In early 2017, the City Council was informed of the elimination of the city’s previously committed debt guarantee for a portion of the Roshek Building redevelopment project.
In 2009, Dubuque Initiatives entered into a development agreement with the city in order to provide incentives for the redevelopment of the Roshek Building. This redevelopment created space for the arrival of IBM and over 1,300 quality jobs!
As part of the incentive package outlined in the development agreement and its ensuing amendments, the city agreed to a $25 million loan guarantee for the approximately $47.5 million project. Due to faster-than-anticipated retirement of the debt, the city’s guarantee was prematurely reduced to $7.5 million. In 2017, the loan guarantee was projected to reduce to approximately $5.5 million.
However, Dubuque Initiatives was able to refinance the debt using the substantial value of the renovated Roshek Building as collateral, and the city loan guarantee was released!