Dubuque County Lease_Historic Federal BuildingMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Dubuque County Lease
DATE: June 15, 2010
IC.VanMilli
Mich Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
Dubuque
All- AmedcaCity
2007
Economic Development Director Dave Heiar recommends that a public hearing be set
for July 6, 2010, on a proposed five year lease with Dubuque County for space in the
Historic Federal Building.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manger
FROM: David J. Heiar, Economic Development Director
RE: Dubuque County Lease
DATE: June 14, 2010
The major terms of the proposed lease are as follows:
1. Tenant will lease rooms 301, 306, and 308 for a total of 1123 sq. ft.
2. Tenant is responsible for interior cleaning and property taxes
3. City is responsible for utilities
4. Tenant can terminate lease with a 120 day written notice.
Dubuque
bottil
' r1'
2007
INTRODUCTION
This memorandum presents for City Council review and approval of an amended Lease
Agreement between the City of Dubuque, Iowa and Dubuque County to extend the
original lease for a five year period.
Short term leases (three years or Tess) can be authorized by the City Manager;
however, Iowa law requires that the city hold a public hearing prior to leasing public
property for longer than 3 years. Since Dubuque County has requested a lease for 5
years, the City Council will need to hold a public hearing prior to acting on this lease.
DISCUSSION
On July 1, 2007, the City Council entered into a three -year Lease Agreement with
Dubuque County for leased space in the Federal Building. The proposed lease
amendment extends the lease for a five year period, from July 1, 2010 to June 30,
2015. Most of the lease terms remain the same. The proposed lease rate will increase
by 3% each year.
Further details of the proposed lease are included in the attached lease agreement.
RECOMMENDATION /ACTION STEP
I recommend that the City Council set July 6, 2010 as the date for a public hearing on
the proposed lease with Dubuque County for space in the Historic Federal building.
RESOLUTION NO. 205 -10
INTENT TO DISPOSE OF AN INTEREST IN REAL PROPERTY OWNED BY THE
CITY OF DUBUQUE BY LEASE BETWEEN THE CITY OF DUBUQUE, IOWA AND
DUBUQUE COUNTY
WHEREAS, the City of Dubuque, Iowa (City) owns the real property described as
the Historic Federal Building, located at 350 West 6 th Street in the City of Dubuque,
Iowa; and
WHEREAS, City and Dubuque County have negotiated a Lease Agreement for
space in the Historic Federal Building, a copy of which Lease Agreement is on file at the
office of the City Clerk, City Hall, 13 and Central Avenue, Dubuque, Iowa; and
WHEREAS, the City Council believes it is in the best interests of the City of
Dubuque to approve the Lease Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. The City of Dubuque intends to dispose of its interest in the foregoing -
described real property by Lease Agreement between City and Dubuque County.
Section 2. The City Clerk is hereby authorized and directed to cause this
Resolution and a notice to be published as prescribed by Iowa Code Section 364.7 of a
public hearing on the City's intent to dispose of the foregoing- described real property, to
be held on the 6 th day of July, 2010, at 6:30 o'clock p.m. at the Historic Federal Building,
Council Chambers, 350 W. 6 th Street, Dubuque, Iowa.
Passed, approved and adopted this 21 day of June, 2010.
est: Jeanne F. Schneider, City Clerk
Year
Rent Rate
(per USF)
Rentable
Area
(USF)
Annual Rent
Monthly Rent
Effective Date
Expiration Date
1
$ 12.62
1123
$14,172.26
$ 1,181.02
7/1/2010
6/30/2011
2
$ 13.00
1123
$14,599.00
$ 1,216.58
7/1/2011
6/30/2012
3
$ 13.39
1123
$15,036.97
$ 1,253.08
7/1/2012
6/30/2013
4
$ 13.79
1123
$15,486.17
$ 1,290.51
7/1/2013
6/30/2014
5
$ 14.20
1123
$15,946.60
$ 1,328.88
7/1/2014
6/30/2015
LEASE AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
DUBUQUE COUNTY
This Lease Agreement (the Lease), dated for reference purposes the 6 day of July,
2010, is entered into by and between the City of Dubuque, Iowa (Landlord) whose
address for the purpose of this Lease is 50 West 13 Street, Dubuque IA 52001, and
Dubuque County (Tenant) whose address for the purpose of this Lease is Dubuque
County Attorney's Office, Dubuque County Courthouse, 720 Central Avenue, Dubuque,
IA 52001.
SECTION 1. PREMISES AND TERM. The Landlord, in consideration of the rents,
agreements and conditions herein contained, leases to the Tenant and Tenant leases
from Landlord, according to the terms of this Lease, the following described premises
(the Leased Premises) situated in Dubuque County, Iowa:
• 1123 sq. feet, third floor Federal Building, located at 350 West 6 Street,
Room(s) 301, 306, and 308.
• Use of conference room which is available to all tenants
with the improvements thereon, and all rights, easements and appurtenances, which,
more particularly, includes the space and premises as may be shown on "Exhibit A," if
attached, for a term of five (5) years (the Term), commencing at midnight of the day
previous to the first day of the Lease Term, which shall be July 1, 2010, and ending at
midnight on the last day of the Lease Term, which shall be June 30, 2015, upon the
condition that the Tenant pays rent therefore, and otherwise performs as in this Lease
provided.
SECTION 2. RENTAL. Tenant agrees to pay to Landlord as rental for the Term as
follows:
The first rent payment becoming due on July 1, 2010, and the same amount, per month,
in advance, on the 1 day of each month thereafter, during the Term of this Lease. All
sums shall be paid at the address of Landlord, as above designated, or at such other
place in Iowa, or elsewhere, as the Landlord may, from time to time, designate in
writing. Delinquent payments shall draw interest at 9 % per annum from the due date,
until paid.
SECTION 3. POSSESSION. Tenant shall be entitled to possession on the first day of
the Term of this Lease, and shall yield possession to Landlord at the end of the Term,
except as herein otherwise expressly provided. Should Landlord be unable to give
possession on said date, Tenant's only damages shall be a rebating of the pro rata
rental.
SECTION 4. USE OF PREMISES. Tenant covenants and agrees during the Term of
this Lease to use and to occupy the Leased Premises only for business use.
SECTION 5. QUIET ENJOYMENT. Landlord covenants that its estate in said Leased
Premises is in fee simple and that the Tenant, if not in default, shall peaceably have,
hold and enjoy the Leased Premises for the Term of this Lease. Landlord shall have
the right to mortgage all of its right, title, and interest in the Leased Premises at any time
without notice, subject to this Lease.
SECTION 6. EQUIPMENT, DECORATING, REPLACEMENT, REPAIR AND
MAINTENANCE.
6.1 Definitions.
(1) "Maintain" means to clean and keep in good condition.
(2) "Repair" means to fix and restore to good condition after damage,
deterioration or partial destruction.
6.2 Conditions of Premises.
(1) Tenant takes the Leased Premises in its present condition, except for
such repairs and alterations as may be expressly otherwise provided in this
Lease.
6.3 Repairs and Maintenance.
(1) Landlord shall replace and repair the structural parts of the building. For
purposes of this Lease, the structural parts of the building shall mean the
foundation, exterior walls, load bearing components of interior floors and walls,
the roof and all sewers, pipes, wiring and electrical fixtures outside of the
structure.
(2) Landlord shall be responsible for maintenance of all common area under
Landlord's control. Tenant ,shall be responsible for all maintenance within the
Leased Premises.
(3) Each party shall perform their responsibilities of repair and maintenance to
the end that the Leased Premises will be kept in a safe and serviceable
condition. Neither party will permit nor allow the Leased Premises to be
damaged or depreciated in value by any act, omission to act, or negligence of
itself, its agents or employees.
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6.4 Equipment, Decorating and Alterations.
(1) The following items of equipment, furnishings and fixtures shall be
supplied and replaced by the parties as follows:
Blinds: Landlord
Carpet: Landlord
(2) Any equipment, furnishings or fixtures to be supplied by Tenant shall be
subject to the Landlord's prior written approval as to quality and method of
installation. Tenant shall provide all trade equipment, furnishings and fixtures
used in connection with the operation of its business, such as telephones,
computers, desks, chairs, shelving and similar items.
(3) Tenant shall be responsible for all interior decorating. Tenant shall make
no structural alterations or improvements without the prior written consent of the
Landlord.
6.5 Americans With Disabilities Act.
Tenant will make no unlawful use of the Leased Premises and agrees to comply
with all valid regulations of the Board of Health, City Ordinances , the laws of the
State of Iowa and the federal government, but this provision shall not be
construed as creating any duty by Tenant to members of the general public,
provided, however, responsibility for compliance with the Americans with
Disabilities Act shall be performed and paid for by the parties as follows:
Common areas Landlord: 100%
Tenants' area:
Initial compliance (specify) Landlord: 100%
Future compliance Landlord: 100%
SECTION 7. UTILITIES AND SERVICES. Utilities and services shall be furnished
and paid for by the parties as follows:
PROVIDED BY: PAID BY:
% Landlord % Tenant
Electricity Landlord 100 0
Gas Landlord 100 0
Water and Sewer Landlord 100 0
Garbage/Trash Landlord 100 0
Property Taxes Tenant 0 100
Janitor /Cleaning Tenant 0 100
Common areas Landlord 100 0
Other: Tenant 0 100
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SECTION 8. TERMINATION, SURRENDER OF PREMISES AT END OF TERM --
REMOVAL OF FIXTURES.
8.1 Termination. This Lease shall terminate upon expiration of the original Term.
Either party may terminate this Lease by giving not less than 120 day's written notice to
the other commencing with the day after the date of mailing such notice to the other
party.
8.2 Surrender. Tenant agrees that upon termination of this Lease it will surrender
and deliver the Leased Premises in good and clean condition, except the effects of
ordinary wear and tear and depreciation arising from lapse of time, or damage without
fault or liability of Tenant.
8.3 Holding Over. Continued possession by Tenant, beyond the expiration of its
tenancy, coupled with the receipt of the specified rental by Landlord (and absent a
written agreement by both parties for an extension of this Lease, or for a new lease)
shall constitute a month to month extension of this Lease.
8.4 Removal of Fixtures. Tenant may, at the expiration of its tenancy, if Tenant is
not in default, remove any fixtures or equipment which Tenant has installed in the
Leased Premises, providing Tenant repairs any and all damages caused by removal.
SECTION 9. ASSIGNMENT AND SUBLETTING. Any assignment of this Lease or
subletting of the Leased Premises or any part thereof, without the Landlord's written
permission shall, at the option of the Landlord, make the rental for the balance of the
Lease Term due and payable at once. Such written permission shall not be
unreasonably withheld.
SECTION 10. INSURANCE.
10.1 Property Insurance. Not applicable.
10.2 Liability and Indemnification. Not applicable.
10.3 Certificates Of Insurance. Not applicable.
10.4 Acts By Tenant. Tenant will not do or omit doing of any act which would
invalidate any insurance, or increase the insurance rates in force on the Leased
Premises.
10.5 Recommendations - Iowa Insurance Services Office. Not applicable.
10.6 Copy of Lease to Insurer. Not applicable.
SECTION 11. LIABILITY FOR DAMAGE. Each party shall be liable to the other for all
damage to the property of the other negligently, recklessly or intentionally caused by
that party (or their agents, employees or invitees), except to the extent the loss is
insured and subrogation is waived under the owner's policy.
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SECTION 12. INDEMNITY. (see section 10.2)
SECTION 13. FIRE AND CASUALTY.
13.1 Partial Destruction of Premises. In the event of a partial destruction or
damage of the Leased Premises, which is a business interference which prevents the
conducting of a normal business operation and which damage is repairable within 60
days after its occurrences, this Lease shall not terminate but the rent for the Leased
Premises shall abate during the time of such business interference. In the event of a
partial destruction, Landlord shall repair such damages within 60 days of its occurrence
unless prevented from doing so by acts of God, government regulations, or other
causes beyond Landlord's reasonable control.
13.2 Zoning. Should the zoning ordinance of the municipality in which this property is
located make it impossible for Landlord to repair or rebuild so that Tenant is not able to
conduct its business on the Leased Premises, then such partial destruction shall be
treated as a total destruction as provided in the next paragraph.
13.3 Total Destruction of Business Use. In the event of a destruction or damage of
the Leased Premises including the parking area (if parking area is a part of this Lease)
so that Tenant is not able to conduct its business on the Leased Premises or the then
current legal use for which the Leased Premises are being used and which damages
cannot be repaired within 60 days, this Lease may be terminated at the option of either
the Landlord or Tenant. Such termination in such event shall be effected by written
notice of one party to the other, within 20 days after such destruction. Tenant shall
surrender possession within 10 days after such notice issues and each party shall be
released from all future obligations, and Tenant shall pay rent pro rata only to the date
of such destruction. In the event of such termination of this Lease, Landlord at its
option, may rebuild or not, at its discretion.
SECTION 14. CONDEMNATION.
14.1 Disposition of Awards. Should the whole or any part of the Leased Premises
be condemned or taken for any public or quasi - public purpose, each party shall be
entitled to retain, as its own property, any award payable to it. Or in the event that a
single entire award is made on account of the condemnation, each party will then be
entitled to take such proportion of said award as may be fair and reasonable.
14.2 Date of Lease Termination. If the whole of the Leased Premises shall be
condemned or taken, Landlord shall not be liable to Tenant except and as its rights are
preserved in paragraph 13.1 above.
SECTION 15. DEFAULT, NOTICE OF DEFAULT AND REMEDIES.
15.1 Events of Default.
(1) Each of the following shall constitute an event of default by Tenant:
5
(a) Failure to pay rent when due.
(b) Failure to observe or perform any duties, obligations, agreements
or conditions imposed on Tenant pursuant to terms of the Lease.
(c) Abandonment of the Leased Premises. "Abandonment" means
Tenant has failed to engage in its usual and customary business activities
on the Leased Premises for more than fifteen (15) consecutive business
days.
(d) Institution of voluntary bankruptcy proceedings in which the Court
orders relief against the Tenant as a debtor; assignment for the benefit of
creditors of the interest of Tenant under this Lease agreement;
appointment of a receiver for the property or affairs of Tenant, where the
receivership is not vacated within ten (10) days after the appointment of
the receiver.
15.2 Notice of Default. Landlord shall give Tenant a written notice specifying the
default and giving the Tenant ten (10) days in which to correct the default. If there is a
default (other than for nonpayment of a monetary obligation of Tenant, including rent)
that cannot be remedied in ten (10) days by diligent efforts of the Tenant, Tenant shall
propose an additional period of time in which to remedy the default. Consent to
additional time shall not be unreasonably withheld by Landlord. Landlord shall not be
required to give Tenant any more than three notices for the same default within any 365
day period.
15.3 Remedies. In the event Tenant has not remedied a default in a timely manner
following a Notice of Default, Landlord may proceed with all available remedies at law or
in equity, including but not limited to the following:
(1) Termination. Landlord may declare this Lease to be terminated and shall
give Tenant a written notice of such termination. In the event of termination of
this Lease, Landlord shall be entitled to prove claim for and obtain judgment
against Tenant for the balance of the rent agreed to be paid for the Term herein
provided, plus all expenses of Landlord in regaining possession of the Leased
Premises and the reletting thereof, including attorney's fees and court costs,
crediting against such claim, however, any amount obtained by reason of such
reletting.
(2) Forfeiture. If a default is not remedied in a timely manner, Landlord may
then declare this Lease to be forfeited and shall give the Tenant a written notice
of such forfeiture, and may, at the time, give Tenant the notice to quit provided
for in Chapter 648 of the Code of Iowa.
SECTION 16. RIGHT OF EITHER PARTY TO MAKE GOOD ANY DEFAULT OF THE
OTHER. If default shall be made by either party in the performance of, or compliance
with, any of the terms or conditions of this Lease, and such default shall have continued
6
for thirty (30) days after written notice thereof from one party to the other, the person
aggrieved, in addition to all other remedies now or hereafter provided by law, may, but
need not, perform such term or condition, or make good such default and any amount
advanced shall be repaid forthwith on demand, together with interest at the rate of 9%
per annum, from date of advance.
SECTION 17. SIGNS. Tenant shall not attach, paint or exhibit any signs on the
Leased Premises.
SECTION 18. MECHANIC'S LIENS. Neither Tenant nor anyone claiming by, through,
or under Tenant, shall have the right to file or place any mechanic's liens or other lien of
any kind or character whatsoever, upon said Leased Premises or upon any building or
improvement thereon, or upon the leasehold interest of Tenant, and notice is hereby
given that no contractor, sub - contractor, or anyone else who may furnish any material,
service or labor for any building, improvements, alteration, repairs or any part thereof,
shall at any time be or become entitled to any lien on the Leased Premises, and for the
further security of Landlord, Tenant covenants and agrees to give actual notice thereof
in advance, to any and all contractors and sub - contractors who may furnish or agree to
furnish any such material, service or labor.
SECTION 19. LANDLORD'S LIEN AND SECURITY INTEREST.
19.1 Landlord's Lien. Landlord shall have, in addition to any lien given by law, a
security interest as provided by the Uniform Commercial Code of Iowa, upon all
personal property and all substitutions thereof, kept and used on said Leased Premises
by Tenant. Landlord may proceed at law or in equity with any remedy provided by law
or by this Lease for the recovery of rent, or for termination of this Lease because of
Tenant's default in its performance.
SECTION 20. ENVIRONMENTAL.
20.1 Landlord. To the best of Landlord's knowledge to date:
(1) Neither Landlord nor Landlord's former or present tenants are subject to
any investigation concerning the Leased Premises by any governmental authority
under any applicable federal, state, or local codes, rules and regulations
pertaining to air and water quality, the handling, transportation, storage,
treatment, usage, or disposal of toxic or hazardous substances, air emissions,
other environmental matters, and all zoning and other land use matters.
(2) Any handling, transportation, storage, treatment, or use of toxic or
hazardous substances that has occurred on the Leased Premises has been in
compliance with all applicable federal, state and local codes, rules and
regulations.
(3) No leak, spill release, discharge, emission or disposal of toxic or
hazardous substances has occurred on the Leased Premises.
7
(4) The soil, groundwater, and soil vapor on or under the Leased Premises is
free of toxic or hazardous substances.
(5) Landlord shall assume liability and shall indemnify and hold Tenant
harmless against all liability or expense arising from any condition which existed,
whether known or unknown, at the time of execution of the Lease which condition
is not a result of actions of Tenant or which condition arises after date of
execution but which is not a result of actions of Tenant.
20.2 Tenant. Tenant expressly represents and agrees:
(1) During the Lease Term, Tenant's use of the Leased Premises will not
include the use of any hazardous substance without Tenant first obtaining the
written consent of Landlord. Tenant understands and agrees that Landlord's
consent is at Landlord's sole option and complete discretion and that such
consent may be withheld or may be granted with any conditions or requirements
that Landlord deems appropriate.
(2) During the Lease Term, Tenant shall be fully liable for all costs and
expenses related to the use, storage, removal and disposal of hazardous
substances used or kept on the Leased Premises by Tenant, and Tenant shall
give immediate notice to Landlord of any violation or any potential violation of any
environmental regulation, rule, statute or ordinance relating to the use, storage or
disposal of any hazardous substance.
(3) Tenant, at its sole cost and expense, agrees to remediate, correct or
remove from the Leased Premises any contamination of the property caused by
any hazardous substances which have been used or permitted by Tenant on the
Leased Premises during any term of this Lease. Remediation, correction or
removal shall be in a safe and reasonable manner, and in conformance with all
applicable laws, rules and regulations. Tenant reserves all rights allowed by law
to seek indemnity or contribution from any person, other than Landlord, who is or
may be liable for any such cost and expense.
(4) Tenant agrees to indemnify and hold Landlord harmless from and against
all claims, causes of action, damages, loss, costs, expense, penalties, fines,
lawsuits, liabilities, attorney fees, engineering and consulting fees, arising out of
or in any manner connected with hazardous substances, which are caused or
created by Tenant on or after the date of this Lease and during any term of this
Lease, including, but not limited to, injury or death to persons or damage to
property, and including any diminution of the value of any Leased Premises
which may result from the foregoing. This indemnity shall survive the cessation,
termination, abandonment or expiration of this Lease.
SECTION 21. SUBSTITUTION OF EQUIPMENT, MERCHANDISE. ETC.
21.1 Tenant's Property. During its tenancy, Tenant shall have the right to sell or
otherwise dispose of any personal property of Tenant situated on the Leased Premises,
8
when in the judgment of Tenant it shall have become obsolete, outworn or unnecessary
in connection with the operation of the business on the Leased Premises; provided,
however, that Tenant shall, in such instance (unless no substituted article or item is
necessary) at its own expense, substitute for such items a new or other item in
substitution thereof, in like or greater value.
21.2 Inventory. Nothing herein contained shall be construed as denying to Tenant
the right to dispose of inventoried merchandise in the ordinary course of Tenant's trade
or business.
SECTION 22. RIGHTS CUMULATIVE. The various rights, powers, options, elections
and remedies of either party, provided in this Lease, shall be construed as cumulative
and no one of them as exclusive of the others, or exclusive of any rights, remedies or
priorities allowed either party by law, and shall in no way affect or impair the right of
either party to pursue any other equitable or legal remedy to which either party may be
entitled as long as any default remains in any way unremedied, unsatisfied or
undischarged.
SECTION 23. NOTICES AND DEMANDS. Notices as provided for in this Lease shall
be given to the respective parties hereto at the respective addresses designated on
page one of this Lease unless either party notifies the other, in writing, of a different
address. Without prejudice to any other method of notifying a party in writing or making
a demand or other communication, such message shall be considered given under the
terms of this Lease when sent, addressed as above designated, postage prepaid, by
certified mail deposited in a United States mail box.
SECTION 24. PROVISIONS TO BIND AND BENEFIT SUCCESSORS, ASSIGNS,
ETC. Each and every covenant and agreement herein contained shall extend to and be
binding upon the respective successors, heirs, administrators, executors and assigns of
the parties; except that if any part of this Lease is held in joint tenancy, the successor in
interest shall be the surviving joint tenant.
SECTION 25. CHANGES TO BE IN WRITING. None of the covenants, provisions,
terms or conditions of this Lease shall be modified, waived or abandoned, except by a
written instrument duly signed by the parties. This lease contains the whole agreement
of the parties.
SECTION 26. RELEASE OF DOWER. Spouse of Landlord appears as a signatory to
this Lease solely for the purpose of releasing dower, or distributive share, unless said
spouse is also a co -owner of an interest in the Leased Premises.
SECTION 27. CONSTRUCTION. Words and phrases herein, including
acknowledgment hereof, shall be construed as in the singular or plural number, and as
masculine, feminine or neuter gender according to the context.
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LANDLORD TENANT
CITY OF DUBUQUE DUBUQUE COUNTY
By:
Michael C. Van Milligen
City Manager
10
By:
Ken Runde
Sheriff
By:
County Attorney