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Novelty Iron Works - 4th Amendment to Development Agreement Copyright 2014 City of Dubuque Consent Items # 8. ITEM TITLE: Novelty Iron Works -4th Amendment to DA SUMMARY: City Manager recommending approval of a 4th Amendment to the Novelty Iron Landlord LLC Development Agreement in order to modify the parking arrangement by deleting Section 3.1 in its entirety. RESOLUTION Approving the 4th 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 4th Amendment to Development City Manager Memo Agreement-MVM Memo Staff Memo Staff Memo 4th Amendment to DA Supporting Documentation Resolution - Adopting 4th Amendment 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 Landlord LLC —4t" Amendment to Development Agreement DATE: December 17, 2015 Economic Development Director Maurice Jones recommends City Council approval of a 4t" Amendment to the Novelty Iron Landlord LLC Development Agreement in order to modify the parking arrangement by deleting Section 3.1 in its entirety. I concur with the recommendation and respectfully request Mayor and City Council approval. Micliael 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 Landlord LLC —4th Amendment to Development Agreement DATE: December 14, 2015 INTRODUCTION The purpose of this memorandum is to request City Council approval of a 4th Amendment to the Novelty Iron Landlord LLC Development Agreement in order to modify the parking arrangements by deleting Section 3.1 in its entirety. BACKGROUND On June 17, 2013, the City of Dubuque, Iowa entered into a Development Agreement with Warehouse Trust, LLC, which was assigned to Novelty Iron Landlord LLC for the renovation of the Novelty Iron Building. The Development Agreement established a parking contract between the City and Novelty Iron Landlord LLC wherein the City agreed to provide parking and Novelty Iron Landlord LLC agreed to rent those parking spaces. DISCUSSION On March 16, 2015, the City Council approved a 3rd Amendment to the Development Agreement wherein specific dates for payment for the parking spaces were identified. Since that time, Novelty Iron Landlord LLC has requested that it be relieved of this obligation, preferring instead that Novelty Iron Landlord LLC's tenants lease parking directly from the City. This 4th Amendment will delete Section 3.1 in its entirety from the Development Agreement. As required in the Development Agreement both the Developer and Developer's lender have signed the 4th Amendment. RECOMMENDATION/ ACTION STEP I recommend the Council approves the attached resolution, authorizing the Mayor to sign the 4th Amendment. Cc: Bob Johnson RESOLUTION NO. 428-15 APPROVING THE FOURTH 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 5111 day of August, 2013; and Whereas City and Developer now desire to amend the Development Agreement as set forth in the Fourth 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 Fourth Amendment to Development Agreement. Section 2. The Mayor is authorized and directed to sign the Fourth Amendment to Development Agreement on behalf of the City of Dubuque. Passed, approved and adopted this 21st day of December, 2015. Roy D. Buol, Attest: Keviri S. Firnstahl,LGity Clerk 0 iLi yor •FOURTH AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN THE WY OF DUBUQUE/ IOWA AND NOVELTY IRON LANDLORD LLC This Fou • Amendmen to Oeyelopment Agreement, • dated for reference purposes the day of 471241— 2015 is made and entered into by and between the City o Dubuque, Iowa (City) and Novelty Iron Landlord LLC (Dowloper). Whereas„ Cay and Warehouse Trust, LLC previously entered into a Development Agreement dated the Irk of June; 2013 (the Developmerit Agreement): and Vitiereas„ Warehouse Trust, LLC, with the consent of Cly, assigned the Elevelopuhent Agreement to Developer„ who assurneci the duties of Warehouse Trust, LLC under the Develo Agreement; arid Vtereas, Devettiper, vird' the consent of City, assigned its rights in and under the Devehyrnent Agreement to The National Bank (Bank): and Vghereas Bank pursuant to a first amendment to the Articles of Association of The Nattiriat Bank did therein change its name to Triumph • unity k, NA. Said airiendment...--,..worning effective June 30 2014, arid being filed with the office of the Comptroller of the Currency to affect the name change of the bank. The National Bank is neyim known as Triumph Communtty Sank, N,A„: and Memos, there have been three prior amendments to the Development Agreement, dated the 21'st day of August, 2013, the Vh day of January, 2014, and the 1616day of March, 2015, respectively ; and Whereas, City and Developer have agreed to this Fourth Amendment to the Development Agreement, THEREFORE, in consideration of the mutual terms and covenants contained herein, the parties agree as follows: Section 31 of the Development Agreement which originally read as fellows: 3.1. rki Subject to terms of this Agreement and compliance with applicabie Iowa law, including, but not limited to, the holding of public hearings on proposed piens, specifications and forms of contract, and as otherwise provided for in this Agreement, City hereby agrees to design, bid and constalot, or engage a qualified contractor to construct parking improvements for up to 120 C0051 3mb Developers building locally known as thayNovieitYty iron Woks Bntikr 600 (the Iranrem parking spaces on property controlled b C:* not mo etafeet f Works 8 -id* ) 1 Ing e ut trig to, be rented to Devekiper at an annual rental estab5shed by the CityCouricil(the Iron Works Parldrig Spaces). The Iron Works Parking Spaces shalibe rented to and paid for by Developer asfollows: (1) At east 20 spaces wittiin thirty (30) days after the issuance of a Certificate of Occupancy for the Iron liktorks Buikting; ord. (2) At least 20 additional spaces within 60 days after the issuance of Certificate of Occupancy for the Iron Works Building; and (3) At least 20 additional spaces within 90 days after the issuance of Certificate of Occupancy for the Iron Building: and (4) The balance of the parking spaces within 150 days after the Issuance of a Certificate of Occupancy for the Iron Works Building. Developer may sublet the Iron * Parking. Seams to third parties Provided that 4 subtenant is a tenant or owner residing within the Historic Miliviork District PUD boundary. which was amended to read as follows by the Third Antendmertt to the Deve4morit Agreement t to terms 0 niengt aoaciptiamtepliente, we!totioafoProPlpindatbhets 1 Prkin% Subject not i-mgeodr ctoo,nttrhaeotnioald-ordn es f0thems,, a provided logr in a a law, including, but I # f thiS. Agree br h6arinft„ avvans, speolf—tr-ations and forms to design,. City hereby agreesh bid and construct, or qualified contractor to construct, parking improvements for up to 120 parking spaces on property controlled by City not more than600 feet from Developers buildingIndaity kneivin ais the Novehy iron Works Buitdirig (the Iron Works uilding) to be rented to Developer for use by building tenants or 4• ers residing within the Historic Millwork District PUD, at a monthly rental rate established by the City Council (the Iron Works Parking Spaces), The Iran 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 tater than April 1, 2015: and (3) Ata..st 20 additional spaces no later than May 1, 2015; arid (4) The balance of the parking spaces no later than July 1.2015. Developer may sublet the Iron WOIRS Parking Spaces to third parties oroVi#,-* that the subtenant is a tenant or owner residing within the Historic Millwork District PUD boundary, is hereby deleted, 2,, Except as expressly amended in this Fourth Amendment to the Development Agreement, the terms of the Development Agreement will remain in full force and effect as set forth 'in the Development Aweertient, [Eng OF AMENDMENT — SIGNATURE.PAGE FOLLOWS rnph Cor Amend.. t NA_ her by cont the S r wird andFurth thetit Agreernent TRILMAPH COM MU NK$ Na w m