Medline Industries Development Agreemetn First AmendmentTO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: First Amendment to Medline Industries, Inc. Development Agreement
DATE: April 15, 2008
Economic Development Director Dave Heiar recommends City Council approval of the
First Amendment to the December 19, 2007 Development Agreement with Medline
Industries, Inc. to provide for a time extension on the project completion until April 30,
2009.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
G
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Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THE CTTY OF
DUB E
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
Dubuque
2007
April 15, 2008
SUBJECT: First Amendment to Medline Industries, Inc. Development Agreement
INTRODUCTION
Some of the provisions in the original development agreement with Medline Industries,
Inc. need to be modified to reflect the current schedule.
DISCUSSION
On December 19, 2007, the City Council approved a development agreement with
Medline Industries, Inc. for the construction of an office building in the DICW. The
development agreement provided for a substantial completion deadline of December
30, 2008. The initial planning stages and project design have taken somewhat longer
than initially anticipated due to soil boring results.
All other provisions of the December 19, 2007 Development Agreement would remain
the same.
RECOMMENDATION
I recommend that the City Council approve the attached resolution approving the 1St
amendment to the December 19, 2007 Development Agreement with Medline
Industries, Inc., to provide for a time extension on the project completion.
F:\USERS\DHeiarlMedline\1 st Amendment to Medline DA.doc
Prepared/Return to: David Heiar, Economic Development, 50 W. 13~h Street, Dubuque, IA 52001 (563) 589-4393
RESOLUTION NO 121-08
RESOLUTION APPROVING THE FIRST AMENDMENT TO THE MEDLINE
INDUSTRIES, INC. DEVELOPMENT AGREEMENT
Whereas, a Development Agreement (the Agreement), dated December 19,
2007, was entered into by and between the City of Dubuque, a municipal corporation of
the State of Iowa (City), and Medline Industries, Inc. an Illinois Corporation; and
Whereas, City and Medline Industries, Inc. now desire to amend the
Development Agreement as set forth attached First Amendment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the First Amendment of the Medline Industries, Inc.
Development Agreement is hereby approved.
Section 2. That the Mayor is hereby authorized and directed to execute said
First Amendment on behalf of the City of Dubuque and the City Clerk is authorized and
directed to attest to his signature.
Section 3. That the City Manager is authorized to take such actions as are
necessary to implement the terms of the First Amendment as herein approved.
Passed, approved and adopted this 21 st day of April, 2008.
Attest:
eanne F. Schneider, City Clerk
Roy D. Buol, Mayor
F:\USERS\DHeiar\Medline\Resolution approving first DA amendment.doc
FIRST AMENDMENT
TO
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF DUBUQUE
AND
MEDLINE INDUSTRIES, INC.
This First Amendment to Development Agreement, dated for reference
purposes the 12th day of April, 2008, is made and entered into by and between the
City of Dubuque, Iowa (City) and Medline Industries, Inc., an Illinois business
corporation with its principal place of business in Mundelein, Illinois (Developer).
Whereas City and Developer previously entered into a Development
Agreement dated the 19th of December 2007 (the Development Agreement); and
Whereas the Development Agreement provides in Section 2.3(1) that the
Minimum Improvements described in the Development Agreement shall be
substantially completed by December 31, 2008; and
Whereas City and Developer have agreed to amend the Development
Agreement to extend the date for substantial completion to April 30, 2009; and
Whereas the parties desire to amend the Development Agreement to set
forth such amendment in writing.
THEREFORE, in consideration of the mutual terms and covenants contained
herein, the parties agree as follows:
Section 2.3(1) of the Development Agreement is hereby amended to
read as follows:
2.3 Timing of Improvements.
(1) Developer hereby agrees that construction of the Minimum
Improvements on the Property shall be commenced within five (5)
months after the Closing Date, and shall be substantially completed
by April 30, 2009. For purposes of this section, "substantial
completion" shall mean completion of the site work and completion of
the core and shell of the building, but shall not include furniture
fixtures and equipment, and does not contemplate receipt of a
certificate of occupancy. The time frames for the performance of
these obligations shall be suspended due to unavoidable delays,
meaning delays, outside the control of the party claiming its
occurrence in good faith, which are the direct result of strikes, other
labor troubles, unusual shortages of materials or labor, unusually
severe or prolonged bad weather, acts of God, fire or other casualty to
the Minimum Improvements, litigation commenced by third parties
which, by injunction or other similar judicial action or by the exercise of
reasonable discretion directly results in delays, or acts of any federal,
state or local government which directly resul# in delays. The time for
performance of such obligations shall be extended only for the period
of such delay.
2. Except as modified herein, the Development Agreement shall remain
in full force and effect.
CITY OF DUBUQUE, IOWA
By:
Roy D. Buol, Mayor
MEDLINE INDUSTRIES, INC.
Jeanne F. Schneider, City Clerk
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