Adams Company Development Agreement_InitiateMEMORANDUM
April 28, 2003
TO:The Honorable Mayor and City Council Members
FROM:Michael C. Van Milligen, City Manager
SUBJECT:Setting Hearing for Approval of Development Agreement with Adams
Company
Negotiations have been underway with the Adams Company to discuss their willingness
to sell their property in the Port of Dubuque to the City. The relocation of the Company
is necessary for the City's planned redevelopment of the Port of Dubuque.
The City has been awarded a $2,000,000 grant from the Economic Development
Administration (EDA) to assist in the acquisition and relocation of the Adams Company
property, and demolition of the existing buildings.
The agreement provides:
1. The City purchase the Adams Company property for $2,407,500, based upon the
appraised value.
2. The Company performs a Phase II Assessment of their property, and if
acceptable to the City, the City agrees to cap City costs for mitigation at
$500,000.
3. The City provides land in the Dubuque Industrial Center West to the Company
through an "acquisition grant" to the Company.
4. The City provides an Economic Development grant to the Company to assist in
the construction of a new manufacturing facility. This amount will be the
difference between the purchase price of the Company's existing building, and
the cost of the new facility, currently estimated to be $2,800,000.
5. The City provide relocation assistance to the Company, as required by the
Federal regulations governing the EDA grant, as well as down time of the
manufacturing facility.
6. The total payment to the Company for #1, #4 and #5 will not exceed $3,500,000.
Economic Development Director Bill Baum is recommending City Council approval of a
Development Agreement with the Adams Company for a total payment not to exceed
$3,500,000, and that a public hearing be set for May 19, 2003.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
April 25, 2003
TO:Michael Van Milligen, City Manager
FROM:Bill Baum, Economic Development Director
SUBJECT:Setting Hearing for Approval of Development Agreement with Adams
Company
BACKGROUND
This past year city staff, along with Rick Dickinson of the GDDC and Barry Lindahl, our
corporate counsel, have been meeting with officials from the Adams Company to
discuss their willingness to sell their property in the Port of Dubuque to the City of
Dubuque. The relocation of the Company is necessary for the City's planned
redevelopment of the Port of Dubuque.
The City has been awarded a $2,000,000 grant from the Economic Development
Administration (EDA) to assist in the acquisition and relocation of the Adams Company
property, and demolition of the existing buildings.
The Company has determined that Lots 4 and 5 in the Dubuque Industrial Center West,
2"d Addition, meet the needs of the Company's proposed new manufacturing facility.
DISCUSSION
The Adams Company's attorney, Allan Carew, and Barry Lindahl have been negotiating
the terms and conditions of a Development Agreement. The Agreement, which is
attached, proposes:
1. The City purchase the Adams Company property for $2,407,500, based upon the
appraised value.
2. The Company performs a Phase II Assessment of their property, and if
acceptable to the City, the City agrees to cap City costs for mitigation at
$500,000.
3. The City provides land in the Dubuque Industrial Center West to the Company
through an "acquisition grant" to the Company.
4. The City provides an Economic Development grant to the Company to assist in
the construction of a new manufacturing facility. This amount will be the
difference between the pumhase pdce of the Company's existing building, and
the cost of the new facility, currently estimated to be $2, 800,000.
5. The City provide relocation assistance to the Company, as required by the
federal regulations governing the EDA grant, as well as down time of the
manufacturing facility.
6. The total payment to the Company for #1, #4, and #5 will not exceed $3,500,000.
Following a public hearing, the City Council would enter into the Development
Agreement with the company.
RECOMMENDATION
I recommend that the City Council adopt the attached Resolution setting a date for
public hearing on the proposal to enter into a Development Agreement with the Adams
Company.
ACTION STEP
The action step for the City Council is to adopt the attached Resolution.
F:/USERS/WBaum/EDA APPLICATION FOR ADAMS COMPANY/Memo from Bill Baum to MVM on Adams Co Dev Agreement.doc
RESOLUTION NO. 142-03
FIXING THE DATE FOR A MEETING OF THE CITY COUNCIL OF THE CiTY OF
DUBUQUE, IOWA ON THE EXECUTION OF A DEVELOPMENT AGREEMENT
RELATING THERETO WITH THE ADAMS COMPANY, AND PROVIDING FOR THE
PUBLICATION OF NOTICE THEREOF.
Whereas, it is deemed necessary and advisable that the City of Dubuque, Iowa,
enter into a Development Agreement relating with the Adams Company for the purpose
of carrying out an Urban Renewal Project; and
Whereas, before said agreement may be approved, Chapter 403 of the Code of
Iowa requires that the City Clerk publish a notice of the proposal and of the time and
place of the meeting at which the City Council proposes to take action thereon and at
which meeting the City Council shall receive oral and/or written objections from any
resident or property owner of said City to such proposed action.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the City Council meet in the Auditorium of the Carnegie-Stout Public
Library in Dubuque, Iowa, at 6:30 p.m. on the 19th day of May 2003, for the purpose of
taking action on the execution of a Development Agreement with the Adams Company,
to carry out activities described in the Dubuque Industrial Center Economic
Development District Urban Renewal Plan, including the sale of property to the
Company and of the funding of economic developments grants to the Adams Company.
Section 2. That the Clerk is hereby directed to cause at least one publication to be
made of a notice of said meeting, in a newspaper, printed wholly in the English
language, published at least once weekly, and having general circulation in said City,
said publication to be not less than four days nor more than twenty days before the date
of said meeting on the issuance of said obligations.
Passed, approved and adopted this 5th day of May 2003.
Terrance M. Duggan
Mayor
Jeanne F. Schneider
v City Clerk
F:\USERS~WBaum',EDA APPLICATION FOP. ADAMS COMPANY~J~blic Hearing dev agrm~ res.doc
NOTICE OF A MEETING AND PUBLIC HEARING OF THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED EXECUTION
OF A DEVELOPMENT AGREEMENT RELATING THERETO WITH THE ADAMS
COMPANY.
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will
hold a public headng on the 19th day of May, 2003, at 6:30 p.m. in the Carnegie-Stout
Public Library Auditorium, 360 West 11th Street, Dubuque, Iowa, at which meeting the
City Council proposes to take action on the execution of a Development Agreement with
the Adams Company and the sale of Lots 4 and 5 in Dubuque Industrial Center West,
part of the Dubuque Industrial Center Economic Development District. The City is
proposing to acquire Adams Company property in the Port of Dubuque, provide
relocation assistance to the Company, and provide an acquisition grant and an
economic development grant to the Company.
At the meeting, the City Council will receive oral and written objections from any
resident or property owner of said City to the above action. After all objections have
been received and considered, the City Council may at this meeting or at any
adjournment thereof, take additional action on the proposal to enter into the
Development Agreement. By order of the City Council said headng and appeals
therefrom shall be held in accordance with and governed by the provisions of Chapter
403 of the Code of Iowa.
Dated this __ day of 2003.
Jeanne F. Schneider
City Clerk of Dubuque, Iowa
RESOLUTION NO.
AUTHORIZING THE EXECUTION OF A DEVELOPMENT AGREEMENT WITH THE ADAMS
COMPANY
Whereas, the City Council of the City of Dubuque, Iowa, after public headng, duly
adopted an Urban Renewal Plan (the Plan) for the Dubuque Industrial Center Economic
Development District; and
Whereas, the Plan provides that the City may undertake special financing activities,
including loans or grants to private developers, to meet the objectives of the Plan and to
encourage the development of the District; and
Whereas, the City Council has determined, in accordance with Section 15A. 1 of the Iowa
Code, that the Adams Company is qualified to receive such loan or grant assistance to assist
with the relocation and expansion of its facility in the District; and
Whereas, pursuant to published notice, the City Council has held a public hearing on a
proposed Development Agreement with the Company; and
Whereas, a Development Agreement, is attached hereto and by this reference made a
part hereof;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the form of Development Agreement by and between the City of Dubuque
and the Adams Company, attached hereto, is hereby approved.
Section 2. That the Mayor and City Clerk are hereby authorized and directed to execute, on
behalf of the City of Dubuque, Iowa, said Development Agreement.
Passed, approved and adopted this 19th day of May 2003.
Attest:
Terrance M. Duggan, Mayor
Jeanne F. Schneider, City Clerk
F:\USERS'~WBaum~EDA APPLICATION FOR ADAMS COMPANY~ev agrmnt res.doc
DEVELOPMENT AGREEMENT
BETVVEEN
THE CITY OF DUBUQUE, IOWA
AND
THE ADAMS COMPANY
This Development Agreement ('~[he Agreement") made and entered into as of the
.day of May, 2003, by and between The Adams Company, an Iowa corporation
("Developer") and the City of Dubuque, Iowa, an Iowa municipal corporation ("City")
RECITALS
WHEREAS, Developer is the owner of the following described real property:
Lot 1 Adams Company's 2nd Addition in the City of
Dubuque, Iowa (herein referred to as "Developer's
Property')
located on the Fourth Street Peninsula in the City of Dubuque, Iowa; and
WHEREAS, City is in the precess of acquiring by eminent domain or threat of
eminent domain parcels of preperty on the Fourth Street Peninsula in the City of
Dubuque, Iowa. There are substantial current developments in the Fourth Street
Peninsula area amounting to appreximately $200,000,000.00; and
WHEREAS, Developer has been notified that Developer's Property is essential
to City's continued development plans and City has threatened to take Developer's
Property by eminent domain proceedings as authorized by Iowa law if City is unable to
acquire Developer's Preperty threugh negotiations. The words "eminent domain may
sometimes be referred to herein as "condemnation"; and
WHEREAS, in furtherance of the objectives of the Iowa Urban Renewal Act, City
has undertaken an Urban Renewal project ("the Project") to advance the community's
ongoing economic development efforts; and
WHEREAS, the Project is located within the Dubuque Industrial Center
Economic Development District ("Project Area"); and
WHEREAS, as of the date of this Agreement there has been prepared and
appreved by City an Urban Renewal Plan for the Project Area consisting of the Urban
Renewal Plan for the Dubuque Industrial Center Economic Development District,
appreved by City Council of City on May 2, 1988, and as subsequently amended
through and including the date hereof, attached hereto as Exhibit A ("Urban Renewal
Plan"); and
WHEREAS, a copy of the Urban Renewal Plan, as constituted on the date of this
Agreement and in the form attached hereto, has been recorded among the land records
in the office of the Recorder of Dubuque County, Iowa; and
WHEREAS, Developer has requested that City sell to Developer approximately
10.48 acres, more or less, identified as Lots 4 and 5 of Dubuque Industrial Center West
2nd Addition in the City of Dubuque, Iowa ("the City Property) so that Developer may
develop City Property, located in the Project Area, for the construction, use and
occupancy of an industrial facility which the City has determined and represented to
Developer is in accordance with the uses specified in the Urban Renewal Plan and in
accordance with this Agreement; and
WHEREAS, City believes that the development of City Property pursuant to this
Agreement, and the fulfillment generally of this Agreement, are in the vital and best
interests of City and in accord with the public purposes and provisions of the applicable
federal, state and local laws and the requirements under which the Project has been
undertaken and is being assisted.
THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
1. Condemnation. City has the power under Iowa law to acquire property
by eminent domain. City has threatened to take Developer's Property pursuant to the
Iowa law of eminent domain if City is unable to negotiate a purchase of such property
with Developer. Developer has agreed to enter into this Agreement solely because of
the threat of condemnation by City.
2. Sale of Developer's Property Under A Threat of Condemnation.
Subject to all of the terms and conditions of this Agreement and under threat of
condemnation, Developer agrees to sell and City agrees to purchase the Developer's
Property, including the real estate and the improvements located thereon, exclusive,
however, of machinery, equipment and personal property for $2,407,500 (the
"Purchase Price"), Developer's appraised value ($12.00 per sq. foot) of Developer's
Property, based upon the March 12, 2002, appraisal of Kane Appraisal and Real
Estate. At closing, the Developer's Property will be free and clear of all liens and
encumbrances and Developer will deliver a Warranty Deed to City for the Developer's
, Property.
3. Environmental Matters.
2
a. City and Developer acknowledge that a Phase I Environmental Site
Assessment (ESA) was conducted for the Property by and a
report dated has been submitted by Developer to City. The Phase I
ESA indicates environmental concerns exist with regard to the Property.
b. Developer agrees to cause a Phase II ESA to be conducted for the Property
by a qualified environmental consultant at its sole expense. At a minimum the Phase II
ESA shall address all of the environmental concerns raised by the Phase I ESA report
by dated . Developer shall provide City the opportunity to
review and comment on the scope of work for the Phase II ESA prior to its initiation.
c. Developer shall determine in Developer's sole discretion whether to provide
City with a copy of the report of the Phase II ESA. If Developer does not provide a copy
of the report to City by ,2003, neither City nor Developer shall have
any further obligation under this agreement, and this Agreement shall terminate.
If Developer shall provide City with a copy of the Report, Developer
shall also authorize the qualified environmental consultant who conducted the Phase
ESA to respond to inquiries about same by representatives of City.
d. City shall be obligated to purchase the Property and otherwise perform under
this Agreement ONLY if one of the following occurs:
1. The Phase II ESA report, in a form acceptable to City, and in City's sole
judgment indicates that there are no environmental concerns regarding the
Property, or
2. If the Phase II ESA report, in a form acceptable to City, indicates that
further investigation, monitoring, corrective action, remediation, or other
environmental response (collectively "Environmental Response") may be
necessary and both City and Developer conclude, based upon estimates from
their respective consultants, that City can undertake and satisfactorily complete
such Environmental Response sufficient to obtain formal or informal no further
action status (or like classification) for the Property, as City in its sole discretion
determines necessary and appropriate, for no more than $500,000.00. In no
event shall City be obligated to perform under this Agreement should it
determine, in its sole discretion, that the Environmental Response may exceed
$500,000.00.
e. To the extent permitted by law, the Report shall be kept confidential by City
and shall not be reproduced, disclosed, distributed or communicated, directly or
indirectly, in whole or in part, to any other Person (as defined below), except that City
may disclose the Report or portions thereof to those persons or entities who, in its
judgment, are reasonably required to review the Report, including, but not limited to, its
respective (i) officers, attorneys and employees and (ii) representatives, agents,
consultants, advisors, lenders, professionals, insurers and other persons or entities who
have acknowledged an obligation of confidentiality in an agreement to be bound by the
terms and conditions of this paragraph and (iii) the Economic Development
Administration (the persons in clauses (i) and (ii) to whom such disclosure is
permissible being collectively called "Representatives"). In the event that a request is
made or any legal is commenced by any other person for disclosure of the Report or
any of its contents, City shall promptly give notice of such request or action to
Developer and Developer shall take such action as it deems appropriate to respond to
such request or action. City shall have no further obligation to respond to such request
or action.
f. City agrees that it will inform each of its respective Representatives who have,
or will have, access to any or all of the Report, of the existence and content of this
paragraph and will take all reasonable action necessary to cause such Representatives
to observe the confidentiality requirements of this paragraph.
g. Notwithstanding anything to the contrary in this paragraph, the term
"Confidential Information" shall not include any information which (i) at the time of
disclosure or thereafter is generally available to or known by the public (other than
through a disclosure directly or indirectly resulting from a violation hereunder), (ii) at the
time of disclosure was already known on a non-confidential basis or had been
independently developed by City as evidenced by its business records, or (iii) was
available to City on a non-confidential basis from a source (other than pursuant to this
paragraph) that is not and was not bound by a confidentiality agreement or otherwise
prohibited from transmitting the information to City on a non-confidential basis by a
contractual, legal or fiduciary obligation).
Upon closing, City will release Developer and agree to indemnify and hold
harmless Developer with respect to any environmental claim or claims, clean up or
remediation imposed or threatened by the State of Iowa, the federal governmental or
any other governmental agency or entity or any private person arising out of or related
to the Property. The aforesaid release, indemnity and hold harmless provisions shall
survive the closing of the transactions referred to herein.
4. Ground for Relocated Facility. City agrees to sell to Developer at fair
market value of $79,000 per acre the following described property:
Lots 4 and 5 of Dubuque Industrial Center West 2nd Addition in the
City of Dubuque, Iowa (hereafter referred to as the "City Property").
City will deliver to Developer at the closing a Special Warranty Deed to the City
Property in the form attached hereto.
4
City will provide utilities to Developer's relocated manufacturing facility including storm
sewer, sanitary sewer, water and electrical connections. The City Property will be (i)
free and clear of any environmental deficiencies which require state or federal
remediation (ii) meet current zoning requirements to accommodate Developer's
manufacturing facility and (iii) of satisfactory compaction to accommodate Developer's
manufacturing facility.
5. City Participation.
Acquisition Grant to Company. For and in consideration of Developer's
intention to maintain its current employment level of employees in
the City of Dubuque, City agrees to make an Acquisition Grant to Developer
for the City Property on the Closing Date, or such other date as the parties
shall mutually agree upon in writing, in the amount of Seventy-Eight
Thousand Dollars ($78,000.00) per acre. The parties agree that the
Acquisition Grant shall be payable in the form of a credit favodng Developer
at the time of Closing with the effect of directly offsetting the purchase price
obligation of Developer.
Economic Development Grant to Company. For and in consideration of
Developer's intention to maintain its current employment level of __
employees in the City of Dubuque, City agrees, subject to the conditions set
forth in this Section, to make an Economic Development Grant to Developer
on ,2003, or such other date as the parties shall mutually agree
upon in writing. The Economic Development Grant shall be the total amount
of Dollars ($. ) and shall be payable solely and only
from the proceeds of the sale of urban renewal tax increment revenue bonds
or notes by City as described in Section hereof, and not from any
other source. The current estimated cost of the relocated manufacturing
facility, exclusive of ground, is $2,800,000, however, additional studies must
be conducted by a professional engineering firm and firm bids received by the
general contractor in order to determine the final costs of the relocated
facility. The current estimate of the cost of services of a professional
engineer is approximately $50,000, which amount will be paid by City in a
timely manner upon receipt of an invoice from Developer.
Issuance of Notes. Developer acknowledges and agrees that City intends to
finance all of its costs associated with the Project (including the funding of the
Economic Development Grant) through the issuance of Urban Renewal Tax
Increment Revenue Bonds or Notes to be issued by City under the provisions
of Section 403.9 of the Iowa Code, the Urban Renewal Act and this Section
(such obligation being referred to as "Notes").
d. Limitations on Financial Undertakin.qs of City. Notwithstanding any other
provision of this Agreement, City shall have no obligation to Developer under
this Agreement to issue Notes or to fund the Economic Development Grant to
Developer if City is unable to complete the sale of the Notes in accordance
with the requirements of Section__.
Relocation Expense. In general, City will pay the expense of the relocation of
Developer's manufacturing facility to Dubuque Industrial Center West. The
"relocation expense" includes but is not limited to expenses of a qualified
moving company selected by Developer to move the machinery, equipment
and other personal property from the Property to the relocated manufacturing
facility, recording fees, abstract fees, , Developer's employee expenses
related to the relocation, down time of the manufacturing business during the
time of the relocation (approximately $25,000), and any other expenses
relating directly to the relocation of the manufacturing facility. Developer
shall, however, be responsible for the fees for its legal services in connection
with this Agreement.
The current estimated relocation expense is $500,000 to $700,000.
Developer will provide documentation to City to support the relocation
expense in a form reasonably satisfactory to City. The relocation expense
will be reimbursed to Developer within fifteen (15) days after submission of
documentation. If there is a dispute on any particular item, the undisputed
items will be reimbursed. Any disputed item(s) will be resolved by negotiation
or if the parties are unable to resolve any expense item(s) by negotiation then
same shall be resolved by binding arbitration in accordance with the rules of
the American Arbitration Association.
The relocation assistance shall be provided in accordance with applicable
state and federal laws and regulations as set forth in the Relocation
Assistance Policies and Procedures Manual (January 2002) of the Iowa
Department of Transportation. A copy of the Manual is attached to this
Agreement.
6. Total Payment by City to Developer for Purchase Price, Cost to
Construct New Manufacturing Facility and Relocation Expenses. City's total
obligation to Developer for the payments described in Par. 2 , 5(b) and 5(e) shall not
exceed $3,500,000.00.
7. Representation Of Developer. In consideration of the Acquisition Grant
and the Economic Development Grant provided by City to Developer, the Developer
represents its intention to maintain its currant employment level of
employees in Dubuque, Iowa.
6
8. Development Activities.
a. Required Minimum Improvements. Developer hereby agrees to construct on
the City Property an industrial facility that will consist of a building of not less than
50,000 square feet, including office and factory, which is the same number of square
feet currently utilized by Developer for its manufacturing facility at 100 E. 4th Street and
the relocated facility will be functionally similar to the existing facility at 100 E. 4th
Street.
b. Plans for Construction of Minimum Improvements. Plans and specifications
with respect to the development of City Property and the construction of Minimum
Improvements thereon ("Construction Plans") shall be in conformity with the Urban
Renewal Plan, this Agreement, and all applicable State and local laws and regulations,
including but not limited to the Declaration of Covenants, Conditions, Restrictions,
Reservations, Easements, Liens and Charges, recorded as Instrument No. 17454-99,
records of Dubuque County, Iowa. Developer shall submit to City, for approval by City,
plans, drawings, specifications, and related documents with respect to the Minimum
Improvements to be constructed by Developer on the City Property. All work with
respect to the Minimum Improvements shall be in substantial conformity with the
Construction Plans approved by City.
c. Timing of Improvements. Developer hereby agrees that construction of
Minimum improvements on the City Property shall be substantially completed by
eighteen months from the Closing Date. The time for the performance of this obligation
shall be suspended due to unavoidable delays meaning delays outside the control of
the party claiming its occurrence in good faith, which are the direct result of strikes,
other labor troubles, unusual shortages of materials or labor, unusually severe or
prolonged bad weather, acts of God, fire or other casualty to the Minimum
Improvements, litigation commenced by third parties which, by injunction or other
similar judicial action or by the exercise of reasonable discretion directly results in
delays, or acts of any federal, state or local government which directly result in
extraordinary delays. The time for performance of such obligation shall be extended
only for the period of such delay.
d. Certificate of Completion. Promptly following the request of Developer and
upon completion of Minimum Improvements, City shall furnish Developer with an
appropriate instrument so certifying. Such certification ("Certificate of Completion")
shall be in recordable form and shall be a conclusive determination of the satisfaction
and termination of the agreements and covenants in this Agreement and in the Deed
with respect to the obligations of Developer to construct Minimum Improvements. The
Certificate of Completion shall waive all dghts of revestment of title in City as provided
in Section , and the Certificate of Completion shall so state.
e. Insurance Requirements.
7
ADAMSCOMPANYPROPERTYDUBUQUEICEHARBOR100E4thSTREETDUBUQUEIOWA
SUMMARYAPPRAISALOFTHEMARKETVALUEOFTHEADAMSCOMPANYPROPERTYDUBUQUEICEHARBOR100E4tSTREETDUBUQUEIOWAASOFFEBRUARY222002DATEDMARCH122002PREPAREDFORMRALLENJCAREW200SECURITYBUILDING151W8tSTREETDUBUQUEIOWA52001PREPAREDBYTHOMASPKANEKANEAPPRAISALANDREALESTATEINC11020LAKEVIEWDRIVEDUBUQUEIOWA52003PH5635562068FAX5635578107
2March122002MrAllenCarewAttorney200SecuritrBuilding151West8StreetDubuqueIowa52001DearMrCarewAsrequestedIhavepersonallyinspectedtheAdamsCompanyPropertylocatedintheDubuqueIceHarborareaThepurposeoftheAppraisalistoestimatetheMarketValueoftheFeeSimpleInterestofthesubjectpropertyThefunctionoftheAppraisalisforinvestmentanalysispurposesinlieuofongoingnegotiationswiththeCityofDubuquewhichintendstoacquirethesubjectparcelfordevelopmentpurposesTheintendedusersofthereportareyouandyourdesignatedpropertyrepresentativesIcertifythattothebestofmyknowledgeandbelief1Thestatementsoffactcontainedinthisreportaretrueandcorrect2Thereportedanalysesopinionsandconclusionsarelimitedonlybythereportedassumptionsandlimitingconditionsandaremypersonalunbiasedprofessionalanalysesopinionsandconclusions3IhavenopresentorprospectiveinterestinthepropertythatisthesubjectofthisreportandIhavenopersonalinterestorbiaswithrespecttothepartiesinvolved4Mycompensationisnotcontingentuponthereportingofapredeterminedvalueordirectioninvaluethatfavorsthecauseoftheclienttheamountofthevalueestimatetheattainmentofastipulatedresultortheoccurrenceofasubsequentevent5MyanalysesopinionsandconclusionsweredevelopedandthisreporthasbeenpreparedinaccordancewiththefinalrulebyOfficeoftheComptrolleroftheCurrency12CFRPart34datedAugust241990asamendedtheUniformStandardsofProfessionalAppraisalPracticeandinconformitywiththerequirementsoftheCodeofProfessionalEthicsandtheStandardsofProfessionalPracticeoftheAppraisalInstitute6Ihavemadeapersonalinspectionofthepropertythatisthesubjectofthisreport7Nooneprovidedsignificantprofessionalassistancetothepersonsigningthisreport8Thevalueestimatesinthisreportwerenotbasedonarequestedminimumvaluationaspecificvaluationorfortheapprovalofanyloan9TheuseofthisreportissubjecttotherequirementsoftheAppraisalInstituterelatingtoreviewbyitsdulyauthorizedrepresentatives
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4TABLEOFCONTENTSPAGENUMBERLETTEROFTRANSMITTAL2TABLEOFCONTENTS4PHOTOGRAPHSOFSUBJECTPROPERTY5STATEMENTOFTHEAPPRAISALPROBLEM11SUMMARYOFSALIENTFACTSANDCONCLUSIONS13LOCATION15SCOPEOFAPPRAISAL17REGIONALANDCITYDATA18NEIGHBORHOODDATA23DESCRIPTIONOFIMPROVEMENTS24SITEANALYSIS25ZONING26MARKETINGPERIOD27STATEMENTOFHIGHESTANDBESTUSE28COSTAPPROACH31INCOMEAPPROACHTOVALUE32SALESCOMPARISONAPPROACHTOVALUE43CORRELATIONANDFINALVALUEESTIMATE49CERTIFICATION50GENERALUNDERLYINGASSUMPTIONS51CONTINGENTANDLIMITINGCONDITIONS53ADDENDA55
PHOTOSOFSUBJECTPROPERTYTheAdamsCompanyFacilitySideTheAdamsCompanyFacilityFront
PHOTOSOFSUBJECTPROPERTYTheAdamsCompanyFacilityFrontTheAdamsCompanyFrontlSide
PHOTOSOFSUBJECTPROPERTYTheAdamsCompanyFacilityRearlParkingAreaTheAdamsCompanyFacilityParkingArea
8PHOTOSOFSUBJECTPROPERTYTheAdamsCompanyRearlParkingAreatheAdamsCompanyRearSideParking
PHOTOSOFSUBJECTPROPERTYTheAdamsCompanyRearlSideTheAdamsCompanySidelParking
10PHOTOSOFSUBJECTPROPERTYTheAdamsCompanyAccessDriveTheAdamsCompanySidelStreet
11STATEMENTOFTHEAPPRAISALPROBLEMPurposeThepurposeofthisSummaryAppraisalistoestimatetheAsIsMarketValueoftheFeeSimpleInterestofthesubjectpropertylocatedat100East4thStreetIceHarborCityofDubuqueIowaDefinitionMarketValueisdefinedbyTheAppraisalFoundationinitsUniformStandardsofProfessionalAppraisalPracticeasthemostprobablepricewhichapropertyshouldbringinacompetitiveandopenmarketunderallconditionsrequisitetoafairsalethebuyerandsellereachactingprudentlyknowledgeablyandassumingthepriceisnotaffectedbyunduestimulusImplicitinthisdefinitionisconsummationofasaleasofaspecificdateandpassingtitlefromsellertobuyerunderconditionswherebyBuyerandselleraretypicallymotivatedBothpartiesarewellinformedorwelladvisedandeachactinginwhatheconsidershisownbestinterestAreasonabletimeisallowedforexposureintheopenmarketPaymentismadeintermsofcashinUSdollarsorintermsoffinancialarrangementscomparabletheretoandThepricerepresentsthenormalconsiderationforthepropertysoldunaffectedbyspecialorcreativefinancingorsalesconcessionsgrantedbyanyoneassociatedwiththesaleAnalysisoftheProblemThesubjectpropertyiscurrentlyutilizedastheAdamsCompanyManufacturingFacilityThesubjectpropertyhascontinuouslybeenoccupiedasamanufacturingfacilityformanymanyyearsThesubjectparcelsizeisestimatedat461acresor200637SFmoreorlessTheanalysiswillestimatethesubjectlandmarketvaluebasedonapricepersquarefootbasisThesubjectpropertyislocatedintheIceHarborareawhichisanareaborderingtheIceHarborandtheMississippiRiverwhichisexperiencingsignificantcommercialrecreationalgrowthatthepresenttimewiththisgrowthanticipatedtocontinueinthefutureTheappraisalprocesstypicallyinvolvesthreeapproachesinestimatingthevalueofapropertyTheyaretheCostwhichincludesthelandvalueanalysisSalesComparisonandIncomeApproachestovalueTheCostApproachandIncomeApproachwillnotbeanalyzedTheCostApproachisanimprovementorientedapproachtoestimatingvalueThesubjectpropertyisimprovedwithaolder44440SFmanufacturingfacilitywhichwasbuiltin19281950ThesubjectbuildingisinaveragefairoverallconditionandisdeemedtohaveminimalcontributoryvaluetothesubjectpropertyasawholeinlieuofmyHighestAndBestUseanalysisaswellasthefairtoaverageconditionThereforetheCostApproachwouldbegivennoweightinthefinalanalysisinlieuofdepreciationandobsolescenceandthereforewasnotanalyzedherein
12AnalysisoftheProblemcontinuedTheIncomeApproachisanalyzedhereinbasedonananalysisofthecurrentincomestreamAsThoughImprovedDateofAppraisalThesubjectpropertywasinspectedformallyonFebruary222002byThomasPKaneSaleHistoryAccordingtotheDubuqueCityAssessorsofficethesubjectpropertyhasnotbeentransferredwithinthepast3yearsPersonalPropertyNopersonalpropertyisincludedinthevalueestimateshereinHazardousMaterialsThevalueestimateisbasedupontheassumptionthattherearenohazardousmaterialsonthesiteIamnotqualifiedtodiscernthepresenceorabsenceofsuchmaterialsasbestosundergroundtanksetcbutamawarethattheycanhaveasignificanteffectuponthevalueofapropertyNoresponsibilityisassumedforanysuchconditionsorforanyexpertiseorengineeringknowledgerequiredtodiscoverthemThesubjectpropertyhasbeenanindustrialsiteformanymanyyearsInlieuofthissomeconcernexistswithregardtothepotentialofsubsoilenvironmentalcontaminationwithregardtothesubjectsiteTomyknowledgenoPhase1orPhase2environmentalassessmentshavebeenconductedTheclientisurgedtoretainanexpertintheenvironmentalfieldoranopinionwithrespecttoanypotentialenvironmentalhazardwithregardtothesubjectsiteThevalueestimateshereinarebasedonthesubjectsitehavingnoenvironmentalhazardofanykindAmericansWithDisabilitiesActTheAmericanswithDisabilitiesActADAbecameeffectiveJanuary261992IhavenotmadeaspecificcompliancesurveyandanalysisofthispropertytodeterminewhetherornotitisinconformitywiththevariousdetailedrequirementsoftheADAAdetailedsurveycouldrevealthatthepropertyisnotincompliancewithoneormoreoftherequirementsoftheADAwhichcouldhaveanegativeeffectuponitsvalue
13SALIENTFACTSSUMMARYPropertyTypeManufacturingFacilityPropertyLocation100East4StreetCityofDubuqueIceHarborDubuqueIowaOwnerTheAdamsCompanyDateofValuationFebruary222002PropertyRightsEvaluationFeeSimpleInterestSiteData461acresor200637ISFImprovementData44440SFManufacturingFacilityZoningMHIModifiedHeavyIndustrialHighestandBestUseAsThoughVacantThedevelopmentofaRiverFrontbusinessoperationAsThoughImprovedInterimuseasamanufacturingfacilityProbableuseasarecreationalorriverfrontbusinessoperationValueIndicationsCostApproachNOTANALYZEDSalesCompApproach2407500IncomeApproach1321500
14SALIENTFACTSSUMMARYcontinuedLeaseDataOwnerOccupiedNoFormalLeaseTermsAvailableFinalValueEstimate24075002407500TWOMILLIONFOURHUNDREDSEVENTHOUSANDFIVEHUNDREDDOLLARS
15LOCATIONThesubjectpropertyislocatedintheDubuqueIceHarborAreaThesubjectpropertyislocatedat100East4hStreetCityofDubuqueIowaLEGALDESCRIPTIONLot1AdamsCompanys2dAdditionParcel1130110006ASSESSMENTANDTAXES513460TotalAssessmentofLandandBuildingsThesubjectbuildingwaslastassessedin2001Taxes24122
16FUNCTIONOFAPPRAISALThefunctionoftheSummaryAppraisalisforinvestmentanalysispurposesinlieuofongoingnegotiationswiththeCityofDubuqueastheCityofDubuqueintendstoacquirethesubjectpropertyfordevelopmentpurposesPURPOSEOFAPPRAISALThepurposeoftheSummaryAppraisalistoestimatetheAsIsMarketValueofthesubjectFeeSimpleInterestasofFebruary222002
17SCOPEOFAPPRAISALThescopeoftheAppraisalrequirescompliancewiththeUniformStandardsofProfessionalAppraisalPracticepromulgatedbytheAppraisalStandardsBoardoftheAppraisalFoundationandtheGuideNotestotheStandardsofProfessionalAppraisalPracticeadoptedbytheAppraisalInstituteThestandardscontainbindingrequirementsandspecificguidelinesthatdealwiththeprocedurestobefollowedindevelopinganappraisalanalysisoropinionTheseuniformstandardssettherequirementstocommunicatetheappraisersanalysesopinionsandconclusionsinamannerthatwillbemeaningfulandnotmisleadinginthemarketplaceASummaryNarrativeAppraisalReportonthesubjectpropertyhasbeenpreparedThesubjectpropertydatasuchassizelocationqualityandzoningareconsideredandpresentedinthisreportMarketdataincludinglandsalesrentalratesoperatingexpensesandsupplyanddemandareamongtheitemsresearchedanalyzedandpresentedThedataisusedtoconsiderthehighestandbestuseofthesubjectpropertyandtoestimatetheMarketValueTheAppraiserlackstheknowledgeandexperiencewithrespecttothedetectionandmeasurementofhazardoussubstancesThereforethisassignmentdoesnotcoverthepresenceorabsenceofsuchsubstancesasdiscussedintheGeneralUnderlyingAssumptionssectionHoweveranyvisualorobviouslyknownhazardoussubstancesaffectingthepropertywillbereportedandanindicationofitsimpactonvaluewillbediscussedThedocumentationnecessarytoarriveatthevalueisconsideredinthisappraisalreportThemarketdatahasbeencollectedconfirmedandanalyzedComparablesaleswerechosenfortheirsimilarhighestandbestusesasoutlinedwithinthereportAllsaleswereanalyzedandcomparedtothesubjectpropertybasedontheirsimilaritiesanddissimilaritiesTheCostApproachwasnotanalyzedhereinTheCostApproachwasnotanalyzedhereinduetotheaverageconditionandageofthesubjectmanufacturingbuildingwhichwoulddictatesignificantphysicaldepreciationandexternalobsolescencewithrespecttotheinterimuseoftheexistingimprovementsthereforethiswouldbeaveryabstractanalysisandwouldnotbegivenanyweightinthefinalanalysisandthereforewasnotanalyzedhereinTheIncomeApproachwasanalyzedhereinbasedonthepotentialincomestreamoftheexistingimprovementswhichisamanufacturingfacility
18AREADATATheDubuquemetropolitanareaislocatedgeographicallyonthemosteasternpointoftheStateofIowaItisreferredtoastheTriStateareasinceitjoinsthepointsofthestatesofIowaIllinoisandWisconsinDubuqueIowaislocated176mileswestofChicagoIllinois200milessouthwestofMilwaukeeWisconsin90milessouthwestofMadisonWisconsin261milessouthofMinneapolisMinnesotaand185mileseastofDesMoinesIowaTheStateofIowahasapopulationof2771960andDubuqueCountyhasatotalpopulationof86403withthecityofDubuquehavingapopulationof57546TheeasternboundaryofDubuqueCountyincludingthecityofDubuqueborderstheMississippiRiverThemajorthoroughfaresthroughtheareaareHighway20Highway151523and61TheDubuqueareahascompletedmanymajorroadprojectsincludinganelevatedthoroughfarethatgoesthroughthedowntownareaThishasenhancedthedevelopmentoftheareaandstreamlinedthevehiculartransportationneedsofthearea
19TOPDUBUQUECOUNTYEMPLOYERSPRIVATESECTORFIRMS1JOHNDEEREDUBUQUEWORKS235218600SouthJohnDeereRoadDubuqueIowa520015635895151Productsincludebackhoeloaderscrawlersenginesandwinches2DUBUQUECOMMUNITYSCHOOLDISTRICT14102300ChaneyRoadDubuqueIowa520015635885100Education3MERCYMEDICALCENTERDUBUQUE1329250MercyDriveDubuqueIowa520015635885100HospitalCare4MEDICALASSOCIATESCLINICPC9801500AssociatesDriveDubuqueIowa520025635844111HealthServices5THEFINLEYHOSPITAL840350NGrandviewAvenueDubuqueIowa520015635821881HospitalCare6FLEXSTEELINDUSTRIESINC8503400JacksonStreetDubuqueIowa520015635567730upholsteredfurniturerecreationalvehicleupholsteredseatingandmetalseatingcomponentsresidentialandRVconvertiblebeddingcontractandcommercialseatingfourcolorcataloguephotographyprintingandfabricswatchingservices7CITYOFDUBUQUE70513TCentralAvenueDubuqueIowa520015635894100PublicService8EAGLEMANUFACTURINGCOMPANY550375East9thStreetDubuqueIowa520015635562270Aluminumcladandallwoodwindowsanddoors9ADVANCEDDATACOMMINC550301DataCourtDubuqueIowa520035635829501CallCenterService10GREATERDUBUQUERIVERBOATENTERTAINMENTCOMPANY620dlbaDubuueDiamondJoCasino400East3rStreetDubuqueIowa520015635837005RiverboatCasino
2011BARNSTEADTHERMOLYNE4322555KerperBoulevardDubuqueIowa520015635562241Apparatusessuchaselectricalfurnacescontrollershotplatesmagneticstirrerswaterpurificationequipmentdribathscultureincubatorsdrysterilizesetcforindustrialeducationalandmedicallaboratories12DUBUQUECOUNTY415720CentralAvenueDubuqueIowa520015635894441GovernmentalPublicServices13McKESSONHBOCINC409700LocustStreetDubuqueIowa520015635563131DataProcessingServicesCOMMERCIALINDUSTRIALSERVlCESMachineshopNumberIfnomachineshopsdistancetonearestTooldieserviceNumberIfnotooldieservicedistancetonearestElectricmotorrepairNumberIfnoelectricmotorrepairdistancetonearestCitynewspaperNumberoflocalradiostationsSeatingcapacityoflargestbanquetroomNumberofTVchannelsreceivedIscityservedbycableTVNumberofmotelshotelsTotalnumberofroomsavailableNumberofbanksincityBankassetsNumberofsavingsandloanfirmsSavingandloanassetsNumberofcompanyownednationalchainChamberofCommerceManagerisfulltimeEconomicdevelopmentpersonnelservicesYes80milesYes30milesYes70milesDaily5220050Yes20144249034660002777130000retailstores67YesYesYes
21PUBLICANDPRIVATESCHOOLSTYPENUMBERTEACHERSENROLLMENTGRADESElementary13272486116JuniorHigh286137578HighSchool32253318912ParochialSchool132764720112TradeTechnicalSWWisconsinTechnical40milesNECommunityCollegeNortheastIowaCommunityCollegeFourYearCollegeorUniversityClarkeCollegeLorasCollegeUniversityofDubuqueEmmausBibleCollegeDivineWordCollegeOtherUniversityofDubuqueTheologicalSeminaryandWartburgTheologicalSeminary2hrsfrom4majorstateuniversitiesINDEPENDENTCAREForalistofregisteredchildcareprovidersinDubuqueCountyNeslerCentreSte410DubuqueIowaCULTURALRECREATIONALFACILITIESNumberoflocalfacilitiesandthosewithin45minutetraveltimePublicGolfCourses6PublicTennisCourts19PublicParks32PublicSwimmingPools6NumberofCountryClubsAvailable2PublicAccesstoLakeorRiverYesActivitiesAllowedSwimmingFishingWaterSkiingMotorBoatingCulturalandInformationTheaterYesLibraryYesOperaYesMuseumYesBalletYesResourcesHistoricSiteYesArtGalleryYesSymphonyYesHistoricalSocietyYesArtCouncilYesEventsNationalFarmToyShowBaldEagleDayIowaSpecialOlympicsWinterGamesDubuquefestRiverfestArtsCraftsShows
22AttractionsTheMississippiRiverofferstheMidwestsfinestrecreationalfishingboatingandriverboatgamblingPlusGreyhoundRacingSundownskiarea475ftverticaldrop3chairliftsPSIAcertifiedskischoolDiamondJoRiverboatGamblingCasinoRemarksHeritageTrailoffers26milesofscenichikingandotheroutdoorrecreationalactivities4thStreetElevatorCableCarnaturalbeautyhistoricalsignificanceandyeararoundfunandexcitementHEALTHFACILITIESNumberofhospitalsservingcommunity2Totalnumberofbeds567IfnohospitaldistancetonearestfacilityLocalDistancetoemergencymedicaltreatmentLocalIsLifeFlightEMTambulanceserviceavailableYesIsthereaclinicincommunityYesSpecialtyofclinicIowasoldestlargestmultispecialtyNumberofmedicaMDsDentistsDOsDCsOtherIpersonnelincommunity15057415RemarksDubuqueservesasregionalhealthtreatmentcenterHospitalservicesincludeneonatalintensivecareunitTurningPointTreatmentCenterforalcoholdrugrelateddependenciesWendtRegionalCancerCenternursinghomesMISCELLANEOUSINFORMATIONNumberofchurchesincity64Catholic17Protestant47Jewish1ActivecivicindustrialimprovementprogramsAveragecostofconstructionforresidentialhousing6878
23NEIGHBORHOODDESCRIPTIONThesubjectpropertyislocatedintheIceHarborareadominatedbyrecreationalfacilitiesTheDiamondJoeGamblingCasinoOperationMississippiRiverMuseumandtheNationalRiversHallofFameMuseumarelocatedinthesubjectneighborhoodTheWilliamBlackMuseumislocatedinthesubjectneighborhoodTotheeastofthesubjectpropertyistheformerDubuqueStarBrewingBuildingwhichiscurrentlyvacantThesubjectneighborhoodisconsideredtobeinatransitionalstageThesubjectneighborhoodisknownastheIceHarborareaandiscurrentlyinaCityofDubuqueUrbanRenewalDistrictThisUrbanRenewalDistrictwasamendedandreinstatedonJune52000bytheCityofDubuqueIowaThereisongoingconstructionofredevelopmentoftheRiverFrontintheIceHarborareaThedevelopmentofaRiverWalkispresentlyunderconstructionandfutureplansincludethedevelopmentofanAmphitheaternexttotheformerStarBrewingFacilityTheIceHarborAreaalsoisundergoingconsiderablecommerciallrecreationaldevelopmentinlieuoftheongoingdevelopmentoftheAmericasRiverProjectofwhichanapproximately188millionbudgethasbeenallocatedIfeelthatthetrendoftheneighborhoodwilllenditselftoongoingcommercialrecreationaldevelopmentinthesubjectimmediateneighborhood
24DESCRIPTIONOFIMPROVEMENTSThesubjectpropertyisamanufacturingfacilityThesubjectpropertyisimprovedwitha44440SFindustrialbuildingwithofficesThebuildingwasbuiltinthreetotalphasesThe1Stphasewasbuiltin1928andisa80x220or17600SFbuildingthe2dbuildingwasbuiltin1950andis72x220or158401SFandthe3dbuildingwasattachedin1951andis50x220or11000SFThereforethecombinationofthethreeattachedbuildingstotal44440SFThebuildinghashadconsiderableupdatingandhasbeenwellmaintainedovertheyearsandwouldbeconsideredtobeinaverageoverallcondition
25SITEDESCRIPTIONThesubjectpropertyconsistsof461acresor200637SFmoreorlessThesubjectbuildingishookeduptoCitywatersewerPoliceandFireprotectionareprovidedtothesubjectsitebytheCityofDubuqueAllprivateutilitiesincludingQuestPhoneServiceAlliantElectricalServiceandPeoplesNaturalGasServiceareimprovedonthesubjectsiteAreviewofthefloodmapnumber19518000066dated9689indicatesthesubjectpropertyisina500yearfloodzoneareaThesubjectpropertyisprotectedbyafloodwalltotheeastThesubjectsiteiszonedMHIModifiedHeavyIndustrialbytheCityofDubuquePresentuseasamanufacturingfacilityisalegalconforminguseThesubjectsiteisanearlrtriangularshapedparcellocatedadjacenttotheintersectionofEast4hStreetandEast6StreetThedevelopablesurfaceofthesubjectpropertyisnearlylevelTheanalysishereinisbasedonthesubjectsiteandbuildingshavingnoenvironmentalcontaminationofanykindSeeLimitingConditionsattheendofthisreport
26ZONINGAccordingtotheCityofDubuqueZoningOfficialssubjectsiteiszonedMHIModifiedHeavyIndustrialTherearemanyallowableusesintheModifiedHeavyIndustrialDistrictPresentuseisalegalconforminguseAcopyoftheallowableModifiedHeavyIndustrialZoningallowableusesisintheAddendaofthisreport
27MARKETINGPERIODFewrecentsaleswerenotedinthesubjectsimmediatevicinityandforthetypeofdevelopmentofthesubjectpropertytohelpidentifythenormalmarketingperiodforpropertiessimilartothesubjectConversationswithinvestorspropertyownersandrealestateagentsinthearearevealedmarketingisoftenbywordofmouthandtransactionsoccurwithoutadvertisingthepropertiesforsalewithsignageThesubjectneighborhoodpropertiesareperceivedbyinvestorstobeaninvestmentopportunitywithanticipationoflongtermholdingandinvestmentreturnthroughappreciationinpropertyvalueandgoodnetincomesthroughconsistentcashflowsAssuchpropertieslikethesubjectwillbepurchasedfordevelopmentparticularlyinlieuofsubjectbeinginatransitionalstateBasedontheshortsupplyoflandinthesubjectneighborhoodthemarketingperiodshouldtypicallybewithin12to48monthsforthistypeofproperty
28HIGHESTANDBESTUSETheHighestandBestUsedefinitionisincludedattheendofthereportintheImportantDefinitionssectionThephysicalcharacteristicsofthelandsuchassizeshapelocationandtopographyhavebeenconsideredInadditiontheanalysishasincludedthesurroundingdevelopmentsexistingzoningaccesstomajortransportationroutesavailabilityofutilitiescurrenttrendsanddemandforpropertyofthistypeintherealestatemarketThelandvalueisbasedonthepremiseoftheHighestandBestUseAsThoughVacantTherearefourtestswhicharetakenintoconsiderationindevelopinganopinionofHighestandBestUseThesefourtestsincludeanexaminationofthoseusesthatarephysicallypossiblelegallypermissiblefinanciallyfeasibleandmaximallyproductiveEachcriterionisconsideredcumulativelyandprovidesthebestanalysisfortheHighestandBestUseofthelandThefollowingistheHighestandBestUseofthesubjectsiteAsThoughVacanPhysicallyPossibleSizeshapeareasoilsandtopographyaffecttheusestowhichasitemaybephysicallydevelopedTheutilityofaparcelmaydependonitsfrontageanddepthIrregularlyshapedparcelsmaycostmoretodevelopandwhendevelopedmayhavelessutilitythanarectangularparcelThesubjectpropertyparcelsizeisestimatedtobe461acresor200637ISFmoreorlessThesubjectpropertyisinafloodwallprotectedareaandisinthe500yearfloodplainThetrendofthesubjectneighborhoodistowardscommercialrecreationaldevelopmentThelandareaisonthewestsideoftheFloodWallandisconducivetothedevelopmentofindustrialorcommercialbuildingBasedonmyinspectiontherearenoknownphysicalrestraintswhichwouldinhibitthedevelopmentofthesubjectlandThesubjectsiteiscurrentlyimprovedwithanoldermanufacturingbuildingwhichisinaveragecondition
29HIGHESTANDBESTUSEcontinuedLegallyPermissibleAfterconsideringthoseusesthatarephysicallypossibletheusesthatarelegallypermissiblewereconsideredAccordingtotheCityDubuqueZoningOfficialsthesubjectsiteiszonedModifiedHeavyIndustrialTherearemanyallowableindustrialandcommercialuseswithinthiszoningdistrictThetrendoftheneighborhoodhasbeentowardtourismandrecreationalusesIfeelthatthisisverylikelythesubjectsitecouldberezonedtoarecreationalorservicebusinessuseconduciveandcompatibletothetrendoftheneighborhoodwhichistowardrecreationalandtouristtypebusinessusesFinanciallyFeasibleThenextanalysisinvolvesconsiderationofthoseusesthathavebeendeterminedtobephysicallypossibleandlegallypermissibletodeterminewhicharefinanciallyfeasibleIfeelthemostfinanciallyfeasibleuseofthesubjectlandwouldbeforthedevelopmentofarecreationalortouristorientedbusinessorattractionIfeelthesubjectlocationbeingintheDubuqueIceHarborareaasarecreationfacilitypossiblehotelisthemostFinanciallyFeasibleuseofthesubjectlandIfeelthemostfinanciallyfeasibleusewouldbeforthedevelopmentofabusinessorientatedtourismandorrecreationalusessuchasaresortmotelconventioncenterhotelwaterparkorsomeotherrecreationalusethatwouldconformtothetrendoftheneighborhoodMaximallyProductiveTheAppraiserhasconsideredfromamongtheusesoutlinedabovethoseuseswhichwouldreturnthehighestnetpresentvaluetothelandoverthelongtermIfeelthemaximumproductiveuseofthesubjectlandwhichwoulddictatethemaximumreturntothelandoverthelongtermwouldbeforthedevelopmentofabusinessoperationconducivetothetrendoftheneighborhoodwhichwouldberelatedtothetourismorrecreationaltypebusinessoperationsThiscouldbeamotelhoteloperationarecreationalparkanamusementparkorothertouristorrecreationalrelatedbusinessoperations
31COSTAPPROACHMETHODOLOGYTheCostApproachtoValuepresumesthatnoprudentbuyerwillpaymoreforthesubjectthananamountnecessarytosecureequallydesirablelandandifthelandisimprovedbuildasubstitutebuildingnewGenerallyhewillpaysomewhatlessthancostnewdependingupontheestimatedaccrueddepreciationofthatbuildingasofthedateofhisinspectionVALUEESTIMATIONThefirststepinestimatingMarketvaluebytheCostApproachistoestimatethevalueofthelandAnexcellentwaytoestimatethevalueofthelandistouserecentcomparablesalesofvacantlandThesecondstepinestimatingmarketValuebytheCostApproachistocalculateavalueestimatefortheimprovementsthatcontributevaluetothesubjectpropertyTodothistheAppraisermustfirstestimatethereproductioncostnewofthesubjectsimprovementsTobringthatreproductioncostnewtothevalueoftheimprovementasofthestateofvaluationaccrueddepreciationincludingphysicalfunctionalandexternalmustbeestimatedandthendeductedfromthecostnewTheestimatedMarketValueofthelandandthecontributoryestimatedmarketValueoftheimprovementsarethanaddedtogethertoarriveattheestimatedMarketValueofthesubjectpropertybytheCostApproachSincetheCostApproachisnotdevelopedinthisappraisalreportthelandvaluewillbeestimatedintheSalesComparisonApproachEXCLUSIONOFCOSTAPPROACHTOVALUETheUniformStandardsofProfessionalAppraisalPracticeUSPAPsetstandardstobeusedindevelopinganappraisalreportAnappraisaliseitheraCompleteAppraisaloneinwhichtherearenodeparturesfromtheStandardsRulesExcludingoneormoreofthethreeapproachestovaluewouldbeadeparturefromStandardsRule14ifthedevelopmentofthatapproachwerepertinenttothespecificappraisalassignmentIfhoweverthedevelopmentofthatapproachtovalueisirrelevantornotapplicabletotheHighestandBestUseofthesubjectpropertythenexclusionofthatapproachtovalueisnotadeparturefromUSPAPTheCostApproachisanimprovementorientedapproachtovalueThesubjectmanufacturingfacilityisinaverageoverallconditionandwouldhavesignificantphysicaldepreciationwithrespecttotheageandaverageoverallconditionAlsotherewouldbeconsiderableexternalobsolescencewithrespecttothemanufacturingfacilitybeinginalocationandcurrentusewhichisconsideredaninterimuseThereforeasaresultofthephysicaldepreciationandexternalobsolescencethecostapproachwasnotdevelopedhereinandwouldhavebeengivennoweightinthefinalanalysis
30HIGHESTANDBESTUSEcontinuedHighestandBestUseAsThoughVacantIfeeltheHighestandBestUseofthesubjectlandAsThoughVacantwouldbeforthedevelopmentofabusinessrelatedtothetrendoftheneighborhoodwhichistowardtherecreationalortouristbusinesssuchasamotelhotelconventioncenterarecreationalparkanamusementparkortouristorrecreationalbusinessHighestandBestUseAsImprovedThesubjectpropertyiscurrentlyoccupiedbytheAdamsCompanyamanufacturingcompanyThesubjectbuildingiscurrentlyusedasamanufacturingofficefacilityIfeelthecurrentuseisaninterimuseTheHighestandBestUseofthesubjectlandisforcommercialrecreationaldevelopment
32INCOMEAPPROACHTheIncomeCapitalizationApproachisbasedonandconsistentwiththebasicvalueinfluencesandprinciplesofrealestateappraisalTheprincipleofanticipationisfundamentaltotheapproachbecausevalueiscreatedbytheexpectationofbenefitstobederivedinthefutureValuemaybedefinedasthepresentworthofallrightstothesefuturebenefitsAllIncomeCapitalizationMethodstechniquesandproceduresattempttoconsideranticipatedfuturebenefitsandestimatetheirpresentvalueTheIncomeApproachalsoconsidersthebasicvalueinfluencesofchangesupplyanddemandsubstitutionbalanceandexternalitiesChangeisconsideredbecauseovertimeincomeandexpensesmayfluctuateandaffectthenetoperatingincomewhichistobecapitalizedintoavalueindicationTheprincipleofsupplyanddemandandtherelatedconceptofcompetitionarerelevantinforecastingfuturebenefitsandratesofreturnTheeconomicprincipleofsubstitutionisconsideredbecausepricesrentsandratesofreturntendtobesetbypricesrentsandratesofreturnforequallydesirablesubstitutepropertiesBalanceandcontributionareconsideredbecauseanimbalanceinefficientlandusemayresultinadeclineinvaluewhereasareasonablebalanceamongthefouragentsofproductioninanincomeproducingpropertycreatesandsustainsmaximumprofitabilityPositiveandnegativeexternalforcessuchaspollutionorunattractivesurroundingscanalsoaffectvalueInordertovaluetheanticipatedeconomicbenefitsofaparticularpropertypotentialincomeandexpensesmustbeestimatedandthemostappropriatecapitalizationmethodselectedTwoofthemostcommonmethodsofconvertingnetincomeintovalueareDirectCapitalizationandYieldCapitalizationDirectCapitalizationtypicallyinvolvesdividingthenetoperatingincomeexpectancyofasingleyearoranannualaverageofseveralyearsincomebytheappropriateincomeratetoarriveatanindicationofvalueYieldCapitalizationwhichisalsoknownasaDiscountedCashFlowAnalysisinvolvesdiscountingtheannualcashflowsfortheholdingperiodplusthereversionaryvalueattheendofthatperiodtoitspresentworthataspecifiedyieldrateTypicallythisanalysisisutilizedonincomeproducingpropertieswheretherealestateisencumberedbyalongtermleaseagreementTheIncomeApproachalwaysincludesanexaminationofmarketrentseithertodetermineamarketrentalrateforthesubjectpropertyortodetermineiftheleaseonapropertyisatmarketratesThemarketrentalrateforthesubjectpropertyisconsideredtobeeconomicrentFromthiseconomicrentareasonablevacancyandcreditlosswhichmayoccurovertheholdingperiodissubtractedfromthegrossincomeinordertoarriveatanEffectiveGrossIncomeOperatingexpensesandareserveforreplacementaresubtractedinordertoarriveatanetoperatingincomefigureThenetoperatingincomeiscapitalizedintoanindicationofvalueutilizingacapitalizationtechniqueappropriatetotheappraisalassignmentTheDiscountedCashFlowAnalysiswasnotanalyzedhereinsincethereisnoformalleaseinplacewithrespecttothesubjectmanufacturingfacilitytomyknowledgeasitisowneroccupied
33POTENTIALGROSSINCOMEThemostessentialpartoftheIncomeApproachtoValueisthefutureincomestreamofthesubjectpropertyThefirststepinthisapproachistoestimatetheannualgrossincomethatmaybeearnedfromthesubjectInordertoaccomplishthismarketrentmustbedevelopedfromcomparablerentalsinthemarketplaceMarketrentistheamountofrentwhichcouldbereasonablyexpectedifthepropertywereundercompetentmanagementandavailableforrentThesubjectmanufacturingbuildingiscurrentlyowneroccupiedandnoformalleasetermsweremadeavailabletomeInlieuofthisIhaveestimatedthepotentialgrossincomeforthesubjectexistingmanufacturingfacilitybasedonamarketrentstudyIhaveconductedofothersimilarindustrialfacilitiesintheDubuqueareaaswellasagoodworkingknowledgeoftypicalcompetitivemarketrentalofbuildingsofthesubjecttypeandlocationAllleaseanalyseshereinarebasedontriplenetleasesasthesubjectmanufacturingbuildingwouldmostlikelybeasingletenantuserfacilityleasedonatriplenetleasebasisManyoftheLeaseComparablesarealsoleasedonatriplenetleasebasisforappropriateanalysispurposeshereinSeethefollowingpageforagriddisplayingcompetitiveindustrialdistributionfacilitymarketleasesAsaresultofananalysisofthecurrentleaseaswellasthemarketrentstudyIhaveconductedIestimateacompetitivemarketrentfortheproposedsubjectBuildingasthoughcompletedasfollows44440SF325SF144430annuallyor120351monthThereforethetotalestimatedpotentialgrossincomeisasfollowsTotalEstimatedPotentialGrossIncome144430Annuallyor12035Month
34LEASECOMPARABLEADDRESSBUILDINGBUILDINGLEASESFTYPESIZETYPE1SPIEGELWAREHOUSING18625KERPERBOULEVARDDUBUQUEIOWADISTRIBUTIONVARIABLEGROSS3002WHALENDISTRIBUTION2400KERPERBOULEVARDDUBUQUEIOWADISTRIBUTIONVARIABLEGROSS3003PRECISIONTOOL2820ELMSTREETDUBUQUEIOWAINDUSTRIALBUILDING10000SFGROSS3004810142NSTREETWESTROCKISLANDILLINOISWAREHOUSE85000lSFGROSS2g252500RIVERDRIVEMANUFACTURINGMOLINEILLINOISWAREHOUSE25000SFGROSS2706525EAST181STREETMILANILLINOISWAREHOUSE28000SFNET2757791042dSTREETWESTROCKISLANDILLINOISWAREHOUSE76800SFGROSS265836STREETAND5hAVENUEEASTMOLINEILLINOISINDUSTRIAL110000SFTRIPLE24g93863WESTRIVERDRIVEDAVENPORTIOWAINDUSTRIAL47580SFGROSS250102459KERPERBOULEVARDDUBUQUEIOWASHOPfWAREHOUSEIOFFICE18000SFTRIPLE2g7111202EASTSUMMITMAQUOKETAIOWASHOPANAREHOUSE40000SFTRIPLE275
35IncomeApproachContinuedVacancyandCreditLossConversationswithdevelopersandmortgagebrokersinvolvedincommercialpropertiesrevealedthataminimalvacancyandcollectionlosswouldbeappropriatetypicallyforabuildingofthesubjecttypeIfeelthereisadequatedemandforabuildingofthesubjecttypeandthereforeaminimalor1vacancyandcollectionlossfactorisdeemedappropriateThis1vacancyandcollectionlossfactorisbasedonanestimated2yearrentalstabilizationperiodforthesubjectbuildingFixedExpensesFixedexpensesincluderealestatetaxesinsurancecostsandreservesforreplacementThetypicalleaseagreementsfoundinthemarketplacearecurrentlystructuredonatriplenetleasebasiswiththemajorityoftheexpensesbeingpassedthroughtotheownerAreviewoftheleasesindicatesthatitistypicalforthetenanttopaytherealestatetaxesandtheinsurancecostsallutilitiesandroutinemaintenanceandincludingsnowremovalReserveforReplacementAnamountof012persquarefoothasbeenestimatedforreserveforreplacementitemsThisexpenseprovidesfortheintermittentreplacementofbuildingcomponentssuchasroofcoveringasphaltpavingandmechanicalsystemsthatwearoutmorerapidlythanthebuildingitselfandmustbeperiodicallyreplacedThisallowancehasbeenestimatedfromfiguresgatheredfromMarshallValuationCostServiceConsideringthesubjectbuildingsageandaverageoverallconditionIfeela012persquarefootReserveReplacementallowanceisappropriateforthesubjectbuildingOperatingExpensesTypicallyoperatingexpensesconsistofrealestatemanagementfeescommonareamaintenanceleasingcommissionsandmaintenanceofthebuildingAspreviouslystatedthetypicalleaseagreementsfoundinthemarketplacearecurrentlystructuredonatriplenetleasebasisBasedontheprojectedtriplenetleaseforabuildingofthesubjecttypethetenantwouldberesponsiblefortaxesinsuranceutilitiesandroutinemaintenanceManagementandLeasingManagementrateswithintheDubuquearearangefromapproximately2to4oftheeffectivegrossincomeforsingletenantindustrialbuildingswhenleasedonatriplenetbasisAmanagementfeeof2hasbeenselectedasthesubjectpropertymostlikelywillbeasingleuserbuilding
36ESTIMATEDINCOMEANDEXPENSESPotentialGrossIncomePGI44440SFX325144430Total144430LessVacCreditLossC1144430x1EffectiveGrossIncomeLessFixedExpensesReservesforReplacementC012OperatingExpensesManagement@2TaxesInsuranceRoutineMaintenanceUtilitiesTOTALEXPENSESNETOPERATINGINCOME53332860TenantTenantTenantTenant819357ofEGI134793142986
37DIRECTCAPITALIZATIONOncethenetoperatingincomeisderivedanindicationofvalueiscalculatedusinganOverallCapitalizationRateviaDirectCapitalizationInthiscasetheoverallratehasbeenestablishedusingthreemethods1OverallCapitalizationRateextractedfromthemarket2BandofInvestmentMortgageandEquityComponents3DebtCoverageRatioRoDCRxRmxMThefirstmeansofsupportforthedevelopmentoftheoverallrateisbyextractingactualcapitalizationratesfromthemarketoncomparabletypesofpropertiesAnoverallCapitalizationRateisderivedbydividingthenetoperatingincomeofacomparablebyitssalespriceasofthedateoftransferGenerallyamarketextractedoverallrateisconsideredtobethebestindicatoroftheappropriatecaprateinanactivemarketCapitalizationratesfromthesalesofindustrialdistributionwereavailableThefollowingchartsummarizestheimprovedsalesusedtoextractdirectcapitalizationratesfromthemarketThecapitalizationsalesfromthemarketrangefromahighof1289toalowof965withameanof1127andamedianof1008toestimateamarketderivedcaprateAllsixofthecomparabeasaelsnclludeananalyzedindustrialdistributionfacilitiesattimeofsalewhichwasdeemedappropriateforproperanalysispurposesThesalesrangeindateofsalefrom1998to2000BasedonthetrendofinvestorsIfeelitisappropriatetoincludeDubuquewhichinvolvepropertiesintheareafortypicalacceptableorientedrateofreturnforprojectsofthesubjecttypeasacomparisonAsurveyofmodernindustrialdistributionbuildingsinDubuquerevealedthatacapitalizationrateofapproximately102wouldbemoretypicalThissurveyissubstantiatedbyconversationswithmortgagebrokerswhostatethatatypicalcapitalizationrateforindustrialdistributionbuildingsisapproximately989to11BasedonthesubjecttypicallybeingasingleuserindustrialdistributionbuildingaratetowardsthecenterisdeemedappropriateThesecondandthirdmeansofestimatingtheappropriatecapitalizationrateinitiallyinvolvesasurveyofthefinancialmarketplaceinordertoarriveattypicalfinancingtermsforapropertysimilartothesubjectThefollowingrateswerequotedfromareamortgagebrokersasbeingtypicalfinancingtermsforpropertiessimilartothesubject
38DubuqueBankTrustInterestRateLoanTermLoanValueDebtCoverageRatioAmericanTrustSavingsBanNInterestRateLoanTermLoanValueDebtCoverageRatio7020Yearamortization35yeararm752512017065to7520Yearamortization35yeararm7525130160BandofInvestmentThesecondmeansofsupportforthecapitalizationrateisbyutilizingaBandofInvestmenttechniquewhereinthemortgageandequitycomponentsareanalyzedBecausemostpropertiesarepurchasedwithdebtandequitycapitaltheoverallcapitalizationratemustsatisfythemarketreturnrequirementsofbothinvestmentpositionsThistechniqueisbasedonthefactthatlendersanticipatereceivingacompetitiveinterestratecommensuratewiththeperceivedriskoftheinvestmentandthattheloanprincipalwillbepaidbackbyperiodicamortizationpaymentsLikewisetheequityinvestoranticipatesreceivingacompetitivereturnonthisinvestmentwhichwouldalsobecommensuratewiththeperceivedriskInsummarytheBankofInvestmentindicatesanOverallCapitalizationRatethatisaweightedaverageoftheMortgageConstantRmandtheEquityDividendRateReTheLoantoValueRatioMdictatesthepercentageofweightforeachcomponentAcapitalizationratefordebtiscalledaMortgageConstantRmwhichistheratiooftheannualdebtservicetotheprincipalamountofthemortgageloanInsummarytheMortgageConstantisafunctionoftheinterestratethefrequencyofamortizationandthetermoftheloanBasedonthecurrentfinancialmarketconditionsintheDubuqueCountymarketandtakingintoconsiderationthefinancingavailablethroughthesecondarymarketwhichiscurrentlyquoting65to75forinvestmentgradepropertiesIhavedeterminedthattypicalfinancingforthistypeofpropertywouldincludea7interestratewithatwentyyearamortizationschedulewitha5yeararmandaloantovalueratioof7525BasedonthiscriteriatheMortgageConstantRmequatesto01147OntheequitysideoftheequationistheEquityCapitalizationRateReAccordingtothe11hEditionofTheAppraisalofRealEstatetheequitycapitalizationrateistheratioofannualpretaxcashflowtotheamountofequityinvestmentThisrateisnotonlyarateofreturnoncapitalbutalsoincludesareturnofcapitalHoweverforappraisalpurposesapropertiesequitycapitalizationrateisgenerallytheanticipatedreturntoatypicalinvestorforthefirstyearoftheholdingperiodwhichismoretypicallyknownasanequitydividendrate
39INCOMEAPPROACHContinuedThebestmethodofestimatingtheappropriateEquityCapitalizationRateRmisbyextractionfrommarketsalesHoweverbasedonmyresearchnomeaningfulequitycapitalizationrateswereavailablefrommarketsalesThereforeIhaveutilizedthefreeandclearequitycapitalizationrateforcommercialpropertiesdistributionindustrialpropertiesrecentlyquotedinValuationInsightsPerspectiveswhichrangedfrom7to11withanaverageof8TheequitycapitalizationratehasalsobeenestimatedbasedonthecurrenttenandfifteenyearUSTreasurynotesaveragingbetween430and450yieldsAddinganilliquidityfactorofapproximately100to200basispointsindicatesanequitycapitalizationrateofapproximately605Thesubjectpropertymostlywillbeasingleuserfacilityundertypicallylongtermleasetoaqualitytenantanditismyopinionthatanequitydividendrateofapproximately12wouldbesufficienttoattractthenecessaryequitycapitalforthistypeofinvestmentBasedontheaboveanalysisthecalculationsofanoverallcapitalizationrateusingtheBandofInvestmentTechniquesareshownasfollowsBandofInvestmentMortgageEquityComponentsRatioCostRateMortgage075x1147Rm00860Equity025x012Re00300IndicatedOAR01160RoundedtoDebtCoverageRatioDCR116ThethirdandlastmeansusedinestimatinganOverallcapitalizationRateisbytheuseofaDebtCoverageRatioDCRTheDebtCoverageRatioistheratioofnetoperatingincometotheannualdebtservicewhichincludesthepaymentthatcoversinterestonandretirementoftheoutstandingprincipalofthemortgageloanTheformulausedinestimatingtheoverallratebytheDCRisasfollowsRoDCRxRmxMWhereasRoOverallCapitalizationRateDCRDebtCoverageRatioRmMortgageCapitalizationRateMPercentageofMortgage
40INCOMEAPPROACHContinuedBasedontheprecedingconclusionsinregardstothecurrentfinancialmarketplaceanoverallcapitalizationrateusingadebtcoverageratioissummarizedasfollowsRoDCRxRmxMRo145x01147x075Ro01247Ro125RoundedSummaryThemarketextractedratesarefromindustrialpropertiesintheDubuqueareaAspreviouslystatedthecomparableshaveindicatedcapitalizationratesfromahighof1289toalowof965HoweveritisnotedthatindustrialbuildingsinDubuquearetypicallycapitalizedatanaverageof95to11rangesThiscapitalizationrateissubstantiatedbyconversationswithmortgagebankersactiveinthefinancingofthesetypepropertiesBasedonmysurveyitismyopinionthattheindicatedmarketcapitalizationrateshouldbehigherthan10ItshouldbenotedthatindustrialbuildingsaretypicallypurchasedinanticipationofincreasedincomethroughtheexistingleasesTheBandofInvestmentTechniquehasindicated116andtheDebtCoverageRatioTechniquehaveindicated125TheBandofInvestmentTechniqueisconsideredtobeanappropriatemodelduetothefactthatinvestorsgenerallypurchasepropertywithdebtandequitycapitalandtheoverallcapitalizationratemustsatisfythemarketreturnrequirementsofbothinvestmentpositionsThistechniqueisusefulinarapidlychangingfinancialmarketinthatitreflectstherisinginterestratesandtheexpectationsequityinvestorswouldexpectinthemarketTheDebtCoverageRatioTechniqueshouldreceivetheleastamountofoverallrateasanargumentcanbemadethattheDCRismorepertinenttobankingthanappraisalworkhoweversincebothrealestateisleveragedtosomedegreethismethodservesasacheckofreasonablenessMarketextractedcapitalizationratesaregenerallyconsideredtobethebestindicatortothemarketcapitalizationrateforthesubjectThereforebasedonthemarketextractedrateswhilebeingsupportedandmoderatedbytheBandofInvestmentTechniqueandtheDebtCoverageRatioTechniqueitismyopinionthata102overallcapitalizationrateisappropriateforthesubjectproperty
41DIRECTCAPITALIZATIONNetIncomeOverallRatIndicatedValue134793NOI102OAR1321500FinalIndicatedValuebyDirectCapitalization1321500Roundedto1321500ProofofReasonablenessThefollowinganalysisisofferedasacheckofreasonablenessinassumingthe102capitalizationrateisappropriateforthesubjectpropertyTheformulausedinthisproofisasfollowsDCRNOIADSWhereasDCRDebtCoverageRatioNOINetOperatingIncomeADSAnnualDebtServiceBasedontheIncomeApproachcalculationsandthemarketdatagatheredforcurrentfinancingtheaboveformulacanbecompletedTheAnnualDebtServicehasbeenestimatedona1321500valueUsinga75loanratiothiswouldcreatealoanamountof991125FromthemarketIhaveestimateda20yearamortizationschedulewitha5yeararmanda70interestratewhichwouldindicateanAnnualDebtServiceof92210EstimateValue1321500LoanRatiox75LoanAmount991125LoanTerm20YearsInterestRate70AnnualDebtService92210Basedontheabovecalculationstheformulaiscompletedasfollows134793NOI92210ADS146DCR
42The146DebtCoverageRatioisabovetherangeoftheindicatednecessaryDebtCoverageRatiosshownbymortgagebankinginstitutionsTakingintoconsiderationthatthesubjectpropertymostlikelywillbeasingleuserfacilitywithalongtermleasetoaqualitytenantitismyopinionthattheDebtCoverageRatioismorethanreasonableThisformulaservesasacheckofreasonablenessastothe102capitalizationratewhichhasbeenusedinthisreportBasedonthisanalysisIhaveconcludedthattheselectedoverallcapitalizationrateisreasonableandwellsupported
43SALESCOMPARISONAPPROACHTOVALUELandAsIsAsImprovedSALESCOMPARISONTheSalesComparisonApproachtoValuepresumesthatnoprudentbuyerwouldpaymoreforthesubjectthananamountnecessarytoacquireanequalsubstituteassumingnounduedelayThussalesofsimilarpropertiesarepertinentinthevaluationprocessMethodologyThesubjectpropertyisaveryuniquelandparcelasaresultofbeinglocatedintheIceHarborareaThesubjectpropertyislocatedinaverycaptivelocationwithrespecttotheDubuqueIceHarborwhichisanewlydevelopingcommercialrecreationalareaasaresultoftheCityofDubuqueeffortstodeveloptheRiverFrontBasedonagoodworkingknowledgeoftheongoingcommercialrecreationaldevelopmentintheIceHarborareaandtheHighestandBestUseAnalysishereinwhichconcludedthepresentuseasamanufacturingfacilityisaninterimusethesubjectpropertymarketvaluehereinwillbeanalyzedbasedonestimatingthesubjectlandAsIsAsImprovedInlieuoftheobviousinterimusestatusthesubjectpropertytheimprovementsofthemanufacturingbuildinghaveminimalifanycontributoryvaluetothesubjectpropertyasawholeThereforethesalescomparisonanalysiswillbebasedonestimatingthesubjectlandvalueAsThoughVacantandassumethatanyimprovementswillbeincludedinthisestimatedlandvalueandpurchaserwouldacquiretheimprovementswiththelandofwhichmostlikelywillbedemolishedComparableSalesAnalysisMyresearchfoundtwelvesalesthatappearsimilartothesubjectpropertyinmanywaysAllComparableSalesarelocatedintheIceHarborareaandareneighboringpropertiestothesubjectThesubjectpropertyiscompareddirectlytotheComparableSalesbasedontimeofsalelocationparcelsizetopographyavailabilityexistenceofutilitiesoveralldevelopmentpotentialzoningandoverallmarketappeal
44COMPARABLELANDSALESADDRESSILOCATIONSALESALEPARCELZONINGSFDATEPRICESIZESUBJECTADAMSCOMPANY100EAST4hSTREETICEHARBORDUBUQUEIOWANIAN1A200637SFMHINA1ICEHARBORBELLSTREETDUBUQUEIOWA1169618057387512SFHI2062ICEHARBOREAST4hANDBELLSTREETDUBUQUEIOWA4169020498031152SFHI658r3ICEHARBOREAST6hSTREETMARKETPLACEDUBUQUEIOWA181974000027680SFMHIIROD1454ICEHARBORBELL6hSTREETDUBUQUEIOWA816962150001092051SFHI1975ICEHARBORBELLEAST6STREETDUBUQUEIOWA715963250001092051SFMHIIROD2986ICEHARBOR98EAST3dSTREETDUBUQUEIOWA517961200000312858SFCR3847ICEHARBOREAST3dSTREETDUBUQUEIOWA31289095000013653118EHI6968ICEHARBOREAST3dSTREETDUBUQUEIOWA42190800000115086SFHI6959ICEHARBORLOT2RIVERWALKi6ADDDUBUQUEIOWA1019982150500210518SFHI102110ICEHARBORFLOODWALL4hSTREETDUBUQUEIOWA8171992384001187011SFMHIHI20111ICEHARBORLOTS234ADAMSC03rdADDDUBUQUEIOWA12130991056000100580SFCR1050s12ICEHARBORPLASTICCENTERDUBUQUEIOWA1019005900000562000SFHI1050
45SALESCOMPARISONAPPROACHANALYSISThesubjectpropertyisaveryuniquelandparcelAsexemplifiedbythecomparablesalesIceHarborpropertiesareinshortsupplyandhavelimitedavailabilityThesubjectlandparcelsizeof461acresor200637SFisbasedonbeingonecontiguousparcelandisvaluedonapricepersquarefootbasisAlsoastrongconsiderationthroughoutthevalueanalysishereinisgiventothetrendoftheneighborhoodwhichhasexperiencedrapidgrowthoverthepastfewyearsinlieuofthedevelopmentoftheRiverBoatGamblingOperationsAmericasRiverProjectandtheoveralltrendoftheneighborhoodaswellastheproposedriverwalkswhichistowardstourismandrecreationalbusinessdevelopmentaswellastheproposeduseofthesubjectpropertytohaveahotelconventioncenterorrecreationalorientedbusinessIfeeltheexistingbuildingwhichisinaverageconditionhasminimalifanycontributoryvaluetothesubjectpropertyinlieuofitsHighestAndBestUseThereforetheanalysishereinisdoneonanAsIsAsImprovedbasisandisanalyzedasvacantlandavailablefordevelopmentandincludestheexistingbuildingwhichwillmostlikelybedemolishedbythedeveloperpurchaserCONCLUSIONSALESCOMPARISONAPPROACHTOVALUEThesubjectpropertywascompareddirectlytotwelveComarleSalesInthefinalanalysisComparableSales6911and12areconsideredmostlikethesubjectandweregiventhemostweightThesefourComparableSalesweredirectlycomparedtothesubjectpropertytoestimatethesubjectmarketvaluebytheSalesComparisonApproachSeegridonthepreviouspagefordetailofadjustmentsthatweremadeTIMEADJUSTMENTANALYSISBasedonananalysisofthecomparablesalesanupwardtimeadjustmentwasdeemedappropriateBasedonmyanalysisa3permonthor36annualupwardtimeadjustmentwasdeemedappropriateandwasmadetothecomparablesalesThetimeadjustmentanalysisisasfollowsSale2658490Sale6384596Sale7696390Sale8695490Sale910211098Sale1110501299Sale12105010100Sale6consideredoutofrangeandnotanalyzedSale278AverageSF683SFSale91112AverageSF1040SFdifferenceavgSFSale278vsISFSale913341AverageTimePeriodSales278vsSale9119years8monthsor116months341dividedby116months294permonth294permonthx12months3528annuallyupwardtimeadjustmentSay36upwardannualtimeadjustmentor3permonth
46LocationThesubjectproperlyhasaveryproximatelocationwithrespecttotheongoingdevelopmentoftheAmericasRiverProjectThesubjectpropertyhasasuperiorlocationtoComparableSale6andthereforeanupward25adjustmentwasdeemedappropriateIfeelthesubjectpropertyhasasimilarlocationtoComparableSales911and12andnolocationadjustmentwasdeemedappropriateSizeAdjustmentThesubjectpropertyconsistsofanestimated461acresor200637SFmoreorlessandisconsideredtobeinthesamerangeofsizeasComparableSales6911and12NosizeadjustmentwasdeemedappropriateinlieuofthesubjectlocationandanticipateduseTypicallyalargerparcelwillbringalessorpricebutinthiscaseIfeelthatthesubjectparcelsizeenhancesthevalueasaresultofthesubjectpropertybeingsuitableforasignificantcommercialdevelopmentThereforenosizeadjustmentwasdeemedappropriateandnosizeadjustmentwasmadetothesubjectorcomparablesalesasaresultThesubjectisanalyzedasoneparcelZoninNozoningadjustmentwasmadesincethesubjectpropertyisinalocationknownastheIceHarborareaandcurrentlyzonedMHIModifiedHeavyIndustrialbutcouldbezonedcommercialrecreationalbytheCityofDubuqueIowafortheproposedusewhichisalsodeemedtheHighestandBestUseforthesubjectpropertyThereforenozoningadjustmentwasdeemedappropriatetothesubjectorthefourcomparablesalesdeemedmostlikethesubjectsincethezoningchangeiseminenttothesubjectandthecomparablesalesandthereforenozoningadjustmentwasdeemedappropriateTopographyThesubjectpropertyandallofthecomparablesalesarenearlylevelandsuitableforcommercialdevelopmentBasedonmyinspectiontherearenoknownphysicalrestraintswhichwouldinhibitthedevelopmentofacommercialbuildingonthesubjectpropertyorthecomparablesalesandthereforenotopographyadjustmentwasdeemedappropriateDevelopmentPotentialThesubjectpropertyhasaveryproximatecaptivelocationwithrespecttotheongoingAmericasRiverProjectDevelopmenttothesouthandeastandwouldbeconsideredaverygoodlocationwithrespecttocommercialorrecreationaldevelopmentpotentialInlieuoftheongoingdevelopmentintheIceHarborareaandwithrespecttothesubjectcaptivelocationtothisongoingdevelopmentthesubjecthasexcellentdevelopmentpotentialascomparedtoallfourcomparablesalesdeemedmostlikethesubjectComparableSales6911and12developmentpotentialwasconsideredattheirtimeofsaleInlieuofthisIfeela5upwarddevelopmentpotentialadjustmentisappropriatewithrespecttoallfourComparableSalesdeemedmostlikethesubjectpropertyComparableSales6911and12
47ReconciliationofSalesComparisonApproachToValueThesubjectandthefourComparableSalesdeemedmostlikethesubjectwerecompareddirectlytoestimateanadjustedsalepriceascomparedtothesubjectpropertyComparableSale6wasadjustedupward204fortimewhichprovidedforanadjustedsalepriceof462SFComparableSale9wasadjustedupward117fortimetoprovideforatimeadjustedsalepriceof1140JSFSale11wasadjustedupward75fortimetoprovideforatimeadjustedsalepriceof1SFComparableSale12wasadjustedupward45fortimeprovidingforatimeadjustedsalepriceof1097ISFAsaresultoftheanalysishereinComparableSale6isdeemedtohaveaninferiorIceHarborlocationandthereforea25upwardlocationadjustmentwasmadeNozoningparcelsizetopographyadjustmentwasdeemedappropriatewithrespecttothecomparisonofthesubjectpropertyandthefourComparableSalesconsideredmostlikethesubjectareexplainedpriorhereinThesubjectpropertyisconsideredtohavesuperiordevelopmentpotentialbasedontheongoingsignificantcommercialrecreationaldevelopmentinthesubjectimmediateneighborhoodandthereforeallfourComparableSalesthatweredeemedmostlikethesubjectwereadjustedupward5withrespecttodevelopmentpotentialAsIsAsImprovedThesubjectpropertywascompareddirectlytotwelvecommerciallandsalesconsideredtobesimilartothesubjectpropertyinmanywaysAllComparableSalesareneighborstothesubjectpropertyintheIceHarborareaInthefinalanalysisComparableSales8911and12wereconsideredmostlikethesubjectandwerecompareddirectlytothesubjectpropertyandtheadjustmentsaredisplayedingridformatonthepreviouspageAverynarrowrangeofvaluewasestimatedasaresultofanalysiswhichfurthertendstostrengthentheapproachComparableSale6waseliminatedwithregardtoweightintheFinalAnalysisasitisnotintheverynarrowrangeofestimatedMarketValuebasedontheadjustmentsmadeinthecomparisonThereforeinthefinalanalysisComparableSales911and12weregiventhemostweightAsaresultoftheanalysisanadjustedsalepricerangeof11521SFto1197SFwasestimatedAmedianof1175SFwasestimatedAmeanof11781SFwasestimatedasaresultoftheanalysisIntheFinalAnalysisComparableSales911and12wereconsideredmostlikethesubjectandweregiventhemostweightasthebestevidenceofMarketValueofthesubjectproperty
48AsIsAsImprovedcontinuedTheanalysishereinisbasedontheAsIsAsImprovedanalysisofthesubjectpropertyIthasbeendeterminedthattheHighestandBestUseofthesubjectpropertyisforcommercialrecreationaldevelopmentofwhichwouldentailthedemolitionoftheexistingmanufacturingbuildingIfeelbasedonthecomparablesaleshereinparticularlyComparableSale12hereinwhichdidhaveolderexistingstoragedistributionIceHouseBuildingwhichwaspartofthesalethatitisappropriatetoincludetheexistingimprovementsaspartofthesubjectpropertythroughouttheanalysishereinTheimprovementsaredeemedtohaveminimalifanycontributoryvaluetothesubjectpropertyasawholeinlieuoftheHighestandBestUseAnalysisThereforebasedontheanalysishereinIestimatethesubjectpropertyhasapresentMarketValueof1200SFasfollows200637SFx1200SF2407644SAY2407500TWOMILLIONFOURHUNDREDSEVENTHOUSANDFIVEHUNDREDDOLLARS
49RECONCILIATIONCorrelationofFinalValueEstimateCostApproachNOTANALYZEDSalesComparisonApproachtoValue2407500AsIsAsImprovedIncomeApproachtoValue1321500TheCostApproachwasnotanalyzedhereininlieuofsignificantphysicaldepreciationandexternalobsolescenceTheIncomeApproachwasanalyzedhereinbasedonthecurrentimprovementwhichisamanufacturingfacilityTheSalesComparisonApproachwasanalyzedhereinandwasgivenalltheweightasthebestevidenceoftheMarketValueofthesubjectpropertyTherewasgoodreliabledataavailableforthisanalysisThesubjectpropertyisimprovedwitha44440ISFmanufacturingbuildingThesubjectbuildinghasgoodutilityandisinaverageoverallconditionConsideringtheproximatelocationofthesubjectpropertywithrespecttotheongoingdevelopmentoftheAmericasRiverProjectandtheexistingportsidebuildinggamblingboatoperationandtheanticipatedcontinuedcommercialrecreationaldevelopmentintheIceHarborareaIfeeltheexistingimprovementsbasedontheHighestandBestUseAnalysishereinareaninterimuseAsexemplifiedbytheestimatedmarketvalueofthesubjectpropertybytheIncomeApproachwhichismorethan1000000lessthantheestimatedmarketvalueofthesubjectlandAsIsAsImprovedIfeelthisfurthersupportsthebasisoftheanalysishereinthatthecurrentuseisaninterimuseandnotreflectiveoftheHighestandBestUseofthesubjectpropertyandratheranalternativeuseforcommercialrecreationaldevelopmentastheHighestandBestUseofthesubjectpropertyIntheSalesComparisonApproachAnalysisthesubjectpropertywascompareddirectlytotwelvelandsalesintheIceHarborareaBasedonmyHighestandBestUseanalysisandtheSalesComparisonApproachanalysisofthesubjectpropertyconsideringtheanalysishereinispreparedonanAsIsAsImprovedbasiswhichincludestheexistingmanufacturingbuildingwhichisdeemedtohaveminimalifanycontributoryvaluetothesubjectpropertyasawholeIestimatethesubjecthasapresentAsIsAsImprovedMarketValueof12OOISFbasedonthelandparcelsizeof200637ISFor24075001200SFx200637SF2407644SAY2407500TWOMILLIONFOURIUNDREDSEVENTHOUSANDFIVEHUNDREDDOLLARSTHOMASPtANE
50CERTIFICATIONIcertifythattothebestofmyknowledgeandbeliefThestatementsoffactcontainedinthisreportaretrueandcorrectThereportedanalysesopinionsandconclusionsarelimitedonlybythereportedassumptionsandlimitingconditionsandaremypersonalunbiasedprofessionalanalysesopinionsandconclusionsIhavenopresentorprospectiveinterestinthepropertythatisthesubjectofthisreportandIhavenopersonalinterestorbiaswithrespecttothepartiesinvolvedTheAppraisalassignmentwasnotbasedonarequestedminimumvaluationaspecificvaluationortheapprovalofaloanMyanalysesopinionsandconclusionsweredevelopedandthisreporthasbeenpreparedinconformitywiththeUniformStandardsofProfessionalPracticeoftheAppraisalFoundationandtheCodeofProfessionalEthicsandtheStandardsofProfessionalPracticeoftheAppraisalInstituteTheuseofthisreportissubjecttotherequirementsoftheAppraisalInstituterelatingtoreviewbyitsdulyauthorizedrepresentativesAsofthedateofthisreportIhavecompletedtherequirementsoftheAppraisalInstituterelatingtoreviewbyitsdulyauthorizedrepresentativesIhavemadeapersonalinspectionofthepropertythatisthesubjectofthisreportNosignificantprofessionalassistancewasprovidedtothepersonsigningthisreportalsocertifythatitismyopinionthattheAsIsAsImprovedMarketValueofthesubjectpropertyasofFebruary222002isasfollows2407500TWOMILLIONFOURHUNDREDSEVENTHOUSANDFIVEHUNDREDDOLLARSKANEAPPRAISALANDREALESTATEINCTHOMASPKANE
51GENERALUNDERLYINGASSUMPTIONSLegalMattersThelegaldescriptionusedinthisreportisassumedtobecorrectbutitmaynotnecessarilyhavebeenconfirmedbysurveyNoresponsibilityisassumedinconnectionwithasurveyorforencroachmentsoroverlappingorotherdiscrepanciesthatmightberevealedtherebyAnysketchesincludedinthereportareonlyforthepurposeofaidingthereaderinvisualizingthepropertyandarenotnecessarilyaresultofasurveyNoresponsibilityisassumedforanopinionoflegalnaturesuchastoownershipoftheproperlyorconditionoftitleTheappraiserassumesthetitletothepropertytobemarketablethatunlessstatedtothecontrarythepropertyisappraisedasanunencumberedfeewhichisnotusedinviolationofacceptableordinancesstatutesorothergovernmentalregulationsUnapparentConditionsTheappraiserassumesthattherearenohiddenorunapparentconditionsofthepropertysubsoilorstructureswhichwouldrenderitmoreorlessvaluablethanotherwisecomparablepropertyTheappraiserisnotanexpertindeterminingthepresenceorabsenceofhazardoussubstanceincludingallhazardousortoxicmaterialswastepollutantsorcontaminantsincludingbutnotlimitedtoasbestosPCBUFFIorotherrawmaterialsorchemicalsusedinconstructionorotherwisepresentonthepropertyTheappraiserassumesnoresponsibilityforthestudiesoranalysiswhichwouldberequiredtoconcludethepresenceofsuchsubstancesTheclientisurgedtoretainanexpertinthisfieldifdesiredThevalueestimateisbasedontheassumptionthatthesubjectpropertyisnotsoaffected
52GENERALUNDERLYINGASSUMPTIONScontinuedInformationandDataInformationestimatesandopinionsfurnishedtotheappraiserandcontainedinthereportwereobtainedfromsourcesconsideredreliableandbelievedtobetrueandcorrectHowevernoresponsibilityforaccuracyofsuchitemsfurnishedtheappraisercanbeassumedbytheappraiserAllmortgagesliensencumbrancesandservitudeshavebeendisregardedunlesssospecifiedwithintheappraisalreportThesubjectpropertyisappraisedasthoughunderresponsibleownershipandcompetentmanagementZoningandLicensesItisassumedthatallapplicablezoninganduseregulationsandrestrictionshavebeencompliedwithunlessanonconformingusehasbeenstateddefinedandconsideredinthevaluationItisassumedthatthesubjectpropertycomplieswithallapplicablefederalstateandlocalenvironmentalregulationsandlawsunlessnoncomplianceisstateddefinedandconsideredinthevaluationItisassumedthattheinformationrelatingtothelocationoforexistenceofpublicutilitiesthathasbeenobtainedthroughaverbalinquiryfromtheappropriateutilityauthorityorhasbeenascertainedfromvisualevidenceiscorrectNowarrantyhasbeenmaderegardingtheexactlocationorcapacitiesofpublicutilitysystemsItisassumedthatalllicensesconsentsorotherlegislativeoradministrativeauthorityfromlocalstateornationalgovernmentalorprivateentityororganizationhavebeenorcanbeobtainedorrenewedforanyuseonwhichthevalueestimatecontainedinthevaluationreportisbased
53GENERALLIMITINGCONDITIONSTheappraiserwillnotberequiredtogivetestimonyorappearincoinduetopreparingtheappraisalwithreferencetothesubjectpropertyinquestionunlesspriorarrangementshavebeenmadePossessionofthereportdoesnotcarrywithittherightofpublicationOutofcontextquotingfromorpartialreprintingofthisappraisalreportisnotauthorizedFurtherneitherallnoranypartofthisappraisalreportshallbedisseminatedtothegeneralpublicbytheuseofmediaforpubliccommunicationwithoutthepriorwrittenconsentoftheappraisersigningtheappraisalreportTheauthenticcopiesofthisreportareboundwithabluecoverandbluebackAnycopythatdoesnothavetheoriginalsignatureoftheappraiserisunauthorizedandmayhavebeenalteredandisconsideredinvalidDisclosureofthecontentsofthisreportisgovernedbytheByLawsandRegulationsoftheAppraisalInstituteNeitherallnoranypartofthecontentsofthisreportespeciallyanyconclusionsastovaluetheidentityoftheappraiserorthefirmwithwhichheisconnectedoranyreferencetotheAppraisalInstituteortotheappraisaldesignationsshallbedisseminatedtothepublicthroughadvertisingmediapublicrelationsmedianewsmediasalesmediaoranyotherpublicmeansofcommunicationwithoutthepriorwrittenconsentandapprovaloftheauthorThedistributionofthetotalvaluationinthisreportbetweenlandandimprovementsisapplicableonlyasapartofthewholepropertyThelandvalueortheseparatevalueoftheimprovementsmustnotbeusedinconjunctionwithanyotherappraisalorestimateandisinvalidifsousedAnappraisalrelatedtoanestateinlandthatislessthanthewholefeesimpleestateappliesonlytothefractionalinterestinvolvedThevalueofthisfractionalinterestplusthevalueofallotherfractionalinterestsmayormaynotequalthevalueoftheentirefeesimpleestateconsideredasawholeTheappraisalreportrelatedtoageographicalportionofalargerparcelisappliedonlytosuchgeographicalportionandshouldnotbeconsideredasapplyingwithequalvaliditytootherportionsofthelargerparcelortractThevalueforsuchgeographicalportionsplusthevalueofallothergeographicalportionsmayormaynotequalthevalueoftheentireparcelortractconsideredasanentityIfthisappraisalisusedformortgageloanpurposestheappraiserinvitesattentiontothefactthat1Theequitycashrequirementsofthesponsorhavenotbeenanalyzed2Theloanratiohasnotbeensuggestedand3Theamortizationmethodandtermhavenotbeensuggested
54GENERALLIMITINGCONDITIONScontinuedThefunctionofthisreportisnotforuseinconjunctionwithasyndicationofrealpropertyThisreportcannotbeusedforsaidpurposesandthereforeanyuseofthisreportrelatingtosyndicationactivitiesisstrictlyprohibitedandunauthorizedIfsuchanunauthorizeduseofthisreporttakesplaceitisunderstoodandagreedthatThomasPKanehasnoliabilitytotheclientandorthirdpartiesAcceptanceofandoruseofthisappraisalreportconstitutesacceptanceoftheforegoingGeneralUnderlyingAssumptionsandGeneralLimitingConditionsTheappraisersdutiespursuanttotheemploymenttomaketheappraisalarecompleteupondeliveryandacceptanceoftheappraisalreportHoweveranycorrectionsorerrorsshouldbecalledtotheattentionoftheappraiserwithin60daysofthedeliveryofthereportTheAmericanswithDisabilitiesActADAbecameeffectiveJanuary261992TheappraiserhasnotmadeaspecificcompliancesurveyandanalysisofthispropertytodeterminewhetherornotitisinconformitywiththevariousdetailedrequirementsoftheADAItispossiblethatacompliancesurveyofthepropertytogetherwithadetailedanalysisoftherequirementsoftheADAcouldrevealthatthepropertyisnotincompliancewithoneormoreoftherequirementsoftheActIfsothisfactcouldhaveanegativeeffectuponthevalueofthepropertySincetheappraiserhasnodirectevidencerelatingtothisissuepossiblenoncompliancewiththerequirementsofADAinestimatingthevalueofthepropertyhasnotbeenconsideredThesubjectpropertyhascontinuouslybeenutilizedasanindustrialsiteformanymanyyearsTomyknowledgenoPhaseIorPhaseIIEnvironmentalStudyhasbeenpreparedwithrespecttothesubjectpropertyTheanalysishereinispreparedonanasisbasisandthevalueconclusionsarebasedonthesubjectpropertyhavingnosubsoilorenvironmentalhazardorcontaminationofanykindTheclientisurgedtoretainanenvironmentalexperttoacquireanopinionwithrespecttothepotentialorexistenceofanyenvironmentalhazardwithrespecttothesubjectpropertyorbuildingTheSalesComparisonApproachAnalysishereinisbasedonanAsIsAsImprovedanalysiswhichincludestheexistingmanufacturingbuildingwhichIfeelwouldbepartofanysalewithrespecttothesubjectpropertyIfeelthedeveloperpurchaserwouldpurchasethesubjectpropertyforthelandandwouldacquiretheexistingimprovementsofwhichwouldmostlikelybedemolishedaspartofthedevelopmentprocess
55ADDENDA
LEASECOMPARABLEADDRESSBUILDINGBUILDINGLEASESFTYPESIZETYPE1SPIEGELWAREHOUSING18625KERPERBOULEVARDDUBUQUEIOWADISTRIBUTIONVARIABLEGROSS3002WHALENDISTRIBUTION2400KERPERBOULEVARDDUBUQUEIOWADISTRIBUTIONVARIABLEGROSS3003PRECISIONTOOL2820ELMSTREETDUBUQUEIOWAINDUSTRIALBUILDING10000ISFGROSS3004810142NSTREETWESTROCKISLANDILLINOISWAREHOUSE85000ISFGROSS26252500RIVERDRIVEMANUFACTURINGMOLINEILLINOISWAREHOUSE25000SFGROSS2706525EAST1STREETMILANILLINOISWAREHOUSE26000SFNET2757791042STREETWESTROCKISLANDILLINOISWAREHOUSE76800lSFGROSS2658361hSTREETAND5AVENUEEASTMOLINEILLINOISINDUSTRIAL110000ISFTRIPLE248I93863WESTRIVERDRIVEIIDAVENPORTIOWAINDUSTRIAL47580lSFGROSS250102459KERPERBOULEVARDDUBUQUEIOWASHOPIWAREHOUSEJOFFICE18000SFTRIPLE267111202EASTSUMMITMAQUOKETAIOWASHOPlWAREHOUSE40000ISFTRIPLE275
ComparableCommercialRental1Address18625EnterpriseDrivePeostaIowaTypeofPropertyDistributionlWarehouseNeighborhoodLocationLeaseTypeAnnualRentLeaseTermUtilitiesPaidByLesseeLessorGrossMonthtoMonthSpiegelWarehouseLeasedAreaCommonAreasParkingRentISF300ConditionInspectedB1dgEstimatedEffectiveAgeVerifiedRemarksTheareaisheatedandhasasprinklersystemRef245
ComparableCommercialRental2Address2400KerperBoulevardTypeofPropertyWarehouseFacilityNeighborhoodlLocationLeaseTypeVariableAnnualRentLeaseTermMonthtoMonthUtilitiesPaidByLesseeLessorLeasedArea200000SFCommonAreasParkingRentSF300ConditionInspectedBldgEstimatedEffectiveAgeVerifiedRemarksTheareaisheatedandhasasprinklersystemthroughoutRef246
NoPhotoAvailableComparableCommercialRental3Address2820ElmStreetDubuqueIowaTypeofPropertyPrecisionToolNeighborhoodLocationLeaseTypeGrossLeaseAnnualRentLeaseTermUtilitiesPaidByLesseeLessorLeasedAreaConunonAreasParkingRentSF300ConditionInspectedB1dgJEstimatedEffectiveAgeVerifiedRemarksRef247
NoPhotoAvailableComparableCommercialRental4AddressTypeofPropertyNeighborhoodLocationLeaseTypeAnnualRentLeaseTermUtilitiesPaidByLesseeLessor810142dStreetWestRockIslandILWarehouse2227505YearsQuadCityConsolidationDistributionIncOakCliffPartnershipLeasedArea435600SF85000SFCommonAreasParkingRentSF262ConditionAverageInspected21094B1dgEstimatedEffectiveAge1980VerifiedLessorRemarksThisispartofa120000SFonestorymetalwarehouselocatedintheRockIslandIndustrialParkTheownerpaysbaseyear1993taxesandinsuranceandstructuralmaintenanceThetenanthasa5yearoptiontorenewhasanoptiontorenttheadjacent35000SF@255SFandhastheoptiontorentthe120000SFbuildingnextdoorfor255SFREF197
NoPhotoAvailableComparableCommercialRental5AddressTypeofProperty2500RiverDriveMolineILManufacturingWarehouseNeighborhoodLocationLeaseTypeAnnualRentLeaseTermUtilitiesPaidBy421990LesseeLessorLeasedAreaCommonAreasParkingRent1SFConditionB1dgEstimatedEffectiveAgeTwinBridgesTruckCityIncHendricksCommercialProperties185040SF228AverageInspectedl22719519131972VerifiedLessorRemarksThisisspaceintheformerAmericanAirFiltermanufacturingplantThebuildingisfullysprinkleredandistiltupconcreteandconcreteblockconstructionwithceilingheightsrangingfrom14to21Bayspacingis20x40and25x50Thereare11truckdockdoorsand3overheaddoorsatgradeHeatingisradiantgasunitsThereisarentescalationof2or60ofCPInottoexceed4811196ItisanetleasewiththetenantpayingashareofCAMtaxesinsuranceandmaintenanceThereisone5yearoptionREF198
NoPhotoAvailableComparableCommercialRental6AddressTypeofPropertyNeighborhoodLocationLeaseTypeAnnualRentLeaseTermUtilitiesPaidByLesseeLessorLeasedAreaCommonAreasParkingRentSFConditionB1dgEstimatedEffectiveAge525EastFirstStreetMilanILWarehouse770005YearsGeraldVoilesPellaWindowCoIncBiStatePackingInc28000SF275Average1968Inspected42495VerifiedBrokerRemarksThisispartofa72000concreteblockwarehousewhichisalsooccupiedbyaPellaWindowStoreandincludes5000SFoffinishedofficespaceThewarehousehas19ceilingsandissprinkleredThereare4dockdoorsandrailisavailableThetenantpaysaproratashareoftaxesinsuranceutilitiesandcommonareamaintenanceTheownerisresponsibleforstructuralmaintenanceandHVACreplacementOne5yearoptionatanegotiatedrentREF167
NoPhotoAvailableComparableCommercialRental7AddressTypeofPropertyNeighborhoodLocationLeaseTypeAnnualRentLeaseTermUtilitiesPaidByLesseeLessor791042dStreetWestRockIslandILWarehouseLightIndustrial1year203520DaycoProductsIncMutualLifeInsuranceCoofNewYorkLeasedArea76800SFCommonAreasParkingRentSF265ConditionGoodInspected030294B1dglEstimatedEffectiveAge1979VerifiedLessorRemarksThisisasteelframemetalcladwarehousewithconcreteblocklowerwallslocatedintheRockIslandIndustrialParkTheceilingheightsis20feetattheeavesandthebuildingisfullysprinkleredGasspaceheat6dockdoors6600SFoffinishedofficeareaOwnerpaysstructuralmaintenanceandfireandcasualtyinsurance1YearrenewaloptionatmarketrentREF192
NoPhotoAvailableComparableCommercialRental8AddressTypeofPropertyNeighborhoodLocationLeaseTypeAnnualRentLeaseTermUtilitiesPaidByLesseeLessorLeasedAreaCommonAreasParkingRentSFConditionB1dgEstimatedEffectiveAgeSWQ36thStreet5ttAveEastMolineILIndustrial27300015YearsSiegcompanyVantageGroup110000SF2481993Inspected993VerifiedLessorRemarksThisisametalframemetalcladindustrialbuildingwith9000SFofofficesTheleaseisnettotheownerswiththetenantpayingallexpensesexceptroofrepairtheroofhasa20yearwarrantyTherentincreasesinyears610to314400286SFandyears1115to360000327SFTherearetwo5yearrenewaloptionsat396000and435600yearREF186
ComparableCommercialRental9AddressTypeofPropertyNeigborhoodLocationLeaseTypeAnnualRentLeaseTermUtilitiesPaidByLesseeLessorLeasedAreaCommonAreasParkingRentSFConditionB1dgEstimatedEffectiveAge3863WestRiverDriveDavenportIAIndustrial6Years118950RollNHoldIncHendricksPropertiesInc250Inspectedl291VerifiedLessorRemarksAportionoftheformerLongManufacturingCompanyplantlocatedinextremesouthwestDavenprotThebuildingissteelframemetalcladconstructionwith14and22ceilingheightsFullysprinkleredbutnofinishedofficeareaItisagrossleasewiththeownerpayingtaxesinsuranceandstructuralmaintenanceOne4yearoptionforrenewalREF187
NoPhotoAvailableComparableCommercialRental10AddressTypeofPropertyNeighborhoodLocationLeaseTypeAnnualRentLeaseTermUtilitiesPaidByLesseeLessor2459KERPERBOULEVARDSHOPWAREHOUSEOFFICEINDUSTRIALPARKTRIPLENET480005YEARSTENANTPREMIERBEVERAGESOHANSAHOTALeasedArea18000SFCommonAreasNONEParkingOFFSTREET3035SPACESRentSF267ConditionAVERAGEInspectedll399B1dgEstimatedEffectiveAgeVerifiedPUBLICRECORDRemarksPropertyisimprovedwithsteelinsulatedshopwarehousebuildinglocatedonKerperBoulevardinheartofIndustrialIslandTopographyisnearlylevelandaccessandvisibilityisgoodHeavyTrafficareaandgoodproximitytohighwaysRef243
NoPhotoAvailableComparableCommercialRental11AddressTypeofPropertyNeighborhoodLocationLeaseTypeAnnualRentLeaseTermUtilitiesPaidByLesseeLessor1202ESummitMaquoketaIowaShopWarehouseIndustrialParkTripleNet1100003yearTenantPacificCoastFeatherPillowTomJulieKaneLeasedArea40000SFCommonAreasNoneParkingOffStreetRentSF275ConditionInspectedB1dgEstimatedEffectiveAgeVerifiedRemarksSubjectimprovedwithsteelinsulatedbuildinglocatedinindustrialparkTopographynearlylevelandsubjectpropertyhasgoodaccessandvisibilitytoSummitCloseproximitytohighwaysRef244
COMPARABLELANDSALESADDRESSILOCATIONSALESALEPARCELZONING1SFDATEPRICESIZESUBJECTADAMSCOMPANY100EAST4hSTREETICEHARBORDUBUQUEIOWANIANIA2006371SFMHINlA1ICEHARBORBELLSTREETDUBUQUEIOWA111619618057387512SFHI2062ICEHARBOREAST4hANDBELLSTREETDUBUQUEIOWA4169020498031152SFHI6583ICEHARBOREAST6hSTREETMARKETPLACEMHIDUBUQUEIOWA118974000027680SFROD1454ICEHARBORBELL6hSTREETDUBUQUEIOWA81696215000109205SFHI1975ICEHARBORBELLEAST6hSTREETMHIDUBUQUEIOWA715196325000109205SFROD2986ICEHARBOR98EAST3rdSTREETDUBUQUEIOWA51796120000031285818ECR3847ICEHARBOREAST3dSTREETDUBUQUEIOWA32890950000136531SFHI6968ICEHARBOREAST3dSTREETDUBUQUEIOWA42190800000115086SFHI6959ICEHARBORLOT2RIVERWALK1ADDDUBUQUEIOWA10119982150500210518lSFHI102110ICEHARBORFLOODWALL4hSTREETMHIIDUBUQUEIOWA817199238400118701SFHI20111ICEHARBORLOTS234ADAMSC03ndADDDUBUQUEIOWA121301991056000100580SFCR105012ICEHARBORPLASTICCENTERDUBUQUEIOWA10191005900000562000ISFHI1050
NoPhotoAvailableComparableLandSale1AddressBellStreetDubuquelaLegalDescriptionLot3AdamsCompany2dAdditionTypeofPropertyTownshipSalePrice180573InstrumentContractDateofSale11696Record62696AssessorParcelGranteeHarborPlaceDevelopmentCorporationGrantorTheAdamsCompanyDevelopmentPotentialLandArea87512SFor201AcresPricelSF206PricePerAcre89837ZoningHITopographyAtstreetgradefromBellStreetnearlylevelVerifiedAgentPatFriedmanTerms45000DnUtilitiesAllcityDateInspected817199RemarksThispurchaseisarectangularparcellocatedalongthewestsideofBellStreetinDubuquelaThetopographyhasaminimalslopeThebuyeristheownerofanadjacentantiquemallpropertytotheNorthwestoftheparcelThepurchasepricewasestablishedasanoptionina1986purchaseoftheadjacentproperty95018610101186Thebalanceplus10interestisduewithinoneyearRef326
NoPhotoAvailableComparableLandSale2AddressEast4tandBellStreetsDubuqueIowaLegalDescriptionLots17Lot1ofLot8andLot1AblockkBoothsAddTypeofPropertyTownshipSalePrice20498016DateofSale411690AssessorParcelGranteeCityofDubuqueIowaGrantorFischerInvestmentInstrumentQuitClaimDeedRecord894890DevelopementPotentialLandArea31152SqFtPriceSF658PricePerAcreZoningHIHeavyIndustrialDistrictTopographyAtstreetgradefromEast3rdStreetnearlylevelVerifiedEdNicholsonUtilitiesAllCityTermsCashDateInspected698898RemarksThispurchaseiscomposedofarectangulargroupofparcelslocatedalongEast4andBellStreetinDubuqueIowaThetopographyhasaminimalslopeTheCitypurchasedthelandforcommercialrecreationaldevelopmentrelatedtoriverboatgamblingThebuyeragreedtoconstructandmaintainarailspurlinetoservetheFischercoldstoragebuildinglocatedEastofBellStreetTheDubuqueCasinoBellIncagreedtopay50ofthecostfortherelocationofthespurlineuptoamaximumof125000Ref173
NoPhotoAvailableComparableLandSale3AddressEast6handMarketStreetsDubuquelaLegalDescriptionLots123738Block21AndLots2738Block26DubuqueHarborImprovementCompanysAdditionTypeofPropertyTownshipSalePrice40000InstrumentWarrantyDeedDateofSale18197Record65297AssessorParcelGranteeHarborCommunityInvestmentLCGrantorRobertJAndRuthAKehlDevelopmentPotentialLandArea27680SFor635AcresPriceSF145PricePerAcre62992ZoningMHIlRODTopographyAtstreetgradefromEast6handMarketStreetsnearlylevelVerifiedRonWhiteTermsUtilitiesAllcityDateInspectedRemarksThispurchaseiscomposedofthreerectangulargroupsofparcelslocatedalongEast6handMarketStreetsDubuquelaThetopographyhasaminimalslopeThebuyeristheownerofthemostsignificantportionoftheriverboatgamblingrelatedpropertytothesouthoftheseparcelsRef327
NoPhotoAvailableComparableLandSale4AddressEast6handBellStreetsDubuquelaLegalDescriptionLot2AdamsCompany2dAdditionTypeofPropertyTownshipSalePrice215000InstrumentWarrantyDeedDateofSale816196Record945596AssessorParcelGranteeHarborPlaceDevelopmentCorporationGrantorTheAdamsCompanyDevelopmentPotentialLandArea109205SFor251AcresPriceSF197PricePerAcre85657ZoningHITopographyAtstreetgradefromEast6handBellStreetsnearlylevelVerifiedAgentPatriciaFriedmanTermsCashUtilitiesAllcityDateInspected8117199RemarksThispurchaseisarectangularparcellocatedatthenorthwestcornerofEast6mandBellStreetsDubuquelaThetopographyhasaminimalslopeThebuyeristheownerofanadjacentantiquemallpropertytothisparcelThispurchasepricewasestablishedasanopyionina1986purchaseoftheadjacentproperty950186101186Ref328
NoPhotoAvailableAddressLegalDescriptionTypeofPropertyTownshipComparableLandSale5East6andBellStreetsDubuquelaLot2AdamsCompany2dAdditionSalePrice325000InstrumentNotRecordedDateofSale715196RecordNAAssessorParcelGranteeHarborCommunityInvestmentLCGrantorHarborPlcaeDevelopmentCorporationDevelopmentPotentialLandArea109205SFor251AcresPricelSF298PricePerAcre129482ZoningMHIIRODModifiedHeavyIndRedevelopmentOverlayDistrictTopographyAtstreetgradefromEast6andBellStreetsnearlylevelVerifiedAgentParticiaFriedmanTermsCashUtilitiesAllcityDateInspected81799RemarksThispurchaseisarectangularparcellocatedatthenorthwestcornerofEast6andBellStreetsinDubuquelaThetopographyhasaminimalslopeThebuyeristheownerofthemostsignificantportionoftheriverboatgamblingrelatedpropertytothesouthoftheseparcelsRef321
NoPhotoAvailableComparableLandSale6Address98East4StreetDubuquelaLegalDescriptionLot1andLot2ofLot4AdamsCo1sAdditionandLot3AdamsCompany2dadditionTypeofPropertyTownshipSalePrice1200000InstrumentContractDateofSale57196Record554296AssessorParcelGranteeHarborCommunityInvestmentLCGrantorHarborPlaceDevelopmentCorporationDevelopmentPotentialLandArea312858Sfor718AcresPricelSF384PricePerAcre167131ZoningCRCSlMHIRODTopographyAtStreetgradefroEast4andBellStreetsnearlylevelVerifiedAgentPatriciaFriedmanRonWhiteTerms120000DnUtilitiesAllcityDateInspected811799RemarksThispurchaseistworectangularunimprovedparcelslocatedalongthewestsideofBellStreetandanimprovedparcellocatedontheSouthsideof4streetinDubuquelaThetopographyhasaminimalslopeThebuyeristheownerofthemostsignificantportionoftheriverboatgamblingrelatedpropertytotheSouthoftheseparcelsThebuildingisnotconsideredbythebuyertohavecontributedtothevalueofthisacquisition120000Dn1080000balancemonthlypayments85Interestinyears16primelor85inyears710whicheverisgreatertobepaidinfullonMay12006Ref322
NoPhotoAvailableComparableLandSale7AddressEast3rdStreetDubuqueIowaLegalDescriptionLengthySeeAppraiserFileTypeofPropertyTownshipSalePrice950000InstrumentQuitClaimDeedDateofSale328190Record696290AssessorParcelGranteeCityofDubuqueGrantorMoloOilCompanyMoloSandGravelCompanyDevelopementPotentialLandArea136531SqFtPriceSF696PricePerAcreZoningHIHeavyIndustrialDistrictTopographyAtstreetgradefromEast3rdStreetnearlylevelVerifiedRobertEMoloUtilitiesAllCityTermsCashDateInspected3908198RemarksThispurchaseiscomposedofthreerectangularandtwoirregulargroupsofparcelslocatedalongEast3rdStreetinDubuqueIowaFourofthefivewerepurchasedinfeeandonewasthepurchaseoftheLeaseholdEstateAtgradeaccessisavailablefromEast3rdStreetThetopographyhasaminimalslopeTheCitypurchasedthelandforcommercialrecreationaldevelopmentrelatedtoriverboatgamblingThebuyerassumedalldemolitioncostsforwhatthesellerhadnotremovedbyAugust11990ThebuyerfurtheragreedtoassumeallrisksandresponsibilitiesandtodefendindemnifyandholdthesellerharmlesswithregardtogroundandbelowgroundhazardsRef172
NoPhotoAvailableComparableLandSale8AddressEast3dStreetDubuquelaLegalDescriptionLengthySeeWarrantyDeedsTypeofPropertyTownshipSalePrice800000InstrumentWarrantyDeedDateofSale4290Record78890788590788690AssessorParcelGranteeCityofDubuquelaGrantorDubuqueBargeFleetingServiceCoIncNewtDevelopmentPotentialLandArea115086SFOr346AcresPriceSF695PricePerAcre231214ZoningHITopographyAtstreetgradefromEast3dStreetnearlylevelVerifiedGaryNewtTermsCashUtilitiesAllcityDateInspected811799RemarksThispurchaseiscomposedof3rectangulargroupsofparcelslocatedalongE3dStreetinDubuquelaTwooftheThreewerepurchasedinfeeandonewaspurchasedoftheLeaseholdEstateOneofthelegaldescriptionsintherecordedleasematchestheoneonWarrantyDeed788590andthepartiesinterviewedhavenotbeenabletoclarifythisapparantconfusionAtgradeaccessisavailablefromEast3dStreetThetopographyhasaminimalslopeTheCitypurchasedthelandforcommerciUrecreationaldevelopmentrelatedtoriverboatgamblingThebuyerassumedalldemolitioncostsforwhatthesellerhadnotremovedbyAugust11990ThebuyerfurtheragreedtoassumeallrisksandresponsibilitiesandtodefendindemnifyandholdthesellerharmlesswithregardtogroundandbelowgroundhazardsRef324
NoPhotoAvailableComparableLandSale9AddressLot2RiverWalkistAdditionDubuqueIceHarborLegalDescriptionLot2RiverWalk15tAdditionDubuqueIceharborTypeofPropertyFutureDubuqueRiverWalkPropertyTownshipSalePrice2150000InstrumentWarrantyDeedDateofSale1019198Record1645898AssessorParcell130153019GranteeCityofDubuqueGrantorPlasticCenterIncDevelopmentPotentialVerygoodLandArea210518SFor4832acresmlPricelSF1021PricePerAcreNAZoningHITopographyRiverFrontageVerifiedPublicRecordTermsCashUtilitiesAvailableDateInspected899RemarksThislandwaspurchasedbytheCityofDubuqueaspartofthefutureDubuqueRiverwalkTheparcelispredominatelythefloodwalltheleveeeastoffloodwalladjoingtheMississippiRiversharelineandextendingintotheRiverPartofthesalenegotionincludeda10wideorapproximately110000SFmaintenanceeasementtothewestsideofthisparcelSalepriceconsistsof587500cashandacharitablecontributionof1562500Ref330
NoPhotoAvailableComparableLandSale10AddressFloodwall@4thStreetDubuqueIALegalDescriptionLot2Lot3RiverWalk2dAdditionTownshipJulienSalePrice238400DateofSale10799AssessorParcell1301290071130129005GranteeCityofDubuqueGrantorAspermontCompanyInstrumentQuickClaimDeedRecord1667599DevelopmentPotentialLandArea94438SFapprox217acresmoreorlessPriceSF252PricePerAcreZoningMHIHITopographySlightlySlopingVerifiedGranteeTermsUtilitiesPublicAvailableDateInspectedRemarksSoldunderthreatofcondemnationHad2appraisalsandsettledonhighervalueParcelincludesFloodWallandextendsintotheMississippiRiverPurchasedforRiverWalkoverlookandamphitheaterRef517
NoPhotoAvailableComparableLandSale11AddressIceHarbor3rdStreetDubuqueIALegalDescriptionLenghtySeeCardsinAppraisersFileTownshipRiverfrontSalePrice1056000DateofSale123099InstrumentSpecialWarrantyDeedRecord1931699AssessorParce1113011000911301100101130110011GranteeDubuqueCountyHistoricalSocietyGrantorHarborCommunityInvestmentDevelopmentPotentialGoodLandArea231ACor100580SFPriceSF1050PricePerAcre457013ZoningRODCSCRPCRTopographyNearlyLevelVerifiedSellerTermsUtilitiesPublicDateInspectedRemarksThispropertyislocatedintheIceHarborareaPropertywasinspectedwithapavedasphaltparkinglotwhichencompassedthemajorityofthesiteRef520
NoPhotoAvailableComparableLandSale12AddressIceHarborPlasticCenterDubuqueIowaLegalDescriptionLengthySeeAppraisersFileTypeofPropertyVacantCommercialLandTownshipDubuqueSalePrice5900000InstrumentWarrantyDeedDateofSale10192000Record671900AssessorParcel1130131001113015300111301530021130153003113015300611301530091130153010and1130153018GranteeCityofDubuqueGrantorPlasticCenterIncDevelopmentPotentialVeryGoodStreetPavedAsphaltLandArea562060SFor12903acresPriceSF1050PricePerAcre457258ZoningMHIRODTopographyNearlyLevelVerifiedPublicRecordPreviousAppraisalTermsUtilitiesAllCityDateInspected942000RemarksThesubjectpropertyislocatedinDubuqueIceHarborareaThesubjectpropertyextendsfurthertothewesttoBellStreetand6tStreetTheCitypurchasedthelandforcommercialrecreationaldevelopmentrelatedtoriverboatgamblingThesubjectpropertyhasgoodaccessandvisibilityfromthesubjectstreetRef566
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DUBUQUECODEFBulkregulations13Sellservicecanvash81MaximumbuildingheightOnehun14Animalhoapitalclinic23Jdyedfifty150feet15Furnitureupholsterylrepair1816Businessservices29JGParkingrequirementsSeesection42ofthis17Bankssavingsandloansandcreditordinanceunions31ISignsSeesection43ofthisordinance18Vendinggamemachinesaleslservice19J343Reserved19Indoorrecreationfacilities3720Mailorderhouses23344MHIModifiedheavyindustrialdistrict21LumberyardslbuildingmaterialsAGeneralpurposeanddescriptionTheMHIsales19JModifiedHeavyIndustrialDistrictisinConstructionsuppliessalesandsertendedtoprovideappropriatelocationsfornce19mostheavyindustrialuseswhilealso2324Prlntingandpublishing32MovingJstoragefacilities33Jservingasabufferfortransitionalandredevelopingareasparticularlyalongthe25Fullservicecarwash8US611151freewaycorridorfromthose2627Autoservicecenters34JAutosalesandservices38mostintenseindustrialuseswhichbytheir28Autorepairlbodyshop35Jnaturetendtogeneratelevelsofsmokedustnoiseorodorsorhavevili29Trucksalesserviceandrepair39Jsuampactsthatrenderthemincompatiblewithvirtu30FarmimplementsalesservicesandreallyallotherlandusesForthisreasonthe31pair39Autopartslsupply7MHIModifiedHeavyIndustrialDismct32Iviobilehomesales40willbemappedonlyinareaswheretopes33Motorcyclesalesservice41graphicfeaturesoradjacentzoningdistricts34Boatsaleslservice40mitigatetheeffectsofthezoneuponnearby35Recreationvehiclesaleslservice38usesThisdistrictisalsodesignedtoaccom36Vehiclerental47modatetheexpansionofexistingusesand37Upholsteryshop42provideforinfiIIofvacantparcelsbutis38ParkingstructureNAnotgenerallyintendedtobeanexpandable39Contractorsshoplyard33districtotherthanthroughtheuseofa40Wholesalesalesdistributor29plannedunitdevelopmentasprovidedin41Freighttransferfacilities44thisordinance42Fuelandicedealers33BPrincipalpermittedusesThefollowinguses43Agriculturalsupplysales19shallbepermittedintheMHIDistrict44Coldstaragelockerplants151Railroadsandpublicorquasipublic45Packingandprocessingofmeatdairyorfoodproductsbutnottoincludeutilitiesincludingsubstations47slaughterhousesorstockyards3312Generaloffices473Medicalldentallah846Compoundingprocessingandpack4Personalservices14agingofchemicalproductsbutnotineludinghighlyflammableorexplosive5OffstreetparkinglotNIAJmaterials336Gasstation187Bakerywholesalecommercial1947Manufactureassemblyrepairorl8Indoorrestaurant20storageofelectricalandelectronicprod9Bartavern20J48uctscomponentsorequipment33Laboratoriesforresearchorengineer10Automatedgasstation18ing33111Servicestation21112Driveupautomatedbankteller849Warehouvingandstoragefacilities33SuppNo143722
34DUBU9UECODEandReauthorizationActof1986theEmergencyllanagementDirectorshallcertifywhetherornottheapplicanthassubmittedacurrentinventoryofextremelyhazardoussubstanceskeptorstoredonthepremisesIfanysuchextremelyhazardoussubstancesarekeptorstaredonthepremisestheapplicantshallalsopostinaconspicuousplaceonthepremisesanoticeindicatingadescriptionoftheextremelyhazardoussubstancesandthephysicalandhealthhazardspresentedbysuchsubstances2GraiaibargeterminalprovidedthatalAsiteplanshallbesubmittedandapprovedasprovidedisSection4ofthisOrdinanceandbTheparkinggrouprequirementscanbemet44ETemporaryUsesThefollowingusesshallbeaermittedastemporaryusesinthe1gHIDistrict1BatchplantslasphaltorconcretesFBulkRegulations11lfasimumBuildingHeigit150feetIGParkingRequirementsSeeSection42ofthisOrdinanceIHSignsSeeSection43ofthisOrdinanceIOtd2585152085Ord2390631990Ord2690331990Ord509016490Ord709011aid9490Ord4491152091Ordi39221I292Ord193i231593Ord4295s1739535SpecialPurposeDistricts351AGAgriculturalDistrict1tAIGeneraPurpose4ndDescriptionTheAGDistrictisintendedtoconservefarmlandforagriculturalpurposesandtoserveasaholdingzonetopreventtheprematuredevelopmentoflargelandacreagesandofrecentlyannexedlandforwhichthemostappropriatefutureusehasnotyetbeendeterminedInordertopromotethesepurposestheregulationsforthisDistrictallowaverylimitedrangeofusessothatthepresentdevelopmentcharacterofthelandmaybemaintainedandfuturedevelopmentoptionspreservedpendingcomprehensivestudyandanalysisoftheareaBPrinciaaPermittedUsesThefollowingusesshallbepermittedintheAGDistrict1Agriculturaluseincludingtheraisingoffieldcropsandlivestockhorticultureforestryanimalhusbandryandsimilarfarmingactivities2Railroadsandpublicorquasipublicutilitiesincludingsubstations3Noncommercialnursery4ReservedforfutureusesCAccessoryUsesThefollowingusesshallbepermittedasaccessoryusesasprpvidedinSection4ofthisOrdinance1Singlefamilydwellingprovideditislocatedonalotoften10acresormoreandisincidentalandsubordinatetoanactiveagriculturaluseitserves2BarbedwireFenceswhenusedforlivestockcontainmentf3Barnsshedsandsimilarstructures41SeasonalproducesalesofproductsraisedonsiteDConditionalUsesReservedforfutureuseiETemporaryGsesReservedforfutureuseiunpa263724
NIlTIONIFLOODINSURANCEPR06RAMFIRMFLOODINSURANCERATEMAPCITYOFDUBUQUEIOWADUBUQUECOUNTYPRNEL6OF1SEEMAPINDEXFORPANELSNOTPRINTEDPANELLOCATIONCOMMUNiTYPANELNUMBER1951800006BMAPREVISEDSEPTEMBER61989FederalEmergencyManagementAgencyLEGENDSPECIALfLODUIIALAROAREASINUNOATEUBYIUOYEARFLOIDZONkANnFrwllneJrlntlnmdxrrminJ20NEAERwnnnlehrnnmJrrrrminrd20NEAHFlnmlarvlhsnlIrnlIrrlluvllyrrxl1JInHFarIIneJdnllnrdrrrrminrd20NEABilnnlJrRlhofIIn1InruxllydnlnowvndnInrtrodIxunrnmrdxrrminWFnernltllunlInIlnndInrrelmlllrarlndexrminrdZONEA99InM1rvrmrnrdInmIpoyrvIlnndbrrJxlnoneMmrrllnnrynrmundonnrvsunnnnnewhnrlemdnnmlrdZONEVenldaceIrhnNdlrAundIrnlNnohwOaMrlrnlnmdnxminrJ20NEVECmrrlneawhhvlndryHannLmnlnlhewMJelnnlnrJIxmprdFLOODWAYAREASIN20NEAEOTIIERF1000AREASIZONEXAreasaliOUyrarIlorulerasofIdllyurIIUUJxllhayrraprlenlhaalItssIhan1InnsdrwithJralnapareaslessroanIrydnemileanJteasprotecnJbylessLum100yearloudaOTHERAREASZONEXAreasdeternineJtoheoulslde500yearloudpHinZONEDArmsinwhichIlnadhuardtareundeluminedFIOOJBoundaryFlvodwayAounduyZonDBoundaryIBoundaryDividingSDecialFIouJlyHaurdconesandBoundaryDividingAreasplOitferentiCoastalBaxFloodEleralonsIIWithin5venblFloodHanrJZonesr5L7BaseFlvodElevatlonLlneElevaalonInFeetrDDCrossSealdnlineIEL9871BaxFloodElewlionInFeeaWhereUniformWlthinZoneRM7XElevnlanReferenceMarkMISRiverMileFReeencedtolhsNationalGeodeticVenialDatumof1919rrNOTESthismaplilprareinadminHlerirrgthewxrrnalFIonAInsuranceProgramitdoesnotnecnsarilyidentilYallarrassubjerttollnodingpanuladyIromloaldrainagesourcesosmallsizurallpanimeUiclealuresdulsideSpecialloadHazardAleasrCertainareasnotintheSDecialfloodHazardAreatmaybeprdletledbyIInoJcontrolstructuresBoundariesoftheIloodwavwerecomvuledalcansmniunsanJnlepolaledbetweencrosssectionsTheUOOdwaYSweebasrJnnrhydraulkconsidewtionswithreardtorepuiremenbvlthefederalEmelgenrYhlanagememAgencnFlnodwaywidthsinsomeareasmaybeleanartuwtoshowlasdaleAeferlaFloodwayDatafablewherefloodwaywidthisshowna41f7UinchCoastalbasellpodelevationsapplyonlylzndwmdoftheshorelineIElevatlonrlfrencemartsaredesulbedinthefbrodlmuranceSluJyIReportCnrnatelimitsshownarecunrnlasalthedateofthismapTheftershouldronlaclappropriaterommunnyolUCiaUluJrlermineitmrpdralelimitshavechangedsubsequenttotheissuanceoflllismapFaradloiningpanelsseeseparatelyprintedMapIndmIMAPRfPOSIfORYCityHallIglhandCemrulDubuqueIowaIMapsavailableforrelrrenreonlyHalfmdislribulinnlrINIfUfIUfNTIfICATIONIMAY151970F100DHAZARDOOUNDARYMAPREVISIONSIF1000INSURANCERATEMAPEFFECTIVEIAAY151970FL000INSURANCERACEMAPREYISIONSIheapnrvrvrlmyII4JInsltanrrrnrdrignalrnrM1laprlvirxlOsuhrr111475InrellnlNrvJinrarIlmxlhnunilnyarnltorrvimIvrplrcalrlimitsAlapmaMrrlprrmMrG1789itonJllImualdualhn7aularraslaynIlxxlrlevalinusumumanonHainesIxrdrxrdwayandurnrtieinwJranprhornIunlelrvaounsanJrrnnkIxmnJuynwneurpualrlimikandchangemZJnldlormalIxdslmmumiffloodimuranceisavailablyarnlaclanimuumcralnnlortallIhaNationalfIooJImuNrzeProgramnWUIbIIIMlIIUyAPPpDRIMAfFSCALEINFEETnnarod
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EXH1BtTAMENDEDANDRESTATEDURBANRENEWALPLANIceharborUrbanRenewalDistrictCifyofDubuqueTowaThisUrbanRenewalPlanprovidesforthedevelopmentoftheIceHarborUrbanRenewalDistrictItwasadoptedbyResolution40389oftheCityCounciloftheCityofDubuqueIowaonDecember181989andfurtheramendedandrestatedbyResolution24100onJune2000PttparedbytheCommunityandEconomicDevelopmentDeparQnentJune000
TABLEOFCONTENTSIINTRODUCTIONPage1IINSTIFICATIONFORTHEDESIGNATIONPage1IIIOBJECTIVESOFTIIIrPLANPage1NDISTRICTBOUNDARIESpage2VPUBLICPURPOSEACTMIIESPage3VIDEVELOPMENTAREAPage3VIIFINANCLIGACTIVITIESpieVIIISTATEANDLOCALREQUIREMENTSPage7IXDURATIONOFAPPROVEDURBANRENEWALPLANpage7XSEVER4BILITYpageXIAMENDiEViTOFAPPROVEDURBANRENVgLPL1NPage7XIIATTACIitiiENTSPane8
AmendedandRestatedSANRENEUAJPLANZeearborUrbanRenewalDistrictCityofDubuqueIowaIINTRODUCTIONThisURBANRENEN4IPLAoftheIceHarborUrbanRenewalDistriPltheDisuictnrandtostrovidefortheredevelopmentfinancingandcommitmenuprivateinvestmentwithintheDistticatinordertouachievethisobjectivetheCityofDubuqueshallundertaketheurbanrenewalactionsspecifiedinthisPlpursuanttothepowersgrantedtoitunderChapter403oftheIowaCodeUrbanRenewalLawandChapterIAAoftheIowaCodeIIJUSTIrICATIONFORTHEDESIGNATIONTheCityCounciloftheCityofDubuqueIowaIaSdeterminedthatthefollowingblighioconditionsasdefinbyChapte403oftheIowaCodeUrbanRenewalLawexistwithintheIceHarborAreaUndevelopedandunderdeveooedlandprepondennceofdetenotzteddilapidatedndobsoletepuohcandorivateimprovemenuAfaultlotlayoutinrelationtothesieadeauacvanduserFtamentedprooemoersupattemslnessofthforsAlackofpublicutilitiespAninadequatestreetlatioutTheCouncildeclaredbyResolutionofNecessityNo38189onNovember11989andNo1900oniviayS000thatcombinedthesefactorshavesubstantiallyimpairedandarrestedthesoundgrowthoffileCityofDubuqueandoftheIceHarborAreaIIIOBJECTIVESOFTHEPLANThcCihofDubuquebelievesthatthedesignationoftheIceHarborAreaasanURBANRENEWALDISTRICTwillassistintheremovalorimprovementoftheseblightingelementsandwillenhtheattractivenessoftheareaasapotentialsitefornewandexpandingresidentialcommercialsrecreationalandeducationalactivity1
TheOBJECTIVESofthePlanaretobeaccomplishedthroughtheProvisionofamactivepropertyforresidentialcommercialrecreationalzndeducationaldevelopmentDevelopmentofanadequatesupportsystemfornewandexpandingriverrelatedtourismactivitiesCreationoffinancialincentivesnecessarytoencourageappropriateredevelowentopportunitiesCreationoffinancialincentivesnecessarytoattractnewresidentialcoPandeducationalconcernstothecommunitymmercialrecreationalExpansionoftheexistingpropertytaxbaseofthecommunityEnhancementofexistingandconstructionofnewinframuctureandpublicimrovemenandfacilitiesPisMaximizationoftransportationoppouesprovidedbythe1161FreewayCreationandretentionofpermanentemploymentoppomtnitlesforlocalresidentsNDISTRICTBOTJND4RIESTheDistrictislocatedwithintheCityofDubuqueCountyofDubuqueStagofIowaTheDistrictsha11includetwosubareasSubareaAshallincludethatareagenerallyboundedonthenorthbythepublicthevacatedFourthStreetandTnirdStreetonthewestbytheChicagoCent21andpactficbtreenrightofwayonthesouthbyEastFirstStreetandontheeai0DubuoueIowaandincludingbythemuicipailiuniuofeciyofanyadjoiningpublicrightoIwaySubareaBshallincludethatareagenerallyboundedonthenorthandwestbytheCiucaoCeandPacificRailroadrightofwayonthesouthbythenortherlybounaryofSubareaAandoneastbythemunicipallimitsofthecityofDubuuincludinganyadjoiningqxcldmgLotlAdamsCos2ndAdditionandJpublicrightofwayTheboundariesoftheDistrictaredelineatedontheURBANR1rIEWALDISTRICTaheretoasAttachmentAmpattachedTheCityofDubuquereservestherighttomodifytheboundariesoftheDistrictatsomefuturedateinaccordancewithChapter40ioftheIowaCodeUrbanRenewalLaw
VPUBLICPURPOSEACTIVITIESTomeettheOBJECTIVESoftheplantheCityofDubuqueispreparedtoinitiateandsuportredevelopmentthroughthefolloZngpublicpurposeactivitiespPredevelopmentplanningincludingfeasibilityanalysisandensInstallationconsnuctionandreconsnuctionofstteecsutilitiesparkingfacilitiesboatdocksandotherpublicimprovementsincludingbutnotlimitedtotheRiverwalkandHarborwaIkimprovementsandamenitiesandconventionfacilitiesRelocationoreliminationofexistingrailroadslurlinesClosingorvacationofexistingsweetsandpubiicrightofwaysAcquisitionofpropertythroughnegotiationoreminentdomainDemolitionofeisngimprovementsSitepreparationincludingplanningdesiEnvirorunentalassessmentandremediatiandengineeringSaleorleaseoflandfordevelopmentpurposesFinancialassistanceforeligiblepublicandprivateredevelopmentanddevelopmenteffortsPublicputosesactivitiesshallbelimitedtothosezreasdelineatedonthePU3LICACAREmapattachedheretoasAttachmentBTIVITYAllpublicpurposeactivitiesshallmeetthedevelopmentrestrictionsandlimitaionsplacedupontheDisZictbythePlanVIDEVELOPMEAREALandUseDevelopmentandRedevelopmentRearementsTheintentoftheICEK4RBORDEVELOPrdevelopmentofquliryresidentialcommerctna15edrationalandtovlopmentandintheDisnictunsmactivitiesTheDEVELOPMEyTAREAshallincludeallofSubareaAandSubareaBandfseTheESTINGLANDUSEmapattachedheretoasAttachmentClidentitiestheexistinglandusesithintheIccHarborDevelopmentAreaThePROPOSEDLNDUSEmupattachedheretoasAttachmentCdefinestheproposedlanduseoftheIccHarborDevelopmentAres
FuturerezoningtoallowamiofresidentialcomrnerciarecreationalandeducationaluseswilproposedfortheentireDistrictIbePlanninoandDesionCriteriaThegamSParkingRequirementsandSignageRestrictionsestablishedwithintheCiDubuquesZoningOrdinanceforapplicablezoningdistrictsshallapplytoalldevelomenuofredevelopmentactivitiesSpecificdesignstandardsapplicabletotheIceHarborDevelomentArdmayalsobedevelopedtoerasurethecomprehensiveandcompatibledevelopmentoftheDistrictaTheplanningcriteriatobeusedtoguidethephysicaldevelopmentoftheIceHarborDevelopmentAreaarethosestandardsandguidelinescontainedwithintheCityofDubuquesZoninOrdandotherapplicablelocalstateandfederalcodesandordinancesamastersitelanoftnancHarborDevelopmentAreamayalsobedevelopedtoguideublicandpIceopportunitiesintheDistrictpprivatedevelopmentPublicDevelopmentactivitiesTheCityofDubuqueispreparedtomeettheOBJECTIVESoftheplanandtoredevelopmentoftheIceHarborDevelopmentAreathroughtheimnlementIIfiutherthethefollowingonofoneormoreofPredevelopmentplnngincludingfeasibilianalRezoningoftheIceHarboroysisandengneerngDevelopmentreaacquisitionofproperytoutnegotiationoreminentdomainDevelopmentandinplernentationofanoveexisfinotallplantoprovidefortheenhancementofandproposedresidentialcornmercirecreadonaleducationalandtouristracilitiesandactivitiesInstallationconstntcdonandreconstructionofsueeuutilitiesparkingfacilitiesboatdockandouterpublicimprovemenuincludingbutnoglimitedtotheRiverua1kandHarborwaLktmprovementsandamenitiesandconventionfaciiitiesRelocationoreliminationofexistingrailroadsourlinesClosingorvacationofexistinsweetsandrightofwaysDemolitionandorrelocationofeistinSitepreparationincludin1gPrivateimprovemenuanddredgingEnvironmentalassessmegandediatiandengineeringSaleorleaseoflandfordevelopmentandredevelopmentpurposesUseoftarincrementfinancingloansgrantsandotherappropriateitnancialtoolsforeligiblepublicandprivateredevelopmentanddevelopmenteffortsPubliclyheldlandistobedevelopedfariableresidentialcommercialrecreationalandeducationalusesandnotsoldforspeculationDeveloperstiiillbeselectedonthebasisofthequalityoftheirproposalstheirabilitytocarryoutsuchproposaltheirabilitytoconformtothisPlanandthelevelofcommunitybenefit4
EminentDomainandRelocationReouirementsTheCityofDubuqueanticipatesapotentialneedtoacquireandrelocateoneormoreecistingcommercialandindustrialenterprisesSeeLA1DACQUISITIONAREAmapattachedheretoasAttachmentDBusinessesdisplacedbydevelopmentactivitieswillbeprovidedrelocationassistanceinaccordancewithapplicableprovisionsofChapter316oftheIowaCodeHighwayRelocationAssistanceLawTherearetotheknowledgeoftheCityofDubuquenoresidentialpropertiescurrentlylocatedwithintheDevelopmentAreaVIIFIiYANCINGACITVTIIESTomeettheOBJECTIVESofthisPIanandtoencouragethedevelopmentoftheDistrictandprivateinvestmentthereintheCityofDubuqueispreparedtoprovidefinancialassistancetoqualifiedbusinessesthroughthemakingofloansorgrantsunderChapter1dAoftheIowaCodeandthroughtheuseoftarincrementfinancingunderChapter403oftheIowaCoderChapter1ALoanorGrantTheCityofDubuquehasdeterminedthatthemakingofloansorgramsofpublicfundstoqualifiedbusinessesisnecessarytoaidintheplanningunderakingandcompletionofurbanrenewaloroiectsauthorizedunderthisPlanwithinthemaningofSection38443QoftheIowaCodeAccordinglyinfurtheranceoftheOBJECTIVESofthisPlantheCityofDubuquemaydetetminetoissuebandsormakeloansorgramsinrelianceupontheauthorityofSection384ASection38443qSect7on40312generalobligationbondsor5ection4039taxincrementbondsforthepuposeofmakingloansormzntsofpublicrandstoqafliedbusinessesAlternativelytheCitymaydeterminetouseavailablefisndsforthemakingofsuchloansorgramsIndeterrngqualificauonsofrecinienuandwhethertomakeanysuchindividualloansorgrznutheCiteofDubuqueshallconsiderallofthefactorssetforthinSectionliAloftheIowaCodeonacasebycasebasisTaYIncrementFinancingTheCityofDubuqueispreparedtoutilizetaxincrementfinancingasameansoffinancineligiblecosuincurredinfurtheranceofthisPlanBondsorloansorgrantsmaybeissuedbytheCityundertheauthorityofSection4039oftheIowaCodetaxincrementbondsorSection38424ASection384243qandSection4031generalobligationbandsTheCityacknowledgesthattheuseoftaxincrementrevenuesdelaystheabilityofotherlocaltakingbodiestorealizeimmediatelythedirecttasbenefitsofnewdevelopmentintheDistrictandtheCityCountandSchoolDistrictmayreceivelesstaxrevenueduringthedurationofthisPlanthantheywouldhavereceivedifthisPlanwerenotimplementedTheCitybelieveshoweverthattheuse5
oftaxincrementrevenuestofinancethepublicimprovementsandtopromoteprivateinvestmentintheDistrictisnecessaryinthepublicinteresttoachievetheOBIECTIVESofthisPlanWithouttheuseofthisspecialfinancingtoolnewinvestmentmanototheniseoccurIfnewdevelopmentdoesnottakeplaceinDubuquepropertyvaluescouldstagnateTaxincrementfinacingtivillprovidealongtermpaybackinoverallincreasedtaxbasefortheCityCountyandSchoolDistrictTheinitialpublicinvestmentrequiredtogeneratenewprivateinvestmentwillultimatelyincrsethetaxablevalueoftheDistrictwellbeyonditscurrentvalueTatincrementreimbursementmaybesoughtforamongotherthingsthefollowingcoststotheeventthevareincurredbytheCiryPlanningandadministladonofthePlanPredevelopmentplanningsiteplanningdesignandengineeringConstructionortvconswctionofpublicimprovemenuamenitiesandfacilitieswithintheDistrictAcquisitionoflandandpreparationofsamefarsaleorleasetoprivatedevelopersincludinganywritedownofthesalepriceofthelandConstntctionofbuildingsorfacilitiestobesoldorleasedtobusinessesEnvionmentlassessmentandremediationIosnsorgrntstoaualinedbusinessesunderChapter1AoftheIowaCodeincludingdebtservicepaymentsananybondsissuedtofinancesuchloansortsPruvidigt1elocalmatcningshareforCEBARISEandorotherlocalstateandfederalgrsntsandloansPmnosedmountofindebtdrssAtthistimetiteextentofimprovementsandnewdevelopmentwithintheDisrictisonlygenerallyatonUsuchtheamountanddurationofuseofthetarincrementrvenuesforpublicimprovemenusndorprivatedevelopmentcanonlybeestimatedTheacrtaluseandamountoftaxincrcmentrvenuestobeusedbytheCiryforDistrictactivitieswillbedeterminedatthetimespecincdevelopmentisproposedItissndcipatcdthatthemaumumamountofindebtednessincludingprincipalinterestandCityadvttrtceswhichi1lqualifyfortxincrementrevenuereimbursementduringthedurationofthisPlsrtincludingracquisitionpublicimprovementsandprivatedevelopmentassistancewillnotccced53000000AttltctimeofadoptionoftltcPlantheCityofDubuquescurrentgeneralobligationdebtisSS09d000alistofobligationsisfoundaAttachmentEandtheapplicableconstitutionaldebtlimitisS103SS3G006
VIIISTATEANDLOCALREQUIRE11ElVTSAllprovisionsnecessarytoconformthstateandlocallawhavebeencomplied4zthbytheCityofDubuqueintheadoptionofthisPlanandisupportingdocumentsIXDURATIONOFAPPROVEDURBANRENEWALpThisPlanshallbeineffectforaperiodofthirty30yearsfromadoptionoramendmentofthisAmendedandRestatedUrbanRenewalplanoruntilsuchtimethattheCityofDubuquehasreceivedfullreimbursementfromallincrementaltaresofitsadvancesandprincipalandinterestpayableonallTaxIncrementFinancingorgeneralobligationsissuedtocarryouttheOBJECTIVESoftheDistrictKSEVERABILITyIntheeventoneormoreprovisiomscontainedinthisplanshallbeheldforanyreasontobeinvalidIllegalunauthorizedorunenforceableinanyrespectsuchinvalidityillegalityunauthorizztionorunenforceabilityshahnotafrectanyotherprovisionofthisPIanandthisPlansha11beconstruedandimplementedasifsuchprovisionhadneverbeencontainedhereinXIAhNLEirTOFAPPROVEDURBANRENEWALPLANThisPinmaybeamenaedtiomtunetottmetorespondtodevelomeatotommiamendmentshallbecompletedinaccordanceithChanter403oftheIowaCodeUrbanRnewanLswAnychangeeffectinganvDroaemorcontactualriQntcanbeeffectuatedonlyinaccordancetizthapplicablestateandlocallaw7
XIIATTACHMENTSAUrbanRenewalDistrictMapwithSubareasBPublicActivityAreaMapCXEistingLandUseMapCProposedLandUseMapDLandAcquisitionAreaMapEListofObligationsusEUVwwrooauxutie4reiMa8
QcoiouUoyNrOQCuQaoCmxrikNRtriririrrnniia11vJ3iiiriiiririririsaiiiirxIrtii4rFaiirriririiairrtiyrtyrra1ri1f7r1rJrrtrFiI1irJ1rTirri7lfhfr1rLiiQYQaa1IIIIrmcmELUQ
Mao0rotmFLUQitifrrkiiSiiiirr3rririiftritiFem4txr7rlli1iaJiIfirfVr1rrfrsirFY1VI4VrYfisrP7J1trsue1iL4JViIir1iYXsJj17t1t1rLiiirar1i7Xjtliitirriittirirrr1ii5irtrrGiircrrrirYri1srirrrFiifiairri1E8aomCmLUro
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NUiiidNiNf1jrV37fi11ao0roEooUnoocmZ7aeyoCftycmErUQ
oEosmsooQoJQffC1QnCfLSklijtmacC1o1
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
GLOSSARYOFAPPRAISALTERMSACCELERATEDDEPRECIATIONAmethodofdepreciationforincometaxpurposespermittingafasterwriteoffthanthestraightlinemethodACCELERATIONOFDEBTThecallingdueimmediatelyofallfutureprincipalinstallmentsonadebtbecauseofacontractualdefaultACCRUEDDEPRECIATIONThelossofutilityinappraisalthatcausesthevalueofthepropertytobelessthanthereproductioncostnewACRELandmeasurementconsistingof43560squarefeetACTUALAGECalendarofchronologicalageADDONINTERESTThatinterestcalculatedbycomputingthesimpleinterestontheprincipalamountofthenoteandaddingittotheprincipalPaymentsarecalculatedbydividingtheentiresumbythenumberofperiodsinthetermADVALOREMTaxinginproportiontothevalueAFTERTAXCASHFLOWThebeforetaxcashflowadjustedforincometaxesAGELIFEMETHODMethodofestimatingaccrueddepreciationbyapplyingtheratioofeffectiveagetoeconomicusefullifetothereproductioncostnewAGGREGATEMaterialsusedinthemanufactureofconcreteorplastersuchassandgravelcindersrocketcAGRICULTUREThescienceandartoffarmingAIRRIGHTSTheownershiprightstothespaceorportionthereofabovethepropertyAMENITYBenefitsorotherattractionsofPropertysuchasviewprideofownershipfireplaceandothersAMORTIZATIONSystematicreductionoftheprincipalbalanceofaloanAMORTIZATIONRATETheamountofaperiodicpaymentofaloanappliedtothereductionoftheprincipalAMORTIZATIONTERMTheperiodoftimeneededtoretiretheprincipalamountoftheloan
GLOSSARYOFAPPRAISALTERMScontinuedANALYSTPersonwhoperformscalculationsandstudiestoheldmakedecisionsconcerningrealestateANCHORTENANTAmajortenantinaretailpropertywhoservesasamagnetinattractingcustomerstothepropertyANNUALDEBTSERVICEThetotalyearlypaymentsonaloanANNUITYAseriesofequalpaymentsmadeatfixedintervalsoverafixedperiodoftimeANNUITYMETHODSOFAPPRAISALAmethodofcapitalizingfutureincomestreamsfromaninvestmentANTICIPATIONTHEPRINCIPLEOFTheprincipleholdingthatvalueisdeterminedbythepresentworthofbenefitsandwhatoneexpectstoreceiveinthefuturefromsuchownershipAPPOSITIONPlacingawordorexpressionbesideanothersothatthesecondexplainsthefirstandissetoffbycommasAPPRAISALOnesopinionorestimateofvalueARMAdjustableratemortgageUsedtodescribeanytypeofmortgagethatdoesnothaveafixedrateforthetermARMSLENGTHTRANSACTIONAtransactionbetweenpartieswhoareknowledgeablecapableandnotunderpressureASSEMBLYThefittingtogetherofthepartstomakeawholeASSETSPropertythatisownedandhasvalueASSUMEDMORTGAGEAnexistingmortgageforwhichanewpartyagreestoaccepttheliabilityATTICAccessiblespacebetweenroofandceilingAVULSIONThesuddenlossoflandfromthepropertyofonetothatofanothersuchasinthechangeinthecourseofariverBALANCEPRINCIPLEOFTheprinciplethatholdsthatvalueisequatedtotheamountandutilityofrealestate
GLOSSARYOFAPPRAISALTERMScontinuedBETTERBOARDSTheslopeofawallorbankdefinedbyboardsdefiningthelimitsofafoundationBOOKVALUETheworthofpropertyasshownbyanaccountingbalancesheetBOOTAnythingtakeninadditiontoequalizethevaluesofpropertyinanexchangeBROKERApersonactingasanagentforoneofthepartiestothesaleofpropertyBUILDINGCODESOrdinancespassedbycitiesorotherlocalgovernmentssettingminimumstandardsforrealestateimprovementsBUILDINGRESIDUALTECHNIQUEIntheincomeapproachatechniqueinwhichthevalueofthebuildingisindicatedafterlandvaluehastobeestimatedandaportionofnetincomeallocatedtothelandthebalanceofincomeisresidualtothebuildingandiscapitalizedatanappropriaterateBUNDLEOFRIGHTSThecollectionofrightsusuallyfoundinownershipofrealestateincludingrightstopossessusequietenjoymentandsaleofpropertyCAPITALTheentireaccumulatedwealthformwhichincomeisderivedCAPRATEArateusedtoconvertanincomestreamintovalueCAPITALGAINTheamountofnetproceedsfromasaleofacapitalassetthatexceedsthebookvalueoftheassetCASHFLOWTheamountofcashgeneratedbyaninvestmentCAVEATNoticeorwarningtonotproceedanddoanactCAVITYSpacebetweenwallsorothercomponentsofabuildingthatisnotaccessibleCEDARSHAKERoofingmaterialsmadefromcedarwoodthathasbeensplitCEDARSHINGLESameasaboveexceptshinglesaresawedCESSPOOLAcatchbasinlocatedundergroundholdingsewage
GLOSSARYOFAPPRAISALTERMScontinuedCHATTELGenerallyallpropertynototherwisedefinedasrealpropertyCOFFERAdecorativesunkenpanelinavaultdomeorceilingCOLLATEDTocollectandexaminedatatoseethatallisinproperorderCOMMONWALLAwallsharedjointlybytwobuildingsCOMPARABLERENTRentfromotherpropertiesthatareofasimilarnatureCOMPONENTAningredientconstituentorpartofthewholeCOMPOSITIONROOFINGRoofingmaterialgenerallymadefromasphaltCOMPOUNDINTERESTInterestgeneratedfromtheprincipalandpreviouslyearnedinterestCONDEMNATIONGovernmentalacttakingprivatepropertyforpublicuseCONFORMITYValueisinfluencedbyrelationofpropertytosurroundingpropertyandmarketneedsCONTRIBUTIONPRINCIPLEOFAvaluationofprinciplethatmeasuresthevalueofacomponentbyhowmuchitcontributestothevalueofthepropertyCORRELATIONTobringintomutualrelationwithanotherthingshowingtheirrelationshipCOSTAPPROACHAnapproachtovaluationinwhicheitherthereproductionorreplacementcostofimprovementsareestimatedthenadeductionismadeforalldepreciationandthevalueoflandisaddedCRAWLSPACEUnfinishedbutaccessiblespaceinapropertyoflessthanstandardheightCURABLEDEPRECIATIONDepreciationthatmaybecorrectedatacostlessthanitscontributoryvalueDATEOFAPPRAISALDateappraisaliseffectiveDEBTSERVICEPaymentsofprincipleandinterestforaloan
GLOSSARYOFAPPRAISALTERMScontinuedDEEDAlegalinstrumentwhichwhenexecutedanddeliveredconveysanestateorinterestinrealestateDEEDOFTRUSTAmortgageinstrumentwhereathirdpartytrusteeholdstitletotherealestateforthebenefitofalenderDEFAULTAnyfailuretofulfillacontractualobligationDEFERREDMAINTENANCENeededrepairsorrehabilitationthathasbeenpostponedDEPRECIATIONLossinvaluefromanycauseDEPRECIATIONALLOWANCEInaccountingtheamountsetasidetoreplacetheassetDEPRECIATIONRECAPTUREInaccountingthatamountofexcessdepreciationwhichwillbetreatedasordinaryincomeDESCENTTransferofpropertyatdeathintheabsenceofawillDEVISETransferofpropertyatdeathintheabsencebymeansofawillDIMINISHINGRETURNSPointatwhichreturnsfailtoincreaseinproportiontoincreasedinvestmentsDIRECTSALESCOMPARISONAPPROACHAnapproachtovaluationinwhichpropertyvalueisindicatedbycomparingrecentsalesofsimilarpropertiesmakingadjustmentstothesalepricesforsimilaritiesinmarketconditionslocationsandphysicalcharacteristicsPreviouslyknownasMarketDataApproachorMarketSalesApproachDISCLAIMERAdenialofanyinterestoragreementDISCOUNTPOINTSAfeechargedbylenderswhentheloanismadetoincreasetheyieldEachonpercentoftheloanistermedaPointDISCOUNTINGCoveringfuturecashflowtopresentvalueDISCOUNTEDCASHFLOWThepresentworthofafutureincomestreamDOCUMENTATIONWrittenevidenceofthefactscontained
GLOSSARYOFAPPRAISALTERMScontinuedDOUBLEHUNGWINDOWSWindowtypewithtwomovablesashesslidingverticallyDRYWALLInteriorwallfinishapplieddryasopposedtoplastertypicallysheetrockorgypsumboardDUEONSALECLAUSEAmortgageclausethatpermitsthemortgagelendertoforecloseifthepropertyissoldortransferredwithoutthemortgageholderspermissionDUPLEXHousecontainingtwoseparatedwellingunitsDUTCHDOORDoordividedinhalfhorizontallysothattheupperhalfmayremainopenwhilethelowerhalfisclosedEASEMENTRightgiventoapersonorpersonstolimitedusedoflandbelongingtoanotherEXTERNALOBSOLESCENCELossintheuseorvalueofpropertyarisingfromexternalsurroundinglandusesorenvironmentalforcesformerlycalledEconomicObsolescenceECONOMICRENTTherentalthepropertyshouldreceiveinafreemarketEFFECTIVEAGEAgeofthesubjectpropertyasindicatedbythepropertyconditionincontrasttoitscalendarageEFFECTIVEGROSSINCOMEPotentialgrossreceiptslessallowanceforvacanciesandcollectionlossesIELLIPSISTheomissionofawordorwordsnecessarytocompleteconstructionbutunderstoodinthecontextifpossiblecomeearlyEMINENTDOMAINRightofagovernmenttoacquireprivatepropertyforpublicuseafterjustcompensationEQUITYThedifferencebetweenpropertysfairmarketvalueandoutstandingmortgagesEQUITYPARTICIPATIONTherightofalendertoshareintheequityofthepropertyinadditiontointerestthenote
GLOSSARYOFAPPRAISALTERMScontinuedESCALATIONCLAUSEAgreementisleaseallowingforincreasesinrentbasedonsomeeventESTIMATEAnopinionofaqualifiedpersonbasedonanalysisofdataFACTORIstheReciprocalonedividedbyanumberofagivenrateFAIRMARKETVALUESeeMarketValueFEESIMPLEThegreatestamountofownershiprecognizedbylawwithoutlimitationsorrestrictionsastoheirsFERTILITYThequalityorstateofbeingproductiveFLATWORKTermusedtogenerallydescribeconcreteworksuchasdrivewaysandsidewalksFLExIBLEPAYMENTMORTGAGEMortgagegenerallyrequiringasavingsdepositinadditiontocashdownpaymentFRAMINGAsystemofstructuralmembersprovidingsupportforabuildingFRACTIONALAPPRAISALAppraisalofaportionoffractionalinterestinrealestatesuchasmineralorairrightsFUNCTIONALOBSOLESCENCELossofvaluebecauseofchangesinmarketstandardsGIMGrossIncomeMultipliertheresultofdividingthesalespricebytheannualgrossincomeGPMGraduatedpaymentmortgageonewithlowerpaymentsearlyinthetermandincreasinggraduallyinstepsGROSSINCOMEThetotalamountofannualincomewithoutdeductionsGROSSLEASEAleasewherelandlordusuallypaysforupkeepandtaxesGRMGrossRentMultipliertheresultofdividingthesalepricebythemonthlygrossrentHEADERSAwoodenbeamsetatrightangelstojoiststoprovidesupportalintel
GLOSSARYOFAPPRAISALTERMScontinuedHIGHESTANDBESTUSETheuseofrealpropertythatisreasonableandprobablethatsupportsthehighestpresentvalueasofthedateoftheappraisalAdditionallyitisthatusefromamongreasonablyprobableandlegalalternativeusesfoundtobephysicallypossibleappropriatelysupportedandthatwhichresultsinthehighestvalueHUDIndicatingthedepartmentofHousingandUrbanDevelopmentIFAIndependentFeeAppraisermemberoftheNationalAssociationofIndependentFeeAppraisersINCOMEAPPROACHAnapproachtovaluationofpropertybasedontheconceptthatvalueisrelativetoincomeItreliesontheanalysiswhichconvertsanticipatedearningstobederivedfromtheownershipofthepropertyintoavalueestimateINDEPENDENTAPPRAISALEstimateofvalueofpropertyperformedbyadisinterestedpartyINHERITANCEAlegacybequestsomethinginheritedINTERNALRATEOFRETURNIRRTherateatwhichthediscountedreturnequalsthecostoftheinvestmentINTERPOLATIONProcessofarrivingatavalueknowntoliebetweentwogivenfiguresJURISDICTIONTerritorialareawhichiscontrolledbylawsorcourtsLANDCONTRACTContractforrealpropertyfinancedbythesellertypicallywithoutgivingtitleuntilallpaymentsaremadeLANDRESIDUALTECHNIQUEMethodofestimatingvalueoflandwhenthevalueoftheimprovementsareknownSeeBuildingResidualTechniquesLEASEOPTIONAnagreementwherepartoftherentmaybeappliedtothepurchaseiftenantelectstopurchaseLEASEPURCHASEAGREEMENTAnagreementwhereapartoftherentisappliedtothepurchasepricewithtitlegivenwhenamountispaidinfullLESSEEThetenantsigningaleaseLESSORTheownersigningalease
GLOSSARYOFAPPRAISALTERMScontinuedLTVLoantoValueRatioTherelationshipbetweentheamountborrowedtotheappraisedvalueofthepropertyMAIMemberoftheAppraisalInstituteoftheAmericanInstituteofRealEstateAppraisersMARKETVALUEaccordingtoFMNAFHLBSFHLMCThemostprobablepricewhichapropertyshouldbringinacompetitiveandopenmarketunderallconditionsrequisitetoafairsalethebuyerandsellereachactingprudentlyknowledgeableandassumingthepriceisnotaffectedbyunduestimulusImplicitinthisdefinitionistheconsummationofasaleasofaspecifieddateandthepassingoftitlefromsellertobuyerunderconditionswhereby1buyerandselleraretypicallymotivated2bothpartiesarewellinformedorwelladvisedandeachactinginwhatheconsidershisownbestinterest3areasonabletimeisallowedforexposureintheopenmarket4paymentismadeintermsofcashinUSdollarsorintermsoffinancialarrangementscomparabletheretoand5thepricerepresentsthenormalconsiderationforthepropertysoldunaffectedbyspecialorcreativefinancingorsalesconcessionsgrantedbyanyoneassociatedwiththesaleMATCHEDPAIRTworecentlysoldpropertiesselectedfortheirsimilaritieswhichmaybecomparedtodeterminethevaluesofdissimilaritiesMFLAMasterFarmLandAppraisermemberoftheNationalAssociationofMasterAppraisersMLSMultipleListingServiceandorganizationofrealestatebrokerssharinglistinginformationMRAMasterResidentialAppraisermemberoftheNationalAssociationofMasterAppraisersMSAMasterSeniorAppraisermemberoftheNationalAssociationofMasterAppraisersNARRATIVETellingastoryaccounttaleNETINCOMETheincomederivedafterdeductingallexpensesthevacancyallowanceantlthereservesNETLEASEAleasewheretenantpaysupkeeptaxesandinsurance
GLOSSARYOFAPPRAISALTERMScontinuedNETOPERATINGINCOMEN01EffectivegrossincomelesspropertyoperatingexpensesandreservesOBSOLESCENCELossinvaluebecauseofdecreaseinutilityPARQUETFLOORFlooringlaidinrectangularofsquarepatterninthinwoodenblocksPERIMETERTheouterboundaryofanareaPHYSICALDEPRECIATIONLossinvalueduetoimpairmentofphysicalconditionofthepropertyPROFESSIONALEngagedinanoccupationwithhighstandardsPRIVATEPRACTICEProfessionalsofferingtheirservicestothegeneralpublicPROBATEProofincourtofawillPROPERTYRESIDUALTECHNIQUEIntheincomeapproachanestimateofvalueobtainedbycapitalizingforecastedincomeatanoverallrateseeBuildingResidentialandLandResidualPURSUEStriveseeksspecificcourseofactionPHYSICALDEPRECIATIONLossinvalueduetoitsphysicalconditionQUALIFICATIONSDescribingthequalitiesorcharactersticsofanoccupationRANCHAlargefarmwithitsbuildingsandlandsusedtoraiselivestockinlargenumbersRATIOAfixedrelationbetweentwosimilarthingsREALTORAregisteredtrademarkoftheNationalAssociationofREALTORSwhichmaybeusedonlybymemberofaconstituentboardofREALTORSRECONCILIATIONTheadjustmentprocessbetweencomparablepropertiesantlthesubjectpropertyPreviouslycalledcorrelationREPLACEMENTCOSTCostofreplacingimprovementswithmodernmaterialsandtechniques
GLOSSARYOFAPPRAISALTERMScontinuedREPRODUCTIONCOSTCostofconstructinganexactreplicaofanimprovementRMResidentialMemberoftheAmericanInstituteofRealEstateAppraisersROWArrangedsoastoformalineSANDWICHLEASEAleasecreatedbythelesseesublettingthepropertySERVICEINCOMEThetypeofincomecollectedforservicesratherthanrentSITELandreadyfordevelopmentorwithimprovementsSRASeniorResidentialAppraisermemberoftheSocietyofRealEstateAppraisersSREASeniorRealEstateAnalystmemberoftheSocietyofRealEstateAppraisersSRPASeniorRealPropertyAppraisermemberoftheSocietyofRealEstateAppraisersSUBSTANTIATEToshowtobetrueorrealbygivingevidenceTEXTONERoughirregularpatternappliedtodrywallconstructionTILLABLETheconditionoflandallowingcultivationUTILIZATIONThequalityorpropertyofbeingusefulusingtothebestadvantageVACANCYALLOWANCEThatamountdeductedfrompotentialannualgrossincometoreflecttheprobablevacanciesandnonpaymentofrentgenerallyapercentageoftheannualgrossincomeVALUETheworthofathinginmoneyorgoodsatacertaintimeWAINSCOTWoodenliningofaninteriorwallusuallypanelslowerpartofaninteriorwallseparatedbyamoldingWINDOWSGlassedopeninginwallcanbesinglehungdoublehungfixedawningcasementandtaverse
APPRAISALBIBLIOGRAPHYAkersonChariesBMAITheAppraisersWorkbookTheAmericanInstituteofRealEstateAppraisersChicagoIL1985AkersonCharlesBMAICapitalizationTheoryandTechniquesStudyGuideTheAmericanInstituteofRealEstateAppraisersChicagoIL1984AkersonCharlesBMAIIntroductiontoMeetingEquityCapitalisationTheAmericanInstituteofRealEstateAppraisersChicagoIL197fiAkersonCharlesBMAITheInternalRateofReturninRealEstateInvestmentsTheAmericanInstituteofRealEstateAppraisersChicagoIL1986TheAmericanInstituteofRealEstateAppraisersTheANinthEditionChicagoIL1987raisalofRealEstateTheAmericanInstituteofRealEstateAppraisersTheApPlantingOrchardsandVineyardsChicagoIL1985praisalofPermanentTheAmericanInstituteofRealEstateAppraisersTheApProertyChicagoIL1985praisalofIrrigatedTheAmericanInstituteofRealEstateAppraisersTheApandRanchesChicagoIL1985praisalofLivestockTheAmericanInstituteofReatEstateAppraisersTheApChicagoIL1985praisalofDairyFarmsTheAmericanInstituteofRealEstateAppraisersTheDictionaryofRealEstateAraisalChicagoIL1987TheAmericanInstituteofRealEstateAppraisersSubdivisionAnalysisAnEducationalMemorandumClarkLouiseandTreadwayFJJrImpactofElectricPowerTransmissionLineEasementsonRealEstateValuesTheAmericanInstituteofRealEstateAppraisalChicagoIL1972CommercialInvestmentAppraisalRealEstateLawInstituteChicagoIL1988DubuqueCountyIowaLandandAtlasBookLatestYearRockfordMapPublishersIncDubuqueCountyIowaSoilSurveyofUnitedStates
APPRAISALBIBLIOGRAPHYcontinuedDepartmentofAgricultureSoilConservationServiceDubuqueCountyIowaSoilSurveyReportSupplementIowaStateUniversityandSoilConservationServiceEatonJDRealEstateValuationinLitiationAmericanInstituteofRealEstateAppraiserChicagoIL1982FarmandLandAppraisalRealEstateLawInstituteChicagoIL1988FloydCharlesFOutdoorAdvertisingSignsinEminentDomainProceedingsTheRealEstateAppraiserandAnalystSummer1990FloydCharlesFWhVtheIncomeCapitalizationandMarketDataApproachesAreNotValidTechniquesfortheValuationofOutdoorAdvertisingSignsTheRealEstateAppraiserandAnalystSummer1990FriedmanEdithJGeneralEditorTheEncyclopediaofRealEstateAppraisingFourthEditionPrenticeHallEnglewoodCliffsNJ1987GibbonsJamesEMeetingEquityCapitalizationEllwoodMethodAmericanInstituteofRealEstateAppraiserChicagoIL1981GimmyArthurEandBoehmMichaelGElderlyHousingAGuidetoAppraisalMarketAnalysisDevelopmentandFinancingIllinois1988AmericanInstituteofRealEstateAppraisalsGoldCoursesandValuationChicagoIL1980HarrisonHenrySSmallResidentialIncomePropertyAppraisalGuideFormsandWorms1986HarrisonHenrySIllustratedDictionaryofRealEstateandAppraisingHarrisonHenrySHarrisonsIllustratedGuidetoUniformResidentialURARAppraisalReport1986EditionNewHavenCTFormsandWormsChicagoIL1986HarrisonHenrySHousesNationalMarketingInstituteChicagoIL1976IowaLandSalesReportPOBox127FortDodgeIowa
srArEofWAPROFESSIONALLICENSINGANDREGULATION01VISIONDEPARTMENTOFCOMMERCETaliISTCCERTIFYTr14fTFtuLUwJAiUiiSScEPGnarTEACcTIFICATFASAGSIrFILfaLERT1APFr1IitKCIuTIFICITiC114XISC5i72002K9rARISALcALcST4TE11J20LrJiEllrldsignaturer9ilEDxwxPROFESSIONALUCENSINfANUAEbVilpinOEPAR1uEuTrniETHEPERSONNAhIEDBELOWHAVINGMETTHEREOUIREIENTSARIDBEINGING000STANDINGINOTHERRESPECTSISISSUEuACERTIFICATEASAALRaLPROPERTYAPPRAIScThOrASPKAFCERTIFYfu01594lLerktwiExNIRESCo3CZCOZ
vi1f1yLjlrGrrJchiJai7VEJ111wHSHnNGNayanrtGMMNCOzaaNyomortHyyFesmmbjaortoQbGOnQ7oaTgillIViriiiiNriiaii11ti1MflylttlllJiLltjI4rirte1lff111q11IEI111hitllhia1inidcnnIyU0I0rohl1JnVNfIcdirNNjftIojuftrpti11brluTfIH
1. Developer shall provide and maintain or cause to be maintained at all
times during the process of constructing Minimum Improvements (and, from time
to time at the request of City, furnish City with proof of insurance in the form of a
certificate of insurance for each insurance policy):
(a) All risk builder's risk insurance, written on a Completed Value Form
in an amount equal to one hundred percent (100%) of the replacement
value when construction is completed;
(b) Commemial general liability insurance covering the City's Property
and operations (including operations of subcontractors), completed
operations and contractual liability insurance with limits of liability of not
less than $2,000,000 for each occurrence and in the aggregate (an
umbrella or excess liability policy may be used), bodily injury and property
damage; and
(c) Statutory worker's compensation insurance coverage and
employer's liability insurance in the amount of $1,000,000.
9. Possession/Date of Closing. The closing of the transactions referred to
herein shall occur at a mutually agreeable time or times in order to enable Developer to
commence construction of its relocated facility not later than November 1, 2003 (the
"Date of Closing"). Developer will require title to the City Property in order to commence
construction.
City will take possession of the Developer's Property at such time as the
relocation of the manufacturing facility is completed, which shall be not later than
eighteen months from the Date of Closing. The transfer of title to the Developer's
Property will occur at the Date of Closing, provided, however, that Developer shall
retain possession of the Property pursuant to the Lease Agreement, attached hereto,
until the relocated facility is in full operation, which shall be not later than eighteen
months from the Date of Closing.
10. Real Estate Taxes. Real estate taxes on the Developer's Property and
the City Property shall be prorated to the date of closing. Except as set forth in the
Lease Agreement between City and Developer, City shall be responsible for real estate
taxes, if any, after the closing, on the Developer's Property and Developer shall be
responsible for real estate taxes, if any, after the closing, on the City Property.
For and in consideration of City's payment of the Acquisition Grant and the
Economic Development Grant to Developer, Developer agrees that it will not apply for
any exemption from property taxation of the actual value added by Developer's new
construction of industrial real estate on the City Property as provided in Iowa Code
Chapter 427A or Section 43-21 of the City of Dubuque Code of Ordinances.
11. Special Assessments. The parties acknowledge that there are no
special assessments against the Developer's Property or the City Property.
12. Care and Maintenance. The Developer's Property shall be preserved in
its present condition and delivered intact at the time possession is delivered to City,
ordinary and reasonable wear and tear excepted.
13. Abstract of Title. Developer, at City's expense, shall promptly obtain an
abstract of title to the Developer's Property continued through the date of this
Agreement which shall show merchantable title in Developer in conformity with the title
standards of the Iowa State Bar Association.
14. Assignment. Developer may assign some or all of this Agreement to a
related third party only upon the prior written consent of City, which consent shall not be
unreasonably withheld.
15. Time is of the Essence. Time is of the essence in this contract.
16. Events of Default and Remedies
a. Events of Default Defined. The following shall be "Events of Default" under
this Agreement and the term "Event of Default" shall mean, whenever it is
used in this Agreement, any one or more of the following events:
(1)Failure by Developer to cause the construction of Minimum
improvements to be completed pursuant to the terms, conditions and
limitations of this Agreement.
(2)Failure by Developer or City to substantially observe or perform any
other material representation, condition, obligation or agreement on its
part to be observed or performed under this Agreement.
b. Remedies on Default by Developer. Whenever any Event of Default referred
to in Section of this Agreement occurs and is continuing, City, as
specified below, may take any one or more of the following actions after the
giving of written notice by City to Developer of the Event of Default, but only if
the Event of Default has not been cured within sixty (60) days following such
notice, or if the Event of Default cannot be cured within sixty (60) days and
Developer does not provide assurances to City that the Event of Default will
be cured as soon as reasonably possible thereafter:
(1)City may suspend its performance under this Agreement until it receives
assurances from the Developer deemed adequate by City, that the
Developer will cure its default and continue its performance under this
Agreement;
(2)Until the Date of Closing, City may cancel and rescind this Agreement;
(3)City may withhold the Certificate of Completion; or
(4)City may take any action, including legal, equitable or administrative
action, which may appear necessary or desirable to collect any
payments due under this Agreement or to enforce performance and
observance of any representation, obligation, agreement, or covenant
under this Agreement.
c. Revesting Title in the City Upon Happening of Event Subsequent to
Conveyance to Developer. In the event that subsequent to conveyance of City's
Property to Developer by City and prior to receipt by Developer of the Certificate of
Completion, an Event of Default under Section __ of this Agreement occurs and is
not cured within the times specified in Section , then City shall have the right to
re-enter and take possession of Property and any portion of Minimum Improvements
thereon and to terminate and revest in City pursuant to the provisions of this Section
__ the estate conveyed by the City to Developer, it being the intent of this provision,
together with other provisions of this Agreement, that the conveyance of Property to
Developer shall be made upon the condition that (and the Deed shall contain a
condition subsequent to the effect that), in the event of default under Section __ on
the part of Developer and failure on the part of Developer to cure such default within the
period and in the manner stated herein, City may declare a termination in favor of City
of the title and of all Developer's rights and interests in and to City's Property conveyed
to Developer, and that such title and all rights and interests of Developer, and any
assigns or successors in interests of Developer, and any assigns or successors in
interest to and in City's Property, shall revert to City, but only if the events stated in
Section __ of this Agreement have not been cured within the time period provided
above, or, if the events cannot be cured within such time periods, Developer does not
provide assurance to City, reasonably satisfactory to City, that the events will be cured
as soon as reasonably possible.
d. Resale of Reacquired Property: Disposition of Proceeds. Upon the revesting
in City of title to City's Property as provided in Section of this Agreement, City
shall, pursuant to its responsibility under law, use its best efforts, to resell City's
Property or part thereof as soon and in such manner as City shall find feasible and
consistent with the objectives of such law and of the Urban Renewal Plan to a qualified
and responsible party or parties (as determined by City in its sole discretion) who will
l0
assume the obligation of making or completing Minimum Improvements or such other
improvements in their stead as shall be satisfactory to City and in accordance with the
uses specified for such Property or part thereof in the Urban Renewal Plan. The
proceeds thereof shall be applied:
(1) To reimburse City for all allocable costs and expenses incurred by City,
including but not limited to salaries of personnel, in connection with the
recapture, management and resale of property or part thereof (but less any
income derived by City from the property or part thereof in connection with such
management); any payments made or necessary to be made to discharge any
encumbrances or liens existing on the City Property or part thereof at the time of
revesting of title thereto in City or to discharge or prevent from attaching or bring
made any subsequent encumbrances or liens due to obligations, default or acts
of Developer, its successors or transferees (except with respect to such
mortgage(s)), any expenditures made or obligations incurred with respect to the
making or completion of Minimum Improvements or any part thereof on Property
or part thereof, and any amounts otherwise owing to City (including water and
sewer charges) by Developer and its successors or transferees; and
(2) To reimburse City the Economic Development Grant to the Developer
provided to the Developer referenced in Section 5.b., and the Relocation
Expense paid to the Developer, as referenced in Section 5.e.
(3) To reimburse Developer up to the amount equal to the cash actually
invested by Developer in making the Minimum Improvements on the City
Property, less any gains or income withdrawn or made by such party from this
Agreement or City's Property.
17. Remedies of the Parties, City and Developer shall be entitled to utilize any
and all remedies or actions at law or in equity available to them and shall be entitled to
obtain judgment for costs and attorney's fees as permitted by law. The parties
specifically agree that each of them shall have the remedy of specific performance in
equity notwithstanding any other provision herein or by law to the contrary.
18. Recording Costs, City shall be responsible for all recording costs,
abstracting charges and transfer taxes in connection with the transfer of the
Developer's Property and the City Property.
19. Dismissal of Legal Action. Upon execution of this Agreement by both
parties, Developer shall dismiss with prejudice the pending legal action EQVC 093006,
The Adams Company v. the City of Dubuque, Iowa and the City Council of the City of
Dubuque, Iowa, Iowa District Court for Dubuque County.
11
20. Termination Date. This Agreement and the rights and obligations of the
parties hereunder shall terminate upon the issuance of the Certificate of Completion by
City to Developer (the "Termination Date").
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.
THE ADAMS COMPANY
THE CITY OF DUBUQUE, IOWA
By: By:.
F:\USERS\WBaum~DevelopmentAgmement_Adams.d25.doc
Prepared by: BarrvA, Lindahl300 Main Street Suite 330 Dubuque lA 52001 563583-4113
MEMORANDUM OF DEVELOPMENT AGREEMENT
A Development Agreement by and among the City of Dubuque, Iowa, an Iowa
municipal corporation, of Dubuque, Iowa, The Adams Company, an Iowa corporation,
was made regarding the following described premises:
Lots 4 and 5 of Dubuque Industrial Center West 2nd Addition in the City of
Dubuque, Iowa
The Development Agreement was signed on the day of ,2003,
and contained covenants, conditions, and restrictions concerning the sale and use of
said premises.
This Memorandum of Development Agreement is recorded for the purpose of
constructive notice. In the event of any conflict between the provisions of this
Memorandum and the Development Agreement itself, executed by the parties, the
terms and provisions of the Development Agreement shall prevail. A complete
counterpart of the Development Agreement, together with any amendments thereto, is
in the possession of the City of Dubuque and may be examined at its offices as above
provided.
DATED this day of ,2003
THE ADAMS COMPANY
CITY OF DUBUQUE, IOWA
By: By:
John Hendry, President
Terrance M. Duggan, Mayor
By:. By:
Jeanne F. Schneider, City Clerk
STATE OF IOWA
DUBUQUE COUNTY
SS'
On this __ day of ., 2003, before me, a Notary Public in and for
the State of Iowa, in and for said county, personally appeared John Hendry and
., to me personally known, who being by me duly sworn did
say that they are the President and of The Adams Company and
that said instrument was signed on behalf of said company by authority of its
members and that they acknowledged the execution of this instrument to be the
voluntary act and deed of said company by it voluntarily executed.
Notary Public, State of Iowa
STATE OF IOWA
DUBUQUE COUNTY
SS:
On this day of ., 2003. before me, a Notary Public in and for the
State of Iowa, in and for said county, personally appeared Terrance M. Duggan and
Jeanne F. Schneider, to me personally known, who being by me duly sworn did say that
they are the Mayor and City Clerk, respectively of the City of Dubuque, a Municipal
Corporation, created and existing under the laws of the State of Iowa, and that the seal
affixed to said instrument is the seal of said Municipal Corporation and that said
instrument was signed and sealed on behalf of said Municipal corporation by authority
and resolution of its City Council and said Mayor and City Clerk acknowledged said
instrument to be the free act and deed of said Municipal Corporation by it voluntarily
executed.
Notary Public, State of Iowa