Dubuque Terminals Inc. Leases (Newt) Memos and Resolutions 5 3 10LEASE AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
DUBUQUE TERMINALS, INC.
(The Dove Harbor Lease) /
Th' Leas- Agreement (the Lease) dated for reference purposes this 3rd day
of May , 2010, between the City of Dubuque, Iowa, an Iowa municipal
corporation / ssor), and Dubuque Terminals, Inc., an Iowa corporation (Lessee).
SECTION 1. DEMISE AND TERM.
1.1. Demise and Term. In consideration of the rents hereinafter reserved and the
terms, covenants, conditions and agreements set forth in this Lease, Lessor hereby
leases to Lessee the real property described as follows:
A part of Lot 3 and unplatted slough in Section 19, Township 89 North,
Range 3 East of the 5th Principle Meridian all in the City of Dubuque,
Dubuque Co., Iowa containing 6.13 acres, more or less, as shown on the
attached Exhibit A, subject to surveying and platting of same
(the Demised Premises), to have and to hold for an initial term commencing as of the 1
day of February, 2013 (the Commencement Date), and ending at midnight on the 1st
day of June, 2038 (the Term), subject to all of the terms, covenants, conditions and
agreements contained herein. Lease shall not commence until prior lessee has
removed all of their property and debris from the site, and completely relinquished the
site back to the city. The initial dredging to be completed by the city, referred to in
section 6.4 of this agreement, shall also be completed prior to commencement of this
lease.
1.2. Notwithstanding the foregoing, Lessee shall have the option to terminate the
Lease effective January 31, 2014, 2015, or 2016 by delivering to Lessor not less than
sixty days prior to such termination dates written notice of the exercise of such option.
1.3. Any improvements needed to allow water access to the Demised Premises shall
be at the Lessee's expense, except for the initial dredging to be completed by the city
as per section 6.4 of this agreement. Lessee agrees that Lessee's use of the Demised
Premises shall not interfere with access from Dove Harbor or any other location to the
remainder of the parcel or any other parcel by any other person, as may reasonably be
determined by Lessor.
1.4. Lessor reserves unto itself and for the benefit of tenants of adjacent property a
driveway easement over and across Area D for ingress and egress to adjacent property
from and to Kerper Boulevard. Lessee shall at its expense maintain the driveway in a
state of good repair during the Lease Term.
042610bal
& FLEETING SERVICE, INC. d /b /a NEWT MARINE and DUBUQUE TERMINALS, INC.
v. THE CITY OF DUBUQUE, IOWA, together with a release approved as to form by
Lessor by the Plaintiffs in such action of all claims against the City of Dubuque, its
officers and employees, arising out of the rezoning of Plaintiffs South Port properties
and the expiration of Plaintiffs' leases of City property in the South Port.
SECTION 26. OTHER CONDITIONS. This Lease shall be subject to and conditioned
upon Lessor and Lessee entering to the Ice Harbor Lease attached hereto.
SECTION 27. SALE OF PRODUCTS TO LESSOR. Lessee agrees that Lessor will
not be charged more than Lessee's other customers for the same products provided by
Lessee to its other customers. For purposes of this Section 28, Lessee shall make
available to City upon request its books of record and account which show the price or
fee charged to its customers. If Lessor discovers that a customer of Lessee is being
charged a lower price or fee for the same product, Lessee shall reduce its price or fee to
Lessor to the same price or fee being charged to such other customer and shall rebate
the difference charged to Lessor for such products together with a surcharge of 25% of
the amount of such overcharges for overcharges during the preceding 12 months.
SECTION 28. DISPUTE RESOLUTION. Lessor and Lessee agree that prior to the
commencement of any judicial proceeding for any controversy arising out of or relating
to the construction or interpretation of this Lease, the parties will engage in mediation in
accordance with the Commercial Arbitration Rules of the U. S. Arbitration & Mediation,
Midwest ( "USA &M ") or the American Arbitration Association ( "AAA "). The parties shall
divide equally all costs of mediation which shall be paid immediately upon billing by the
mediation service.
LESSOR:
DUBUQUE, IOWA DUBUQUE TERMINALS, INC.
/ n A
Jeanne F. Schneider, City Clerk
17
LESSEE:
By:
Gary Newt
By:
Carter Newt
2.1. Rent.
042610bal
LEASE AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
DUBUQUE TERMINALS, INC.
(The Ice Harbor Lease)
SECTION 2. RENT, TAXES, AND OTHER PAYMENTS.
SECTION 3. TITLE TO IMPROVEMENTS AND TRADE FIXTURES.
Agreement (the Lease) dated for reference purposes this 3rd day
of May, 2010, between the City of Dubuque, Iowa, an Iowa municipal
essor), and Dubuque Terminals, Inc., an Iowa corporation (Lessee).
SECTION 1. DEMISE AND TERM. In consideration of the rents hereinafter reserved
and the terms, covenants, conditions and agreements set forth in this Lease, Lessor
hereby leases to Lessee the real property shown on Exhibit A (collectively the Demised
Premises), to have and to hold for an initial term commencing as of the 1 day of March,
2010, and ending at midnight on the 30 day of June, 2014 (the Term), subject to all of
the terms, covenants, conditions and agreements contained herein.
Expiration of this lease after 4 years is contingent upon acquisition of the Dove Harbor
Lease, as attached hereto. If the Dove Harbor Demised Premises are not available as
required by the Dove Harbor Lease, at no fault of Lessee, the Term of this Ice Harbor
Lease shall be extended to midnight on the 30 day of June, 2015 on the same terms
and conditions herein.
(1) Parcel A. Lessee shall pay Lessor, in addition to taxes, fees, rates,
charges, levies, assessments, and all other charges required to be paid under
this Lease by Lessee, rent for Parcel A in the amount of $100,000.00 per year, in
twelve equal monthly payments commencing on the 1 day of July, 2010 and on
the first day of each month thereafter during the Term.
(2) Parcel B. Lessee shall have the right to use the shoreline shown along
Parcel B but only when the gates to the Ice Harbor are closed due to flooding
and only for the purpose of docking vessels or barges. Lessee shall pay Lessor,
rent for use of the Parcel B shoreline in the amount of $350.00 per day or any
part of a day.
2.2 Taxes. Lessee shall pay all property taxes on the Leased Premises, including
the land and any improvements thereon, due and payable during the Term of the Lease.
the difference charged to Lessor for such products together with a surcharge of 25% of
the amount of such overcharge.
SECTION 29. DISPUTE RESOLUTION. Lessor and Lessee agree that prior to the
commencement of any judicial proceeding for any controversy arising out of or relating
to the construction or interpretation of this Lease, the parties will engage in mediation in
accordance with the Commercial Arbitration Rules of the U. S. Arbitration & Mediation,
Midwest ( "USA &M ") or the American Arbitration Association ( "AAA "). The parties shall
divide equally all costs of mediation which shall be paid immediately upon billing by the
mediation service.
LESSOR:
CITY OF DUBUQUE, IOWA
By:
Attest:
Buol, Mayor
Roy D.
Jeanne F. Schneider, City Clerk
16
LESSEE:
DUBUQUE TERMINALS, INC.
By:
Gary Newt, President
By:
Carter Newt
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Dubuque Terminals, Inc. (Newt) Leases
DATE: April 29, 2010
Dubuque
M- America City
1 1r
2007
In the 1950's and 1960's, the City of Dubuque Dock Commission had full authority over
leases for City -owned riverfront property and executed leases for between 50 and 100
years at below market rate with no escalation clauses. The 50 -year leases are now
coming due. The Dock Commission no longer exists and City land leases are now
considered by the City Council.
am certain the Dock Commission had their legitimate reasons for these leases.
However, the City's current position with these leases is that in some years the leases
cost the City more than the City receives in revenue. Over the last five years, the total
net revenue gain to the City has been approximately $43,000 or $8,600 per year on
average. This industrial riverfront property is approximately 70 acres, which should be
generating annual revenues of between two and three million dollars. Remembering
that every approximately $200,000 in annual City revenues can reduce the property tax
impact on the average homeowner by 1%, this level of new income would have a
positive impact on property taxes of between 10% to 15 %. This is especially important
since current projections of property tax increases, without any revenue increase or
service cuts, for the next four years are:
Fiscal Year 2012
Fiscal Year 2013
Fiscal Year 2014
Fiscal Year 2015
10.08%
5.50%
10.53%
4.29%
Since 2007, the City has been attempting to negotiate lease extensions with some of
the existing tenants of the approximately 70 acres of industrial riverfront property as
their leases are beginning to expire. In the matter of Agri -Grain Marketing /Cargill, who
currently leases the site in question with this agenda item, the attached July 23, 2008
letter, was sent to them reminding them that their lease will soon expire (July 25, 2012)
and that if an extension of their lease was not negotiated by August 13, 2008, that the
City would market the property to other parties. No extension of their lease has been
negotiated.
The City has now negotiated two new leases with Dubuque Terminals, Inc. (Newt
Marine). One of the leases is for the Ice Harbor area and is a short-term lease and the
other lease is a long -term lease in Dove Harbor.
The proposed Ice Harbor lease is for a 4 -year term and the Dove Harbor lease is for 25
years, beginning in 2012, when the Agri -Grain Marketing /Cargill lease expires.
The major provision of the two leases are as follows:
Ice Harbor Lease
1.) Rent for harbor frontage and up to 2 acres of water area in the harbor will be
$100,000 per year effective July 1, 2010.
2.) Dubuque Terminals, Inc. must vacate the shoreline along the Mississippi River,
including removal of all equipment and materials, by June 30, 2010.
3.) Dubuque Terminals, Inc. must vacate the inland leasehold area, including
removal of all equipment and materials from the storage yard, and welding
shop, upon expiration of the lease on August 31, 2012.
4.) Dubuque Terminals, Inc. must remove 10 bulk liquid tanks by December 31,
2018.
5.) The City agrees to make a five -year low interest loan to Dubuque Terminals,
Inc. in an amount not to exceed $50,000 to assist with the costs of such
removal.
6.) Both parties agree to cooperate in efforts to jointly market properties in the
South Port area.
7.) Dubuque Terminals, Inc. agrees to dismiss the pending appeal of the lawsuit
against the City.
8.) This lease is subject to and conditional upon entering into a lease in Dove
Harbor (attached).
Dove Harbor Lease
1.) The lease is for 6.13 acres of land that is currently leased by Agri -Grain
Marketing.
2.) The lease term begins in February 2013 and terminates June 1, 2038.
3.) At the end of each of the first three years, the Dubuque Terminals, Inc. has the
option to terminate this lease.
4.) The lease rental rate is $50,000 per acre per year. Portions of the site will be
discounted to $10,000, $16,666 and $25,000 per acre because those areas
cannot be built upon and some are at times under water.
5.) Dubuque Terminals, Inc. must pay property taxes.
6.) Improvements to the site are at the expense of Dubuque Terminals, Inc. Upon
termination of the lease all improvements become the property of the City.
7.) The City agrees to provide 10 -year Tax Increment Financing for qualified
leasehold improvements completed within the first five years of the lease.
8.) Dubuque Terminals, Inc. is responsible for landscaping improvements.
9.) The City is responsible for dredging the harbor area one time at the beginning
of the lease. Thereafter, all maintenance and dredging is the responsibility of
Dubuque Terminals, Inc.
10.) Dubuque Terminals, Inc. agrees that the City will not be charged more than its
other customers for the same products provided by Dubuque Terminals, Inc. to
its other customers.
11.) Dubuque Terminals, Inc. agrees to dismiss the pending appeal of the lawsuit
against the City.
12.) If the City executes a new lease for any industrial property in the Dove Harbor
area to any other person for industrial use for rent per acre per year Tess than
an amount equal to $50,000 per acre per year, the rent in this agreement shall
be reduced to that lesser amount.
It is very significant that Dubuque Terminals has agreed to vacate the area south of the
Ice Harbor. Since the adoption of the Planned Unit Development in 2003, the City has
seen over $300 million in investment in the North Port of Dubuque and anticipates that
development to carry over to the South Port. In fact, the City connected the two areas
with the construction of Ice Harbor Drive around the west edge of the Ice Harbor.
Economic Development Director Dave Heiar is recommending approval of the two
leases.
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
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Dubuque Terminals, Inc. (Newt) Leases
DATE: April 27, 2010
Dubuque
AI- Anaxlca city
2007
INTRODUCTION
This memorandum provides a brief description of the attached leases negotiated with Dubuque
Terminals, Inc. for the Ice Harbor and Dove Harbor areas and provides a correction to a map
previously submitted to the Council.
BACKGROUND /DISCUSSION
The Council packet for the April 5 meeting included a map and brief notes of the City's
riverfront leases (referred to as Attachment II).
One of the dates on this attachment was incorrect. The current Attachment I I has the corrected
termination date for the Freebird II, LLC property lease located adjacent to the Shot Tower. In
the original attachment the expiration date was incorrectly shown as 11- 30 -10. It should have
stated the expiration date of this lease as 11- 30 -21.
Dubuque Terminals, Inc. has leased land and waterfront areas in the Ice Harbor area. The
lease for the waterfront areas expired on February 28, 2010 and the lease on the inland parcel
will expire on August 31, 2012 (see attached map). Over the past year, City staff has had
several meetings with representatives of Dubuque Terminals, Inc. to negotiate future lease
terms, with the understanding that the Ice Harbor will gradually be transforming to a mixed use
PUD zoning rather than the previous industrial utilization.
A portion of the business use by Dubuque Terminals, Inc. is river dependent. Therefore, the
company wants a short term lease to continue operation in the Ice Harbor until other waterfront
property becomes available in the Dove Harbor area. The proposed leases would achieve that
goal. The proposed Ice Harbor lease is for a 4 year term, with a potential 1 year extension. The
Dove Harbor lease will not begin until after the current lease for the property with Agri -Grain
Marketing expires in 2012.
The major provisions of the two leases are as follows:
Ice Harbor
1.) Rent for harbor frontage and up to 2 acres of water area in the harbor will be $100,000 per
year effective July 1, 2010.
2.) Dubuque Terminals, Inc. must vacate the shoreline along the Mississippi River, including
removal of all equipment and materials, by June 30, 2010. Dubuque Terminals, Inc. will
have the right to use shoreline along the Mississippi River when the gates to the Ice
Harbor are closed due to flooding at a cost of $350 /day. Any vessels or barges docked
may be no more than 2 vessels or barges deep, must at all times be maintained in a
good state of repair, and may not be used for the storage of junk or salvage material.
3.) Property taxes will be paid by Dubuque Terminals, Inc.
4.) Improvements to the site become property of the City upon termination of the leases.
5.) Dubuque Terminals, Inc. is responsible for the cost of all improvements to the site.
6.) Dubuque Terminals, Inc. must vacate the inland leasehold area, including removal of all
equipment and materials from the storage yard, and welding shop, upon expiration of the
lease on August 31, 2012.
7.) Dubuque Terminals, Inc. must remove 10 bulk liquid tanks by December 31, 2018.
8.) The City agrees to make a five -year low interest loan to Dubuque Terminals, Inc. in an
amount not to exceed $50,000 to assist with the costs of such removal.
9.) Both parties agree to cooperate in efforts to jointly market properties in the South Port area.
10.) Dubuque Terminals, Inc. agrees to dismiss the pending appeal of the lawsuit against the
City.
11.) This lease is subject to and conditional upon entering into a lease in Dove Harbor
(attached).
12.) Dubuque Terminals, Inc. agrees not to charge the City more than its other customers for
the same products provided to others.
Dove Harbor
1.) The lease is for 6.13 acres of land that is currently leased by Agri -Grain Marketing (see
attached map).
2.) The lease term begins in February 2013 and terminates June 1, 2038.
3.) At the end of each of the first three years, the Dubuque Terminals, Inc. has the option to
terminate this lease.
4.) The lease rental rate is $50,000 per acre per year. Portions of the site will be discounted to
$10,000, $16,666 and $25,000 per acre because those areas cannot be built upon and
some are at times under water (see attached map).
5.) City agrees that if at any time during the term of this lease the City leases industrial property
in the Dove Harbor for less than these amounts, adjusted by the cost of living clauses,
that the Lessee's rent shall be reduced to such lesser amount.
6.) Dubuque Terminals, Inc. must pay property taxes.
7.) Improvements to the site are at the expense of Dubuque Terminals, Inc. Upon termination of
the lease all improvements become the property of the City.
8.) The City agrees to provide 10 -year Tax Increment Financing for qualified leasehold
improvements completed within the first five years of the lease.
9.) Dubuque Terminals, Inc. is responsible for landscaping improvements.
10.) The City is responsible for dredging the harbor area, one time at the beginning of the lease.
Thereafter, all maintenance and dredging is the responsibility of Dubuque Terminals,
Inc.
11.) Dubuque Terminals, Inc. agrees that the City will not be charged more than its other
customers for the same products provided by Dubuque Terminals, Inc. to its other
customers.
12.) Dubuque Terminals, Inc. agrees to dismiss the pending appeal of the lawsuit against the
City.
RECOMMENDATION /ACTION STEP
I recommend that following the public hearing set for May 3, 2009 the Council approve the
attached resolutions authorizing the Mayor to sign the proposed leases and the disposal of the
City's interest in this public property.
Attachments
F: \USERS\Econ Dev \Newt\20100503 Newt Leases Approval Council Memo.doc
RESOLUTION NO. 148-10
APPROVING THE DISPOSAL OF AN INTEREST IN REAL PROPERTY OWNED BY
THE CITY OF DUBUQUE BY LEASE BETWEEN THE CITY OF DUBUQUE, IOWA
AND DUBUQUE TERMINALS, INC., AN IOWA CORPORATION (THE DOVE
HARBOR LEASE)
Whereas, the City of Dubuque, Iowa (City) is the owner of the real property
legally described as follows:
; and
A part of Government Lot 3 and unplatted slough in Section 19, Township
89 North, Range 3 East of the 5th Principle Meridian all in the City of
Dubuque, Dubuque Co., Iowa containing 6.13 acres, more or less, as
shown on the attached Exhibit A
Whereas, Dubuque Terminals, Inc. desires to lease a part of the property as
shown on Exhibit A for industrial uses and other river related business activities upon
the terms set forth in a Lease Agreement which is on file at the office of the City Clerk,
City Hall, 13 and Central Avenue, Dubuque, Iowa; and
Whereas, City and Dubuque Terminals, Inc. have agreed to the Lease
Agreement, which among other things, provides for a term through June 1, 2038; and
WHEREAS, on May 3, 2010, the City Council pursuant to notice published as
required by law held a public hearing on its intent to dispose of the foregoing interest in
real property and overruled all objections thereto;
Whereas, the City Council believes it is in the best interest of the City of Dubuque
to approve the Lease Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF. DUBUQUE, IOWA:
Section 1. The Lease Agreement between the City and Dubuque Terminals,
Inc. is hereby approved and the City Manager is authorized to execute said Lease
Agreement on behalf of the City of Dubuque
Passed, approved and adopted this 3 rd day of May, 2010.
eanne F. Schneider, CMC, City Clerk
F: \USERS \Econ Dev \Newt \Resolution Newt Approve Lease Dove Harbor _04 -27- 2010 -1.doc
Roy D. Buol, Mayor
EXHIBIT A
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RESOLUTION NO. 149-10
APPROVING THE DISPOSAL OF AN INTEREST IN REAL PROPERTY OWNED BY
THE CITY OF DUBUQUE BY LEASE BETWEEN THE CITY OF DUBUQUE, IOWA
AND DUBUQUE TERMINALS, INC., AN IOWA CORPORATION (THE ICE HARBOR
LEASE)
Whereas, the City of Dubuque, Iowa (City) is the owner of the real property
shown on Exhibit A attached hereto; and
Whereas, Dubuque Terminals, Inc. desires to lease a part of the property as
shown on Exhibit A for industrial uses and other river related business activities upon
the terms set forth in a Lease Agreement which is on file at the office of the City Clerk,
City Hall, 13 and Central Avenue, Dubuque, Iowa; and
Whereas, City and Dubuque Terminals, Inc. have agreed to the Lease
Agreement, which among other things, provides for a term through June 30, 2014 with a
potential one (1) year extension (The Ice Harbor); and
WHEREAS, on May 3, 2010, the City Council pursuant to notice published as
required by law, held a public hearing on its intent to dispose of the foregoing interest in
real property and overruled all objections thereto;
Whereas, the City Council believes it is in the best interest of the City of Dubuque
to approve the Lease Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Lease Agreement between the City and Dubuque Terminals, Inc.
is hereby approved and the City Manager is authorized to execute said Lease Agreement
on behalf of the City of Dubuque.
Attest:
eanne F. Schneider, CMC
City Clerk
Passed, approved and adopted this 3 day of May, 2010.
F: \USERS \Econ Dev \Newt \Resolution Newt Approve Lease Ice Harbor 04- 27- 2010.doc
eG
cig lam,
Roy D. Buol, Mayor
Doc ID: 010938380003 Type: GEN
Kind: MEMORANDUM OF LEASE
Recorded: 04/06/2022 at 01:10:18 PM
Fee Amt: $17.00 Page 1 of 3
Dubuque County Iowa
John Murphy Recorder
File2022-00004519
Prepared by: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
Return to: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113
MEMORANDUM OF LEASE AGREEMENT
A Lease Agreement entered into by and between the City of Dubuque, Iowa, an
Iowa municipal corporation, of Dubuque, Iowa, and Dubuque Terminals, Inc for the real
estate described as follows:
A part of Lot 3 and unplatted slough in Section 19, Township 89 North, Range 3
East of the 5th Principle Meridian all in the City of Dubuque, Dubuque Co., Iowa
containing 6.13 acres, more or less, as shown on the attached A, subject to
surveying and platting of same.
The Lease Agreement is dated for reference purposes the 3rd of May, 2010 and
contains covenants, conditions, and restrictions concerning the use of said premises.
This Memorandum of Lease is recorded for the purpose of constructive notice. In
the event of any conflict between the provisions of this Memorandum and the Lease
Agreement itself, executed by the parties, the terms and provisions of the Lease
Agreement shall prevail. A complete counterpart of the Lease Agreement, together with
any amendments thereto, is in the possession of the City of Dubuque and may be
examined at its offices as above provided.
Dated this � day of !L4 l—, 2022.
CITY OF DUBUQJ E. IOWA
in
Barry A/Lindahl, Esq., Senior Counsel
�00
�QDBQ C" Clerk
STATE OF IOWA
ss:
DUBUQUE COUNTY
On this (a* day of f i� , 2022, before me, a Notary Public in and for the State of
Iowa, in and for said county, personally appeared Barry A. Lindahl, , to me personally
known, who being by me duly sworn did say that he is Senior Counsel of the City of
Dubuque, a Municipal Corporation, created and existing under the laws of the State of
Iowa and that said instrument was signed on behalf of said Municipal corporation by
authority and resolution of its City Council and said Senior Counsel acknowledged said
instrument to be the free act and deed of said Municipal Corporation by it voluntarily
executed.
w L JONI LYN YEDINGER
No Public, State of Iowa � +' CommisslonNumbw832198
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