Holliday Third Addition - Stormwater Facilities Fee AgreementTHE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Holliday 3rd Addition -Stormwater Facilities Fee Agreement
DATE: October 1, 2008
City Engineer Gus Psihoyos is recommending consent to the assignment of interest in
the Stormwater Facilities Agreement for Holliday 3rd Addition from Gomer Holliday
Development, LLC to West Hospitality, LLC.
I concur with the recommendation and respectfully request Mayor and City Council
approval
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, City Engineer
THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
MEMORANDUM
October 1, 2008
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
SUBJECT: Holliday 3rd Addition -Stormwater Facilities Fee Agreement
INTRODUCTION
The purpose of this memo is to seek City Council approval to consent to the assignment
of interest in the Stormwater Facilities Agreement (Agreement) for Holliday 3~d Addition
that the City has with Gomer Holliday Development, LLC (GHD).
BACKGROUND
Holliday 3rd Addition is a commercially zoned development that includes the extension
of Holliday Drive to the south from Asbury Road west of the Northwest Arterial.
Because the development exceeds one acre, per City policy, stormwater detention was
required. The site is directly north of the Northwest Arterial Detention Basin and all
drainage from the site flows to the basin.
To meet detention basin requirements, the developer (QHQ) asked City Engineering
about the possibility of utilizing the City's detention basin instead of constructing a new
detention basin of their own. The Northwest Arterial detention facility, located just south
of Holliday 3rd Addition, has been functional since the spring of 2002.
The basic premise of the Agreement is that the City will provide detention (a service)
and QHQ will reimburse the City for the cost of the service.
In June of 2004, the City Council approved the Stormwater Facilities Fee Agreement
with QHQ. Per the terms of the Agreement, the City received aone-time payment of
$62,250. In addition, the City receives an annual maintenance fee that escalates by
2.5% each year. The annual fee was $4,120.00, $4,223, $4,328.58, and $4,436.78 for
2005, 2006, 2007, and 2008 respectively. The agreement allowed QHQ to assign with
the City's consent interest in the agreement with the sale of property.
In January of 2008, the City Council consented to the assignment of interest in the
Stormwater Facilities Fee Agreement to Commercial Holliday Development, LLC.
On September 2, 2008 the City Council consented to the assignment of interest in the
Stormwater Facilities Fee Agreement to Gomer Holliday Development, LLC (GHD).
DISCUSSION
On September 30, 2008, the City received a document (attached) titled Assignment of
Storm Water Facilities Fee Agreement and Consent to Assignment by the City of
Dubuque as prepared by Brian J. Kane. It assigns interest from Gomer Holliday
Development, LLC (GHD) to West Hospitality, LLC (WH). City staff believes that the
signed document affords the City legal authority to charge WH for the assigned portion
of the Agreement.
The table below shows the assignments for 2008 and what they will be in 2009 should
the City Council consent to the attached assignment. The proposed assignment
transfers the $461.98 obligation from GHD to WH in 2009.
QHQ LBH ComHD WBBL GHD WH
2008 $ 1,476.23 $ 937.49 $ 2,023.12 $ 0.00 $ 0.00 $ 0.00
2009 $ 1,513.14 $ 960.93 $ 0.00 $ 1,611.71 $ 461.95 $ 461.98
*The fee increases by 2.5% each year.
RECOMMENDATION
I recommend that the City Council consent to the assignment to West Hospitality, LLC
(WH).
BUDGET IMPACT
Per the terms of the Agreement, the City receives an annual maintenance fee that
escalates by 2.5% each year. The annual fee was $4,120, $4,223, $4,329, and $4,437
for 2005, 2006, 2007, and 2008 respectively. It will be $4,548 in 2009 and increase by
2.5% each year thereafter.
Consenting to the assignments has no budget impact as the amount of the annual
maintenance fee collected by the City will be the same as established in the Agreement
with QHQ. The only change is that the fee will be split between the assigned parties.
ACTION TO BE TAKEN
I respectfully request that the City Council consent to the assignment of interest in the
Stormwater Facilities Fee Agreement to West Hospitality, LLC and to authorize the City
Manager to sign the attached assignment.
Attach.
Prepared by Deron Muehring
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Ken TeKippe, Finance Director
Deron Muehring, Civil Engineer II
Brian J. Kane
Les V. Reddick'F
Brad J. Heying
Todd L. Stevenson"
Kevin T. Deeny""~
Bradley B. Kane
Joseph P. Kane
All admitted in Iowa
Also admitted in Illinois
*Also admitted in Wisconsin
September 29, 2008
Barry A. Lindahl, Esq.
Corporation Counsel
300 Main St., Ste. 330
Harbor View Place
Dubuque, IA 52001
Re: Gomer Holliday Development, LLC
Dear Barry:
Phone: (563) 582-7980
Facsimile: (563) 582-5312
E-mail: bkane@kanenorbylaw.com
Enclosed please find an executed Assignment of Storm Water Facilities Fee Agreement with
respect to certain property on the Northwest Arterial. Gomer Holliday Deelopment, LLC has sold
one of its lots. The proposed Assignment is to trace the actual storm water fee responsibility to the
current owner of the real estate.
If you have any questions, please do not hesitate to contact us. If all is in order, please have
the Assignment executed by Mr. VanMilligen and return it to us for recording.
Thank you.
Best regards,
KANE, NORBY & REDDICK, P.C.
By ~'
B ian J. K e
KANE, NORBY & REDDICK, P.C.
ATTORNEYS
2100 ASBURY ROAD, SUITE 2
DUBUQUE, IA 52001-3069
Of Counsel:
Gary K. Norby
BJK:meh
Enclosure
cc: Mr. Wayne A. Briggs
Prepared Bv: Brian J. Kane, 2100 Asbury Road, Suite 2, Dubuque, IA 52001 (563) 582-7980
Return To: Brian J. Kane, 2100 Asbury Road, Suite 2, Dubuque, IA 52001 (563) 582-7980
ASSIGNMENT OF STORM WATER FACILITIES FEE AGREEMENT
AND
CONSENT TO ASSIGNMENT BY THE CITY OF DUBUQUE
This Assignment of Storm Water Facilities Fee Agreement is dated for reference
purposes the ~ day of Se,/~.c,~ , 2008.
WHEREAS, Gomer Holliday Development, LLC ("Gomer Holliday") is the partial
Successor in Interest in and to that certain City of Dubuque Storm Water Facilities Fee
Agreement (the "Agreement"), a copy of which was recorded as Instrument No. 10046-04,
records of the Dubuque County Recorder with respect to the real estate described as follows:
Lot 2 of Holliday Fourth Addition; (the "Real Estate")
WHEREAS, Gomer Holliday has sold Lot 2 of Holliday Fourth to Dubuque
West Hospitality, LLC. ("Dubuque West"); and
WHEREAS, the Agreement runs with the land.
WHEREAS, Gomer Holliday desires to assign its interest in the Agreement to Dubuque
West, as provided herein.
NOW, THEREFORE, in consideration of the terms, conditions, covenants
and performances contained herein, the parties agree as follows:
SECTION 1. Subject to the consent of the City of Dubuque (the "City"), Gomer Holliday
hereby assigns its interest in the Agreement to the following assignees:
The responsibilities related to Lot 2 of Holliday Fourth Addition (the "Gomer Holliday Real
Estate") are hereby assigned to Dubuque West.
SECTION 2. Commencing January 1, 2009 and January 1 of each year thereafter,
Dubuque West shall pay the annual detention basin and drainage channel maintenance fee
with respect to the Real Estate for the maintenance of the Northwest Arterial Detention
Basin and Drainage Channel, all in accordance with the Agreement. The parties
acknowledge that the annual fees for 2009 and each year thereafter shall be calculated by
adding 2.5% to the fee for the previous year fee for each respective parcel of real estate.
i SECTION 3. Annual fees shall be paid by the respective parties hereunder to the
~ City by not later than January 31 of each year. In the event that the annual fee is not paid
i, by January 31 for the year when it is due, the parties agree that City shall have the right to
assess the fee against the respective property for collection in the same manner as the
property tax.
SECTION 4. Dubuque West hereby assumes all responsibilities required under
the Agreement with respect to the Real Estate.
SECTION 5. The Agreement and this Assignment shall be binding on the parties and their
successors, heirs and assigns.
IN WITNESS WHEREOF, the parties executed the foregoing as of the date here first above
written. /1
COMER HOLLIDAY
DEVELOPMENT, LL
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Printed Name
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Title
DUBUQUE SPITALITY,
LLC
By:
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Printed Na e
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Title
STATE OF IOWA
COUNTY OF DUBUQUE
On this _[~'` day of c~~~> r 2008, before me, the undersigned, a Notary
Public in and for the State. of Iowa, personally appeared (~, . ~ ~~ of
Comer Holliday Development, LLC, to me personally known, who, being y me duly
sworn, who acknowledged the execution of the instrument to be hislher voluntary act and
deed for and on behalf of Comer Holliday Development, LLC.
,,P s TkOMAS KEL2ER Notary Public in and for saidPublic in and for said Sta~
i~~ Comm~ss~on Number 730754
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pow Se tember 28, 200
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1,EBUR KA _
STATE mfr
COUNTY OF E-~` s~,
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On this t n ~= day f SEP~6~ 2008, before me; the undersigned, a Notary
Public in and for the State of~e~En~s-, p~e~onally appeared L~ 6a,.. ~i,n; d, ~ of
Dubuque West Hospitality, LLC, to me personally known, who, being by me duly sworn,
who acknowledged the execution of the instrument to be his/her voluntary act and deed
for and on behalf of Dubuque West Hospitality, LLC.
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CONSENT TO ASSIGNMENT
The City of Dubuque hereby consents to the foregoing Assignment.
CITY OF DUBUQUE, IOWA
i By:
Michael C. Van Milligen, City Manager
G:\WPDOCS\MARY\Brad\Gomer Holliday (Dubuque West) Assignment of Storm Water Agreement.wpd