Interstate Power 2nd Amend AgreMEMORANDUM
May 23, 2003
TO:The Honorable Mayor and City Council Members
FROM:Michael C. Van Milligen, City Manager
SUBJECT:Second Amendment to Development Agreement Between City and
Interstate Power and Light Company
Economic Development Director Bill Baum recommends City Council approval of a
Second Amendment to the Development Agreement between the city and Interstate
Power and Light Company providing for the development of property purchased by
Interstate Power in the Dubuque Industrial Center West. The Development Agreement
anticipated construction of the facility to be complete 18 months after a 2002
commencement. Due to the volatility of the state and national economy and its effects
on the gas and electric industry, Interstate Power and Light Company has requested to
delay completion of construction until on or before December 31, 2007. They will,
however, be completing a $1.7 million substation along Seippel Road in 2004.
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
May 22,2003
TO:Michael Van Milligen, City Manager
FROM:William Baum, Economic Development Director
SUBJECT:Second Amendment to Development Agreement Between City and
Interstate Power and Light Company
INTRODUCTION
This memorandum presents for City Council consideration a Second Amendment to the
Development Agreement between the City and Interstate Power and Light Company
providing for the development of property purchased by Interstate Power in the
Dubuque Industrial Center West. The Second Amendment is attached to this
memorandum.
DISCUSSION
On November 19, 2001, the City Council approved a Development Agreement with
Interstate Power Company following a public hearing. The Agreement set out the terms
and conditions of the sale and development of land in the Dubuque Industrial Center
West. At the time of the Agreement, the proposed schedule for construction of a new
Dubuque Operations Center anticipated construction of the facility to be complete 18
months after a 2002 commencement.
The attached letter from John O. Larsen, Managing Director, requests a time extension
for the project. Due to the volatility of the state and national economy and its effects on
the gas and electric industry, their construction plans have been delayed. They will,
however, be completing a $1.7 million substation along Seippel Road in 2004.
RECOMMENDATION
I recommend that the City Council approve the attached Second Amendment to
Development Agreement and authorize the Mayor and City Clerk to sign on their behalf.
attachment
F:\USERS\Pmyh re\WPDOCS~LOANDOC~ALLIANT~dvlEND2,mem.doc
SECOND AMENDMENT TO
DEVELOPMENT AGREEMENT
This Second Amendment to Development Agreement (the "Amendment') is made as of
the 2nd day of June, 2003, by and between the City of Dubuque, Iowa, a municipality (the "City")
established pursuant to the Code of Iowa of the State of Iowa and acting under authorization of
Chapter 403 of the Code of Iowa, as amended, and Interstate Power and Light Company, an
Iowa corporation, formerly known as Interstate Power Company (the ~Developer").
WHEREAS, the City and the Developer are parties to a Development Agreement dated
as of November 19, 2001, and as further amended, (the "Development Agreement"), with
respect to the construction of certain Minimum Improvements on the Development Property
described therein; and
WHEREAS, the Development Agreement provides for construction of Minimum
Improvements to commence in 2002 with completion eighteen months thereafter; and
WHEREAS, the parties have determined to amend the Development Agreement so as to
provide an extension through the year 2007 for completion of construction.
NOW, THEREFORE, in consideration of the premises and the mutual obligations ofthe
parties thereto, each of them does hereby covenant and agree with the other as follows:
Section 1. Timing of Improvements. The parties hereby acknowledge and agree that
construction of Minimum Improvements on Property shall be substantially completed on or
before December 31, 2007.
Section 2. Ratification. Except as set forth herein, all ofthe terms and conditions of
the Development Agreement are herebyratified, confirmed and approved and remain in full
force and effect as provided therein.
Section 3. Bindin,q Effect. This Amendment shall be binding upon and shall enure to
the benefit of the City and the Developer and their respective successors and assigns.
IN WITNESS WHEREOF, the parties have caused this Amendment to be e)ecuted by
their respective duly authorized officers or representatives, as of or on the day first written
above.
CITY OF DUBUQUE, IOWA
By: Terrance M. Duggan, Mayor
ATTEST:
By: Jeanne F. Schneider, City Clerk
INTERSTATE POWER AND LIGHT COMPANY
By:
John O. Larsen
Managing Director
F:\USERS~Pmyhre\WPDOCS',LOANDOC~ALLIANT~amendment;dev.doc
ALLIANT
ENERGY
Honorable Mayor and City Council
City of Dubuque
Dubuque, Iowa
May 15, 2003
Managing Director
Agiant Energy Corporation
1000 Main Street
P.0. Box 769
Dubuque, IA 52~04-076g
Re:Alliant Energy's New Operations Center
Subject:Request for Completion Date Change
Dear Honorable Mayor and City Council,
On November 19, 2001, the Dubuque City Council adopted Resolution 495-01, allowing
Interstate Power and Light Company (IPL) (formerly known as Interstate Power
Company) an Alliant Energy Company, to purchase 16.7 acres of land in the Dubuque
Industrial Center West 2nd Addition.
The development agreement contained within the provisions of the adopted resolution
stated that IPL would commence with "Minimum Improvements" On the acquired land
during calendar year 2002, end consmaetinn of the new Operations Center in Dubuque
would bo completed within eighteen months. This letter respectfully requests an
extenmon of the required time for completion of the Dubuque Operations Center.
Our company is meeting the obligations of the commencement dates stated in Resolution
495-01. The work on the Dubuque Operations Center began in 2002 with soils
investigation, topographic survey work and schematic design work. The company is
currently proceeding with the preparations of the detailed facility plans end
specifications, end anticipates completion of this phase in July 2003.
Our company is requesting an extension of time for the completion of the Dubuque
Operations Center. The request is based upon Alliant Energy's efforts to focus its
resources on increasing the reliability of our electric and gas systems. In addition, the
volatility of the state and national economy is presenting the gas and electric industry
with unique challenges at this juncture.
We are requesting an extension through the year 2007 for the completion of the Dubuque
Operations Center. As demonstrated with our continued efforts on the design phase of
this project, IPL is committed to constructing a new operations center in Dubuque. It is
our intent to complete the design work of tho project and initiate the construction phase
as soon as it is feasible.
While we are proposing to delay our operations center we are proceeding with the
construction of the new IPL Seipel Road Substation, located in Dubuque's Industrial
Center West. The completion of the $1.7 million substation is scheduled for 2004, and
will support the canxent and future energy needs of Dubuque's industrial partners.
Thank you for your consideration of this request.
Sincerely,
John O. Larsen
Managing Director
cc: Vern Gebhart
Steve Baker
Steve Gladson
Dave I-Iingtgen