Assignment of Development Agreement- Friends of St. Mary's_Steeple Square Copyright 2014
City of Dubuque Consent Items # 7.
ITEM TITLE: Assignment of Development Agreement- Friends of St.
Mary's d/b/a Steeple Square
SUMMARY: City Manager recommending approval of the assignment of
the Development Agreement with Friends of St. Mary's
d/b/a Steeple Square for the property located at 1501
Jackson Street to Jackson Street School, LLC.
RESOLUTION Approving the assignment of the
Development Agreement between the City of Dubuque and
Friends of St. Mary's d/b/a Steeple Square from Friends of
St. Mary's d/b/a Steeple Square to Jackson Street School,
LLC
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Friends of St. Mary's Assignment of Development City Manager Memo
Agreement-MVM Memo
Staff Memo Staff Memo
Assignment of DA Supporting Documentation
Resolution of Assignment Resolutions
THE CITY OF Dubuque
UBE I
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Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Assignment of Development Agreement with Friends of St. Mary's d/b/a
Steeple Square to Jackson Street School, LLC to Redevelop Property at
1501 Jackson Street
DATE: July 14, 2016
Economic Development Director Maurice Jones recommends City Council approval of
the assignment of the Development Agreement with Friends of St. Mary's d/b/a Steeple
Square for the property located at 1501 Jackson Street to Jackson Street School, LLC.
Friends of St. Mary's d/b/a Steeple Square owns several properties on the former St.
Mary's Church campus, including the former church, rectory, and school. The 1501
Jackson Street rehabilitation project is bringing tax credit investors into the ownership
structure, so the Developer is creating a transaction specific entity for the project that
will not affect its other properties. In a Second Amendment to the Development
Agreement, if authorized by City Council, Section 4.10 will allow for an assignment of
the Agreement to a third party, which will accomplish this needed separation.
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-America City Dubuque,Iowa 52001-4864
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DUB 1E1 r Office(563)589-4393
I I I TTY(563)690-6678
Masterpiece on the Mississippi I. http://www.cityofdubuque.org200.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Assignment of Development Agreement with Friends of St.
Mary's d/b/a Steeple Square to Jackson Street School, LLC to
redevelop property at 1501 Jackson Street
DATE: July 13, 2016
INTRODUCTION
This memorandum is a request for the City Council to approve the assignment of the
Development Agreement with Friends of St. Mary's d/b/a Steeple Square for the
property located at 1501 Jackson Street to Jackson Street School, LLC.
BACKGROUND
On May 2, 2016 the City Council approved a Development Agreement with Friends
of St. Mary's d/b/a Steeple Square for the rehabilitation of 1501 Jackson Street into
residential apartments.
The property at 1501 Jackson will include 12 new residential units. The Developer is
estimating the total cost of the project to be at least $3.8 million. In addition to other
funding sources, the project will be using State Historic Tax Credits which are being
reserved.
DISCUSSION
Friends of St. Mary's d/b/a Steeple Square owns several properties on the former St.
Mary's Church campus, including the former church, rectory, and school. The 1501
Jackson Street rehabilitation project is bringing tax credit investors into the
ownership structure, so the Developer is creating a transaction specific entity for the
project that will not affect its other properties. In a Second Amendment to the
Development Agreement, if authorized by City Council, Section 4.10 will allow for an
assignment of the Agreement to a third party, which will accomplish this needed
separation.
RECOMMENDATION/ ACTION STEP
Based on the critical need for downtown housing and the City's goal to invest in the
Washington Neighborhood area, I recommend the City Council adopts the attached
resolution to assign the Development Agreement from Friends of St. Mary's d/b/a
Steeple Square to Jackson Street School, LLC.
Prepared by and return to Jill M. Connors, 50 W 13th Street, Dubuque IA 52001 563 589-4393
RESOLUTION NO. 273-16
APPROVING THE ASSIGNMENT OF THE DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF DUBUQUE AND FRIENDS OF ST. MARY'S d/b/a
STEEPLE SQUARE FROM FRIENDS OF ST. MARY'S d/b/a STEEPLE SQUARE TO
JACKSON STREET SCHOOL, LLC
WHEREAS, the City Council of the City of Dubuque, by Resolution No. 176-16,
dated May 2, 2016 entered into a Development Agreement with Friends of St. Mary's
d/b/a Steeple Square (Developer), as amended, and;
WHEREAS, pursuant to the Development Agreement Developer is required to
provide certain improvements to real estate owned by Friends of St. Mary's d/b/a
Steeple Square, known locally as 1501 Jackson Street, Dubuque, Iowa (the Property);
and
WHEREAS, in order to facilitate rehabilitation of the Property, and in particular to
accommodate the use of historic tax credits, the Property will be or has been deeded to
Jackson Street School, LLC, an Iowa limited liability company; and
WHEREAS, Developer desires to assign the Development Agreement to
Jackson Street School, LLC pursuant to the Assignment attached hereto in order to
facilitate the rehabilitation of the Property; and
WHEREAS, in the Second Amendment to Development Agreement the proposed
assignment is authorized subject to City Council approval; and
WHEREAS, the City Council finds that it is in the best interests of the City of
Dubuque to approve the Assignment.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Assignment 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 the 18th day of July'/ 2016.
Roy D. ioi, Mayor
Attest:
Kevin(`S.`Firnstahl,,City Perk
Prepared by and Return to: Flint Drake and Samuel M. DeGree, Drake Law Firm, PC 300 Main St., Suite
323, Dubuque, Iowa 52001
ASSIGNMENT OF DEVELOPMENT AGREEMENT
BETWEEN
FRIENDS OF ST. MARY'S d/b/a STEEPLE SQUARE
AND
JACKSON STREET SCHOOL, LLC
This Assignment of Development Agreement, dated for reference purposes the
day of r, , 2016, is made and entered into by and between Friends
of St. Mary's if/b/a Steeple Square and Jackson Street School, LLC for the following
property, situated in Dubuque, Iowa:
Lot 1 of City Lot 493, in the City of Dubuque, Iowa, according to the
recorded Plat thereof;
WHEREAS, Assignor is the Developer under a Development Agreement with the
City of Dubuque, Iowa dated May 2, 2016, as amended (the "Development
Agreement"); and
WHEREAS, the Development Agreement specifies various rights and obligations
of the Assignor and the City of Dubuque related to the development of the former school
building located on the land described above, known locally as 1501 Jackson Street,
Dubuque, Iowa; and
WHEREAS, Assignor desires to assign all of its interest in and to the
Development Agreement to Assignee and Assignee desires to accept such assignment
and agrees to be bound by the terms thereof; and
WHEREAS, the assignment by Assignor to Assignee hereunder is permanent
and complete and Assignor retains no rights under the Development Agreement
whatsoever as of the date hereof; and
WHEREAS, The City of Dubuque, Iowa has authorized this Assignment in the
Development Agreement, as amended; and
WHEREAS, the parties desire to reduce this Assignment to writing.
071216ba1
THEREFORE, Assignor hereby assigns to Assignee the Development
Agreement pursuant to the following terms and conditions:
1. Assignment. Assignor hereby assigns to Assignee, and Assignee hereby
accepts from Assignor, this assignment of the Development Agreement, which
assignment includes all rights and obligations of any sort whatsoever of Assignor
thereunder such that, upon acceptance hereof by Assignee, Assignor shall have no
right or interest whatsoever in and to the Development Agreement as of the date hereof
and Assignee agrees to be fully bound by the Development Agreement and shall carry
out all obligations of, and be entitled to all rights of, Assignor thereunder.
2. Law/Binding Effect. This Assignment shall be governed by and construed
in accordance with the laws of the State of Iowa. This Assignment shall be binding
upon the parties hereto and their respective successors in interest and assigns. In the
event of a breach of this Assignment the non -breaching party shall be entitled to all
rights and remedies at law or equity and shall be entitled to recover reasonable
attorneys' fees incurred due to the breach.
3. Affirmation. The parties hereby affirm the Development Agreement in all
respects, except that hereafter the Developer thereunder shall be the Assignee; in all
other respects, the Development Agreement shall remain in full force and effect
according to its terms.
FRIENDS OF ST. MARY'S JACKSON STREET SCHOOL, LLC
d/b/a STEEPLE SQUARE
By: By:
Jack McCullough, President
(Printed Name)
2
APPROVAL OF ASSIGNMENT BY THE CITY OF DUBUQUE, IOWA
The City of I ubuque hereby approves the foregoing Assignment.
By: 1
Roy D. B 61, Mayor
Attest:
Keen S. Firnstahl, CI'tsi Clerk
3
STATE OF IOWA )
COUNTY OF ) ss:
This instrument was acknowledged before me on
by Jack McCullough as President of Friends of St. Mary's d/b/a Steeple Square
Notary Public in and for
State of Iowa
By:
STATE OF IOWA )
COUNTY OF ) ss:
This instrument was acknowledged before me on
by as of Jackson Street School, LLC.
Notary Public in and for
State of Iowa