Linseed Oil - Assignment of CDBG Subrecipient AgreementCopyright 2014
City of Dubuque ITEM# 24.
ITEM TITLE: Linseed Oil - Assignment of CDBG Subrecipient Agreement
SUMMARY: City Manager recommending approval of a Subrecipient Agreement with
Wilmac Property Company to facilitate the redevelopment of the Linseed
Oil Paintworks Building at 901 Jackson Street.
RESOLUTION Approving the assignment of the Community Development
Block Grant (CDBG) Housing Disaster Recovery Fund Contract
Subrecipient Agreement between the City of Dubuque and Wilmac
Property Company, from Wilmac Property Company to Merrimac
Restoration, Inc.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s)
ATTACHMENTS:
Description Type
❑ Linseed Oil Subrecipient Agreement -MVM Memo City Manager Memo
❑ Staff Memo Staff Merrc
❑ Linseed Oil- Assignment Subrecipient Agreement Supporting Documentation
❑ Resolution - Linseed Assignment Subrecipient Agreement Resolutions
Pr
epared by Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
RESOLUTION NO. 309-14
APPROVING THE ASSIGNMENT OF THE COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) HOUSING DISASTER RECOVERY FUND CONTRACT
SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF DUBUQUE AND WILMAC
PROPERTY COMPANY, FROM WILMAC PROPERTY COMPANY TO MERRIMAC
RESTORATION, INC.
WHEREAS, Wilmac Property Company is the owner of the Linseed Oil
th
Paintworks Company Building at 151 E. 9 Street in Dubuque, Iowa; and
WHEREAS, the Iowa Economic Development Authority amended CDBG
Contract #08-DRH-212 dated June 19, 2013 between the City of Dubuque and the Iowa
Economic Development Authority to authorize $2,248,890 of CDBG Housing Disaster
Recovery Funds for the Linseed Oil Paintworks Company Building to assist in the
funding of residential rehabilitation; and
WHEREAS, on September 15, 2014, the City Council of the City of Dubuque
approved a Subrecipient Agreement between the City of Dubuque and Wilmac Property
Company; and
WHEREAS, Wilmac Property Company is now creating a special purpose entity,
Merrimac Restoration, Inc., an Iowa business corporation, to manage the Linseed Oil
Paintworks project; and
WHEREAS, Wilmac Property Company desires to assign the Subrecipient
Agreement to Merrimac Restoration, Inc. pursuant to the Assignment attached hereto to
facilitate the project; and
WHEREAS, the City Council finds that the proposed Assignment is in the best
interests of the City of Dubuque.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
100214bal
Section 1. The Assignment of the Subrecipient Agreement 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 this 6th day of Octob- , 2014.
Attest:
Kevin F nstahl, City Cle
Roy D. Bu¢ Mayor
F:\USERS\tsteckle\Lindahl\Resolutions\ResolutionWilmacAssignmentSubrecipientAgreement_100214.docx
2
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Linseed Oil Subrecipient Agreement
DATE: October 2, 2014
Dubuque
2007 • 2012 • 2013
Economic Development Director Maurice Jones recommends City Council approval of
the attached Subrecipient Agreement with Wilmac Property Company to facilitate the
redevelopment of the Linseed Oil Paintworks Building at 901 Jackson Street.
The Linseed Oil Paintworks Building is owned by the Wilmac Property Company, which
has agreed to enter into a Subrecipient Agreement with the City in order to redevelop
the building per the CDBG contract terms. Wilmac Property Company will remain the
owner of the building and its improvements.
The Agreement provides for the redevelopment of the Linseed Oil Paintworks Building
into 16 residential units, 9 of which will be affordable workforce housing. The period of
affordability will last 10 years.
The East Central Intergovernmental Association will administer the Davis Bacon Act
and related federal compliance issues through a separate contract.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mich'aeI C. Van
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 Mzssissippi
Dubuque
2007 • 2012 • 2013
Economic Development Department
50 West 13th Street
Dubuque, Iowa 52001-4864
Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Linseed Oil Subrecipient Agreement
DATE: September 9, 2014
INTRODUCTION
This memorandum seeks City Council acceptance of a Subrecipient Agreement
between the City of Dubuque and Wilmac Property Company for the redevelopment of
901 Jackson Street according to the terms of CDBG contract #08-DRH-212.
BACKGROUND
The City applied to the Iowa Economic Development Authority for a grant of CDBG
funds for the creation of 16 residential units for workforce housing at 901 Jackson
Street, aka the Linseed Oil Paintworks Building. The City has been awarded a grant of
funds in the amount of $2,248,890, subject to the condition that City rehabilitate the
Building with at least 9 units of residential housing for persons or households whose
incomes are at or below 80% of the area median income limits (AMI) by household size
as established by HUD for Dubuque County.
DISCUSSION
The Linseed Oil Paintworks Building is owned by the Wilmac Property Company, which
has agreed to enter into a Subrecipient Agreement with the City in order to redevelop
the building per the CDBG contract terms. Wilmac Property Company will remain the
owner of the building and its improvements.
The Agreement provides for the redevelopment of the Linseed Oil Paintworks Building
into 16 residential units, 9 of which will be affordable workforce housing. The period of
affordability will last 10 years.
The East Central Intergovernmental Association (ECIA) will administer the Davis Bacon
Act and related federal compliance issues through a separate contract.
RECOMMENDATION/ ACTION STEP
I recommend the City Council approves the attached Subrecipient Agreement with
Wilmac Property Company to facilitate the redevelopment of the Linseed Oil Paintworks
Building at 901 Jackson Street.
ASSIGNMENT OF SUBRECIPIENT AGREEMENT
This Assignment of Subrecipient Agreement is entered into thie day of October, 2014
by and between Wilmac Property Company, an Iowa business corporation, ("Wilmac") Merrimac
Restoration, Inc., an Iowa business corporation ("Merrimac") and the City of Dubuque, Iowa
("City").
RECITALS
A. City and Wilmac entered into a Subrecipient Agreement for Community Development
Block Grant Housing Disaster Recovery Fund Contract dated September 15, 2014 (the
"Subrecipient Agreement");
B. Pursuant to the terms of the Subrecipient Agreement City shall provide to Wilmac
certain funds as a forgivable loan, subject to the requirements and restrictions of that
Subrecipient Agreement. The funds are made available through the State of Iowa, by its
Department of Economic Development;
C. In order to facilitate the use of the funds and to best accommodate other funding
sources for the contemplated project Wilmac desires to assign all of its rights and obligations
under the Subrecipient Agreement to Merrimac and Merrimac 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 Merrimac each and
every right and obligation of Wilmac in and under the Subrecipient Agreement.
2. Acceptance. Merrimac does hereby accept all rights and obligations of Wilmac under
the Subrecipient Agreement and agrees to be bound by such agreement and to be responsible for
every obligation of the Subrecipient thereunder.
3. Consent. A. City does hereby consent to the assignment as set forth herein and releases
Wilmac from any obligations that accrue under the terms of the Subrecipient Agreement after the
date hereof.
B. State of Iowa, by its Department of Economic Development , hereby
consents to the assignment as set forth herein.
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 D
By:
owa
Roy D. uol, Mayor
Wilmac Property Company
By:
Merrimac Restoration, Inc.
By:
State of Iowa
Department of Economic Development
By: