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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