Linseed Oil -Assignment of Development AgreementCopyright 2014
City of Dubuque ITEM# 23.
ITEM TITLE: Linseed Oil - Assignment of Development Agreement
SUMMARY: City Manager recommending approval of the assignment of the
Development Agreement with Wilmac Property Company to Betty Building,
LLC for the property located at 151 East 9th Street.
SUGGESTED DISPOSITION:
RESOLUTION Approving the assignment of the Development Agreement
between the City of Dubuque and Wilmac Property Company from Wilmac
Property Company to Betty Building, LLC
Suggested Disposition: Receive and File; Adopt Resolution(s)
ATTACHMENTS:
Description Type
❑ Linseed Assignment of Development Agreement -MVM Memo City Manager Memo
❑ Staff Memo Staff Memo
❑ Linseed Oil- Assignment DA Supporting Docunientalion
❑ Resolution - Linseed Assignment DA Resolutions
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
2007 • 2012 • 2013
SUBJECT: Assignment of Development Agreement with Wilmac Property Company
to Betty Building, LLC to Redevelop Property at 151 East 9th Street
(Linseed Oil Paintworks Building)
DATE: October 2, 2014
Economic Development Director Maurice Jones recommends City Council approval of
the assignment of the Development Agreement with Wilmac Property Company to Betty
Building, LLC for the property located at 151 East 9th Street.
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:
A
2007 • 2 12 • 2013
Michael Van Milligen, City Manager
Economic Development Department
50 West 13th Street
Dubuque, Iowa 52001-4864
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
Maurice Jones, Economic Development Director
SUBJECT: Assignment of Development Agreement with Wilmac Property
Company to Betty Building, LLC to redevelop property at 151
East 9th Street (Linseed Oil Paintworks Building)
DATE: October 1, 2014
INTRODUCTION
This memorandum is a request for the City Council to approve the assignment of the
Development Agreement with Wilmac Property Company for the property located at
151 East 9th Street to Betty Building, LLC.
BACKGROUND
On March 7th, 2013 the City Council approved a Development Agreement with
Wilmac Property Company for the rehabilitation of 151 E. 9th Street (known as the
Linseed Oil Paintworks Building) into residential apartments.
The Linseed Oil Paintworks Building will include 16 new residential units. The
building will also have a handicapped accessible social area and garden on the roof.
The Developer is also looking into a small solar system to supplement the electrical
system. The Developer is estimating the total cost of the project to be $5,485,347.
In addition to other funding sources, the project will be using State Historic Tax
Credits which are being reserved.
DISCUSSION
Wilmac Property Company owns several properties in the Millwork District. The
Linseed Oil Paintworks rehabilitation project is bringing tax credit investors into the
ownership structure, so it is creating a transaction specific entity for the project that
will not affect its other properties.
RECOMMENDATION/ ACTION STEP
Based on the critical need for downtown housing and the City's goal to assist in
redeveloping the Millwork District, I recommend the City Council adopts the attached
resolution to assign the Development Agreement from Wilmac Property Company to
Betty Building, LLC.
Prepared by Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
RESOLUTION NO. 308-14
APPROVING THE ASSIGNMENT OF THE DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF DUBUQUE AND WILMAC PROPERTY COMPANY FROM
WILMAC PROPERTY COMPANY TO BETTY BUILDING, LLC.
WHEREAS, the City Council of the City of Dubuque, by Resolution No. 95-13,
dated March 18, 2013 entered into a Development Agreement with Wilmac Property
Company (Developer), and;
WHEREAS, pursuant to the Development Agreement Developer is required to
provide certain improvements to real estate owned by Wilmac Property Company,
known locally as Linseed Oil Paintworks Company Building located at 151 East 9th
Street, Dubuque, Iowa (the Property); and
WHEREAS, in order to facilitate rehabilitation of the Property, and in particular to
accommodate the use of historic tax credits, the Property will be or has been deeded to
Betty Building, LLC, an Iowa limited liability company; and
WHEREAS, Developer desires to assign the Development Agreement to Betty
Building, LLC pursuant to the Assignment attached hereto in order to facilitate the
rehabilitation of the Property; and
WHEREAS, the City Council finds that it is in the best interests of the City of
Dubuque to approve the Assignment.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Assignment is hereby approved.
Section 2. The Mayor is hereby authorized and directed to execute the
Assignment on behalf of the City of Dubuque.
Passed, approved and adopted the 6th day of October, 2014.
Attest:
Kevin irnstahl, City
41,41
Roy D. poi, Mayor
F:\USERS\tsteckle\Lindahl\Resolutions\Resolution Assignment Linseed oil to Betty Bldg_100214.docx
ASSIGNMENT OF DEVELOPMENT AGREEMENT
This Assignment of Development Agreement is entered into thiseii day of October,
2014 by and between Wilmac Property Company, an Iowa business corporation, ("Wilmac")
Betty Building, LLC, an Iowa limited liability company ("Betty") and the City of Dubuque, Iowa
("City").
RECITALS
A. City and Wilmac entered into a Development Agreement dated March 7, 2013 (the
"Development Agreement");
B. Pursuant to the terms of the Development Agreement Wilmac was to provide certain
improvements to real estate owned by Wilmac, such property locally known as 151 East 9th St.,
Dubuque, Iowa and legally described as: City Lot 379 and the South 15 feet of City Lot 380 in
Dubuque, Iowa (the "Property"). Subject to the requirements and restrictions of that
Development Agreement City agreed to take certain actions to aid in the rehabilitation of the
Property.
C. In order to facilitate rehabilitation of the Property, and in particular to accommodate
the use of historic tax credits, the Property will be or has been deeded to Betty. As such Wilmac
desires to assign all of its rights and obligations under the Development Agreement to Betty and
Betty desires to accept such rights and obligations;
D. The parties desire to set forth their agreement regarding such assignment in writing.
Therefore, in consideration of the mutual terms and covenants herein, the parties agree as
follows:
AGREEMENT
1. Assignment. Wilmac does hereby assign, transfer and convey to Betty each and every
right and obligation of Wilmac in and under the Development Agreement.
2. Acceptance. Betty does hereby accept all rights and obligations of Wilmac under the
Development Agreement and agrees to be bound by such agreement and to be responsible for
every obligation of Developer thereunder.
3. Consent. City does hereby consent to the assignment as set forth herein and releases
Wilmac from any obligations that accrue under the terms of the Development Agreement after
the date hereof
4. Miscellaneous. This agreement is binding upon the parties hereto and their successors
and permitted assigns and shall be governed by and construed under the laws of the state of Iowa.
City of Duuq, Iowa
By:
Roy D. uol, Mayor
Wilmac Property Company
By:
Betty Building, LLC
By: