Purchase of Bricktown Parking Lot_Dubuque InitiativesTHE CTTY OF
DLTB E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Bricktown Parking Lot Purchase
DATE: June 11, 2008
Dubuque
AN-AmericaCilf~
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2007
Economic Development Director Dave Heiar is recommending approval of two
resolutions:
1) To approve a loan from Dubuque Initiatives in the amount of $400,000 to finance
the purchase of the Bricktown Parking Lot located on the southeast corner of
Locust and 3~d Streets; and
2) To approve a purchase agreement with Paul M. Fahey for the Bricktown Parking
Lot.
When Cooper Acquisitions renovated the Bricktown building at 299 Main Street in 2001,
a couple of the owners also entered into a contract with Paul Fahey to purchase the
parking lot on the southeast corner of Locust and 3~d Streets. Due to the recent change
in management, and the financial restructuring of the business, it has been determined
that Cooper Acquisitions cannot cash flow the business and the purchase of this
property.
The original purchase contract included a clause, allowing the City to purchase the
parking lot for $400,000 if the business defaulted on its monthly payments.
The parking lot would become part of the City's public parking system with parking
meters. Economic Development Director Dave Heiar is further recommending approval
to negotiate and execute an agreement with Cooper Development LLC for them to pay
the City $1,000 per month for ten years to retain the site as a public parking lot for that
time period. After that, the City has complete policy control over the property.
Revenues are available in the parking fund, along with the Cooper Development LLC
and parking meter revenue, to make the annual loan payments of $38,222.
I concur with the recommendation and respectfully request Mayor and City Council
approval of the two resolutions and the ability to negotiate and execute an agreement
with Cooper Development LLC.
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Micha C. Van Milligen
MCVM/Iw
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
THE CITY OF Dubuque
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DUB E ""~
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Masterpiece on the Mississippi
zoos
DATE: June 11, 2008
TO: Michael C. Van Milligen, City Manger
FROM: David J. Heiar, Economic Development Director
RE: Bricktown Parking Lot Purchase
INTRODUCTION
This memorandum presents for City Council consideration of two resolutions;
1) To approve a loan from Dubuque Initiatives in the amount of $400,000 to finance
the purchase of the Bricktown Parking Lot located on the southeast corner of
Locust and 3~d Streets; and
2) To approve a purchase agreement with Paul M. Fahey for the Bricktown Parking
Lot.
BACKGROUND
When Cooper Acquisitions renovated the Bricktown building at 299 Main Street in 2001,
a couple of the owners also entered into a contract with Paul Fahey to purchase the
parking lot on the southeast corner of Locust and 3~d Streets. Due to the recent change
in management, and the financial restructuring of the business, it has been determined
that Cooper Acquisitions can not cash flow the business and the purchase of this
property.
The original purchase contract included a clause, allowing the City to purchase the
parking lot for $400,000 if the business defaulted on its monthly payments.
DISCUSSION
Although this parking lot is important to the downtown area, Budget Director Jenny.
Larson has indicated that our parking fund does not have an extra $400,000 at this time.
However, there would be sufficient parking funds to pay for this parking lot on a contract
purchase. The current owner (Mr. Fahey) does not want to sell on contract. Dubuque
Initiatives has agreed to lend the City $400,000 at 5% interest to purchase this key
parking lot. The loan could be repaid over 15 years. The parking lot would become part
of the City's public parking system with parking meters.
Based on the letter received from the Iowa Department of Natural Resources on
December 20, 2007, this site is subject to environmental monitoring and is not eligible to
be reclassified at this time. The site is considered a low risk for ground water ingestions,
but a high risk for ground water vapor. In order to receive a letter of "No Further Action",
the owner needs to submit 4 consecutive quarterly monitoring reports that show no
increased contamination in the sample. In the last 8 quarterly reports, the first 7 had
decreasing or steady results, but the 8t" quarter showed an increase in contaminates.
Since this site is covered by the UST fund, the owner can seek reimbursement for these
monitoring costs. Another monitoring report was submitted to the IDNR on May 1, 2008
which indicates the contamination levels for the past quarter have been stable.
Staff has been working with Dubuque Initiatives, the environmental consultants, Paul
Fahey and Cooper Development LLC, to put together agreements to purchase and
finance the parking lot. The loan agreement with Dubuque Initiatives requires a public
hearing which is to be held on the June 16t" Council meeting.
Attached is a copy of the proposed "Offer to Buy Real Estate and Acceptance" and the
proposed "Loan Agreement". The Offer to Buy Real is subject to the following
conditions:
~. Approval of the City Council of the City of Dubuque, Iowa, by not later than
June 16, 2008 of a Loan Agreement between the City and Dubuque Initiatives
for the purchase of the Real Estate on terms acceptable to the City Council.
The assignment by Robert Humke and Pride Service, Inc. to Seller and
acceptance of such assignment by Underground Storage Tank Fund (the
Fund) of all rights and any co-payment responsibilities for remedial benefits
through the Iowa Comprehensive Petroleum Underground Storage Tank Fund,
together with approval by the City Council of an agreement by Seller and
Robert Humke and Pride Service, Inc. that City shall not be required to
reimburse Seller or Robert Humke or Pride Service, Inc, or their successors or
assigns, or any third party for any co-payments already made by any of them to
the Fund .
3. The termination of the Real Estate Contract between Seller and Cooper
Acquisitions, LLC, filed November 18, 2002, Instrument No. 22160-02 prior to
the date of closing.
a. The approval by the City Council by not later than July 7, 2008 of an agreement
between Buyer and Cooper Development LLC to retain the Real Estate as a
parking lot for ten years from the date of closing in consideration for payment
by Cooper Development LLC to City of $1,000.00 per month for such ten year
period.
The proposed Loan Agreement with Dubuque Initiatives is an unsecured $400,000 loan
at 5% interest to be repaid over 15 years. An amortization schedule is attached to the
agreement. The City anticipates using the revenue ($1,000 per month) from Cooper
Development, LLC and revenue from parking meters ($14,000 annually, minus the cost of
meters and maintenance) in the lot to offset the payments of $38,222 per year to
Dubuque Initiatives.
RECOMMENDATION
I recommend that the City Council approve the attached resolutions to finance the
purchase of the "Bricktown" parking lot located at the southeast corner of Locust and 3rd
Streets and enter into a Purchase Agreement with Paul M. Fahey.
ACTION STEP
The action step is for the City Council to adopt the two attached resolutions.
Cc: Tim Horsfield
Jenny Larson
F:\USERS\DHeiar\Bricktown Parking Lot\20080611 Bricktown Parking Purchase Memo.doc
RESOLUTION NO. 205-08
RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A LOAN
AGREEMENT BETWEEN THE CITY OF DUBUQUE AND DUBUQUE
INITIATIVES, IN THE PRINCIPAL AMOUNT OF $400,000
WHEREAS, it is deemed necessary and advisable that the City of
Dubuque, Iowa (the "City"), should provide for the authorization of a Loan
Agreement in the principal amount of $400,000 (the "Agreement"), between the
City, as Recipient, and Dubuque Initiatives, as Lender, as authorized by Sections
384.24A and 384.83, Code of Iowa, as amended, a copy of which is now before
this Council and incorporated herein by this reference, for the purpose of
acquiring the real property described therein from Paul M. Fahey; and
WHEREAS, the Agreement shall be payable from the Parking Fund of the
City; and
WHEREAS, before such an agreement may be authorized, it is necessary
to comply with the provisions of the Code of Iowa, as amended, and to publish a
notice of the proposal and of the time and place of the meeting at which the
Council proposes to take action for the authorization of the agreement and to
receive oral and/or written objections from any resident or property owner of the
City to such action; and
WHEREAS, by Resolution No. 186-06 adopted June 2, 2008, this Council
set a public hearing on the proposal to enter into the Agreement for its meeting of
June 16, 2008, 2008 at 6:30 P.M. in the Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa, and due and proper notice of said public hearing was
given, as provided by law, by publication in the Telegraph-Herald on June 6,
2008, which notice set forth the time and place for the hearing and the nature ,
and purpose thereof; and
WHEREAS, in accordance with said notice, all persons or organizations
desiring to be heard on said proposed action, both for and against, have been
given an opportunity to be heard with respect thereto and due consideration has
been given to all comments and views expressed to this Council in connection
therewith and said public hearing has been closed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF DUBUQUE, IOWA:
Section 1. Approval of Agreement. The form and content of the
Agreement, the provisions of which are incorporated herein by reference, are in
all respects authorized, approved and confirmed, and the Mayor and the City
Clerk are authorized, empowered and directed to execute, attest, seal and
deliver the Agreement for and on behalf of the City in substantially the form and
content now before this meeting, but with such changes, modifications, additions
or deletions therein as shall be approved by such officers upon the advice of the
City Attorney, and from and after the execution and delivery of the Agreement,
the Mayor and the City Clerk are authorized, empowered and directed to do all
such acts and things and to execute all such documents as may be necessary to
carry out and comply with the provisions of the Agreement as executed.
PASSED AND APPROVED this 16th day of June, 2008.
Roy D. Buol
Mayor
ATTEST:
Jeanne F. Schneider
City Clerk
F:\USERS\DHeiarl6ricktown Parking Lot\Reso approving DI Loan Agreement.doc
LOAN AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
DUBUQUE INITIATIVES
This Loan Agreement, dated for reference purposes the day
of 2008, by and between the City of Dubuque, Iowa (City) acting
through its City Council (the Council) and Dubuque Initiatives of Dubuque, Iowa
(Lender). The parties agree as follows:
Lender shall loan to City the sum of $400,000 (the Loan).
2. The Loan proceeds shall be used to pay the costs of the purchase of Lots
87, 88, and the North 20 feet 3 inches of Lot 86 in the City of Dubuque, Iowa, according to
the United States Commissioners' Map of the Town of Dubuque, Iowa (the Project).
3. City agrees to repay the Loan, with interest at 5% per annum, according to
the Loan Amortization Schedule attached hereto.
4. The Council has adopted a Resolution (the Resolution) authorizing and
approving the form of this Loan Agreement and establishing the terms thereof, and the
Resolution is incorporated herein by reference, and the parties agree to abide by the
terms and provisions of the Resolution. The Loan and the interest thereon shall be
payable solely and only out of the net earnings of the parking enterprise system of the
City and shall be a lien on the future net revenues thereof. The Loan shall not be a
general obligation of the City nor shall it be payable in any manner by taxation, and the
City shall in no manner be liable by reason of the failure of the net revenues to be
sufficient for the payment of the Loan,
5. City may borrow additional money, issue bonds or enter into other loan
agreements and issue additional bonds or notes which are at the time of their issuance
on a parity and equality of rank with the Loan with respect to the lien and claim of such
collection of net revenues, [provided that the total indebtedness of the City including this
Loan Agreement does not exceed the Constitutional or statutory limitations.
6. In connection with the Loan, Lender represents and agrees as follows:
a. Lender understands that no prospectus or official statement
containing material information with respect to City, the Loan or the Project is
being prepared or authorized by City and that, with the degree of due diligence
Lender deems necessary, Lender has made its own investigation and analysis
with respect to City, the Project and the Loan and the security therefore.
-1-
b. Lender is acquiring the Loan for its own account and not with a
view to resale or other distribution thereof and does not presently intend to divide
the Loan or to resell or otherwise dispose of all or any portion of the Loan.
c. Lender understands that the Loan (i) is not being registered under
the Securities Act of 1933, as amended, and is not being registered or otherwise
qualified for sale under the laws of the State of Iowa or the "blue sky" laws and
regulations of any other state, (ii) will carry no rating from any national rating
agency, and (iii) may not be readily marketable.
7. This Loan Agreement is executed pursuant to the provisions of Sections
384.24A and 384.25 of the City Code of Iowa, as amended, and shall be read and
construed as conforming to all provisions and requirements thereof.
IN WITNESS WHEREOF, we have hereunto affixed our signatures all as of the
date first above written.
CITY OF DUBUQUE, IOWA
By:
Roy D. Buol, Mayor
ATTEST:
Jeanne F. Schneider, City Clerk
(SEAL)
DUBUQUE INITIATIVES
By:
(Signature)
(Name)
(Title)
-2-
Loan Amortization Schedule
290 Locust Street (Bricktown Parking Lot)
Loan Amount
Annual Interest Rate
Term of Loan in Years
First Payment Date
Frequency of Payment
$ 400,000
5.00%
15
I Semi-Annually)
No. Due Date Pa yment Due Interest Principal Balance
$ 400,000.00
1 1 /1 /2009 $ 19,111.06 $ 10, 000.00 $ 9,111.06 $ 390, 888.94
2 7/1/2009 $ 19,111.06 $ 9,772.22 $ 9,338.84 $ 381,550.10
3 1 /1 /2010 $ 19,111.06 $ 9, 538.75 $ 9, 572.31 $ 371, 977.79
4 7/1 /2010 $ 19,111.06 $ 9,299.44 $ 9, 811.62 $ 362,166.17
5 1 /1 /2011 $ 19,111.06 $ 9, 054.15 $ 10,056.91 $ 352,109.26
6 7/1/2011 $ 19,111.06 $ 8,802.73 $ 10,308.33 $ 341,800.93
7 1/1/2012 $ 19,111.06 $ 8,545.02 $ 10,566.04 $ 331,234.89
8 7/1 /2012 $ 19,111.06 $ 8,280.87 $ 10,830.19 $ 320,404.70
9 1 /1 /2013 $ 19,111.06 $ 8, 010.12 $ 11,100.94 $ 309, 303.76
10 7/1/2013 $ 19,111.06 $ 7,732.59 $ 11,378.47 $ 297,925.29
11 1/1/2014 $ 19,111.06 $ 7,448.13 $ 11,662.93 $ 286,262.36
12 7/1 /2014 $ 19,111.06 $ 7,156.56 $ 11, 954.50 $ 274, 307.86
13 1/1/2015 $ 19,111.06 $ 6,857.70 $ 12,253.36 $ 262,054.50
14 7/1/2015 $ 19,111.06 $ 6,551.36 $ 12,559.70 $ 249,494.80
15 1/1/2016 $ 19,111.06 $ 6,237.37 $ 12,873.69 $ 236,621.11
16 7/1 /2016 $ 19,111.06 $ 5,915.53 $ 13,195.53 $ 223,425.58
17 1/1/2017 $ 19,111.06 $ 5,585.64 $ 13,525.42 $ 209,900.16
18 7/1/2017 $ 19,111.06 $ 5,247.50 $ 13,863.56 $ 196,036.60
19 1 /1 /2018 $ 19,111.06 $ 4, 900.92 $ 14, 210.14 $ 181, 826.46
20 7/1/2018 $ 19,111.06 $ 4,545.66 $ 14,565.40 $ 167,261.06
21 1 /1 /2019 $ 19,111.06 $ 4,181.53 $ 14, 929.53 $ 152, 331.53
22 7/1/2019 $ 19,111.06 $ 3,808.29 $ 15,302.77 $ 137,028.76
23 1 /1 /2020 $ 19,111.06 $ 3,425.72 $ 15,685.34 $ 121, 343.42
24 7/1/2020 $ 19,111.06 $ 3,033.59 $ 16,077.47 $ 105,265.95
25 1/1/2021 $ 19,111.06 $ 2,631.65 $ 16,479.41 $ 88,786.54
26 7/1/2021 $ 19,111.06 $ 2,219.66 $ 16,891.40 $ 71,895.14
27 1 /1 /2022 $ 19,111.06 $ 1, 797.38 $ 17, 313.68 $ 54, 581.46
28 7/1 /2022 $ 19,111.06 $ 1, 364.54 $ 17, 746.52 $ 36, 834.94
29 1/1/2023 $ 19,111.06 $ 920.87 $ 18,190.19 $ 18,644.75
30 7/1 /2023 $ 19,110.87 $ 466.12 $ 18,644.75 $ 0.00
-3-
RESOLUTION NO. 206-08
APPROVING AN AGREEMENT FOR THE PURCHASE OF REAL ESTATE IN THE
CITY OF DUBUQUE, IOWA -FROM PAUL M. FAHEY.
Whereas, Paul M. Fahey (Fahey) is the owner of Lots 87, 88, and the North 20
feet 3 inches of Lot 86 in the City of Dubuque, Iowa, according to the United States
Commissioners' Map of the Town of Dubuque, Iowa (the Property); and
Whereas, the City Council finds that it is in the best interests of the City of
Dubuque to purchase the Property; and
Whereas, the City Council has obtained the necessary financing to purchase the
Property.
Whereas, the Offer to Buy and Acceptance ,attached hereto and by this
reference made a part hereof, sets forth the terms and conditions of the purchase of
property from Fahey.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the Offer to Buy and Acceptance attached hereto, is hereby
approved.
Section 2. That the City Manager is hereby authorized and directed to execute, on
behalf of the City of Dubuque, Iowa, said Purchase Agreement.
Passed, approved and adopted this 16th day of June, 2008.
Roy D. Buol
Mayor
Attest:
Jeanne F. Schneider
City Clerk
F:\USERS\DHeiar\Bricktown Parking Lot\Resolution approving purchase w Fahey.doc
OFFER TO BUY REAL ESTATE AND ACCEPTANCE
TO: Paul M. Fahey (Seller)
SECTION 1. REAL ESTATE DESCRIPTION. The City of Dubuque, Iowa (Buyer)
offers to buy real estate in Dubuque County, Iowa, described as follows:
Lots 87, 88, and the North 20 feet 3 inches of Lot 86 in the City of Dubuque, Iowa,
according to the United States Commissioners' Map of the Town of Dubuque, Iowa
with any easements and appurtenant servient estates, but subject to the following: a. any
zoning and other ordinances; b. any covenants of record; c. any easements of record for
public utilities, roads and highways (the Real Estate).
SECTION 2. PRICE. The purchase price shall be $400,000.00 payable in cash at
closing. The closing shall be July 1, 2008.
SECTION 3. REAL ESTATE TAXES. Seller shall pay all real estate taxes payable for
the fiscal year in which the closing takes place and prorated to the date of possession and
any unpaid real estate taxes for prior years. Buyer shall pay all subsequent real estate
taxes.
SECTION 4. POSSESSION. If Buyer timely performs all obligations, possession of the
Real Estate shall be delivered to Buyer on July 1, 2008, with any adjustments of rent,
insurance, and interest to be made as of the date of transfer of possession.
SECTION 5. USE OF PURCHASE PRICE. At the time of settlement, funds of the
purchase price may be used to pay taxes and other liens and to acquire outstanding
interests, if any, of others.
SECTION 6. ABSTRACT AND TITLE. Seller, at Seller's expense, shall promptly
obtain an abstract of title to the Real Estate continued through the date of acceptance of
this offer, and deliver it to Buyer for examination. It shall show merchantable title in Seller
in conformity with this agreement, Iowa law and Title Standards of the Iowa State Bar
Association. The abstract shall become the property of the Buyer when the purchase
price is paid in full.
SECTION 7. DEED. Upon payment of the purchase price, Seller shall convey the Real
Estate to Buyer by Warranty Deed, free and clear of all liens, restrictions, and
encumbrances except as provided in 1 a. through 1 .c. Any general warranties of title
shall extend only to the time of acceptance of this offer, with special warranties as to acts
of Seller continuing up to time of delivery of the deed.
SECTION 8. TIME IS OF THE ESSENCE. Time is of the essence in this Contract.
SECTION 9. REMEDIES OF THE PARTIES.
9.1 If Buyer fails to timely perform this Contract, Seller may forfeit it as provided in the
Iowa Code, and all payments made shall be forfeited or, at Seller's option, upon thirty
days written notice of intention to accelerate the payment of the entire balance because of
such failure (during which thirty days such failure is not corrected) Seller may declare the
entire balance immediately due and payable. Thereafter this Contract may be foreclosed
in equity and the Court may appoint a receiver.
9.2 If Seller fails to timely perform this Contract, Buyer has the right to have all
payments made returned to it.
9.3 Buyer and Seller also are entitled to utilize any and all other remedies or actions at
law or in equity available to them and shall be entitled to obtain judgment for costs and
attorney fees as permitted by law.
SECTION 10. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This Contract
shall apply to and bind the successors in interest of the parties.
SECTION 11. TIME FOR ACCEPTANCE. If this offer is not accepted by Seller on or
before , 2008, it shall become void and all payments shall be repaid to the
Buyer.
SECTION 12. JOINDER BY SELLER'S SPOUSE. Seller's spouse, if not a titleholder
immediately preceding acceptance of this offer, executes this Contract only for the
purpose of relinquishing all rights of dower, homestead and distributive shares or in
compliance with Section 561.13 of the Iowa Code and agrees to execute the deed or real
estate Contract for this purpose.
SECTION 13. RIGHTS OF INSPECTION, TESTING AND REVIEW. Buyer, its counsel,
accountants, agents and other representatives, shall have full and continuing access to
the Real Estate and all parts thereof, upon reasonable notice to Seller. Buyer and its
agents and representatives shall also have the right to enter upon the Real Estate at
any time after the execution and delivery hereof for any purpose whatsoever, including
inspecting, surveying, engineering, test boring, performance of environmental tests and
such other work as Buyer shall consider appropriate, provided that Buyer shall hold
Seller harmless and fully indemnify Seller against any damage, claim, liability or cause
of action arising from or caused by the actions of Buyer, its agents, or representatives
upon the Real Estate (except for any damage, claim, liability or cause of action arising
from conditions existing prior to any such entry upon the Real Estate), and shall have
the further right to make such inquiries of governmental agencies and utility companies,
etc. and to make such feasibility studies and analyses as it considers appropriate.
(1) Environmental Condition. Seller warrants to the best of its knowledge
and belief that there are no wells, solid waste disposal sites, hazardous wastes
or substances, underground storage tanks or burial sites located on the Real
Estate, except as set out below. Seller further warrants that with the exception of
a former petroleum underground storage tank release(s), Seller has done nothing
to contaminate or allow the contamination of the Real Estate and has no
knowledge of any contamination other than that from the former petroleum
underground storage tank release(s). Seller warrants that the Real Estate is not
subject to any local, state, or federal judicial or administrative action,
investigation or order regarding its environmental condition or environmental
compliance, except as may arise from the former petroleum underground storage
tank release(s). Seller shall provide Buyer with a properly executed Groundwater
Hazard Statement showing no wells, solid waste disposal sites, hazardous
wastes, underground storage tanks and private burial sites on the Real Estate,
with the exception of a former petroleum underground storage tank release(s),
which shall be considered a warranty and representation by Seller to Buyer.
Buyer shall have the right to inspect the Real Estate prior to the closing and to
take whatever tests or perform such examination, as Buyer shall deem
appropriate, at its own risk and its sole cost and expense, to evaluate the
environmental condition of the Real Estate and allow Seller to make the
environmental determinations required herein. Prior notice of such activity by
Buyer shall be provided to Seller and written results of such activity shall be
shared with Seller. In the event any adverse environmental condition is
discovered or suspected on, at, under, or about the Real Estate, Buyer's
obligation hereunder shall be contingent upon the resolution of the environmental
condition by Seller in a manner satisfactory to Buyer, in its sole discretion. Seller
shall have no more than five (5) days to respond to Buyer with what steps Seller
is willing to take and in what time period to resolve Buyer's concerns regarding
the environmental condition of the Real Estate. If environmental matters cannot
be resolved to Buyer's satisfaction, Buyer shall have the option to cancel this
transaction and declare this Agreement null and void. Seller shall fully cooperate
with Buyer and/or Buyer's representative in the environmental assessment and
investigation.
(2) Release of Reports and Data. Within five (5) days of the date of this
Agreement, Seller shall provide to Buyer copies of any and all reports,
correspondence, sampling or monitoring results related to the environmental
condition of the Real Estate. Upon request, Buyer shall promptly provide Seller
with a copy of all environmental consulting or engineering reports, separate
laboratory analysis reports, and other material information and data received by
Buyer regarding the environmental condition of the Real Estate, or which are
otherwise received or generated pursuant to this Agreement.
SECTION 14. VIOLATIONS OF REGULATIONS. Seller warrants that there are no
notices, orders, suits, judgments or other proceedings relating to fire, building, zoning,
air pollution, health violations or other matters that have not been corrected. Seller has
notified Buyer in writing of any past notices, orders, suits, judgments or other
proceedings relating to fire, building, zoning, air pollution or health violations as they
relate to the Real Estate of which it has actual notice;
SECTION 15. ENCUMBRANCES. Seller warrants that the Real Estate will as of the
date of closing be free and clear of all liens, security interests, and encumbrances;
SECTION 16. UNDERGROUND STORAGE TANKS. Seller warrants and represents
that there are no underground storage tanks or piping on or in the Real Estate and that
all such tanks and piping have been removed according to applicable state regulations.
SECTION 17. TENANTS. The Property is free and clear of any occupants, and no party
has a lease to or other occupancy or contract right in the Property which shall in anyway
be binding upon the Property, except for the Contract referred to in Sec. 18.4;
SECTION 18. OTHER PROVISIONS
18.1 This Offer is subject to the approval of the City Council of the City of Dubuque,
Iowa, by not later than June 16, 2008.
18.2. This Offer is subject to approval of the City Council of the City of Dubuque, Iowa,
by not later than June 16, 2008 of a Loan Agreement between the City and
Dubuque Initiatives for the purchase of the Real Estate on terms acceptable to the
City Council.
18.3. This Offer is subject to the assignment by Robert Humke and Pride Service, Inc. to
Seller and acceptance of such assignment by Underground Storage Tank Fund
(the Fund) of all rights and any co-payment responsibilities for remedial benefits
through the Iowa Comprehensive Petroleum Underground Storage Tank Fund for
UST Site LUST No. 7LTJ87 Registration No. 8601272, together with approval by
the City Council of an agreement by Seller and Robert Humke and Pride Service,
Inc. that City shall not be required to reimburse Seller or Robert Humke or Pride
Service, Inc, or their successors or assigns, or any third party for any co-payments
already made by any of them to the Fund .
18.4. This Offer is subject to the termination of the Real Estate Contract between Seller
and Cooper Acquisitions, LLC, filed November 18, 2002, Instrument No. 22160-02
prior to the date of closing.
18.5. This Offer is subject to the approval by the City Council by not later than July 7,
2008 of an agreement between Buyer and Cooper Development, LLC to retain the
Real Estate as a parking lot for ten years from the date of closing in consideration
for payment by Cooper Development, LLC to City of $1000.00 per month for such
ten year period.
Dated:
CITY OF DUBUQUE, IOWA
By:
Michael C. Van Milligen, City Manager
THIS OFFER IS ACCEPTED
PALL M. AHEY
`_ .
o_.
T F HE
;.
Dated: ~ - % / - ~
F:IUSERS\DHeiar\Bricktown Parking Lot\20080610 Dubuque Offer.doc