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