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Assignment of Stormwater Facilities Fee Agreement for the Northwest Arterial Detention BasinCity of Dubuque City Council CONSENT ITEMS # 5. Copyrighted May 5, 2025 ITEM TITLE: Assignment of Stormwater Facilities Fee Agreement for the Northwest Arterial Detention Basin for Lot 2 of Holliday Fourth Addition to Dubuque Hotel LLC SUMMARY: City Manager recommending City Council approval of an Assignment of the Stormwater Facilities Fee Agreement between the City and QHQ Properties to Dubuque Hotel LLC for Lot 2 of Holliday Fourth Addition. RESOLUTION Consenting To The Assignment Of The Stormwater Facilities Fee Agreement Between The City Of Dubuque And QHQ Properties For The Northwest Arterial Detention Basin To Dubuque Hotel LLC SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Staff Memo Stormwater Agreement _ 04092025 3. Resolution Fee Agreement_04092025 4. Assignment Page 106 of 326 Dubuque THE CITY OF uFA�a9a av DuBE 13 Masterpiece on the Mississippi zoo�•*o rP PP 2017202019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Assignment of Stormwater Facilities Fee Agreement for the Northwest Arterial Detention Basin for Lot 2 of Holliday Fourth Addition to Dubuque Hotel LLC DATE: April 30, 2025 Senior Counsel Barry Lindahl is recommending City Council approval of an Assignment of the Stormwater Facilities Fee Agreement between the City and QHQ Properties to Dubuque Hotel LLC for Lot 2 of Holliday Fourth Addition. In 2004, the Stormwater Facilities Fee Agreement was assigned to the purchaser of Lot 2 of Holliday Fourth Addition, AHIP IA Dubuque Properties, LLC. AHIP IA Dubuque Properties LLC is now selling Lot 2 of Holliday Fourth Addition to Dubuque Hotel LLC and has requested City consent to the assignment of the Fee Agreement to Dubuque Hotel LLC. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Barry Lindahl, Senior Counsel Gus Psihoyos, City Engineer Jenny Larson, Chief Financial Officer Page 107 of 326 Dubuque THE CITY OF UB E AII•AmericaCity rt vD itn<ni un u 13 Masterpiece on the Mississippi zoo��*o �`p pp zoi720zoi9 BARRY A. LINDAHL, S SENIOR COUNSEL MEMO To: Michael C. Van Milligen City Manager DATE: April 21, 2025 RE: Assignment of Stormwater Facilities Fee Agreement for the Northwest Arterial Detention Basin for Lot 2 of Holliday Fourth Addition to Dubuque hotel LLC The purpose of this memo is to recommend City Council consent to an assignment of the Stormwater Facilities Fee Agreement between the City and QHQ Properties to Dubuque Hotel LLC for Lot 2 of Holliday Fourth Addition. Holliday Fourth 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, stormwater detention was required. The site is directly north of the Northwest Arterial Detention Basin and all drainage from the site flows to that detention basin. The Northwest Arterial Detention Facility has been functional since 2002. To meet the detention basin requirements, the Developer, QHQ Properties (QHQ), was granted permission to use the Northwest Arterial Detention Facility instead of constructing a new detention basin of its own. In June of 2004, the City Council approved the Stormwater Facilities Fee Agreement (the Fee Agreement) with QHQ for use of the Northwest Arterial Detention Facility. The basic premise of the Fee Agreement is that the City will provide detention service and QHQ will reimburse the City for the cost of the service. Under the Agreement, the City received a one-time payment of $62,250 from QHQ. In addition, the City receives an annual maintenance fee that escalates by 2.5% each year. The Agreement allowed QHQ to assign its interest in the Fee Agreement with the City's consent with the sale of each parcel subject to the Fee Agreement. OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAX (563) 583-1040 / EMAIL balesq@cityofdubuque.org Page 108 of 326 The City Council has previously consented to several assignments of the Stormwater Facilities Fee Agreement to purchasers of parcels in Holiday Fourth Addition. In 2004 the Stormwater Facilities Fee Agreement was assigned to the purchaser of Lot 2 of Holiday Fourth Addition, AHIP IA Dubuque Properties LLC. AHIP IA Dubuque Properties LLC is now selling Lot 2 of Holiday Fourth Addition to Dubuque Hotel LLC and has requested City consent to the assignment of the Fee Agreement to Dubuque Hotel LLC. I recommend that the attached Assignment of Storm Water Facilities Fee Agreement be submitted to the City Council for consideration and consent. BAL:JLM Attachments cc: Crenna Brumwell, City Attorney Gus Psihoyos, City Engineer Jenny Larson, Chief Financial Officer OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAx (563) 583-10401 EMAIL tsteckle@cityofdubuque.org Page 109 of 326 Prepared by Barry A. Lindal Esq. 300 Main St., Ste. 330 Dubuque IA 52001-6944 (563) 583-4113 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131" St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 149 - 25 CONSENTING TO THE ASSIGNMENT OF THE STORMWATER FACILITIES FEE AGREEMENT BETWEEN THE CITY OF DUBUQUE AND QHQ PROPERTIES FOR THE NORTHWEST ARTERIAL DETENTION BASIN TO DUBUQUE HOTEL LLC WHEREAS, in 2004, the City Council approved the Stormwater Facilities Fee Agreement (the Fee Agreement) with QHQ LLC (QHQ) for property in the Holiday Fourth Addition for the Northwest Arterial Detention Basin pursuant to which the City receives an annual maintenance fee for the Northwest Arterial Detention Basin; and WHEREAS, the Agreement allows QHQ to assign its interest in the Fee Agreement with the City's consent with the sale of each parcel in Holiday Fourth Addition subject to the Fee Agreement; and WHEREAS, the Fee Agreement was previously assigned to the purchaser of Lot 2 of Holiday Fourth Addition, AHIP IA Dubuque Properties LLC; and WHEREAS, AHIP IA Dubuque Properties LLC is now selling Lot 2 of Holiday Fourth Addition to Dubuque Hotel LLC and has requested City consent to the Assignment of the Fee Agreement, attached hereto, to Dubuque Hotel LLC; and WHEREAS, the City Council finds that it is in the best interests of the City of Dubuque to consent to the Assignment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: Section 1. The Assignment of the Fee Agreement attached hereto is hereby approved. Section 2. The City Manager is authorized and directed to take such action as is necessary to carry out the terms of the Assignment. Passed, approved, and adopted this 5th of May, 2025. i �.•�avanagh,Mayor Attest: Adrienne N. Breitfelder, City Cler Doc ID: 011354890005 Type: GEN Kind: AGREEMENT Recorded: 05/09/2025 at 02:35:01 PM Fee Amt: $27.00 Paqe 1 of 5 Dubuque County Iowa Karol Kennedy Recorder File2025-00004701 PREPARED BY: Snell & Wilmer L.L.P. One East Washington Street, Suite 2700 Phoenix, AZ 85004 Attention: Ryan Konsdorf AFTER RECORDING RETURN TO: Snell & Wilmer L.L.P. One East Washington Street, Suite 2700 Phoenix, AZ 85004 Attention: Ryan Konsdorf 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 141 day of A p}� j��, , 2025. WHEREAS, AHIP IA Dubuque Properties LLC, a Delaware limited liability company ("AHIP") 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, AHIP has sold and/or will sell the Real Estate to Dubuque Hotel LLC, an Iowa limited liability company, or its respective assignee/nominee which takes fee title to the Real Estate ("Buyer"); and WHEREAS, AHIP desires to assign its interest in the Agreement to Buyer, as provided herein. 4921-3146-3706 0 DN City Clerk 2100 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"), AHIP hereby assigns its interest in the Agreement related to the Real Estate to Buyer effective as of the date the Real Estate is conveyed to Buyer. SECTION 2. Commencing January 1, 2026 and January 1 of each year thereafter, Buyer (with respect to the Real Estate) shall pay the annual detention basin and drainage channel maintenance fee for the maintenance of the Northwest Arterial Detention Basin and Drainage Channel, all in accordance with the Agreement. The parties acknowledge that the annual fee for 2026 is $702.96 and for 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 which totals 2.212 acres in area. 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 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. Buyer 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. [signatures on following pages] 2 4921-3146-3706 IN WITNESS WHEREOF, the parties executed the foregoing as of the date here first above written. AHIP: AHIP IA DUBUQUE PROPERTIES LLC, a Delaware limited liability company By: Name: Jo an Korol Title: Authorized Signatory ;fit � .N to�A STATE OF -'WF ) ) ss. County of q ) The foregoing instrument was acknowledged before me this o23 day of ANI t , 2025, by Jonathan Korol, Authorized Signatory of AHIP IA DUBUQUE PROPERTIES LLC, a Delaware limited liability company, for and on behalf of the company. Notary Public My Commission Expires: as SHED Ey R JACKSON Notary Public - Arfzom Commission N eogo 6 My Comm. Exp. July 28. n25 4921-3146-3706 BUYER: Dubuque Hotel LLC, an Iowa limited liability company By: `_— Name: iU NV,,k ti Its: 2 res IN STATE OF 1VT) ss. County of "4eillAe) The foregoing instrum nt was acknowledged before 2025, by Ct /IAj PA kC,_, the _ Dubuque iotel LLC, an Iowa limited liability conjpff y� and on b Public My Commission Expires: (� O me this 1 day of of of the company. CARMEN SOSTRE Notary Public State of Wisconsin 4 4921-3146-3706 CONSENT TO ASSIGNMENT The City of Dubuque hereby consents to the foregoing Assignment. THE CITY OF DUBUQUE, IOWA By: Printed Nam &C"A M, Cavan'\c�h Title: May Q f 4921-3146-3706