Holliday Third Addition_Stormwater Facilities AgreementTHE CTTY OF Dubuque
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Masterpiece on the Mississippi , .
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Holliday 3rd Addition -Stormwater Facilities Fee Agreement
DATE: January 15, 2008
City Engineer Gus Psihoyos is recommending approval of a request from QHQ, the
developer of Holliday 3`d Addition, for consent to the assignment of interest in the
Stormwater Facilities Agreement.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
V
Mich el C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, City Engineer
THE CITY OF Dubuque
~~
D'~ T~ ~ NI-America City
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Masterpiece on the Mississippi ,
2007
TO: Michael C. Van Milligen, City Mana
FROM: Gus Psihoyos, City Engineer
SUBJECT: Holliday 3rd Addition -Stormwater Facilities Fee Agreement
DATE: January 11, 2008
INTRODUCTION
The purpose of this memo is to seek City Council approval to consent to the assignment
of interest in the Stormwater Facilities Agreement (Agreement) that the City has with
QHQ, the developer of Holliday 3`d Addition.
BACKGROUND
Holliday 3rd 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, per City policy, stormwater detention was
required. The site is directly north of the Northwest Arterial Detention Basin and all
drainage from the site flows to the basin.
To meet detention basin requirements, QHQ asked City Engineering about the
possibility of utilizing the City's detention basin instead of constructing a new detention
basin of their own. The Northwest Arterial detention facility, located just south of
Holliday 3rd Addition, has been functional since the spring of 2002.
The basic premise of the Agreement is that the City will provide detention (a service)
and QHQ will reimburse the City for the cost of the service.
In June of 2004, the City Council approved the Stormwater Facilities Fee Agreement
with QHQ. Per the terms of the Agreement, the City received aone-time payment of
$62,250. In addition, the City receives an annual maintenance fee that escalates by
2.5% each year. The annual fee was $4,120.00, $4,223, $4,328.58, and $4,436.78 for
2005, 2006, 2007, and 2008 respectively.
DISCUSSION
QHQ informed the City that they wish to assign a portion of the annual maintenance fee.
In October of 2007 the City received two documents (attached) titled Assignment of
Storm Water Facilities Fee Agreement and Consent to Assignment by the City of
Dubuque as prepared by Attorney At Law Brian J. Kane. One assigns an interest to
LBH Arterial Development, LLC (LBH) and the second assigns an interest to
Commercial Holliday Development, LLC (COMHD). City staff believes that the signed
documents afford the City legal authority to charge LBH and COMHD for these
assigned portions of the Agreement.
As a result of the assignments, the responsibility to pay the annual maintenance fee will
be as follows:
QHQ LBH COMHD Total
1 /1 /2008 $1,474.07 $938.16 $ 2,024.55 $4,436.78
1/1/2009* $1,510.92 $961.61 $ 2,075.16 $4,547.69
*The fee increases by 2.5% each year.
RECOMMENDATION
I recommend that the City Council consents to the assignments to LBH Arterial
Development, LLC and Commercial Holliday Development, LLC.
BUDGET IMPACT
Per the terms of the Agreement, the City receives an annual maintenance fee that
escalates by 2.5% each year. The annual fee was $4,120.00, $4,223, $4,328.58, and
$4,436.78 for 2005, 2006, 2007, and 2008 respectively. It will be $4,547.69 in 2009 and
increase by 2.5% each year thereafter.
Consenting to the assignments has no budget impact as the amount of the annual
maintenance fee collected by the City will be the same as established in the Agreement
with QHQ. The only change is that the fee will be split between the three parties.
ACTION TO BE TAKEN
I respectfully request that the City Counci
Stormwater Facilities Fee Agreement
Commercial Holliday Development, LLC
attached assignments.
I consent to the assignment of interest in the
to LBH Arterial Development, LLC and
and authorize the City Manager to sign the
Prepared by Deron Muehring
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Ken TeKippe, Finance Director
Deron Muehring, Civil Engineer II
Attach.
Preaared Bv: Brian J. Kane, 2100 Asbury Road, Suite 2, Dubuque, IA 52001 (563) 582-7980
Return To: Brian J. Kane, 2100 Asbury Road, Suite 2, Dubuque, IA 52001 (563) 582-7980
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 Zoe`- day of Sa:pf~c...., ~icc , 2007.
WHEREAS, the City of Dubuque (City) and QHQ Properties (QHQ) entered into a City
of Dubuque Storm Water Facilities Fee Agreement (the Agreement), a copy of which is attached
hereto, recorded as Instrument No. 10046-04, records of the Dubuque County Recorder; and
WHEREAS, at the time of the Agreement, QHQ was the owner of the
following described property (QHQ Property):
Lot B of Holliday Addition and Lot 2 of 2 of the SE va of the NE va of Section
20, T89N, 5th P.M. all in the City of Dubuque, Dubuque Co., IA.
WHEREAS, QHQ has sold or leased part of the GCHQ Property and has
partially assigned its interests in the Agreement to others; and
WHEREAS, QHQ will sell parcels in the QHQ Property to LBH Arterial
Development LLC, and
WHEREAS, the Agreement allows QHQ to assign its interests in the Agreement
subject to the prior written consent of City; and
WHEREAS, QHQ now desires to partially assign its interests in the Agreement
to LBH Arterial Development LLC, and
WHEREAS, City will consent to the partial assignment of such interests only upon
acceptance by QHQ and its assignees of the terms and conditions of the Agreement and
the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the terms, conditions, covenants
and performances contained herein, the parties hereto agree as follows:
SECTION 1. Subject to the consent of City, QHQ hereby partially assigns its interests in the
Agreement to the following assignee as follows:
Lot 5 of Holliday 3rd [4.601 acres] to LBH Arterial Development, LLC
SECTION 2. QHQ and LBH Arterial Development agree that their respective annual
detention basin and drainage channel maintenance fee for the maintenance of the Northwest
Arterial Detention Basin and Drainage Channel which are now due and payable and prorated at
closing as follows:
2007 Fee
QHQ:
Lot 2 - 4 of Holliday 3rd [0.713 acres]
$198.93 x 0.713 acres = $141.84
LBH Arterial Development, LLC:
Lot 5 of Holliday 3rd [4.601 acres] to LBH Arterial Development, LLC
$198.93 x 4.601 acres = $915.28
SECTION 3. Commencing January 1, 2008 and January 1 each year thereafter, QHQ
and LBH Arterial Development shall pay to City the annual detention basin and drainage
channel maintenance fee for the maintenance of the Northwest Arterial Detention Basin and
Drainage Channel. The annual fee due on January 1, 2008 shall be as follows:
QHQ:
Lot 2 - 4 of Holliday 3rd [0.713 acres]
$141.84 x 1.025 = $145.39
LBH Arterial Development, LLC:
Lot 5 of Holliday 3' [4.601 acres] to LBH Arterial Development, LLC
$915. 28 x 1.025 = $938.162
SECTION 4. The annual fee for 2009 and for each year thereafter shalt be calculated by
adding 2.5% to the fee for the previous year.
SECTION 5. The annual fees shall be paid by QHQ and by LBH Arterial Development
respectively to City by not later than January 31. 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 a property tax.
SECTION 6. LBH Arterial Development herby assumes all responsibilities required of
QHQ under the Agreement with respect to its respective properties described in Paragraph 1.
SECTION 7. LBH Arterial Development shall not assign any interest in the Agreement
without the prior written consent of City.
SECTION 8. The Agreement and this Assignment shall be binding on the parties and their
successors and assigns.
IN WITNESS THEREOF, the parties hereto have made and executed this Assignment.
QHQ PROPERTIES LBH ARTERIAL
DEVELOPMENT, L.L.C.
Printed Name
_ ~~~ P./L
Title
Title
STATE OF IOWA
COUNTY OF DUBUQUE
On this ~ J day of , 2007, before me, the undersigned,
a Notary Public in and for the State Iowa, personally appeared Tim Quagliano
of QHQ, to me personally known, who, being by me duly sworn, who
acknowledged the execution of the instrument to be his/her voluntary act and
deed
C~~~
Notary P I' i rat, ~ ~~~
^ ~s•on Number 186442
STATE OF IOWA
COUNTY OF DUBUQUE
~~ On this ~?ot~day of S e p~ernbw-, 2007, before me, the undersigned,
"1 Noma s kclz-/ a Notary Public in and for the State of Iowa, personally
appeared L/a ~.~ e ~ 8~ ` _ of LBH Arterial Development, L.L.C.,
to me personally known, who, eing by me duly sworn, who acknowledged the
execution of the instrument to be his/her voluntary act and deed for an on behalf
of LBH Arterial Development, L.L.C.
a~"" THOMAS KELIEI Nota Public in and for aid ate
~ ,~,k" Comrrnssi0n NwnDet 73075+1 rY
~..~ M•r CommsstOn Eepires
""" Se tember 26.
CONSENT TO ASSIGNMENT
The City of Dubuque hereby consents to the foregoing Assignment.
CITY OF DUBUQUE, IOWA
~~
Michael C. Van Milligen, City Manager
Preuared Bv: Brian J. Kane, 2100 Asbury Road, Suite 2, Dubuque, IA 52001 (563) 582-7980
Return To: Brian J. Kane, 2100 Asbury Road, Suite 2, Dubuque, IA 52001 (563) 582-7980
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 2 o day of S~~t~ ~, 2007.
WHEREAS, the City of Dubuque (City) and QHQ Properties (QHQ) entered into a City
of Dubuque Storm Water Facilities Fee Agreement (the Agreement), a copy of which is attached
hereto, recorded as Instrument No. 1004b-04, records of the Dubuque County Recorder; and
WHEREAS, at the time of the Agreement, QHQ was the owner of the
following described property (QHQ Property):
Lot B of Holliday Addition and Lot 2 of 2 of the SE iia of the NE va of Section
20, T89N, stn P.M. all in the City of Dubuque, Dubuque Co., IA.
WHEREAS, QHQ has sold or leased part of the QHQ Property and has
partially assigned its interests in the Agreement to others; and
WHEREAS, QHQ will sell parcels in the QHQ Property to Commercial
Holliday Development LLC, and
WHEREAS, the Agreement allows QHQ to assign its interests in the Agreement
subject to the prior written consent of City; and
WHEREAS, QHQ now desires to partially assign its interests in the Agreement
to Commercial Holliday Development LLC, and
WHEREAS, City will consent to the partial assignment of such interests only upon
acceptance by QHQ and its assignees of the terms and conditions of the Agreement and
the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the terms, conditions, covenants
and performances contained herein, the parties hereto agree as follows:
SECTION 1. Subject to the consent of City, QHQ hereby partially assigns its interests in the
Agreement to the following assignee as follows:
Lot 2 of Holliday 4th [2.212 acres] to Commercial Holliday Development, LLC
Lot 2 - 8 of Holliday 3rd [3.014 acres] to Commercial Holliday Development, LLC Lot.
6 of Holliday 3rd [1.867 acres] to Commercial Holliday Development, LLC
Lot 7 of Holliday 3rd [2.836 acres] to Commercial Holliday Development, LLC.
SECTION 2. QHQ and Commercial Holliday Development agree that their respective
annual detention basin and drainage channel maintenance fee for the maintenance. of the
Northwest Arterial Detention Basin and Drainage Channel which are now due and payable and
prorated at closing as follows:
2007 Fee
QHQ:
Lot 2 - 4 of Holliday 3rd [0.713 acres]
$198.93 x 0.713 acres = $141.84
Commercial Holliday Development, LLC:
Lot 2 of Holliday 4th [2.212 acres] to Commercial Holliday Development, LLC
Lot 2 - 8 of Holliday 3rd [3.014 acres) to Commercial Holliday Development, LLC
Lot 6 of Holliday 3rd [1.867 acres] to Commercial Holliday Development, LLC
Lot 7 of Holliday 3rd [2.836 acres] to Commercial Holliday Development, LLC.
$198.93 x 9.929 acres = $1,975.18
SECTION 3. Commencing January 1, 2008 and January 1 each year thereafter, QHQ
and Commercial Holliday Development shall pay to City the annual detention basin and
drainage channel maintenance fee for the maintenance of the Northwest Arterial Detention
Basin and Drainage Channel. The annual fee due on January 1, 2008 shall be as follows:
QHQ:
Lot 2 - 4 of Holliday 3rd (0.713 acres]
$141.84 x 1.025 = $145.39
Commercial Holliday Development, LLC:
Lot 2 of Holliday 4th [2.212 acres] to Commercial Holliday Development, LLC
Lot 2 - 8 of Holliday 3rd [3.014 acres] to Commercial Holliday Development, LLC
Lot 6 of Holliday 3rd [1.867 acres] to Commercial Holliday Development, LLC
Lot 7 of Holliday 3rd [2.836 acres] to Commercial Holliday Development, LLC.
$1,975.18 x 1.025 = $2,024.55
SECTION 4. The annual fee for 2009 and for each year thereafter shall be calculated by
adding 2.5% to the fee for the previous year.
SECTION 5. The annual fees shall be paid by QHQ and by Commercial Holliday
Development respectively to City by not later than January 31. 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 a property tax.
SECTION 6. Commercial Holliday Development herby assumes all responsibilities
required of QHQ under the Agreement with respect to its respective properties described in
Paragraph 1.
SECTION 7. Commercial Holliday Development shall not assign any interest in the
Agreement without the prior written consent of City.
SECTION 8. The Agreement and this Assignment shall be binding on the parties and their
successors and assigns.
IN WITNESS THEREOF, the parties hereto have made and executed this Assignment.
QHQ PROPERTIES
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Printed Name -T
COMMERCIAL HOLLIDAY
DEVEL PM NT, L.L.C.
B
Wa ~.' c
Printed Name
~ lw
Title
Title
STATE OF IOWA
COUNTY OF DUBUQUE
J'~
On this o~~ ~ day of _ ' , 2007, before me, the undersigned, a
Notary Public in and for the State of I wa, personally appeared Tim Quagliano of QHQ,
to me personally known, who, being by me duly sworn, who acknowledged the execution
of the instrument to be his/her voluntary act and deed
.~''
Notary~u i in and for said State
~F~''~ ~, MARS ,IO DRISGOLL
C;,_-~~ =;~on Numtser 18844,2
,o+, YrGcr:-.aeionEzplr6l y/~i X66'
...
STATE OF IOWA
COUNTY OF DUBUQUE
On this 2D'~`~lay of Sea-~-em do~2007, before me, the undersigned,
dl o~a~ ICc l~ or a Notary Public in and for the State of Iowa, personally appeared
~,Jn}~ ~ Q %~;~ ~ of Commercial Holliday Development, L.L.C., to me
personally known, Wh6, being by me duly sworn, who acknowledged the execution of the
instrument to be his/her voluntary act and deed for an on behalf of Commercial Holliday
Development, L.L.C.
,~,R~"~s THOMAS KELZEA Notary Public in and for said Stag
_ ,I~ z Commission Number 73W54
,~:+~ Mr Commission EMpires
~~ September 28, 2008
CONSENT TO ASSIGNMENT
The City of Dubuque hereby consents to the foregoing Assignment.
CITY OF DUBUQUE, IOWA
Y
Michael C. Van Milligen, City Manager