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Flynn Ready Mix AmendmentCITY OF DUBUQUE, IOWA MEMORANDUM March 2, 2000 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Extension of Flynn Ready-Mix Company Lease Community and Economic Development Director Jim Burke is recommending extension of the Flynn Ready-Mix Concrete Company lease on Kerper Boulevard by 20 months with a market rate lease. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/dd Attachment cc: Barry Lindahl, Corporation Counsel Tim Moerman, Assistant City Manager Jim Burke, Community and Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM March 2, 2000 TO: Michael Van Milligen, City Manager FROM: James Burke, Community and Economic Development Director SUBJ: Extension of Flynn Ready-Mix Co. Lease INTRODUCTION This memorandum recommends City Council approval of a lease amendment with Flynn Ready-Mix Co., which extends their occupancy to September, 2001. DISCUSSION In August, 1975, the City of Dubuque entered into a lease with Flynn Ready-Mix Concrete Co., for a 5 acre site on Kerper Boulevard and Purina Drive. The term of the lease ran through December 31, 1999. In anticipation of the lease termination, Flynn and City Staff have been discussing an alternative site for the Company off of Kerper Court. The delays in completing the Eagle Window sale, however, have delayed conclusion of these discussions beyond the end ofthe original lease term. For that reason, we have prepared a amendment to the Flynn lease to extend the lease for 20 months. Attached is a lease amendment prepared by Corporation Counsel, Barry Lindahl. If approved, this would be the second amendment of the Flynn lease and it would: I) Amend the lease by extending the term on a month to month basis until Flynn is relocated by not later than September I, 2001. 2) Eliminate the payment of wharfage and set a monthly rental of $4,150 per month. This is an increase of $3,243 per month over the previous rental and is based on current market value for the property, 3) Establish a revised insurance schedule, and 4)Reduce the time period for removal of improvements from the site by the tenant following termination from six months to three months. The amended lease has been reviewed and accepted by Flynn. RECOMMENDATION I recommend that the City Council approve the attached Second Amendment to Lease and direct the City Manager to sign on behalf of the City. This amendment provides a short-term extension of the Flynn lease at market rate to permit the Company to acquire and develop a new plant on the Kerper Court site. SECOND AMENDMENT TO LEASE This Second Amendment to Lease is made and entered into this _day of ,2000, by and between the City of Dubuque, Iowa, a municipal corporation (Lessor) and Flynn Ready-Mix Concrete Co., an Iowa corporation with its principal place of business in Dubuque, Iowa (Lessee). WHEREAS, Lessor and Lessee are parties to a Lease, dated August 19, 1975, a copy of which is attached hereto and incorporated herein by reference, which Lease was amended November 19, 1979, a copy of which Amendment is attached hereto and incorporated herein by reference (together referred to herein as "the Lease"); and WHEREAS, Lessor and Lessee are negotiating the purchase of a new site by Lessee for Lessee's relocation of its operations; and WHEREAS, the parties now desire to further amend the Lease as set forth herein. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES that the Lease is amended as follows: I. Article I is amended by adding there to the following: Lessor hereby leases to Lessee the Leased Property for a term beginning January 1,2000 and continuing month-to-month until Lessee has relocated and is operational but terminating not later than September 1, 2001. 2. Article II(a) is amended by adding thereto the following: The rental for the term commencing January I, 2000 shall be the sum of $ 4,150.00 per month payable in advance upon execution of this Amendment by Lessee and $4,150.00 per month thereafter payable in advance on the first day of each month. This rental shall not be adjusted and no additional rental shall be charged during the term of this Lease. 3. Article X is deleted and the following substituted in lieu thereof: Article X. Insurance. For the term commencing on January 1,2000, Lessee shall provide insurance as set forth on the attached insurance schedule. 4. Article II(b) and Article ill are deleted. 5. Article IX is amended to read as follows: Article IX. Removal of Improvements. Except for the improvements constructed under the provisions of Article ill hereof, upon termination of this Lease for any cause whatsoever, Lessee shall have the privilege during the 9/ (: ¿-¿;' ~, /"-7¿, /) -.:7/ .ye'" period of three (3) months after said termination to remove any and all improvements made by Lessee upon the leased property provided the same are free of Landlord's liens or other lien rights in favor of Lessor. It is the express understanding and agreement of Lessor and Lessee that all such improvements are to remain personal property without regard to the manner in which they are affixed to the real estate. In the event of such removal the leased property shall be restored to essentially the same condition as existed prior to the construction of such improvements. Failure to remove any of such improvements during said three (3) month period shall constitute an abandonment thereof unless the parties hereto otherwise agree in writing. In the event of such abandonment Lessor reserves the right to remove or cause to be removed said improvements at Lessee's expense and Lessee agrees to pay the same. 5. The last sentence of Article XI is deleted. 6. All other terms and provisions of the Lease shall remain in full force and effect. IN WITNESS WHEREOF, the Second Amendment to Lease has been made and executed on the day and year first above written. FLYNN READY-MIX CONCRETE CO. CITY OF DUBUQUE, IOWA By By City Manager INSURANCE SCHEDULE I. Any policy of insurance or certificate of insurance required hereunder shall be with a carrier authorized to do business in Iowa and a carrier that has received a rating of A or better in the current Best's Rating Guide. 2. Any policy of insurance required hereunder shall provide for a thirty-day notice to the City of any material change or cancellation of the policy prior to its expiration date. 3. Lessee shall have its insurance agent or company certifY in writing that any policy of insurance required herein with an aggregate limit of liability has not been reduced by paid or reserved claims at the time of issuance of policy or certificate. 4. Lessee shall furnish copies of the following policies to the City, with limits not less than the following, or greater if required by law, and shall also furnish certificates of insurance from all independent contractors or subcontractors hired by Lessee or any independent contractor or subcontractor hired by the independent contractor or subcontractor, which certificates shall provide evidence of coverage for the following, with limits not less than the following, or greater if required by law: WORKERS COMPENSATION: Coverage A: Coverage B: Statutory State ofIowa Employers' Liability $100,000 each accident $100,000 each employee by disease $500,000 policy limit by disease AUTOMOBILE LIABILITY: Bodily Injury and Property Damage limit of liability of $1 ,000,000 combined single limit or equivalent. COMMERCIAL GENERAL LIABILITY: General Aggregate Limit Products-Completed Operation Aggregate Limit Personal and Advertising Injury Limit Each Occurrence Limit Fire Damage Limit (anyone occurrence) Medical Payments $2,000,000 $1,000,000 $1,000,000 $1,000,000 $ 50,000 $ 5,000 OR Combined Single Limit Medical Payments $2,000,000 $ 5,000 Coverage is to include: occurrence form, premises/operations! products/completed operations coverage, independent contractors' coverage, contractual liability, broad form property damage, personal injury, City of Dubuque named as an additional insured with 30 days' written notice of change or cancellation. MEMO To: Ms. Jeanne Schneider, City Clerk Date: March 28, 2000 Re: Second Amendment to Flynn Ready-Mix Lease Dear Jeanne: Attached is the executed original of the Second Amendment to the Lease between the City and Flynn Ready-Mix. BAL/cg Attachment cc - Mr. Michael C. Van Milligen 196 CYCARE PLAZA DUBUQUE IOWA 52001 TELE 319583.4113 F.\X 319 583.1040 e-mail balesq(iì)mwci.net SECOND AMENDMENT TO LEASE This Second Amendment to Lease is made and entered into this 24th day of March, 2000, by and between the City of Dubuque, Iowa, a municipal corporation (Lessor) and Flynn Ready-Mix Concrete Co., an Iowa corporation with its principal place of business in Dubuque, Iowa (Lessee). WHEREAS, Lessor and Lessee are parties to a Lease, dated August 19, 1975, a copy of which is attached hereto and incorporated herein by reference, which Lease was amended November 19, 1979, a copy of which Amendment is attached hereto and incorporated herein by reference (together referred to herein as "the Lease"); and WHEREAS, Lessor and Lessee are negotiating the purchase of a new site by Lessee for Lessee's relocation of its operations; and WHEREAS, the parties now desire to further amend the Lease as set forth herein. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES that the Lease is amended as follows: I. Article I is amended by adding thereto the following: Lessor hereby leases to Lessee the Leased Property for a term beginning January I, 2000 and continuing month-to-month until Lessee has relocated and is operational but terminating not later than September 1, 2001. 2. Article II(a) is amended by adding thereto the following: The rental for the term commencing January 1, 2000 shall be the sum of $ 4,150.00 per month payable in advance upon execution of this Amendment by Lessee and $4,150.00 per month thereafter payable in advance on the first day of each month. This rental shall not be adjusted and no additional rental shall be charged during the term of this Lease. 3. Article X is deleted and the following substituted in lieu thereof: Article X. Insurance. For the term commencing on January 1, 2000, Lessee shall provide insurance as set forth on the attached insurance schedule. 4. Article II(b) and Article III are deleted. 5. Article IX is amended to read as follows: Article IX. Removal of Improvements. Except for the improvements constructed under the provisions of Article ill hereof, upon termination of this Lease for any cause whatsoever, Lessee shall have the privilege during the period of three (3) months after said termination to remove any and all improvements made by Lessee upon the leased property provided the same are free of Landlord's liens or other lien rights in favor of Lessor. It is the express understanding and agreement of Lessor and Lessee that all such improvements are to remain personal property without regard to the manner in which they are affixed to the real estate. In the event of such removal the leased property shall be restored to essentially the same condition as existed prior to the construction of such improvements. Failure to remove any of such improvements during said three (3) month period shall constitute an abandonment thereof unless the parties hereto otherwise agree in writing. In the event of such abandonment Lessor reserves the right to remove or cause to be removed said improvements at Lessee's expense and Lessee agrees to pay the same. 5. The last sentence of Article XI is deleted. 6. All other terms and provisions of the Lease shall remain in full force and effect. IN WITNESS WHEREOF, the Second Amendment to Lease has been made and executed on the day and year first above written. FLYNN READY MIX CONCRETE CO. By Thomas L. Flynn, President CITY OF DUBUQUE, IOWA By Michael Van Milligen City Manager INSURANCE SCHEDULE 1. Any policy of insurance or certificate of insurance required hereunder shall be with a carrier authorized to do business in Iowa and a carrier that has received a rating of A or better in the current Best's Rating Guide. 2. Any policy of insurance required hereunder shall provide for a thirty-day notice to the City of any material change or cancellation of the policy prior to its expiration date. 3, Lessee shall have its insurance agent or company certify in writing that any policy of insurance required herein with an aggregate limit of liability has not been reduced by paid or reserved claims at the time of issuance of policy or certificate. 4. Lessee shall furnish copies of the following policies to the City, with limits not less than the following, or greater if required by law, and shall also furnish certificates of insurance from all independent contractors or subcontractors hired by Lessee or any independent contractor or subcontractor hired by the independent contractor or subcontractor, which certificates shall provide evidence of coverage for the following, with limits not less than the following, or greater if required by law: WORKERS COMPENSATION: Coverage A: Coverage B: Statutory State ofIowa Employers' Liability $100,000 each accident $100,000 each employee by disease $500,000 policy limit by disease AUTOMOBILE LIABILITY: Bodily Injury and Property Damage limit of liability of $1,000,000 combined single limit or equivalent. COMMERCIAL GENERAL LIABILITY: General Aggregate Limit Products-Completed Operation Aggregate Limit Personal and Advertising Injury Limit Each Occurrence Limit Fire Damage Limit (anyone occurrence) Medical Payments $2,000,000 $1,000,000 $1,000,000 $1,000,000 $ 50,000 $ 5,000 OR Combined Single Limit Medical Payments $2,000,000 $ 5,000 Coverage is to include; occurrence form, premises/operations! productslcompleted operations coverage. independent contractors' coverage, contractual liability, broad form property damage, personal injury, City of Dubuque named as an additional insured with 30 days' written notice of change or cancellation. March 10, 2000 Mr. Chad Leitch Attorney-at-Law 700 Locust Street Dubuque IA 52001 Dear Mr. Leitch: Enclosed is the original Second Amendment to Lease between the City of Dubuque and Flynn Ready-Mix Concrete Co., which was approved by the City Council at their meeting of March 6, 2000. Please sign the original, keep one copy for your records, and return the original the me. If you have any questions, please contact me. Sincerely, Jeanne F. Schneider City Clerk enclosure cc: Barry Lindahl, Corporation Counsel SECOND AMENDMENT TO LEASE This Second Amendment to Lease is made and entered into this _day of ,2000, by and between the City of Dubuque, Iowa, a municipal corporation (Lessor) and Flynn Ready-Mix Concrete Co., an Iowa corporation with its principal place of business in Dubuque, Iowa (Lessee). WHEREAS, Lessor and Lessee are parties to a Lease, dated August 19, 1975, a copy of which is attached hereto and incorporated herein by reference, which Lease was amended November 19, 1979, a copy of which Amendment is attached hereto and incorporated herein by reference (together referred to herein as "the Lease"); and WHEREAS, Lessor and Lessee are negotiating the purchase of a new site by Lessee for Lessee's relocation of its operations; and WHEREAS, the parties now desire to further amend the Lease as set forth herein. NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES that the Lease is amended as follows: 1. Article I is amended by adding thereto the following: Lessor hereby leases to Lessee the Leased Property for a term beginning January 1, 2000 and continuing month-to-month until Lessee has relocated and is operational but terminating not later than September 1,2001. 2. Article II(a) is amended by adding thereto the following: The rental for the term commencing January 1, 2000 shall be the sum of $ 4,150.00 per month payable in advance upon execution of this Amendment by Lessee and $4,150.00 per month thereafter payable in advance on the first day of each month. This rental shall not be adjusted and no additional rental shall be charged during the term of this Lease. 3. Article X is deleted and the following substituted in lieu thereof: Article X. Insurance. For the term commencing on January 1, 2000, Lessee shall provide insurance as set forth on the attached insurance schedule. 4. Article II(b) and Article III are deleted. 5. Article IX is amended to read as follows: Article IX. Removal of Improvements. Except for the improvements constructed under the provisions of Article ill hereof, upon termination of this Lease for any cause whatsoever, Lessee shall have the privilege during the period of three (3) months after said termination to remove any and all improvements made by Lessee upon the leased property provided the same are free of Landlord's liens or other lien rights in favor of Lessor. It is the express understanding and agreement of Lessor and Lessee that all such improvements are to remain personal property without regard to the manner in which they are affixed to the real estate. In the event of such removal the leased property shall be restored to essentially the same condition as existed prior to the construction of such improvements. Failure to remove any of such improvements during said three (3) month period shall constitute an abandonment thereof unless the parties hereto otherwise agree in writing. In the event of such abandonment Lessor reserves the right to remove or cause to be removed said improvements at Lessee's expense and Lessee agrees to pay the same. 5. The last sentence of Article XI is deleted. 6. All other terms and provisions of the Lease shall remain in full force and effect. IN WITNESS WHEREOF, the Second Amendment to Lease has been made and executed on the day and year first above written. FLYNN READY-MIX CONCRETE CO. CITY OF DUBUQUE, IOWA By Michael Van Milligen INSURANCE SCHEDULE 1. Any policy of insurance or certificate of insurance required hereunder shall be with a carrier authorized to do business in Iowa and a carrier that has received a rating of A or better in the current Best's Rating Guide. 2. Any policy of insurance required hereunder shall provide for a thirty-day notice to the City of any material change or cancellation of the policy prior to its expiration date. 3. Lessee shall have its insurance agent or company certify in writing that any policy of insurance required herein with an aggregate limit of liability has not been reduced by paid or reserved claims at the time of issuance of policy or certificate. 4. Lessee shall furnish copies of the following policies to the City, with limits not less than the following, or greater if required by law, and shall also furnish certificates of insurance from all independent contractors or subcontractors hired by Lessee or any independent contractor or subcontractor hired by the independent contractor or subcontractor, which certificates shall provide evidence of coverage for the following, with limits not less than the following, or greater if required by law: WORKERS COMPENSATION: Coverage A: Coverage B: Statutory State ofIowa Employers' Liability $100,000 each accident $100,000 each employee by disease $500,000 policy limit by disease AUTOMOBILE LIABILITY: Bodily Injury and Property Damage limit of liability of $1,000,000 combined single limit or equivalent. COMMERCIAL GENERAL LIABILITY: General Aggregate Limit Products-Completed Operation Aggregate Limit Personal and Advertising Injury Limit Each Occurrence Limit Fire Damage Limit (anyone occurrence) Medical Payments $2,000,000 $1,000,000 $1,000,000 $1,000,000 $ 50,000 $ 5,000 OR Combined Single Limit Medical Payments $2,000,000 $ 5,000 Coverage is to include: occurrence form, premises/operations! products/completed operations coverage, independent contractors' coverage, contractua1 liability, broad form property damage, personal injury, City of Dubuque named as an additional insured with 30 days' written notice of change or cancellation.