Weaver Castle, LLC - Third Amendment to Development Agreement_346-348 W. Locust St. Copyright 2014
City of Dubuque Consent Items # 23.
ITEM TITLE: Weaver Castle, LLC - Third Amendment to Development
Agreement for 346-348 West Locust Street
SUMMARY: City Manager recommending approval of the Third
Amendment to the Development Agreement with Weaver
Castle, LLC for the redevelopment of property at 346-348
West Locust Street.
RESOLUTION Approving the Third 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
346-348 West Locust 3rd Amendment to De\elopment City Manager Memo
Agreement-MVM Memo
Staff Memo Staff Memo
3rd Amendment to DA Supporting Documentation
Resolution of Approval Resolutions
THE CITY OF Dubuque
DUB E i"
Masterpiece on the Mississippi 2007.2012.2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: 3rd Amendment to Development Agreement for 346-348 West Locust
DATE: December 13, 2016
Economic Development Director Maurice Jones recommends City Council approval of
the 3rd Amendment to the Development Agreement with Weaver Castle LLC for the
redevelopment of property at 346-348 West Locust Street. The amendment extends
the completion deadline to December 31, 2017.
1 concur with the recommendation and respectfully request Mayor and City Council
approval.
vzy4S1t^1
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, 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: 3rd Amendment to Development Agreement for 346-348 West Locust
DATE: December 13, 2016
INTRODUCTION
This memorandum presents for review and approval the 3rd amendment to the
Development Agreement with Weaver Castle LLC for the redevelopment of the property
at 346-348 West Locust Street.
BACKGROUND
City Council approved a Development Agreement with Weaver Castle LLC for the
redevelopment of 346-348 West Locust Street on August 21, 2013. The Agreement
calls for a capital investment of at least $400,000 and the creation of four (4) market
rate apartments.
An amendment was approved by City Council on March 16, 2015 extending the
substantial completion date of the project to December 31, 2015. A second amendment
was approved by City Council on October 19, 2015 extending the substantial
completion date of the project December 31, 2016.
DISCUSSION
Weaver Castle LLC has completed several residential projects in the Loras/W. Locust
area recently, adding quality units to this neighborhood. They have several properties
currently under construction, and have purchased one other property that does not yet
have a Development Agreement with the City, but which they intend to rehabilitate in
the coming years.
The project at 346-348 West Locust has begun, but will likely not meet the substantial
completion date of December 31, 2016, as set forth in the 2nd Amendment to
Development Agreement. Due to the Developer's other projects in the neighborhood
not leasing up as quickly as projected, work has slowed on the Developer's other
projects underway, including this one. Additionally, the Developer has requested time
to finalize financials on this and other projects in order to continue their work in the
downtown area.
The 3rd Amendment will extend the completion date to December 31 , 2017.
RECOMMENDATION/ ACTION STEP
I recommend the Council approves the attached resolution, authorizing the Mayor to
sign the 3rd Amendment.
RESOLUTION NO. 424-16
APPROVING THE THIRD 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 21st day of
August, 2013 for the redevelopment of the property at 346-348 West Locust Street, which
Development Agreement required Developer to complete certain Minimum Improvements
described therein; and
Whereas the First Amendment to Development Agreement, dated the 16th day of
March, 2015, extended the substantial completion date of the Minimum Improvements to
December 31, 2015; and
Whereas the Second Amendment to Development Agreement, dated the 19th day
of October, 2016, extended the substantial completion date of the Minimum
Improvements to December 31, 2016; 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 Second
Amendment to Development Agreement on behalf of the City of Dubuque.
Passed, approved and adopted this 19th day of Decmber, 2016.
Attest:
Kevin S. Firnstahl, Clerk
Roy D. ' ol, Mayor
THIRD AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
WEAVER CASTLE LLC
This Third Amendment to Development Agreement, dated for reference purposes
the 19th day of December 2016, is made and entered into by and between the City of
Dubuque, Iowa (City) and Weaver Castle LLC (Developer).
Whereas City and Developer previously entered into a Development Agreement
dated the 21st day of August, 2013 (the Development Agreement) for the redevelopment
of the property at 346-348 West Locust Street which required Developer to complete
certain Minimum Improvements as described therein; and
Whereas the First Amendment to Development Agreement, dated the 16th day of
March, 2015, extended the substantial completion date for the Minimum Improvements
to December 31, 2015; and
Whereas the Second Amendment to Development Agreement, dated the 19th
day of October, 2016, extended the substantial completion date for the Minimum
Improvements to December 31, 2016; and
Whereas substantial work on the property which is the subject of the
Development Agreement has been performed to date, but the Minimum Improvements
required by the Development Agreement are not yet complete; 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 2.4 of the Development Agreement is hereby amended to read as
follows:
Timing of Improvements. 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 December 31, 2017.
The time 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,
101315ba1
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. All other terms and conditions of the Development Agreement remain in
full force and effect.
CITY OF DUBUQUE, IOWA WEAVER CASTLE LLC
By: 414 („Q
Roy D. guol, Mayor
Attest:
By:
Ke. nJS.Firnstahl, Gait Ierk
2
By:C,
G Stelpflug, Manager