Lease Agree. 7th St Peavey Co.CITY OF DUBUQUE, IOWA
MEMORANDUM
July 11, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Lease Extension for Peavey Company
(Originally Dated November 29, 1971)
Public Works Director Mike Koch is recommending approval of a request from Peavey
Company for a lease extension through November 30, 2021, for the property they lease
from the City of Dubuque at 505 East Seventh Street.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Michael A. Koch, Public Works Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
July 9, 2001
TO: Michael C. Van Milligen, City Manager
FROM: Michael A. Koch, Public Works Director
SUBJECT: Lease Extension for Peavey Company
(Originally Dated November 29, 1971)
INTRODUCTION
The following information relates to the untimeliness of the Peavey Company's request
to extend its lease with the City of Dubuque at 505 East Seventh Street. Their current
five-year lease extension is due to expire on November 30, 2001. According to the
terms of the lease, the lessee must file a notice to exercise the option to renew the
lease for another five-year period six (6) months in advance of the termination of the
leased period.
A copy of the lease and the lease extension request of the Peavey Company are
attached. At this time, the City Council has three options that are available:
1. Notify lessee of the termination of the lease, as the lease is considered in default.
2. The City declares the untimeliness of the request (June 18, 2001 in lieu of May 29,
2001) and terminate the lease. The City would then re-negotiate a new lease for
the property.
3. Agree on the continuation of the lease under the same terms and conditions,
even though the request for the extension was untimely filed.
RECOMMENDATION
It is my recommendation, based upon prior actions of the City Council, that the City
approve the Peavey Company's request to extend the lease through November 30,
2021. No terms or conditions of the lease would be affected by this action.
ACTION TO BE TAKEN
The City Council is requested to concur in the recommendation and to approve the
request of the Peavey Company for the extension of their lease through November 30,
2021.
MAK/vjd
Peavey
Peavey Company
P.O. Box 1480
Dubuque, IA 52004
(319) 556-4245
City of Dubuque
Engineering Dept.
Attn: Mike Koch
50 Wes~ t3~ Salt
Dubuqae~ Iowa 52001
Dear Mr. Michael Koch;
[ am writing ~ letter as a written intention to exercise the exlerfiion of the lease on the propea~ on
East 7~ Slreet. The lease is of RIVER FRONT SUBDMSIOlq No. 1 and att included lots of said lease.
The address of 505 East 7~ S~reet. I am writing this to extend the lease another 5 years according to the
original lease dated November 29~ 1971. Please call if you have any questions regarding this matter.
Thank you again for all your cooperation.
Regards
Peavey Company - Dubuque, Iowa
a ConAgra Company
LEASE AGREEMENT
This LEASE AGREEMENT made and entered into this_~~
day of ~ , 1971, by and between CITY OF DUB~Q~-~,
IOWA, through its duly authorized BOARD OF DOCI~CO~IS~,
hereafter called "Lessor", and SWIFT AGRICULTURAL CR-EMICALS COR-
PORATION, a Delaware corporation, hereafter called "Lessee",
WITNESSETH:
(1) Lessor does hereby lease and let unto Lessee, and
Lessee does hereby lease from Lessor, the following described real
estate, to-wit:
Lot One (1) of RIVER FRONT SUBDIVISION NO. 1
in the City of Dubuque, Iowa, according to
plat of said subdivision recorded in Book of
Plats No. 14, pages 62, 63, and 113 and 114,
of Dubuque County Records; and Lot Two (2) of
Lot Sixteen (16), Lot Two (2) of Lot One (1)
of Lot Seventeen (17), Lot One (1) of Lot One (1)
of Lot Eighteen (18), and Lot One (1) of Lot
Nineteen (19), all in Block 1~, Dubuque Harbor
Improvement Co's. Addition, in the City of
Dubuque, Iowa, according to the recorded plats
thereof, containing 11.12 acres more or less.
(2) The term of ~_aid lease ~all be for five
commencing on.the'~ day of '~.,
ending on the .~d~--day of -)z~~ ,
shall be known and called the "Original Term".
(5) years,
197I, and
1976, which
Lessee is ~ereby granted the option of extending this
lease for nine (9) additional successive periods of five years
each, upon the same terms and conditions as the original term.
Lessee shall exercise said option respectively by giving Lessor
written notice of its intention to do so at least six (6) months
pri~r to the expiration of the original term and prior to the
expiration of any other term as to which Lessee shall have
exercised such option.
-~ (3) Lessee shall pay Lessor annually in advance as rental
for said premises the sum of Six Thousand Seven Hundred Ninety-
two ($6,792.00) Dollars, and in addition shall pay wharfage fees
as follows:
(a)
Wharfage fees as presently set forth in Dock
Board Ordinance No. 1-57 and as maybe increased
or decreased from time to time by Dock Board
Ordinance or Amendment in accordance with the
provisions of Section 384.3(7), Code of Iowa,
1971, during the original term of this lease
or any extension thereof. It is hereby agreed
that the wharfage fees presently in effect
under Dock Board Ordinance No. ~1-57, are:
(b)
Two and one-half (2-1/2) cents per ton of 2,000
pounds on all bulk flui~s transferred to or
from the leased, or su~.leased, premises by
water transportation,.r~i%, or motor vehicle.
-2-
(2)
Five (5) cents per ton of 2,000 pounds on
all bulk solids transferred to or from the
leased, or subleased, premises by water trans-
portation, rail, or motor vehicle.
(d) Fifteen (15) cents per ton of 2,000 pounds
on all packaged goods transfer{.ed to or from
the leased, or subleased, premzses by water
transportation, rail or motor vehicle.
It is further agreed that ? minimum of Seventeen Hundred!
i Eight ($1708.00) Dollars shall be pazd annually for wharfage ~ees
ilnrovided~in (bi above. The basic ground rental provided herezn-
i~boVe tgget~e~ with the sum of Seventeen Hundred Eight Dollars
($170~.00) shall be paid annually in advance on or b~f?re_the
i]anniversary date of each contract year during the orzgznal or
iextended terms of this lease.
(4) In the event Lessee pays the annual per acre charge and
the sum of Seventeen Hundred Eight Dollars ($1708.00) i~ advance
as required in Paragraph (3) above, Lessee shall be entztled to a
credit in the amount of Seventeen Hundred Eight Dollars ($1708.00)
against the wharfage fees provided for in s~b-paragraph (3-a) above
for the year of such payment, but such credzt shall not be cumu-
lative and any Credit not exhausted in any one year shall not be
carried over into any subsequent year°
(5) On or before the 10th day of January of each year of theI
term of this lease, or any renewal thereof, commencing with
January 10, 1973, Lessee shall submit to Lessor a statement showing
the quantities of flui'ds, bulk solids and packaged goods of every
character received on the leased, or subleased, premises during
the preceding year, together with the Lessee's remittance of
wharfage fees provided for in sub-paragraph (3-a) and Paragraph (4)
above. Upgn demand by Less?r, Lessee shall furnish to Lessor
copies of zts records relatzng to such items.
(6) Lessee shall have the right and privilege to use and
enjoy the docks, wharves, waterfronts and riparian rights in
general, but subject, nevertheless, to all reasonable rules and
regulations of the Dock Co,~;ssion and to the payment of reason-
able wharf and dockfees and charges, and subject further to the
mooring of vessels along the toe of the rip-rap as authorized by
the Dock Commission where and whenever it will not interfere with
the operations of Lessee.
(7) Any future expense for removal, repair and maintenance
of the rip-rap on the Mississippi River side of the demised
premises shall be borne by the Dock Commission, and said Dock
Commission shall maintain said rip-rap in a reasonable and
suitable condition of repair.
(8) Lessee, its assignees and sublessees, shall have the
right and privilege to construct, build and erect in and on the
leased premises, such buildings, structures, other facilities and
equipment, as are necessary or desirable for the condo~t of its
business, and shall have the further right to construct and main-
tain over and across relocated Commercial Street and adjoining
streets and alleys, such railroad tracks as may be deemed necessary
or desirable for the conduct of such business operations, i
-3-
(9) No goods, products or materials having a flash point
below 200 degrees F., or having a vapor pressure more than 40
pounds per square .inch (absolute), shall be received or stored on
the leased premises.
(10) Lessee agrees to procure and maintain in force during
the original term of the Lease, and during any extension thereof,
a policy Of liability, insurance, written with an insurance companyi
iauthorized'to write lzability insurance in the State of Iowa,
insuring against any liability arising out of the use, occupancy,
or condition of the leased premises, or appurtenances thereto,-
with limits of $200,000.00 and $50,000.00, and an exact copy of
such policy shall be filed with Lessor for its approval. The
City of Dubuque and its Board of Dock Commissioners shall be named
as additional insureds.
(11) Ail rents and charges due and payable hereunder shall
be delivered to Lessor at its office in Dubuque, Iowa, on or
before the due date specified herein.
(12) Lessor agrees to pa~ all general taxes that may be
levied against the leased premzses. Lessee~ however, agrees to
pay all special assessments that may be levzed or assessed
against the leased premises and agrees to pay all taxes levied or
assessed against the improvements placed upon the leased premises.
(13) Lessee agrees, for itself and its successors, assigns
and sublessees, to keep and maintain the leased premises and its
property located thereon in good condition and repair and to
conform with all Federal, State and Municipal regulations in
regard to its operations thereon.
(14) Upon the termination of this lease, Lessee shall removel
all improvements placed or erected in or on the leased premises,
and said real estate shall be restored to substantially the condi-
tion as it was prior to the erection of such improvements,
including the present improvements located thereon. In the event
Lessee fails or refuses to remove such improvements within one
year after thetermination oft his lease, then in such event
Lessee shall pay Lessor the sum of Two Thousand Dollars ($2000o00)I
per month as rent and damages, ahd not as a penalty, ~nd shall pay
the basic ground rent provided herein during the period up to the
date of final~removal of such tm~r~ovements.
(15) Lessee covenants and agrees to indemnify and save
harmless the Lessor from any and all claims whatsoever, actions
or causes of'action in law or equity, or ~oss by reason of.the
Lessee's use or misuse of the leased prem&ses, or use or mmsuse
of premises in which Lessee has been granted permission by Lessor
to make improvements or installations serving the leased premzses,i
including such portions of the Seventh Street Harbor in the City
of Dubuque, Iowa, as are occupied by Lessee's improvements.
-4-
(16) If Lessee shall make default in the payment of rentals
hereunder, or any part thereof, or shall make default in the
performance of any of the other covenants herein contained, and
such default shall continue for a period of thirty (30) days
after written notice thereof, mailed to Lessee at its address
stated in the preamble hereof, by United States certified mail,
stating in detail the nature of the default, then it shall be
lawful for Lessor, at its election, to declare the term of this
Lease ended and to re-enter upon the leased premises, with or
without process of law, and to expel and remove Lessee, or any
person or persons in or upon the same, using such force as may be
necessary under the circumstances; and if at any time, by reason
of such default of the Lessee and the continuance thereof for
such period of thirty (30) days after written notice has been
given, said term shall be so ended, Lessee hereby covenants and
agrees to surrender and deliver up the leased premises peaceably
to the Lessor.
(17) Lessee shall have the right and privilege, at its option
of subletting all or part of the demised premises or of assigning
this lease, provided the subl~ssee or assignee is a responsible
party. A responsible party shall be deemed to be a party (a) who
is financially 'able to pay the rental payments and to operate the
contemplated business, and (b) who has evidenced by its operating
history that it is nOt more likely than Lessee to violate the
applicable statutes of the Iowa Environmental Protection Agency or!
like federal agency, or to constitute a legal nuisance under the
common law of the State of Iowa. This lease shall not be assignedi
nor sublet by Lessee without prior written notice to Lessor.
Lessor may object to an assignment or sublease to a party who is
not responsible, as defined above. Written consent by the Lessor
to the aSsignment.or sublease shall be deemed to be a satisfaction
of the requirement of responsibility herein. Failure of the Lessor
to raiSe any objectiQns to a~proposed sublessee or assignee within
30 days after receipt Of Les~ee's notice shall be deemed to be
consent of Lessor ~'the proposed assignment or sublease.
(18) All notices given under this instrument shall be in
Writing, and shall!ibegiven by depositing the notice in the United
st&res certified mail', postage prepaid, enclosed in anenvelope
a~dr~ssed to the party to be notified, at such party's address as
ShOWn in this instrument, and the day upon which such notice is
so mailed Shall be treated as the date of service.
(19) Lessor reserves the right and easement, during the
original term hereof or any extension hereof, in, to and over the
leased premises as access for the purpose Of repairing and main-
taining the rip-rap, flOodwall and shoreline.
(20) It is mutually understood and agreed that upon termina-
tion of this lease for any cause whatsoever, any wharf facilities
existing at the commencement hereof, or thereafter, erected by
Lessee to serve the property herein leased, shall not be con-
Sidered Personal property, but same shall be considered part of
the real estate and shall not be removed by Lessee, its assignee
or sub-lessee. Floating wharves shall be considered personal
p~operty.
(21) This lease replaces a lease dated February 9, 1946,
between City of Dubuque, Iowa, as Lessor, and Virginia-Carolina
Chemical Corporation, Eessee, and amendments thereto, which shall
be deemed cancelled upon execution hereof.
-5-
the Pillsbury Company for the storage and transfer and
Ii (22) It is contemplated that the Lessee herein proposes to
sublease to
!shipping of grain, and in such event the following wharfage
~ a
ischedules for grain sh 11 apply:
Five cents (5¢) per ton for the first 28,000
tons of grain loaded out by barge, truck or
b railway. Four cents (4¢) per ton for the
second 28,000 tons, and three cents (3¢) per
ton for any additional tonnage of grain loaded
over 56,000 tons. Any wharfage fees in
connection with the shipment receipts and
transfer of grain totaling wharfage fees of
$5,000.00 per year, then the rate for any
tonnage over said amount shall be at two cents
(2¢) per ton.
IN WITNESS WHEREOF, the par~ies hereto have caused the
due executi~-~o-~Le-~greement mn duplicate as of the day
and year first above written.
CITY OF DUBUQUE, IOWA,
Lessor,
~_~FoseBh R. Voelker - Ch im n
BY
and
Vin ent J.. Kaiser
Fred Schreiber
Its Board of Dock Comm-~ssioners.
SWIFT AG~I~Ob'L~U~ O~ALS CORPORATe_
Its President?:~'
!tS