Paragon Square, LLC_Rescinding Development AgreementMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
band
AI- America City
1
2007 • 2012 • 2013
SUBJECT: Rescinding Resolution No. 281 -11 Approving the Development Agreement
with Paragon Square, LLC for the Holy Ghost Properties
DATE: February 11, 2014
On August 15, 2011, the City Council approved Resolution No. 281 -11, which approved the
Development Agreement with Paragon Square, LLC for the rehabilitation of the former Holy
Ghost convent and school, at 2887 and 2901 Central Avenue, respectively. Subsequently, the
mayor signed the development agreement which authorized the use of a tax increment
financing bond to help fund the estimated $2.5 million in improvements needed to create 27
market rate units. However the development agreement was never signed by Paragon Square
representatives and therefore never executed. Several months after the approval, staff learned
that Paragon Square could not secure financing and the project would not proceed under the
current development group.
Economic Development Director Maurice Jones recommends the City Council rescind
Resolution No. 281 -11 which approved the Development Agreement with Paragon
Square, LLC for property located at 2887 and 2901 Central Avenue.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
Masterpiece on the Mississippi
TO:
FROM: Maurice Jones, Economic Development Director
SUBJECT: Rescinding a Resolution No. 281 -11 Approving the Development Agreement with
Paragon Square, LLC for the Holy Ghost Properties.
Michael Van Milligen, City Manager
Dubuque
battri
All- America City
1 I
2007 • 2012 • 2013
DATE: February 11, 2014
INTRODUCTION
This memorandum presents for City Council approval a resolution rescinding Resolution No.
281 -11 which approved the Development Agreement with Paragon Square, LLC for property
located at 2887 and 2901 Central Avenue, otherwise known as the Holy Ghost properties.
BACKGROUND
On August 15, 2011 the City Council approved Resolution No. 281 -11, which approved the
Development Agreement with Paragon Square, LLC for the rehabilitation of the former Holy
Ghost convent and school, at 2887 and 2901 Central Avenue, respectively. Subsequently, the
mayor signed the development agreement which authorized the use of a tax increment
financing bond to help fund the estimated $2.5 million in improvements needed to create 27
market rate units. However the development agreement was never signed by Paragon Square
representatives and therefore never executed. Several months after the approval, staff learned
that Paragon Square could not secure financing and the project would not proceed under the
current development group.
DISCUSSION
Since learning that Paragon Square would not develop the Holy Ghost properties, staff has
marketed the property to numerous potential developers. Recently, staff has negotiated a draft
development agreement with a developer that has an option to purchase the property. However
before that agreement can go forward, the City Attorney has recommended the resolution
approving the original development agreement for the property, Resolution No. 281 -11, be
rescinded.
RECOMMENDATION
recommend that the City Council approve Resolution No. 281 -11, which approved the
Development Agreement with Paragon Square, LLC, for the rehabilitation of the Holy Ghost
properties.
ACTION STEP
The action step for the Council is to adopt the attached resolution.
F: \USERS \Econ Dev \Holy Ghost - 2905 Central \20140211 Rescind resolution DA.doc
RESOLUTION NO. 38 -14
RESCINDING RESOLUTION NO. 281 -11, WHICH APPROVED THE DEVELOPMENT
AGREEMENT WITH PARAGON SQUARE, LLC FOR THE PROPERTY LOCATED AT
2887 AND 2901 CENTRAL AVENUE
Whereas, the City Council of the City of Dubuque, Iowa, has created a Downtown
Incentives Program for the purpose of stimulating reinvestment in the Holy Ghost Urban
Renewal District; and
Whereas, the City of Dubuque, Iowa is encouraging the use of financial incentives to
help finance code compliance activities and to spur redevelopment; and
Whereas, the City Council by Resolution No. 281 -11 approved a Development
Agreement on August 15, 2011 with Paragon Square, LLC for the rehabilitation of the Holy
Ghost properties, located at 2887 and 2901 Central Avenue; and
Whereas, the Development Agreement was never executed by Paragon Square, LLC,
and the City Council finds that the resolution approving the Development Agreement
should be rescinded.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. Resolution No. 281 -11 approving the Development Agreement with Paragon
Square, LLC is hereby rescinded.
Passed, approved and adopted this 17th day of February, 201
Attest:
F: \USERS \Econ Dev \Holy Ghost - 2905 Central\20140217 Rescinding DA resolution.docx
Roy D. Buol, Mayor