron Works (the "Project ") To Mayor Buol and Members of the City Council: As you are aware, our client, Sustainable Neighborhood Builders, Inc. entered into a Housing Enterprise Zone program agreement with the Iowa Department of Economic Development (n/k.a the Iowa Economic Development Authority) dated June 23, 2009 (the "EZ Contract "). To facilitate financing sources for the Project (described below), the Project will be completed by Novelty Iron Landlord LLC (the "Master Landlord "). It is contemplated that Sustainable Neighborhood Builders, Inc. will contract with the Master Landlord to provide certain development services to the Master Landlord, but the Master Landlord will be the owner and principal in the Project. Therefore, we believe that it is appropriate to change the party to the EZ Contract from Sustainable Neighborhood Builders, Inc. to the Master Landlord. Any such change would require the consent of the City of Dubuque, which we hereby request. In addition, we want to address concerns that were raised by the Enterprise Zone Commission at it's recent meeting. It is my understanding that the Enterprise Zone Commission was concerned that a portion of the Project's expenditures would not qualify for investment eligible to generate Enterprise Zone Tax Credits. We believe that concern is rooted in Section 15E.193B(8) of the Iowa Code, which provides that in determining the amount of the Enterprise Zone Tax Credits available, the Iowa Economic Development Authority will not include the portion of the project cost financed through federal, state and local government tax credits, grants and forgivable loans. DAVIS BROWN KOEHN SHORS S, ROBERTS P.C. #2355530 PHONE 51 5.288.2500 FIRM FAX 51 5.243.0654 WEB WWW.DAVISBROWNLAW.COM THE DAVIS BROWN TOWER 215 10- STREET, STE. 1 300 DES MOINES, IA 50309 THE HIGHLAND BUILDING 4201 WESTOWN PKWY, STE. 300 WEST DES MOINES, IA 50266 THE AMES OFFICE 2605 NORTHRIDGE PKWY. STE. 101 AMES, IA 500 1 0 City of Dubuque, Iowa July 26, 2013 Page 2 More particularly, we believe that the Enterprise Zone Commission is concerned that federal New Market Tax Credits and federal Historic Tax Credits may be playing a role in the Project's financing. The Enterprise Zone Commission is correct — the Project does, indeed, involve federal New Market Tax Credits and federal Historic Tax Credits. As currently envisioned, the financing sources for the Project include the following: • Three loans from an unrelated entity (the "NMTC Lender "); • One loan from an unrelated bank (the "TIFF Loan "); • Equity from the members of the Master Landlord, including a subsidiary of the NMTC Lender; and • Various state and local incentives (including State Historic Tax Credits and the Enterprise Zone Tax Credits). The NMTC Lender is obtaining the funds that it is lending to the Project from an equity investment from another entity (the "Investment Fund "). The Investment Fund is, in turn, obtaining a portion of its funds from the use of federal tax credits and programs including, the New Market Tax Credit and federal Historic Tax Credit programs. While the Master Landlord is benefiting from these tax credit programs, the benefits are indirect. In the case of the federal New Market Tax Credits, the Master Landlord has no claim to the credits and its actions do not generate the credits. The credits are owned by the NMTC Lender and generated by the Investment Fund's investment in the NMTC Lender. In the case of the federal Historic Tax Credits, the Master Landlord is electing to forego the credits and allow a subsidiary of the NMTC Lender (Novelty Iron Master Tenant LLC) to claim the credits through what is called a pass - through agreement. The actions of the Master Landlord, however, are generating the federal Historic Tax Credits and Novelty Iron Master Tenant LLC will only be able to claim the federal Historic Tax Credits to the extent that the Master Landlord could have claimed them directly. Given the complex nature of the Project's financing, we have engaged in multiple conversations with Jeremy Babcock of the Iowa Economic Development Authority regarding the affect that the federal New Market Tax Credits and federal Historic Tax Credits will have on the Project's ability to claim Iowa Enterprise Zone Tax Credits. Our last call occured on August 16, 2013, and several representatives of the City of Dubuque participated in that call. After significant discussion of the facts, Mr. Babcock determined that federal Historic Tax Credits had a negative impact on the Project's Enterprise Zone Tax Credit base, but that the federal New Market Tax Credits did not. The basis for this distinction was that the federal Historic Tax Credits could have been claimed by the Master Landlord and were generated by its actions, while the federal New Market Tax Credits could not be claimed by and were not generated by the actions of the Master Landlord. City of Dubuque, Iowa August 20, 2013 Page 3 Based upon the foregoing, Mr. Babock determined that it would be approriate for the Project to include the full amount of its NMTC Loans, less the amount of equity received for federal Historic Tax Credit, in our Iowa Enterprise Zone Tax Credit base. Since that results in an Iowa Historic Tax Credit base in excess of the maximum Iowa Enterprise Zone Tax Credit base availible to the Master Landlord, it should not negatively impact the Project. My understanding is that the resolution reached on that call was acceptable to all parties and that no further actions is necessary. If that is incorrect or if you have questions or concerns, please let us know. Otherwise, we ask that the requested contract amendments be approved. Very truly yours, DAVIS, BROWN, KOE 1� HORS & ROBERTS, P.C. Jason . Stone IOWA ECONOMIC DEVELOPMENT AUTHORITY 200 East Grand Avenue I Des Moines, Iowa 50309 USA I Phone: 515.725.3000 iowaeconomicdevelopment.com September 12, 2012 Bob Johnson Sustainable Neighborhood Builders, Inc. 1079 Elm Street Dubuque, IA 52001 -3704 RE: Enterprise Zone Program, Housing component Agreement # 09 -HEZ -051 Dear Mr. Johnson: K)VVA economic development Enclosed is a copy of the signed amended Housing Enterprise Zone Investment Tax Credit. The housing business may claim an investment tax credit equal to 10% of the new investment directly related to the construction /rehabilitation of the housing project. To claim the tax credit a copy of the enclosed Tax Credit Certificate, copy of the certificate of occupancy (or equivalent documentation), completed forms IA 148 Tax Credits Schedule and 3468 Investment Tax Credit will need to be attached to the Iowa Income Tax Return. These forms may also be found at the Department of Revenue's website www.state.iia.us /tax. Please note the following: • The new investment that may be used to compute the tax credit shall not exceed the new investment used for the first $140,000 of value for each unit. • In determining the tax credit, new investment financed through federal, state, and local government tax credits, grants, and forgivable loans cannot be included. • This tax credit may be carried forward for up to seven years or until depleted. Please contact the Iowa Department of Revenue if you have questions about claiming the investment tax credit. Thank you for investing in Iowa! Jeremy Ba ' ock Project Manager Enclosure Cc: David Heiar, City of Dubuque n File Governor Terry E. Branstad I Lt. Governor Kim Reynolds I Director Debi V. Durham IOWA ECONOMIC DEVELOPMENT AUTHORITY HOUSING ENTE:=APRISE ZONE PROGRAM AGREEMENT CONTRACT AMENDMENT NUMBER: 1 EZ AGREEMENT NUMBER: 09 -HEZ -051 THIS AMENDMENT is made by and among the Iowa Economic Development Authority, 200 East Grand Avenue, Des Moines, Iowa 50309 ( "Department" or "IEDA "), City of Dubuque, 50 W 13th ST, Dubuque, IA 52001, ( "Community ") and Sustainable Neighborhood Builders, Inc., 1079 Elm ST, Dubuque, IA 52001 -3704, ( "Housing Business "). Contract Number 09 -HEZ -051 is hereby modified as follows. "1.4 "Agreement Expiration Date" means the date this Agreement ceases to be in force and effect. This Agreement shall remain in effect until IEDA receives written verification that all 130 units have been certified for occupancy." Except as otherwise revised above, the terms, provisions, and conditions of Contract Number 09 -HEZ -051 remain unchanged and are in full force and effect. FOR THE COMMUNITY: City of Dubuque Signature Deborah Durham, Director Doug Stillings, Vice Chair Type or Print Name, Title se Zone Commission FOR THE HOUSING BUSINESS: Sus lable Neighborhood Builders, Inc. f y/ ignature Type or Print Name, Title HEZ Format revised 10/2005 IOWA ECONOMIC DEVELOPMENT AUTHORITY 200 East Grand Avenue 1 Des Moines, Iowa 50309 USA 1 Phone: 515.725.3000 iowaeconomicdevelopment.com January '16, 2014 Bob Johnson Warehouse Trust, LLC 1079 Elm Street Dubuque, IA 52001 -3704 RE: Enterprise Zone Program, Housing component Agreement # 09 -HEZ -051 I(JWA economic development Dear Mr. Johnson: Enclosed is a copy.of the signed amendment to the agreement authorizing the housing business, Warehouse Trust, LLC, to receive Enterprise Zone benefits. A copy has been sent to the City of Dubuque and to the local enterprise commission. The original document will be on file with the Iowa Economic Development Authority. Investment Tax Credit The housing business may claim an investment tax credit equal to 10 %.of the new investment directly related to the construction /rehabilitation of the housing project. To claim the tax credit a copy of the enclosed Tax Credit Certificate, copy of the certificate of occupancy (or equivalent documentation), completed forms IA 148 Tax Credits Schedule and 3468 Investment Tax Credit will need to be attached to the Iowa Income Tax Return. These forms may also be found at the Department of Revenue's website www.state.ia.us /tax. Please note the following: • The new investment that may be used to compute the tax credit shall not exceed the new investment used for the first $140,000 of value for each unit. • In determining the tax credit, new investment financed through federal, state, and local government tax credits, grants, and forgivable loans cannot be included. o This tax credit may be carried forward for up to seven years or until depleted. Please contact the Iowa Department of Revenue if you have questions about claiming the investment tax credit. Reporting Requirement As a participant in Iowa's Enterprise Zone program, the housing business will be required to complete an Annual Compliance Report for every year that the housing business is under contract with IEDA. This report will be due 30 days after the end of the calendar year. Governor Terry E. Branstad 1 Lt. Governor Kim Reynolds 1 Director Debi V. Durham Project Completion / Certificate of Occupancy The housing business will remain under contract until IEDA receives written verification that all of the proposed units have been certified for occupancy. If a city or county does not have a formal process of issuing a certificate of occupancy then a signed and dated statement from the enterprise zone commission stating that to the best of their knowledge that the project is completed and ready for occupancy. It is left up to the enterprise zone board members how they want to determine when a project is completed and ready for occupancy. Please note the project must be completed within two years of the start of construction /rehabilitation, Thank you for investing in Iowa! Jeremy $c•ck Project Manager Enclosure cc: Phil Wagner, City of Dubuque ?U File IOWA ECONOMIC DEVELOPMENT AUTHORITY HOUSING ENTERPRISE ZONE PROGRAM AGREEMENT CONTRACT AMENDMENT NUMBER: 2 EZ AGREEMENT NUMBER: 09 -HEZ -051 THIS AMENDMENT is made by and among the Iowa Economic Development Authority, 200 East Grand Avenue, Des Moines, Iowa 50309 ( "Department" or "IEDA "), City of Dubuque, 50 W 13th ST, Dubuque, IA 52001, ( "Community ") and Warehouse Trust, LLC, 1079 Elm Street, Dubuque, IA 52001 -3704, ( "Housing Business "). Contract Number 09 -HEZ -051 is hereby modified as follows: "THIS ENTERPRISE ZONE AGREEMENT is made by and among the Iowa Economic Development Authority, 200 East Grand Avenue, Des Moines, Iowa 50309 ( "Department" or "IEDA "), City of Dubuque, 50 W 13th ST, Dubuque, IA 52001, ( "Community") and Sustainable Neighborhood Builders, Inc. Warehouse Trust, LLC, 1079 Elm Street, Dubuque, IA 52001 -3704, ( "Housing Business ")." "1.4 "Agreement Expiration Date" means the date this Agreement ceases to be in force and effect. This Agreement shall remain in effect until IEDA receives written verification that all 430 76 units have been certified for occupancy." The Housing Business must rehabilitate 4-30 76 multi - family units in the Dubuque EZ -1A Enterprise Zone." Except as otherwise revised above, the terms, provisions, and conditions of Contract Number 09- HEZ -051 remain unchanged and are in full force and effect: FOR THE COMMUNITY: FOR IEDA: City of Dubuque Signature 7 Roy D. Buol, Mayor Type or Print Name, Title FOR THE HOUSING BUSINESS: Warehouse Trust, LLC t / ./ Signature L f1?�tn1.4�Z Type or Print Name, Title HEZ Neborah . Durham Format revised 10/2005