Harvest Kitchen & Bar_Amendment to Loan Agreement for Name ChangeTHE CITY OF
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Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amendment to Loan Agreement with Harvest Kitchen & Bar
DATE: September 11, 2014
Dubuque
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AI -America City
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2007 • 2012 • 2013
Economic Development Director Maurice Jones recommends City Council approval of
an Amendment to the July 21, 2014 Loan Agreement with Harvest Kitchen & Bar owned
by Offal Food Group, LLC changing the name of the restaurant from Harvest Kitchen &
Bar to Brazen Open Kitchen & Bar. Brazen Open Kitchen & Bar will assume all
obligations under the original Loan Agreement that were assigned to Harvest Kitchen &
Bar.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
7-
Mic ael C. Van Milligen
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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
Dubuque
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All -America City
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2007 • 2012 • 2013
Economic Development Department
50 West 13th Street
Dubuque, Iowa 52001-4864
Office (563) 589-4393
Fax (563) 589-1733
TTY (563) 690-6678
http://www.cityofdubuque.org
TO: Michael Van Miliigen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Amendment to Loan Agreement with Harvest Kitchen & Bar
DATE: September 8, 2014
INTRODUCTION
This memorandum presents for City Council consideration a name change to the Loan
Agreement with Harvest Kitchen & Bar owned by Offal Food Group, a limited liability
corporation, and other investors.
Offal Food Group, LLC has decided to change the name of their restaurant from
Harvest Kitchen & Bar to Brazen Open Kitchen & Bar.
BACKGROUND
On July 21, 2014, The City Council approved a Loan Agreement with Harvest Kitchen
and Bar for $175,000 in CDBG funding to be used as working capital for the launching
of their restaurant located in the Schmid Innovation Center, 955 Washington Street.
The Harvest Kitchen and Bar will be a unique establishment that will create a dining
experience not offered by the numerous other restaurants the area has to offer today.
The restaurant will provide a relaxing and organic atmosphere that will deliver a quality
and unique menu selection, which will be pleasing to the eye as well as the palate.
DISCUSSION
Offal Food Group, LLC has decided to change the name of the restaurant from Harvest
Kitchen & Bar to Brazen Open Kitchen & Bar. Brazen Open Kitchen & Bar will assume
all obligations under the original loan agreement that were assigned to Harvest Kitchen
& Bar.
The Company plans to create and retain 18 full- time equivalent positions whereas at
least fifty-one (51) percent of the created positions listed below will be held by or made
available to, through first consideration accommodations, persons who, at the time of
their employment, are considered by HUD to be of low or moderate income.
This loan will may be forgiven should the Company create and/or retain the positions
below. Below is a breakdown of the amount of FTE positions to be maintained by
certain dates:
Retention Date Number of FTE
Current 0
May 1, 2015 12
May 1, 2016 18
May 1, 2017 18
May 1, 2018 18
Should the Company meet all the job creation requirements, the loan will be forgiven at
the schedule below:
End of Contract Year Amount Forgiven Balance
2015 $75,000 $100,000
2016 $37,500 $62,500
2017 $37,500 $25,000
2018 $25,000 $0
RECOMMENDATION/ ACTION STEP
I recommend that the City Council approve the attached Resolution approving an
Amendment to the July 21, 2014 Loan Agreement with Offal Food Group, LLC, also
known as Harvest Kitchen & Bar to Brazen Open Kitchen & Bar.
RESOLUTION NO. 292-14
APPROVING THE FIRST AMENDMENT TO LOAN AGREEMENT BETWEEN THE
CITY OF DUBUQUE, IOWA AND HARVEST KITCHEN & BAR
Whereas, the City of Dubuque entered into a Loan Agreement with Harvest Kitchen &
Bar dated July 21, 2014; and
Whereas, Harvest Kitchen and Bar is owned by the Offal Food Group, a limited
liability corporation, and other investors; and
Whereas, Offal Food Group, LLC would like the Loan Agreement to reflect the proper
application/recipient as Offal Food Group, LLC d/b/a Brazen Open Kitchen & Bar; and
Whereas, Offal Food Group, LLC has decided to change the name of the restaurant
from Harvest Kitchen & Bar to Brazen Open Kitchen & Bar; and
Whereas, the parties have entered into the First Amendment to Loan Agreement to
reflect the foregoing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City Council of the City of Dubuque hereby approves the attached
First Amendment to Loan Agreement, and the Mayor is authorized and directed sign the
First Amendment to Loan Agreement on behalf of the City of Dubuque.
Section 2. All other terms and conditions of the Loan Agreement will remain in full
force and effect.
Passed, approved and adopted this 15th day of September, 2014.
Attest:
K •vin Firnstahl, City erk
Roy D. Buol, Mayor
CITY OF DUBUQUE, IOWA OFFAL FOOD GROUP, LLC D/B/A
BRAZEN OPEN KITCHEN & BAR
Roy D. B
Mayor
Attest:
Kim McDermott
Treasure/Accountant
FIRST AMENDMENT
TO
LOAN AGREEMENT
BETWEEN
CITY OF DUBUQUE, IOWA
AND
HARVEST KITCHEN & BAR
LOAN AGREEMENT
NUMBER: CDBG #1-2014
This First Amendment to Loan Agreement is dated for reference purposes the 15th
day of September, 2014.
Whereas, the City of Dubuque entered into a Loan Agreement with Harvest Kitchen
& Bar dated July 21, 2014; and
Whereas, Harvest Kitchen and Bar is owned by the Offal Food Group, a limited
liability corporation, and other investors; and
Whereas, Offal Food Group, LLC would like the Loan Agreement to reflect the
proper application/recipient as Offal Food Group, LLC d/b/a Brazen Open Kitchen & Bar;
and
Whereas, Offal Food Group, LLC has decided to change the name of the restaurant
from Harvest Kitchen & Bar to Brazen Open Kitchen & Bar; and
Whereas, the parties have entered into this First Amendment to reflect the
foregoing.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
Section 1. All references in the Loan Agreement to Harvest Kitchen & Bar shall
mean and refer to Offal Food Group, LLC d/b/a Brazen Open Kitchen & Bar.
Section 2. Offal Food Group, LLC d/b/a Brazen Open Kitchen & Bar assumes all
obligations under the original Loan Agreement between the City of Dubuque, Iowa and
Harvest Kitchen & Bar.
Section 3. All other terms and conditions of the Loan Agreement will remain in full
force and effect.
CITY OF DUBUQUE, IOWA
Roy D. B
Mayor
Attest:
Kevin irnstahl, City Cle
OFFAL FOOD GROUP, LLC D/B/A
BRAZEN OPEN KITCHEN & BAR
6A/1/1 Litka
Kim McDermott
Treasure/Accountant