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Signed Contract_JELD_WEN Chipper AgreementMasterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: Aaron M. DeJong, Asst. Economic Development Director /O SUBJECT: JELD -WEN Chipper Agreement DATE: January 27, 2010 Dubuque AII•AmelicaCily 11111, 2007 INTRODUCTION This memorandum is to summarize the need for an agreement with JELD -WEN to reimburse the company for costs incurred to make modifications to their Chipper on Jackson Street. BACKGROUND The City was awarded a TIGER grant to reconstruct certain streets within the Historic Millwork District. This includes Jackson Street where JELD -WEN has their wood chipper. The chipper is where the wood product enters the facility. DISCUSSION JELD WEN must have regular deliveries of wood to the facility to maintain an appropriate supply of wood fiber for their operations. Gardner Lance, General Manager for JELD -WEN, has stated the chipper can only be out of service for 24 hours before wood supply levels are decreased to an amount that would impact their operations. When the street reconstruction project gets to the wood chipper, JELD -WEN must have the ability to Toad wood into the facility from the South while the street contractor reconstructs the street on the North. The chipper can be modified for under $8,000 to allow wood to be loaded from either the North or South. This modification will help the street contractor make their improvements while not inconveniencing JELD -WEN. City Attorney Barry Lindahl has researched whether the City Manager can enter into this agreement on behalf of the City Council. Since the amount committed ($8,000) in the agreement is under the threshold for Council approval, the City Manager can execute the document. These funds will come from the TIGER Grant award as it is a needed modification for the street reconstruction. RECOMMENDATION /ACTION STEP It is my recommendation to have the City Manager execute the attached Chipper Agreement with JELD -WEN to have the City reimburse the company for costs associated with making the needed modifications to the chipper. F: \USERS \Econ Dev \Warehouse District\Jeld- WEN\20110127 JELD WEN chipper memo to MVM.docx AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND JELD -WEN, INC. This Agreement, dated for reference purposes th ey` day of UChX -rV/ , 2011, is made and entered into by and between the City of Dubuque, Iowa (City) and JELD -WEN, Inc. (JELD -WEN), an Oregon corporation. WHEREAS, JELD -WEN is the owner of the property at 800 Jackson Street located in the Historic Millwork District and operates a manufacturing business at that location; and and WHEREAS, a part of JELD -WEN's business is a wood chipper (the Chipper); WHEREAS, City intends to construct certain public improvements in the Historic Millwork District which will require that JELD -WEN make certain adjustments to the Chipper, including a rolling overhead door with an estimated cost of $8,000; and WHEREAS, JELD -WEN has agreed to make such adjustments to the Chipper on the condition that City reimburse JELD -WEN for the costs of such adjustments; and WHEREAS, City has agreed to reimburse JELD -WEN for the costs of such adjustments on the terms and conditions set forth herein. NOW THEREFORE; 1. JELD -WEN agrees to make such adjustments to the Chipper as City reasonably determines are necessary to accommodate City's public improvements. City will provide JELD -WEN with written plans for the public improvements so JELD -WEN can make the required adjustments to the Chipper. JELD -WEN agrees to use commercially reasonable efforts to ensure that all necessary improvements are made within 60 days after receipt of the written plans from City. 2. City will reimburse JELD -WEN for the actual costs of all such adjustments but in no event to exceed the total of $8,000 within thirty (30) days of statements from JELD- WEN for such costs. CITY OF DUBUQUE, IOWA JELD -WEN INC. By: By: g Michael C. Van Milligen Gardner Lance City Manager General Manager