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Port of Dubuque Brewery Devel LLC First AmendmentTO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Port of Dubuque Brewery Development, LLC DATE: June 11, 2008 City Attorney Barry Lindahl is recommending the First Amendment to the Lease Agreement with Port of Dubuque Brewery Development, LLC. This will substitute the correct legal description and would provide some reserved parking spaces for a Brewery tenant, Kurtz Communications. I concur with the recommendation and respectfully request Mayor and City Council approval. ~~ ~ G ~ Michael C. Van illigen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager THE CITY OF DUB ~ E MEMORANDUM Masterpiece on the BARRY LINDA L CITY ATTORN Y To: Michel C. Van Milligen City Manager DATE: June 3, 2008 RE: Port of Dubuque Brewery Development, LLC Enclosed is the First Amendment to Lease Agreement between the City of Dubuque, Iowa and the Port of Dubuque Brewery Development, LLC. The amendment has two purposes: 1. To substitute the correct legal description for the leased premises now that the plat of Riverwalk 8th Addition has been recorded; 2. The Lessee has requested an amendment to the language in the lease relating to the parking lot to allow exclusive parking for employees of its Sublessee, Kurtz Communications, Inc. on weekdays from 8:00 a.m. through 7:00 p.m. during the term of the current sublease and extensions, which would be for a period of five years with three extensions of five years each. The amendment also allows the Lessee to erect signage in the parking lot which designates such parking spaces as being reserved for employees of Kurtz Communications, Inc. but only from Monday through Friday, 8:00 a.m. through 7:00 p.m. I recommend that the First Amendment be submitted to the City Council for consideration and approval. BAL:tIs Enclosure cc: Dave Heiar, Economic Development Director Tim Horsfield, Parking Systems Supervisor Brian Kane, Esq. F:\USERS\tsteckle\Lindahl\Port of Dubuque Brewery Development LLCUVIVM_1stAmendtoLeaseAgreement_060308.doc OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org FIRST AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND PORT OF DUBUQUE BREWERY DEVELOPMENT, LLC This First Amendment to Lease Agreement between the City of Dubuque, Iowa, and Port of Dubuque Brewery Development, LLC ("Amendment") is entered into this 16th day of April, 2008 by and between the CITY OF DUBUQUE, IOWA, a municipal corporation ("Lessor") and Port of Dubuque Brewery Development, LLC, an Iowa limited liability company ("Lessee"). RECITALS A. Lessor and Lessee entered into that certain Lease Agreement dated July 1, 2006 (the "Lease") with respect to premises located at the former Dubuque Star Brewery building at East 4th Street, Dubuque, Iowa 52001; B. The parties desire to amend the Lease in certain respects and desire to set forth such amendment in writing. THEREFORE, in consideration of the mutual terns and covenants contained herein, the parties agree as follows: Amendment to Para~raUh 1.1. The Lease is amended by deleting Paragraph 1.1 in its entirety and replacing it with the following: "1.1 Demise and Term. In consideration of the rents hereinafter reserved and the teens, covenants, conditions and agreements set forth in this Lease, Lessor hereby leases to Lessee Lot 2, Riverwalk Eighth Addition, and the building thereon, as shown on Exhibit A attached hereto and by this reference made a part of this Lease, together with any and all easements and appurtenances thereto .and subject to any easements, and restrictions of record (the "Demised Premises"), to have and to hold for a term of fifty (50) years commencing as of the date of this Lease and ending on the 30th day of June, 2056. See paragraph 25 regarding option to renew." 2. Amendment to Paragraph 1.3. The Lease is amended by deleting Paragraph 1.3 in its entirety and replacing it with the following: "1.3 Parkin. Lessee shall develop, construct and pay for a parking lot adjacent to the Dubuque Star Brewery building on Lot 1, Riverwalk Eighth Addition, as shown on Exhibit A (the "Parking Lot"). Lessee shall be responsible for snow removal and similar maintenance with respect to the Parking Lot and shall further be responsible for any other maintenance, repair or replacement to the surface of the Parking Lot. Notwithstanding language to the contrary in Section 2.1 of the Development Agreement between Port of Dubuque Brewery Development, LLC and the City of Dubuque, Lessee shall have non-exclusive use of the Parking Lot and the Development Agreement shall be deemed amended consistent with this First Amendment. Developer shall have the right to assign all or portions of such use to others, including Lessee's sublessees with respect to the Dubuque Star Brewery building: Lessee's obligations with respect to the Parking Lot and its non-exclusive rights with respect to the Parking Lot shall continue during the term of the Lease referred to in paragraph 1.1 or any renewals thereof. Except for the maintenance and replacement obligations set forth herein with respect to the Parking Lot, Lessee shall not be required to pay any additional sums related to the use of the Parking Lot beyond the rent provided in this Lease. While Lessee's use of the Parking Lot is on anon-exclusive basis, the parties recognize that in the event City or other parties hold events in the general Port of Dubuque area, it may be necessary for Lessee to have temporary exclusive rights with respect to use of the Parking Lot for the customers of Lessee's sublessees. Therefore, in the event the City or any other organization holds an event in the Port of Dubuque area that can reasonably be expected to adversely affect parking availability on the Parking Lot (such as, by way of example and not limitation, the occurrence of any event requiring a permit under the City of Dubuque Ordinances), Lessee may control access to the Parking Lot on the day of such event and upon not less than seven day's written notice to the City Manager to ensure that any persons using the Parking Lot are doing so with the intent of visiting the building upon the Demised Premises. Provided, however, Lessee's control of access to the Parking Lot shall be limited to no more than 50 days per year. Lessor grants Lessee the right to assign ten (10) parking spaces in the Parking Lot to employees of Kurtz Commmunications, Inc. on weekdays from 8 A.M. through 7 P.M. but only for the term of Lessee's current sublease with Kurtz Commmunications, laic. -and any extensions as provided in the sublease, which term is five (5) years with three (3) extensions of five (5) years each. Lessee inay erect signage in the Parking Lot which designates that such parking spaces are reserved for employees of Kurtz Communications, Inc., provided that such signage states that the parking spaces are reserved for employees of Kurtz Communications, Inc. only from Monday through Friday, 8 A.M. through 7 P.M. each such weekday." 3. Amendment to Exhibit A. Exhibit A is deleted in its entirety and the following substituted in lieu thereof "[insert plat of Riverwalk Eighth Addition when recorded]" 4. Effect on Balance of Lease. Except as amended or modified herein the Lease shall continue to govern the rights and obligations of the parties thereto. LESSOR: CITY OF DUBUQUE, IOWA By: iM Roy D. Buol, Mayor Attest Jeanne F. Schneider, City Clerk LESSEE: PORT OF DUBUQUE BREWERY DEVELOPMENT, LLC By: ~ __ Wayne A. Briggs, Managing Member G:\WPDOCS\Brad ICnne\Pon of DuMique Hrew ry Dev-Amaulmau No. 21o MoAison James sublease-10-25-07.xTA D~ Ifl~fl~IIIOI~I~I~I~I~flnfl~~I~IVlllflfl 111 Doo ID: 006003770018 7v e: GEH 1 Recorded: 05/75/2008 at 02:26:17 PN 1 Fee Mt: 367.00 Peve I of IS Dubuque Count Iova ~1 Kathy Flynn 'rXurlev Reoorder , F1Ie2008-00006837 'REPARED BY: IAWRENCE A. BOYER L.S. 9761 WHKS k CO.. 1701 ROUTE 35 NORTH, EAST DUBUQUE, IL 61025 (815)747-8833 e uc .. FINAL PLAT , • RIVERWALK EIGHTH ADDITION ~~ IN THE CITY OF DUBUQUE, DUBUQUE COUNTY, IOWA A ...~~ INDEX SHEET :eeeer A REPEAT OF LOT 1 OF. RIVERWAL-IC SEVENTH AOD[TION; LOT C,/ LOT 2•AND LOT 3 OF•RIVERWALK 5TH ADDITION; LOT W [N ~'' - ~j DUBUQUE HARBOR IMPROVEMENT COMPANY ADDITION; AND LOT ~ +~ OF RIVERWALK 2ND ADDITION, TOGETHER WITH A PORTION OF ~• ~ ~~ THE UNPLATTED LEVEE LAND. $ ~ :~. ~v PLATTERS: CI1Y OF DUBUQUE, IOWA m ~• "~, ~ 1D , ~ /~ ' \ ~ SCALE [N FEET f' 100' ~t e c ~ 8 W ~° \ NlP CI+l~ i l ~zo~ ~ ~ ~ ~ RUne o 5a loo zoo . 1 `4l ~'i~l p``~ \STq~ \r~ 6 0 `' :~ :~'; ~, ~~yly-~l~ti ~ \ p EGyFRY ~Rr \qc\~~ nwrcRo 00 ~ZNi ~ >• ~ O \ ,SOT r ~~ ~ ~ 0~ i ~ \~~. / // SOT Ty /~~d~ ~ •\ ~'' "~Y,\ / ~'Rqi, \/ 2 ro / ~~. ~ Syr /a ~ a~ ' ; / r, , _- r, , or. a °Rl .~ ~~ QUIT 4e,,,ea. ~ N / ~ ~ ~ :' ~ ~ ~ ~'1r /:1 r µ~~ -\~,. w ~r, / / ION II~Q•J "~' -~ /' 1; 1`; T~ gal AREA SURVEYED !~ ~~V~(V /~ LAT 2 , 60,611 SQUARE FEET ~~~~~ // LOT 3 ~ 148,552 SgVARE FEET ,{" , LOT A 32,165 SQUARE FEET !;%~ / ~~~ LOi C - 14,461 SQUARE FEET ~ ~ /gN~Ae TOTAL ARFA SURVEYED: 296,159 SQUARE FEET ~ ~ Ryw~ s.•'~ 4 ~~ ro~ LEGEND s~~ SURVEYED~BOUNDARY LINE ~~~ ~' FOVNO IRON T BM y/11H CAP 9761 ra ha~ //~ Qa~ ~ ' FOUND. IRON REBAR G "•'r;--~, < y y O~ FOUND NAiL [N CONCRETE ® •.•g w /// h CO PLACED IRON T BAR WLTH CAP 9767 O •" * - PLACED CUi X IN CONCRETE ® r'~~ /~ ~~~ DUBUQUE HARBOR IMPROVEMENT D.H.I.C. ADD. _ COMPANY ADDITION •yrl;` MEA(1'J95~ AIJ: ~A~ MSL RECpftD. MEASUREMENT ( ) B7SIS OF BEARING IS •THE DUBUQUE AREA GIS Survey Requested By: ~ . ,~.t``er~pr'~p~ and he reloled survey (work was pert ormedcby me or undaromy CITY OF DUBUQUE ...... ~. ~,.• ., .~. dlreet ersonel superrfslon and that I om a duly licensed Lond ~,•~ . F ~ r under t to s of the State of Iowa. W~~s .' ~J'IAWRENCE A.: & CO. ' ~ • BOYER -!may-~i~ ~1At~y/Bfl~. /D ZOD7 K ,c' ~r 9781 y Lowrenee A. Bov/r Date • .~ License Number 9761 i . 0lgIxFFAS rwwrut wm svavL7o8s '''~~ {z ••• , , .•••"* p` Dote of Survey : November 21, 2007 ,~''eq:r~A:"``,, Sheelts covered bl lh•sesleeDe;eThrou ht~420ot 4 `701 ROOIE JS hORill FAST WBUOUE 1L 67025 a16-74~ Y 9 PROJECT: 6116.6 SHEET 1 OF 4 pa~7.cd