Star Brew Amend Lease Roof Pro
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MEMORANDUM
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August 10, 2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Amendment to Lease with Historical Star Redevelopment, LLC
Star Brewery Building Roofing Project
On March 16, 2004, the City Council entered into a one-year lease with Historical Star
Redevelopment, LLC to complete preliminary rehabilitation of the Star Brewery building.
The Phase 1 construction work will be completed in mid-August. On inspection of the
work completed and through further discovery during the Phase 1 work, it became
apparent that complete roof replacement should be considered prior to winter to protect
the newly-repaired masonry and interior.
Economic Development Director Bill Baum recommends City Council approval of an
amendment to the Lease with Historical Star Redevelopment, LLC to extend an
additional $210,000 in loan proceeds to complete roof replacement on the Star Brewery
building.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael c. Van Milligen -
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
August 9, 2004
FROM:
Michael Van Milligen, City Manager
William Baum, Economic Development Director1!p~
Amendment to Lease Agreement with Historical Star Redevelopment,
LLC. for the Star Brewery Building Roofing Project
TO:
SUBJECT:
INTRODUCTION
This memorandum presents for City Council review and approval a Resolution
authorizing an amendment to the Lease Agreement with Historical Star
Redevelopment, L.L.C. to extend additional funds to complete roof replacement on the
Star Brewery building under Phase 1 construction work.
DISCUSSION
On March 16,2004, the City Council entered into a one-year Lease Agreement with
Historical Star Redevelopment, L.L.C. (a limited liability company of The Alexander
Company) to complete preliminary rehabilitation of the Star Brewery building. The
Phase 1 construction work, including environmental remediation, gutting the interior,
complete tuckpointing of the exterior, interior sandblasting, removal of the red tin
addition and certain structural repairs, will be completed mid-August. Kraemer Brothers
has been the general contractor for that work.
On inspection of the work completed and through further discovery during the Phase 1
work, it became apparent that complete roof replacement should be considered prior to
winter to protect the newly repaired masonry and interior. The existing condition of the
roof, especially with the heavy springtime rains, has deteriorated substantially more
than initially anticipated.
Kraemer Brothers has estimated that the complete roof replacement cost will not
exceed $210,000. Rich Russell, Building Services Manager, has concurred that the
estimate is reasonable for new EPDM roofing and insulation of all roof surfaces. Other
aspects of the roof replacement project are identified in the attached letter dated July
27, 2004 from Kraemer Brothers. They anticipate a two-month construction period that
will be easily accommodated before winter.
RECOMMENDATION
I would recommend the City Council approve the amendment to the Lease Amendment
authorizing an additional $210,000 loan to Historical Star Redevelopment, L.L.C. to
complete the additional rehabilitation work to the Star Brewery building. The existing
loan agreement for Phase 1 construction work is $800,000 and will be increased to
$1,010,000 subject to the same terms and conditions. The source of additional funding
is UDAG funds of which $300,000 has previously been allocated in a CIP for this
project.
ACTION STEP
The action step for the City Council is to adopt the attached Resolution.
attachments
F :IU S ERS\Pmyh re IWP DOCSILOAN DOC\Alexanderlroofamend ment mem, doc
RESOLUTION NO. 324-04
AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO LEASE AGREEMENT
WITH HISTORICAL STAR REDEVELOPMENT, L.L.C. FOR THE STAR BREWERY
BUILDING
Whereas, the City Council of the City of Dubuque, Iowa, after public hearing, duly
entered into a one-year Lease Agreement with Historical Star Redevelopment, LLC.
(Developer) for the Star Brewery Building; and
Whereas, the Lease Agreement provides for a Loan Agreement with Developer in
an amount of $800,000 to complete certain Phase 1 construction activities associated with
the rehabilitation of the Star Brewery Building; and
Whereas, additional rehabilitation work in an amount not to exceed $210,000 is
needed in Phase 1 to secure the building roof system; and
Whereas, a First Amendment to Lease Agreement, hereto attached and by this
reference made a part hereof, sets forth the terms and conditions of the increase in the
loan amount to Developer.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the First Amendment to Lease Agreement by and between the City of
Dubuque and Historical Star Redevelopment, LL.C., attached hereto, is hereby approved.
Section 2. That the Mayor and City Clerk are hereby authorized and directed to
execute, on behalf of the City of Dubuque, Iowa, the First Amendment to Lease
Agreement.
Passed, approved and adopted this 16th day of August 2004.
Daniel E. Nicholson. Mayor Pro-Tern
Attest:
Jeanne F. Schneider, City Clerk
'/:?/:Z.:.-> . ~/ Á- J
anne F. Schneider
City Clerk
F: IUS E RSIPmyh re IWPDOCSIL OANDOClAlexanderlroofamendment. res. doc
FIRST AMENDMENT
TO
LEASE AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
HISTORICAL STAR REDEVELOPMENT, LLC.
THIS AMENDMENT (the "Amendment"), made and executed as of this - day of
, 2004, by and between the CITY OF DUBUQUE, IOWA (the "Lessor") and
HISTORICAL STAR REDEVELOPMENT, LLC. (the "Lessee").
WITNESSETH:
WHEREAS, the above-identified parties have executed a certain Lease Agreement dated
March 16, 2004 for the lease, redevelopment and use of certain real property located in the City of
Dubuque, County of Dubuque, State of Iowa, namely, the Star Brewery Building (the "Property")
which is more fully described as:
Lot 2 of Riverwalk 5th Addition in the City of Dubuque; and
WHEREAS, the Lease Agreement provided for a loan by City to Developer for the
redevelopment of the Star Brewery Building; and
WHEREAS, the parties desire to amend the Lease Agreement in order to increase the loan
amount to complete roof replacement on the Star Brewery Building.
NOW, THEREFORE, in consideration of the Lease Agreement, the foregoing recitals, the
mutual covenants, terms and conditions hereinafter set forth and other valuable consideration, the
receipt and sufficiency of which hereby are acknowledged, the Lessor and Lessee do hereby agree
to modify, amend and supplement the Lease Agreement, as follows:
1. Leqal Name of LLC. The parties hereby acknowledge and agree that any reference
in the Lease Agreement to "Historic Star Redevelopment, L.L.C." shall be deemed to mean
"Historical Star Redevelopment, L.L.C."
2. Exhibit "B" Minimum Improvements.. The parties hereby acknowledge and agree
that Exhibit B shall be amended by adding "Complete Building Roof Replacement $210,000.00" to
the list of Minimum Improvements with the "Total Preliminary Phase Cost" on Exhibit B amended to
read "$1,010,000.00".
3. Exhibit "C" Description of Financial Assistance and Construction Assistance.
The parties hereby acknowledge and agree that Exhibit C is amended to provide that the reference to
"a Star Brewery Construction Loan of $150,000" shall be amended to read "$360,000" to reflect the
additional $210,000 being funded for the complete building roof replacement.
4. Exhibit C.1 CDBG Commercial/Industrial Buildinq Rehabilitation Loan Aqreement
Number: CDBG #1-04. The parties hereby acknowledge and agree that the reference in Section 1
of the Loan Agreement to "one hundred fifty thousand dollars ($150,000)" shall be amended to read
"three hundred sixty thousand dollars ($360,000)" to reflect the additional $210,000 being funded for
the complete building roof replacement. All other references to "eight hundred thousand dollars
($800,000)" or "$800,000" in the Loan Agreement shall be amended to read "one million ten
thousand dollars ($1,010,000)" or "$1,010,000" to reflect the additional $210,000 being funded for the
complete building roof replacement.
5. Ratification and Reaffirmation. The parties hereby ratify and reaffirm all terms and
conditions of the Lease Agreement which are not expressly modified, amended or supplemented
herein and acknowledge and agree that the Lease Agreement, as modified, amended and
supplemented hereby, shall be and hereby is reinstated and shall continue in full force and effect for
the duration and the extent therein provided.
IN WITNESS WHEREOF, the parties have caused this First Amendment to Lease Agreement
to be executed by their respective duly authorized officers or representatives as of the date and year
first above written.
CITY OF DUBUQUE, IOWA
(the "Lessor")
HISTORICAL STAR REDEVELOPMENT, LLC.
(the "Lessee")
by:
Terrance M. Duggan, Mayor
by:
Randall P. Alexander, Managing Member
Attest:
Jeanne F. Schneider, City Clerk
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