Lease Amendment and Expansion of City Space at 7900 Chavenelle Road with Dubuque Childcare Collaborative, LLCCity of Dubuque
City Council
CONSENT ITEMS # 19.
Copyrighted
March 16, 2026
ITEM TITLE: Lease Amendment and Expansion of City Space at 7900
Chavenelle Road with Dubuque Childcare Collaborative, LLC
SUMMARY: City Manager recommending that the City Council approve
an amendment to the lease agreement between the City of
Dubuque and Dubuque Childcare Collaborative LLC (DCC)
that would allow the City to lease additional space,
specifically Unit 6 and certain corridor areas, totaling 6,300
square feet.
SUGGUESTED Receive and File; Approve
DISPOSITION:
ATTACHMENTS:
1. MVM Memo Lease Amendment and Expansion of City Space at 7900 Chavenelle
Road with Dubuque Childcare Collaborative, LLC_ Memo_2026_03_11
2. Lease Amendment and Expansion of City Space at 7900 Chavenelle Road with
Dubuque Childcare Collaborative, LLC_ Staff Memo_2026_03_11
3. Amendment to City Lease- Consolidate Units 4 and 6 CLEAN
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THE CITY OF
DUB E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
AIFAnti Ciq
2007-2012.2013
2017*2019
SUBJECT: Lease Amendment and Expansion of City Space at 7900 Chavenelle
Road with Dubuque Childcare Collaborative, LLC
DATE: March 11, 2026
Chief Financial Officer Jennifer Larson recommends that the City Council approve an
amendment to the lease agreement between the City of Dubuque and Dubuque
Childcare Collaborative LLC (DCC). This amendment would allow the City to lease
additional space, specifically Unit 6 and certain corridor areas, totaling 6,300 square
feet.
For Fiscal Year 2026, the Finance Department's rent and maintenance costs for this
expanded space will be $21,703.50. This amount will be covered by the Engineering
Facilities Management budget for the Chavenelle location. Looking ahead to Fiscal Year
2027, both the Finance and Information Technology departments have already included
these rent and maintenance expenses in their budget requests.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
MCVM/jml
Attachment
cc: Crenna Brumwell, City Attorney
Jason Lehman, Assistant City Attorney
Cori Burbach, Assistant City Manager
Joe Pregler, Chief Information Officer
Tony Breitbach, Purchasing/Risk Manager
Page 458 of 811
THE CITY OF
DUB E
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Chief Financial Officer
Dubuque
All-Anerin City
z
2007.2012.2013
2017*2019
SUBJECT: Lease Amendment and Expansion of City Space at 7900 Chavenelle
Road with Dubuque Childcare Collaborative, LLC
DATE: March 11, 2026
INTRODUCTION
The purpose of this memo is to recommend approval of the lease amendment between
the City of Dubuque and Dubuque Childcare Collaborative LLC (DCC) for additional
new space originally identified as Unit 6 and certain corridor space, collectively
consisting of 6,300 square feet.
BACKGROUND
The City Council approved a five-year lease with Dubuque Childcare Collaborative LLC
(DCC) for Unit 4 at 7900 Chavenelle Road in January 2024, including an option to
purchase and set annual rent and maintenance costs. Unit 4 currently houses the
Information Technology Department, Traffic Department storage, and a shared Data
Center. In November 2025, the Council authorized moving some Finance Department
functions to Unit 6, amending the lease, and starting public bidding for renovations. The
remodel includes updates to carpeting, HVAC, electrical, office layouts, storage,
conference rooms, and security systems for both Finance and IT areas. Plans and costs
for the project were approved in February 2026, and in March 2026, Portzen
Construction, Inc. was awarded the $441,000 contract for the remodel, coming in 21.4%
below the estimated cost.
DISCUSSION
The amended lease with Dubuque Childcare Collaborative LLC (DCC) expands the
City's leased space at 7900 Chavenelle Road, effective January 1, 2026. Under this
amendment, the City's leased area increases from 7,225 square feet to a total of 13,525
square feet, now consolidated as Unit 4.
The lease term for the expanded space runs through December 31, 2030. For the
original portion —occupied by Information Technology, Traffic Department storage, and
the Data Center —monthly rent remains $6,020.83 ($10 per square foot annually)
through December 31, 2028. The additional space, which will be used by the Finance
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Department, will start incurring rent of $5,250.00 per month ($10 per square foot
annually) beginning April 1, 2026, with this portion of the lease ending December 31,
2030.
From January 1, 2026, through December 31, 2028, the City will pay a combined
monthly rent of $11,270.83. After December 31, 2028, only the Finance Department's
portion remains, and monthly rent will be $5,250.00 from January 1, 2029, through
December 31, 2030.
In addition to rent, the City is responsible for monthly maintenance, insurance, and tax
payments (MIT). Through March 31, 2026, MIT payments for the original space
continue as previously arranged. Starting April 1, 2026, MIT will also cover the
expanded space, calculated at $3.78 per square foot annually ($4,260.38 per month).
The City's share of MIT is 22.05% of the building's total square footage. The City will
also fund any required improvements to the leased areas.
Utilities and services may be separately metered when possible or otherwise allocated
among tenants by DCC using reasonable and transparent methods. The City retains the
right to review and discuss how utility costs are distributed.
Finally, DCC grants the City an option to purchase Unit 4 at the end of the lease term. If
the City chooses to buy Unit 4 when the lease expires on December 31, 2030, the
purchase price will be $1,000, payable at closing, which must occur within thirty days
after the lease ends. If the City exercises the purchase option before December 31,
2030, the price will be the total remaining rent due under the lease plus an additional
$1,000.
BUDGETIMPACT
Fiscal Year 2026: The Information Technology budget allocates $78,570 for annual rent
and maintenance, while Engineering Facilities Management provides $69,634 for
overall building expenses, totaling $148,204. To date, IT has paid $79,167.40 for rent
and maintenance and $14,196.15 for other building costs, leaving $33,186.83 in
remaining IT obligations for the year. An estimated budget balance of $23,049.79
remains in Engineering Facilities Management.
For the Finance Department, FY 2026 rent will be $15,750 (three months at
$5,250/month), and maintenance will be $5,953.50 (three months at $1,984.50/month),
totaling $21,703.50. This expense will be covered by the remaining Engineering
Facilities Management budget balance for Chavenelle.
Fiscal Year 2027: The total projected rent for both IT and Finance departments is
$135,250, with maintenance costs estimated at $51,124.50. These amounts are
included in the maintenance budget requests for both departments.
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All anticipated rent and maintenance costs for FY 2026 are covered by existing budgets,
with the Finance Department's new lease obligations funded by the remaining
Engineering Facilities Management budget. For FY 2027, projected costs for both
departments are incorporated into their budget requests, ensuring continued coverage
for the expanded leased space.
ACTION REQUESTED
I respectfully request that the City Council approve the proposed amendment to the
lease agreement between the City of Dubuque and Dubuque Childcare Collaborative,
LLC for Unit 4 at 7900 Chavenelle, including the updated terms for rent, maintenance,
insurance, tax payments, utilities allocation, and the purchase option as outlined above.
Attachment
cc: Crenna Brumwell, City Attorney
Jason Lehman, Assistant City Attorney
Cori Burbach, Assistant City Manager
Joe Pregler, Chief Information Officer
Tony Breitbach, Purchasing/Risk Manager
3
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AMENDMENT TO LEASE - BUSINESS PROPERTY
THIS AMENDMENT TO LEASE — BUSINESS PROPERTY (this "Amendment") is
entered into this 16'h day of March, 2026, by Dubuque Childcare Collaborative, LLC
("Landlord"), and the City of Dubuque, Iowa ("Tenant"), whose address for the purpose of this
lease is 50 West 13 St. Dubuque, Iowa.
RECITALS
A. Landlord and Tenant previously entered into a Lease -Business Property pursuant to
which Tenant leased from Landlord Unit 4 of Learning Campus Condominiums, which
Lease was signed on or about December 20, 2023 for a term to commence January 4,
2024 (the "Original Lease"). Unit 4 contained 7,225 square feet (the "Original Space");
B. Tenant now desires to lease additional space within Learning Campus Condominiums,
which new space was originally identified as Unit 6 and certain corridor space,
collectively consisting of 6,300 square feet (the "Additional Space");
C. Previous Units 4 and 6 have been combined into a new Unit 4 consisting of 13,525
square feet, or 22.05% of the total leasable space;
D. The parties desire to amend the Original Lease to add the Additional Space and to
provide for additional terms related to the Additional Space.
Therefore, the parties agree as follows:
1. AMENDMENTS TO LEASE. The Original Lease is hereby amended in the
following particulars:
A. Paragraph 1 the Original Lease is hereby stricken, and the following is placed in
lieu thereof:
1. PREMISES AND TERM. The Landlord, in consideration of the rents,
agreements and conditions herein contained leases to Tenant and Tenant leases from Landlord,
according to the terms and provisions of this lease, the following described "premises," situated
in Dubuque County, Iowa:
Effective January 1, 2026 (the "Expansion Effective Date"), the Premises under the Lease
are hereby expanded and shall thereafter consist of a single consolidated condominium unit
designated as Unit 4 pursuant to the Third Amendment to Learning Campus Condominiums
Declaration of Submission of Property to Horizontal Regime.
From and after the Expansion Effective Date, the Premises shall contain approximately
13,525 rentable square feet, consisting of:
(i) approximately 7,225 rentable square feet attributable to the Original Space leased
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under the Original Lease; and
(ii) approximately 6,300 rentable square feet attributable to the Additional Space.
The Original Space and the Additional Space shall hereby collectively be referred to as the
"Expansion Premises" or the "Premises." The Premises are depicted on Exhibit A attached
hereto, which replaces in its entirety the Exhibit A attached to the Original Lease.
The lease term is hereby extended through December 31, 2030. Except as expressly
modified herein with respect to rent attributable to the Original Space, the Original Lease shall
otherwise remain in full force and effect during the extended Lease Term.
B. Paragraph 2 of the Original Lease is hereby stricken, and in lieu thereof is placed
the following:
2. RENTAL. Tenant agrees to pay to Landlord as rental during the term
hereof, as follows: $6,020.83 per month ($10 per square foot annually) for the Original Space
rental, ending December 31, 2028, and $5,250.00 per month ($10 per square foot annually) for
the Additional Space, in advance, the first such rent payment becoming due April 1, 2026 and
the same amount, per month, in advance, on the first day of each month until December 31,
2030. Therefore, total monthly rent payments shall be as follows:
April 1, 2026, through December 31, 2028: $11,270.83; and
January 1, 2029, through December 31, 2030: $5,250.00.
In addition to the above monthly rental, Tenant shall also pay: Maintenance, insurance
and tax payments as provided in the MIT paragraph below.
Through March 31, 2026, Tenant shall pay MIT for the Original Space as has been paid
to the date of this Amendment. Beginning April 1, 2026, and concurrent with each monthly rent
payment thereafter, Tenant shall also pay a portion of the maintenance, insurance and taxes
(MIT) in connection with the Additional Space, such that Tenant is paying MIT for the
Expansion Premises. Tenant shall pay $3.78 per square foot per year ($4,260.38 per month)
concurrent with each monthly rental payment. On or before each December 1 during the term of
this Lease, Landlord shall provide an estimate to Tenant of the applicable MIT payment for the
following year. This MIT rate will be applicable in January of the following year. On or before
March 31 of each year of this lease, Landlord shall provide an itemized statement of the actual
MIT expenses incurred by Landlord during the previous calendar year. This itemized statement,
and a refund of any overpayment made by Tenant, shall be provided to Tenant on or before such
March 31 date. If Tenant has underpaid Tenant's MIT obligations for the year, Tenant shall make
payment of the difference between what Tenant paid and what Tenant owed for the previous
year, to Landlord within 30 days of receipt of the itemized statement from Landlord. This
process of Landlord estimating the MIT expenses and providing an annual itemization and
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reconciliation shall occur during each year of the term of this Lease. If the Lease terminates prior
to December 31 in any year, the reconciliation and Landlord refund, if any, shall occur within 30
days of the end of the term and Tenant shall pay any additional sums due Landlord within 30
days of receipt of the itemization. Tenant's share of MIT shall be determined by multiplying the
total cost of MIT by the percentage which is equal to the total square footage leased by Tenant
(13,525 square feet) divided by the rentable square footage of the building which contains the
premises (61,340 square feet). Therefore, Tenant's percentage of MIT shall be 22.05%. The
sums due under this paragraph shall be deemed rental in addition to the rental provided in the
first paragraph of this paragraph 2.
All sums shall be paid at the address of Landlord, as above designated, or at such other
place as the Landlord may, from time to time, designate in writing.
Delinquent payments shall draw interest at 12% per annum from the due date, until paid.
C. Paragraph 7 of the Original Lease is hereby stricken, and the following shall be
placed in lieu thereof:
7. UTILITIES AND SERVICES. Utilities and services serving the
Building and the Premises may be separately metered where feasible or allocated by Landlord
among tenants based upon reasonable, good -faith methodologies. Such methodologies may
include, without limitation, estimated usage, occupancy characteristics, equipment intensity,
historical consumption data, square footage, or other equitable factors. Utilities may be billed to
Tenant on a budgeted monthly estimate basis, with reconciliation based upon actual costs
incurred, consistent with the estimate and annual reconciliation process used for MIT under the
Lease.
Tenant shall have the right to reasonably review and discuss the utility allocation methodology
with Landlord. Landlord shall consider Tenant feedback in good faith and may adjust allocation
methodologies from time to time, provided such methodologies remain commercially reasonable
and administratively practical. Notwithstanding the foregoing, utilities attributable to the
Expansion Premises shall not be billed prior to April 1, 2026. Prior to such date, Tenant shall
remain responsible only for utilities attributable to the Originally Space.
D. Paragraph 8 of the Original Lease is hereby stricken, and the following shall be
placed in lieu thereof:
8. TERMINATION, SURRENDER OF PREMISES AT END OF
TERM - REMOVAL OF FIXTURES.
(a) TERMINATION. This Lease shall terminate upon expiration of the original
term; or if this Lease expressly provides for any option to renew, and if any such option is
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exercised by the Tenant, then this Lease will terminate at the expiration of the option term or
terms.
(b) OPTION TO PURCHASE. The Expansion Premises is contained within a
61,340 square foot building (the "Building") on land (the "Land") which collectively is known as
7900 Chavenelle Road, Dubuque, Iowa. Landlord hereby grants to Tenant an option to purchase
the Expansion Premises upon expiration of the lease term. In order to exercise this option,
Tenant shall, at any time during the term of the Lease, notify Landlord of Tenant's exercise of
the option. The purchase price to be paid by Tenant shall be the rent due for the term hereunder
plus $1,000.00 paid at closing. The closing on the sale and purchase shall occur within thirty (30)
days of the end of the lease term. No rent will accrue between the date of termination of the lease
term and closing, but Tenant shall be responsible for payment of all other costs and obligations
hereunder during the interim period. Landlord shall provide an abstract of title for the leased
premises reflecting merchantable title in Landlord pursuant to Iowa law and Iowa's Land Title
Standards. Title shall be conveyed to Tenant free and clear of all liens and encumbrances. Tenant
shall take title to the leased premises subject to the terms of the Learning Campus
Condominiums Declaration of Submission of Property to Horizontal Regime, recorded on
December 5, 2023, and any applicable amendments thereto.
For purposes of calculating the purchase price under the Lease, rent attributable to the
Expansion Premises shall be treated consistently with rent attributable to the originally leased
premises. Accordingly, if Tenant exercises the option to purchase prior to December 31, 2030,
the purchase price shall equal:
(i) all remaining rent due under the Lease through the expiration of the lease term,
including any remaining rent attributable to the Expansion Premises, plus
(ii) the additional $1,000 purchase payment required under the Lease.
Upon closing of the purchase pursuant to the Lease, Tenant shall acquire title to the
Premises as expanded, including the Expansion Premises. Upon closing of such purchase, the
Lease shall terminate and Tenant shall thereafter own the Premises subject to the condominium
declaration and related governing documents applicable to the Building.
(c) SURRENDER. Tenant agrees that upon the termination of this Lease it will
surrender and deliver the premises in good and clean condition, except the effects of ordinary
wear and tear and depreciation arising from lapse of time, or damage without fault or liability of
Tenant.
(d) HOLDING OVER. Continued possession by Tenant, beyond the expiration of its
tenancy, coupled with the receipt of the specified rental by the Landlord (and absent a written
agreement by both parties for an extension of this Lease, or for a new lease) shall constitute a
month -to -month extension of this lease.
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(e) REMOVAL OF FIXTURES. Tenant may, at the expiration of its tenancy, if
Tenant is not in default, remove any fixtures or equipment which Tenant has installed in the
premises, provided Tenant repairs any and all damages caused by removal.
E. The following new paragraph 31 is added to the Lease:
31. IMPROVEMENTS TO EXPANSION PREMISES. Any alterations or
improvements within the Expansion Premises shall be subject to Landlord approval and
governed by the alteration provisions of the Lease. Landlord's approval shall not be
unreasonably withheld. Except as expressly set forth herein, Landlord shall have no
obligation to perform improvements to the Expansion Premises.
2. EFFECT ON BALANCE OF LEASE. Except as modified herein, the Lease
shall continue to govern the rights and obligations of the parties with respect to the Expansion
Premises.
Dubuque Childcare Collaborative, LLC, Landlord
By:
Its
City of D buque, Iowa, Tenant
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By:
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61