Agri Grain Market Assign LeaseMEMORANDUM
February 10, 2004
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Agri Grain Marketing, LLC Assignment of Real Estate Leases
Public Works Director Mike Koch recommends City Council approval of assignment of
Agri Grain Marketing, LLC's leases with the City of Dubuque to Cargill, Incorporated, as
of March 1, 2004.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mict~ael C. Van Milligen
MCVM/jh .
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Michael A. Koch, Public Works Director
MEMORANDUM
Februaw 9,2004
TO:
FROM:
Michael C. Van Milligen, City Manager
Michael A. Koch, Public Works Director
SUBJECT: Agri Grain Marketing, LLC Assignment of Real Estate Leases
INTRODUCTION
On January 14, 2004, Agri Grain Marketing, LLC (ACM) requested that their
leases with the City be assigned to Cargill, Incorporated (Cargill).
DISCUSSION
The effective date of the assignment of the leases is scheduled for Mamh 1,
2004, at which time, the leases will revert back to Cargill, Incorporated. The Agri
Grain Marketing, LLC will assign all of their interest, obligations, and liabilities in
the existing leases with the City to Cargill.
The City has reviewed the assignment agreements between Agri Grain
Marketing, LLC and Cargill, Incorporated and has found the assignment to be
proper.
The lease agreements state that the lessee shall have the right to sublet or
assign any of its rights, in and to the leased premises, to any person or concern
with prior written consent of the lessor to the end that the lessor's interests shall
be fully protected and which approval of lessor shall not be unreasonably
withheld.
RECOMMENDATION
I recommend that the City Council approve the assignment of real estate and
lease agreements with Cargill, Incorporated.
cc: Debrah W. Genellie, Cargill
RESOLUTION NO. 70-04
RESOLUTION CONSENTING TO THE ASSIGNMENT OF LEASES
BET~NEEN THE CITY OF DUBUQUE AND AGRI GRAIN MARKETING, LLC
TO CARGILL, INCORPORATED
Whereas, Agd Grain Marketing, LLC (AGM) intends to assign its interest
in its leases with the City of Dubuque to Cargill, Incorporated; and
Whereas, the existing leases stipulate that the Lessee has the dght to
assign its leases to any person or concern, with pdor written approval of the
Lessor in that the Lessor's interest shall be fully protected and which approval of
the Lessor shall not be unreasonably withheld; and
Whereas, the City Council has determined that it is in the best interest of
the City to consent to the assignment of the leases to Cargill, Incorporated.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That approval be granted to Agd Grain Marketing, LLC to
assign its current leases to Cargill, Incorporated dated July 25, 1962, amended
January 9, 1964, February 24, 1971, January 29, 1974, August 21, 1978, and
lease dated March 29, 1978 all with the City of Dubuque as assigned to Agri
Grain Marketing, LLC on May 21, 2001 (Resolution 624-99).
Section 2. That the assignment to Cargill, Incorporated is bound by all
stated terms and conditions of the existing leases between the City of Dubuque
and Agri Grain Marketing, LLC.
Passed, approved and adopted this 16th
day of February , 2004.
Terrance M. Duggan, Mayor
Attest:.
Jeanne F. Schneider, CMC, City Clerk
,.TAN 1~ '0,4 15:25 FR CARGILL L~O DF_PT
P.01/02
January 14, 2004
Po~t4t' Fax Note 7671 ~e/~/... · # of ~. ·
' IPages ~
VI[A FAX: (563) 589-4149 ....................
Mike Koch
Public Works Director
The City of Dubuque
50 West 13t~ Street
Dubuque, Iowa 520014864
RE: Assignment of lease due to Dissolution ofAgri Omin Marketing, LLC ("AGM")
Our File No. Lt 6044-504 and 504.0001
Leases and agreements dated July
January 29, 1974, August 21, 1978, March 29, 1978 with the City of Dubuque all assigned to
AGM on May 21, 2001 (the "Lease")
Dear Mr. Koch:
As you may know, AOM is a joint venture company owned by. Cargill, Incorporated and
American Grain & Related Industries ("AGRI"). AORI and Cargill have agreed to dissolve
AGM on March l, 200~, at which time operation of the Dubuque, Iowa facility will revert back
to Cargill. Consequently, AGM will also assign its interest inflae above referenced Lease to
Cargill as of this date and Cargill will assume alt of Lhe obligations and liabilities o£AGM under
the Lease. A copy of the executed Assignment Agreement between AGM and Cargill will be
provided to you following execution on March l, 2£~)4.
CargilI and AGM hereby request that the City of Dubuque consent to the assignment of the Lease
from AGM to Cargill. Please signify the City of Dubuque's consent by signing in the space provided
below and returning an executed original of this letter to me.
If you have any questions, please contact me or Cargill's in-house attorney for this matter. Brian
Pioske at (952) 742-6388.
Sincerely,
Debrah W. Genellie
Contract Paralegal
DWG:jev
:.(330207)
B. Pioske/Law/24
M-Martin/AGM;rWest Des Molnes, IA
Debrah W, Genellie
C~nr~:~c~ Pa~Icg~l
(952) 7424366
Mailing Addre~;
P.O. Box 5624
Mirme~0olls, MN 554404624
Location/Shippigg Addre~:
! 54ff/Me. Ginty Roa~ W¢~
WayzaTa, ~ 55391-5624
Facsimile;
(952) 7424~49
or (9~2) 742-7503