Agreement with Kwik Trip, Inc. - Kwik Trip, Inc. Convenience Store/Gas Station at Intersection of Kerper Boulevard and Kerper CourtCity of Dubuque
City Council Meeting
Consent Items # 021.
Copyrighted
December 19, 2022
ITEM TITLE: Agreement with Kwik Trip, Inc. - Kwik Trip, Inc. Convenience Store/Gas
Station at Intersection of Kerper Boulevard and Kerper Court
SUMMARY: City Manager recommending City Council approval of an Agreement with
Kwik Trip, I nc. (KTI) for off -site roadway improvements at the
intersection of Kerper Boulevard and Kerper Court related to the
proposed Convenience Store/Gas Station site improvements at said
intersection.
RESOLUTION Approving an Agreement between the City of Dubuque,
Iowa and Kwik Trip, Inc. for construction of certain off -site public roadway
improvements at the intersection of Kerper Boulevard and Kerper Court
related to the proposed site improvements at said intersection
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description
Development Agreement with Kwik Trip, Inc. Kerper
Blvd and Kerper Court-MVM Memo
Staff Memo
Resolution
Traffic Safety Improvements Agreement
Type
City Manager Memo
Staff Memo
Resolutions
Supporting Documentation
THE C
Dubuque
DUjIBQTE
WAWca 914
Masterpiece on the Mississippi
YP pp
aoo�•o 13
z0i7*20*�oi9
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Agreement with Kwik Trip, Inc.
Kwik Trip, Inc. Convenience Store/Gas Station at Intersection of Kerper
Boulevard and Kerper Court
DATE: December 15, 2022
City Engineer Gus Psihoyos is recommending City Council approval of an Agreement
with Kwik Trip, Inc. (KTI) for off -site roadway improvements at the intersection of Kerper
Boulevard and Kerper Court related to the proposed Convenience Store/Gas Station
site improvements at said intersection.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
If•[yT/f•iWIIIIIIIIIIIIIII IIIIIIIII
Attachment
cc: Crenna Brumwell City Attorney
Cori Burbach, Assistant City Manager
Gus Psihoyos, City Engineer
Nate Kieffer, Land Surveyor
THE CITY OF
DUB TE
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
Dubuque
AII•America City
\;❑�Ufwl_OVM�i iiF
2ao7•2012-2013
2017*2019
SUBJECT: Agreement with Kwik Trip, Inc.
Kwik Trip, Inc. Convenience Store/Gas Station at Intersection of Kerper
Boulevard and Kerper Court
DATE: December 15, 2022
INTRODUCTION
The purpose of this memorandum is to request City Council approval of an Agreement
with Kwik Trip, Inc. (KTI) for off -site roadway improvements at the intersection of Kerper
Boulevard and Kerper Court related to the proposed Convenience Store/Gas Station
site improvements at said intersection.
BACKGROUND
Recently, KTI had submitted a site plan to improve the 3.45-acre site located at the
southwest quadrant of the intersection of Kerper Boulevard and Kerper Court. The
proposed site development includes a KTI convenience store and gas station. The site
improvements will include both car/truck and semi fueling stations.
DISCUSSION
During the site plan review process, the City requested that KTI hire a consultant to
perform a Traffic Impact Study due to the fact that convenience stores and gas stations
are high traffic generator land uses. According to the traffic study prepared for Kwik
Trip by Kimley Horn and dated 04-26-2021, intersection improvements, including traffic
signals, would be required to adequately address the traffic impacts from the proposed
KTI site development. The traffic study also states that a roundabout may be
considered, as both would provide sufficient capacity to accommodate future traffic
volumes. The City prefers roundabouts to over signalized intersections for the following
reasons:
1. When planning for intersection improvements, the City of Dubuque prefers
roundabouts to traffic signals whenever appropriate conditions exists.
2. Roundabouts save the taxpayers money in maintenance and electricity costs over
the life of the project.
3. Roundabouts are easier to maintain than signalized intersections.
4. Roundabouts are safer for pedestrians/bicyclists and prevent head on or T-bone
crashes.
5. Roundabouts offer improved flexibility for business access/Roadway locations.
6. Roundabouts effectively and safely slow traffic and improve traffic flow.
7. Roundabouts are being added by local and state governments across the US.
Today, they are commonplace for large vehicle operators such as semi or dump
truck drivers.
8. Roundabouts reduce fuel consumptions and save money, especially for truck
drivers.
A roundabout at the subject intersection would work well in concert with the planned
roundabouts to the south along the 16th Street corridor.
It is the City's policy to require developers to pay for the necessary public traffic safety
and street improvements required based on the development's traffic impacts. The City
of Dubuque has entered into an agreement (see agreement attached) with KTI setting
forth terms and conditions for the off -site work. Per the Agreement, the City is requiring
that KTI be responsible for one-half, but to exceed $750,000, of the estimated
$1,500,000 cost for the design and construction of the roundabout intersection,
including right of way acquisition. The City will design, construct, and conduct right of
way acquisition for the project. The intersection improvements will include a two-lane
roundabout intersection with street lighting, sidewalk, and underground utilities and
other appurtenances. The City will own and operate the off -site public street
intersection (roundabout) improvements. The City will start on the design and
construction of the project immediately after the Agreement is executed by the City and
KTI. KTI has agreed, at no cost to City, to dedicate to the City all street right-of-way
necessary for the construction of the roundabout improvements.
KTI plans to begin construction of the proposed private site improvements in the Spring
of 2024 and to be open for business by December of 2024. The City will construct and
have the roundabout intersection operational prior to the opening of the Convenience
Store/Gas Station business.
A copy of the Agreement executed by KTI is attached.
RECOMMENDATION
I recommend that the City approve the Agreement with KTI for off -site roadway
improvements at the intersection of Kerper Boulevard and Kerper Court related to the
proposed Convenience Store/Gas Station site improvements at said intersection per the
terms of the attached Agreement.
ACTION TO BE TAKEN
I respectfully request adoption of the attached resolution approving said Agreement and
authorizing the City Manager to execute said Agreement.
Attach.
Prepared by: Nate Kieffer, PE/PLS
CC' Bob Schiesl, Assistant City Engineer
Wally Wernimont, Planning Services Manager
John Klosterman, Public Works Director
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA. (563)5894100
RESOLUTION NO. 387-22
APPROVING AN AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND KWIK
TRIP, INC. FOR CONSTRUCTION OF CERTAIN OFF -SITE PUBLIC ROADWAY
IMPROVEMENTS AT THE INTERSECTION OF KERPER BOULEVARD AND KERPER
COURT RELATED TO THE PROPOSED SITE IMPROVEMENTS AT SAID
INTERSECTION
WHEREAS, Kwik Trip, Inc. (KTI) has proposed a development project (the Project)
at the intersection of Kerper Boulevard and Kerper Court; and
WHEREAS, the City of Dubuque has determined that the Project will require certain
improvements to the public right of way of Kerper Boulevard and Kerper Court and KTI
agrees that such improvements are reasonable and necessary; and
WHEREAS, the City of Dubuque has negotiated an Agreement, subject to City
Council approval, with KTI for the construction of off -site public roadway improvements at
the intersection of Kerper Boulevard and Kerper Court related to the proposed private site
improvements by KTI at the southwest quadrant of said intersection; and
WHEREAS, the City Council finds that it is in the best interest of the City of Dubuque
to approve the Agreement attached hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Agreement attached hereto is hereby approved.
Section 2. The City Manager is authorized and directed to execute the Agreement
on behalf of the City of Dubuque and to take such action as may be necessary to carry out
the terms of the Agreement.
Passed, Approved, and Adopted this 19th day of December, 2022.
r
Attest:
A &*W017
Adrienne N. Breitfelder, City Clerk
TRAFFIC SAFETY IMPROVEMENTS AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
KWIK TRIP, INC.
This Agreement (the Agreement), dated for reference purposes the 19-tb day of
December , 2022, is made and entered into by and between Kwik Trip, Inc., a
Wisconsin corporation (Kwik Trip) and the City of Dubuque, Iowa (City).
Whereas, Kwik Trip is the Contract Buyer of the property legally described as:
Lot 2 of Kerper Industrial Park No. 2, in the City of Dubuque, Iowa, according
to the recorded plat thereof
and as shown on Exhibit A (the Real Estate); and
Whereas, Kwik Trip desires to develop the Real Estate for a convenience
store/fueling station (the Development Project) as conceptually shown on Exhibit B; and
Whereas, City has determined that the Development Project will require certain
traffic safety improvements, including but not limited to a two-lane roundabout intersection
with street lighting, sidewalk, and underground utilities and other appurtenances, to the
public right of way of Kerper Boulevard and Kerper Court as set forth herein and as shown
conceptually on Exhibit C (the Required Improvements) and Kwik Trip agrees that such
improvements are reasonable and necessary; and
Whereas, City is planning to design and construct the Required Improvements as
part of a future CIP project, with the exception of the installation of sidewalks abutting
Kwik Trip's property along Kerper Boulevard ("Sidewalks"), which shall be constructed by
Kwik Trip at Kwik Trip's sole expense.; and
Whereas, City is willing to allow the construction of the Development Project on
the Real Estate subject to the conditions set forth herein.
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN KWIK TRIP AND CITY AS
FOLLOWS:
SECTION 1. CITY OBLIGATIONS.
1.1 City agrees to design and construct the Required Improvements as shown
conceptually on Exhibit C. The estimated cost of the Required Improvements is
$1, 500, 000.
1.2 The Required Improvements project will include the installation of the Sidewalks,
which shall be constructed by Kwik Trip at Kwik Trip's sole expense.
12152022
With the exception of the Sidewalks, City agrees to construct the Required Improvements
so that they are operational by December 1, 2024. If construction of the Required
Improvements has not been materially commenced by July 1, 2024 City will forfeit/repay
to Kwik Trip the full Escrow Amount (as defined in Section 2.1 herein).
The City shall be excused from its obligations under this Section 1 if and to the extent and
during such time as the City is prevented, impeded, or hindered, unable to perform its
obligations or is delayed in doing so due to events or conditions outside of the City's
reasonable control and after the City has taken reasonable steps to avoid or mitigate such
event or its consequences including, without limitation in any way, as the result of any
acts of God, war, fire, or other casualty, riot, civil unrest, extreme weather conditions,
terrorism, strikes and/or labor disputes, pandemic, epidemic, quarantines, government
stay-at-home orders, municipal and other government orders, or other matter beyond the
control of such party.
SECTION 2. KWIK TRIP OBLIGATIONS.
2.1 Subject to Section 1.3, KwikTrip agrees to contribute to City fifty percent (50%)
toward the costs of the Required Improvements, including but not limited to engineering,
right of way acquisition and construction, provided however, that such costs required by
Kwik Trip shall not exceed $750,000.
Within thirty (30) days after Kwik Trip's acquisition of the Real Estate, Kwik Trip must
place $750,000 (the Escrow Amount) in an escrow account for the benefit of City (the
Escrow Account) pursuant to an Escrow Agreement acceptable in form to City and Kwik
Trip. Funds in the Escrow Account will be available to City any time City in its sole
discretion deems necessary.
2.2 KwikTrip agrees, at no cost to City, to dedicate to City by plat acquisition, the plat to
be prepared by City (which shall be reviewed and approved by Kwik Trip), all street right-
of-way necessary for the construction of the Required Improvements as conceptually
shown on Exhibit D. Kwik Trip also agrees to pay to City upon receipt of a statement from
City the property taxes prorated to the date of recording of the plat for the property
dedicated to City
2.4 Kwik Trip agrees to be solely responsible for the costs of any necessary utility
connections and connection fees for the Development Project
2.5 City will issue all required permits for construction of the Development Project after
all required approvals of the site plan are granted for the Development Project. Kwik Trip
will receive its certificate of occupancy for the Development Project when the
Development Project has been completed as required by the City approved site plans
and to the satisfaction of the City Inspection and Construction Services Division and the
earlier of (i) the date that the Required Improvements are operational, as determined by
the City Engineer, or (ii) December 1, 2024.
2.6 Kwik Trip's obligations under this Agreement are conditioned upon Kwik Trip
acquiring the Real Estate by January 31, 2023 or at such other date as the parties agree.
In the event Kwik Trip does not acquire the Real Estate by January 31, 2023, then this
Agreement will be null and void.
SECTION 3. BINDING ON SUCCESSORS AND ASSIGNS. This Agreement shall be
binding upon the parties hereto and their successors and assigns.
SECTION 4. CITY COUNCIL APPROVAL REQUIRED. This Agreement is subject to
final approval by the City Council in its sole discretion.
SECTION & INDEMNIFICATION FROM THIRD PARTY CLAIMS. To the fullest extent
permitted by law, Kwik Trip shall defend, indemnify and hold harmless City, its officers
and employees, from and against all claims, damages, losses and expenses claimed by
third parties, but not including any claims, damages, losses or expenses of the parties to
this Agreement, including but not limited to attorneys' fees, arising during the construction
of the Sidewalks in Section 1.2.
Kwik Trip shall provide insurance as described in the attached insurance schedule related
to claims arising during Kwik Trip's construction of of the Sidewalks as required by
Section 1.2 of this Agreement.
CITY OF DUBUQUE, IOWA
By:
Mich el C. Van Millige
City Manager
KWIK TRIP, INC.
By:` --
Name: � rnA5 c.tsc�-
Its: cL-
Date: 12/19/2022 Date: ! --) - ! �s a
3
EXHIBIT A
PLAT
E 1-
®� ca
im ce)
® so O
no'zanp LL
PLAT OF SURVEY
KERPER INDUSTRIAL PARK NO. 2 IN THE CITY OF DUBUQUE, IOWA
LEGEND
LINE
L-49.24 LOT 3 KERPER INDUSTRIAL PARK - LOT LINE
R-537•5w DOC. NO. 6607-99 EASEMENT/ LINE yy///
CNORV-NS3Z004'E ._ ( PLLAASSTTIICSCAP NO A2140B RED
_ _ 49.22' T a FWND 6/6' REBAR WRED
�� T N740406( PLASTIC CAP NO. 12031
1 67.7fi' ' SET 5 B• REBAR W/ RED PLASTIC
4e KERPER CT. (ROW VARIES) 20a (6205.3 CAP r%. 2140B
i Ne6'27'48'E
Ii59g I,�,
S64V6"J0i ® FOUND MAC NAIL
6 -
166.0M
[I9a.r,e'}
RW RIGHT OF WAY
L-130,34' 21.73L21.90•)
1 (O) RECORD INFORMATION
R LOT D KERPER
(16fi.T16')
L-2115'
R-462.50'
INDUSTRIAL PARK W1515.49i
R-537.50'
o-16BB'4g• O /
\
52.61'(52.e4)
A-M'15'
GN�WWf97V4 i6•$'
\
N65'37'S8'E Sl l'39591E
CHORD-N60'08'59'E
103.50' 65.41'L65.41 i
21.15'
(103.47) LOT 5 KERPER
(SSy S DOC -1.
HOiJSTRIAL PARK
8607-99
513.02
K
LOT 1
(513.}0'1
n GRAPHIC SCALE
a
2.57 ACRES
LOT 2
H
'
0 100 200
IL Q
3.45 ACRES
�' J
aim W.
1" = loo,
•
DRAWING MAY HAVE BEEN REDUCED
SZ
LOT 2 FDL SECOND ADDITION
DOC NO 9550-99
f �g•4G�5pY1
r o
I
S51'51'51•F
po
_ CENTERLINE DRAINAGE
Ir DITCH - SEE
44,02'.
_ a SURVEYOR'S NOTE
�•
NOTE SURVEYOR'S NOTE
`I
•�+� Ij\
THIS SURVEY IS SUBJECT TO EASEMENTS, RESOLUTION AUTHORIZING SALE OF REAL ESTATE ALLOWS
x
RESERVATIONS, RESTRICTIONS AND EASEMENT RIGHTS ACROSS PROPERTY FOR STORM WATER
RIGHTS -OF -WAY OF RECORD AND NOT OF STORAGE, UTILITIES, STORM SEWER AND SANITARY SEWER.
_
RECORD. INSTRUMENT NO. 3132-72. THE EXACT LOCATION AND 'MDTH
WERE NOT DESCRIBED.
e�
Yip 6\ P0�
DESCRIPTION: LOT 2 OF FDL SECOND ADDITION AND LOT 5 KERPER INDUSTRIAL PARK, ALL IN THE CITY OF DUBUQUE, IOWA
n ••,�
.�pF�'
,:j\ 4P'
>�
.1� 5F10'
xx t I ram+ aarerr 1HAr rlm I,rm arox.rle exxln�R leis fAnwneB
�jd] � � um nc p�eArm avncY rorr ru rnsuwm>rr la ar waw w. i
9fR.G1 POkEd1u ]IRfiTHld! xr4, +RAr i AM A Sul q[Crx9 Wn
9MYtTdk l��l ix[ tAIIeF K l¢ fNW.,
q STATIC I
6
* �� *
� }
11W
• US
PROPRIETORS: JOHN P. MIHALAKIS AND RICHARD L BILLMEYER
CRAIG L. roR ilw. P.a
�� = GEISER a r3�»�•
-
2140B �•� AR�r��Y� "'^
•Tp
SURVEYED FOR: TLC PROPERTIES, INC.
DATE OF SURVEY: JANUARY 26. 2016
g�
_LS r cBuo L I DATE •_.. p„n lur .o I-�-Is
•, ll
TOTAL AREA SURVEYED: 6.02 ACRES
p �p� do ,Apy yp. ,�Tp
' ••�'• "'ya ucExg xa 11WB MY uuNg RDIEWAI DATE Is 12/alI2xIB
I ANB IMI[ t-7a-t0 Ydt7 f x f
.as 9BFI5 I Q 2
'M�niillxu"' VAB6 d! 91EC15 LO4ExFD BY TKIS S11
A55
61
EXHIBIT B
FUELING STATION AND CONVENIENCE STORE CONCEPT
.......... ..
fA
KWIK
TRIP
KWIK
STAN
P.O. BOX 2Inc
101
1— ..K GVE
u1nom 1 51aM.1.7
- F r
AX 1. ...o
EXHIBIT C
ROUNDABOUT INTERSECTION IMPROVEMENTS CONCEPT
E%HINrt OPTION l]. 16 PM.-
EXHIBIT D
RIGHT OF WAY DEDICATION
10
OXIMATE
APPR
RIGHT OF WAY
DEDICATION
AREA
aX
11