Weaver Castle, LLC Amendment to Development Agreement for 324-326 W. Locust St. Copyright 2014
City of Dubuque Consent Items # 15.
ITEM TITLE: Weaver Castle, LLC Amendment to Development Agreement for 324-326
W. Locust Street
SUMMARY: City Manager recommending approval of the Second Amendment to
Development Agreement with Weaver Castle, LLC to allow the developer
to be paid the Downtown Housing Incentive for an additional apartment at
324-326 W. Locust Street.
RESOLUTION Approving the Second Amendment to the Development
Agreement between the City of Dubuque, Iowa and Weaver Castle, LLC
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s)
ATTACHMENTS:
Description Type
❑ Weaver Castle 324-326 W. Locust 2nd Amendment to Development City Manager Memo
Agreement-MVM Memo
❑ Staff Memo Staff Memo
❑ 2nd Amendment Supporting Documentation
❑ Resolution 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: 2nd Amendment to Development Agreement for 324-326 West Locust
Street
DATE: December 1, 2015
On April 1, 2013, the City Council approved a Development Agreement with Weaver
Castle LLC for the redevelopment of 324-326 West Locust Street. The project has been
completed and has created five market rate apartments, instead of the initial four
planned in the Development Agreement.
Economic Development Director Maurice Jones recommends City Council approval of
the 2nd Amendment to Development Agreement to allow the developer to be paid the
Downtown Housing Incentive of $10,000 for the additional apartment.
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
AII-AwftlitY Dubuque,Iowa 52001-4864
DUB3 &kE1 I 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: 2nd Amendment to Development Agreement for 324-326 West Locust
DATE: November 25, 2015
INTRODUCTION
This memorandum presents for review and approval an amendment to the
Development Agreement with Weaver Castle LLC for the redevelopment of the property
at 324-326 West Locust Street.
BACKGROUND
City Council approved a Development Agreement with Weaver Castle LLC for the
redevelopment of 324-326 West Locust Street on April 1, 2013. The Agreement calls
for a capital investment of at least $400,000 and the creation of four (4) market rate
apartments.
DISCUSSION
The project at 324-326 West Locust has been completed, but has in fact created five (5)
market rate apartments. Because the developer should have been eligible for $10,000
per unit according to the guidelines set forth in the downtown housing incentive
program, staff recommends amending the agreement so as to provide this incentive on
all of the units, not just four of the five. The 2nd Amendment will provide for an additional
$10,000 to be paid to developer for work completed.
RECOMMENDATION/ ACTION STEP
I recommend the Council approves the attached resolution, authorizing the Mayor to
sign the 2nd Amendment.
RESOLUTION NO. 414-15
APPROVING THE SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF DUBUQUE, IOWA AND WEAVER CASTLE, LLC
Whereas the City of Dubuque, Iowa (City) and Weaver Castle, LLC (Developer)
entered into a Development Agreement dated for reference purposes the 1St day of April,
2013 for the redevelopment of the property at 324-326 West Locust Street; and
Whereas City and Developer now desire to amend the Development Agreement
as set forth in the Second 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 Second Amendment to
Development Agreement.
Section 2. The Mayor is authorized and directed to sign the Second
Amendment to Development Agreement on behalf of the City of Dubuque.
Passed, approved and adopted this 7th day of December, 2015.
Attest:
Kevin . Firnstahl, Cify Jerk
nn V. Sutton, Mayor Pro Tem
SECOND AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
WEAVER CASTLE LLC
This Second Amendment to Development Agreement, dated for reference
purposes the 7th day of December 2015, is made and entered into by and between the
City of Dubuque, Iowa (City) and Weaver Castle LLC (Developer).
Whereas City and Developer entered into a Development Agreement dated the
1st day of April, 2013 (the Development Agreement) for the redevelopment of the
property at 324-326 West Locust Street; and
Whereas the Minimum Improvements required by the Development Agreement
have been completed; and
Whereas five residential units were created instead of four; and
Whereas the fifth unit is eligible for the Downtown Housing Incentive program
which provides $10,000 per eligible unit; 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 3.2 of the Development Agreement is hereby amended to read as
follows:
Downtown Housing Incentive.
(1) City agrees to provide to Developer on the terms and conditions set forth
in the Downtown Housing Incentive Program attached hereto as Exhibit F, a
grant in the amount of Fifty Thousand Dollars ($50,000.00) (the Grant).
(2) Grant funds will not be disbursed to Developer until City has issued a
Certificate of Occupancy for the Project. The Grant shall be paid in Ten
Thousand Dollar ($10,000.00) payments for each apartment that receives a
Certificate of Occupancy up to a maximum of five apartments. Prior to the
disbursement of any funds, Developer shall provide evidence satisfactory to City
that the Minimum Improvements have been completed in accordance with the
030515baI
Plans and other documentation submitted to City with the Downtown Housing
Assistance application.
2. All other terms and conditions of the Development Agreement remain in
full force and effect.
CITY OF DUBUQUE, IOWA
B
Attest:
Bv:
4/
Lynn V. Sutton, Mayor Pro Tem
.40
(mac
Ke in S. Firnstahl,
Clerk
2
WEAVER CASTLE LLC
By:
Stelpflug, Manager