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McFadden prop - Memo of Under. rezoning Dli~~E ~ck~ MEMORANDUM February 15, 2005 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Memorandum of Understanding with Vincent and Luella McFadden Regarding the Rezoning of Property Acting Economic Development Director Pam Myhre recommends City Council approval of a Memorandum of Understanding between the City and Vincent and Luella McFadden that will allow the City to proceed with rezoning the McFadden property to industrial use. The McFadden property is the only property between the Dubuque Industrial Center and the Dubuque Industrial Center West, along the Chavenelle Road corridor, zoned for agricultural use. I concur with the recommendation and respectfully request Mayor and City Council approval. !Ylt~j L~:1 /il&~, Micnael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Pamela Myhre, Acting Economic Development Director --, , -') . " .~. , (~_\ CITY OF DUBUQUE, IOWA MEMORANDUM February 15, 2005 TO: Michael Van Milligen, City Manager FROM: Pamela Myhre, Acting Economic Deve~ SUBJECT: Memorandum of Understanding with Vincent and Luella McFadden Regarding the Rezoning of Property Introduction This memorandum transmits for City Council approval a Memorandum of Understanding between the City and Vincent and Luella McFadden that will allow the City to proceed with rezoning the McFaddens' property to industrial use. A copy of the Memorandum of Understanding is attached hereto. Discussion The City recently applied for and was awarded a RISE grant for over $1.2 million to connect Chavenelle Road through property owned by both the City (former Bergfeld farm) and the McFaddens (the City previously purchased the needed right of way for the new street from the McFaddens). The Iowa Department of Transportation, in awarding the grant for the new street, requested the zoning of property along the proposed street route support industrial development. The City's Comprehensive Plan also recommends that the entire area between the existing Dubuque Industrial Center and the new and expanding Dubuque Industrial Center West be zoned for industrial uses. This includes the McFadden farm property. The City has since approached the McFaddens about rezoning their property so that the entire corridor along Chavenelle Road would be properly zoned for industrial use. They have agreed, subject to the provisions in the Memorandum of Understanding, to allow the City to rezone their property without objection. The McFaddens' property is currently zoned for agricultural use and is presently farmed. The Memorandum of Understanding allows them to continue farming with their property assessed as agricultural for property tax purposes. The City will pay all fees associated with the rezoning process. Recommendation I recommend City Council approval of the Memorandum of Understanding with the McFaddens to allow the City to complete the rezoning of property along the Chavenelle Road extension to industrial use. The McFaddens' property remains the only property between the Dubuque Industrial Center and the Dubuque Industrial Center West, along the Chavenelle Road corridor, zoned for agricultural use. Action Step The action step for the City Council is to authorize the Mayor and City Clerk to sign the Memorandum of Understanding on behalf of the City Council. attachment F:\USERS\f'myhre\WPDOCS~NDPARK'McFaddenMOU.doc MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DUBUQUE, IOWA AND VINCENT AND LUELLA MCFADDEN Whereas, the extension of Chavenelle Road connecting Dubuque Industrial Center West with Dubuque Industrial Center, and the redevelopment of the former Bergfeld property for industrial purposes is in the approved Capital Improvement Plan for 2005 construction by the City of Dubuque (the City); and Whereas, the City has made application for Revitalize Iowa's Sound Economy (RISE) funding from the Iowa Department of Transportation to assist in paying for the extension of Chavenelle Road; and Whereas, as a condition of such funding, the Iowa Department of Transportation has requested rezoning of the property adjacent to Chavenelle Road from agriculture to industrial; and Whereas, a portion of the agricultural property along the proposed extension of Chavenelle Road legally described as Lot 1-1 of the Southwest % of the Southwest % of Section 29, Township 89 North, Range 2 East and the Northwest % of the Southwest % of Section 29, Township 89 North, Range 2 East all in the City of Dubuque, Dubuque County Iowa (the McFadden Property) is owned by Vincent and Luella McFadden (McFaddens); and Whereas, the McFaddens have agreed to a rezoning of the McFadden Property upon the conditions set forth herein, which conditions are agreeable to the City. Now, therefore, the parties hereby agree as follows: 1. The McFadden Property may continue to be used for farming and agricultural purposes until the McFaddens or their successors determine to use the property for some other legal use. 2. As long as the McFadden Property is used for farming and agricultural purposes, the Iowa Code and Iowa Administrative Code Provisions in effect at the time of this Agreement provide that the property will be assessed as agricultural for property tax purposes. If the Iowa Code or Iowa Administrative Code is amended to the effect that even though the McFadden Property is used for farming and agricultural purposes, it will be is assessed as other than agricultural for property tax purposes because of its zoning, the City will reimburse the McFaddens or their successors for the difference in property taxes which result from the rezoning of the property. 3. The McFaddens or their successors will not object to the rezoning of the McFadden Property to an industrial zoning classification by the City. 4. If the McFadden Property is rezoned industrial and the McFaddens or their successors request rezoning of the McFadden Property to a zoning classification other than industrial. the City will not use any of the terms of this Agreement as the reason for denial of the rezoning request. 5. The City shall pay all fees required by the City of Dubuque Code of Ordinances for the rezoning process to an industrial zoning classification. (Approximately $2000). 6. The City shall pay the reasonable cost of the McFaddens' attorney fees for the review and negotiation of this Agreement. 7. This Agreement shall be transferable to future owners upon the prior written approval of the City. 8. This Agreement shall be binding upon the parties hereto and their respective successors in interest, heirs and permitted assigns. 9. This Agreement shall be governed by and construed in accordance with the laws of the State of Iowa. Approved this day of and Luella McFadden and the City of Dubuque, Iowa. 2005 by and between Vincent Vincent and Luella McFadden City of Dubuque ~W;e/'11f~~ ~?)',-/~ f"CJI'- ~ 1$~ 6~ lir<Tdkr(J /I I' Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider, City Clerk F:IUSERSIWBaumIBel\lfeld Farm - Phase 3 DICWlMEMO of UNDERSTANDING ON REZONING -Barry's Version2withKaneadditions.doc 2 ~ MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF DUBUQUE, IOWA AND VINCENT AND LUELLA MCFADDEN Whereas, the extension of Chavenelle Road connecting Dubuque Industrial Center West with Dubuque Industrial Center, and the redevelopment of the former Bergfeld property for industrial purposes is in the approved Capital Improvement Plan for 2005 construction by the City of Dubuque (the City); and Whereas, the City has made application for Revitalize Iowa's Sound Economy (RISE) funding from the Iowa Department of Transportation to assist in paying for the extension of Chavenelle Road; and Whereas, as a condition of such funding, the Iowa Department of Transportation has requested rezoning of the property adjacent to Chavenelle Road from agriculture to industrial; and Whereas, a portion of the agricultural property along the proposed extension of Chavenelle Road legally described as Lot 1-1 of the Southwest Y. of the Southwest Y. of Section 29, Township 89 North, Range 2 East and the Northwest Y. of the Southwest Y. of Section 29, Township 89 North, Range 2 East all in the City of Dubuque, Dubuque County Iowa (the McFadden Property) is owned by Vincent and Luella McFadden (McFaddens); and Whereas, the McFaddens have agreed to a rezoning of the McFadden Property upon the conditions set forth herein, which conditions are agreeable to the City. Now, therefore, the parties hereby agree as follows: 1. The McFadden Property may continue to be used for farming and agricultural purposes until the McFaddens or their successors determine to use the property for some other legal use. 2. As long as the McFadden Property is used for farming and agricultural purposes, the Iowa Code and Iowa Administrative Code Provisions in effect at the time of this Agreement provide that the property will be assessed as agricultural for property tax purposes. If the Iowa Code or Iowa Administrative Code is amended to the effect that even though the McFadden Property is used for farming and agricultural purposes, it will be is assessed as other than agricultural for property tax purposes because of its zoning, the City will reimburse the McFaddens or their successors for the difference in property taxes which result from the rezoning of the property. 3. The McFaddens or their successors will not object to the rezoning of the McFadden Property to an industrial zoning classification by the City. 4. If the McFadden Property is rezoned industrial and the McFaddens or their successors request rezoning of the McFadden Property to a zoning classification other than industrial, the City will not use any of the terms of this Agreement as the reason for denial of the rezoning request. 5. The City shall pay all fees required by the City of Dubuque Code of Ordinances for the rezoning process to an industrial zoning classification. (Approximately $2000). 6. The City shall pay the reasonable cost of the McFaddens' attorney fees for the review and negotiation of this Agreement. 7. This Agreement shall be transferable to future owners upon the prior written approval of the City. 8. This Agreement shall be binding upon the parties hereto and their respective successors in interest, heirs and permitted assigns. 9. This Agreement shall be governed by and construed in accordance with the laws of the State of Iowa. Approved this day of and Luella McFadden and the City of Dubuque, Iowa. 2005 by and between Vincent Vincent and Luella McFadden City of Dubuque -t?~0ff/7f(<~ ~lf(r/~ ?C,A ~ :It/P&a- U ~Tdkrt'/I " Terrance M. Duggan, Mayor Attest: Jeanne F. Schneider, City Clerk F:\USERS\WBaum\Bergfeld Farm - Phase 3 DIGWIMEMO of UNDERSTANDING ON REZONING -Barry's Version2withKaneadditions .doc 2