HWY 151 & 61 Development Amendment 3THE CTTY OF
DUB E
Masterpiece on the Mississippi
MEMORANDUM
October 29, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amendment #3 to Development Agreement with HWY 151 & 61
Development LLC
Economic Development Director Dave Heiar recommends City Council approval of
Amendment #3 to the Development Agreement with HWY 151 & 61 Development, LLC
that extends several deadlines based on the timing issues related to the Bee Brach
project and the site redevelopment.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THE CITY OF
DUB E MEMORANDUM
Masterpiece on the Mississippi
October 24, 2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Amendment #3 to Development Agreement with HWY 151 & 61
Development LLC.
INTRODUCTION:
The purpose of this memo is to provide background information on proposed changes
to a Development Agreement with HWY 151 & 61 Development, LLC.
BACKGROUND:
On June 5, 2006 the City Council approved a Development Agreement with HWY 151 ~
61 Development, LLC. for the redevelopment of the former Smithfield (Dubuque Pack)
site. Since that time, the developer has initiated and nearly completed the demolition of
the existing building and cleanup of the site.
The timing of certain aspects of the redevelopment plan has changed since the June
2006 agreement was signed.
The first proposed agreement amendment (section 1) relates to Bee Branch
development. A portion of the Bee Branch project will eventually cross this site. The
exact location of the Bee Branch has not yet been finalized. In the initial agreement, the
parties had until November 30, 2006 to determine the Bee Branch alignment. This
amendment allows until June 30, 2008 to make that determination.
Another element of the original Development Agreement offered to sell about 3.3 acres
of City owned land on the south side of 16t" Street to the developer for $1. The closing
on this transfer was to occur by December 15, 2006. The amendment would modify this
closing date to July 15, 2008.
The third modification to the development agreement effects section 2.2(2), stating that
the filling, grading and leveling at the site would be completed by January 1, 2008. This
date would be changed to June 30, 2008.
RECOMMENDATION/ACTION:
Based on the timing issues related to the Bee Branch project and the site
redevelopment, I recommend that the City Council authorizing the attached resolution
approving amendment number 3 to the June 5, 2006 Development Agreement between
the City of Dubuque and HWY 151 & 61 Development, LLC.
F:\USERS\Internpl\Economic DevelopmentWmendment #3 - HWY 151 & 61.doc
RESOLUTION NO. 522-07
AUTHORIZING AMENDMENT NUMBER 3 TO A DEVELOPMENT AGREEMENT
WITH HWY 151 & 61 DEVELOPMENT, INC.
Whereas, the City Council of the City of Dubuque, Iowa, approved a
Development Agreement for the redevelopment of the Smithfield (former Dubuque
Pack) site on June 5, 2006; and
Whereas, the timing of certain aspects of the redevelopment plan have changed
since the original agreement was authorized; and
Whereas, it is mutually beneficial to move forward with this redevelopment
project with revised time lines.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the Amendment Number 3 to the Development Agreement by and
between the City of Dubuque and Hwy 151 & 61 Development, LLC attached hereto, is
hereby approved.
Section 2. That the Mayor and City Clerk are hereby authorized and directed to
execute, on behalf of the City of Dubuque, Iowa, said Development Agreement.
Passed, approved and adopted this 5th day of November, 2007.
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider
City Clerk
F:\USERS\DHeiar\HWY 151 & 61 \Resolution for Amendment #3 HWY 151 8~ 61 DA.doc
AMENDMENT NO. 3 TO DEVELOPMENT AGREEMENT
BETWEEN CITY OF DUBUQUE, IOWA
AND
HWY 151 & 61 DEVELOPMENT, L.L.C.
This Amendment No. 3 ("Amendment No. 3") to Development Agreement between the
City of Dubuque, Iowa, and Hwy 151 & 61 Development, L.L.C. is entered into effective the _
day of , 2007, by and between the City of Dubuque, Iowa, a municipality ("City"),
established pursuant to Iowa Code and acting under authorization of Iowa Code Chapter 403, as
amended ("Urban Renewal Act"), and Hwy 151 & 61 Development, L.L.C., an Iowa limited
liability company ("Developer"), with its principal place of business at Dubuque, Iowa.
RECITALS
A. City and Developer entered into that certain Development Agreement dated for
reference purposes as June 5, 2006, with respect to the former Smithfield Real
Estate site, which was amended by Amendment No. 1 thereto and Amendment
No. 2 thereto. This Amendment No. 3 supersedes Amendment No. 2 and
Amendment No. 1
B. The parties desire to amend the Development Agreement as provided herein.
Therefore, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties do hereby agree as follows:
1. Amendment to Section 3.3 (Acquisition by City of Bee Branch Real Estate).
Section 3.3 is hereby amended by deleting the date "November 30, 2006, from each place it
appears in this section and replacing it with "June 30, 2008".
2. Amendment to Exhibit D. The parties acknowledge that Exhibit D to the
Development Agreement (i.e. the Offer to Buy Real Estate and Acceptance with respect to the
City's acquisition of 3.3 acres, more or less, for realigned Bee Branch Storm Sewer) shall have a
closing date (if at all, as provided in such Offer) of July 15, 2008.
3. Section 2.2(2) is hereby amended by deleting the date "January 1, 2008" and
replacing it with "June 30, 2008".
4. All other terms and conditions of the Development Agreement shall remain in full
force and effect and are hereby ratified and confirmed by the parties hereto.
IN WITNESS WHEREOF, the undersigned have executed and delivered the foregoing
Amendment No. 3 as of the date and year first above written.
CITY OF DUBUQUE, IOWA
1
By:
Roy D. Buol, Mayor
By:
Jeanne Schneider, City Clerk
SB DEVELOPMENT, L.L.C.
By:
Wayne A. Briggs, Its Authorized
Officer
Hwy 151 City Development Agreement Amendment No. 3