Novelty Iron Works - 3rd Amendment to Development Agreement Copyright 2014
City of Dubuque Action Items # 4.
ITEM TITLE: Novelty Iron Works - 3rd Amendment to Development Agreement
SUMMARY: City Manager recommending approval of a Third Amendment to the
Novelty Iron Works Development Agreement.
RESOLUTION Approving the Third Amendment to the Development
Agreement between the City of Dubuque, Iowa and Novelty Iron Landlord,
LLC
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s)
ATTACHMENTS:
Description Type
❑ Novelty Iron Works-Third Amendment to Development Agreement- City Manager Memo
MVM Memo
❑ Staff Memo Staff Memo
❑ 3rd Amendment to DA Supporting Documentation
❑ Resolution Adopting Amendment#3 Resolutions
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Novelty Iron Works —Third Amendment to Development Agreement
DATE: March 11, 2015
Economic Development Director Maurice Jones recommends City Council approval of a
Third Amendment to the Novelty Iron Works Development Agreement to extend the
substantial completion date to March 10, 2015. The amendment will also clarify when
payments will be due for certain parking spaces that were committed from the City. It
also clarifies the amount of voluntary assessment to be forgiven, and sets forth the
documentation requirements in order for the City incentives to be paid.
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
Dubuque Economic Development Department
THE CITY OF 50 West 13th Street
All-AmericaCitY Dubuque,Iowa 52001-4864
DUB36kE1 ' Office(563)589-4393
TTY(563)690-6678
® http://www.cityofdubuque.org
Masterpiece on the Mississippi 200.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Novelty Iron Works — 3rd Amendment to Development Agreement
DATE: March 1, 2015
INTRODUCTION
The purpose of this memorandum is to request City Council approval of a 3rd
Amendment for the Novelty Iron Works Development Agreement in order to extend the
substantial completion date, as well as clarify several other sections.
BACKGROUND
On June 17, 2013, the City entered into a Development Agreement with Warehouse
Trust, LLC, assigned to Novelty Iron Landlord LLC, for the renovation of the Novelty Iron
Building. The Development Agreement established a closing date of December 30,
2013. A 2nd Amendment, executed January 6, 2014, extended the closing date to June
30, 2014. However, it did not simultaneously extend the date of substantial completion
of the project.
DISCUSSION
The Novelty Iron Works project is nearing completion, but has passed the substantial
completion date of December 30, 2014 as set forth in the original Development
Agreement. The 3rd Amendment will extend the completion date to March 10, 2015.
This Amendment will also clarify when payments will be due for certain parking spaces
that were committed from the City. It also clarifies the amount of voluntary assessment
to be forgiven, and sets forth the documentation requirements in order for the City
incentives to be paid.
RECOMMENDATION/ ACTION STEP
I recommend the Council approves the attached resolution, authorizing the Mayor to
sign the 3rd Amendment.
RESOLUTION NO. 94-15
APPROVING THE THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF DUBUQUE, IOWA AND NOVELTY IRON LANDLORD, LLC
Whereas the City of Dubuque, Iowa (City) and Warehouse Trust, LLC (Developer)
entered into a Development Agreement dated for reference purposes the 17th day of
June, 2013 which Development Agreement was assigned to Novelty Iron Landlord LLC
the 5th day of August, 2013; and
Whereas City and Developer now desire to amend the Development Agreement as
set forth in the Third Amendment to Development Agreement attached hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City Council hereby approves the Third Amendment to Development
Agreement.
Section 2. The Mayor is authorized and directed to sign the Third Amendment to
Development Agreement on behalf of the City of Dubuque.
Passed, approved and adopted this 16th day of March, 2015.
Attest:
Trish L. Gleason, Assistant City Clerk
oy D. Buol, Mayor
THIRD AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
NOVELTY IRON LANDLORD, LLC
This Third Amendment to Development Agreement, dated for reference purposes
the 16th day of March, 2015, is made and entered into by and between the City of
Dubuque, Iowa (City) and Novelty Iron Landlord, LLC (Developer).
Whereas City and Warehouse Trust, LLC entered into a Development
Agreement dated for reference purposes the 17th day of June, 2013 which Development
Agreement was assigned to Developer the 5th day of August, 2013; and
Whereas City and Developer desire to amend the Development Agreement as
set forth herein.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES THAT
THE DEVELOPMENT AGREEMENT IS AMENDED AS FOLLOWS:
1 . Section 2.3 of the Development Agreement is amended to read as follows:
2.3 Timing of Minimum Improvements.
(1) Developer hereby agrees that construction of the Minimum Improvements
on the Property shall be commenced within thirty (30) days after the Closing
Date, and shall be substantially completed by March 10, 2015.
(2) The time frame for the performance of these obligations shall be
suspended due to unavoidable delays, meaning delays outside the control of the
party claiming its occurrence in good faith, which are the direct result of strikes,
other labor troubles, unusual shortages of materials or labor, unusually severe or
prolonged bad weather, acts of God, fire or other casualty to the Minimum
Improvements, litigation commenced by third parties which, by injunction or other
similar judicial action or by the exercise of reasonable discretion directly results in
delays, or acts of any federal, state or local government which directly result in
extraordinary delays. The time for performance of such obligations shall be
extended only for the period of such delay.
2. Section 3.1 of the Development Agreement is amended to read as follows:
3.1 . Parking. Subject to terms of this Agreement and compliance with applicable
Iowa law, including, but not limited to, the holding of public hearings on proposed plans,
specifications and forms of contract, and as otherwise provided for in this Agreement,
021315bal
City hereby agrees to design, bid and construct, or engage a qualified contractor to
construct, parking improvements for up to 120 parking spaces on property controlled by
City not more than 600 feet from Developer's building locally known as the Novelty Iron
Works Building (the Iron Works Building) to be rented to Developer for use by building
tenants or owners residing within the Historic Millwork District PUD, at a monthly rental
rate established by the City Council (the Iron Works Parking Spaces). The Iron Works
Parking Spaces shall be rented to and paid for by Developer as follows:
(1) At least 20 spaces no later than March 1 , 2015; and
(2) At least 20 additional spaces no later than April 1 , 2015; and
(3) At least 20 additional spaces no later than May 1 , 2015; and
(4) The balance of the parking spaces no later than July 1 , 2015.
Developer may sublet the Iron Works Parking Spaces to third parties provided that the
subtenant is a tenant or owner residing within the Historic Millwork District PUD
boundary.
3. Section 3.2 of the Development Agreement is amended to read as follows:
3.2. Voluntary Assessment. A Petition and Waiver Agreement was signed by
Developer on August 6, 2010, agreeing to a voluntary assessment for street and
streetscape improvements for the following amounts:
Private Street Donation Assessment $496,360.16
Private Sanitary Sewer Assessment $2,500.00
Private Water Service Assessment $15,000.00
Total Assessment $513,860.16
The Private Street Donation Assessment shall be forgiven entirely, minus any penalties
or late fees, if the Minimum Improvements are completed in accordance with this
Agreement as determined by City in its sole discretion.
4. Section 3.8 of the Development Agreement is amended to read as follows:
3.8. Written requests for payment of grant funds must be submitted to the Economic
Development Department together with such evidence of compliance with this
Agreement as may be requested by City in its sole discretion, including but not limited to
satisfactory evidence that Developer is financially capable of successfully completing
the requirements of this Agreement.
2
CITY OF DUBUQUE, IOWA
Bv.
D.
Roy; . Buol, Mayor
Trish L. Gleason, Assistant City Clerk
3
NOVELTY IRON LANDLORD, LLC
By:
Its: Peitts l r