Yacht Basin Lease Assn
MEMORANDUM
November 28, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Dubuque Yacht Basin Lease Amendments
The Dubuque Yacht Basin, owned by Don Shanley, has requested an extension of their
current leases, which expire in 2020 and 2024. The Dubuque Yacht Basin is requesting
that the two leases be extended so that they both expire in 2031. Also, the Yacht Basin
currently enjoys a discounted lease rate, and in 2020 and 2024, when the previous
leases would have expired, the new lease provides that they begin paying market rate
leases. Public Works Director Mike Koch recommends setting a Public Hearing for
December 17, 2001 on these lease amendments.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Michael A. Koch, Public Works Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
November 27, 2001
TO:
FROM:
SUBJECT:
Michael C. Van Milligen, City Manager
Michael A. Koch, Public Works Director
Dubuque Yacht Basin Lease Amendments
INTRODUCTION
The following is a response to a request from the Dubuque Yacht Basin, owned by
Mr. Don Shanley, and represented by attorney Arthur F. Gilloon, to extend the
termination dates of their existing leases with the City of Dubuque.
DISCUSSION
Currently the Dubuque Yacht Basin holds three leases with the City of Dubuque.
The first Lease Agreement is dated April 8, 1970, as amended by a First
Amendment dated November 3, 1970, a Second Amendment dated February 12,
1975, and a Third Amendment dated May 4, 2000. The second Lease Agreement
is dated February 5, 1974, and as amended by a First Amendment dated May 4,
2000. The third Lease Agreement is dated November 23, 1987, as amended by a
First Amendment dated December 21, 1987, a Second Amendment dated January
19, 1998, and a Third Amendment dated May 4, 2000.
The current leases are scheduled to expire in 2020 and 2024. The Dubuque Yacht
Basin is requesting that the leases be extended for a period of 30 years, with
termination date of March 31, 2031. In consideration of the 30-year extension,
the Yacht Basin is prepared to make several major physical improvements on the
leased property.
When the current leases expire in 2020 and 2024, a new lease rate would be set
by negotiation or appraisal in the Year 2020. However, the lease payment on the
2024 lease would not increase until its current expiration date. The new lease
rates would be based upon the then current fair market rates as agreed by the
parties or as determined by the following process:
If the parties cannot agree to a fair market rental rate at least ninety (90) days prior
to March 31, 2020, they shall jointly appoint an MIA real estate appraiser to
determine the fair market rent.
If the parties cannot agree on an appraisal, each party shall appoint its own MIA
real estate appraiser, and the two appointed parties shall select a third. The
average of the fair market rents, as determined by the three appraisers, shall
determine the annual rate for the period commencing in the years 2020 and 2024,
and ending on March 31, 2031.
RECOMMENDATION
I would recommend approval of the requested lease extensions through March 31,
2031, and recommend that a public hearing be held on December 17, 2001.
ACTION TO BE TAKEN
The attached resolutions authorizing the City Clerk to advertise for a public hearing
on the lease extensions should be approved.
MAK/vjd
Prepared by: Michael A. Koch, Public Works Director Address: 50 W. 13th Street, Dubuque, IA 52001-486~1
RESOLUTION NO. -01
RESOLUTION APPROVING FOURTH AMENDMENT TO LEASE AGREEMENT
BETWEEN DUBUQUE YACHT BASIN, INC. AND THE CITY OF DUBUQUE
WHEREAS, Dubuque Yacht Basin, Inc., entered into a Lease Agreement with
the City of Dubuque dated April 8, 1970, as amended by a First Amendment dated
November 3, 1970, a Second Amendment dated February 12, 1975, and a Third
Amendment dated May 4, 2000 (referred to collectively as the Lease Agreement);
AND WHEREAS, Dubuque Yacht Basin, Inc. and the City desire to extend the
term of the Lease Agreement from March 31, 2020, to March 31, 2031.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Fourth Amendment to Lease Agreement attached hereto is
hereby approved and the Mayor be authorized and directed to execute the Fourth
Amendment to Lease Agreement attached hereto.
Section 2. That the City Clerk is hereby authorized and directed to record a
certified copy of this resolution and Fourth Amendment to Lease Agreement in the
office of the Dubuque County Recorder.
Passed, approved and adopted this day of
2001.
Attest:
Terrance M. Duggan, Mayor
Jeanne F. Schneider, City Clerk
FOURTH AMENDMENT TO LEASE AGREEMENT
BETWEEN DUBUQUE YACHT BASIN, INC. ANI')
THE CITY OF DUBUQUE
This Fourth Amendment to Lease Agreement is made and executed this
__ day of , 2001, A.D., between DUBUQUE YACHT BASIN,
INC., a corporation organized and existing under the laws of the State of Iowa,
with its principal place of business in Dubuque, Iowa, (YACHT BASIN) and the
CITY OF DUBUQUE, IOWA, a municipal corporation organized and existing under
the laws of the State of Iowa, through its duly authorized City Council (CITY):
WHEREAS, YACHT BASIN and CITY have heretofore entered into a Lease
Agreement dated April 8, 1970, as amended by a First Amendment dated
November 3, 1970, a Second Amendment dated February 12, 1975, and a Third
Amendment dated May 4, 2000, referred to collectively as the Lease Agreement;
and
WHEREAS, CITY and YACHT BASIN now desire to further amend the Lease
Agreement to extend the termination date from March 31, 2020, to March 31,
2031.
NOW, THEREFORE, in consideration of One Dollar ($1.00) and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Lease Agreement is hereby amended as follows:
1. Article (1) of the Lease Agreement is deleted and the following
substituted in lieu thereof: The term of the lease IS HEREBY EXTENDED FROM
March 31, 2020, to March 31, 2031. For the period through March 31, 2020, the
annual rates shall be as provided for in the April 8, 1970 Lease Agreement. For the
period commencing April 1, 2020, and ending on March 31, 2031, the annual rent
for the leased premises shall be the fair market rental as agreed by the parties.
If the parties cannot agree to the fair market rental at least ninety (90) days
prior to March 31, 2020, they shall jointly appoint an MAI real estate appraiser to
determine the market rate. If the parties cannot agree on an appraiser, each shall
appoint its own MAI appraiser and the two appointed by the parties shall select a
third. The average of the fair market rent determined by the three appraisers shall
be the annual rent for the period commencing April 1, 2020 and ending on March
31, 2031, The appraisal reports shall be completed in accordance with the current
"Uniform Standards of Professional Appraisal Practice" as promulgated by the
Appraisal Standards Board of the Appraisal Foundation. The annual rent shall be
paid in four (4) equal installments by not later than the first day of April, August,
and December.
2. All other terms and conditions of the Lease Agreement shall remain in
full force and effect.
Attest by:
CITY OF DUBUQUE
Jeanne F. Schneider, City Clerk
DUBUQUEYACHT BASIN
Donald P. Shanley
President
Prepared by: Michael A. Koch, Public Works Director Address: 50 W. 13th Street, Dubuque, IA 52001-4864
RESOLUTION NO. -01
RESOLUTION APPROVING SECOND AMENDMENT TO LEASE AGREEMENT
BETWEEN DUBUQUE YACHT BASIN, INC. AND THE CITY OF DUBUQUE
WHEREAS, Dubuque Yacht Basin, Inc., entered into a Lease Agreement with
the City of Dubuque dated February 5, 1974, and as amended by a First
Amendment dated May 4, 2000 referred to collectively as the Lease Agreement;
AND WHEREAS, Dubuque Yacht Basin, Inc. and the City desire to extend the
term of the Lease Agreement from March 31, 2024, to March 31, 2031.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Second Amendment to Lease Agreement is hereby
approved and the Mayor is authorized and directed to execute the Second
Amendment to Lease Agreement attached hereto;
Section 2. The City Clerk is hereby authorized and directed to record a
certified copy of this resolution and the Second Amendment to Lease Agreement in
the offices of the Dubuque County Recorder.
Passed, approved and adopted this day of
2001.
Attest:
Terrance M. Duggan, Mayor
Jeanne F. Schneider, City Clerk
SECOND AMENDMENT TO LEASE AGREEMENT
BETWEEN DUBUQUE YACHT BASIN INC. AND
THE CITY OF DUBUQUE
This Second Amendment to Lease Agreement is made and executed this
__ day of , 2001, A.D., between DUBUQUE YACHT BASIN,
INC., a corporation organized and existing under the laws of the State of Iowa,
with its principal place of business in Dubuque, Iowa (YACHT BASIN) and the CITY
OF DUBUQUE, IOWA, a municipal corporation organized and existing under the
laws of the State of Iowa, through its duly authorized City Council (CITY).
WHEREAS, YACHT BASIN and CITY have heretofore entered into a one
Lease Agreement dated February 5,1974, as amended by a First Amendment dated
May 4, 2000, referred to collectively as the Lease Agreement; and
WHEREAS, CITY and YACHT BASIN now desire to further amend the Lease
Agreement by extending the termination date of March 31, 2024, to March 31,
2031.
NOW, THEREFORE, in consideration of One Dollar ($1.00) and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Lease Agreement is hereby amended as follows:
1. Article 5 of the Lease Agreement is deleted and the following
substituted in lieu thereof: The term of the lease is hereby extended from March
31, 2020, to March 31, 2031.
For the period through March 31, 2020, the annual rates shall be as provided
for in the February 5, 1974 Lease Agreement. For the period commencing April 1,
2020, and ending on March 31, 2031, the annual rent for the leased premises shall
be the fair market rental as agreed by the parties.
If the parties cannot agree to the fair market rental rate at least ninety (90)
days prior to March 31, 2020, they shall jointly appoint an MAI real estate
appraiser to determine the market rate. If the parties cannot agree on an appraiser,
each shall appoint its own MAI appraiser and the two appointed by the parties shall
select a third. The average of the fair market rent determined by the three
appraisers shall be the annual rent for the period commencing April 1, 2020 and
ending on March 31, 2031. The appraisal reports (including definitions used) shall
be completed in accordance with the current "Uniform Standards of Professional
Appraisal Practice" as promulgated by the Appraisal Standards Board of the
Appraisal Foundation, The annual rent shall be paid in four (4) equal installments by
not later than the first day of April, August, and December.
All other terms and conditions of the Lease Agreement shall remain in full
force and effect.
Attest by:
CITY OF DUBUQUE
Jeanne F. Schneider, City Clerk
DUBUQUE YACHT BASIN
Donald P. Shanley
President
Prepared by: Michael A. Koch, Public Works Director Address: 50 W. 13t~ Street, Dubuque, IA 52001-4864
RESOLUTION NO. -01
RESOLUTION APPROVING FOURTH AMENDMENT TO LEASE AGREEMENT
BETWEEN DUBUQUE YACHT BASIN, INC. AND THE CITY OF DUBUQUE
WHEREAS, Dubuque Yacht Basin, Inc., entered into a Lease Agreement with
the City of Dubuque dated November 23, 1987, as amended by a First Amendment
dated December 21, 1987, a Second Amendment dated January 19, 1988, and, a
Third Amendment dated May 4, 2000, referred to collectively as the Lease
Agreement; and
WHEREAS, Dubuque Yacht Basin, Inc. and the City desire to extend the term
of the Lease Agreement from February 5, 2024, to March 31, 2031.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The Fourth Amendment to Lease Agreement is hereby approved
and the Mayor is authorized and directed to execute the Fourth Amendment to
Lease Agreement attached hereto.
Section 2. The City Clerk is hereby authorized and directed to record a
certified copy of this resolution and the Fourth Amendment to Lease Agreement, in
the offices of the Dubuque County Recorder.
Passed, approved and adopted this day of
2001.
Attest:
Terrance M. Duggan, Mayor
Jeanne F. Schneider, City Clerk
FOURTH AMENDMENT TO LEASE AGREEMENT
BETWEEN DUBUQUE YACHT BASIN INC. AND
THE CITY OF DUBUQUE
This Fourth Amendment to Lease Agreement is made and executed this
__ day of , 2001, A.D., between DUBUQUE YACHT BASIN,
INC., a corporation organized and existing under the laws of the State of Iowa,
with its principal place of business in Dubuque, Iowa, hereinafter referred as
"YACHT BASIN", and the CITY OF DUBUQUE, IOWA, a municipal corporation
organized and existing under the laws of the State of Iowa, through its duly
authorized City Council, hereinafter referred to as "CITY";
WlTNESSTH: Whereas, YACHT BASIN and CITY have heretofore entered
into one certain lease agreement dated November 23, 1987, as amended by a First
Amendment dated December 21, 1987, a Second Amendment dated January 18,
1988, and a Third Amendment dated May 4, 2000, whereby CITY leased to
YACHT BASIN certain real estate described in the aforesaid Lease Agreement dated
November 23, 1987; and
WHEREAS, CITY and YACHT BASIN now desire to further amend the Lease
Agreement from a termination date of February 5, 2024, to March 31, 2031.
NOW, THEREFORE, in consideration of One Dollar ($1.00) and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the aforesaid Lease Agreement between YACHT BASIN and CITY
dated November 23, 1987, and as amended by a First Amendment dated
December 21, 1987, a Second Amendment dated January 19, 1988, and a Third
Amendment dated May 4, 2000; is hereby amended as follows:
1. Article 1 of the Lease Agreement is deleted and the following
substituted in lieu thereof: The term of the lease is hereby extended from February
5, 2024 to March 31, 2031. For the period through February 5, 2024, the annual
rates shall be as provided for in the November 23, 1987 Lease Agreement. For the
period commencing February 6, 2024, and ending on March 31, 2031, the annual
rent for the leased premises shall be at the then current fair market rates as agreed
by the parties or as determined by the following process.
If the parties cannot agree to the fair market rental rate at least ninety (90)
days prior to February 5, 2024, they shall jointly appoint an MAI real estate
appraiser to determine the market rate. If the parties cannot agree on an appraiser,
each shall appoint his own MAI appraiser and the two appointed by the parties
shall select a third. The average of the fair market rent determined by the three
appraisers shall be the annual rent for the period commencing February 6, 2024
and ending on March 31, 2031. This appraisal report (including definitions used)
shall be completed in accordance with the current "Uniform Standards of
Professional Appraisal Practice" as promulgated by the Appraisal Standards Board
of the Appraisal Foundation. The annual rent shall be paid in four (4) equal
installments by not later than the first day of April, and the first day of each quarter
thereafter.
All the terms and conditions of the lease agreement dated November 23,
1987, as amended, shallremain in full force and effect.
Attest by:
CITY OF DUBUQUE
Jeanne F. Schneider, City Clerk
DUBUQUE YACHT BASIN
Donald P. Shanley
President