Holliday 3rd Addition_Stormwater Facilities Fee AgreementTHE CITY OF
DUB E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Holliday 3rd Addition -Stormwater Facilities Fee Agreement
DATE: August 27, 2008
Dubuque
il~ i
2007
City Engineer Gus Psihoyos is recommending consent to the assignment of interest in
the Stormwater Facilities Agreement for Holliday 3~d Addition from Commercial Holliday
Development, LLC to both WBBW Holliday Development, LLC and Gomer Holliday
Development, LLC.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micha I C. Van Milligen
MCVM/ems
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, City Engineer
THE CITY OF (_ ; ... Dubuque
DuB E MEMORA D i
N UM ~ ~
Mnsterpiece on the Mississippi
?l?il"
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer /~~~
DATE: August 25, 2008
SUBJECT: Holliday 3rd Addition -Stormwater Facilities Fee Agreement
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) for Holliday 31d Addition
that the City has with Commercial Holliday Development, LLC.
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, the developer (QHQ) asked City Engineering
about the possibility of utilizing the City's detention basin instead of constructing a new
detention basin of its 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 cone-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, $4,223, $4,329, and $4,437 for 2005,
2006, 2007, and 2008 respectively. The agreement allowed QHQ to assign with the
City's consent interest in the agreement with the sale of property.
In January of 2008, the City Council consented to the assignment of interest in the
Stormwater Facilities Fee Agreement to Commercial Holliday Development, LLC.
'DISCUSSION
In July of 2008 the City received a document (attached) titled Assignment of Storm
Water Facilities Fee Agreement and Consent to Assignment by the City of Dubuque as
prepared by Attorney Brian J. Kane. It assigns interest from Commercial Holliday
Development, LLC to WBBW Holliday Development, LLC (WBBW Holliday) and Gomer
Holliday Development, LLC (Gomer Holliday). City staff believes that the signed
documents afford the City legal authority to charge WBBW Holliday and Gomer Holliday
for these assigned portions of the Agreement.
The table below shows the assignments for 2008 and what they will be in 2009 should
the City Council consent to the attached assignment.
QHQ LBH ComHD WBBL GHD
2008 $ 1,476.23 $ 937.49 $ 2,023.12 $ 0.00 $ 0.00
2009 $ 1,513.14 $ 960.93 $ 0.00 $ 1,611.71 $ 461.98
Note: The fee increases by 2.5% each year.
RECOMMENDATION
I recommend that the City Council consent to the assignments to WBBW Holliday
Development, LLC and Gomer 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, $4,223, $4,329, and $4,437
for 2005, 2006, 2007, and 2008 respectively. It will be $4,548 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 assigned parties.
ACTION TO BE TAKEN
I respectfully request that the City Council consent to the assignment of interest in the
Stormwater Facilities Fee Agreement to both WBBW Holliday Development, LLC and
Gomer Holliday Development, LLC and to authorize the City Manager to sign the
attached assignment.
Attach.
Prepared by Deron Muehring
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Ken TeKippe, Finance Director
Deron Muehring, Civil Engineer II
THE CITY OF
DUB E MEMORANDUM
Masterpiece on the 'ssissippi
BARRY LINDA
CITY ATTORN
To: Deron Muehring
Civil Engineer II
DATE: July 30, 2008
RE: Commercial Holliday Development, LLC
Enclosed is a letter from Attorney Brian Kane as well as the original Assignment of
Storm Water Facilities Fee Agreement and Consent to Assignment by the City of
Dubuque, which you agreed to take to the City Council for approval.
Thank you.
Enclosure
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
Brian J. Kane
Les V. Reddick~'
Brad J. Heying
Todd L. Stevenson'
Kevin T. Deeny~"F
Bradley B. Kane
Joseph P. Kane
All admitted in Iowa
*Also admitted in Illinois
'~'~Also admitted in Wisconsin
July 16, 2008
Barry A. Lindahl, Esq.
Corporation Counsel
300 Main St., Ste. 330
Harbor View Place
Dubuque, IA 52001
Re: Commercial Holliday Development, LLC
Dear Barry:
Phone: (563) 582-7980
Facsimile: (563) 582-5312
E-mail: bkane@kanenorbylaw.com
Enclosed please find an executed Assignment of Storm Water Facilities Fee Agreement with
respect to certain property on the Northwest Arterial. You may recall that QHQ originally entered
into a Storm Water Facilities Fee Agreement with the City of Dubuque and this agreement was
partially assigned to Commercial Holliday Development, LLC as part of its acquisition from QHQ.
Commercial Holliday Development, LLC has now sold its real estate to Gomer Holliday
Development, LLC and WBBW Holliday Development, LLC as described in the- attached
Assignment. The proposed Assignment is to trace the actual storm water fee responsibility to the
current owner of the real estate.
If you have any questions, please do not hesitate to contact us. If all is in order, please have
the Assignment executed by Mr. VanMilligen and return it to us for recording.
Thank you.
Best regards,
KANE, NORBY & REDDIQK, P.C.
By
KANE, NORBY & 1ZEDDICK, P.C.
ATTORNEYS
2100 ASBURY ROAD, SUITE 2
DUBUQUE, IA 52001-3069
Of Counsel:
Gary K. Norby
BJK:meh
Enclosure
cc: Mr. Wayne A. Briggs
Prepared 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 ~_ day of ~v , 2008.
WHEREAS, Commercial Holliday Development, LLC ("Commercial Holliday") is the
partial Successor in Interest in and to that certain City of Dubuque Storm Water Facilities Fee
Agreement (the "Agreement"), a copy of which was recorded as Instrument No. 10046-04,
records of the Dubuque County Recorder with respect to the real estate described as follows:
Lot 2 of Holliday Fourth Addition; Lot 2-8 of Holliday Third Addition; Lot 6 of
Holliday Third Addition and Lot 7 of Holliday Third Addition (the "Real
Estate")
WHEREAS, Commercial Holliday has sold Lot 2 of Holliday Fourth to Gomer
Holliday Development, LLC ("Gomer Holliday"); and
WHEREAS, Commercial Holliday has sold Lot 2-8 of Holliday Third
Addition, Lot 6 of Holliday Third Addition and Lot 7 of Holliday Third Addition to
WBBW Holliday Development, LLC ("WBBW Holliday"); and
WHEREAS, Commercial Holliday desires to assign its interest in the Agreement to
Gomer Holliday and WBBW Holliday, respectively, as provided herein.
NOW, THEREFORE, in consideration of the terms, conditions, covenants
and performances contained herein, the parties agree as follows:
SECTION 1. Subject to the consent of the City of Dubuque (the "City"), Commercial
Holliday hereby assigns its interest in the Agreement to the following assignees:
The responsibilities related to Lot 2 of Holliday Fourth Addition (the "Gomer Holliday Real
Estate") is hereby assigned to Gomer Holliday; and
The responsibilities related to Lot 2-8 of Holliday Third Addition, Lot 6 of Holliday Third
Addition and Lot 7 of Holliday Third Addition (together the "WBBW Holliday Real Estate")
is hereby assigned to WBBW Holliday.
SECTION 2. Commencing January 1, 2009 and January 1 of each year thereafter,
Gomer Holliday (with respect to the Gomer Holliday Real Estate) and WBBW Holliday
(with respect to the WBBW Holliday Real Estate) shall pay the annual detention basin
and drainage channel maintenance fee for the maintenance of the Northwest Arterial
Detention Basin and Drainage Channel, all in accordance with the Agreement. The
parties acknowledge that the annual fees for 2009 and each year thereafter shall be
calculated by adding 2.5% to the fee for the previous year fee for each respective parcel
of real estate.
SECTION 3. Annual fees shall be paid by the respective parties hereunder to the
City by not later than January 31 of each year. 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 the
property tax.
SECTION 4. Gomer Holliday hereby assumes all responsibilities required under
the Agreement with respect to the Gomer Holliday Real Estate. WBBW Holliday hereby
assumes all responsibilities required under the Agreement with respect to the WBBW
Holliday Real Estate.
SECTION 5. The Agreement and this Assignment shall be binding on the parties and their
successors, heirs and assigns.
IN WITNESS WHEREOF, the parties executed the foregoing as of the date here first above
written.
COMMERCIAL HOLLIDAY WBBW HOLLIDAY
DEVE OP ENT, LL
~~
By:
Wayne A. Briggs
Printed Name
DEVELOP ENT,LLC
By:
Wayne A, riggs
Printed Name
President
Title
GOMER H LLIDAY DEVELOPMENT, LLC
By:
Wayne A. Briggs
Printed Name
President
President
Title
Title
STATE OF IOWA
COUNTY OF DUBUQUE
On this ~ Q~day of~_, 2008, before me, the undersigned, a Notary
Public in and for the State of Iowa, personally appeared ~y+~e ~ , ~ r ~ ;g of
Commercial Holliday Development, LLC, 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 for and on behalf of Commercial Holliday Development, LLC.
~l~~µa~ BRAD J. H
.~~F C~AMISSION N0.703N~
# 'k MYCOMMISSlONEXPIRES
AM Jute 23, 2009
No blic in and for said tate.
STATE OF IOWA
COUNTY OF DUBUQUE
On this ~ ~D day of ~~ ~ , 2008, before me, the undersigned,
~ rc~ ~~ y ; r~ h a Notary Public nand for the State of Iowa, personally appeared
~~N vac A . _ ,r ~ ~,S of Gomer Holliday Development, LLC, 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 for and on behalf of Gomer Holliday Development,
LLC.
~At~l ~ BRAD J. HEYING
+#~# COMMISSION N0.703800
MYCOMMISSION EXPIRES
~* Jtme 23, 2009
r~
Nota ublic in and fo said to
STATE OF IOWA
COUNTY OF DUBUQUE
On this ~ ~ day of _ v ~ , 2008, before me, the undersigned,
the ~~ ; ~+ a Notary Public in and for the State of Iowa, personally appeared
l~ . ~ ; S of WBBW Holliday Development, LLC, to me
person lly known, who, being by me duly sworn, who acknowledged the execution of the
instrument to be his/her voluntary act and deed for and on behalf of WBBW Holliday
Development, LLC.
BRAD J. HEYING
~ ~~ COMMISSION N0.703800
*~„* MYCOMMISSIONEXPIRES
iow* June 23, 2009
!'~-~
Notary ublic in and for sai Sat
CONSENT TO ASSIGNMENT
The City of Dubuque hereby consents to the foregoing Assignment.
CITY OF DUBUQUE, IOWA
By:
Michael C. Van Milligen, City Manager