Terminaton of Lease Agreement with ABC SupplyMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Lease Agreement with ABC Supply
DATE: October 12, 2010
M hael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
Dubuque
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AH- America city
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2007
In 2005 the City worked with the Iowa Department of Transportation (IDOT) to acquire
property owned by Tri -State Industries on lower Main Street. The property was needed
for the expansion of the Julien Dubuque Bridge. The City provided financial incentives
to assist Tri -State Industries in their relocation to the Dubuque Industrial Center West.
In turn, the City received the company's right to purchase any excess property back
from the IDOT. Since that time, the IDOT has leased this property at less than market
rate to ABC Supply. In October 2010, the City finalized a purchase of the IDOT's
excess property which was formerly owned by Tri -State Industries. The current lease
expires on May 31, 2011. If we intend to terminate the lease, and negotiate the terms,
the City must give at least a 180 day notice.
Economic Development Director Dave Heiar recommends City Council authorization to
provide formal notice of the City's intent to terminate the current lease with ABC Supply
as of May 31, 2011, and to further authorize staff to begin negotiations with the
company for a market rate lease.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: Lease Agreement with ABC Supply
DATE: October 8, 2010
Attachment
F: \USERS \Econ Dev\ABC Supply\20101008 Lease with ABC Supply.doc
PURPOSE
This memorandum requests the Council to approve the termination of a lease
agreement with ABC Supply.
RECOMMENDATION
That the City Council authorize City staff to provide formal notice of our intent to
terminate the current lease with ABC Supply as of May 31, 2011 and to further
authorize staff to begin negotiations with the company for a market rate lease.
Dubuque
AI 4metica Ci y
11111
2007
BACKGROUND
In 2005, the City worked with the IDOT to acquire property owned by Tri -State
Industries on lower Main Street (see attached map). The property was needed for the
expansion of the Julien Dubuque Bridge. The City provided financial incentives to
assist Tri -State Industries in their relocation to the DICW. In turn, the City received the
company's right to purchase any excess property back from the IDOT. Since that time,
the IDOT has leased this property at less than market rate to ABC Supply. In October
2010, the City finalized a purchase of the IDOT's excess property which was formerly
owned by Tri -State Industries. The current lease expires on May 31, 2011. If we intend
to terminate the lease, and negotiate the terms, the City must give at least a 180 day
notice.
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plotfiles: ExhibitA.pdf
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Exhibit A
ABC Supply Company K Area Leased to ABC Supply
0 50 100
200 300 400
Feet
THE CITY OF
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