Cooper Development First Amendment to Development 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: Amendment to Agreement with Cooper Development
DATE: October 28, 2008
Economic Development Director Dave Heiar recommends City Council approval of a
loan assumption and the First Amendment to Agreement with Cooper Development
Company, LLC for the "Bricktown" parking lot located at the southeast corner of 3~a
Street and Locust Street.
This amendment incorporates information on the responsibilities of operating the
electronic sign. The amendment also includes a modification to the agreement that the
City assumes the balance of a $55,415.06 loan that Cooper Acquisitions has with
Dubuque Initiatives, which loan was initially used to pave the parking lot and make
improvements to the lot and signage. This portion of the amendment was actually part
of the original negotiations for the purchase of the parking lot, but through oversight was
not included in the original agreement.
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
David J. Heiar, Economic Development Director
THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
DATE: October 24, 2008
TO: Michael C. Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
RE: Amendment to Agreement with Cooper Development
INTRODUCTION
This memorandum presents for City Council consideration a resolution on the loan
assumption and the first amendment to agreement with Cooper Development Company,
LLC to maintain the City owned parking lot at the corner of 3~d Street and Locust Street.
The original agreement was approved by the City Council on July 7, 2008.
BACKGROUND
As a condition to the City purchasing the parking lot from Paul Fahey, a separate
agreement was reached between the City and Cooper Development Company, LLC. The
agreement provided for the following conditions;
1) to retain the Real Estate as a parking lot for ten years from the date of closing in
consideration for payment by Cooper Development LLC to City of $1,000.00 per
month for such ten year period.
2) The City and Cooper are the owners of the existing sign for the Bricktown
Restaurant located on the Property. The City agrees to allow the sign to remain on
the property during the agreement period. Cooper is responsible for maintenance
of the sign. The City will have full ownership of the sign at the completion of the
agreement.
3) The City will provide two unmetered stalls for Bricktown staff at no additional cost.
The City will determine the location of the stalls.
4) The City will install parking meters on all remaining stalls on the Property. The
meters will be at least one hour meters. The meter rates must be equal to the
meters in the immediate vicinity of the Property.
DISCUSSION
Subsequent to approving the original agreement, City staff discovered a previous sign
agreement between Cooper Acquisitions (the previous owner) and the City. This
agreement had more specific language related to the ownership and control of the sign. It
also more clearly delineated the responsibilities of operating the electronic sign. In
particular, this agreement provided for the following:
1. Electricity is provided at Cooper's expense.
2. The City is responsible for insurance coverage.
3. Other operational costs will be shared equally.
4. The electronic sign shall operate 24R and messages shall be 50% for the
business and 50% for the City. Cooper staff will program and update messages.
The proposed amendment would incorporate this new information into the agreement
with Cooper Development.
The other proposed modification to this agreement is that the City assumes the balance
of a $55,415.06 loan that Cooper Acquisitions has with Dubuque Initiatives. This loan was
initially used by Cooper to pave the parking lot and make improvements to the lot
including the brick walls and signage. This portion of the amendment was actually part of
the original negotiations for the purchase of the parking lot. It was my oversight that it was
not included in the original agreement. Prior to assuming this loan, the City is required to
hold a public hearing.
RECOMMENDATION
I recommend that following the public hearing, the City Council approve the attached
resolution to loan assumption and the first amendment to the agreement with Cooper
Development Company, LLC for the "Bricktown" parking lot located at the southeast
corner of Locust and 3r Streets.
ACTION STEP
The action step is for the City Council to approve the attached resolution.
Cc: Tim Horsfield
Jenny Larson
F:\USERS\DHeiar\Bricktown Parking Lot\Cooper Development amend Agreement PH memo.doc
RESOLUTION NO. 395-08
APPROVING AN AMENDMENT TO AGREEMENT WITH COOPER DEVELOPMENT
COMPANY, LLC IN REGARD TO THE PARKING LOT LOCATED AT THE
SOUTHEAST CORNER OF 3RD STREET AND LOCUST STREET.
Whereas, the City Council approved an agreement with Cooper Development
Company, LLC on July 7, 2008 to facilitate the purchase of a parking lot located at the
southeast corner or 3rd Street and Locust Street; and
Whereas, the City Council finds that it is in the best interests of the City of
Dubuque to amend this agreement; and
Whereas, Cooper Development Company, LLC has agreed to the conditions of
the Amendment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the Amendment attached hereto, is hereby approved.
Section 2. That the City Manager is hereby authorized and directed to execute, on
behalf of the City of Dubuque, Iowa, said Amendment.
Passed, approved and adopted this 3rd day of November, 2008.
Roy D uol
Mavor
Attest:
Jeanne F. Schneider
City Clerk
F:\USERS\DHeiar\Bricktown Parking Lot\Resolution approving amendment to agreement with Cooper2.doc
This First Amendment to Agreement 13et~een the City of Dubuque, Iowa
and The Cooper Development Company, L.L.C, is dated for reference purposes
the 3rd day of November, 2008
Whereas, The City of Dubuque, lovva (City) and The Cooper Development
Company, LLC (Cooper) entered into an Agreement dated for reference
purposes the 7th day of July, 2008; and
whereas, City and Cooper noa~ desire to amend the Agreement as set
forth herein.
~®VV, THEREF®RE, IT IS AGO~EE® ~Y AN® SETVIIEEN THE PARTIES
THAT THE AGREEMENT IS A~OIEN®E® AS F®LL®~lS:
Section 1. SECTI®N 2 RESTAU NT SIGN is amended to read a~
-fo~lovvs:
~T T T t o
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CTI ~ 1. 9J PTA F I Y °To City air ~ ~®
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as~~arne responsibility #or payment of -the i~alar~c~ ~n ~ ' ~~ to
€ta# iltn~ay of A ri ; 20~, in ~hieh C®mpan~y i~ the- Pr®mis®r and
®ubuque Initiatives is the Pr®misee, the principle balance ®f which is
54, 862.74 a5 ®f the3lstday ®f October , 2Q 08,
Secti®n 3. All other terms and cOnditi®ns ®f the Agreement shall remain in
full f®rce and effect.
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F:\USPRS\DHeiar\Bricktown Parking Lot\Amendment to Parking Ngreement100808bal.doc
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1. City agrees to execute and deliver to Dubuque Initiatives a promissory
note in the form attached hereto.
2. Upon delivery t~f the City dote to Dubuque anitjativ bt~q
Initiatives shall deliver to Cooper evidence of the termination of the Loan
f.
CI F lJ t3 , I
y:
Michael C. Van Milligan
City Manager
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THE COOPER DEVELOPMENT COMPANY, L.L.C.
By:
James A. Miller, Manager
By:
Thomas A. Miller,
By
Rick Ackley
DUBUQUE INITIATIVES
By:
(Signature)
(Name)
(Title)
F:\USERS\DHeiar\Bricktown Parking Lot\DubuquelnitiativesCityCooperAgreement_1.doc
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PROMISSORY NOTE
$55,415.06
Date
FOR VALUE RECEIVED, the City of Dubuque, Iowa promises to pay to the order of
Dubuque Initiatives at Dubuque, Iowa, the sum of $55,415.06 with interest thereon
from September 11, 200, payable monthly at the rate of 3% per cent per annum until
payment hereof as follows:
$516.74 per month commencing on the 11th day of September, 2008, and
on the 11~" day of each month thereafter until paid in full.
CITY OF DUBUQUE, IOWA
By:
Michael C. Van Milligan
City Manager
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