Cottingham & Butler CEBA App.
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MEMORANDUM
November 14, 2006
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Resolution of Support for Cottingham & Butler CEBA Application
On October 2, 2006, the City Council adopted Resolution 468-06 in support of a CEBA
application on behalf of Cottingham & Butler. The resolution incorrectly stated the grant
funds previously authorized by the City Council in the Memorandum of Understanding
dated August 21, 2006.
Economic Development Director David Heiar recommends the City Council rescind
Resolution 468-06 and authorize an amended resolution of support stating the City's
financial commitment of $600,000 of loans and $40,000 of grants in addition to a
1 O-year TIF rebate for increased valuation.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
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MEMORANDUM
November 13, 2006
TO: Michael Van Milligen, City Manager
FROM: David J, Heiar, Economic Development Director ~
SUBJECT: Resolution of support for Cottingham & Butler CEBA application
INTRODUCTION
The previous resolution of support approved by the City Council incorrectly stated the
City's financial commitment to the Cottingham & Butler project
BACKGROUND
On October 2, 2006 the City Council adopted resolution 468-06 in support of a CEBA
application on behalf of Cottingham & Butler. This resolution incorrectly stated the grant
funds previously authorized by the Council in the memorandum of understanding dated
August 21, 2006. The memorandum of understanding includes a commitment to loans
and grants from the Downtown Rehabilitation Loan/Grant Program. The commitment
was for a $300,000 loan, a $10,000 Facade Grant, and a $10,000 Design Grant on
each of the two buildings being renovated by Cottingham & Butler (Security Building
and former House of China Building.)
When the resolution of support (468-06) was adopted, it stated that the City had
committed to $600,000 of loans and $20,000 of grants. It should have stated $40,000 of
grants ($20,000 per building).
RECOMMENDATION/ACTION STEP
The action step is for the City Council to adopt the attached resolution which rescinds
the previous resolution and authorizes an amended resolution of support stating the
City's financial commitment of $600,000 of loans and $40,000 of grants in addition to a
10 year TIF rebate for increased valuation.
F:\USERS\DHeiarlCottingham & ButlerlMemo of support for C-B CEBA app.doc
RESOLUTION NO. 556-06
RESCINDING RESOLUTION NO. 468-06 AND AUTHORIZING THE FILING OF AN
AMENDED COMMUNITY ECONOMIC BETTERMENT ACCOUNT (CEBA)
APPLICATION ON BEHALF OF COTTINGHAM & BUTLER, INC.
Whereas, Cottingham & Butler, Inc. has proposed the expansion of its operations in Dubuque,
Iowa; and
Whereas, the City Council of Dubuque, Iowa has considered said proposal and has
determined that the proposed project will contribute to the local economy through the creation of 90
new jobs for area residents; and
Whereas, the Iowa Department of Economic Developmenfs Community Economic Betterment
Account (CEBA) was designed to assist in the economic development efforts of local jurisdictions; and
Whereas, the City of Dubuque, Iowa is eligible to apply for funding from the CEBA program;
and
Whereas, Resolution No. 468-06 incorrectly stated the local commitment made in the CEBA
application; and
Whereas, the City Council finds that the application for participation in the Community
Economic Betterment Account program and the local match identified in the application should be
approved.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That Resolution No. 468-06 is hereby rescinded.
Section 2. That the application and the local match identified in the application as $600,000 in
loans, $40,000 in grants and a 1 O-year TIF rebate for increased building valuation estimated at one
million dollars to the company is hereby approved, subject to approval by the Iowa Department of
Economic Development.
Section 3. That the Mayor is hereby authorized to execute and the City Manager is hereby
directed to submit said application to the Iowa Department of Economic Development together with
such additional documents as may be required.
Passed, approved, and adopted this 20th day of November, 2006.
Roy D. Buol, Mayor
Attest:
Jeanne Schneider, City Clerk
F:\USERSIDHeiar\Cottingham & Butler\Resolution rescinding no 468-06.doc