Giese Mfg. Proj Minor ChangeMEMORANDUM
May 14, 2002
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Approval of Letter Concerning Minor Change in Giese Manufacturing
Company Project
City Council previously approved a development Agreement and sale of property to
Giese Manufacturing atthe Dubuque Industrial Center West. The Development
Agreement required the creation of 10 new jobs, retention of existing employees, and
the construction of a 30,000 square foot manufacturing facility, at an estimated cost of
$825,000. Giese Manufacturing has provided a letter explaining that the final plans of
the company is to construct at 28,500 square foot facility at a cost of $1,300,000. None
of the other conditions of the Development Agreement are impacted.
Economic Development Director Bill Baum is recommending approval by the City
Council that the revised plan is in substantial compliance with the Development
Agreement.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM~h
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Bill Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
May 10, 2002
TO: Michael Van Miiligen, City Manager
FROM: Bill Baum, Economic Development Director
SUBJECT: Approval of letter concerning minor change in Giese Manufacturing
Company project.
INTRODUCTION
This memorandum presents for your consideration, and City Council concurrence with a
letter to Charles Giese concerning a minor change in the Giese Manufacturing
Company expansion project at Dubuque Industrial Center West.
BACKGROUND
On March 4, 2002, the City Council, after public hearing approved a Development
Agreement and sale of property to Giese Manufacturing at the Dubuque Industrial
Center West. The Development Agreement required the creation of 10 new jobs,
retention of existing employees, and the construction of a 30,000 square foot
manufacturing facility, at an estimated cost of $825,000.
DISCUSSION
Attached to this memorandum is a letter provided by the company explaining that the
final plans of the company are to construct a 28,500 square foot facility at a cost of
$1,300,000. None of the other conditions of the Development Agreement are impacted.
RECOMMENDATION
I recommend that you review and send the attached letter to Mr. Giese indicating that
the revised plan is in substantial compliance with the Development Agreement. The City
Council should be informed of the change, and acknowledge or approve your letter to
Mr. Giese.
F:\USERS\WBaum\Giese Manufacturing Company~Vlemo to Mike concerning square footage.doc
City Manager's Off:ice
50 West 3.3th Street
Dubuque, Iowa 52001-4864
(319) 8894110
(319) 5894149 FA~X
Charles H. Giese, President
Giese Manufacturing Company
2125 Kerper BIvd
Dubuque, Iowa 52001-2239
May 10, 2002
Ref: Your May 6, 2002 letter
Dear Mr. Giese:
I have reviewed your letter in which you indicate a minor change in your plans for your
expansion at the Dubuque Industrial Center West. According to the Development
Agreement your company was to construct "an industrial manufacturing facility of not
less than 30,0000 square feet of floor space at a cost of not less than $825,000.'
According to your letter, the building cost will be $1,300,000. However, the size of the
building will be 28,500 square feet.
The City recognizes your revised plan as being in substantial compliance with the
Development Agreement, and does not constitute a default under the terms of the
Development Agreement. If you or your attorney need any other legal documents to
satisfy your requirements, please contact Barry Lindahl, Corporation Counsel for the
City of Dubuque at 583-4113.
Sincerely,
Michael C. Van Milligen
City Manager
Service People Iz~tegrity Responsibility Innovation Teamwork
MANUFACTURING CO.
May 6, 2002
Michael VanMilligan
City Manager
City Hall
50 West 13th Street
Dubuque IA 52001
Dear Michael:
Giese Manufacturing Co., Inc. has awarded the contract for construction of our new
manufacturing facility to Conlon Construction of Dubuque. Excavation work has already begun
and the project is estimated to be complete by approximately October 1, 2002.
Our original plans were to construct a 30,000 square foot facility at an estimated cost of
$825,000. Due to construction design and building requirements in the area, the building cost
will be $1,300,000 in addition to the land of $200,000 for a total project cost of $1,500,000.
The development agreement with the City of Dubuque requires the developer to construct "an
industrial manufacturing facility of not less than 30,000 square feet of floor space at a cost of not
less than $825,000". Our final plans, however, represent a building with 28,500 square feet of
floor space at a cost as mentioned above. We hope that this small variance does not put us in
default under the terms or our agreement. Please notify us in writing of the City's position on this
matter.
If you have any questions regarding the above, please feel free to contact me.
Sincerely,
Charles H. Giese
President
2125 Kerper Blvd., Dubuque, IA 52001-2239
(563) 588-2023 FAX (563) 556-8422